REGISTERED NUMBER: NI017138 (Northern Ireland)

STARPLAN FURNITURE LIMITED

Strategic Report, Directors' Report and

Financial Statements for the Year Ended 30 April 2025

Page

Company Information

1

Strategic Report

2

Directors' Report

3

Independent Auditors' Report

5

Income Statement

9

Statement of Financial Position

10

Statement of Changes in Equity

11

Statement of Cash Flows

12

Notes to the Statement of Cash Flows

13

Notes to the Financial Statements

14

DIRECTORS:

Ian Mccreery

Mervyn Wilson

David Wilson

REGISTERED OFFICE:

173 Killyman Road

Dungannon

Co. Tyrone

BT71 6LN

REGISTERED NUMBER:

NI017138 (Northern Ireland)

INDEPENDENT AUDITORS:

Cooper Parry Audit (Ireland) Limited

Statutory Auditor

36-38 Northland Row

Dungannon

Co. Tyrone

BT71 6AP

BANKERS:

Bank of Ireland

24 Scotch Street

Dungannon

Tyrone

BT70 1AR

SOLICITORS:

Jim Rafferty & Co

4 Northland Place

Dungannon

Co. Tyrone

BT71 6AN

The directors present their Strategic report on the company for the year ended 30 April 2025.

PRINCIPAL ACTIVITIES

The principal activity of the company is the manufacture of kitchens and bedroom furniture for sale through retail outlets across Northern Ireland and the Midlands area of England.

REVIEW OF THE BUSINESS AND FUTURE DEVELOPMENTS

The results for the company show a pre tax profit of £744,926 (2024: £52,826). At the year end the company had net assets of £15,717,419 (2024: £15,058,868).

The company directors are satisfied with the results for the year and the financial position at the year end. The directors are committed to long term creation of shareholder value by increasing market share through organic growth, including new branch openings, and will continue to invest in people, products and facilities in order to support this development.

Whilst impacted by ongoing economic factors the directors remain confident about the future.

PRINCIPAL RISKS AND UNCERTAINTIES

Performance in the sector is affected by the general economic conditions and specific sectoral factors such as the housing market and demographic trends, as well as product availability and price fluctuation. The board carries out regular strategic reviews including assessments of competitor activity, market trends and forecasts and customer behaviour. The security of product supply is monitored by the directors on an ongoing basis with supplier financial strength, product quality and service levels regularly reviewed. The company's active review of market prices both provides protection and maximises opportunities from anticipated price rises.

KEY PERFORMANCE INDICATORS

The company's key performance indicators are as follows:

2025

2024

2023

Gross profit margin

52.4%

52.2%

52.1%

Net profit before tax margin

4.5%

0.3%

2.0%

HEALTH AND SAFETY

The company is committed to achieving the highest practicable standards in health and safety management and strives to make all sites and offices safe environments for employees and customers alike.

HUMAN RESOURCES

Management of the company recognises that its most important resource is its people; their knowledge and experience is crucial to meeting customer requirements. Retention of key staff is critical and the company has invested increasingly in employment training and development and has introduced appropriate incentive and career progression arrangements.

ON BEHALF OF THE BOARD:

Mervyn Wilson - Director

12 November 2025

The directors present their report with the audited financial statements of the Company for the year ended 30 April 2025.

PRINCIPAL ACTIVITY

The principal activity of the company is the manufacture of kitchens and bedroom furniture for sale through retail outlets across Northern Ireland and the Midlands area of England.

DIVIDENDS

Interim dividends totalling £50,000 (2024: £50,000) were paid out during the year. The directors do not recommend payment of a final dividend (2024: £Nil).

RESEARCH AND DEVELOPMENT

The company continues to recognise the importance of its research and development programme, which it believes is essential to ensure that the business continues to develop new products and remain competitive in the market.

DIRECTORS

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

Ian Mccreery

Mervyn Wilson

David Wilson

POLITICAL DONATIONS AND EXPENDITURE

The company made charitable donations amounting to £Nil (2024: £3,600) during the year, principally for the benefit of local communities in which the company operates. No donations for political purposes were made during the year (2024: £Nil).

FINANCIAL RISK MANAGEMENT

The company's operations expose it to a variety of financial risks that include the effects of changes in price risk, foreign exchange risk, credit risk, liquidity risk and interest rate risk. The company has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the company by monitoring levels of debt finance and the related finance costs.

Given the size of the company, the directors have not delegated the responsibility of monitoring financial risk management to a sub committee of the board. The policies set by the board of directors are implemented by the company's finance department.

PRICE RISK

The company is exposed to commodity price risk as a result of its operations. However, given the size of the company's operations, the costs of managing exposure to commodity price risk exceed any potential benefits. The directors will revisit the appropriateness of this policy should the company's operations change in size or nature. The company has no exposure to equity securities price risk as it holds no listed or other equity investments.

FOREIGN EXCHANGE RISK

While the greater part of the company's revenues and expenses are denominated in sterling, the company is exposed to some foreign exchange risk in the normal course of the business, principally on purchases of products in Euros.

CREDIT RISK

Policies and procedures exist to ensure that customers have an appropriate credit history, and all trade customers are allocated a credit limit which is regularly monitored.

LIQUIDITY RISK

The company actively maintains a mixture of long term and short term debt finance that is designed to ensure the company has sufficient available funds for operations and planned expansions.

INTEREST RATE RISK

The company has interest bearing liabilities. The interest bearing liabilities include bank loans and overdrafts on which interest charged varies in line with the banks base rate. Interest bearing liabilities also include hire purchase agreements at a fixed rate of interest. The company has a policy of maintaining debt at a competitive rate to ensure a reasonable degree of certainty over future interest cash flows. The directors will revisit the appropriateness of this policy should the company's operations change in size or nature.

DIRECTORS' RESPONSIBILITIES STATEMENT

The directors are responsible for preparing the Strategic Report, the Directors' Report 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 of the profit or loss of the Company 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 transactions and disclose with reasonable accuracy at any time the financial position of the Company 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 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 Company'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 Company's auditors are aware of that information.

AUDITORS

The audit business of CavanaghKelly was acquired by Cooper Parry Audit (Ireland) Limited on 24th July 2025. CavanaghKelly has resigned as auditor and Cooper Parry Audit (Ireland) Limited has been appointed in its place.

The auditors, Cooper Parry Audit (Ireland) Limited, have indicated their willingness to continue in office in accordance with the provision of Section 485 of the Companies Act 2006.

ON BEHALF OF THE BOARD:

Mervyn Wilson - Director

12 November 2025

Opinion

We have audited the financial statements of Starplan Furniture Limited (the 'Company') for the year ended 30 April 2025 which comprise the Income Statement, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 Company's affairs as at 30 April 2025 and of its 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 Company 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 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 Strategic Report and the Directors' Report, but does not include the financial statements and our Auditors' Report 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 Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Directors' Report 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 Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.

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, or returns adequate for our audit have not been received from branches not visited by us; or

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

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

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

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement set out on 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 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 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 an Auditors' Report 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:

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. The objectives of our audit in respect of fraud are to assess the risk of material misstatement due to fraud, design and implement appropriate responses to those assessed risks and to respond appropriately to instances of fraud or suspected fraud identified during the course of our audit. However, the primary responsibility for the prevention and detection of fraud rests with management and those charged with governance of the company.

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

-

We obtained understanding of the legal and regulatory requirements applicable to the company’s financial statements and considered the most significant are the Companies Act 2006, Financial Reporting Standards (FRS102) and UK taxation legislation;

-

We have assessed the risk of material misstatement of the financial statements, including risk of material misstatement due to fraud and how it might occur by holding discussions with management and those charged with governance;

-

We enquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations;

-

Understanding the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations; and

-

Discussions amongst the audit engagement team regarding how fraud might occur in the financial statements and any potential indicators of fraud. As part of this discussion we identified the following potential areas where fraud may occur: timing of revenue recognition and management override.

The audit response to risks identified included:

-

Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the relevant laws and regulations above;

-

Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risk of material misstatement due to fraud;

In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether the judgements made in making accounting estimates are reasonable and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

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 Auditors' Report.

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 an Auditors' Report 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.

Mr. Desmond Kelly (F.C.A) (Senior Statutory Auditor)

for and on behalf of Cooper Parry Audit (Ireland) Limited

Statutory Auditor

36-38 Northland Row

Dungannon

Co. Tyrone

BT71 6AP

12 November 2025

TURNOVER

5

16,410,088

16,624,273

Cost of sales

(7,817,944

)

(7,939,388

)

GROSS PROFIT

8,592,144

8,684,885

Distribution costs

(6,843,765

)

(6,481,098

)

Administrative expenses

(1,800,183

)

(1,888,742

)

(51,804

)

315,045

Other operating income

128,507

126,000

OPERATING PROFIT

7

76,703

441,045

Finance income

71,806

-

148,509

441,045

Gain on revaluation

on Investment property

943,251

-

1,091,760

441,045

Finance costs

8

(346,834

)

(388,219

)

PROFIT BEFORE TAXATION

744,926

52,826

Tax on profit

9

(36,375

)

(72,571

)

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

708,551

(19,745

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

708,551

(19,745

)

NON-CURRENT ASSETS

Intangible assets

11

217,230

98,450

Tangible assets

12

16,081,481

16,412,580

Investments

13

135,000

135,000

Investment property

14

2,280,414

1,337,163

18,714,125

17,983,193

CURRENT ASSETS

Stocks

15

2,417,735

2,320,958

Receivables: amounts falling due within one year

16

2,483,925

2,286,441

Cash at bank and in hand

341,178

564,075

5,242,838

5,171,474

PAYABLES

Amounts falling due within one year

17

(4,860,532

)

(4,138,043

)

NET CURRENT ASSETS

382,306

1,033,431

TOTAL ASSETS LESS CURRENT LIABILITIES

19,096,431

19,016,624

PAYABLES

Amounts falling due after more than one year

18

(2,678,454

)

(3,460,364

)

PROVISIONS FOR LIABILITIES

22

(700,558

)

(497,392

)

NET ASSETS

15,717,419

15,058,868

CAPITAL AND RESERVES

Called up share capital

23

180,000

180,000

Revaluation reserve

3,961,817

3,961,817

Retained earnings

11,575,602

10,917,051

SHAREHOLDERS' FUNDS

15,717,419

15,058,868

The financial statements were approved by the Board of Directors and authorised for issue on 12 November 2025 and were signed on its behalf by:

Mervyn Wilson - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 May 2023

180,000

10,986,796

3,961,817

15,128,613

Changes in equity

Dividends

-

(50,000

)

-

(50,000

)

Total comprehensive income

-

(19,745

)

-

(19,745

)

Balance at 30 April 2024

180,000

10,917,051

3,961,817

15,058,868

Changes in equity

Dividends

-

(50,000

)

-

(50,000

)

Total comprehensive income

-

708,551

-

708,551

Balance at 30 April 2025

180,000

11,575,602

3,961,817

15,717,419

Cash flows from operating activities

Cash generated from operations

1

1,173,301

486,469

Interest paid

(343,534

)

(383,966

)

Interest element of hire purchase payments paid

(3,300

)

(4,253

)

Tax paid

51,145

(88,440

)

Net cash from operating activities

877,612

9,810

Cash flows from investing activities

Purchase of intangible fixed assets

(66,654

)

(98,450

)

Purchase of tangible fixed assets

(311,779

)

(157,500

)

Sale of tangible fixed assets

12,000

127,498

Interest received

71,806

-

Net cash from investing activities

(294,627

)

(128,452

)

Cash flows from financing activities

Loan repayments in year

(726,520

)

(203,013

)

Capital repayments in year

(29,362

)

(39,243

)

Equity dividends paid

(50,000

)

(50,000

)

Net cash from financing activities

(805,882

)

(292,256

)

Decrease in cash and cash equivalents

(222,897

)

(410,898

)

Cash and cash equivalents at beginning of year

2

564,075

974,973

Cash and cash equivalents at end of year

2

341,178

564,075

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

2025

2024

£

£

Profit before taxation

744,926

52,826

Depreciation charges

613,285

702,306

Profit on disposal of fixed assets

(4,033

)

(38,083

)

Gain on revaluation of fixed assets

(943,251

)

-

Finance costs

346,834

388,219

Finance income

(71,806

)

-

685,955

1,105,268

(Increase)/decrease in stocks

(96,777

)

45,074

Increase in trade and other debtors

(131,293

)

(49,996

)

Increase/(decrease) in trade and other creditors

715,416

(613,877

)

Cash generated from operations

1,173,301

486,469

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 30 April 2025

30/4/25

1/5/24

£

£

Cash and cash equivalents

341,178

564,075

Year ended 30 April 2024

30/4/24

1/5/23

£

£

Cash and cash equivalents

564,075

974,973

3.	ANALYSIS OF CHANGES IN NET DEBT

Other

non-cash

At 1/5/24

Cash flow

changes

At 30/4/25

£

£

£

£

Net cash

Cash at bank

and in hand

564,075

(222,897

)

341,178

564,075

(222,897

)

341,178

Debt

Finance leases

(34,195

)

29,362

-

(35,333

)

Debts falling due

within 1 year

(203,669

)

(60,805

)

-

(264,474

)

Debts falling due

after 1 year

(3,445,940

)

787,325

-

(2,658,615

)

(3,683,804

)

755,882

-

(2,958,422

)

Total

(3,119,729

)

532,985

-

(2,617,244

)

1.	STATUTORY INFORMATION

The principal activity of the company is the manufacture of kitchens and bedroom furniture for sale through retail outlets across Northern Ireland and the Midlands area of England.

The company is a private company limited by shares, is incorporated and domiciled in Northern Ireland, within the United Kingdom. The address of the registered office is 173 Killyman Road, Dungannon, Co. Tyrone, BT71 6LN.

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 on a going concern basis under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires company management to exercise judgement in applying the company's accounting policies (see note 4).

The following principal accounting policies have been applied consistently unless otherwise stated:

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods:

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

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

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

- the amount of revenue can be measured reliably;

- it is probable that future economic benefits will flow to the company

- the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Sale of services:

Revenue from the sale of services is recognised when all of the following conditions are satisfied:

- the amount of revenue can be measured reliably;

- it is probable that the group will receive consideration due under the contract;

- the stage of completion of the contract at the end of the reporting period can be measured reliably, and;

- the costs incurred and the costs to complete the contract can be measured reliably.

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 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 accumulated impairment losses. Goodwill is amortised on a straight line basis to the Profit and loss account over its useful economic life.

Intangiable assets

Intangible assets are initially recorded at cost less accumulated amortisation and accumulated impairment losses.

Software

Software required to run computer equipment is regarded as part of the equipment cost in tangible fixed asset. Other software is recognised as expenditure in the period of acquisition. Annual costs for the use of software, and supplier support are recognised as expenditure in the Statement of Comprehensive Income. All other software is capitalised and recognised at cost less accumulated depreciation and accumulated impairment losses.

Such assets will be depreciated when bought for use.

Property, plant and equipment

Tangible assets under the cost model are stated at historical cost (or deemed cost for land and buildings held at valuation at the date of transition to FRS 102) 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 company previously adopted a policy of revaluing freehold and buildings and they were stated at their revalued amount less any subsequent depreciation and accumulated impairment losses. The company has adopted the transition exemption under FRS 102 paragraph 35.10 (d) and has elected to use the previous revaluation as deemed cost. The difference between depreciation based on the deemed cost charged in the income statement and the original cost is transferred from revaluation reserve to retained earnings.

The company adds to the carrying amount of an item of fixed assets the costs of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to the income statement during the period in which they are incurred.

Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

The estimated useful lives range as follows:

Freehold property

- 50 years

Long-term leasehold property

- 10 years

Plant and machinery

- 10 years

Motor vehicles

- 4 years

Fixtures and fittings

- 5 years

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. Land is not depreciated.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Profit and loss account.

Investments in subsidiaries

Investments in subsidiaries are measured at cost less accumulated impairment.

Investment property

Investment property is carried at fair value determined from the latest external valuation carried out, current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in the Profit and loss account.

Inventories

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each Balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

Financial instruments

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

(i) Financial assets

Basic financial assets, including trade and other receivables, cash and bank balances and amounts owed by related parties are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss.

If there is decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

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

(ii) Financial liabilities

Basic financial liabilities, including trade and other payables, bank loans and overdrafts and amounts owed to related parties are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

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

(iii) Offsetting

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally 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 simultaneously.

Taxation

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

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 statement of financial position date.

Deferred tax

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

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

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

Functional and presentation currency

The company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Profit and loss account except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Profit and loss account within 'finance income or costs'. All other foreign exchange gains and losses are presented in the Profit and loss account within 'other operating income'.

Pension costs and other post-retirement benefits

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.

The contributions are recognised as an expense in the Profit and loss account when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the company in independently administered funds.

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.