REGISTERED NUMBER: SC580942 (Scotland)

Group Strategic Report,

Report of the Directors and

Audited Consolidated Financial Statements

for the Period 1 April 2024 to 30 March 2025

for

Brownings the Bakers (Holdings) Ltd

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Statement of Comprehensive Income

10

Consolidated Balance Sheet

11

Company Balance Sheet

12

Consolidated Statement of Changes in Equity

13

Company Statement of Changes in Equity

14

Consolidated Cash Flow Statement

15

Notes to the Consolidated Cash Flow Statement

16

Notes to the Consolidated Financial Statements

18

DIRECTORS:

Mr J H W Gall

Mr M J W Short

REGISTERED OFFICE:

Block 1

Bonnyton Industrial Estate

Kilmarnock

KA1 2NP

REGISTERED NUMBER:

SC580942 (Scotland)

INDEPENDENT AUDITORS:

Gillespie & Anderson

Statutory Auditors

Chartered Accountants

147 Bath Street

Glasgow

G2 4SN

The directors present their strategic report of the company and the group for the period 1 April 2024 to 30 March 2025.

REVIEW OF BUSINESS

The directors are pleased to report a pre-tax profit of £823,665 (2024 - £577,291) which is an improvement from that achieved in the previous year. Turnover increased from £13,946,000 in 2024 to £14,530,144 in 2025 reflecting the ever increasing demand for its products.

Many of the challenges as outlined in last years report continued into 2025, with the sector suffering increases in raw ingredient costs, utility costs and overheads generally. Since the year end there has been the further challenge of wage cost increase due to the increase in the minimum national and living wage as well as the increase in national insurance.

Despite all of the above the group considers it is well established in the market place and well placed to take advantage of opportunities which it believes will come its way now and in the future.

Key Performance Indicators

The principal key performance indicators are turnover levels, gross margin achieved and a strict control of overheads. In addition like all businesses the control of cash is vital to ensure that sufficient resources are available to meet commitments as they fall due as well as have resources to invest in the ever increasing demand for new equipment.

Every effort is made to ensure that turnover does not increase to the detriment of net profitability as this is seen as a key performance indicator and a danger that the board wishes to avoid at all costs.

Key Performance Indicators

2025

2024

Sales

£14,530,144

£13,946,000

Gross margin %

28.1%

27.2%

Administrative expenses

£2,725,538

£2,567,060

Total assets

£5,880,267

£5,458,415

PRINCIPAL RISKS AND UNCERTAINTIES

Like all businesses operating in this sector the key business risks are similar to include the recruitment and retention of good quality staff, the retention of customers through the provision of quality products and service delivery . The volatile nature of raw ingredient prices to include more recently meat prices and utility costs are other risks which require to be managed.

The business operates in the food supply market and as such requires to follow and adhere with food and, health and safety best practices. BRC Grade AA+ has been retained following its recent annual audit.

The directors recognize and welcome the ongoing support of its customer base who often require to bear the burden of the increased costs referred to above.

EMPLOYEES

The success of the group is dependent on a number of factors not least of which is the engagement and input of its employees. The business regards itself as a responsible employer. With this in mind every attempt is made to recruit, develop, motivate and retain the best talent wherever possible. The directors recognize the need to engage people to perform at their best on a consistent basis and with a clear purpose. This is achieved by an ever improving system of regular assessment and the identification of training needs.

As the business grows there is the need to bring in new talent with new ideas and skills and this is being achieved.

COMMUNICATION AND PROMOTING SUCCESS

The directors are aware of the boards responsibilities under the Companies Act to act in good faith and in a manner that is likely to promote the success of the group for the benefit of all involved. One aspect of achieving this is to engage with all relevant parties, regularly discussing issues with employees, customers, community, environment, health and safety and others informing all in the decision making process.

STRUCTURE AND SUCCESSION PLANNING

Brownings the Bakers Ltd is a wholly owned subsidiary of Brownings the Bakers (Holdings) Ltd. The group is privately owned under the control of John Gall and Matthew Short. The business is a 4th generation one having been in operation since 1945.

It is hoped that the business under its current structure will continue well into the future and in this respect regular reviews are undertaken to plan for and deal with succession matters.

COMMUNITY AND ENVIRONMENT

As one of the largest employers in the area the directors are aware of the need to implement good corporate social responsibility and this is achieved through a number of initiatives to include the use wherever possible of local contractors, the provision of support to local charities and the participation in a whole number of local events.

Both in terms of cost saving and efficiencies the business regularly evaluates energy consumption and its use. This is vital bearing in mind the current cost of fuel and power supplies. This involves managing waste products and the investment in energy saving equipment. The directors recognize the support of grants from Zero Waste Scotland, The Carbon Trust and others in this regard.

ON BEHALF OF THE BOARD:

Mr J H W Gall - Director

24 December 2025

The directors present their report with the financial statements of the company and the group for the period 1 April 2024 to 30 March 2025.

PRINCIPAL ACTIVITY

The principal activity of the group in the period under review was that of the manufacture, retail and wholesale of bakery and associated food products.

DIVIDENDS

Ordinary dividends were paid during the year of £313,522 (2024: £274,576). The directors do not recommend the payment of a further dividend.

RESEARCH AND DEVELOPMENT

As a manufacturing business operating in an ever changing market place with the need for new product development and enhancement the business is heavily engaged in research and development. This involves the input of the company's food technical staff who provide valuable input in new technological advances. This includes not only new products but the reduction of salt and sugar levels in existing products to meet the ever increasing demands of the market place.

FUTURE DEVELOPMENTS

The directors anticipate the business environment will remain competitive. They believe that the company is in a good financial position and that the risks that have been identified are being well managed. With careful focus on efficiencies, development of products, as well as continuing to review the state of the market and the activities of competitors, the directors are confident in the company's ability to maintain and build on this position.

DIRECTORS

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

Mr J H W Gall

Mr M J W Short

FINANCIAL INSTRUMENTS

The business is financed in a number of different ways to include an invoice factoring facility, a small bank overdraft as required from time to time, an ever decreasing reliance on bank loans and hire purchase or similar financial leases.

Strict budgetary controls are in place to monitor performance on a weekly and monthly basis. This includes future financial projections to ensure highs and lows are known, leaving sufficient resources to meet commitments as they fall due.

DIRECTORS' INDEMNITIES

The group has granted an indemnity to one or more of its directors against liability in respect of proceedings brought by third parties, subject to the conditions set out in the Companies Act 2006. Such qualifying third party indemnity provision remains in force as at the date of approving the Directors' 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), 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 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, Gillespie & Anderson, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr J H W Gall - Director

24 December 2025

Opinion

We have audited the financial statements of Brownings the Bakers (Holdings) Ltd (the 'parent company') and its subsidiaries (the 'group') for the period ended 30 March 2025 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 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 30 March 2025 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

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 pages four and five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditors' responsibilities for the audit of the financial statements

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

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

Our approach and assessment were as follows:

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

Enquire of management and review supporting documentation concerning the company's policies and procedures relating to:

- identify, evaluate and comply with laws and regulations and their awareness of any instances of non-compliance;

- detect and respond to the risks of irregularities, fraud and their knowledge of any actual, suspected or alleged fraud;

- internal controls established to mitigate risks related to, unusual items, fraud or non-compliance with laws and regulations.

Obtain an understanding of the legal and regulatory framework that the company operates in, focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations of the company. The key laws and regulations we considered in this context included the Companies Act 2006 and Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland", together with health and safety regulations, food standards regulations, money laundering regulations, employment legislation and data protection legislation.

Discuss among the engagement team how and where irregularities might occur in the financial statements and potential indicators of fraud. Identify potential audit risks in relation to income recognition, authorisation of expenses and possible management override of controls.

Communicate relevant identified laws and regulations and potential irregularity risks to all engagement team members and remain alert to any indications of unusual items, fraud or non-compliance with laws and regulations throughout the audit.

Review all Minutes of Meetings of those charged with governance, Reports and correspondence with HMRC and legal advisers.

Perform audit testing which covers the audit assumptions of: existence, completeness, rights and obligations, accuracy and valuation in respect of income recognition and expenditure incurred.

Evaluate the overall presentation, structure and content of the financial statements, including disclosures, by performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to an irregularity or fraud. Agree financial statement disclosures to underlying documents.

Assess whether the financial statements represent the underlying transactions and events in a manner that achieves compliance with relevant laws and regulations.

To address the risk of fraud through management override of controls and management bias, we: assess the rationale behind significant or unusual transactions identified through audit testing and assess where management judgement used in determining accounting estimates were indicative of potential bias.

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.

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.

Alastair Stewart BA (Hons) CA (Senior Statutory Auditor)

for and on behalf of Gillespie & Anderson

Statutory Auditors

Chartered Accountants

147 Bath Street

Glasgow

G2 4SN

24 December 2025

TURNOVER

3

14,530,144

13,946,000

Cost of sales

10,451,946

10,151,486

GROSS PROFIT

4,078,198

3,794,514

Distribution costs

541,395

651,884

Administrative expenses

2,725,538

2,567,060

3,266,933

3,218,944

811,265

575,570

Other operating income

37,908

37,903

OPERATING PROFIT

5

849,173

613,473

Interest receivable and similar income

287

-

849,460

613,473

Interest payable and similar expenses

7

25,795

36,182

PROFIT BEFORE TAXATION

823,665

577,291

Tax on profit

8

108,128

118,340

PROFIT FOR THE FINANCIAL PERIOD

715,537

458,951

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

715,537

458,951

Profit attributable to:

Owners of the parent

715,537

458,951

Total comprehensive income attributable to:

Owners of the parent

715,537

458,951

FIXED ASSETS

Tangible assets

11

3,039,052

3,030,275

Investments

12

-

-

Investment property

13

175,000

175,000

3,214,052

3,205,275

CURRENT ASSETS

Stocks

14

264,270

260,710

Debtors: amounts falling due within one year

15

1,980,255

1,796,878

Cash at bank and in hand

421,690

195,552

2,666,215

2,253,140

CREDITORS

Amounts falling due within one year

16

2,463,168

2,391,766

NET CURRENT ASSETS/(LIABILITIES)

203,047

(138,626

)

TOTAL ASSETS LESS CURRENT LIABILITIES

3,417,099

3,066,649

CREDITORS

Amounts falling due after more than one year

17

(81,245

)

(124,500

)

PROVISIONS FOR LIABILITIES

21

(393,337

)

(363,739

)

ACCRUALS AND DEFERRED INCOME

22

(467,009

)

(504,917

)

NET ASSETS

2,475,508

2,073,493

CAPITAL AND RESERVES

Called up share capital

23

8,896

8,896

Share premium

24

52,419

52,419

Retained earnings

24

2,414,193

2,012,178

SHAREHOLDERS' FUNDS

2,475,508

2,073,493

The financial statements were approved by the Board of Directors and authorised for issue on 24 December 2025 and were signed on its behalf by:

Mr J H W Gall - Director

FIXED ASSETS

Tangible assets

11

-

-

Investments

12

7,896

7,896

Investment property

13

175,000

175,000

182,896

182,896

CURRENT ASSETS

Debtors: amounts falling due within one year

15

555,376

485,881

Cash at bank and in hand

198,573

2,129

753,949

488,010

CREDITORS

Amounts falling due within one year

16

98,615

60,417

NET CURRENT ASSETS

655,334

427,593

TOTAL ASSETS LESS CURRENT LIABILITIES

838,230

610,489

CREDITORS

Amounts falling due after more than one year

17

-

57,912

NET ASSETS

838,230

552,577

CAPITAL AND RESERVES

Called up share capital

23

8,896

8,896

Retained earnings

24

829,334

543,681

SHAREHOLDERS' FUNDS

838,230

552,577

Company's profit for the financial year

599,175

362,191

The financial statements were approved by the Board of Directors and authorised for issue on 24 December 2025 and were signed on its behalf by:

Mr J H W Gall - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 April 2023

8,896

1,827,803

52,419

1,889,118

Changes in equity

Dividends

-

(274,576

)

-

(274,576

)

Total comprehensive income

-

458,951

-

458,951

Balance at 31 March 2024

8,896

2,012,178

52,419

2,073,493

Changes in equity

Dividends

-

(313,522

)

-

(313,522

)

Total comprehensive income

-

715,537

-

715,537

Balance at 30 March 2025

8,896

2,414,193

52,419

2,475,508

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2023

8,896

456,066

464,962

Changes in equity

Dividends

-

(274,576

)

(274,576

)

Total comprehensive income

-

362,191

362,191

Balance at 31 March 2024

8,896

543,681

552,577

Changes in equity

Dividends

-

(313,522

)

(313,522

)

Total comprehensive income

-

599,175

599,175

Balance at 30 March 2025

8,896

829,334

838,230

Cash flows from operating activities

Cash generated from operations

1

1,390,493

1,233,072

Interest paid

(15,468

)

(27,932

)

Interest element of hire purchase payments paid

(10,327

)

(8,250

)

Government grants

-

37,903

Tax paid

(79,484

)

(51

)

Net cash from operating activities

1,285,214

1,234,742

Cash flows from investing activities

Purchase of tangible fixed assets

(237,938

)

(234,531

)

Sale of tangible fixed assets

-

500

Interest received

287

-

Net cash from investing activities

(237,651

)

(234,031

)

Cash flows from financing activities

Loan repayments in year

(150,002

)

(166,278

)

Hire purchase payments in year

(160,464

)

(99,678

)

Amount introduced by directors

281,929

240,574

Amount withdrawn by directors

(250,783

)

(289,020

)

Equity dividends paid

(313,522

)

(274,576

)

Net cash from financing activities

(592,842

)

(588,978

)

Increase in cash and cash equivalents

454,721

411,733

Cash and cash equivalents at beginning of period

2

(366,350

)

(778,083

)

Cash and cash equivalents at end of period

2

88,371

(366,350

)

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

Period

1.4.24

to

Year Ended

30.3.25

31.3.24

£

£

Profit before taxation

823,665

577,291

Depreciation charges

428,849

435,022

Loss on disposal of fixed assets

-

7,920

Government grants

(37,908

)

(37,903

)

Finance costs

25,795

36,182

Finance income

(287

)

-

1,240,114

1,018,512

(Increase)/decrease in stocks

(3,560

)

17,434

(Increase)/decrease in trade and other debtors

(214,523

)

151,883

Increase in trade and other creditors

368,462

45,243

Cash generated from operations

1,390,493

1,233,072

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:

Period ended 30 March 2025

30.3.25

1.4.24

£

£

Cash and cash equivalents

421,690

195,552

Bank overdrafts

(333,319

)

(561,902

)

88,371

(366,350

)

Year ended 31 March 2024

31.3.24

1.4.23

£

£

Cash and cash equivalents

195,552

5,934

Bank overdrafts

(561,902

)

(784,017

)

(366,350

)

(778,083

)

3.	ANALYSIS OF CHANGES IN NET DEBT

Other

non-cash

At 1.4.24

Cash flow

changes

At 30.3.25

£

£

£

£

Net cash

Cash at bank

and in hand

195,552

226,138

421,690

Bank overdrafts

(561,902

)

228,583

(333,319

)

(366,350

)

454,721

88,371

Debt

Finance leases

(133,402

)

160,464

(199,687

)

(172,625

)

Debts falling due

within 1 year

(149,952

)

72,628

-

(77,324

)

Debts falling due

after 1 year

(77,373

)

77,373

-

-

(360,727

)

310,465

(199,687

)

(249,949

)

Total

(727,077

)

765,186

(199,687

)

(161,578

)

1.	STATUTORY INFORMATION

Brownings The Bakers (Holdings) Ltd is a private company, limited by shares, registered in Scotland. The company's registered number is SC580942 and the registered office and principal place of business is at Block 1, Bonnyton Industrial Estate, Kilmarnock, KA1 2NP.

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 as modified by the revaluation of certain assets.

These financial statements include both the separate and consolidated financial statements of Brownings the Bakers (Holdings) Limited.

The financial statements are presented in Pound Sterling (£) which is the functional currency of the group.

Reporting period

The financial year represents the 52 weeks to 30 March 2025 (prior financial year 52 weeks to 31 March 2024).

Going concern

After reviewing the parent company and group's current trading performance and forecasts prepared, the directors have a reasonable expectation that the parent company and group has adequate resources to continue in operational existence for the foreseeable future. The directors therefore continue to adopt the going concern basis in preparing the parent company and group's financial statements.

The group relies on external bank borrowings to finance working capital. These borrowings are subject to review on a yearly basis. The directors have no reason to believe that their current borrowing requirements will not be renewed going forward.

Financial Reporting Standard 102 - reduced disclosure exemptions

The parent company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

- the requirements of Section 7 Statement of Cash Flows;

- the requirement of paragraph 3.17(d);

- the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and

11.48(c);

- the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A;

- the requirement of paragraph 33.7.