REGISTERED NUMBER: 15514113 (England and Wales)

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements for the Year Ended 30 September 2025

for

Olea Holdings Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

5

Consolidated Income Statement

9

Consolidated Other Comprehensive Income

10

Consolidated Balance Sheet

11

Company Balance Sheet

12

Consolidated Statement of Changes in Equity

13

Company Statement of Changes in Equity

14

Consolidated Cash Flow Statement

15

Notes to the Consolidated Cash Flow Statement

16

Notes to the Consolidated Financial Statements

17

DIRECTORS:

G W Claffey

Mrs L Claffey

REGISTERED OFFICE:

20 Torkington Road

Hazel Grove

Stockport

SK7 4RQ

REGISTERED NUMBER:

15514113 (England and Wales)

AUDITORS:

Fairhurst Audit Services Ltd

Statutory Auditors

Chartered Accountants

Douglas Bank House

Wigan Lane

Lancashire

WN1 2TB

The directors present their strategic report of the company and the group for the year ended 30 September 2025.

The principal activities of the company during the year under review are the operation of residential and nursing care home.

REVIEW OF BUSINESS

The company acts as a holding entity for two subsidiaries which operate well established residential and nursing care homes across Greater Manchester.

Together, the homes continue to provide high quality care and demonstrate strong operational performance across the group.

The company underwent a management buyout (MBO) in the prior year to support long term sustainability and provide a strengthened strategic framework for future development. Since the MBO, both homes have continued to perform successfully, supported by enhanced governance, clearer oversight, and a shared commitment to quality.

Collectively, the group's services provide accommodation and care for up to 78 residents aged 18 and above. Each home has been purpose built or purpose designed to prioritise resident wellbeing, comfort, safety, and social engagement. The environments are intended to feel welcoming, homely, and supportive, enabling residents to live with dignity and independence for as long as possible.

The company's philosophy underpins all aspects of service delivery. It reflects the organisation's core values and guides how we care for our residents, engage with families and stakeholders, and support our staff. These values continue to form the foundation on which the group builds excellence, develops its services, and meets its long term goals.

Our people remain central to the company's success. We are proud of the dedication and professionalism demonstrated by staff across both subsidiaries, whose commitment ensures residents receive the highest quality of care. Their contribution is fundamental to maintaining the strong reputation of the homes and delivering positive outcomes for those who live with us.

The group is committed to upholding high standards of integrity, professional conduct, and sound business judgement. Effective planning and continuous improvement remain embedded across the organisation, ensuring services evolve in line with resident needs, regulatory requirements, and sector expectations. The emphasis on continual improvement also enhances performance resilience and enables the homes to respond proactively to operational challenges.

Sustainability continues to be a key organisational value. In recent years, both homes have invested significantly in sustainable technologies and environmentally responsible practices. These initiatives support long term cost efficiency, reduce environmental impact, and reinforce the company's commitment to operating responsibly for the benefit of current and future generations.

The company delivered strong financial results during the year. Group sales exceeded £4.8 million, and EBITDA remained healthy at 19.0%. The financial performance reflects stable occupancy levels, effective cost management, and the ongoing demand for high quality residential care services

GOING CONCERN

The directors have reviewed the management accounts to date and the cash requirements for a period of 12 months from the date of approval of these financial statements, which indicate that, taking account of any possible reduction in occupation, the company will have sufficient funds to continue trading and to meet its liabilities as they fall due during that period. They therefore believe that it remains appropriate to prepare the financial statements on a going concern basis.

PRINCIPAL RISKS AND UNCERTAINTIES

The directors consider the principal risks and uncertainties faced by the company to arise across the following areas:

Financial risk

The company's exposure to credit risk remains low, with trade debtors representing the main area of risk. Privately funded residents pay a deposit on admission, and credit risk for both private and publicly funded placements is managed through ongoing monitoring of payments against contractual terms. Cash flow is carefully managed as part of daily financial controls.

Operational risk

A key operational risk is the potential for reduced occupancy levels. Demand for residential and nursing care remains driven by need and is expected to grow over time. The company continues to mitigate this risk through effective marketing, strong relationships within the local community, and maintaining a positive reputation for quality.

The competitive nature of the UK care employment market presents ongoing challenges in recruiting and retaining skilled staff. The company supports workforce resilience by offering above National Living Wage pay rates for care staff, a competitive benefits package, and ongoing investment in training, development, and nationally recognised qualifications.

Regulatory risk

The company operates within a regulated environment overseen by the Care Quality Commission (CQC). Residential care services are assessed against five key lines of enquiry: whether they are safe, caring, responsive, effective, and well led. Homes are rated as inadequate, requires improvement, good, or outstanding.

A reduced rating could impact occupancy or give rise to local authority restrictions. The directors are pleased to report that the home continues to receive regular inspections and maintains an overall rating of Good.

FUTURE DEVELOPMENTS

The directors expect the operating environment to remain competitive. However, the company is well equipped to meet future demand through its strong service offering, experienced workforce, and commitment to continuous improvement. Planned refurbishments and infrastructure improvements will support the long term quality of the service and enhance resident experience.

FINANCIAL INSTRUMENTS

The company's exposure to price, credit, liquidity, and cash flow risks remains consistent with normal trading levels. These risks arise principally from day to day operations and are managed through established internal control procedures.

ON BEHALF OF THE BOARD:

G W Claffey - Director

11 May 2026

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

DIVIDENDS

The total distribution of dividends for the year ended 30 September 2025 will be £183,001.

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

G W Claffey has held office during the whole of the period from 1 October 2024 to the date of this report.

Other changes in directors holding office are as follows:

Mrs L Claffey - appointed 16 May 2025

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, Fairhurst Audit Services Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

G W Claffey - Director

11 May 2026

Opinion

We have audited the financial statements of Olea Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2025 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 30 September 2025 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.

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 identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

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

- we identified the laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006;

- we identified those laws and regulations which do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty;

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining and understanding of how fraud might occur, by;

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud: and

- considered the internal control in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions; and

- Assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;

- enquiring of management as to actual and potential litigation and claims; and

- reviewing correspondence with HMRC, relevant regulators and the company's legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspections of regulatory and legal correspondence, if any.

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.

Louise Webster BSc BFP ACA (Senior Statutory Auditor)

for and on behalf of Fairhurst Audit Services Ltd

Statutory Auditors

Chartered Accountants

Douglas Bank House

Wigan Lane

Lancashire

WN1 2TB

11 May 2026

TURNOVER

4,833,875

2,302,469

Cost of sales

3,119,047

1,483,614

GROSS PROFIT

1,714,828

818,855

Administrative expenses

1,240,337

978,933

474,491

(160,078

)

Other operating income

219,498

-

OPERATING PROFIT/(LOSS)

4

693,989

(160,078

)

Interest receivable and similar income

782

2,670

694,771

(157,408

)

Interest payable and similar expenses

5

274,181

215,894

PROFIT/(LOSS) BEFORE TAXATION

420,590

(373,302

)

Tax on profit/(loss)

6

139,688

5,666

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

280,902

(378,968

)

Profit/(loss) attributable to:

Owners of the parent

280,902

(378,968

)

PROFIT/(LOSS) FOR THE YEAR

280,902

(378,968

)

OTHER COMPREHENSIVE INCOME

Reserves movement

-

89,105

transferred to profit and loss reserve

1,782

-

transferred from revaluation reserve

(1,782

)

-

Income tax relating to components of other comprehensive income

445

(22,053

)

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

445

67,052

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

281,347

(311,916

)

Total comprehensive income attributable to:

Owners of the parent

281,347

(311,916

)

FIXED ASSETS

Intangible assets

9

(410,204

)

(416,862

)

Tangible assets

10

6,474,171

6,669,881

Investments

11

-

-

6,063,967

6,253,019

CURRENT ASSETS

Stocks

12

4,200

4,200

Debtors

13

258,254

354,482

Cash at bank and in hand

562,319

347,660

824,773

706,342

CREDITORS

Amounts falling due within one year

14

1,082,362

681,644

NET CURRENT (LIABILITIES)/ASSETS

(257,589

)

24,698

TOTAL ASSETS LESS CURRENT LIABILITIES

5,806,378

6,277,717

CREDITORS

Amounts falling due after more than one year

15

(4,420,643

)

(4,992,023

)

PROVISIONS FOR LIABILITIES

19

(308,804

)

(307,109

)

NET ASSETS

1,076,931

978,585

CAPITAL AND RESERVES

Called up share capital

20

1,000

1,000

Merger relief reserve

21

1,289,501

1,289,501

Revaluation reserve

21

65,047

66,384

Retained earnings

21

(278,617

)

(378,300

)

SHAREHOLDERS' FUNDS

1,076,931

978,585

The financial statements were approved by the Board of Directors and authorised for issue on 11 May 2026 and were signed on its behalf by:

G W Claffey - Director

FIXED ASSETS

Intangible assets

9

-

-

Tangible assets

10

640,200

653,400

Investments

11

2,604,719

2,604,719

3,244,919

3,258,119

CURRENT ASSETS

Debtors

13

-

1

Cash at bank

334,096

18,018

334,096

18,019

CREDITORS

Amounts falling due within one year

14

135,483

83,001

NET CURRENT ASSETS/(LIABILITIES)

198,613

(64,982

)

TOTAL ASSETS LESS CURRENT LIABILITIES

3,443,532

3,193,137

CREDITORS

Amounts falling due after more than one year

15

(1,224,604

)

(1,543,604

)

PROVISIONS FOR LIABILITIES

19

(21,608

)

(22,053

)

NET ASSETS

2,197,320

1,627,480

CAPITAL AND RESERVES

Called up share capital

20

1,000

1,000

Merger relief reserve

21

1,289,501

1,289,501

Revaluation reserve

21

65,047

66,384

Retained earnings

21

841,772

270,595

SHAREHOLDERS' FUNDS

2,197,320

1,627,480

Company's profit for the financial year

752,396

269,927

The financial statements were approved by the Board of Directors and authorised for issue on 11 May 2026 and were signed on its behalf by:

G W Claffey - Director

Called up

Merger

share

Retained

relief

Revaluation

Total

capital

earnings

reserve

reserve

equity

£

£

£

£

£

Changes in equity

Issue of share capital

1,000

-

1,289,501

-

1,290,501

Total comprehensive income

-

(378,300

)

-

66,384

(311,916

)

Balance at 30 September 2024

1,000

(378,300

)

1,289,501

66,384

978,585

Changes in equity

Dividends

-

(183,001

)

-

-

(183,001

)

Total comprehensive income

-

282,684

-

(1,337

)

281,347

Balance at 30 September 2025

1,000

(278,617

)

1,289,501

65,047

1,076,931

Called up

Merger

share

Retained

relief

Revaluation

Total

capital

earnings

reserve

reserve

equity

£

£

£

£

£

Changes in equity

Issue of share capital

1,000

-

1,289,501

-

1,290,501

Total comprehensive income

-

270,595

-

66,384

336,979

Balance at 30 September 2024

1,000

270,595

1,289,501

66,384

1,627,480

Changes in equity

Dividends

-

(183,001

)

-

-

(183,001

)

Total comprehensive income

-

754,178

-

(1,337

)

752,841

Balance at 30 September 2025

1,000

841,772

1,289,501

65,047

2,197,320

Cash flows from operating activities

Cash generated from operations

1

917,689

1,674,992

Interest paid

(274,181

)

(215,894

)

Tax paid

3,136

(74,309

)

Net cash from operating activities

646,644

1,384,789

Cash flows from investing activities

Purchase of tangible fixed assets

(35,216

)

(606,769

)

Acquisition of subsidiaries

-

(546,738

)

Interest received

782

2,670

Net cash from investing activities

(34,434

)

(1,150,837

)

Cash flows from financing activities

Loan repayments in year

(166,589

)

(37,048

)

Related company loan

(47,962

)

149,821

Amount introduced by directors

90,625

20,936

Amount withdrawn by directors

(90,624

)

(20,001

)

Equity dividends paid

(183,001

)

-

Net cash from financing activities

(397,551

)

113,708

Increase in cash and cash equivalents

214,659

347,660

Cash and cash equivalents at beginning of year

2

347,660

-

Cash and cash equivalents at end of year

2

562,319

347,660

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

Period

22.2.24

Year Ended

to

30.9.25

30.9.24

£

£

Profit/(loss) before taxation

420,590

(373,302

)

Depreciation charges

224,268

115,507

Finance costs

274,181

215,894

Finance income

(782

)

(2,670

)

918,257

(44,571

)

Increase in stocks

-

(50

)

Decrease/(increase) in trade and other debtors

99,365

(136,188

)

(Decrease)/increase in trade and other creditors

(99,933

)

1,855,801

Cash generated from operations

917,689

1,674,992

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 September 2025

30.9.25

1.10.24

£

£

Cash and cash equivalents

562,319

347,660

Period ended 30 September 2024

30.9.24

22.2.24

£

£

Cash and cash equivalents

347,660

-

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.10.24

Cash flow

At 30.9.25

£

£

£

Net cash

Cash at bank and in hand

347,660

214,659

562,319

347,660

214,659

562,319

Debt

Debts falling due within 1 year

(185,738

)

(44,262

)

(230,000

)

Debts falling due after 1 year

(3,281,027

)

210,851

(3,070,176

)

(3,466,765

)

166,589

(3,300,176

)

Total

(3,119,105

)

381,248

(2,737,857

)

1.	STATUTORY INFORMATION

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

The financial statements are prepared in sterling which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

Basis of consolidation

The Group financial statements consolidate the financial statements of the Company and its subsidiary undertakings drawn up to 30 September. The results of subsidiaries acquired or sold are consolidated for the periods from or to the date on which control passed.

Business combinations are accounted for by applying the purchase method.

The cost of a business combination is the fair value of the consideration given, liabilities incurred or assumed and of equity instruments issued plus the costs directly attributable to the business combination.

On acquisition of a business, fair values are attributed to the identifiable assets, liabilities and contingent liabilities unless the fair value cannot be measured reliably, in which case the value is incorporated in goodwill. Where the fair value of contingent liabilities cannot be reliably measured they are disclosed on the same basis as other contingent liabilities.

Where the fair value of the group's interest in the assets, liabilities and contingent liabilities acquired exceeds the cost of the business combination, negative goodwill arises. The Group, after consideration of the assets, liabilities and contingent liabilities acquired and the cost of the combination, recognises negative goodwill on the balance sheet and releases this to profit and loss, up to the fair value of non-monetary assets acquired, over the periods in which the non-monetary assets are recovered and any excess over the fair value of non-monetary assets in the income statement over the period expected to benefit. The negative goodwill is released in line with the depreciation of the freehold property being 2% cost (50 years).

Turnover

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

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2024, is being amortised evenly over its estimated useful life of ten years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property

-

10% on reducing balance and 2% on cost

Plant and machinery

-

15% on reducing balance

Additions are depreciated for a full year in the year of acquisition and none in the year of disposal.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.