REGISTERED NUMBER: 10962580 (England and Wales)

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

UNIPET HOLDINGS LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

5

Consolidated Income Statement

7

Consolidated Other Comprehensive Income

8

Consolidated Balance Sheet

9

Company Balance Sheet

10

Consolidated Statement of Changes in Equity

11

Company Statement of Changes in Equity

12

Consolidated Cash Flow Statement

13

Notes to the Consolidated Cash Flow Statement

14

Notes to the Consolidated Financial Statements

15

DIRECTORS:

A L Ball Esq

L Rouse Esq

REGISTERED OFFICE:

Unit L Trinity Trading Estate

Tribune Drive

Sittingbourne

United Kingdom

ME10 2PG

REGISTERED NUMBER:

10962580 (England and Wales)

AUDITORS:

McCabe Ford Williams

Statutory Auditors and Chartered Accountants

Invicta Business Centre

Monument Way

Orbital Park

Ashford

Kent

TN24 0HB

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

REVIEW OF BUSINESS

The group's principal activity during the year was that of the manufacture, distribution and selling of wild bird food

and a holding company.

The Group appointed Luke Rouse as a director on 1st January 2025 to further strengthen the depth of the management and leadership team.

BUSINESS REVIEW AND KEY FINANCIAL PERFORMANCE INDICATORS

The group's turnover dropped from £14.7m to £12.7m between 2023 and 2024, a fall of some 14% as a result of the loss of a key customer who went into administration at the end of 2023. However, the company's gross margin has risen from 21.42% in 2023 to 25.15% in 2024, a key business indicator reflecting the groups improved trading position. Competition within the market remained aggressive and a number of main competitors continue to sell inferior products at keen prices to deflate the premium market. The group continues to work hard on maintaining strong relationships with its core business partnerships to build better business opportunities.

Commodity prices were more consistent in 2024 and the volatility seen in 2022 into 2023 seems to have passed although global political and environmental factors can threaten to create uncertainty within the markets, a challenge which is common across the globe.

Limited price increases were negotiated as a result of market pressures and a need to retain key accounts. Margins have not improved in 2025. As a result, the need to continue to review and manage administrative costs is crucial. The groups trading company moved premises in December 2024 into a new factory, a move which sets the business in good stead for the next phase of its development. There were, as expected, numerous challenges to overcome because of the move but the business overcame them with the least disruption possible.

Delays in production caused by the move have been rectified but have impacted the figures for 2025.

The group made a small net operating loss of £23k in 2024 compared to a net operating profit of £437k in 2023. It is important to note that this loss is stated after £280,000 of dilapidation costs relating to the property move. If adjusted for this exceptional expense the group would have reported a profit before tax of £143k for the year.

Although disappointed with the drop in turnover and the loss the management team are pleased with the positive developments made by the business. The group have invested in infrastructure into 2025 to try to drive sales, improve product portfolio and expand its customer base. In addition the operations team continue to evolve the production process within the new and existing buildings to try to improve margins through production efficiencies and compositions. The business will continue to monitor margins and will make strategic business decisions based on the ongoing business performance.

2024

2023

Change

Turnover

£12,685,854

£14,754,213

-14.00%

Gross profit %

25.15%

21.42%

+3.73%

Operating (loss)/profit

(£23,091

)

£437,348

-105.30%

Current ratio

0.80

0.77

+0.03

The operating (loss)/profit is after the deduction for goodwill amortisation of £664,348, (2023 - £664,348).

PRINCIPAL RISKS AND UNCERTAINTIES

The director and management have not identified any specific risks facing the group although there are general business risks that they are aware of. These principal risks and uncertainties facing the group are broadly grouped as; operational, financial, credit and interest and going concern risk.

Operational Risks

The trading company operates in a global market where commodities can be impacted by global market forces and trading influences with the business exposed to volatility in prices as a result of these influences as well as exposure to a shortage of key products. These exposures can impact turnover and the profit margins achieved by the trading company which in turn can impact cash flow, debt serviceability and general key business performance indicators. The group has established a risk and financial management process whose primary objective is to manage the group through events that hinder the achievement of the group's performance objectives.

Financial, Credit and Interest Risks

The group relies on its trading subsidiary to generate cash to enable the holding company to fulfil its commitments. The holding company ensures that the primary focus of the trading company is to generate the profits and cash in order to meet that function through its shared directorship and management and the day to day involvement of those parties.

The trading subsidiary is exposed to interest risk on any borrowing which is at a variable rate. The policy is to actively manage this exposure by having borrowings of cash and cash equivalents as low as possible.

Going Concern

The directors, and their management team identified several factors which negatively impacted the performance of Unipet International Ltd in 2024 and continued to impact 2025 as shown by the management accounts for the period to 30 September 2025. New staffing appointments made in the last few months of 2024 have recently been reviewed and changes implemented where these appointments have not proved to be cost effective. Cost reductions are shown by the budgets and forecasts prepared for the year ending 31 December 2026. Customer price increases have also been communicated to be effective from 1 January 2026. The group continues to adapt and evolve to meet the needs of its trading company, their customers and the market. The directors remain confident that the company has the necessary experience, resources and funding to continue to build on its 30-year trading history and to meet all its challenges head on. To this end the directors believe that no material uncertainty exists regarding going concern.

ON BEHALF OF THE BOARD:

A L Ball Esq - Director

22 December 2025

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

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of the manufacture, distribution and selling of wild bird food products.

DIVIDENDS

The total distribution of dividends for the year ended 31 December 2024 was £465,000 (2023: £320,000).

DIRECTOR

A L Ball Esq held office during the whole of the period from 1 January 2024 to the date of this report.

Other changes in directors holding office are as follows:

L Rouse Esq was appointed as a director after 31 December 2024 but prior to the date of this report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

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

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, McCabe Ford Williams, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

A L Ball Esq - Director

22 December 2025

Opinion

We have audited the financial statements of Unipet Holdings 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 loss for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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:

We gained an understanding of the laws and regulations applicable to the group and parent company and the industry in which they operate, and considered the risks of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

We focussed on laws and regulations which could give rise to a material misstatement in the financial statements including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests include agreeing the financial statement disclosures to underlying supporting documentation, reviewing minutes of meetings and enquiries with management.

There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also assessed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the director that represented a risk of material misstatement due to fraud.

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.

B W Wright (Senior Statutory Auditor)

for and on behalf of McCabe Ford Williams

Statutory Auditors and Chartered Accountants

Invicta Business Centre

Monument Way

Orbital Park

Ashford

Kent

TN24 0HB

23 December 2025

TURNOVER

4

12,685,854

14,754,213

Cost of sales

9,495,467

11,593,353

GROSS PROFIT

3,190,387

3,160,860

Administrative expenses

3,213,478

2,723,512

OPERATING (LOSS)/PROFIT

6

(23,091

)

437,348

Interest receivable and similar income

1,597

811

(21,494

)

438,159

Interest payable and similar expenses

7

115,525

132,918

(LOSS)/PROFIT BEFORE TAXATION

(137,019

)

305,241

Tax on (loss)/profit

8

113,980

227,846

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(250,999

)

77,395

(Loss)/profit attributable to:

Owners of the parent

(250,999

)

77,395

(LOSS)/PROFIT FOR THE YEAR

(250,999

)

77,395

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(250,999

)

77,395

Total comprehensive income attributable to:

Owners of the parent

(250,999

)

77,395

FIXED ASSETS

Intangible assets

11

2,689,977

3,354,415

Tangible assets

12

1,091,598

1,165,190

Investments

13

-

-

3,781,575

4,519,605

CURRENT ASSETS

Stocks

14

656,787

616,227

Debtors

15

1,834,018

1,409,271

Cash at bank and in hand

278,675

35

2,769,480

2,025,533

CREDITORS

Amounts falling due within one year

16

3,459,837

2,628,278

NET CURRENT LIABILITIES

(690,357

)

(602,745

)

TOTAL ASSETS LESS CURRENT LIABILITIES

3,091,218

3,916,860

CREDITORS

Amounts falling due after more than one year

17

(16,945

)

(112,325

)

PROVISIONS FOR LIABILITIES

21

(222,729

)

(236,992

)

NET ASSETS

2,851,544

3,567,543

CAPITAL AND RESERVES

Called up share capital

22

1,000

1,000

Share premium

23

3,699,001

3,699,001

Retained earnings

23

(848,457

)

(132,458

)

SHAREHOLDERS' FUNDS

2,851,544

3,567,543

The financial statements were approved by the Board of Directors and authorised for issue on 22 December 2025 and were signed on its behalf by:

A L Ball Esq - Director

L Rouse Esq - Director

FIXED ASSETS

Intangible assets

11

-

-

Tangible assets

12

-

-

Investments

13

7,332,438

7,332,438

7,332,438

7,332,438

CURRENT ASSETS

Cash at bank

790

14,038

CREDITORS

Amounts falling due within one year

16

473,852

298,542

NET CURRENT LIABILITIES

(473,062

)

(284,504

)

TOTAL ASSETS LESS CURRENT LIABILITIES

6,859,376

7,047,934

CAPITAL AND RESERVES

Called up share capital

22

1,000

1,000

Share premium

23

3,699,001

3,699,001

Retained earnings

23

3,159,375

3,347,933

SHAREHOLDERS' FUNDS

6,859,376

7,047,934

Company's profit for the financial year

276,442

527,044

The financial statements were approved by the Board of Directors and authorised for issue on 22 December 2025 and were signed on its behalf by:

A L Ball Esq - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 January 2023

1,000

110,147

3,699,001

3,810,148

Changes in equity

Dividends

-

(320,000

)

-

(320,000

)

Total comprehensive income

-

77,395

-

77,395

Balance at 31 December 2023

1,000

(132,458

)

3,699,001

3,567,543

Changes in equity

Dividends

-

(465,000

)

-

(465,000

)

Total comprehensive income

-

(250,999

)

-

(250,999

)

Balance at 31 December 2024

1,000

(848,457

)

3,699,001

2,851,544

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 January 2023

1,000

3,140,889

3,699,001

6,840,890

Changes in equity

Dividends

-

(320,000

)

-

(320,000

)

Total comprehensive income

-

527,044

-

527,044

Balance at 31 December 2023

1,000

3,347,933

3,699,001

7,047,934

Changes in equity

Dividends

-

(465,000

)

-

(465,000

)

Total comprehensive income

-

276,442

-

276,442

Balance at 31 December 2024

1,000

3,159,375

3,699,001

6,859,376

Cash flows from operating activities

Cash generated from operations

1

1,038,343

1,190,186

Interest paid

(106,935

)

(120,200

)

Interest element of hire purchase payments paid

(8,590

)

(12,718

)

Tax paid

(205,067

)

(148,486

)

Net cash from operating activities

717,751

908,782

Cash flows from investing activities

Purchase of tangible fixed assets

(235,360

)

(146,247

)

Sale of tangible fixed assets

30,001

9,500

Interest received

1,597

811

Net cash from investing activities

(203,762

)

(135,936

)

Cash flows from financing activities

New loans in year

500,000

-

Capital repayments in year

(108,423

)

(154,407

)

Equity dividends paid

(465,000

)

(320,000

)

Net cash from financing activities

(73,423

)

(474,407

)

Increase in cash and cash equivalents

440,566

298,439

Cash and cash equivalents at beginning of year

2

(161,891

)

(460,330

)

Cash and cash equivalents at end of year

2

278,675

(161,891

)

1.	RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024

2023

£

£

(Loss)/profit before taxation

(137,019

)

305,241

Depreciation charges

918,768

937,704

Loss/(profit) on disposal of fixed assets

24,621

(3,900

)

Finance costs

115,525

132,918

Finance income

(1,597

)

(811

)

920,298

1,371,152

(Increase)/decrease in stocks

(40,560

)

162,283

(Increase)/decrease in trade and other debtors

(424,747

)

42,021

Increase/(decrease) in trade and other creditors

583,352

(385,270

)

Cash generated from operations

1,038,343

1,190,186

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

278,675

35

Bank overdrafts

-

(161,926

)

278,675

(161,891

)

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

35

115

Bank overdrafts

(161,926

)

(460,445

)

(161,891

)

(460,330

)

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

35

278,640

278,675

Bank overdrafts

(161,926

)

161,926

-

(161,891

)

440,566

278,675

Debt

Finance leases

(151,462

)

81,763

(69,699

)

Debts falling due within 1 year

-

(500,000

)

(500,000

)

(151,462

)

(418,237

)

(569,699

)

Total

(313,353

)

22,329

(291,024

)

1.	STATUTORY INFORMATION

Unipet Holdings 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.	STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

Going concern

At the balance sheet date current liabilities exceeded current assets.

As noted in the Strategic Report, the directors and their management team identified several factors which negatively impacted the performance of Unipet International Limited during the latter part of 2024 and into 2025. The factory and office move in December 2024 had a greater impact than was foreseen with additional downtime and production issues which carried on into the first half of 2025. In addition the subsidiary was hindered by the shortage of a key product during 2025.

Changes implemented during the last quarter of 2025, including staffing, product range, pricing and manufacturing performance should result in a return to the financial levels expected, as shown by the budgets and projections for the year ending 31 December 2026.

Bank funding has recently been secured on the basis of these projections.

Based upon these financial statements and the budgets and forecasts prepared through to 31 December 2026, aided by the bank funding, including the invoice finance facility plus the financial support and experience of the directors in this industry, no material uncertainty exists regarding going concern and it is therefore considered appropriate to prepare these financial statements on a going concern basis.

Basis of consolidation

The consolidated financial statements present the results of the company and its subsidiary ("the Group") as if they form a single entity. Intercompany transactions and balances between the group companies are therefore eliminated in full.

The consolidated financial statements incorporate the results of 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.

Critical accounting judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. These include;

- Depreciation and residual values

As detailed under the tangible fixed assets policy, the assets residual values, useful lives and depreciation methods are reviewed, and adjusted accordingly if appropriate or if there is an indication of a significant change since the last reporting date.

- Stock valuation

Included within the finished goods stock valuation is a calculated value of attributable overhead.

This calculation is reviewed each year and relates to a proportion of certain fixed and variable production overhead. The labour element of the stock valuation is calculated based on machine speeds and man hours.

- Bad debts

These are provided on the basis of specific amounts that in the opinion of the director will not be recovered.

Balances under the invoice finance agreement are covered, with the company's exposure limited to £500 or £1,000 depending on who the customer is.

Turnover

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

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer's interest in the fair value of the group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and impairment losses. Goodwill is amortised on a straight-line basis to the consolidated statement of comprehensive income over its useful economic life of 10 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.

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.

Improvements to property

-

over the term of the lease

Plant and machinery

-

20% on reducing balance

Fixtures and fittings

-

33% on a straight line basis

Motor vehicles

-

25% on reducing balance

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.

The asset residual values, useful lives and depreciation methods are reviewed and adjusted accordingly if appropriate, or 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 the statement of comprehensive income.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Cost includes all direct expenditure, and an appropriate proportion of fixed and variable production overheads in respect of finished goods.

Financial instruments

The group only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors, and other third parties and loans from related parties.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the statement of income and retained earnings.

For financial assets measured at amortised cost, the impairment is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability outstanding.

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.