REGISTERED NUMBER: 02500029 (England and Wales)

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTOR AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

GEORGE ABRAHAMS LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Director

4

Report of the Independent Auditors

5

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 Cash Flow Statement

16

Notes to the Consolidated Financial Statements

17

DIRECTOR:

Mr G C Abrahams

SECRETARY:

Mr M Watts

REGISTERED OFFICE:

22 Central Market

Smithfield

London

EC1A 9PQ

REGISTERED NUMBER:

02500029 (England and Wales)

AUDITORS:

Xeinadin Audit Limited Chartered Accountants

Statutory Auditor

8th Floor, Becket House

36 Old Jewry

London

EC2R 8DD

The director presents his strategic report of the company and the group for the year ended 31 December 2024.

REVIEW OF BUSINESS

The group delivered exceptional performance during the year, marking a significant transformation from the prior period. Our well-established global vendor relationships enabled us to respond swiftly to opportunities arising from the trend of companies now willing to use rest of the world (ROW) as well as British and Irish. This strong performance trajectory has continued into FY 2025, positioning us to deliver record results.

Key factors underpinning our success included our agile supply chain management, deep-rooted international partnerships, and strategic market positioning. The removal of tariff barriers under the trade agreement enhanced our competitive advantage and margin profile, whilst our lean operational infrastructure proved well-suited to capitalize on these favourable conditions. Looking ahead, we remain focused on sustaining this momentum through continued investment in our vendor relationships and exploration of further trade opportunities.

A summary of the performance for the year is given below :-

Turnover increased by 6% to £32.5m, with gross margin increased to 10.25% (2023: 5.30%).

Operating profit for the year was at £1.19m (FY 23: loss £676k). Profit before tax was at £1.10m (FY 23 £558K).

The state of affairs at the balance sheet date is considered to be strong with net assets increasing to £10.3m (2023: £9.2m).

The key financial performance indicators for the company are as follows:-

KPI

2024

2023

Measure

Gross Profit Margin

10.25%

5.30%

Gross Profit/Turnover

Debtors days

44 days

42 days

Trade Debtors/Turnover

Creditors days

25 days

19 days

Trade Creditors/Cost of Sales

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks and uncertainties affecting the business include:-

- Retention of customers - the group maintains strong relationships with each of its key customers and has established procedures for monitoring performance and service levels.

- Competitive risk - the group offers a range of products to meet the demands of its customer base. Its cost base is kept under constant review to ensure it is efficient.

- Market conditions - the group's ability to adapt quickly to changes in the marketplace mitigates the risk of this area.

- Exchange rate risk - the group has exchange risk on imports and exports. The director monitors trading and their exposure to such risk and takes action needed to hedge such risk.

- Resources risk - the director believes that the group has adequate financial resources in place to meet its forecast trading requirements and all risks and uncertainties are managed appropriately.

FUTURE DEVELOPMENTS

Following the strategic repositioning undertaken in recent years, the group has successfully restored trading activity to historical performance levels during 2024. This recovery reflects both the resilience of our business model and the effectiveness of our operational adjustments. The board remains confident in the company's capacity to deliver sustained growth within its sector, supported by strengthened market foundations and enhanced operational capabilities.

EMPLOYEES

The group operates an equal opportunities policy. The aim of this policy is to ensure that there should be equal opportunity for all and this applies to external recruitment, internal appointments, terms of employment, conditions of service and opportunity for training and promotion regardless of gender, ethnic origin or disability.

Disabled persons are given full and fair consideration for all types of vacancy in as much as the opportunities available are constrained by the practical limitations of the disability. Should, for whatever reason, an employee of the group become disabled whilst in our employment, every step, where appropriate, will be taken to assist with rehabilitation and suitable re-training.

The group maintains its own health, safety and environmental policies covering all aspects of its operations. Regular meetings and inspections take place to ensure all legal requirements are adhered to and that thegroup is responsive to the needs of the employees and the environment.

The group is a BRCGS independently audited group which monitors all aspects in regards to personnel, animal welfare and public health as well as the environment and the companies attitude in a broad criteria of subjects which include statements on culture and slave labour.

FINANCIAL INSTRUMENTS

The group has banking facilities in place with HSBC Bank and operates within its facility limits.

The group entered into forward exchange contracts to hedge its forward commitments in foreign currencies. There are accounting adjustments in the accounts in relation to the translation of currency balances at the period end.

ON BEHALF OF THE BOARD:

Mr G C Abrahams - Director

13 December 2025

The director presents his report with the financial statements of the company and the group for the year ended 31 December 2024.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2024 (2023- nil).

DIRECTOR

Mr G C Abrahams held office during the whole of the period from 1 January 2024 to the date of this report.

POLITICAL DONATIONS AND EXPENDITURE

During the year under review the group made charitable donations of £2,500.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

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

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

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

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

ON BEHALF OF THE BOARD:

Mr G C Abrahams - Director

13 December 2025

Opinion

We have audited the financial statements of George Abrahams Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2024 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's 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 director with respect to going concern are described in the relevant sections of this report.

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and 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 Director.

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

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

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

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

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

Responsibilities of director

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

In preparing the financial statements, the director is responsible for assessing the group's 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 director either intends to liquidate the group or the parent company or to cease operations, or has no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

-we identified the laws and regulations applicable to the group through discussions with the director and other management, and from our commercial knowledge and experience of the group's sector;

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the group, including the Companies Act 2006, taxation legislation and data protection, employment, health and safety legislation.

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence where necessary.

We assessed the susceptibility of the group's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected transactions;

- tested the appropriateness of journal entries;

- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

- investigated the rationale behind significant or unusual transactions.

To address the risk that revenue could be misstated due to fraud. we:

- obtained an understanding of the company's revenue recognition policies and compared these to the accounting standard;

- performed a walkthrough to confirm our understanding of the processes and controls through which the business initiates, records, processes and reports revenue transactions;

- tested a sample of revenue transactions to supporting evidence; and

- tested, on a sample basis, revenue related balances in the balance sheet.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;

- enquiring of management as to actual and potential litigation and claims; and

- reviewing correspondence with HMRC and relevant regulators.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the director and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or 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.

Mr Paul Dell F.C.A (Senior Statutory Auditor)

for and on behalf of Xeinadin Audit Limited Chartered Accountants

Statutory Auditor

8th Floor, Becket House

36 Old Jewry

London

EC2R 8DD

13 December 2025

TURNOVER

32,528,112

30,686,375

Cost of sales

(29,192,122

)

(29,059,967

)

GROSS PROFIT

3,335,990

1,626,408

Administrative expenses

(2,266,779

)

(2,422,438

)

1,069,211

(796,030

)

Other operating income

120,000

120,000

OPERATING PROFIT/(LOSS)

4

1,189,211

(676,030

)

Stock write off

5

-

(705,340

)

Profit on sale of tangible

fixed assets

5

-

2,214,865

1,189,211

833,495

Interest receivable and similar income

6

110,090

127,792

1,299,301

961,287

Interest payable and similar expenses

7

(197,151

)

(403,090

)

PROFIT BEFORE TAXATION

1,102,150

558,197

Tax on profit

8

(13,011

)

(351,750

)

PROFIT FOR THE FINANCIAL YEAR

1,089,139

206,447

Profit attributable to:

Owners of the parent

1,089,139

206,447

PROFIT FOR THE YEAR

1,089,139

206,447

OTHER COMPREHENSIVE INCOME

Reserves

(45,043

)

10,135

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

(45,043

)

10,135

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,044,096

216,582

Total comprehensive income attributable to:

Owners of the parent

1,044,096

216,582

FIXED ASSETS

Intangible assets

10

-

-

Tangible assets

11

187,892

59,143

Investments

12

-

-

187,892

59,143

CURRENT ASSETS

Stocks

13

2,688,335

3,141,728

Debtors

14

10,944,071

10,171,948

Cash at bank and in hand

499,007

912,048

14,131,413

14,225,724

CREDITORS

Amounts falling due within one year

15

3,740,242

4,282,087

NET CURRENT ASSETS

10,391,171

9,943,637

TOTAL ASSETS LESS CURRENT LIABILITIES

10,579,063

10,002,780

CREDITORS

Amounts falling due after more than one year

16

(250,000

)

(750,000

)

PROVISIONS FOR LIABILITIES

20

(46,973

)

(14,786

)

NET ASSETS

10,282,090

9,237,994

CAPITAL AND RESERVES

Called up share capital

21

100,100

100,100

Retained earnings

22

10,181,990

9,137,894

SHAREHOLDERS' FUNDS

10,282,090

9,237,994

The financial statements were approved by the director and authorised for issue on 13 December 2025 and were signed by:

Mr G C Abrahams - Director

FIXED ASSETS

Intangible assets

10

-

-

Tangible assets

11

187,892

59,143

Investments

12

878

878

188,770

60,021

CURRENT ASSETS

Stocks

13

2,204,521

2,530,608

Debtors

14

12,032,704

11,778,730

Cash at bank and in hand

361,842

503,066

14,599,067

14,812,404

CREDITORS

Amounts falling due within one year

15

3,473,529

4,213,003

NET CURRENT ASSETS

11,125,538

10,599,401

TOTAL ASSETS LESS CURRENT LIABILITIES

11,314,308

10,659,422

CREDITORS

Amounts falling due after more than one year

16

(250,000

)

(750,000

)

PROVISIONS FOR LIABILITIES

20

(46,973

)

(14,786

)

NET ASSETS

11,017,335

9,894,636

CAPITAL AND RESERVES

Called up share capital

21

100,100

100,100

Retained earnings

22

10,917,235

9,794,536

SHAREHOLDERS' FUNDS

11,017,335

9,894,636

Company's profit for the financial year

1,122,699

657,912

The financial statements were approved by the director and authorised for issue on 13 December 2025 and were signed by:

Mr G C Abrahams - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

100,100

8,921,312

9,021,412

Changes in equity

Total comprehensive income

-

216,582

216,582

Balance at 31 December 2023

100,100

9,137,894

9,237,994

Changes in equity

Total comprehensive income

-

1,044,096

1,044,096

Balance at 31 December 2024

100,100

10,181,990

10,282,090

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

100,100

9,136,624

9,236,724

Changes in equity

Total comprehensive income

-

657,912

657,912

Balance at 31 December 2023

100,100

9,794,536

9,894,636

Changes in equity

Total comprehensive income

-

1,122,699

1,122,699

Balance at 31 December 2024

100,100

10,917,235

11,017,335

Cash flows from operating activities

Cash generated from operations

1

1,561,550

2,818,534

Interest paid

(197,151

)

(403,090

)

Tax paid

(1,039,897

)

(18,626

)

Net cash from operating activities

324,502

2,396,818

Cash flows from investing activities

Purchase of tangible fixed assets

(148,753

)

(54,133

)

Sale of tangible fixed assets

-

2,214,865

Interest received

110,090

127,792

Net cash from investing activities

(38,663

)

2,288,524

Cash flows from financing activities

New loans in year

56,416

-

Loan repayments in year

(500,000

)

(500,000

)

Amount introduced by directors

-

23,747

Amount withdrawn by directors

(210,253

)

(759,115

)

Net cash from financing activities

(653,837

)

(1,235,368

)

(Decrease)/increase in cash and cash equivalents

(367,998

)

3,449,974

Cash and cash equivalents at beginning of year

2

912,048

(2,548,062

)

Effect of foreign exchange rate changes

(45,043

)

10,136

Cash and cash equivalents at end of year

2

499,007

912,048

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

2024

2023

£

£

Profit before taxation

1,102,150

558,197

Depreciation charges

20,004

10,619

Profit on disposal of fixed assets

-

(2,214,865

)

Finance costs

197,151

403,090

Finance income

(110,090

)

(127,792

)

1,209,215

(1,370,751

)

Decrease in stocks

453,393

1,156,801

(Increase)/decrease in trade and other debtors

(558,838

)

3,776,685

Increase/(decrease) in trade and other creditors

457,780

(744,201

)

Cash generated from operations

1,561,550

2,818,534

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

499,007

912,048

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

912,048

1,630,738

Bank overdrafts

-

(4,178,800

)

912,048

(2,548,062

)

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank and in hand

912,048

(413,041

)

499,007

912,048

(413,041

)

499,007

Debt

Debts falling due within 1 year

(712,584

)

(56,416

)

(769,000

)

Debts falling due after 1 year

(750,000

)

500,000

(250,000

)

(1,462,584

)

443,584

(1,019,000

)

Total

(550,536

)

30,543

(519,993

)

1.	STATUTORY INFORMATION

George Abrahams 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 director believes that the group is well placed to manage its business risks successfully. Accordingly, he has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus he continues to adopt the going concern basis of accounting in preparing the financial statements.

Basis of consolidation

The group financial statements consolidate the results and balance sheets of the parent and its material subsidiaries at the year end. The results of the material subsidiaries acquired are consolidated for the period from which control passed to the parent company using the acquisition basis of accounting. The results of the material subsidiaries disposed of during the period are consolidated up to the date of disposal.

In the parent financial statements, investments in subsidiaries are carried at cost less impairment.

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.

Critical accounting judgements and key sources of estimation uncertainty

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the

circumstances.

The items in the financial statements where these judgements and estimates have been made include:

- assessing the useful economic lives attributed to tangible fixed assets used to determine the annual depreciation charge,

- the provision required for any bad or doubtful debts, and

- any provision for slow moving or obsolete stock.

Revenue

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

Sale of goods

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

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

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

- the amount of revenue can be measured reliably;

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

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

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.

Computer software is being amortised evenly over its estimated useful life of five years.

Tangible fixed assets

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

Plant and machinery

-

15% on cost

Fixtures and fittings

-

15% on cost

Computer equipment

-

15% on cost

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.