The financial statements are prepared under the historical cost convention and in accordance with the FRS 102 Section 1A Small Entities - The Financial Reporting Standard applicable in the UK and Republic of Ireland and the Companies Act 2006. The financial statements have been prepared on a going concern basis following confirmation of the directors continued support. 

The directors confirm that, in their opinion, the company is a going concern. Although the shareholder loans are formally repayable on demand, the lenders - major shareholders - have not sought repayment and in the opinion of the directors are unlikely to do so. They have also agreed to convert the loans into equity, should the company choose to do so, at any time. This provides a credible option to strengthen the balance sheet without drawing on cash reserves. If the loans were not repaid or are converted into equity, the balance sheet would show a surplus of £56,316. On this basis, and having reviewed current trading and future cash flow forecasts, the directors are of the opinion that the the going concern basis remains appropriate.

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.