REGISTERED NUMBER: 00644141 (England and Wales)

Pitkin & Ruddock Limited

Group Strategic Report,

Report of the Directors and

Consolidated Financial Statements

For The Year Ended

31st December 2024

Page

Company Information

1

Group Strategic Report

2

to

3

Report of the Directors

4

Report of the Independent Auditors

5

to

6

Consolidated Statement of Comprehensive Income

7

Consolidated Balance Sheet

8

Company Balance Sheet

9

Consolidated Statement of Changes in Equity

10

Company Statement of Changes in Equity

11

Consolidated Cash Flow Statement

12

Notes to the Consolidated Cash Flow Statement

13

Notes to the Consolidated Financial Statements

14

to

24

DIRECTORS:

Mrs S Ashford

D W Clackett

D Nunn

Mrs A W Ruddock

M J Cole

SECRETARY:

Mrs A W Ruddock

REGISTERED OFFICE:

Unit 1 Capital Estate

Whapload Road

Lowestoft

Suffolk

NR32 1TY

REGISTERED NUMBER:

00644141 (England and Wales)

AUDITORS:

TC Group

10 Stadium Business Court

Millennium way

Pride Park

Derby

DE24 8HP.

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

The business was established in 1954 by 2 friends, Pat Pitkin and Derrick Ruddock, and was incorporated 5 years later. Now in its third generation of the Ruddock family, the company has grown significantly and is one of East Anglia's leading Refrigeration and Air Conditioning companies that has over 65 years of experience; delivering complete temperature-controlled solutions, service and planned maintenance. The company is based in East Anglia with over 90 employees serving customers throughout the UK from 4 key locations; Bury St Edmunds, Ipswich, Bishop's Stortford and Lowestoft.

The company's success has derived from ensuring people are at the heart of our decision making, they are our most important asset. Ambitious and challenging thinking whilst taking personal ownership to ensure our customers are served to the best of our capabilities; this is achieved by:

- investing in our employees to allow us to meet the challenges of an ever-changing world of technical and regulatory climate.

- establishing innovative and long-term supplier relationships.

- family friendly company ethos that has a dynamic and agile culture to ensure all our customers feel valued and supported. Our employees are specialists; their expert knowledge and insight help us better understand our customer needs so we can serve them better.

We support customers across a range of sectors, from hospitality to office, commercial and industrial environments, including the following specialist sectors; data centres, brewery refrigeration, sports and fitness venues, education, healthcare and veterinary practices as well as the marine sector. No matter the size of the customer or project, the same high standards of refrigeration and air conditioning engineering are consistently upheld, and the friendly personal attention of enthusiastic staff never varies.

REVIEW OF BUSINESS

The statement of comprehensive income discloses the full results.

The key financial performance indicators are noted below; these are used by the directors to monitor the progress of the company's performance. As such, the challenges within the UK economy in 2024 were monitored and tracked; this encouraged the company to flex its operating model to ensure revenue and gross margin were ahead of the previous year.

2024

2023

£m

£m

Revenue

10.3

10.1

Gross Profit

3.9

3.6

Gross Margin (%)

38.2%

36.0%

Operating Profit

0.9

1.1

Debtor days

79.1

80.0

The reduction in overall profit in the year reflects the business investing in employees and system infrastructure; the company recognises that future growth and success is through our employees and having a robust operating platform to serve our customers and suppliers.

Each of our four operating branches performed well in 2024 and has clear future growth opportunities ahead. This is achieved by the way we build and maintain relationships with colleagues, customers and suppliers; this is an important source of value and what makes our company distinct. Our long-term relationships with suppliers and customers ensure we have a deep understanding of their interests and needs; our engagement is continuous and alongside our family orientated culture gives each of our employees the opportunity to perform to the best of their capabilities and solidifies good relationships.

PRINCIPAL RISKS AND UNCERTAINTIES

The more clearly we understand risk the better position we put ourselves in in terms of making well informed decisions that move the company forward. Risk management allows the company to pursue its growth strategy with a full and balanced picture of potential impacts rather than putting a brake on decision making.

Economic Instability

The UK economy has faced large disturbances since 2019; the COVID pandemic caused huge economic disruptions, and energy prices surged following Russia's full-scale invasion of Ukraine in 2022. High inflation rates coupled with increased interest rates have influenced weak productivity growth within the UK economy. Demand for our products and services could be impacted by the general economic instability.

The macro-economic environment is discussed by the directors. The company has a diverse revenue portfolio that provides us with resilience to navigate through specific downturns. We have good visibility of revenues and our annual maintenance portfolio supports the fluctuations in installation revenue. In addition, our strong balance sheet gives the company confidence that it can withstand any unexpected shocks.

Reliance on key partnerships

We work with a range of business partnerships and if a significant service provision were disrupted or failed it could affect the delivery of normal business activity.

All critical partnerships are actively monitored, and we have diversified any key relations, so we are not dependent upon any one customer or supplier. In addition, our strong liquidity ensures we are not reliant upon external funding.

Technology failure

Technology underpins our business operations. A prolonged loss of critical systems and networks could disrupt the delivery of our products and services, impacting revenues, customer experience and our reputation.

Our group strategy is to deploy cloud computing-based services by 2025, this will build resilience and the capacity to scale. Risk of downtime is mitigated by outsourcing our IT to technology specialists and we can work remotely if one of our branches were affected by a technology outage.

Cyber threats

Cyber threats are evolving and attacks are increasing. A cyber breach or loss could create losses for our stakeholders, affect our reputation and disrupt the business.

We protect our data robustly and have a layered defence approach to protect the confidentiality, availability and integrity of our key systems.

Inability to attract and retain key talent

Our employees are crucial to serving our customers; the loss of key talent in critical functions and inadequate succession planning for senior managers could affect our growth and business success.

We put considerable time and investment into creating an engaging, inclusive and rewarding work environment. We incentivise key talent alongside establishing short and long term succession plans. We invest in developing talent from within, and review career opportunity programs alongside benefit programs.

Health and safety incidents

We want our workplace to be safe and secure environments for everyone. Incidents or mismanagement of this risk which could injure our employees, customers or the general public, could affect our reputation, and lead to fines and claims for damages.

We focus on preventing incidents by establishing good health and safety operating standards, and building awareness and personal accountability into our culture. We have a dedicated health and safety team that have documented standards and frameworks that are embedded into everyday work. We assess and audit compliance, and monitor any actions that are required.

ON BEHALF OF THE BOARD:

Mrs S Ashford - Director

8th January 2026

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

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of installation and repair of industrial equipment.

DIVIDENDS

The total distribution of dividends for the year ended 31st December 2024 will be £ 121,299 .

EVENTS SINCE THE END OF THE YEAR

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

DIRECTORS

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

Mrs S Ashford

D W Clackett

D Nunn

Mrs A W Ruddock

Other changes in directors holding office are as follows:

M J Cole was appointed as a director after 31st 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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, TC Group, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mrs S Ashford - Director

8th January 2026

Opinion

We have audited the financial statements of Pitkin & Ruddock Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31st December 2024 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the 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 December 2024 and of the group's profit for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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.

The comparative figures were not audited due to audit exemption.

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 have performed our own assessment of the susceptibility of the financial statements to material misstatement, including how fraud might occur, and concentrated our audit work in these areas in order to detect any material misstatements which may exist.

We have performed substantive testing of all material year end balances, and also performed substantive testing of a sample of other transactions during the year and of other year end balances.

We have performed preliminary analytical procedures to identify any unusual or unexpected relationships that may indicate an increased risk of material misstatement as a result of fraud.

We have selected a sample of journal entries made in the period for substantive testing, in order to address the risk of fraud due to management override of controls.

We have made enquiries of management of any known instances of non-compliance or suspected non-compliance with laws and regulation.

We performed walk-through tests to ensure that systems operated as documented.

The engagement team was selected to ensure that they collectively had the appropriate competences and capabilities to identify and recognise non-compliance with laws and regulations. We have communicated relevant identified laws and regulations and potential fraud risks to all engagement team members, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

We have tested amounts recorded as owed to and receivable from other group companies and agreed these amounts to the corresponding accounting records of those other group companies.

Our audit did not identify any matters relating to the detection of irregularities including fraud.

However, because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

James Liptrott (Senior Statutory Auditor)

for and on behalf of TC Group

10 Stadium Business Court

Millennium way

Pride Park

Derby

DE24 8HP.

9th January 2026

TURNOVER

3

10,345,381

10,122,614

Cost of sales

6,395,859

6,472,885

GROSS PROFIT

3,949,522

3,649,729

Administrative expenses

3,043,217

2,561,656

906,305

1,088,073

Other operating income

-

474

OPERATING PROFIT

5

906,305

1,088,547

Interest receivable and similar income

11,707

12,074

PROFIT BEFORE TAXATION

918,012

1,100,621

Tax on profit

6

205,321

286,637

PROFIT FOR THE FINANCIAL YEAR

712,691

813,984

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

712,691

813,984

Profit attributable to:

Owners of the parent

712,691

813,984

Total comprehensive income attributable to:

Owners of the parent

712,691

813,984

FIXED ASSETS

Tangible assets

9

2,820,131

2,136,502

Investments

10

-

-

2,820,131

2,136,502

CURRENT ASSETS

Stocks

11

286,888

206,113

Debtors

12

2,192,037

2,296,116

Cash at bank and in hand

1,489,490

804,821

3,968,415

3,307,050

CREDITORS

Amounts falling due within one year

13

1,838,319

1,093,689

NET CURRENT ASSETS

2,130,096

2,213,361

TOTAL ASSETS LESS CURRENT LIABILITIES

4,950,227

4,349,863

PROVISIONS FOR LIABILITIES

15

192,488

183,516

NET ASSETS

4,757,739

4,166,347

CAPITAL AND RESERVES

Called up share capital

16

1,070

1,070

Revaluation reserve

17

166,841

166,841

Retained earnings

17

4,589,828

3,998,436

SHAREHOLDERS' FUNDS

4,757,739

4,166,347

The financial statements were approved by the Board of Directors and authorised for issue on 8th January 2026 and were signed on its behalf by:

Mrs S Ashford - Director

FIXED ASSETS

Tangible assets

9

2,130,087

1,392,382

Investments

10

69,469

69,469

2,199,556

1,461,851

CURRENT ASSETS

Debtors

12

21,807

18,608

Cash at bank and in hand

1,489,456

804,766

1,511,263

823,374

CREDITORS

Amounts falling due within one year

13

1,950,274

847,180

NET CURRENT LIABILITIES

(439,011

)

(23,806

)

TOTAL ASSETS LESS CURRENT LIABILITIES

1,760,545

1,438,045

PROVISIONS FOR LIABILITIES

15

34,230

27,786

NET ASSETS

1,726,315

1,410,259

CAPITAL AND RESERVES

Called up share capital

16

1,070

1,070

Revaluation reserve

166,841

166,841

Retained earnings

1,558,404

1,242,348

SHAREHOLDERS' FUNDS

1,726,315

1,410,259

Company's profit for the financial year

437,355

406,416

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

Mrs S Ashford - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1st January 2023

1,070

3,289,438

166,841

3,457,349

Changes in equity

Dividends

-

(104,986

)

-

(104,986

)

Total comprehensive income

-

813,984

-

813,984

Balance at 31st December 2023

1,070

3,998,436

166,841

4,166,347

Changes in equity

Dividends

-

(121,299

)

-

(121,299

)

Total comprehensive income

-

712,691

-

712,691

Balance at 31st December 2024

1,070

4,589,828

166,841

4,757,739

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1st January 2023

1,070

940,918

166,841

1,108,829

Changes in equity

Dividends

-

(104,986

)

-

(104,986

)

Total comprehensive income

-

406,416

-

406,416

Balance at 31st December 2023

1,070

1,242,348

166,841

1,410,259

Changes in equity

Dividends

-

(121,299

)

-

(121,299

)

Total comprehensive income

-

437,355

-

437,355

Balance at 31st December 2024

1,070

1,558,404

166,841

1,726,315

Cash flows from operating activities

Cash generated from operations

1

1,987,117

834,339

Tax paid

(185,229

)

(199,364

)

Net cash from operating activities

1,801,888

634,975

Cash flows from investing activities

Purchase of tangible fixed assets

(1,026,752

)

(1,204,957

)

Sale of tangible fixed assets

19,125

136,075

Interest received

11,707

12,074

Net cash from investing activities

(995,920

)

(1,056,808

)

Cash flows from financing activities

Equity dividends paid

(121,299

)

(104,986

)

Net cash from financing activities

(121,299

)

(104,986

)

Increase/(decrease) in cash and cash equivalents

684,669

(526,819

)

Cash and cash equivalents at beginning of year

2

804,821

1,331,640

Cash and cash equivalents at end of year

2

1,489,490

804,821

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

2024

2023

£

£

Profit before taxation

918,012

1,100,621

Depreciation charges

218,651

288,973

Loss/(profit) on disposal of fixed assets

5,621

(20,560

)

Dilapidation provision

15,000

-

Warranty provision

12,387

-

Finance income

(11,707

)

(12,074

)

1,157,964

1,356,960

(Increase)/decrease in stocks

(80,775

)

34,515

Decrease/(increase) in trade and other debtors

203,805

(111,136

)

Increase/(decrease) in trade and other creditors

706,123

(446,000

)

Cash generated from operations

1,987,117

834,339

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 December 2024

31/12/24

1/1/24

£

£

Cash and cash equivalents

1,489,490

804,821

Year ended 31st December 2023

31/12/23

1/1/23

£

£

Cash and cash equivalents

804,821

1,331,640

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/1/24

Cash flow

At 31/12/24

£

£

£

Net cash

Cash at bank and in hand

804,821

684,669

1,489,490

804,821

684,669

1,489,490

Total

804,821

684,669

1,489,490

1.	STATUTORY INFORMATION

Pitkin & Ruddock Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

The accounts have been prepared on the going concern basis, on the basis that the directors consider that the group will have sufficient cashflow and available resources to continue to operate for at least 12 months from the approval date of these financial statements.

Basis of consolidation

The group's accounts have been consolidated using the acquisition method, line by line of combining the financial statements of the parent and subsidiaries eliminating any intragroup balances and transactions.

The group companies have coterminous year ends and the parent exempt from publishing its results by virtue of 408 of the Companies Act 2006.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the group's accounting policies, which are described above, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below.

Valuation of freehold land and buildings

As described in the notes below, land and buildings as originally acquired are stated at the valuation in 2013elected as deemed cost under FRS102 transition exemption. The valuation was performed by an independent professional value, with relevant experience in the location and category of property valued. The valuer used observable market prices adjusted as necessary for any difference in the future, location or condition of the specific asset.

Long term contracts

Turnover

Contract turnover includes the value of work completed during the financial year after reference to the total sales value and stage completion of the project.

Profits or Losses

Profits on long-term contracts are calculated in accordance with industry standard accounting practice and do not directly relate to turnover. Profit on current contracts is only taken at the stage near enough to completion for that profit to be reasonably certain. Provision is made for all losses incurred to the accounting date together with any further losses that are foreseen in bringing contracts to completion.

Costs

Costs for this purpose include valuation of all work done on projects and all overheads other that those relating to the general administration. For any contracts where receipts exceed the book value of the work done, the excess is included in creditors as payments on account.

Turnover

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

Revenue from the sale of goods is recognised when the goods are delivered and the legal title is passed.

Turnover consists of sale, installation and maintenance of refrigeration and air conditioning equipment.

Interest receivable is recognised on an accruals basis.