REGISTERED NUMBER: 09686568 (England and Wales)

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements for the Year Ended 31 October 2025

for

Claydon Family Holdings Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Income Statement

9

Consolidated Other Comprehensive Income

10

Consolidated Balance Sheet

11

Company Balance Sheet

12

Consolidated Statement of Changes in Equity

13

Company Statement of Changes in Equity

14

Consolidated Cash Flow Statement

15

Notes to the Consolidated Cash Flow Statement

16

Notes to the Consolidated Financial Statements

18

DIRECTORS:

J Claydon

O Claydon

S Claydon

D Claydon

SECRETARY:

D Claydon

REGISTERED OFFICE:

Lake House

Market Hill

Royston

Hertfordshire

SG8 9JN

REGISTERED NUMBER:

09686568 (England and Wales)

AUDITORS:

Hardcastle Burton LLP

Lake House

Market Hill

Royston

Hertfordshire

SG8 9JN

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

REVIEW OF BUSINESS

The year ended 31 December 2025 has been a challenging trading period for the Group. Revenue and profitability were significantly impacted by weaker market conditions within the agricultural sector, reduced customer confidence and ongoing economic uncertainty affecting investment decisions by farming businesses in both the UK and European markets. Despite these challenges, the directors believe that the Group has responded effectively to difficult trading conditions and has continued to position itself for future growth.

The directors monitor the following key performance indicators:

2025

2024

£'000000

£'000000

Turnover

8,942

14,210

Gross profit

2,770

5,337

Net (loss)/profit

(282

)

2,389

Net assets

10,682

11,113

Following three exceptionally strong trading years, during which the Group achieved record levels of sales and profitability, the current year saw a significant reduction in demand from the agricultural sector. Historically, the Group's principal revenue streams have been generated from the sale of Hybrid Trailed Drills to European customers and Hybrid Mounted Drills within the UK market, supplemented by sales of Straw Harrow, TerraStar and Terrablade products, together with recurring spare parts revenue.

Market conditions during the year were adversely affected by lower agricultural commodity prices, which reduced farm profitability and delayed capital investment decisions. In addition, uncertainty surrounding agricultural support schemes and changes to government policies resulted in a cautious trading environment across the sector. These factors contributed to reduced order intake and lower turnover compared with the previous year.

The directors have maintained a strong focus on cash generation and working capital management throughout the year. Inventory levels have been reduced, enabling the release of cash whilst continuing to ensure the availability of machines and components to meet customer demand at short notice. The Group continues to monitor raw material costs closely, particularly steel and tungsten carbide, which remain important factors in determining product profitability and pricing strategy.

Despite the difficult trading environment, investment in product development has continued. During the year the Group further enhanced its product range with the development and launch of front hopper and toolbar variants of the Evo drill range. These innovations have been designed to meet evolving customer requirements and to support participation in agricultural grant-funded schemes where available. The directors believe these new products will provide opportunities to expand the Group's presence in both UK and European markets in future years.

Whilst the results for the year are below targets, the directors remain confident in the long-term prospects of the Group. The Group has a strong reputation within its sector, an established customer base and a history of product innovation. These strengths, together with continued focus on operational efficiency and product development, position the Group well to benefit when market conditions improve.

We continue to farm the agricultural land with the Claydon system which is deemed the most cost effective way on our soil type to increase yield and reduce cost. The SFI (Sustainable Farming Incentive) has been utilised to the maximum possible extent to which we can whilst still growing crops. There is more work to be done to achieve the payment but we are getting paid from the government to plant cover crops, catch crops, direct drill and plant a companion crop equating up to £370/Ha.

PRINCIPAL RISKS AND UNCERTAINTIES

During the course of its business the main trading company of the group. Claydon Yield-o-Meter Ltd is exposed to relatively low levels of financial risks which are dealt with in the next section.

In regards to the agricultural side of the group, unfortunately agriculture has many risks primarily including the weather which has huge impacts on crop yields, commodity prices, currency strength, staffing and labour, input and machinery prices/costs too. It is also an industry that is rarely able to do anything to enhance the price of its product which is defined by the commodities market. Fortunately for Claydon Family Holdings the farm is run using Claydon equipment which offers a considerably lower cost of establishing crops than the majority of other systems out there. The system has proven over 2 decades to also maintain yields above the majority of systems out there too. As the limited company CFH and the partnership ETC are both owned and run by Claydon family members the payroll is kept very low too, significantly reducing risks compared to other businesses in the sector.

Other risks include but are not limited to the failure to comply with legislative and regulatory requirements including environmental and litigation failures, business continuity and the actions of customers and competitors. The Group has implemented risk controls and loss mitigation plans but cannot give absolute assurance that such procedures will be effective in identifying or controlling each of the operational risks faced by the Group.

FINANCIAL RISK MANAGEMENT POLICIES

The overall aim of the group financial risk management policy is to minimise potential adverse effects on financial performance and net assets. In the course of the business, the group is exposed primarily to foreign exchange risk, liquidity risk and credit risk. Interest rate is not considered significant as the group does not have any liabilities that accrue significant interest and interest income on bank deposits is not material.

The group manages the principal financial risk within policies and operating parameters approved by the Board of Directors. The group does not enter into speculative transactions.

i) Foreign currency risk

The group operates domestically and overseas. The group does hedge certain cash flows when the directors believe this to be appropriate.

ii) Liquidity risk

The group's policy on liquidity risk is to ensure that sufficient cash is available to fund on-going operations without the need to carry significant net debt. Where appropriate financing can be negotiated, assets may be purchased under finance lease agreement. The extent of this financing is not considered material.

iii) Credit risk

Credit risk arises on financial instruments such as trade receivables. Policies and procedures exist to ensure that

customers have an appropriate credit history. Machinery is generally not released to customers until payment is received in full. Overall, the group considers that it is not exposed to a significant amount of credit risk.

OUTLOOK AHEAD

Management are focused on continued product development and identifying new products and markets in which to trade.

ON BEHALF OF THE BOARD:

O Claydon - Director

30 July 2026

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

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of the manufacture and sale of specialised agricultural machinery to the farming industry.

DIVIDENDS

The total distribution of dividends for the year ended 31 October 2025 will be £ 148,800 .

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 November 2024 to the date of this report.

J Claydon

O Claydon

S Claydon

D Claydon

DISCLOSURE IN THE STRATEGIC REPORT

The group has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the director's report. It has done so in respect of principal risks and uncertainties.

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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

ON BEHALF OF THE BOARD:

O Claydon - Director

30 July 2026

Opinion

We have audited the financial statements of Claydon Family Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 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 October 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:

Our approach was as follows:

We obtained an understanding of the legal and regulatory frameworks that are applicable to the group and determined that the most significant frameworks which are directly relevant to specific assertions in the financial statements are those that related to the reporting framework (FRS 102 and Companies Act 2006).

In addition, we concluded that there are certain significant laws and regulations which may have an effect on the determination of the amounts and disclosures in the financial statements being those relating to the environment, occupational health and safety.

We obtained an understanding to how the group is complying with those frameworks by making enquiries of management and those responsible for legal and compliance procedures. We corroborated our enquiries through correspondence with management and a review of any correspondence received from regulatory bodies.

We assessed the susceptivity of the group's financial statements to material misstatement, including how fraud might occur by meeting with management from various parts of the business to understand the systems and controls of the group.

Based on our understanding we designed our audit procedures to identify non-compliance with such laws and regulations identified in the paragraphs above. Our procedures involved; journal entry testing; focusing on manual journals and journals indicating large or unusual transactions based on our understanding of the business; enquiries of management and focused testing in relation to revenue and management override.

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.

Kristi Johnson ACA CTA (Senior Statutory Auditor)

for and on behalf of Hardcastle Burton LLP

Lake House

Market Hill

Royston

Hertfordshire

SG8 9JN

30 July 2026

TURNOVER

3

8,942,332

14,210,062

Cost of sales

6,172,048

8,873,365

GROSS PROFIT

2,770,284

5,336,697

Administrative expenses

3,032,326

2,868,316

(262,042

)

2,468,381

Other operating income

9,285

12,462

OPERATING (LOSS)/PROFIT

5

(252,757

)

2,480,843

Interest receivable and similar income

39,920

3,946

(212,837

)

2,484,789

Interest payable and similar expenses

6

72,423

95,327

(LOSS)/PROFIT BEFORE TAXATION

(285,260

)

2,389,462

Tax on (loss)/profit

7

(2,985

)

611,102

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(282,275

)

1,778,360

(Loss)/profit attributable to:

Owners of the parent

(282,275

)

1,778,360

(LOSS)/PROFIT FOR THE YEAR

(282,275

)

1,778,360

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(282,275

)

1,778,360

Total comprehensive income attributable to:

Owners of the parent

(282,275

)

1,778,360

FIXED ASSETS

Tangible assets

11

4,987,540

5,136,079

Investments

12

-

-

4,987,540

5,136,079

CURRENT ASSETS

Stocks

13

4,744,178

5,379,330

Debtors

14

1,276,658

1,434,020

Cash at bank and in hand

2,156,107

2,946,042

8,176,943

9,759,392

CREDITORS

Amounts falling due within one year

15

1,245,788

2,256,529

NET CURRENT ASSETS

6,931,155

7,502,863

TOTAL ASSETS LESS CURRENT LIABILITIES

11,918,695

12,638,942

CREDITORS

Amounts falling due after more than one year

16

(1,034,514

)

(1,209,516

)

PROVISIONS FOR LIABILITIES

20

(202,485

)

(316,655

)

NET ASSETS

10,681,696

11,112,771

CAPITAL AND RESERVES

Called up share capital

21

160

160

Capital redemption reserve

22

40

40

Retained earnings

22

10,681,496

11,112,571

SHAREHOLDERS' FUNDS

10,681,696

11,112,771

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

O Claydon - Director

FIXED ASSETS

Tangible assets

11

4,539,065

2,773,951

Investments

12

200

200

4,539,265

2,774,151

CURRENT ASSETS

Stocks

13

81,545

78,831

Debtors

14

380,921

102,571

Cash at bank

219,729

280,876

682,195

462,278

CREDITORS

Amounts falling due within one year

15

94,151

59,576

NET CURRENT ASSETS

588,044

402,702

TOTAL ASSETS LESS CURRENT LIABILITIES

5,127,309

3,176,853

CAPITAL AND RESERVES

Called up share capital

21

160

160

Capital redemption reserve

22

40

40

Retained earnings

22

5,127,109

3,176,653

SHAREHOLDERS' FUNDS

5,127,309

3,176,853

Company's profit for the financial year

2,099,256

187,890

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

O Claydon - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 November 2023

200

10,490,211

-

10,490,411

Changes in equity

Company purchase of own shares

(40

)

(1,000,000

)

40

(1,000,000

)

Dividends

-

(156,000

)

-

(156,000

)

Total comprehensive income

-

1,778,360

-

1,778,360

Balance at 31 October 2024

160

11,112,571

40

11,112,771

Changes in equity

Dividends

-

(148,800

)

-

(148,800

)

Total comprehensive income

-

(282,275

)

-

(282,275

)

Balance at 31 October 2025

160

10,681,496

40

10,681,696

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 November 2023

200

4,144,763

-

4,144,963

Changes in equity

Company purchase of own shares

(40

)

(1,000,000

)

40

(1,000,000

)

Dividends

-

(156,000

)

-

(156,000

)

Total comprehensive income

-

187,890

-

187,890

Balance at 31 October 2024

160

3,176,653

40

3,176,853

Changes in equity

Dividends

-

(148,800

)

-

(148,800

)

Total comprehensive income

-

2,099,256

-

2,099,256

Balance at 31 October 2025

160

5,127,109

40

5,127,309

Cash flows from operating activities

Cash generated from operations

1

160,618

3,061,843

Interest paid

(65,694

)

(88,445

)

Interest element of hire purchase payments paid

(6,729

)

(6,882

)

Loss/(gain) on foreign exchange

(176,520

)

211,909

Tax paid

(280,076

)

(679,085

)

Net cash from operating activities

(368,401

)

2,499,340

Cash flows from investing activities

Purchase of tangible fixed assets

(91,900

)

(555,159

)

Sale of tangible fixed assets

70,656

77,277

Interest received

39,920

3,946

Net cash from investing activities

18,676

(473,936

)

Cash flows from financing activities

Loan repayments in year

(133,820

)

(136,122

)

New HP loans in year

-

37,343

HP repayments in year

(36,982

)

(35,427

)

Amount introduced by directors

201,500

120,000

Amount withdrawn by directors

(322,115

)

(190,837

)

Company purchase of own shares

-

(1,000,000

)

Equity dividends paid

(148,800

)

(156,000

)

Net cash from financing activities

(440,217

)

(1,361,043

)

(Decrease)/increase in cash and cash equivalents

(789,942

)

664,361

Cash and cash equivalents at beginning of year

2

2,945,924

2,281,563

Cash and cash equivalents at end of year

2

2,155,982

2,945,924

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

31.10.25

31.10.24

£

£

(Loss)/profit before taxation

(285,260

)

2,389,462

Depreciation charges

191,097

212,633

Profit on disposal of fixed assets

(21,314

)

(16,658

)

Loss/(gain) on foreign exchange

176,520

(211,909

)

Finance costs

72,423

95,327

Finance income

(39,920

)

(3,946

)

93,546

2,464,909

Decrease in stocks

635,152

447,717

Decrease in trade and other debtors

230,831

174,321

Decrease in trade and other creditors

(798,911

)

(25,104

)

Cash generated from operations

160,618

3,061,843

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 October 2025

31.10.25

1.11.24

£

£

Cash and cash equivalents

2,156,107

2,946,042

Bank overdrafts

(125

)

(118

)

2,155,982

2,945,924

Year ended 31 October 2024

31.10.24

1.11.23

£

£

Cash and cash equivalents

2,946,042

2,281,687

Bank overdrafts

(118

)

(124

)

2,945,924

2,281,563

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.11.24

Cash flow

At 31.10.25

£

£

£

Net cash

Cash at bank and in hand

2,946,042

(789,935

)

2,156,107

Bank overdrafts

(118

)

(7

)

(125

)

2,945,924

(789,942

)

2,155,982

Debt

Finance leases

(110,239

)

36,982

(73,257

)

Debts falling due within 1 year

(139,264

)

(4,200

)

(143,464

)

Debts falling due after 1 year

(1,136,259

)

138,020

(998,239

)

(1,385,762

)

170,802

(1,214,960

)

Total

1,560,162

(619,140

)

941,022

1.	STATUTORY INFORMATION

Claydon Family Holdings Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going concern

The directors have prepared cash flow forecasts and projections covering a period of at least 12 months from the date of approval of these financial statements. These forecasts indicate that the group will have sufficient financial resources and liquidity to meet its obligations as they fall due throughout the forecast period.

In preparing these forecasts, the directors have considered the group's current trading performance, available cash resources and reasonably foreseeable downside scenarios. The forecasts demonstrate that adequate funds are expected to be available to enable the group to continue trading and to meet its liabilities as they fall due.

Basis of consolidation

Acquisition accounting is used to account for the subsidiaries of the Group. Identifiable assets and liabilities of the entities acquired are measured initially in the consolidated balance sheet at their fair value at the date of acquisition. The results and cash flows of acquired entities are brought into the group accounts only from the date of acquisition. The difference between the fair value of the net identifiable assets acquired and the fair value of the purchase consideration is goodwill.

Inter-company transactions, balances and unrealised gains on transactions between group companies are eliminated. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.

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

The preparation of the financial statements requires management to make judgements, estimates and assumptions that effect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. The nature of estimation means that actual outcomes could differ from those estimates. The following judgements have had a significant effect on amounts recognised in the financial statements:

a) The warranty provision included in the accounts is estimated on a monthly basis using the total revenue of wholegood stock and historical warranty cost data. The current years' warranty expense is compared to the previous years' provision to aid management in applying the most appropriate rate possible.

b) The annual depreciation charge for all assets is sensitive to changes in the estimated useful economic

lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually.

c) A stock provision is made for slow moving stock. Where the stock provision does not adequately write down the value of certain parts and machines an additional provision is made.