REGISTERED NUMBER: 03324691 (England and Wales)

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIOD

1ST JANUARY 2024 TO 30TH DECEMBER 2024

FOR

MEMTECH LTD

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Consolidated Statement of Comprehensive Income

11

Consolidated Balance Sheet

13

Company Balance Sheet

14

Consolidated Statement of Changes in Equity

16

Company Statement of Changes in Equity

17

Consolidated Cash Flow Statement

18

Notes to the Consolidated Financial Statements

19

DIRECTORS:

Mr S J Thorpe

Mrs J C Thorpe

REGISTERED OFFICE:

Melton Grove Works

Church Road

Lytham St Annes

Lancashire

FY8 5PL

REGISTERED NUMBER:

03324691 (England and Wales)

SENIOR STATUTORY AUDITOR:

Christopher Bond

AUDITORS:

SBCA Statutory Auditor

17 Moor Park Avenue

Preston

Lancashire

PR1 6AS

The directors present their strategic report of the company and the group for the period 1st January 2024 to 30th December 2024.

REVIEW OF BUSINESS

The Group comprises MemTech Ltd (the Company) and its subsidiaries, Easy-Trim Roofing and Construction Products Limited and Vinyl GB Ltd.

During the financial year, the Group’s principal activities were the manufacture and supply of construction-related products to the UK market. Easy-Trim Roofing and Construction Products Limited operated as the main trading subsidiary, with Vinyl GB Ltd operating as a downstream manufacturing and distribution business.

Subsequent to the year end, and following the acquisition by MemTech Ltd of the remaining shares in Easy-Trim Roofing and Construction Products Limited which resulted in a significant cash injection into the subsidiary, both Easy-Trim Roofing and Construction Products Limited and its subsidiary Vinyl GB Ltd entered administration. As a result, the Group will not continue in its existing form for the foreseeable future.

MemTech Ltd, the parent company, remains solvent, has no going concern issues, and continues to meet its obligations as they fall due. However, due to the administration of the Group’s trading subsidiaries, the consolidated financial statements have been prepared on a basis other than going concern.

Financial Performance

Group turnover for the year was £20,673,115, compared with £20,425,186 in the prior year. The Parent Company generated revenue of £504,782, with an operating profit of £179,323. Performance was broadly in line with expectations, reflecting stable trading conditions in the core business.

As a consequence of the post year Administration process of Easy-Trim and Vinyl GB, the investment in the subsidiary were remeasured to net realisable value, resulting in impairment charges of £232,983, and a write off of inter group debt of £305,381

The Group reported a consolidated loss before tax of £122,157 for the year (2023: £398,050 profit), reflecting the impact of the subsidiary entering Administration and the resultant write off of investment and group debt.

Financial Position

The Group’s net assets at year-end were £864,703 (2023: £832,481).

The Parent Company remains solvent, with cash and cash equivalents of £101,822 and no material overdue liabilities.

The Parent Company has sufficient headroom in its financing facilities and continues to monitor cash flows carefully in order to support ongoing operations.

Events after the reporting period

Subsequent to the reporting date, MemTech Ltd acquired the remaining 40% shareholding in EasyTrim Roofing and Construction Products Limited, increasing its ownership to 100%.

Shortly thereafter, and despite significant cash injection and efforts made by the directors to support the businesses, Easy-Trim Roofing and Construction Products Limited and its subsidiary, Vinyl GB Ltd, entered administration.

These events have had a significant impact on the Group and are the primary reason why the consolidated financial statements have been prepared on a basis other than going concern.

PRINCIPAL RISKS AND UNCERTAINTIES

In addition to general economic uncertainty, the director considers the following to be the principal risks and uncertainties facing the Group, arising primarily from the administration of its subsidiaries.

Operational risk

Following the administration of Easy-Trim Roofing and Construction Products Limited and Vinyl GB Ltd, the Group is exposed to operational risk associated with the orderly management of these processes, including the potential requirement for additional management time and professional advisory costs.

As trading activities within the Group have ceased, operational risks are now limited to those associated with the administration and realisation of subsidiary assets rather than ongoing operations.

Financial risk

The Group’s principal financial risks relate to the uncertainty surrounding the timing and quantum of cash realisations from subsidiary assets and the settlement of liabilities through the administration process.

The parent company, MemTech Ltd, remains solvent and continues to manage its own liquidity independently of the subsidiaries. However, the ultimate financial impact on the Group will depend on the outcome of the administrations.

Liquidation and realisation risk

The preparation of the consolidated financial statements on a basis other than going concern requires the directors to make estimates and judgements regarding the realisable value of assets and the settlement of liabilities.

There is a risk that the amounts ultimately realised or settled may differ from the estimates included in the financial statements, which could result in material adjustments in future periods.

FUTURE DEVELOPMENTS

Following the administration of Easy-Trim Roofing and Construction Products Limited and Vinyl GB Ltd, the Group does not expect to continue trading in its current form.

The ultimate outcome of the administrations, including the timing and extent of asset realisations and liability settlements, remains uncertain and is dependent on the actions of the appointed administrators.

The directors of MemTech Ltd continue to evaluate future strategic options for the parent company, independent of the Group’s former trading activities.

KEY PERFORMANCE INDICATORS

The directors monitor performance by reference to various financial key performance indicators with particular focus on turnover and gross profit margin:

2022

2023

2024

Increase in turnover

(0.54)%

2.9%

1.7%

Gross profit margin

27.34%

31.7%

28.7%

EBITDA as a percentage of sales

4.7%

7.2%

4.5%

EBITDA

£932k

£1,481k

£929k

ON BEHALF OF THE BOARD:

Mr S J Thorpe - Director

23rd December 2025

The directors present their report with the financial statements of the company and the group for the period 1st January 2024 to 30th December 2024.

PRINCIPAL ACTIVITY

The principal activity of the group in the period under review was that of manufacture and distribution of roofing products.

DIVIDENDS

Interim dividends per share were paid during the period as follows:

B Ordinary £1

-

£2,166.40

- 6th April 2024

C Ordinary £1

-

£4,609.50

- 6th April 2024

The total distribution of dividends for the period ended 30th December 2024 will be £ 67,759 .

EVENTS SINCE THE END OF THE PERIOD

Information relating to events since the end of the period is given in the notes to the financial statements.

DIRECTORS

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

Mr S J Thorpe

Mrs J C Thorpe

DISCLOSURE IN THE STRATEGIC REPORT

The group has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in te directors' report.

DIRECTORS' RESPONSIBILITIES STATEMENT

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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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, SBCA Statutory Auditors, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

ON BEHALF OF THE BOARD:

Mr S J Thorpe - Director

23rd December 2025

Opinion

We have audited the financial statements of Memtech Ltd (the 'parent company') and its subsidiaries (the 'group') for the period ended 30th December 2024 which comprise the Consolidated Statement of 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 30th December 2024 and of the group's profit for the period 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

We have concluded that the directors’ use of the going concern basis of accounting is not appropriate for the Group, as explained in Note 2 to the financial statements.

As described in that note, subsequent to the reporting date certain subsidiaries of the Group entered administration and, as a result, the Group will not continue trading in its current form. Accordingly, the financial statements have been prepared on a basis other than going concern.

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

Emphasis of matter

We draw attention to Note 2 to the financial statements, which explains that subsequent to the reporting date certain subsidiaries of the Group entered administration and, as a result, the Group will not continue trading in its current form. Accordingly, the consolidated financial statements have been prepared on a basis other than going concern.

Our opinion is not modified in respect of this matter.

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 Directors' Responsibilities Statement set out on pages five and six, 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:

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 our procedures are capable of detecting irregularities, including fraud, is detailed below.

Based on our understanding of the group and sector, we identified that the principal risks of non-compliance with laws and regulations related to, but were not limited to, the Companies Act 2006, UK tax, employment, pension and health and safety legislation and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006.

We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to management bias in accounting estimates and judgements and fraudulent income recognition.

Our procedures to respond to risks identified included the following:

- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct impact on the financial statements;

- enquiring of management about actual and potential litigation and claims, their policies and procedures to prevent and detect fraud as well as whether they have knowledge of any actual, suspected or alleged fraud;

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

- obtaining an understanding of provisions and holding discussions with management to understand the basis of recognition or non-recognition of tax provisions; and

- in addressing the risk of fraud through management override of controls: testing the appropriateness of journal entries; assessing whether the accounting estimates, judgements and decisions made by management are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

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 directors 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.

Christopher Bond (Senior Statutory Auditor)

for and on behalf of SBCA Statutory Auditor

17 Moor Park Avenue

Preston

Lancashire

PR1 6AS

23rd December 2025

TURNOVER

4

20,673,115

20,425,186

Cost of sales

(14,725,155

)

(13,955,745

)

GROSS PROFIT

5,947,960

6,469,441

Administrative expenses

(6,013,947

)

(5,730,114

)

(65,987

)

739,327

Other operating income

5

400,617

260,072

334,630

999,399

Interest receivable and similar income

6,682

6,248

341,312

1,005,647

Amounts written off investments

7

-

(132,000

)

341,312

873,647

Interest payable and similar expenses

8

(463,469

)

(475,597

)

(LOSS)/PROFIT BEFORE TAXATION

9

(122,157

)

398,050

Tax on (loss)/profit

11

222,138

(188,685

)

PROFIT FOR THE FINANCIAL PERIOD

99,981

209,365

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

99,981

209,365

Profit attributable to:

Owners of the parent

(222,186

)

296,977

Non-controlling interests

322,167

(87,612

)

99,981

209,365

Total comprehensive income attributable to:

Owners of the parent

(222,186

)

296,977

Non-controlling interests

322,167

(87,612

)

99,981

209,365

FIXED ASSETS

Intangible assets

14

(27,004

)

(31,693

)

Tangible assets

15

4,691,430

4,515,887

Investments

16

-

-

4,664,426

4,484,194

CURRENT ASSETS

Stocks

17

2,277,172

2,571,742

Debtors

18

5,973,499

5,614,489

Cash at bank and in hand

105,898

212,630

8,356,569

8,398,861

CREDITORS

Amounts falling due within one year

19

(12,156,292

)

(10,576,679

)

NET CURRENT LIABILITIES

(3,799,723

)

(2,177,818

)

TOTAL ASSETS LESS CURRENT LIABILITIES

864,703

2,306,376

CREDITORS

Amounts falling due after more than one year

20

-

(1,129,874

)

PROVISIONS FOR LIABILITIES

24

-

(344,021

)

NET ASSETS

864,703

832,481

CAPITAL AND RESERVES

Called up share capital

25

100

100

Retained earnings

26

446,848

736,793

SHAREHOLDERS' FUNDS

446,948

736,893

NON-CONTROLLING INTERESTS

417,755

95,588

TOTAL EQUITY

864,703

832,481

The financial statements were approved by the Board of Directors and authorised for issue on 23rd December 2025 and were signed on its behalf by:

Mr S J Thorpe - Director

FIXED ASSETS

Intangible assets

14

-

-

Tangible assets

15

-

-

Investments

16

-

232,983

-

232,983

CURRENT ASSETS

Debtors

18

350,000

274,694

Cash at bank

101,822

183,280

451,822

457,974

CREDITORS

Amounts falling due within one year

19

(210,117

)

(208,467

)

NET CURRENT ASSETS

241,705

249,507

TOTAL ASSETS LESS CURRENT LIABILITIES

241,705

482,490

CAPITAL AND RESERVES

Called up share capital

25

100

100

Retained earnings

26

241,605

482,390

SHAREHOLDERS' FUNDS

241,705

482,490

Company's (loss)/profit for the financial year

(173,026

)

277,348

The financial statements were approved by the Board of Directors and authorised for issue on 23rd December 2025 and were signed on its behalf by:

....................................................................

Mr S J Thorpe - Director

Called up

share

Retained

Non-controlling

Total

capital

earnings

Total

interests

equity

£

£

£

£

£

Balance at 1st January 2023

100

433,856

433,956

183,200

617,156

Changes in equity

Dividends

-

(126,040

)

(126,040

)

-

(126,040

)

Total comprehensive income

-

296,977

296,977

(87,612

)

209,365

Parent share of inv write off

-

132,000

132,000

-

132,000

Balance at 31st December 2023

100

736,793

736,893

95,588

832,481

Changes in equity

Dividends

-

(67,759

)

(67,759

)

-

(67,759

)

Total comprehensive income

-

(222,186

)

(222,186

)

322,167

99,981

Balance at 30th December 2024

100

446,848

446,948

417,755

864,703

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st January 2023

100

331,082

331,182

Changes in equity

Dividends

-

(126,040

)

(126,040

)

Total comprehensive income

-

277,348

277,348

Balance at 31st December 2023

100

482,390

482,490

Changes in equity

Dividends

-

(67,759

)

(67,759

)

Total comprehensive income

-

(173,026

)

(173,026

)

Balance at 30th December 2024

100

241,605

241,705

Cash flows from operating activities

Cash generated from operations

30

1,482,010

2,187,939

Interest paid

(444,429

)

(436,238

)

Interest element of hire purchase payments paid

(19,040

)

(39,359

)

Tax paid / (refund)

(85,391

)

(73,915

)

Net cash from operating activities

933,150

1,638,427

Cash flows from investing activities

Purchase of intangible fixed assets

(1,694

)

-

Purchase of tangible fixed assets

(494,746

)

(326,929

)

Sale of tangible fixed assets

68,037

56,500

Interest received

6,682

6,248

Net cash from investing activities

(421,721

)

(264,181

)

Cash flows from financing activities

Loan repayments in year

(600,000

)

(616,646

)

HP capital repayments in year

(148,218

)

(374,737

)

Amount withdrawn by directors

15,554

(373,648

)

Invoice financing facility

(478,913

)

(36,550

)

Equity dividends paid

(67,759

)

(126,040

)

Net cash from financing activities

(1,279,336

)

(1,527,621

)

Decrease in cash and cash equivalents

(767,907

)

(153,375

)

Cash and cash equivalents at beginning of period

31

(382,872

)

(229,497

)

Cash and cash equivalents at end of period

31

(1,150,779

)

(382,872

)

1.	STATUTORY INFORMATION

Memtech Ltd 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 company is a qualifying entity for the purposes of FRS102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

- Section 4 'Statement of Financial Position' - Reconciliation of the opening and closing number of shares;

- Section 7 'Statement of Cash Flows' - Presentation of a statement of cash flow and related notes and disclosures;

- Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instrument Issues' - Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

- Section 33 'Related Party Disclosures' - Compensation for key management personnel.

Basis of Preparation - Basis Other Than Going Concern

Subsequent to the reporting date, and following the acquisition by MemTech Ltd of the remaining shares in Easy-Trim Roofing and Construction Products Limited, both Easy-Trim Roofing and Construction Products Limited and its subsidiary, Vinyl GB Ltd, entered administration.

As a result of these events, the directors have concluded that the Group will not continue trading in its current form and that there is no realistic alternative but to realise the assets and settle the liabilities of the Group. Accordingly, the consolidated financial statements have been prepared on a basis other than going concern.

The parent company, MemTech Ltd, remains solvent and continues to meet its obligations as they fall due. The directors have therefore concluded that it is appropriate to prepare the parent company financial statements on a going concern basis.

Basis of consolidation

The consolidated financial statements present the results of the Group and its own subsidiaries "the Group" as is they form a single entity. Intercompany transactions and balances between Group companies are therefore eliminated in full.

The consolidated financial statements incorporate the results of the business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date that control ceases.

Turnover

Turnover represents amounts recoverable for the sale of plastic material and pellets and the distribution of manufactured roofing and construction products despatched by the balance sheet date, net of VAT and trade discounts.

The company recognises revenue when;

- the significant risks and rewards of ownership have been transferred to the buyer;

- the company retains no continuing involvement or control over the goods;

- the amount of revenue can be measured reliably;

- it is probable that future economic benefits will flow to the entity; and

- any specific criteria relating to the transactions have been met.

Goodwill

Purchased goodwill arising on the acquisition of a business represents the excess of the acquisition cost over the fair value of the identifiable net assets including other intangible fixed assets when they were acquired. Purchased goodwill is capitalised in the Balance Sheet and amortised on a straight line basis over its useful economic life of 5 years, which is estimated to be the period during which the benefits are expected to arise. On disposal of a business any goodwill not yet amortised is included in determining the profit or loss on sale of the business.

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.

Patents and licences are being amortised evenly over their estimated useful life of ten years.

Development costs are being amortised evenly over their estimated useful life of three years.

Negative goodwill is being amortised evenly over its estimated useful life of ten years.