REGISTERED NUMBER: 13458944 (England and Wales)

UNITED FILLINGS GROUP LIMITED

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2025

Page

Company Information

1

Group Strategic Report

2

to

3

Report of the Directors

4

to

5

Report of the Independent Auditors

6

to

9

Consolidated Statement of Comprehensive Income

10

Consolidated Statement of Financial Position

11

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

to

17

Notes to the Consolidated Financial Statements

18

to

31

DIRECTORS:

S T Prue

J M Prue

REGISTERED OFFICE:

Falcon Mill

27 Vine Street

Billingborough

Sleaford

Lincolnshire

NG34 0QE

REGISTERED NUMBER:

13458944 (England and Wales)

AUDITORS:

Duncan & Toplis Audit Limited, Statutory Auditor

5 Resolution Close

Endeavour Park

Boston

Lincolnshire

PE21 7TT

BANKERS:

National Westminster Bank

51 Market Place

Long Eaton

Nottinghamshire

NG10 1JP

SOLICITORS:

Geldards LLP

The Arc

Enterprise Way

Nottingham

NG2 1EN

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

REVIEW OF BUSINESS

The results of the group for the year are as shown in the annexed financial statements and show a pre-tax loss of (£1,263,546) for the year 2025 compared to profit for 2024 profit £427,150.

The loss made in the year was a result of current trading conditions. The market has decreased since the boom during Covid which has resulted in several small businesses going bust. Three large customers have also gone into administration in the year due to a change in retailer buying patterns creating exceptional bad debts. The business previously undertaken with these customers has been taken on by smaller business and so some of the turnover will be maintained.

The group have reduced costs by making redundancies and undertaking cost cutting exercises. The business is now in a stronger financial position with reduced overheads.

A refinancing programme took place post year end and plans to move work between sites to further reduce costs is a continuing exercise.

Post year end, a large bad debt in 2026 has halted the group's turnover progression in the first half of the year. However, the business has developed a key product for the market which is started marketing at the end of 2025. A new customer base is expected with the launch of the new product and both existing and new customers are expected to increase turnover in the second half of 2026.

As a result of the trading conditions, the directors undertook an impairment review of goodwill and deemed it appropriate to impair this at the year end.

The board feel 2026 will be a difficult year as they restructure the groups manufacturing facilities and finances.

The board of directors are comfortable the business is viable based on the plans it has in place in developing fresh markets and controls of reducing exposure to debt as accounts are restricted.

PRINCIPAL RISKS AND UNCERTAINTIES

The execution of the group's strategy is subject to a number of risks.

Key business risks and uncertainties affecting the group are related to the far east oil price increases as this brings rising cost of materials which then incorporates prices rises having to be passed onto customers causing a possible market slowdown.

The rising cost of minimum wage causes cheaper products to be unprofitable. As a result further price rises, reductions in staff and reductions in supply are required.

Rising costs of borrowing is also a risk to business.

KEY PERFORMANCE INDICATORS ("KPI'S")

Given the straightforward nature of the business, the group's directors are of the opinion that a detailed analysis using KPIs is not necessary for an understanding of the development, performance or position of the business. The group uses gross profit % and EBITDA as its primary measures.

Key financial results

2025

2024

Turnover (£'000)

8,364

10,646

Gross profit/(loss) (£'000)

1,657

2,574

Gross profit margin

19.8%

24.2%

(Loss)/Profit after tax (£'000)

(1,006

)

307

EBITDA (£'000)

(598

)

604

EBITDA excluding exceptional (£'000)

(247

)

604

Net Assets (£'000)

528

1,550

ON BEHALF OF THE BOARD:

S T Prue - Director

17 July 2026

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

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of the manufacture of quality cushion products for the furniture industry.

DIVIDENDS

The total distribution of dividends for the year ended 31 July 2025 is £16,000.

RESEARCH AND DEVELOPMENT

New products are continually being developed to cope with the increasing demand of customers looking for alternative and unique products. Developing new products for other markets.

FUTURE DEVELOPMENTS

The business has been reducing cost by redundancies on shop floor and managerial staff, further cost reductions have taken place by agreed reduction in loan note payments.

New markets are being explored where products can be bought and sold without manufacturing costs.

The business is continuing to evaluate a strategy to consolidate factories to save future costs.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 August 2024 to the date of this report.

S T Prue

J M Prue

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 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.

ON BEHALF OF THE BOARD:

S T Prue - Director

17 July 2026

Opinion

We have audited the financial statements of United Fillings Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 July 2025 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, 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 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 July 2025 and of the group's loss for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We have identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience, knowledge of the sector, a review of regulatory and legal correspondence and through discussions with Directors and other management obtained as part of the work required by auditing standards. We have also discussed with the Directors and other management the policies and procedures relating to compliance with laws and regulations. We communicated laws and regulations throughout the team and remained alert to any indications of non-compliance throughout the audit.

The potential impact of different laws and regulations varies considerably. Firstly, the company is subject to laws and regulations that directly impact the financial statements (for example financial reporting legislation) and we have assessed the extent of compliance with such laws as part of our financial statements audit. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including risk of override of controls) and determined that the principal risks were related to management bias in accounting estimates and judgemental areas of the financial statements such as depreciation and residual values, as well as the risk of inappropriate journal entries to increase reported profitability. Audit procedures performed by the engagement team included the identification and testing of material and unusual journal entries and challenging management on key accounting estimates, assumptions and judgements made in the preparation of the financial statements. We carried out detailed substantive tests on accounting estimates, including reviewing the methods used by management to make those estimates, re-performing the calculation, and reviewing the outcome post year-end.

Secondly, the company is subject to other laws and regulations where the consequence for non-compliance could have a material effect on the amounts or disclosures in the financial statements. We identified the following areas as those most likely to have such an effect:

• Health and Safety regulations;

• Employment law; and

• Quality standards for products.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management and inspection. This inspection included discussions with senior management around whether any incidents occurred in the year, a review of Health & Safety policies in place and a review of legal and professional fees for evidence of non-compliance. Throughout these procedures, if we became aware of any non-compliance, we consider the impact on the procedures performed on the related financial statement items.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. As with any audit, there is a greater risk of non-detection of irregularities as these may involve collusion, intentional omissions of the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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.

Sally-Anne Hurn FCA (Senior Statutory Auditor)

for and on behalf of Duncan & Toplis Audit Limited, Statutory Auditor

5 Resolution Close

Endeavour Park

Boston

Lincolnshire

PE21 7TT

17 July 2026

TURNOVER

3

8,364,127

10,646,301

Cost of sales

6,707,483

8,072,160

GROSS PROFIT

1,656,644

2,574,141

Distribution costs

956,125

1,106,177

Administrative expenses

1,943,984

1,028,495

2,900,109

2,134,672

(1,243,465

)

439,469

Other operating income

6,634

16,688

OPERATING (LOSS)/PROFIT

5

(1,236,831

)

456,157

Interest receivable and similar income

1,816

-

(1,235,015

)

456,157

Interest payable and similar expenses

7

28,531

29,007

(LOSS)/PROFIT BEFORE TAXATION

(1,263,546

)

427,150

Tax on (loss)/profit

8

(257,418

)

120,449

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(1,006,128

)

306,701

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(1,006,128

)

306,701

(Loss)/profit attributable to:

Owners of the parent

(1,006,128

)

306,701

Total comprehensive income attributable to:

Owners of the parent

(1,006,128

)

306,701

FIXED ASSETS

Intangible assets

11

328,263

867,704

Tangible assets

12

941,725

1,000,995

Investments

13

-

-

1,269,988

1,868,699

CURRENT ASSETS

Stocks

14

270,583

339,357

Debtors

15

1,044,471

1,440,101

Cash at bank and in hand

24,959

28,374

1,340,013

1,807,832

CREDITORS

Amounts falling due within one year

16

1,522,991

1,326,577

NET CURRENT (LIABILITIES)/ASSETS

(182,978

)

481,255

TOTAL ASSETS LESS CURRENT LIABILITIES

1,087,010

2,349,954

CREDITORS

Amounts falling due after more than one year

17

(516,667

)

(673,334

)

PROVISIONS FOR LIABILITIES

22

(42,349

)

(126,498

)

NET ASSETS

527,994

1,550,122

CAPITAL AND RESERVES

Called up share capital

23

10,000

10,000

Retained earnings

24

517,994

1,540,122

SHAREHOLDERS' FUNDS

527,994

1,550,122

The financial statements were approved by the Board of Directors and authorised for issue on 17 July 2026 and were signed on its behalf by:

S T Prue - Director

FIXED ASSETS

Intangible assets

11

-

-

Tangible assets

12

-

-

Investments

13

2,125,125

2,125,125

2,125,125

2,125,125

CURRENT ASSETS

Debtors

15

223,000

207,000

CREDITORS

Amounts falling due within one year

16

160,000

160,000

NET CURRENT ASSETS

63,000

47,000

TOTAL ASSETS LESS CURRENT LIABILITIES

2,188,125

2,172,125

CREDITORS

Amounts falling due after more than one year

17

2,152,125

2,136,125

NET ASSETS

36,000

36,000

CAPITAL AND RESERVES

Called up share capital

23

10,000

10,000

Retained earnings

24

26,000

26,000

SHAREHOLDERS' FUNDS

36,000

36,000

Company's profit for the financial year

16,000

82,000

The financial statements were approved by the Board of Directors and authorised for issue on 17 July 2026 and were signed on its behalf by:

S T Prue - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 August 2023

10,000

1,315,421

1,325,421

Changes in equity

Total comprehensive income

-

306,701

306,701

Dividends

-

(82,000

)

(82,000

)

Balance at 31 July 2024

10,000

1,540,122

1,550,122

Changes in equity

Total comprehensive income

-

(1,006,128

)

(1,006,128

)

Dividends

-

(16,000

)

(16,000

)

Balance at 31 July 2025

10,000

517,994

527,994

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 August 2023

10,000

26,000

36,000

Changes in equity

Dividends

-

(82,000

)

(82,000

)

Total comprehensive income

-

82,000

82,000

Balance at 31 July 2024

10,000

26,000

36,000

Changes in equity

Dividends

-

(16,000

)

(16,000

)

Total comprehensive income

-

16,000

16,000

Balance at 31 July 2025

10,000

26,000

36,000

Cash flows from operating activities

Cash generated from operations

1

(67,352

)

802,834

Interest paid

(28,531

)

(29,007

)

HMRC interest

1,816

-

Tax paid

(45,740

)

(72,487

)

Net cash from operating activities

(139,807

)

701,340

Cash flows from investing activities

Purchase of tangible fixed assets

(39,717

)

(75,302

)

Net cash from investing activities

(39,717

)

(75,302

)

Cash flows from financing activities

Loan repayments in year

(156,667

)

(260,000

)

Equity dividends paid

(16,000

)

(82,000

)

Net cash from financing activities

(172,667

)

(342,000

)

(Decrease)/increase in cash and cash equivalents

(352,191

)

284,038

Cash and cash equivalents at beginning of year

2

(160,866

)

(444,904

)

Cash and cash equivalents at end of year

2

(513,057

)

(160,866

)

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

2025

2024

£

£

(Loss)/profit before taxation

(1,263,546

)

427,150

Depreciation charges

98,987

104,178

Loss on disposal of fixed assets

-

4,150

Amortisation

39,441

39,441

Impairment of goodwill

500,000

-

Finance costs

28,531

29,007

Finance income

(1,816

)

-

(598,403

)

603,926

Decrease/(increase) in stocks

68,774

(40,702

)

Decrease in trade and other debtors

489,201

546,936

Decrease in trade and other creditors

(26,924

)

(307,326

)

Cash generated from operations

(67,352

)

802,834

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:

Year ended 31 July 2025

31.7.25

1.8.24

£

£

Cash and cash equivalents

24,959

28,374

Bank overdrafts

(538,016

)

(189,240

)

(513,057

)

(160,866

)

Year ended 31 July 2024

31.7.24

1.8.23

£

£

Cash and cash equivalents

28,374

47,586

Bank overdrafts

(189,240

)

(492,490

)

(160,866

)

(444,904

)

3.	ANALYSIS OF CHANGES IN NET DEBT

Other

non-cash

At 1.8.24

Cash flow

changes

At 31.7.25

£

£

£

£

Net cash

Cash at bank

and in hand

28,374

(3,415

)

24,959

Bank overdrafts

(189,240

)

(348,776

)

(538,016

)

(160,866

)

(352,191

)

(513,057

)

Debt

Debts falling due

within 1 year

(160,000

)

156,667

(156,667

)

(160,000

)

Debts falling due

after 1 year

(673,334

)

-

156,667

(516,667

)

(833,334

)

156,667

-

(676,667

)

Total

(994,200

)

(195,524

)

-

(1,189,724

)

1.	STATUTORY INFORMATION

United Fillings Group 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 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.

The group's accounting reference date is 31 July. These financial statements are for the period 3 August 2024 to 1 August 2025 (Prior year - 29 July 2023 to 2 August 2024).

The group continues to be impacted by a fall in the market since Covid. Three large businesses went into administration in the year due to changes in retailer buying patterns. The trade from these businesses has moved into smaller businesses, allowing for some turnover to be maintained.

The group have reduced costs by making redundancies and cutting overheads, with plans to move work between sites to further reduce costs a continuing exercise. A refinancing programme also started in November 2025.

Post year end, the business has developed a key product for the market and started marketing this at the end of 2025 and beginning of 2026. New customer base is expected with the launch of the new product and extra sales are expected within the present customer base. This will develop turnover levels during the last half of the year.

The board feel 2026 will be a difficult year as they restructure the groups manufacturing facilities and finances. This is further impacted by a large bad debt in 2026 which has halted the groups turnover progression in the first half of the year.

The board of directors are comfortable the business is viable based on the plans it has in place in developing fresh markets and controls of reducing exposure to debt as accounts are restricted.

The directors regard the preparation of the financial statements on a going concern basis as appropriate.

Basis of consolidation

The group financial statements consolidate the financial statements of United Fillings Group Limited and its subsidiary undertakings drawn up to 31 July 2025.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Significant judgements and estimates

In the application of the Company's accounting policies, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

There are currently no key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements.

Turnover

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

Sales of goods are recognised upon delivery to the customer, or upon collection by the customer, when title has passed.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2021, has been amortised evenly over its estimated useful life of twenty five years.

Any permanent diminution in value is written off to the income statement.

Tangible fixed assets

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

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.

Freehold property

- 2% on cost

Short leasehold

- over the term of the lease

Plant and machinery

- at varying rates on cost

Fixtures and fittings

- at varying rates on cost

Motor vehicles

- at varying rates on cost

Computer equipment

- at varying rates on cost

Stocks

Stocks and work in progress are stated at the lower of cost and estimated selling price, less further costs expected to be incurred to completion and disposal. Provision is made for obsolete and slow moving stock. Cost is determined on a first in first out basis, and includes all direct costs incurred.