REGISTERED NUMBER: 16042075 (England and Wales)

Group Strategic Report,

Report of the Directors and

Consolidated Financial Statements

for the Period 1 April 2025 to 31 December 2025

for

Company 2 2024 Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

5

Consolidated Statement of Profit or Loss

9

Consolidated Statement of Profit or Loss and Other Comprehensive Income

0

Consolidated Statement of Financial Position

10

Company Statement of Financial Position

12

Consolidated Statement of Changes in Equity

13

Company Statement of Changes in Equity

14

Consolidated Statement of Cash Flows

15

Notes to the Consolidated Statement of Cash Flows

16

Notes to the Consolidated Financial Statements

17

DIRECTORS:

Mr A A Caridis

Mr R Kane

Mr J M Strang

Mr D A Tambyah

REGISTERED OFFICE:

Unit 5a, Frontier Park Frontier Avenue

Rishton

Blackburn

Lancashire

BB1 3AL

REGISTERED NUMBER:

16042075 (England and Wales)

AUDITORS:

Thompson Wright (Audit) Limited

Ebenezer House

Ryecroft

Newcastle under Lyme

Staffordshire

ST5 2BE

The directors present their strategic report of the company and the group for the period 1 April 2025 to 31 December 2025.

REVIEW OF BUSINESS

The group continues to concentrate on the core business of manufacturing and supply of heat and thermal equipment, from its site in the North West.

Performance for the nine month period to 31 December 2025 saw revenue remain in line with the prior twelve months ending 31 March 2025. Revenue year on year has continued to grow over the group in both the Tek-Dry Systems Ltd and Hunt Heat Exchangers Ltd. Revenue growth is expected to continue into future periods.

It is a fundamental objective to maintain a sustainable growth plan, and the group has taken the time during the year to focus on a wider spread of market sectors.

KEY PERFORMANCE INDICATORS

The key performance indicator detailed below is recognised as an integral part of monitoring the business.

Dec-25

Mar-25

Revenue

5,830,274

5,476,769

It is the responsibility of the commercial team to regularly monitor and review these figures and report the results and any corrective actions to the board.

PRINCIPAL RISKS AND UNCERTAINTIES

There are certain risks, which could materially and adversely impact the group's results compared to expectation. A summary of the key risks is set out below. This is not an exhaustive list of the factors that could adversely impact group profitability.

FINANCIAL INSTRUMENTS

The group uses various financial instruments; these include cash and various items, such as trade debtors, trade creditors and loans that arise directly from its operations.

The existence of these financial instruments exposes the group to several financial risks which are described in more detail below.

The main risks arising from the group's financial instruments are categorised as market risk, credit risk and liquidity risk. The directors review and agree policies for managing these risks and they are summarised below.

MARKET RISK

The directors are constantly monitoring both the quality and price of the products it acquires and the range of goods it supplies to minimise the market risk.

INTEREST RATE RISK

The group's policy throughout the year has been to maintain liquid funds at the bank and avoid incurring too much interest whilst also funding the repayment of hire purchase obligations and loan repayments.

Where the group has had to undertake short term borrowings via hire purchase obligations, the group's exposure to interest rate fluctuations on its borrows its management by the use of fixed and floating facilities. It is the group's policy to minimise the amount of borrowings at floating rates of interest.

CREDIT RISK

To counteract the risk of bad debts the business has increased the use of credit checking and monitoring facilities to assess the risk to the group. If a significant risk is identified then a further review is made and where appropriate protective actions are undertaken.

LIQUIDITY RISK

The business has a very strong relationship with its bank. The group has the facilities available to meet its needs on an ongoing basis. These facilities are reviewed on a regular basis, by both the bank and the management, and are in accordance with the needs of the group.

FUTURE DEVELOPMENTS

The directors are keen to expand the core business, through organic sustainable growth, supply chain partnerships, and through strategic acquisition opportunities.

The business has a continued re-investment programme replacing production equipment with newer technology to enable the group to compete in increasingly competitive markets, which is constantly reviewed in line with business opportunities.

ON BEHALF OF THE BOARD:

Mr D A Tambyah - Director

30 April 2026

The directors present their report with the financial statements of the company and the group for the period 1 April 2025 to 31 December 2025.

DIVIDENDS

No dividends will be distributed for the period ended 31 December 2025.

DIRECTORS

The directors who have held office during the period from 1 April 2025 to the date of this report are as follows:

Mr A A Caridis - appointed 1 April 2025

Mr R Kane - appointed 1 April 2025

Mr J M Strang - appointed 1 April 2025

Mr D A Tambyah - appointed 1 April 2025

Mr D J Wilkinson - resigned 1 April 2025

Mr T Fryars - resigned 1 April 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 UK-adopted international accounting standards. 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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, Thompson Wright (Audit) Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr D A Tambyah - Director

30 April 2026

Opinion

We have audited the financial statements of Company 2 2024 Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 31 December 2025 which comprise the Consolidated Statement of Profit or Loss, the Consolidated Statement of Profit or Loss and Other Comprehensive Income, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity, the Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the UK.

In our opinion:

-	the financial statements give a true and fair view of the state of the group's and of the parent company's affairs as at 31 December 2025 and of the group's profit for the period then ended;

-	the group financial statements have been properly prepared in accordance with IFRSs as adopted by the UK;

-	the parent company financial statements have been properly prepared in accordance with IFRSs as adopted by the UK and as applied in accordance with the provisions of the Companies Act 2006; and

-	the financial statements 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:

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 Senior Statutory Auditor ensured that the audit 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 applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the fabrications industry;

- we focused on specific 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, taxation legislation, data protection, anti-bribery, employment, environmental, other industry specific accreditations and health and safety legislation;

- 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 an 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

- considering the internal controls 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;

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

- investigated the rationale behind significant or unusual transactions.

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;

- reading the minutes of meetings of those charged with governance;

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

- reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, 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 inspection 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.

Jeremy Bostock BA (Hons) BFP FCA (Senior Statutory Auditor)

for and on behalf of Thompson Wright (Audit) Limited

Ebenezer House

Ryecroft

Newcastle under Lyme

Staffordshire

ST5 2BE

30 April 2026

CONTINUING OPERATIONS

Revenue

3

5,830,274

5,476,769

Changes in inventories of finished goods and work in progress

(1,645,669

)

(2,253,958

)

Raw materials and consumables

2,547,103

3,526,285

Other external expenses

202,663

143,676

Staff costs

4

2,087,227

2,086,052

Depreciation

662,465

495,528

Other operating expenses

991,605

1,321,398

4,845,394

5,318,981

Finance costs

5

(94,844

)

(266,350

)

Finance income

5

47,733

(531,703

)

PROFIT/(LOSS) BEFORE INCOME TAX

6

937,769

(640,265

)

Income tax

7

(123,439

)

24,306

PROFIT/(LOSS) FOR THE PERIOD

814,330

(615,959

)

Profit/(loss) attributable to:

Owners of the parent

383,269

(638,528

)

Non-controlling interests

431,061

22,569

814,330

(615,959

)

ASSETS

NON-CURRENT ASSETS

Owned

Intangible assets

11

1

1

Property, plant and equipment

12

1,297,684

1,445,448

Right-of-use

Property, plant and equipment

12, 22

4,250,729

4,753,801

Investments

13

-

-

5,548,414

6,199,250

CURRENT ASSETS

Inventories

14

3,622,100

3,440,163

Trade and other receivables

15

1,979,430

2,877,393

Cash and cash equivalents

16

1,748,079

979,481

7,349,609

7,297,037

TOTAL ASSETS

12,898,023

13,496,287

EQUITY

SHAREHOLDERS' EQUITY

Called up share capital

18

7,771,973

7,771,973

Other reserves

19

(7,014,629

)

(7,014,629

)

Retained earnings

19

672,532

289,263

1,429,876

1,046,607

Non-controlling interests

17

1,423,733

992,672

TOTAL EQUITY

2,853,609

2,039,279

LIABILITIES

NON-CURRENT LIABILITIES

Financial liabilities - borrowings

Lease liabilities

21, 22

4,592,272

5,219,808

Deferred tax

23

317,976

353,889

4,910,248

5,573,697

CURRENT LIABILITIES

Trade and other payables

20

4,347,262

5,312,367

Financial liabilities - borrowings

Lease liabilities

21, 22

627,537

500,059

Tax payable

159,367

70,885

5,134,166

5,883,311

TOTAL LIABILITIES

10,044,414

11,457,008

TOTAL EQUITY AND LIABILITIES

12,898,023

13,496,287

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:

Mr D A Tambyah - Director

ASSETS

NON-CURRENT ASSETS

Owned

Intangible assets

11

-

-

Property, plant and equipment

12

-

-

Right-of-use

Investments

13

7,771,973

-

7,771,973

-

TOTAL ASSETS

7,771,973

-

EQUITY

SHAREHOLDERS' EQUITY

Called up share capital

18

7,771,973

-

TOTAL EQUITY

7,771,973

-

LIABILITIES

TOTAL LIABILITIES

-

-

TOTAL EQUITY AND LIABILITIES

7,771,973

-

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:

Mr D A Tambyah - Director

Called up

share

Retained

Other

capital

earnings

reserves

£

£

£

Balance at 1 April 2024

7,771,973

2,107,309

(7,014,629

)

Changes in equity

Reduction in share capital

-

289,244

-

Dividends

-

(1,468,762

)

-

Total comprehensive income

-

(638,528

)

-

Balance at 31 March 2025

7,771,973

289,263

(7,014,629

)

Changes in equity

Total comprehensive income

-

383,269

-

Balance at 31 December 2025

7,771,973

672,532

(7,014,629

)

Non-controlling

Total

Total

interests

equity

£

£

£

Balance at 1 April 2024

2,864,653

54,569

2,919,222

Changes in equity

Reduction in share capital

289,244

-

289,244

Dividends

(1,468,762

)

-

(1,468,762

)

Total comprehensive income

(638,528

)

938,103

299,575

Balance at 31 March 2025

1,046,607

992,672

2,039,279

Changes in equity

Total comprehensive income

383,269

431,061

814,330

Balance at 31 December 2025

1,429,876

1,423,733

2,853,609

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Changes in equity

Balance at 31 March 2025

-

-

-

Changes in equity

Issue of share capital

7,771,973

-

7,771,973

Balance at 31 December 2025

7,771,973

-

7,771,973

Cash flows from operating activities

Cash generated from operations

1

1,394,975

896,999

Interest paid

-

(14,029

)

Lease interest paid

(94,844

)

(252,321

)

Tax paid

(70,870

)

(104,166

)

Net cash from operating activities

1,229,261

526,483

Cash flows from investing activities

Purchase of tangible fixed assets

(11,628

)

(29,722

)

Sale of tangible fixed assets

-

4,500

Interest received

47,733

18,000

-

472,642

Net cash from investing activities

36,105

465,420

Cash flows from financing activities

Loan repayments in year

-

(39,584

)

Payment of lease liabilities

(500,060

)

(917,996

)

Amount withdrawn by directors

-

(5,484

)

Loans from/to associates

3,292

321,861

Equity dividends paid

-

(200,000

)

Net cash from financing activities

(496,768

)

(841,203

)

Increase in cash and cash equivalents

768,598

150,700

Cash and cash equivalents at beginning of period

2

979,481

828,781

Cash and cash equivalents at end of period

2

1,748,079

979,481

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

Period

1.4.25

to

Year Ended

31.12.25

31.3.25

£

£

Profit/(loss) before income tax

937,769

(640,265

)

Depreciation charges

662,466

861,211

Profit on disposal of fixed assets

-

(365,684

)

Finance costs

94,844

266,350

Finance income

(47,733

)

531,703

1,647,346

653,315

Increase in inventories

(181,937

)

(1,587,277

)

Decrease in trade and other receivables

894,671

178,200

(Decrease)/increase in trade and other payables

(965,105

)

1,652,761

Cash generated from operations

1,394,975

896,999

2.	CASH AND CASH EQUIVALENTS

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

Period ended 31 December 2025

31.12.25

1.4.25

£

£

Cash and cash equivalents

1,748,079

979,481

Year ended 31 March 2025

31.3.25

1.4.24

£

£

Cash and cash equivalents

979,481

828,781

1.	STATUTORY INFORMATION

Company 2 2024 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.

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

2.	ACCOUNTING POLICIES

Basis of preparation

These financial statements have been prepared in accordance with UK-adopted international accounting standards and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS. The financial statements have been prepared under the historical cost convention.

On incorporation, the Company became the new parent of the Group through a reorganisation in which the controlling party was unchanged. The transaction is considered a group reorganisation under common control and therefore outside the scope of IFRS 3 Business Combinations. The Group has applied the merger accounting method in accordance with the guidance in IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors, selecting an accounting policy that provides information that is relevant and reliable.

In line with the merger accounting method, assets and liabilities of the subsidiaries are recognised at their existing carrying amounts, without fair-value remeasurement. The consolidated financial statements are prepared as if the new parent had always been the parent of the Group, and therefore the comparative information reflects the financial performance and position of the subsidiaries as if the Group had existed in its current form throughout all periods presented.

Equity components, including any difference between consideration and net assets acquired, are recorded within equity reserves, not profit or loss.

Where required, equivalent disclosures are given in the group accounts of Company 2 2024 Limited for the year ended 31 December 2025.

The company is a wholly owned subsidiary of Heat and Control PTY Limited, a company in Australia, which prepares publicly available consolidated financial statements in accordance with IFRS. This company is included in the consolidated financial statements of Heat and Control PTY Limited for the year ended 31 December 2025. These statements are available from 407 Creek Road, Mt Gravatt, Qld 4122, Australia.

These financial statements have been prepared with a period shorter than one year. This shortened period is to align with the Heat and Control group.

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity.

The consolidated financial statements incorporate the results of the business combinations using the acquisition method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the date of acquisition. The results of acquired operations are included in the consolidated Profit and Loss Account from the date on which control is obtained.

Critical accounting judgements and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions

The company makes estimates and assumption concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Critical areas of judgement

The work in progress included stock internally generated and which the directors apply deductions to in order to assess its value excluding any profit element and allowing for future expected costs. This is applied consistently year on year and based on management's assessment of costs to complete and anticipated profit margins historically achieved.

In categorizing leases as finance leases or operating leases, management makes judgements as to whether significant risks and rewards of ownership have transferred to the company as lessee, or the lessee, where the company is a lessor.

Revenue recognition

Sale of Goods

Revenue from the sale of goods is recognised at the point in time when the customers obtains control of the goods which generally at the time of delivery.

Rendering of Services

Revenue from a contract to provide services is recognised over time as the services are rendered based on a fixed price.

Interest revenue

Interest revenue is recognised when it is received.

All revenue is stated net of the amount of value added taxes.

Cash and cash equivalents

Cash represents cash in hand and deposits held on demand with financial institutions. Cash equivalents are short-term, highly-liquid investments with original maturities of three months or less (as at their date of acquisition). Cash equivalents are readily convertible to known amounts of cash and subject to an insignificant risk of change in that cash value.

In the presentation of the Statement of Cash Flows, cash and cash equivalents also include bank overdrafts. Any such overdrafts are shown within borrowings under ‘current liabilities’ on the Statement of Financial Position.

Property, plant and equipment

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Short leasehold

-

Straight line over 10 years

Plant and machinery

-

15% on reducing balance and 15% on cost

Fixtures and fittings

-

15% on reducing balance

Computer equipment

-

33% on cost

Fixed asset additions with a cost below £500 are fully depreciated in the year of acquisition.

Impairment of tangible and intangible assets

At each reporting date, the company reviews the carrying amounts of its tangible fixed assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. 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 for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash- generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Financial instruments

Financial assets at fair value through other comprehensive income

The company does not hold any financial assets at fair value through other comprehensive income.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date.

Financial assets are impaired where there is objective evidence (such as significant financial difficulties on the part of the counterparty or default or significant delay in payment) that the company will be unable to collect all the amounts due under the terms receivable, the amount of such a provision being the difference between the net carrying amount and the present value of the future expected cash flows associated with the impaired receivable. For trade receivables, which are reported net, such provisions are recorded in a separate allowance account with the loss being recognised within administrative expenses. in the

Income Statement. On confirmation that the trade receivable will not be collected, the gross carrying value of the asset is written off against the associated provision.

Derecognition of financial assets

Financial assets are derecognised when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

Financial liabilities

The company recognises financial debt when the company becomes a party to the contractual

provision of the instruments. The company classifies all of its financial liabilities at amortised cost .

Financial liabilities at fair value through profit or loss

Financial liabilities are classified as measured at fair value through profit and loss when the financial liability is held for trading. A financial liability is classified as held for trading if:

- it has been incurred principally for the purpose of repurchasing it in the near term, or

- on initial recognition it is part of a portfolio of identified financial instruments that are managed together and has a recent actual pattern of short-term profit taking, or

- it is a derivative that is not designated and effective hedging instrument.

Financial liabilities at fair value through profit or loss are stated at fair value with any gains or losses arsing on remeasurement recognised in profit or less.

Other financial liabilities

Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.

Derecognisation of financial liabilities

Financial liabilities are derecognised when, and only when, the company's obligations are discharged, cancelled, or they expire.

Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.