REGISTERED NUMBER: NI069001 (Northern Ireland)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 30 April 2025

for

Reid Engineering (Cookstown) Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Income Statement

10

Other Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

14

Cash Flow Statement

15

Notes to the Cash Flow Statement

16

Notes to the Financial Statements

18

DIRECTORS:

Mr A Reid

Mrs L Reid

Mr N J Whyte

Mr A V Ferguson

Mr N E Dallas

SECRETARY:

Mr A Reid

REGISTERED OFFICE:

55 Knockanroe Road

Stewartstown

Dungannon

Co Tyrone

BT71 5LX

REGISTERED NUMBER:

NI069001 (Northern Ireland)

AUDITORS:

McIlveen Howard Limited

Statutory Auditors

Chartered Accountants

169a Upper Newtownards Road

Belfast

BT4 3HZ

BANKERS:

AIB

18-20 Scotch Street

Dungannon

Tyrone

BT70 1AZ

The directors present their strategic report for the year ended 30 April 2025.

REVIEW OF BUSINESS

The directors consider the results for the period to be satisfactory and the emphasis going forward continues to be on securing turnover that will result in sustainable profitability and cashflow.

The key performance indicators are those which communicate the financial performance and strength of the company.

Year ended 30 April 2025

Year ended 30 April 2024

Turnover

£17.4m

£14.8m

Gross profit Margin

24%

17.5%

Operating profit margin

8.4%

5.0%

PRINCIPAL RISKS AND UNCERTAINTIES

The management of the business and execution of the company's strategy are subject to a number of risks. The key business risks affecting the company are competition, increasing raw material costs and maintaining sales levels. The company's management regularly perform operational and strategic review to mitigate these risks.

The key risks are detailed below

Business performance risk

Business performance risk is the risk that the company may not perform as expected either due to internal factors or due to competitive pressures in the market in which it operates. This risk is managed through a number of measures including: ensuring the appropriate management team is in place, budget and business planning, monthly reporting, financial controls and reviewing key performance indicators

Health and safety risk

The company is committed to ensuring a safe working environment. Any associated risks are managed by the company through the promotion of a strong health and safety culture, in addition to well defined health and safety policies.

Management development

Senior management is committed to ensuring the long-term growth of the company and it aims to achieve this by ensuring it retains and attracts high quality personnel.

Financial and business control

Strong financial controls are necessary to ensure the integrity and reliability of both financial and non-financial information on which the company relies for day to day operations, external reporting and long-term planning. The company exercises financial and business control through a combination of qualified and experienced staff, regular performance analysis and clearly defined authorisation limits.

FUTURE DEVELOPMENTS AND RESTRUCTURING

The strength of the company's brand, together with its high quality products and high quality service levels will ensure the company continues to prosper in all market conditions.The directors remain committed to investing in fixed assets and new products in line with market requirements and are confident that the current level of performance will be improved in the future.

The directors are pleased to report that as part of the company's restructuring plans, a share for share exchange took place whereby the issued shares in Reid Engineering (Cookstown) Limited were transferred to Reid Group Holdings Limited. The directors report that there was no change in the ultimate controlling parties.

ON BEHALF OF THE BOARD:

Mr A Reid - Secretary

29 April 2026

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

DIVIDENDS

No interim dividend was paid during the year. The directors recommend a final dividend of £175000 per share.

The total distribution of dividends for the year ended 30 April 2025 will be £ 350,000 .

RESEARCH AND DEVELOPMENT

The director's continue to invest in research and development projects to advanced the efficiency and production in the company.

EVENTS AFTER THE BALANCE SHEET DATE

Events after the balance sheet date are described in Note 25.

DIRECTORS

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

Mr A Reid

Mrs L Reid

Mr N J Whyte

Mr A V Ferguson

Other changes in directors holding office are as follows:

Mr N E Dallas was appointed as a director after 30 April 2025 but prior to the date of this report.

POLITICAL DONATIONS AND EXPENDITURE

The company did not make any disclosable political donations in the current year.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the 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 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 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 company's auditors are aware of that information.

AUDITORS

The auditors, McIlveen Howard Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr A Reid - Secretary

29 April 2026

Opinion

We have audited the financial statements of Reid Engineering (Cookstown) Limited (the 'company') for the year ended 30 April 2025 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the 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 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 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 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 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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, 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 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 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 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.

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. we also:

- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,forgery, intentional omissions, misrepresentations, or the override of internal control.

- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.

- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

- Conclude on the appropriateness of the directors use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the company to cease to continue as a going concern.

- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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.

Other matters which we are required to address

In the previous accounting period the directors of the company took advantage of audit exemption under S477 of the Companies Act 2006. Therefore the prior year financial statements were not subject to audit.

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.

Roy Creelman (Senior Statutory Auditor)

for and on behalf of McIlveen Howard Limited

Statutory Auditors

Chartered Accountants

169a Upper Newtownards Road

Belfast

BT4 3HZ

29 April 2026

TURNOVER

5

17,352,141

14,814,951

Cost of sales

13,176,804

12,210,660

GROSS PROFIT

4,175,337

2,604,291

Distribution costs

109,444

70,380

Administrative expenses

2,646,472

1,843,233

2,755,916

1,913,613

1,419,421

690,678

Other operating income

34,636

37,829

OPERATING PROFIT

7

1,454,057

728,507

Interest receivable and similar income

30,301

27,640

1,484,358

756,147

Interest payable and similar expenses

8

25,940

23,214

PROFIT BEFORE TAXATION

1,458,418

732,933

Tax on profit

9

378,601

157,296

PROFIT FOR THE FINANCIAL YEAR

1,079,817

575,637

PROFIT FOR THE YEAR

1,079,817

575,637

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,079,817

575,637

FIXED ASSETS

Intangible assets

11

-

-

Tangible assets

12

2,872,265

2,268,167

2,872,265

2,268,167

CURRENT ASSETS

Stocks

13

266,080

446,394

Debtors

14

5,510,275

5,281,077

Cash at bank

885,113

154,001

6,661,468

5,881,472

CREDITORS

Amounts falling due within one year

15

4,076,120

3,457,750

NET CURRENT ASSETS

2,585,348

2,423,722

TOTAL ASSETS LESS CURRENT LIABILITIES

5,457,613

4,691,889

CREDITORS

Amounts falling due after more than one year

16

(525,586

)

(444,115

)

PROVISIONS FOR LIABILITIES

20

(314,056

)

(329,917

)

ACCRUALS AND DEFERRED INCOME

21

(133,211

)

(162,914

)

NET ASSETS

4,484,760

3,754,943

CAPITAL AND RESERVES

Called up share capital

22

2

2

Retained earnings

23

4,484,758

3,754,941

SHAREHOLDERS' FUNDS

4,484,760

3,754,943

The financial statements were approved by the Board of Directors and authorised for issue on 29 April 2026 and were signed on its behalf by:

Mr A Reid - Director

Mrs L Reid - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 May 2023

2

3,279,304

3,279,306

Changes in equity

Dividends

-

(100,000

)

(100,000

)

Total comprehensive income

-

575,637

575,637

Balance at 30 April 2024

2

3,754,941

3,754,943

Changes in equity

Dividends

-

(350,000

)

(350,000

)

Total comprehensive income

-

1,079,817

1,079,817

Balance at 30 April 2025

2

4,484,758

4,484,760

Cash flows from operating activities

Cash generated from operations

1

1,921,831

1,307,524

Interest paid

-

(12,854

)

Interest element of hire purchase payments paid

(25,940

)

(10,360

)

Tax paid

(106,511

)

(156,763

)

Net cash from operating activities

1,789,380

1,127,547

Cash flows from investing activities

Purchase of tangible fixed assets

(859,762

)

(695,180

)

Interest received

30,301

27,640

Net cash from investing activities

(829,461

)

(667,540

)

Cash flows from financing activities

Loan repayments in year

(96,120

)

(86,550

)

Capital repayments in year

57,205

28,694

Amount introduced by directors

-

38,000

Amount withdrawn by directors

(135,957

)

(58,036

)

Net cash from financing activities

(174,872

)

(77,892

)

Increase in cash and cash equivalents

785,047

382,115

Cash and cash equivalents at beginning of year

2

100,066

(282,049

)

Cash and cash equivalents at end of year

2

885,113

100,066

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

2025

2024

£

£

Profit before taxation

1,458,418

732,933

Depreciation charges

357,283

360,024

Loan interest

30,422

30,680

Finance costs

25,940

23,214

Finance income

(30,301

)

(27,640

)

1,841,762

1,119,211

Decrease in stocks

180,314

1,267,419

Increase in trade and other debtors

(443,241

)

(2,210,227

)

Increase in trade and other creditors

342,996

1,131,121

Cash generated from operations

1,921,831

1,307,524

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 30 April 2025

30/4/25

1/5/24

£

£

Cash and cash equivalents

885,113

154,001

Bank overdrafts

-

(53,935

)

885,113

100,066

Year ended 30 April 2024

30/4/24

1/5/23

£

£

Cash and cash equivalents

154,001

15,536

Bank overdrafts

(53,935

)

(297,585

)

100,066

(282,049

)

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

154,001

731,112

885,113

Bank overdrafts

(53,935

)

53,935

-

100,066

785,047

885,113

Debt

Finance leases

(234,960

)

(57,205

)

-

(393,784

)

Debts falling due

within 1 year

(81,159

)

-

-

(81,159

)

Debts falling due

after 1 year

(295,454

)

65,698

-

(229,756

)

(611,573

)

8,493

-

(704,699

)

Total

(511,507

)

793,540

-

180,414

1.	STATUTORY INFORMATION

Reid Engineering (Cookstown) Limited is a private company, limited by shares , registered in Northern Ireland. The company's registered number and registered office address can be found on the Company Information page.

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

2.	STATEMENT OF COMPLIANCE

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

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the company's financial statements.

Turnover

Turnover comprises the invoice value of goods and services supplied by the company, excluding discounts, rebates, valued added tax and other sales taxes.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the the goods has passed to the buyer. The amount of revenue can be measured reliably, if it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be reliably measured. Revenue also includes the accrual value of sales completed and invoiced shortly after the end of the financial year.

Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any 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.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.

Except for Land, depreciation is provided on the following basis:

Buildings - 2% on cost

Improvements to property - 2% on cost

Plant and machinery - 20% reducing balance

Fixtures and fittings - 15% reducing balance

Computer equipment - 33% on cost

The carrying values of tangible fixed assets are reviewed for impairment in each accounting period if events or changes in circumstances indicate the carrying amount may not be recoverable. If there is evidence of impairment. the recoverable amount of the asset, (being the higher of fair value less costs to sell and the value in use of the asset), is estimated to determine the extent of any such impairment.

Stocks

Cost comprises direct materials and, where applicable direct labour and those overheads that have been incurred in bringing the stocks to their present location and condition. Net realisable value is the price at which the stock can be realised in the normal course of business after allowing for the costs of realisation, and where appropriate, the cost of conversion from their existing state to the finished condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversal of impairment losses are also recognised in profit or loss.

Financial instruments

The company has elected to apply the provisions of section 11 'Basic Financial Instruments' and section 12 'Other Financial Instrument Issues' of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets.

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

Derivatives, including forward exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in the profit and loss in finance costs or finance income as appropriate.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for impairment at each reporting date.

Financial assets are impaired when there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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 a decrease in the impairment loss arising from an event occuring 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.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some of the risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Financial liabilities

Basic financial liabilities, including trade and other creditors and bank loans and overdrafts, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest method.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts 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 creditors are initially recognised at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled.

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 or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Foreign currencies

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Dividends

Dividends are included in the financial statements in the period in which they are actually paid.

Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.