REGISTERED NUMBER: 10366229 (England and Wales)

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

FOR

WATERSIDE COLOURS LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Income Statement

10

Consolidated Other Comprehensive Income

11

Consolidated Balance Sheet

12

Company Balance Sheet

13

Consolidated Statement of Changes in Equity

14

Company Statement of Changes in Equity

15

Consolidated Cash Flow Statement

16

Notes to the Consolidated Cash Flow Statement

17

Notes to the Consolidated Financial Statements

18

DIRECTORS:

S Singhania

V Singhania

S A Banks-Cooper

W J Cortazzi

REGISTERED OFFICE:

21 Marina Court

Castle Street

Hull

HU1 1TJ

REGISTERED NUMBER:

10366229 (England and Wales)

AUDITORS:

Azets Audit Services Limited

12 King Street

Leeds

LS1 2HL

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

Waterside Colours is a distributor of dyestuffs, pigments and performance products to the paper industries worldwide.

REVIEW OF BUSINESS

The Group's financial statements include the consolidation of its two wholly owned subsidiaries, Waterside Colours Inc in the USA and its Dutch subsidiary Waterside Colours BV.

In this year of trading, the Group has experienced a small decrease in revenue, whilst at the same time an increase in operating profit and net assets.

The Group results as reported in the financial statements are summarised as:

31.12.25

31.12.24

+ / -

£

£

£

Turnover

18,956,984

20,401,997

(1,445,013

)

Operating profit

864,985

784,402

80,583

Net assets

5,053,642

4,396,246

657,396

The Group has continued to develop new markets at a time when traditional markets continue to experience reduced volumes, leading to competition pushing for market share and resulting in turnover decreasing marginally by £1,445,013 (-7%). There has been an increase in operating profit compared to the previous year's results of £80,583 (+10%) due to improved gross margin and the reduction of costs due to the factory closure which is now complete. Net assets increased by £657,396 from £4,396,246 to £5,053,642.

Waterside Colours Inc continues to pursue growth by sales expansion into the US.

At the end of the year the company completed negotiations with a competitor in Europe to acquire its stock and certain business assets which will add to the company's market share in Europe.

Going concern and future developments

The Directors intend to build upon the Group's established market position and recent progress, continuing to develop the business both organically and through strategic opportunities. Particular emphasis remains on expanding the Group's presence in international markets, especially within the United States, while integrating the customer relationships and business assets acquired during the year.

In preparing this Strategic Report, the Directors have considered the Group's ability to continue as a going concern, including an assessment of expected trading performance, cash generation and liquidity for a period of at least twelve months from the date of approval of these financial statements.

Whilst inflationary pressures have moderated, cost increases relating to employment, transportation and raw materials continue to present challenges. In addition, competitive market conditions and wider economic uncertainties continue to influence demand across the sector. The Group continues to address these factors through disciplined cost management, operational efficiencies, pricing strategies and the ongoing development of new markets and customers.

The Directors believe that the Group's market development initiatives, together with the expansion of its customer base and the acquisition of complementary business assets in Europe during the year, provide a solid platform for future growth and position the business well to benefit from improvements in market conditions as they emerge.

Having considered the Group's financial resources, forecast cash flows and trading prospects, the Directors remain confident in the Group's ability to meet its obligations as they fall due. Accordingly, they consider it appropriate to prepare the financial statements on the going concern basis.

PRINCIPAL RISKS AND UNCERTAINTIES

In common with other sales orientated businesses the principal risks to the business are

- changes in the Group's markets;

- competitive pressures;

- materials pricing and availability;

- regulatory changes.

Whilst certain aspects of raw material availability and pricing are ultimately outside of the Group's control, well established relationships with suppliers exist.

The Group operates in multiple currencies with consequent foreign exchange exposure. A significant amount of natural hedging against exchange risk is achieved through purchasing and financing polices, and the position is regularly monitored by the Board.

ON BEHALF OF THE BOARD:

S A Banks-Cooper - Director

22 July 2026

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

DIVIDENDS

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

RESEARCH AND DEVELOPMENT

The Group conducts research and development in respect of new and existing products and, in conjunction with the parent company, their manufacture.

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.

S Singhania

V Singhania

S A Banks-Cooper

W J Cortazzi

FINANCIAL INSTRUMENTS

The Group has a normal business level of exposure to price, credit, liquidity and cash flow risks arising from trading activities.

The Group trades in a number of different currencies, predominantly the pound sterling and the euro.

The foreign exchange risk is mitigated through euro-denominated materials purchases and bank borrowings.

DISCLOSURE IN THE STRATEGIC REPORT

The Group has chosen in accordance with s414C (11) to the Companies Act 2006 to set out the Strategic Report Information required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained within the Directors Report. It has done so in respect of research and development and financial instruments.

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 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, Azets Audit Services Limited, are deemed to be re-appointed under section 487(2) of the Companies Act 2006..

ON BEHALF OF THE BOARD:

S A Banks-Cooper - Director

22 July 2026

Opinion

We have audited the financial statements of Waterside Colours Limited (the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 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 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 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.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council's website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

- Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;

- Reviewing minutes of meetings of those charged with governance;

- Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

- Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias; and

- Performing audit work over the timing and recognition of revenue and in particular whether it has been recorded in the correct accounting period.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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.

Jessica Lawrence (Senior Statutory Auditor)

for and on behalf of Azets Audit Services Limited

12 King Street

Leeds

LS1 2HL

27 July 2026

TURNOVER

3

18,956,984

20,401,997

Cost of sales

13,686,742

15,185,516

GROSS PROFIT

5,270,242

5,216,481

Distribution costs

905,167

927,280

Administrative expenses

3,750,090

3,504,799

4,655,257

4,432,079

614,985

784,402

Other operating income

250,000

-

OPERATING PROFIT

5

864,985

784,402

Interest receivable and similar income

12,445

4,044

877,430

788,446

Interest payable and similar expenses

7

69,805

119,177

PROFIT BEFORE TAXATION

807,625

669,269

Tax on profit

8

150,229

173,061

PROFIT FOR THE FINANCIAL YEAR

657,396

496,208

Profit attributable to:

Owners of the parent

657,396

496,208

PROFIT FOR THE YEAR

657,396

496,208

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

657,396

496,208

Total comprehensive income attributable to:

Owners of the parent

657,396

496,208

FIXED ASSETS

Intangible assets

10

1,159,603

331,924

Tangible assets

11

215,544

348,430

Investments

12

-

-

1,375,147

680,354

CURRENT ASSETS

Stocks

13

7,206,301

4,929,094

Debtors

14

4,198,962

4,273,124

Cash at bank and in hand

1,897,285

1,004,696

13,302,548

10,206,914

CREDITORS

Amounts falling due within one year

15

9,624,053

6,461,586

NET CURRENT ASSETS

3,678,495

3,745,328

TOTAL ASSETS LESS CURRENT LIABILITIES

5,053,642

4,425,682

PROVISIONS FOR LIABILITIES

19

-

29,436

NET ASSETS

5,053,642

4,396,246

CAPITAL AND RESERVES

Called up share capital

20

10,000

10,000

Retained earnings

21

5,043,642

4,386,246

SHAREHOLDERS' FUNDS

5,053,642

4,396,246

The financial statements were approved by the Board of Directors and authorised for issue on 22 July 2026 and were signed on its behalf by:

S A Banks-Cooper - Director

FIXED ASSETS

Intangible assets

10

1,159,603

331,924

Tangible assets

11

215,544

348,430

Investments

12

39,274

39,274

1,414,421

719,628

CURRENT ASSETS

Stocks

13

6,676,639

4,732,079

Debtors

14

4,280,401

4,310,399

Cash at bank and in hand

1,823,206

930,031

12,780,246

9,972,509

CREDITORS

Amounts falling due within one year

15

9,127,043

6,252,124

NET CURRENT ASSETS

3,653,203

3,720,385

TOTAL ASSETS LESS CURRENT LIABILITIES

5,067,624

4,440,013

PROVISIONS FOR LIABILITIES

19

-

29,436

NET ASSETS

5,067,624

4,410,577

CAPITAL AND RESERVES

Called up share capital

20

10,000

10,000

Retained earnings

5,057,624

4,400,577

SHAREHOLDERS' FUNDS

5,067,624

4,410,577

Company's profit for the financial year

657,047

507,112

The financial statements were approved by the Board of Directors and authorised for issue on 22 July 2026 and were signed on its behalf by:

S A Banks-Cooper - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2024

10,000

3,890,038

3,900,038

Changes in equity

Total comprehensive income

-

496,208

496,208

Balance at 31 December 2024

10,000

4,386,246

4,396,246

Changes in equity

Total comprehensive income

-

657,396

657,396

Balance at 31 December 2025

10,000

5,043,642

5,053,642

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2024

10,000

3,893,465

3,903,465

Changes in equity

Total comprehensive income

-

507,112

507,112

Balance at 31 December 2024

10,000

4,400,577

4,410,577

Changes in equity

Total comprehensive income

-

657,047

657,047

Balance at 31 December 2025

10,000

5,057,624

5,067,624

Cash flows from operating activities

Cash generated from operations

1

(347,298

)

(44,116

)

Interest paid

(69,805

)

(119,177

)

Tax paid

(200,809

)

(73,671

)

Net cash from operating activities

(617,912

)

(236,964

)

Cash flows from investing activities

Purchase of intangible fixed assets

(959,821

)

(20,438

)

Purchase of tangible fixed assets

(4,329

)

(37,050

)

Interest received

12,445

4,044

Net cash from investing activities

(951,705

)

(53,444

)

Cash flows from financing activities

New loans in year

3,229,666

-

Loan repayments in year

(767,460

)

(355,842

)

Net cash from financing activities

2,462,206

(355,842

)

Increase/(decrease) in cash and cash equivalents

892,589

(646,250

)

Cash and cash equivalents at beginning of year

2

1,004,696

1,650,946

Cash and cash equivalents at end of year

2

1,897,285

1,004,696

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

31.12.25

31.12.24

£

£

Profit before taxation

807,625

669,269

Depreciation charges

268,854

278,995

Loss on disposal of fixed assets

503

-

Finance costs

69,805

119,177

Finance income

(12,445

)

(4,044

)

1,134,342

1,063,397

Increase in stocks

(2,277,207

)

(251,156

)

Decrease/(increase) in trade and other debtors

74,162

(333,218

)

Increase/(decrease) in trade and other creditors

721,405

(523,139

)

Cash generated from operations

(347,298

)

(44,116

)

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

1,897,285

1,004,696

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

1,004,696

1,650,946

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

1,004,696

892,589

1,897,285

1,004,696

892,589

1,897,285

Debt

Debts falling due within 1 year

(2,072,150

)

(2,462,206

)

(4,534,356

)

(2,072,150

)

(2,462,206

)

(4,534,356

)

Total

(1,067,454

)

(1,569,617

)

(2,637,071

)

1.	STATUTORY INFORMATION

Waterside Colours 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 (£).

Monetary assets in these financial statements are rounded to the nearest £1.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

Going concern

These accounts have been prepared under the going concern principle. At the time of approving the financial statements, the directors believe that the group have adequate resources to continue in operational existence for a period of at least one year from the date of approval. In making their assessment of going concern, the directors have also considered forecasts for the group and economic factors generally. Accordingly, these financial statements have been prepared on the going concern basis.

Financial Reporting Standard 102 - reduced disclosure exemptions

The parent company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows;

the requirement of Section 3 Financial Statement Presentation paragraph 3.17(d);

the requirements of Section 11 Financial Instruments paragraphs 11.39 to 11.48A;

the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.29;

the requirement of Section 33 Related Party Disclosures paragraph 33.7.

Basis of consolidation

Subsidiaries are all entities over which the Group has the power to govern the financial and operating policies generally accompanying a shareholding of more than one half of the voting rights. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Group controls another entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date that control ceases.

The Group uses the purchase method of accounting to account for the acquisition of subsidiaries. The cost of an acquisition is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date, irrespective of the extent of the minority interest. The excess of the cost of acquisition over the fair value of the Group's share of identifiable assets is recorded as goodwill.

Transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealised losses are also eliminated but considered an impairment indicator of the asset transferred. Accounting policies of subsidiaries have been changed (where necessary) to ensure consistency with the policies adopted by the Group.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the Company's accounting policies, the Directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The following estimates have the most significant effect on amounts recognised in the financial statements.

Depreciation and amortisation

The depreciation policy has been set according to management's experience of the useful lives of a typical asset in each category, something which is reviewed annually. It is not considered practical to use a per unit basis to allocate depreciation without undue cost and therefore amounts are charged annually. The depreciation charged during the year in respect of tangible fixed assets was £136,712 (2024 - £136,605) and the amortisation of intangible fixed assets charged in the year was £132,142 (2024 - £142,390). The Directors consider this is a fair reflection of the benefits derived from the consumption of the assets during the year.

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 2016, is being amortised evenly over its estimated useful life of four 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.

Patents and licences are being amortised evenly over their estimated useful life of five years.

Computer software is being amortised evenly over its estimated useful life of five years.

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

-

Straight line over 10 years

Long leasehold

-

Over the term of the lease

Plant and machinery

-

10% - 20% on cost

Fixtures and fittings

-

20% on cost

Computer equipment

-

20% on cost

Stocks

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