REGISTERED NUMBER: 15718975 (England and Wales)

Phillips Family Investments Limited

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements for the Year Ended 31 December 2025

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Consolidated Statement of Comprehensive Income

6

Consolidated Balance Sheet

7

Company Balance Sheet

8

Consolidated Statement of Changes in Equity

9

Company Statement of Changes in Equity

10

Consolidated Cash Flow Statement

11

Notes to the Consolidated Cash Flow Statement

12

Notes to the Consolidated Financial Statements

13

Directors:

A M Wilkins

W H Harvey

R Hopkins

H Phillips

J R Phillips

L Moore

E Phillips

S Phillips

Registered office:

93 Commercial St

Tredegar

Gwent

NP22 3DN

Registered number:

15718975 (England and Wales)

Auditors:

Menzies LLP, Statutory Auditors

5th Floor Hodge House

114-116 St Mary Street

Cardiff

CF10 1DY

The directors present their strategic report of the company and the group for the year ended 31 December 2025.

The group continues its strategy of developing its loan book across a balanced range of product types.

Principal activities

The principal activities of the group are the provision of instalment credit finance, provision of bridging loan finance and the retailing of electrical and other goods.

Review of business

The group made a profit before tax of £6,219,700, made up across the underlying entities as follows:

£

Phillips Family Investments Limited (PFIL)

2,502,083

Family Finance Limited (FF)

1,510,625

Valleys Finance Limited (VF)

1,598,047

Family Vision Limited (FV)

212,011

Seeder Bridging Loans Limited (SBL)

90,487

Family Leasing Limited (FL)

-

Objectives and strategy

The group's Mission Statement is to successfully respond to challenges, and opportunities to deliver profitability in our market during our seventh decade of trading. This has been achieved by ensuring our staff are trained, skilled, motivated and able to deliver outstanding customer outcomes. As a result of this exceptional customer service the group protects its long-term customer relationships whilst continuing to attract new customers. Vigorous vetting procedures with particular emphasis on affordability has resulted in a positive effect on arrears management and provisions. This is encapsulated by our ongoing commitment to Treating Customers Fairly.

Principal risks and uncertainties

The company's financial instruments result in the company's expose to liquidity, credit and cash flow risk. The exposure of the company to the various elements of financial risk are as follows;

Credit risk

The directors consider the main financial risk to the business to be the credit risk of customers defaulting on loans. However, this risk is mitigated by the company's strong cash collection and credit control procedures, and through the checking of customers credit rating and affordability. In addition, a significant number of loans are secured against the underlying asset.

Liquidity and cashflow risk

Liquidity risk is the risk that the company will have insufficient resources available to meet its financial obligations as they fall due. This risk is managed periodically through monitoring of expected cashflows and is enhanced by the significant cashflows generated by the business. As detailed within the creditors more than 1 year note, the terms of the current facilities provide adequate liquidity for the company to continue as a going concern. We have retained the same level of facilities at Siemens, Aldermore and Hampshire Trust.

On behalf of the board:

J R Phillips - Director

30 April 2026

The directors present their report with the financial statements of the company and the group for the year ended 31 December 2025.

Dividends

During the year, dividends totalling £400,000 were declared.

Events since the end of the year

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

Directors

The directors shown below have held office during the whole of the period from 1 January 2025 to the date of this report.

A M Wilkins

W H Harvey

R Hopkins

H Phillips

J R Phillips

Other changes in directors holding office are as follows:

L Moore - appointed 1 October 2025

E Phillips - appointed 1 October 2025

S Phillips - appointed 8 July 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), 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 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, Menzies LLP, Statutory Auditors, will be proposed for re-appointment at the forthcoming Annual General Meeting.

On behalf of the board:

J R Phillips - Director

30 April 2026

Opinion

We have audited the financial statements of Phillips Family Investments Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2025 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 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 three, 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:

Our planning procedures identify the legal and regulatory frameworks applicable to the operations and financial

statements of the company. These are reviewed internally with the audit team including relevant industry experience

and expectations as well as externally with the client management. The key laws and regulations we considered in this context were the UK Companies Act 2006, UK GAAP (FRS 102) and relevant tax legislation.

Once identified, we assess the risks of material misstatements in relation to the laws and regulations, irregularities,

including fraud and adjust our testing accordingly. Our audit procedures include:

- Discussing with Directors and management which areas of the business they believe to be more susceptible to

fraud, and whether they have any knowledge or suspicion of fraudulent activities.

- Discussing with Directors and management the legal and regulatory obligations of the business and whether they

have any knowledge or suspicion of non-compliance.

- Obtaining an understanding of the key controls put in place by the company to address risks identified,

assessing the effectiveness of those and discussing how these are maintained and monitored internally.

- Assessing the risk of management override and review and testing of journal entries made into the accounting

system.

- Challenging assumptions and judgements made by the company in relation to the significant accounting

estimates employed in the preparation of the financial statements.

Despite the audit being planned and conducted in accordance with ISAs (UK) there remains an unavoidable risk that material misstatements in the financial statements may not be detected owing to inherent limitations of the audit, and that by their very nature, any such instances of fraud or irregularities likely involve collusion, forgery, intentional

misrepresentation, or the override of internal controls.

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.

Victoria Carter (Senior Statutory Auditor)

for and on behalf of Menzies LLP, Statutory Auditors

5th Floor Hodge House

114-116 St Mary Street

Cardiff

CF10 1DY

30 April 2026

Turnover

16,255,310

3,018,293

Cost of sales

(2,437,736

)

(497,475

)

Gross profit

13,817,574

2,520,818

Distribution costs

(28,631

)

(4,050

)

Administrative expenses

(7,531,260

)

(1,084,505

)

6,257,683

1,432,263

Other operating income

36,747

2,234

Operating profit

6,294,430

1,434,497

Interest receivable and similar income

9,407

-

6,303,837

1,434,497

Interest payable and similar expenses

4

(84,137

)

(20,244

)

Profit before taxation

5

6,219,700

1,414,253

Tax on profit

6

(801,879

)

(972,647

)

Profit for the financial year

5,417,821

441,606

Other comprehensive income

-

-

Total comprehensive income for the year

5,417,821

441,606

Profit attributable to:

Owners of the parent

5,417,821

441,606

Total comprehensive income attributable to:

Owners of the parent

5,417,821

441,606

Fixed assets

Intangible assets

9

(8,512,010

)

(11,380,301

)

Tangible assets

10

212,274

259,339

Investments

11

1,390

1,390

(8,298,346

)

(11,119,572

)

Current assets

Stocks

12

102,096

83,899

Debtors: amounts falling due within one year

13

20,464,795

23,384,543

Debtors: amounts falling due after more than one year

13

22,077,858

21,050,226

Cash at bank and in hand

1,883,959

889,168

44,528,708

45,407,836

Creditors

Amounts falling due within one year

14

(11,804,089

)

(14,430,016

)

Net current assets

32,724,619

30,977,820

Total assets less current liabilities

24,426,273

19,858,248

Creditors

Amounts falling due after more than one year

15

(12,688,596

)

(13,538,392

)

Net assets

11,737,677

6,319,856

Capital and reserves

Called up share capital

21

6,278,250

6,278,250

Retained earnings

22

5,459,427

41,606

Shareholders' funds

11,737,677

6,319,856

The financial statements were approved by the Board of Directors and authorised for issue on 30 April 2026 and were signed on its behalf by:

J R Phillips - Director

Fixed assets

Intangible assets

9

-

-

Tangible assets

10

-

-

Investments

11

10,832,152

10,832,152

10,832,152

10,832,152

Current assets

Debtors: amounts falling due within one year

13

3,293,450

399,793

Cash at bank

225,101

100

3,518,551

399,893

Creditors

Amounts falling due within one year

14

(3,025,437

)

(1,419,768

)

Net current assets/(liabilities)

493,114

(1,019,875

)

Total assets less current liabilities

11,325,266

9,812,277

Creditors

Amounts falling due after more than one year

15

(2,010,906

)

(3,000,000

)

Net assets

9,314,360

6,812,277

Capital and reserves

Called up share capital

21

6,278,250

6,278,250

Retained earnings

22

3,036,110

534,027

Shareholders' funds

9,314,360

6,812,277

Company's profit for the financial year

2,502,083

934,027

The financial statements were approved by the Board of Directors and authorised for issue on 30 April 2026 and were signed on its behalf by:

J R Phillips - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Changes in equity

Issue of share capital

6,278,250

-

6,278,250

Dividends

-

(400,000

)

(400,000

)

Total comprehensive income

-

441,606

441,606

Balance at 31 December 2024

6,278,250

41,606

6,319,856

Changes in equity

Total comprehensive income

-

5,417,821

5,417,821

Balance at 31 December 2025

6,278,250

5,459,427

11,737,677

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Changes in equity

Issue of share capital

6,278,250

-

6,278,250

Dividends

-

(400,000

)

(400,000

)

Total comprehensive income

-

934,027

934,027

Balance at 31 December 2024

6,278,250

534,027

6,812,277

Changes in equity

Total comprehensive income

-

2,502,083

2,502,083

Balance at 31 December 2025

6,278,250

3,036,110

9,314,360

Cash flows from operating activities

Cash generated from operations

1

3,664,592

5,410,866

Interest paid

(84,137

)

(20,244

)

Tax paid

(968,238

)

(125,052

)

Net cash from operating activities

2,612,217

5,265,570

Cash flows from investing activities

Purchase of intangible fixed assets

(30,600

)

11,672,082

Purchase of tangible fixed assets

(101,609

)

(140,276

)

Sale of intangible fixed assets

-

375,000

Sale of tangible fixed assets

75,463

-

Interest received

9,407

-

Net cash from investing activities

(47,339

)

11,906,806

Cash flows from financing activities

Loan movement

(359,488

)

(685,724

)

Directors loan account movement

(1,210,599

)

(910,201

)

Share issue

-

6,278,250

Equity dividends paid

-

(400,000

)

Acquisition of subsidiaries

-

(22,908,535

)

Cash aquired

-

2,343,002

Net cash from financing activities

(1,570,087

)

(16,283,208

)

Increase in cash and cash equivalents

994,791

889,168

Cash and cash equivalents at beginning of year

2

889,168

-

Cash and cash equivalents at end of year

2

1,883,959

889,168

1.	Reconciliation of profit before taxation to cash generated from operations

Period

14.5.24

Year Ended

to

31.12.25

31.12.24

£

£

Profit before taxation

6,219,700

1,414,253

Depreciation charges

(2,727,733

)

(502,184

)

Profit on disposal of fixed assets

(36,747

)

-

Finance costs

84,137

20,244

Finance income

(9,407

)

-

3,529,950

932,313

(Increase)/decrease in stocks

(18,197

)

3,918

Decrease in trade and other debtors

1,927,657

9,070,692

Decrease in trade and other creditors

(1,774,818

)

(4,596,057

)

Cash generated from operations

3,664,592

5,410,866

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 31 December 2025

31.12.25

1.1.25

£

£

Cash and cash equivalents

1,883,959

889,168

Period ended 31 December 2024

31.12.24

14.5.24

£

£

Cash and cash equivalents

889,168

-

3.	Analysis of changes in net debt

At 1.1.25

Cash flow

At 31.12.25

£

£

£

Net cash

Cash at bank and in hand

889,168

994,791

1,883,959

889,168

994,791

1,883,959

Debt

Finance leases

(127,474

)

22,399

(105,075

)

Debts falling due within 1 year

(7,366,690

)

486,673

(6,880,017

)

Debts falling due after 1 year

(10,489,142

)

(149,584

)

(10,638,726

)

(17,983,306

)

359,488

(17,623,818

)

Total

(17,094,138

)

1,354,279

(15,739,859

)

1.	Statutory information

Phillips Family Investments 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.

Going concern

As at 31 December 2025, the group, comprising Phillips Family Investments Limited (PFIL) as the ultimate parent company and its trading subsidiaries (including Family Finance Limited (FF), Seeder Bridging Loans Limited (SBL), Valleys Finance Limited (VF) and Family Vision Limited (FV), has prepared its financial statements on a going concern basis, which the directors consider appropriate for the following reasons.

Across the group, all trading entities reported profits before tax for the year, supported by positive operational performance in their respective markets and, in the case of SBL, a transition from net current liabilities to a net asset position driven by the successful launch and growth of its loan book during 2025.

PFIL, as the holding company of the group, oversees and supports the activities of its regulated and unregulated lending subsidiaries, including FF, which remains profitable and in a net asset position, with net current assets and cash resources supported by its diversified lending activities across motor finance, rent-to-own, secured and unsecured lending. While the overall loan book within the group reduced during the year due to the managed run-off of the unregulated Bridging portfolio (now written in SBL), the regulated lending books in Rent-to-Own and Unsecured finance delivered strong growth.

SBL's growth has been funded through a combination of support from PFIL and a block bridging facility with a third-party lender. PFIL, through its control of group treasury and capital allocation, has indicated its intention that the group will continue to make funds available to Seeder for at least 12 months from the date of approval of the financial statements, and the external block facility renews annually. The directors acknowledge that, as with any entity relying on group and external facilities, there can be no absolute certainty that such support will continue, but at the date of approval they have no reason to believe that it will not.

VF continues to operate profitably, with modest but positive loan book and customer growth during the year following its earlier regional expansion. During 2025, Valleys repaid its previous loan facility to FF and entered into a new facility with PFIL under similar terms. The directors have received confirmation that this intra-group facility, supported ultimately by PFIL's oversight of group funding, will remain available for at least 12 months from the date of signing the financial statements and, on this basis, consider that VF has adequate resources to continue in operational existence for at least that period.

FV has also reported a second consecutive year of turnover growth, reflecting investment in marketing, product range and geographical expansion into the Midlands. FV participates in the group's centralised treasury arrangements and maintains a receivable balance due from FF. During the period, the group obtained FCA approval to restructure the Rent-to-Own activities by hiving up FV's trade and assets into FF and this took place on 31 March 2026. FV as a limited entity is expected to become dormant once residual liabilities are settled, with the trading name and activities continuing through FF. This restructuring is expected to streamline the group's operational, legal and regulatory position and does not alter the directors' assessment of the group's ability to continue as a going concern.

The group continues to operate against a backdrop of challenging macroeconomic conditions, including the ongoing impact of the Cost-of-Living crisis and sector-specific scrutiny of the motor finance industry. While there has been some contraction in the Motor HP book and a reduction in motor dealership footfall, the group has mitigated these pressures through high levels of forbearance, strong collections performance. The group has never operated Discretionary Commission Arrangements or exclusive/tied dealer arrangements, however commission levels in some cases exceed thresholds stated in the FCA's Motor finance consumer redress scheme as High Commission Arrangements. The directors are however confident any potential claims will meet the "No Better Deal" (NBD) Rebuttal test and have therefore not recognised a provision at this time.

The directors of PFIL have prepared group cash flow forecasts covering at least 12 months from the date of approval of the financial statements, including severe but plausible downside scenarios that reflect macroeconomic stresses, regulatory developments and changes in product mix. Under these scenarios, modest growth is assumed in the Rent-to-Own and Unsecured portfolios, with the performance of motor finance dependent on levels of uncertainty in the market and the competitive landscape . Collection levels are forecast to remain broadly in line with the gross loan book, as in prior periods, with the impact of continued forbearance and household income pressure reflected in the downside cases.

The group retains significant headroom on its block discount and bridging facilities, which renew on an annual basis. While there can be no certainty that these facilities will be renewed beyond their current terms, the directors of PFIL have no reason to believe that renewal will not occur. In the event of non?renewal, existing drawdowns would continue to amortise over their contractual schedules, aligned to the underlying loan collections, which supports liquidity management at group level.

Having considered the forecast cash flows, funding arrangements, intra-group support and the profitability of the group's core businesses, together with the principal risks and uncertainties (including macroeconomic and regulatory risks), the directors of PFIL are confident that the group and its individual subsidiaries have adequate resources to meet their liabilities as they fall due for at least 12 months from the date of approval of the financial statements. Accordingly, they continue to adopt the going concern basis in preparing the consolidated financial statements of PFIL and the individual financial statements of its subsidiaries.

Basis of consolidation

The group financial statements consolidate the financial statements of the company and its subsidiaries undertakings drawn up to 31 December 2025.

Subsidiary undertakings are included using the acquisition method of accounting. Under this method the group income statement and cashflow statement include the results and cashflows of the subsidiaries from the date of acquisition. The purchase consideration has been allocated to the assets and liabilities on the basis of fair value at the date of the acquisition.

Turnover

Turnover represents interest earned on loans and advances and amounts (excluding value added tax) derived from the provision of goods and services to customers during the year.

Income arising on hire purchase agreements and credit instalment sales is credited to the profit and loss each year.

The effective interest rate is the rate that discounts estimated future cash payments or receipts through the expected life of the financial instrument (or a shorter period where appropriate) to the net carrying value of the financial asset or financial liability. The calculation takes into account all contractual terms of the financial instrument.

Income relating to the sale of goods is recognised when substantially all of the risks and rewards of ownership have passed to the customer, generally being at the point of sale.

Income relating to maintenance of goods sold is treated as deferred income and released to the profit and loss account over the period of the maintenance obligation.

Intangible assets

Intangible Assets represent software development costs aquired by the Company and are stated at cost less accumulated amortisation and less accumulated impairment losses. Amortisation is charged to the profit and loss account one straight-line basis over the estimated useful economic life of the asset being 3 to 5 years

Tangible fixed assets

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

Fixtures and Fittings -

Straight line over 5 to 10 years

Motor Vehicles -

Straight line over 4 years

Computer Equipment

Straight line over 3 to 5 years.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to sell. Cost is based on the weighted average principle and includes expenditure incurred in acquiring the stocks and costs incurred in bringing them to their existing location and condition.

Stock is assessed at each reporting date by management to determine whether there is objective evidence that it is impaired. Stock is impaired if objective evidence indicated that a loss event has occurred after the initial recognition of the asset and that the loss event had a negative effect on the estimated future cash flow of that asset that can be estimated reliably.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, 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.

Hire purchase and leasing commitments

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

A defined contribution pension is a post-employment benefit plan under which the company pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution pension plans are recognised as an expense in the profit and loss account for the period during which services are rendered by employees.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of the entities in 2024, will be amortised over 4 years.

Impairment

Loans and advances

Amounts receivable under hire purchase and instalment credit agreements are stated after deduction of the sum which in the opinion of the directors is required as a provision for bad and doubtful debts, taking account of age, cash movements and security value.

Other financial assets (including trade and other debtors)

Financial assets are assessed at each reporting date to determine whether there is objective evidence that it is impaired. A financial asset.is impaired if objective evidence indicated that a loss event has occurred after the initial recognition of the asset and that the loss event had a negative effect on the estimated future cash flow of that asset that can be estimated reliably.

Non-financial assets

The carrying amounts of the entity's non-financial assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset's recoverable amount is estimated. The recoverable amount of an asset is the greater of its value in use and its fair value less costs to sell. In assessing value in use the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.

Reversing an impairment

An impairment loss is reversed if and only if the reasons for.the impairment have ceased to apply.

Impairment losses recognised in prior periods are assessed at each reporting date for any indication that the loss has decreased or no longer exists. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.