REGISTERED NUMBER: 08708231 (England and Wales)

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements for the Year Ended 31 December 2024

for

S & E Group Management 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 Balance Sheet

11

Company Balance Sheet

12

Consolidated Statement of Changes in Equity

13

Company Statement of Changes in Equity

14

Consolidated Cash Flow Statement

15

Notes to the Consolidated Cash Flow Statement

16

Notes to the Consolidated Financial Statements

17

DIRECTORS:

S M Smith

E K Smith

REGISTERED OFFICE:

4 Elland Road

Braunstone Frith Industrial Estate

Leicester

Leicestershire

LE3 1TU

REGISTERED NUMBER:

08708231 (England and Wales)

AUDITORS:

Hancock & Hastings Limited

Statutory Auditor

Suite 2 Ashton Square Business Centre

22 Aston Square

Dunstable

Bedfordshire

LU6 3SN

The directors present their strategic report of the company and the group for the year ended 31 December 2024.

REVIEW OF BUSINESS

KEY ACHIEVEMENTS

RoSPA Gold Medal Award for Health and Safety Excellence

We are proud to report that Michael Smith Switchgear Limited (MSSL), for the 9th year running, has received the prestigious RoSPA Gold Medal Award 2025, recognising our sustained commitment to health and safety. This award is a testament to the Group's strong safety culture, robust risk management processes, and continued investment in staff training and wellbeing initiatives.

ISO Accreditations

Our integrated management system continues to be certified to the following ISO standards:

- ISO 9001 - Quality Management

- ISO 14001 - Environmental Management

- ISO 45001 - Occupational Health and Safety

- ISO 45003 - Psychological Health and Safety in the Workplace

These certifications underpin our commitment to operational excellence, employee wellbeing, and environmental stewardship, reinforcing stakeholder confidence and ensuring that the Group operates in line with best practices.

Carbon Neutral Business & CO2 Reduction

In line with our sustainability objectives, we are pleased to confirm that the Group has achieved Carbon Neutral status for the fourth consecutive year. Since 2018, we have successfully reduced our CO2 emissions by over 60%, achieved through a combination of energy efficiency measures, investment in renewable energy, supply chain optimisation, and carbon offsetting initiatives and research and development projects. This achievement reflects our proactive approach to environmental responsibility and supports our long-term net zero ambitions.

The King's Award for Sustainable Development 2024

Michael Smith Switchgear was one of just 27 organisations to be honoured to receive The King's Award for Enterprise in Sustainable Development. This accolade recognises the Group's outstanding commitment to sustainable business practices, including resource efficiency, social responsibility, and environmental innovation. The award not only highlights our leadership in the low voltage switchgear industry but also validates our strategic direction in promoting long-term sustainability.

Board Appointment to BEAMA

During the year, Sean Smith, our Managing Director, was appointed to the Board of BEAMA (British Electrotechnical and Allied Manufacturers Association), the trade association for energy infrastructure and systems. This appointment reflects Sean's deep industry expertise and further strengthens our voice in shaping policy and technical standards across the UK's electrical manufacturing sector, particularly focussing on Health & Safety and compliance within the sector. It also enhances our visibility and influence during a pivotal period of transition in the energy and electrification landscape.

MARKET COMMENTARY

We are in the turn of the electrification era. The current demand on electrification and the growth and dependence on data centres and AI has vastly increased the demand for LV Switchgear assemblies. Whilst striving for carbon reduction initiatives and increasing the demand on the electricity networks MSSL are very well placed as the leading manufacturer of LV Switchgear assemblies and the only switchgear manufacturer that is carbon neutral. Business opportunities exist through further design verification testing to the British Standard BS EN IEC 61439-2:2021 using alternative device manufacturers to create other market openings.

RESULTS FOR THE YEAR

The Group achieved an operating profit of £1,723,486 (2023: £1,223,345) and a profit before tax on £1,705,770 (2023: £1,160,026).

PRINCIPAL RISKS AND UNCERTAINTIES

The Directors constantly review the risks and uncertainties in the market place and at entity level. The company operates in a specialist market which is affected by the risks of the wider economy. The Directors are focussed on good cash management to ensure that the company is in a strong position to gain market share in the future.

FINANCIAL RISK MANAGEMENT

The group's operations expose it to a variety of financial risks that include the effects of price risk, credit risk, liquidity risk and cash flow risk.

The group has defined policies and procedures which set out specific guidelines to manage price risk, credit risk, liquidity risk and cash flow risk and the circumstances when it would be appropriate to use financial instruments to manage these.

The directors hold regular monthly meetings to discuss the current and future financial risk facing the company and seek to ensure that appropriate decisions are made based on the market and business information available.

PRICE RISK

This arises on inventory purchases but the company aims to minimise risk through holding as little stock as possible, monitoring stock turn and reviewing prices regularly.

CREDIT RISK

This is the risk that one party to a financial instrument will cause a financial loss for that other party by failing to discharge an obligation. The group's credit policies aim to avoid this within its operations via the continuous monitoring of credit limits.

LIQUIDITY RISK

This arises when an entity encounters difficulty in meeting obligations. The group aims to mitigate risk by focussing on its working capital cycle and working to continuously reduce debtor and inventory days.

CASH FLOW RISK

This is the risk of exposure to variability in cash flows that is attributable to a particular risk associated with a recognised asset or liability. The group manages this risk through effective working capital management.

ENGAGEMENT WITH EMPLOYEES

During the year, the directors have sought to keep employees updated on the group's strategy, performance and future objectives and employees have been informally consulted on decisions that affect them.

KEY PERFORMANCE INDICATORS

The Group's key performance indicators during the period were as follows:

2024

2023

Increase/ (decrease

)

Turnover

£7,990,744

£7,255,275

£735,469

10.1%

Gross profit

£3,212,323

£2,627,787

£584,536

22.2%

Operating profit

£1,723,486

£1,223,345

£500,141

40.9%

Profit before tax

£1,705,770

£1,160,026

£545,744

47.0%

Equity shareholders' funds

£4,726,853

£3,793,716

£933,137

24.6%

Employee numbers

54

52

2

3.8%

FUTURE OUTLOOK

The directors believe that the company is in a strong position for the future.

ON BEHALF OF THE BOARD:

E K Smith - Director

5 December 2025

The directors present their report with the financial statements of the company and the group for the year ended 31 December 2024.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of manufacture of switchgear.

DIVIDENDS

During the year, interim dividends of £340,000 (2023: £360,000) were paid.

The following interim dividends have been paid during the year:

Date

Interim dividend per A Ordinary Share

Interim dividend paid A Ordinary Shares

Interim dividend per B Ordinary Share

Interim dividend paid B Ordinary Shares

£

£

£

£

31/1/2024

297.0297

30,000

297.0297

30,000

20/3/2024

99.0099

10,000

99.0099

10,000

29/5/2024

198.0198

20,000

198.0198

20,000

10/7/2024

99.0099

10,000

99.0099

10,000

31/7/2024

297.0297

30,000

297.0297

30,000

24/9/2024

99.0099

10,000

99.0099

10,000

11/11/2024

99.0099

10,000

99.0099

10,000

12/12/2024

495.0495

50,000

495.0495

50,000

DIRECTORS

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

S M Smith

E K Smith

GOING CONCERN

The directors constantly review and assess the risks and uncertainties in the market place, across the group and at a company level.

After considering the financial position of the group and company at the time of approving the financial statements, the directors have a reasonable expectation that the group and company have adequate resources to continue their operations for the foreseeable future. Accordingly, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

DISCLOSURE IN THE STRATEGIC REPORT

As permitted by Paragraph 1A of Schedule 7 to the Large and Medium Sized Companies and Groups (Accounts and Reports) Regulations 2008, certain matters which are required to be disclosed in he Directors' Report have been omitted as they are included in the Strategic Report. These matters relate to the future developments of the company, employee information, research and development and financial risk management.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, Hancock & Hastings Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

E K Smith - Director

5 December 2025

Opinion

We have audited the financial statements of S&E Group Management Limited (the 'parent company') and its subsidiaries ('The Group") for the year ended 31 December 2024 which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, Cashflow Statement and the related notes, 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 (United Kingdom Generally Accepted Accounting Practice), including FRS 102 ? Section 1A for Small Entities "The Financial Reporting Standard applicable in the UK and Republic of Ireland".

In our opinion, the financial statements:

- give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit/(loss) for the year then ended;

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice applicable to smaller entities; 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 Auditor responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company 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 entity's ability to continue as a going concern for a period of at least 12 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 matter

The comparative figures for the year ended 31 December 2023 were unaudited and are based on the unaudited financial statements for that year. Accordingly, we do not express an opinion on those comparative figures.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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.

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 during 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 on 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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the directors' report has 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

- the financial statements are not in agreement with the accounting records or 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, or

- the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Directors' Report and from the requirement to prepare a Strategic Report.

Responsibilities of directors

As explained more fully in the directors' responsibilities statement set out on page 2, 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 is 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 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 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 an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but it 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 laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which out procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained a general understanding of the legal and regulatory framework applicable to the entity through enquiry and discussion with management concerning their understanding of relevant laws and regulations, and the entity's policies and procedures regarding compliance, and through our understanding of the group and parent company's industry and regulations. These included but were not limited to compliance with Companies Act 2006 and FRS 102.

We designed audit procedures to respond to the risk, recognizing that 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.

We focused on laws and regulations that could give rise to a material misstatement in the financial statements. Our tests included, but were not limited to:

- Inquiring of management and, where appropriate, those charged with governance, as to whether the group and parent company is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations;

- Inspecting correspondence, if any, with relevant licensing or regulatory authorities;

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

- Review of minutes of board meetings throughout the period; and

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

In addition, we evaluated the directors' and management's incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of management override of controls, and determined that the principal risks related to: posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to revenue recognition (which we pinpointed to the completeness assertion), and significant one-off or unusual transactions.

Our audit procedures in relation to fraud included but were not limited to:

- Making enquiries of the directors and management on whether they had knowledge of any actual, suspected or alleged fraud;

- Gaining an understanding of the internal controls established to mitigate risks related to fraud;

- Discussing amongst the engagement team the risks of fraud; and

- Addressing the risks of fraud through management override of controls by performing journal entry testing

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

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 auditor's report.

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 an auditor's report 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.

Amy Claire Hancock (Senior Statutory Auditor)

for and on behalf of Hancock & Hastings Limited

Statutory Auditor

Suite 2 Ashton Square Business Centre

22 Aston Square

Dunstable

Bedfordshire

LU6 3SN

5 December 2025

TURNOVER

3

7,990,744

7,255,275

Cost of sales

4,778,403

4,627,279

GROSS PROFIT

3,212,341

2,627,996

Administrative expenses

1,518,855

1,414,651

1,693,486

1,213,345

Other operating income

4

30,000

10,000

OPERATING PROFIT

6

1,723,486

1,223,345

Interest receivable and similar income

35,249

14,005

1,758,735

1,237,350

Interest payable and similar expenses

7

52,965

77,324

PROFIT BEFORE TAXATION

1,705,770

1,160,026

Tax on profit

8

432,633

273,983

PROFIT FOR THE FINANCIAL YEAR

1,273,137

886,043

FIXED ASSETS

Intangible assets

11

-

-

Tangible assets

12

3,194,051

3,246,403

Investments

13

-

-

3,194,051

3,246,403

CURRENT ASSETS

Stocks

14

793,527

806,156

Debtors

15

1,057,186

1,101,584

Cash at bank and in hand

1,912,594

1,211,317

3,763,307

3,119,057

CREDITORS

Amounts falling due within one year

16

1,103,475

1,399,900

NET CURRENT ASSETS

2,659,832

1,719,157

TOTAL ASSETS LESS CURRENT LIABILITIES

5,853,883

4,965,560

CREDITORS

Amounts falling due after more than one year

17

(978,491

)

(1,016,511

)

PROVISIONS FOR LIABILITIES

21

(148,539

)

(155,333

)

NET ASSETS

4,726,853

3,793,716

CAPITAL AND RESERVES

Called up share capital

22

202

202

Share premium

23

598,163

598,163

Retained earnings

23

4,128,488

3,195,351

SHAREHOLDERS' FUNDS

4,726,853

3,793,716

The financial statements were approved by the Board of Directors and authorised for issue on 5 December 2025 and were signed on its behalf by:

E K Smith - Director

FIXED ASSETS

Intangible assets

11

-

-

Tangible assets

12

2,993,863

2,983,386

Investments

13

858,365

858,365

3,852,228

3,841,751

CURRENT ASSETS

Debtors

15

14,624

22,307

Cash at bank

1,365,791

630,777

1,380,415

653,084

CREDITORS

Amounts falling due within one year

16

137,122

161,260

NET CURRENT ASSETS

1,243,293

491,824

TOTAL ASSETS LESS CURRENT LIABILITIES

5,095,521

4,333,575

CREDITORS

Amounts falling due after more than one year

17

(978,491

)

(1,016,511

)

PROVISIONS FOR LIABILITIES

21

(101,343

)

(94,338

)

NET ASSETS

4,015,687

3,222,726

CAPITAL AND RESERVES

Called up share capital

22

202

202

Share premium

23

598,163

598,163

Retained earnings

23

3,417,322

2,624,361

SHAREHOLDERS' FUNDS

4,015,687

3,222,726

Company's profit for the financial year

1,132,961

774,849

The financial statements were approved by the Board of Directors and authorised for issue on 5 December 2025 and were signed on its behalf by:

E K Smith - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 January 2023

202

2,669,308

598,163

3,267,673

Changes in equity

Dividends

-

(360,000

)

-

(360,000

)

Total comprehensive income

-

886,043

-

886,043

Balance at 31 December 2023

202

3,195,351

598,163

3,793,716

Changes in equity

Dividends

-

(340,000

)

-

(340,000

)

Total comprehensive income

-

1,273,137

-

1,273,137

Balance at 31 December 2024

202

4,128,488

598,163

4,726,853

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 January 2023

202

2,209,512

598,163

2,807,877

Changes in equity

Dividends

-

(360,000

)

-

(360,000

)

Total comprehensive income

-

774,849

-

774,849

Balance at 31 December 2023

202

2,624,361

598,163

3,222,726

Changes in equity

Dividends

-

(340,000

)

-

(340,000

)

Total comprehensive income

-

1,132,961

-

1,132,961

Balance at 31 December 2024

202

3,417,322

598,163

4,015,687

Cash flows from operating activities

Cash generated from operations

1

1,517,713

1,689,844

Interest paid

(52,301

)

(76,186

)

Interest element of finance lease payments paid

(664

)

(1,138

)

Interest received

26,382

14,005

Tax paid

(294,204

)

(333,199

)

Net cash from operating activities

1,196,926

1,293,326

Cash flows from investing activities

Purchase of tangible fixed assets

(140,046

)

(112,713

)

Sale of tangible fixed assets

61,616

-

Net cash from investing activities

(78,430

)

(112,713

)

Cash flows from financing activities

Loan repayments in year

(52,825

)

(564,203

)

Capital repayments in year

(18,799

)

(4,641

)

Amount introduced by directors

-

1,961

Amount withdrawn by directors

(5,595

)

-

Equity dividends paid

(340,000

)

(360,000

)

Net cash from financing activities

(417,219

)

(926,883

)

Increase in cash and cash equivalents

701,277

253,730

Cash and cash equivalents at beginning of year

2

1,211,317

957,587

Cash and cash equivalents at end of year

2

1,912,594

1,211,317

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

31.12.24

31.12.23

(Unaudited)

£

£

Profit before taxation

1,705,770

1,160,026

Depreciation charges

161,039

168,737

(Profit)/loss on disposal of fixed assets

(30,257

)

4,779

Finance costs

52,965

77,324

Finance income

(35,249

)

(14,005

)

1,854,268

1,396,861

Decrease in stocks

12,629

15,205

Decrease/(increase) in trade and other debtors

44,398

(91,615

)

(Decrease)/increase in trade and other creditors

(393,582

)

369,393

Cash generated from operations

1,517,713

1,689,844

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 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

1,912,594

1,211,317

Year ended 31 December 2023

31.12.23

1.1.23

(Unaudited)

£

£

Cash and cash equivalents

1,211,317

957,587

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank and in hand

1,211,317

701,277

1,912,594

1,211,317

701,277

1,912,594

Debt

Finance leases

(18,799

)

18,799

-

Debts falling due within 1 year

(52,825

)

14,805

(38,020

)

Debts falling due after 1 year

(1,016,511

)

38,020

(978,491

)

(1,088,135

)

71,624

(1,016,511

)

Total

123,182

772,901

896,083

1.	STATUTORY INFORMATION

S & E Group Management 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.	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.

The financial statements have been rounded to the nearest Pound.

Basis of consolidation

The consolidated financial statements incorporate the financial statements of the company and all group undertakings. These are adjusted, where appropriate, to conform to group accounting policies.

Going concern

The directors constantly review and assess the risks and uncertainties in the market place, across the group and at a company level.

After considering the financial position of the group and company at the time of approving the financial statements, the directors have a reasonable expectation that the group and company have adequate resources to continue their operations for the foreseeable future. Accordingly, 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 preparation of the financial statements requires the directors to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the balance sheet date and the reported amounts of income and expenses during the period. Actual results in the future could differ from those estimates. In this regard, the directors consider that there are no critical accounting policies where judgements or estimations are applied in these financial statements.

Turnover

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

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.

Sale of goods

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2013, is being amortised evenly over its estimated useful life of ten years.