REGISTERED NUMBER: 08738122 (England and Wales)

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTOR AND

CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2025

FOR

DUVAL INVESTMENTS LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Director

4

Report of the Independent Auditors

5

Consolidated Income Statement

8

Consolidated Other Comprehensive Income

9

Consolidated Balance Sheet

10

Company Balance Sheet

11

Consolidated Statement of Changes in Equity

12

Company Statement of Changes in Equity

13

Consolidated Cash Flow Statement

14

Notes to the Consolidated Cash Flow Statement

15

Notes to the Consolidated Financial Statements

16

DIRECTOR:

P A Duval

REGISTERED OFFICE:

12 Market Street

Hebden Bridge

West Yorkshire

HX7 6AD

REGISTERED NUMBER:

08738122 (England and Wales)

AUDITORS:

Cresswells Accountants (UK) Limited

Chartered Accountants

and Statutory Auditors

12 Market Street

Hebden Bridge

West Yorkshire

HX7 6AD

The director presents his strategic report of the company and the group for the year ended 31st March 2025.

WHAT WE DO

The main trading subsidiary of the group, Premier Mist is the UK's leading approved low pressure watermist provider. Premier Mist UK Limited are a specialist provider of low-pressure Water Mist and Sprinkler systems with a reputation for delivering an exceptional and proven product to its clients across a wide spectrum.

REVIEW OF BUSINESS

2024-2025 has seen the group's turnover remain at a consistently high level, albeit slightly down on the previous year it is still in line with the group's expectations. The group continues to grow year on year.

There are a number of factors that have contributed to this continued growth:

i)

Continual high demand within the industry resulting in the group continuing to experience high numbers of enquiries, sales and contracts within this period. This remains in line with the group's projections and forecasting and is reflective of the group's standing and reputation within the industry. The group continues to develop strong client relationships enabling it to secure a high proportion of repeat business as well as securing new business, always providing high quality service.Developing relationships with contractors, securing ongoing business and providing high quality service.

ii)

The group continues to look at increasing its staffing resources both office and site based as has been the case in this period and is always striving to improve the quality and service it provides to its clients. Allowing efficient processes from enquiry, through sales and design and onto installation and management on a nationwide scale.

iii)

Further to point ii) above, the group has fostered strategic partnerships with approved subcontractors within the industry, enabling the provision of a greater pool of manpower and, combined with its directly employed staff, allowing for increased operations to be carried out on numerous large scale projects simultaneously.

iv)

It has also looked to commit to the longevity of its staff by promoting within house and offering various incentives to promote and encourage a healthy and motivated workforce.

v)

The group has achieved numerous industry specific accreditations to ensure all avenues of sales and project types are available to it and to provide the expertise and knowledge its clients require, these include LPCB and IFC.

The director is happy with company performance which is in line with its forecast and expectations and see this year as part of the continued growth of the group.

FINANCIAL KEY PERFORMANCE INDICATORS (KPI’s)

The important KPI's the company relies on are turnover and GP%, both of which have proven to fall within the parameters set out in the director's forecasts. Whilst turnover is down on the previous year the GP% is up achieving 36% which is due to the increased efficiency achieved through the year.

This is monitored regularly through the financial period to ensure standards and targets are achieved.

PRINCIPAL RISKS AND UNCERTAINTIES

As remains the case within our industry the main risks that the group has highlighted that affect the group's growth and performance are:

1)

Materials. Due to inflation materials are rising in cost year on year and as such the director continues to build in allowances for this in their costings which as a result will ensure stability and increase GP%.

2)

Skilled installation engineers. Within such a competitive industry there is a constant battle to find enough skilled workers to fulfil the group's requirements and manage it's order book. The group is constantly looking to increase its installation workforce. In the meantime, it is taking advantage of the large subcontractor sector in the industry which comes with its own benefits.

3)

The fragility of some of the main contractors' financial positions and the cutthroat nature of the construction industry in general can lead to the risk of liquidation of potential clients. The group seeks to mitigate the risk of bad debt through a number of strategies. These include: the implementation of strict commercial contract review, the continual monitoring of clients' finances through credit checks and financial reporting, limiting credit facilities when necessary, carrying out regular site audits on all projects and ensuring the risk of contracting is spread across a multiple and diverse client base.

FUTURE PLANS FOR THE GROUP

The group plans to continually grow and has set in place new opportunities for increasing turnover within the coming periods. It also continually looks at ways to increase efficiency and achieve higher GP year on year. The main areas it continues to focus on is through adjusting its costings according to material price fluctuations, increasing its resources, attaining more accreditation and opening new revenue streams through diversification.

In this period the group has purchased large prestigious new office premises which has allowed for an increase in staff, an increase in services provided/diversification, a better working environment for its office based staff and will be an important and much needed step to achieving its next level/phase of growth covering the next ten years. It has invested heavily in the new offices to create an environment suitable for its future objectives of growth and profitability.

ON BEHALF OF THE BOARD:

P A Duval - Director

23rd December 2025

The director presents his report with the financial statements of the company and the group for the year ended 31st March 2025.

DIVIDENDS

An interim dividend of 616.05 per share was paid on 30th April 2024. The director recommends that no final dividend be paid.

The total distribution of dividends for the year ended 31st March 2025 will be £ 699,999 .

DIRECTOR

P A Duval held office during the whole of the period from 1st April 2024 to the date of this report.

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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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, Cresswells Accountants (UK) Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

P A Duval - Director

23rd December 2025

Opinion

We have audited the financial statements of Duval Investments Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31st 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 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 31st 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 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:

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures include the following:

-

we obtained an understanding of the legal and regulatory frameworks applicable to the group and parent company and the sector in which it operates. We determined the following laws and regulations were most significant: The Companies Act 2006, FRS 102 and Health and Safety Act.

-

we obtained an understanding of how the group and parent company is complying with those legal and regulatory frameworks by making inquiries to the management.

-

we assessed the susceptibility of the group and parent company's financial statements to material misstatement including how fraud might occur. Audit procedures performed by the audit team included:

-

identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud.

-

understanding how those charged with governance considered and addressed the potential of override of controls or other inappropriate influence over the financial reporting process.

-

challenging assumptions and judgements made by management in its significant accounting estimates.

-

identifying and testing journal entries.

-

assessing the extent of compliance with the relevant laws and regulations.

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.

John Dakin BSc FCA (Senior Statutory Auditor)

for and on behalf of Cresswells Accountants (UK) Limited

Chartered Accountants

and Statutory Auditors

12 Market Street

Hebden Bridge

West Yorkshire

HX7 6AD

23rd December 2025

TURNOVER

3

14,050,815

15,167,571

Cost of sales

8,952,808

10,555,697

GROSS PROFIT

5,098,007

4,611,874

Administrative expenses

3,931,592

3,831,224

1,166,415

780,650

Other operating income

83,228

-

OPERATING PROFIT

5

1,249,643

780,650

Interest receivable and similar income

31,802

31,335

1,281,445

811,985

Interest payable and similar expenses

6

169,345

115,634

PROFIT BEFORE TAXATION

1,112,100

696,351

Tax on profit

7

289,818

228,905

PROFIT FOR THE FINANCIAL YEAR

822,282

467,446

Profit attributable to:

Owners of the parent

814,849

395,752

Non-controlling interests

7,433

71,694

822,282

467,446

PROFIT FOR THE YEAR

822,282

467,446

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

822,282

467,446

Total comprehensive income attributable to:

Owners of the parent

814,849

371,752

Non-controlling interests

7,433

95,694

822,282

467,446

FIXED ASSETS

Intangible assets

10

96,764

125,970

Tangible assets

11

786,055

27,993

Investments

12

-

-

882,819

153,963

CURRENT ASSETS

Stocks

13

376,454

301,956

Debtors

14

3,743,114

3,901,550

Cash at bank and in hand

2,914,348

3,117,467

7,033,916

7,320,973

CREDITORS

Amounts falling due within one year

15

5,396,783

5,793,943

NET CURRENT ASSETS

1,637,133

1,527,030

TOTAL ASSETS LESS CURRENT LIABILITIES

2,519,952

1,680,993

CREDITORS

Amounts falling due after more than one year

16

(1,005,424

)

(452,002

)

PROVISIONS FOR LIABILITIES

20

(170,252

)

(6,998

)

NET ASSETS

1,344,276

1,221,993

CAPITAL AND RESERVES

Called up share capital

21

1,001

1,001

Retained earnings

22

1,086,562

971,712

SHAREHOLDERS' FUNDS

1,087,563

972,713

NON-CONTROLLING INTERESTS

23

256,713

249,280

TOTAL EQUITY

1,344,276

1,221,993

The financial statements were approved by the director and authorised for issue on 23rd December 2025 and were signed by:

P A Duval - Director

FIXED ASSETS

Intangible assets

10

-

-

Tangible assets

11

-

-

Investments

12

1,822,585

1,822,585

1,822,585

1,822,585

CURRENT ASSETS

Debtors

14

261,110

710,615

Cash at bank

599

7,840

261,709

718,455

CREDITORS

Amounts falling due within one year

15

1,932,069

2,496,935

NET CURRENT LIABILITIES

(1,670,360

)

(1,778,480

)

TOTAL ASSETS LESS CURRENT LIABILITIES

152,225

44,105

CAPITAL AND RESERVES

Called up share capital

21

1,001

1,001

Retained earnings

22

151,224

43,104

SHAREHOLDERS' FUNDS

152,225

44,105

Company's profit for the financial year

674,786

78,791

The financial statements were approved by the director and authorised for issue on 23rd December 2025 and were signed by:

P A Duval - Director

Called up

share

Retained

Non-controlling

Total

capital

earnings

Total

interests

equity

£

£

£

£

£

Balance at 1st April 2023

1,001

934,610

935,611

153,586

1,089,197

Changes in equity

Dividends

-

(358,650

)

(358,650

)

-

(358,650

)

Total comprehensive income

-

395,752

395,752

95,694

491,446

Balance at 31st March 2024

1,001

971,712

972,713

249,280

1,221,993

Changes in equity

Dividends

-

(699,999

)

(699,999

)

-

(699,999

)

Total comprehensive income

-

814,849

814,849

7,433

822,282

Balance at 31st March 2025

1,001

1,086,562

1,087,563

256,713

1,344,276

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st April 2023

1,001

322,963

323,964

Changes in equity

Dividends

-

(358,650

)

(358,650

)

Total comprehensive income

-

78,791

78,791

Balance at 31st March 2024

1,001

43,104

44,105

Changes in equity

Dividends

-

(566,666

)

(566,666

)

Total comprehensive income

-

674,786

674,786

Balance at 31st March 2025

1,001

151,224

152,225

Cash flows from operating activities

Cash generated from operations

1

416,347

1,390,878

Interest paid

(169,345

)

(115,634

)

Tax paid

(217,192

)

(23,337

)

Net cash from operating activities

29,810

1,251,907

Cash flows from investing activities

Purchase of tangible fixed assets

(51,318

)

(4,803

)

Sale of investment property

-

700,000

Interest received

31,802

31,335

Net cash from investing activities

(19,516

)

726,532

Cash flows from financing activities

New loans in year

328,500

-

Loan repayments in year

(421,477

)

(327,041

)

Deposit not yet paid on hire purchase

147,500

-

Amount introduced by directors

699,999

-

Amount withdrawn by directors

(267,936

)

(611,645

)

Equity dividends paid

(699,999

)

(358,650

)

Net cash from financing activities

(213,413

)

(1,297,336

)

(Decrease)/increase in cash and cash equivalents

(203,119

)

681,103

Cash and cash equivalents at beginning of year

2

3,117,467

2,436,364

Cash and cash equivalents at end of year

2

2,914,348

3,117,467

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

2025

2024

£

£

Profit before taxation

1,112,100

696,351

Depreciation charges

59,962

64,236

Finance costs

169,345

115,634

Finance income

(31,802

)

(31,335

)

1,309,605

844,886

(Increase)/decrease in stocks

(74,498

)

47,032

Increase in trade and other debtors

(295,109

)

(470,494

)

(Decrease)/increase in trade and other creditors

(523,651

)

969,454

Cash generated from operations

416,347

1,390,878

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 31st March 2025

31.3.25

1.4.24

£

£

Cash and cash equivalents

2,914,348

3,117,467

Year ended 31st March 2024

31.3.24

1.4.23

£

£

Cash and cash equivalents

3,117,467

2,436,364

3.	ANALYSIS OF CHANGES IN NET FUNDS

Other

non-cash

At 1.4.24

Cash flow

changes

At 31.3.25

£

£

£

£

Net cash

Cash at bank

and in hand

3,117,467

(203,119

)

2,914,348

3,117,467

(203,119

)

2,914,348

Debt

Finance leases

-

(147,500

)

(737,500

)

(885,000

)

Debts falling due

within 1 year

(342,708

)

56,399

-

(286,309

)

Debts falling due

after 1 year

(452,002

)

36,578

-

(415,424

)

(794,710

)

(54,523

)

(737,500

)

(1,586,733

)

Total

2,322,757

(257,642

)

(737,500

)

1,327,615

1.	STATUTORY INFORMATION

Duval Investments 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 functional and presentation currency of Duval Investments Limited is considered to be pound sterling (£) because that is the currency of the primary economic environment in with the company operates. the financial statements have been prepared using round pounds only.

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.

Basis of consolidation

The group financial statements consolidate the financial statements of Duval Investments Limited and its subsidiary undertaking. The acquisition method of accounting has been adopted. Under this method the results of subsidiary undertakings acquired in the period are included in the consolidated profit and loss account from the date of acquisition.

Significant judgements and estimates

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported tor assets and liabilities as at the balance sheet date and the amounts reported for turnover and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.

(i) Valuation of long term contracts

The directors undertake a review, on a contract-by-contract basis, by reference to the stage of completion when the stage of completion, cost incurred and cost to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. When the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

The directors determine the need for provisions against ongoing long term contracts by reference to the stage of completeness of the contract and the expected future costs to complete the contract, assessed on a contract-by-contract basis.

(ii) Useful economic lives of tangible assets

The annual amortisation and depreciation charges for intangible and tangible fixed assets is sensitive to changes in the estimated useful lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.

(iii) Stock provisions

In determining the need for the impairment of stock the directors have made significant judgements as to the saleability of the stock that is being held in the company, together with the costs to complete and make that sale.

(iv) Impairment of debtors

The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the age ink profile of debtors and historical experience.

Turnover

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

Revenue from contracts for the provision of services is recognised by reference to the stage of completion when the stage of completion, cost incurred and cost to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials , as a proportion of total costs. When the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

Full provision is made for losses on all contracts in the year in which the loss is first foreseen.

Goodwill

Consolidated goodwill is being amortised evenly over its estimated useful life of 5 years.

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 twenty years.

Included within patents and licences are the costs related to the licences of the Dual Mist System which are being amortised over 25 years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Leasehold improvements

-

over 4 years and over 10 years

Office equipment

-

25% on cost

Plant & Machinery

-

25% on cost

Computer equipment

-

25% on cost

Fixed assets are initially recorded at cost.

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Financial instruments

The company and group have chosen to adopt the Sections 11 and 12 of FRS 102 in respect of financial instruments.

Financial assets

Basic financial assets, including trade and other debtors and cash and bank balances are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

The company and group have no 'Other financial assets'.

Financial assets are derecognised when (a) the contractual rights to the cashflow from the asset expire or are settled or (b) substantially all the risks and rewards of ownership of the asset are transferred to another party or (c) control ot the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

Financial liabilities

Basic financial liabilities, including trade and other creditors and hire purchase contracts, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, here the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

The company and group have no 'Other financial liabilities'.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.