REGISTERED NUMBER: 13195197 (England and Wales)

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements

for the Year Ended 31 March 2025

for

Atkinson Equipment Group Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Income Statement

9

Consolidated Other Comprehensive Income

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 Financial Statements

16

DIRECTORS:

C R Atkinson

S T Pearce

G R Atkinson

G P Atkinson

SECRETARY:

S T Pearce

REGISTERED OFFICE:

Moat Works

Moat Road

West Wilts Trading Estate

Westbury

Wiltshire

BA13 4JF

REGISTERED NUMBER:

13195197 (England and Wales)

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

The Company is a holding company, therefore the principal activity is the receipt of group dividends and payment of dividends to shareholders. The principal activity of the Group in the year under review was that of precision engineers, storage, warehousing, distribution and wholesaling agents.

REVIEW OF BUSINESS

The Directors are very pleased with the performance for the year with another strong set of results against a backdrop of a continuing challenging economic climate. During this time, the Company has continued to supply its wide and varied customer base with a high level of service with quality products.

Pressures from the supply chain and continued inflationary price influences have been met and dealt with by our strong long standing leadership Team of Directors and Operational Senior Management Team. We continue to meet regularly to constantly monitor the situation and act accordingly.

We are a key distributor to many different markets, and we have in the main, maintained continuity of supply of products where possible and we are extremely pleased as a business to have achieved this. We still believe that the economic future remains very uncertain, however, our strong infrastructure leaves us well positioned to deal with whatever may happen next.

As highlighted in previous years, the Board's primary focus, as always, has been in providing top quality service and products to our customers. This determination remains unchanged and is a key element in our success.

Our Group businesses that operate in the same packaging market sector continue to post good results.

With the balance sheet showing a strong position, this asset base will continue to enable the company to push ahead with confidence and look to continue the reinvestment programme in our various Group Companies. In addition, our distribution business's multi depot setup enables us to more efficiently service the UK market, and we continue to benefit from the economies of scale that comes with effective management of this set-up.

RESEARCH AND DEVELOPMENT

Research and Development is something that is constantly being performed by the Group. This can be in relation to potential new products or initiatives that key customers wish us to look at on their behalf.

Within the Packaging Company we are continuing to work with our suppliers about 'greener' alternatives and whilst we are not market-makers we have been made aware of new products as "Sustainable Packaging" that is increasingly important to consumers. We can offer 100% recyclable new plastics, as plastics can be made from strictly controlled renewable raw materials.

PRINCIPAL RISKS AND UNCERTAINTIES

The Directors have identified the following principal risks and uncertainties affecting the Group:

Market risk: Both the Product and Engineering divisions within the Group are affected by the market price of the stock or raw materials they purchase. There is little control we can directly influence over this other than maintain regular dialogue with our long-standing suppliers.

Also, the Wholesale and Distribution business is affected by the market price of raw materials of both plastic and metal in the products it purchases from our manufacturing suppliers. There is little control we can directly influence over this other than maintain regular dialogue with our long-standing suppliers

Legislative and regulatory risk: In our packaging distribution businesses, Extended Producer Responsibility (EPR) for packaging came into force on the 1 January 2025 and we are still adopting and implementing these new regulations. There are no other new changes that have been introduced, but the Group does monitor any changes in legislative or regulatory risk.

Actions of competitors: We will continue to explore for new products, and our Sales and Marketing teams are initiative-taking in looking for new opportunities especially in markets that we have not previously been involved in

Operational risks: Cover is in place for the provision of general and fleet insurance for the operational aspects of the business. Much of the Group also has a trade credit insurance policy over its book debts and in conjunction with a strictly controlled credit function we endeavour to minimise the risk of any bad debts.

In respect of our IT infrastructure there are robust controls to safeguard our data, provide backup information in the

event of disaster recovery and our hardware and software is monitored periodically.

KEY PERFORMANCE INDICATORS

Year ended

Year ended

Year ended

31 March 2025

31 March 2024

31 March 2023

Turnover (£)

39,667,531

38,358,296

32,331,221

Gross profit (£)

10,688,522

10,445,047

8,036,626

Gross profit margin (%)

26.95

27.23

24.86

Profit before tax (£)

1,723,279

3,436,614

3,803,470

Net assets

11,827,502

11,657,939

9,624,497

Our turnover and gross profit have increased over the past 12 months which is pleasing for the Directors. The gross margin percentage has slightly fallen over the same period. Profit before tax has fallen during this year, although a significant proportion of this relates to the annual amortisation of Goodwill on the recent acquisitions. As outlined in the Review of the Business section, our strong leadership team will continue to review our customer service standards, and we are continually monitoring our efficiency levels, which may result in changes to the depots out of which customers are serviced.

ON BEHALF OF THE BOARD:

S T Pearce - Director

5 December 2025

The Directors present their report with the financial statements of the Company and the Group for the year ended

31 March 2025.

DIVIDENDS

Interim dividends per share on the Ordinary A £1 shares were paid during the year totalling £NIL (2024: £NIL). The Directors recommend that no final dividend be paid on these shares.

Interim dividends per share on the Ordinary B £1 shares were paid during the year totalling £373,524 (2024: £396,654). The Directors recommend that no final dividend be paid on these shares.

Interim dividends per share on the Ordinary C £1 shares were paid during the year totalling £106,594 (2024: £NIL). The Directors recommend that no final dividend be paid on these shares.

The total distribution of dividends for the period ended 31 March 2025 will be £480,118 (2024: £396,654).

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 R Atkinson

S T Pearce

G R Atkinson

G P Atkinson

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company and Group use various financial instruments including loans, cash equity capital and various items such as trade debtors and creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the company and group's operations.

The existence of these financial instruments exposes the company and group to a number of financial risks which are described in more detail below.

The Directors review and agree policies for managing the financial risks and these are summarised below.

Market risk

Market risk encompasses three types of risk being price risk, interest rate risk and currency risk.

Price risk

The Company and Group operates in a competitive market. If the Company and Group does not continue to compete effectively by developing its product range and responding to activities in the market it could lose customers and its results, cash flow and financial conditions could adversely be affected.

Interest rate risk

Surplus cash generated by the Company and Group is invested in interest bearing deposit accounts. Company and Group bank borrowings incur interest at market rates. The Company and Group is therefore exposed to interest rate risk which is managed by a review of facilities available to the company and group.

Currency risk

The Company and Group makes purchases from a small number of suppliers whose invoices are denominated in currencies other than Sterling. The most frequently used currencies other than sterling are the Euro and the US Dollar, with separate bank accounts being maintained for each with any currency fluctuation being transferred to the profit and loss account.

Credit risk

The Company and Group's principal assets are cash deposits and trade debtors. The credit risk associated with cash deposits is limited as the accounts are held with major UK high street banks only. The principal credit risk arises from trade debtors and the Company and Group manages closely its exposure to bad debts.

Liquidity risk

The Company and Group seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably.

The Company and Group policy throughout the year has been to hold cash balances in readily accessible cash deposits and utilise leasing facilities for tangible asset acquisitions.

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 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 auditors are aware of that information.

AUDITORS

The auditors, Sumer Auditco Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

S T Pearce - Director

5 December 2025

Opinion

We have audited the financial statements of Atkinson Equipment Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2025 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31 March 2025 and of the group's profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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

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

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

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

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

-	the parent company financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the Group and industry, we identified that the principal risks of non-compliance with laws and regulations related to health and safety, anti-bribery, employment law and company legislation, and we considered the extent to which non-compliance might have a material effect on the financial statements of the Group. 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 and taxation legislation.

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 principal risks were related to posting inappropriate journal entries to increase revenue or reduce expenditure, and management bias in accounting estimates and judgemental areas of the financial statements such as the valuation of inter-company balances and the finances charges that have been imputed thereon. Audit procedures performed by the audit engagement team included:

-

Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud;

-

Understanding of management's internal controls designed to prevent and detect irregularities, and fraud;

-

Reviewing the Group's legal costs to check for non-compliance with laws and regulations and fraud;

-

Reviewing Board of Directors' minutes;

-

Review of tax compliance with the involvement of our tax specialists in the audit;

-

Designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing of expenses

-

Testing transactions entered into outside of the normal course of the Group's business; and

-

Identifying and testing journal entries, in particular any journal entries with fraud characteristics such as journals with round numbers.

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 our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Martin Longmore (Senior Statutory Auditor)

for and on behalf of Sumer Auditco Limited

Statutory Auditor

Chartered Accountants

County Gate

County Way

Trowbridge

Wiltshire

BA14 7FJ

5 December 2025

TURNOVER

4

39,667,531

38,358,296

Cost of sales

28,978,809

27,913,249

GROSS PROFIT

10,688,722

10,445,047

Administrative expenses

8,752,860

6,957,428

1,935,862

3,487,619

Other operating income

5

83,580

137,384

OPERATING PROFIT

7

2,019,442

3,625,003

Interest receivable and similar income

44,286

43,012

2,063,728

3,668,015

Gain/loss on revaluation of investment property

-

100,000

2,063,728

3,768,015

Interest payable and similar expenses

8

340,449

331,400

PROFIT BEFORE TAXATION

1,723,279

3,436,615

Tax on profit

9

745,025

885,612

PROFIT FOR THE FINANCIAL YEAR

978,254

2,551,003

Profit attributable to:

Owners of the parent

978,254

2,551,003

PROFIT FOR THE YEAR

978,254

2,551,003

OTHER COMPREHENSIVE INCOME

Movement on Capital Contribution

-

113,492

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

-

113,492

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

978,254

2,664,495

Total comprehensive income attributable to:

Owners of the parent

978,254

2,664,495

FIXED ASSETS

Intangible assets

12

1,654,603

2,895,556

Tangible assets

13

4,576,619

4,409,988

Investments

14

62,143

62,143

Investment property

15

-

450,000

6,293,365

7,817,687

CURRENT ASSETS

Stocks

16

4,801,655

5,225,803

Debtors

17

6,589,870

7,275,877

Cash at bank and in hand

3,453,276

2,523,819

14,844,801

15,025,499

CREDITORS

Amounts falling due within one year

18

6,654,608

7,879,302

NET CURRENT ASSETS

8,190,193

7,146,197

TOTAL ASSETS LESS CURRENT LIABILITIES

14,483,558

14,963,884

CREDITORS

Amounts falling due after more than one year

19

(2,174,938

)

(2,854,630

)

PROVISIONS FOR LIABILITIES

24

(481,118

)

(451,315

)

NET ASSETS

11,827,502

11,657,939

CAPITAL AND RESERVES

Called up share capital

25

440

440

Other reserves

26

-

348,491

Other reserves

26

1,969,440

1,969,440

Retained earnings

26

9,857,622

9,339,568

11,827,502

11,657,939

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:

S T Pearce - Director

FIXED ASSETS

Intangible assets

12

-

-

Tangible assets

13

-

-

Investments

14

13,507,214

13,691,161

Investment property

15

-

-

13,507,214

13,691,161

CURRENT ASSETS

Debtors

17

116,605

188,432

Cash at bank

1,041

20,016

117,646

208,448

CREDITORS

Amounts falling due within one year

18

3,986,507

3,031,615

NET CURRENT LIABILITIES

(3,868,861

)

(2,823,167

)

TOTAL ASSETS LESS CURRENT LIABILITIES

9,638,353

10,867,994

CREDITORS

Amounts falling due after more than one year

19

2,123,732

2,660,080

NET ASSETS

7,514,621

8,207,914

CAPITAL AND RESERVES

Called up share capital

25

440

440

Other reserves

26

-

113,491

Retained earnings

26

7,514,181

8,093,983

7,514,621

8,207,914

Company's profit for the financial year

115,398

3,449,824

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:

S T Pearce - Director

Called up

share

Retained

Other

Other

Total

capital

earnings

reserves

reserves

equity

£

£

£

£

£

Balance at 1 April 2023

440

7,059,250

595,367

1,969,440

9,624,497

Changes in equity

Dividends

-

(396,654

)

-

-

(396,654

)

Total comprehensive income

-

2,911,371

(246,876

)

-

2,664,495

Transfer

-

(234,399

)

-

-

(234,399

)

Balance at 31 March 2024

440

9,339,568

348,491

1,969,440

11,657,939

Changes in equity

Dividends

-

(480,118

)

-

-

(480,118

)

Total comprehensive income

-

978,254

-

-

978,254

Transfer

-

336,602

(336,602

)

-

-

Unwinding of discounted loan

-

(316,684

)

(11,889

)

-

(328,573

)

Balance at 31 March 2025

440

9,857,622

-

1,969,440

11,827,502

Called up

share

Retained

Other

Total

capital

earnings

reserves

equity

£

£

£

£

Balance at 1 April 2023

440

4,580,445

460,367

5,041,252

Changes in equity

Dividends

-

(396,654

)

-

(396,654

)

Total comprehensive income

-

3,910,192

(346,876

)

3,563,316

Balance at 31 March 2024

440

8,093,983

113,491

8,207,914

Changes in equity

Dividends

-

(480,118

)

-

(480,118

)

Total comprehensive income

-

115,398

-

115,398

Transfer

-

101,602

(101,602

)

-

Unwinding of discounted loan

-

(316,684

)

(11,889

)

(328,573

)

Balance at 31 March 2025

440

7,514,181

-

7,514,621

Cash flows from operating activities

Cash generated from operations

31

4,298,185

3,497,978

Interest paid

(230,378

)

(1,935

)

Interest element of hire purchase payments paid

(10,849

)

(15,701

)

Tax paid

(939,687

)

(465,959

)

Net cash from operating activities

3,117,271

3,014,383

Cash flows from investing activities

Purchase of tangible fixed assets

(768,191

)

(302,091

)

Sale of tangible fixed assets

91,720

81,001

Sale of investment property

500,000

-

Purchase of subsidiary

-

(5,032,089

)

Interest received

44,286

43,012

Net cash from investing activities

(132,185

)

(5,210,167

)

Cash flows from financing activities

New loans in the year

-

2,289,000

Repayment of mortgages

(91,807

)

(179,813

)

Capital repayments in year

(1,250,204

)

(1,055,000

)

Amount introduced by directors

67,222

-

Amount withdrawn by directors

(85,982

)

(129,946

)

Hire Purchase Repayments

(214,740

)

(414,930

)

Equity dividends paid

(480,118

)

(396,654

)

Net cash from financing activities

(2,055,629

)

112,657

Increase/(decrease) in cash and cash equivalents

929,457

(2,083,127

)

Cash and cash equivalents at beginning of year

32

2,523,819

4,606,946

Cash and cash equivalents at end of year

32

3,453,276

2,523,819

1.	STATUTORY INFORMATION

Atkinson Equipment Group 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.	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

The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

The principal accounting policies applied in the preparation of these financial statements are set out below.

These policies have been consistently applied to all the years presented, unless otherwise stated.

Going concern

After reviewing the Group's forecasts and projections, which cover the 12-month period from the date of

signing the financial statements, the directors have a reasonable expectation that the Group has adequate

resources to continue in operational existence for the foreseeable future.The Group therefore continues to

adopt the going concern basis in preparing its financial statements.

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.

Acquisitions are accounted for under the acquisition method and goodwill on consolidation is capitalised and

written off over three years from the date of acquisition. The results of the companies acquired or disposed are included in the profit and loss account after or up to the date that control passes respectively.

Significant judgements and estimates

In the application of the company's accounting policies, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 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.

The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the

financial statements are described below:

Investment property - Investment property is stated at fair value based upon either an independent third party

valuer or a valuation by directors who have experience in the location and category of property valued. The

valuer uses observable market prices adjusted as necessary for any difference in the future, location or condition of the specific asset.

Trade and other debtors - The allowance for doubtful accounts involves significant management judgement and review of individual receivables based on individual customer creditworthiness, current economic trends and analysis of historical bad debts on a portfolio basis.

Stock provisions - Significant estimates are involved in the determination of stock provisions. Management

exercise significant judgement in determining whether costs of stock items can be recovered. A provision is

made where a loss can be reliably estimated.

Investments - Investments are stated at their historic cost to the company less, where appropriate, impairment provisions for any permanent or temporary diminution in value. The determination of the recoverable amount of an investment involves the use of estimates by management.