REGISTERED NUMBER: 09327499 (England and Wales)

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements for the Year Ended 31 December 2025

for

Compass Engineering Holdings Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Independent Auditors' Report

5

Consolidated Statement of Comprehensive Income

8

Consolidated Balance Sheet

9

Company Balance Sheet

10

Consolidated Statement of Changes in Equity

11

Company Statement of Changes in Equity

12

Consolidated Cash Flow Statement

13

Notes to the Consolidated Cash Flow Statement

14

Notes to the Consolidated Financial Statements

15

DIRECTORS:

Dr T P Broadbent

Mrs S M Broadbent

Mr A D Hibbins

SECRETARY:

Mrs E M Broadbent

REGISTERED OFFICE:

Whaley Road

Barugh Green

Barnsley

South Yorkshire

S75 1HT

REGISTERED NUMBER:

09327499 (England and Wales)

AUDITORS:

Harris & Co Limited

Chartered Accountants & Statutory Auditor

Marland House

13 Huddersfield Road

Barnsley

South Yorkshire

S70 2LW

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

REVIEW OF BUSINESS

The group's profit after tax has decreased from £925,608 to £688,749. The group's shareholders funds have also decreased from £9,665,509 to £9,354,260.

i) Compass Engineering Limited

Profit after tax of £878,196 (2024: £1,030,449) on turnover of £19,896,246 (2024: £22,601,828).

Shareholders funds have decreased from £3,904,276 last year to £3,782,472 this year.

ii) Compass Holdings Limited

Profit after tax of £810,551 (2024: £2,395,160).

Shareholders funds have decreased from £5,761,334 last year to £5,571,887 this year.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risk for Compass Engineering Limited arises from inaccurate pricing and poor contract management. The Directors actively monitor pricing and contract management on a regular basis to ensure accuracy, competitiveness and to take into account market fluctuations.

Rigorous credit control procedures and appropriate credit insurance is undertaken to mitigate the financial risks the company may be exposed to from non-payment by clients.

Health and safety and employee welfare continues to be a high priority. The company employees a dedicated Health and Safety Manager who is highly qualified to monitor, oversee and implement procedures in line with OHSAS 18001 (Occupational Health and Safety Standard achieved October 2012). In August 2021 the company achieved accreditation to ISO 45001 (the international standard for occupational health and safety).

The Company is committed to employee enhancement and retention. The company has invested in management training and continues to work with local educational establishments to employ apprentices and/or trainees to ensure a continuation of skilled and experienced employees for the future.

The principal risk for Compass Holdings Limited arises from the company's potential exposure to a reduction in values of investments. These risks are managed by having a diversified portfolio of investments. The company has a strong balance sheet to be able to withstand any potential reductions.

ON BEHALF OF THE BOARD:

Dr T P Broadbent - Director

11 August 2026

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

PRINCIPAL ACTIVITY

The principal activity of the Group in the year under review was that of structural engineers.

DIVIDENDS

The total distribution of dividends for the year ended 31 December 2025 will be £ 999,998 .

DIRECTORS

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

Dr T P Broadbent

Mrs S M Broadbent

Mr A D Hibbins

Other changes in directors holding office are as follows:

Mr K Broadbent ceased to be a director after 31 December 2025 but prior to the date of this report.

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.

AUDITORS

The auditors, Harris & Co Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Dr T P Broadbent - Director

11 August 2026

Opinion

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

In our opinion the financial statements:

-	give a true and fair view of the state of the Group's and of the Parent Company affairs as at 31 December 2025 and of the Group's profit for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

-	the Parent Company financial statements are not in agreement with the accounting records and returns; or

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

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

Responsibilities of directors

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

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

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report 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:

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

-

Enquiring of management, including obtaining and reviewing supporting documentation, concerning the company's policies and procedures relating to:

-

Identifying, evaluating and complying with laws and regulations and whether they were aware of

any instances of non-compliance;

-

Detecting and responding to the risks of fraud and whether they have knowledge of any actual,

suspected or alleged fraud;

-

The internal controls established to mitigate risk related to fraud or non-compliance with laws &

regulations;

-

Obtaining an understanding of the legal and regulatory frameworks that the company operates in, focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations of the company. The key laws and regulations we considered in this context included the UK Companies Act, tax legislation, data protection, anti bribery, employment and health & safety regulation.

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 Auditors' Report.

Audit response to risks identified

Our procedures to respond to risks identified included the following:

-

Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations;

-

Enquiring of management concerning actual and potential litigation and claims;

-

Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risk of material misstatement due to fraud; and

-

In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing the judgements used in accounting estimates to assess whether these may be indicative of potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

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 is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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 an Auditors' Report 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.

Tom Garner CA CTA (Senior Statutory Auditor)

for and on behalf of Harris & Co Limited

Chartered Accountants & Statutory Auditor

Marland House

13 Huddersfield Road

Barnsley

South Yorkshire

S70 2LW

11 August 2026

TURNOVER

4

19,896,246

22,601,828

Cost of sales

15,345,228

17,744,726

GROSS PROFIT

4,551,018

4,857,102

Administrative expenses

4,160,805

4,204,098

390,213

653,004

Other operating income

5

417,269

416,619

OPERATING PROFIT

7

807,482

1,069,623

Income from fixed asset investments

-

12,421

Interest receivable and similar income

129,109

143,695

129,109

156,116

936,591

1,225,739

Interest payable and similar expenses

8

-

4

PROFIT BEFORE TAXATION

936,591

1,225,735

Tax on profit

9

247,842

300,127

PROFIT FOR THE FINANCIAL YEAR

688,749

925,608

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

688,749

925,608

Profit attributable to:

Owners of the parent

688,749

925,608

Total comprehensive income attributable to:

Owners of the parent

688,749

925,608

FIXED ASSETS

Tangible assets

12

1,172,273

1,222,544

Investments

13

-

-

Investment property

14

3,333,019

3,333,019

4,505,292

4,555,563

CURRENT ASSETS

Stocks

15

1,610

3,530

Debtors

16

5,838,466

1,822,347

Cash at bank and in hand

6,197,355

7,352,535

12,037,431

9,178,412

CREDITORS

Amounts falling due within one year

17

(7,098,755

)

(3,979,633

)

NET CURRENT ASSETS

4,938,676

5,198,779

TOTAL ASSETS LESS CURRENT LIABILITIES

9,443,968

9,754,342

PROVISIONS FOR LIABILITIES

18

(89,708

)

(88,833

)

NET ASSETS

9,354,260

9,665,509

CAPITAL AND RESERVES

Called up share capital

19

33,704

33,704

Revaluation reserve

20

76,598

76,598

Capital redemption reserve

20

15,645

15,645

Other reserves

20

38,558

38,558

Retained earnings

20

9,189,755

9,501,004

SHAREHOLDERS' FUNDS

9,354,260

9,665,509

The financial statements were approved by the Board of Directors and authorised for issue on 11 August 2026 and were signed on its behalf by:

Dr T P Broadbent - Director

FIXED ASSETS

Tangible assets

12

-

-

Investments

13

35,431

35,431

Investment property

14

-

-

35,431

35,431

CURRENT ASSETS

Debtors

16

68,303

68,303

CREDITORS

Amounts falling due within one year

17

(68,303

)

(68,303

)

TOTAL ASSETS LESS CURRENT LIABILITIES

35,431

35,431

CAPITAL AND RESERVES

Called up share capital

19

33,704

33,704

Capital redemption reserve

20

1,727

1,727

SHAREHOLDERS' FUNDS

35,431

35,431

Company's profit for the financial year

999,998

3,999,991

The financial statements were approved by the Board of Directors and authorised for issue on 11 August 2026 and were signed on its behalf by:

Dr T P Broadbent - Director

Called up

share

Retained

Revaluation

capital

earnings

reserve

£

£

£

Balance at 1 January 2024

33,704

12,575,387

76,598

Changes in equity

Dividends

-

(3,999,991

)

-

Total comprehensive income

-

925,608

-

Balance at 31 December 2024

33,704

9,501,004

76,598

Changes in equity

Dividends

-

(999,998

)

-

Total comprehensive income

-

688,749

-

Balance at 31 December 2025

33,704

9,189,755

76,598

Capital

redemption

Other

Total

reserve

reserves

equity

£

£

£

Balance at 1 January 2024

15,645

38,558

12,739,892

Changes in equity

Dividends

-

-

(3,999,991

)

Total comprehensive income

-

-

925,608

Balance at 31 December 2024

15,645

38,558

9,665,509

Changes in equity

Dividends

-

-

(999,998

)

Total comprehensive income

-

-

688,749

Balance at 31 December 2025

15,645

38,558

9,354,260

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2024

33,704

-

1,727

35,431

Changes in equity

Dividends

-

(3,999,991

)

-

(3,999,991

)

Total comprehensive income

-

3,999,991

-

3,999,991

Balance at 31 December 2024

33,704

-

1,727

35,431

Changes in equity

Dividends

-

(999,998

)

-

(999,998

)

Total comprehensive income

-

999,998

-

999,998

Balance at 31 December 2025

33,704

-

1,727

35,431

Cash flows from operating activities

Cash generated from operations

1

42,440

1,892,642

Interest paid

-

(4

)

Tax paid

(250,822

)

(473,919

)

Net cash from operating activities

(208,382

)

1,418,719

Cash flows from investing activities

Purchase of tangible fixed assets

(89,694

)

(211,403

)

Purchase of fixed asset investments

-

(41,647

)

Sale of tangible fixed assets

13,785

10,900

Sale of fixed asset investments

-

960,880

Interest received

129,109

143,695

Dividends received

-

12,421

Net cash from investing activities

53,200

874,846

Cash flows from financing activities

Equity dividends paid

(999,998

)

(3,999,991

)

Net cash from financing activities

(999,998

)

(3,999,991

)

Decrease in cash and cash equivalents

(1,155,180

)

(1,706,426

)

Cash and cash equivalents at beginning of year

2

7,352,535

9,058,961

Cash and cash equivalents at end of year

2

6,197,355

7,352,535

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

31.12.25

31.12.24

£

£

Profit before taxation

936,591

1,225,735

Depreciation charges

126,752

111,145

Profit on disposal of fixed assets

(574

)

(21,002

)

Finance costs

-

4

Finance income

(129,109

)

(156,116

)

933,660

1,159,766

Decrease/(increase) in stocks

1,920

(1,920

)

(Increase)/decrease in trade and other debtors

(4,016,119

)

2,837,784

Increase/(decrease) in trade and other creditors

3,122,979

(2,102,988

)

Cash generated from operations

42,440

1,892,642

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

6,197,355

7,352,535

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

7,352,535

9,058,961

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.25

Cash flow

At 31.12.25

£

£

£

Net cash

Cash at bank and in hand

7,352,535

(1,155,180

)

6,197,355

7,352,535

(1,155,180

)

6,197,355

Total

7,352,535

(1,155,180

)

6,197,355

1.	STATUTORY INFORMATION

Compass Engineering 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.

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

2.	STATEMENT OF COMPLIANCE

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.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared on a going concern basis under the historical cost convention, modified to include the revaluation of investment properties and certain financial instruments at fair value.

Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. On this basis the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Compass Engineering Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

All financial statements are made up to 31 December 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venture's under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

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 principal accounting policies and significant judgements and estimates applied in the preparation of these financial statements are set out below. These policies, judgements and estimates have been consistently applied to all years presented unless otherwise stated.

Useful lives and impairment of fixed assets

The annual depreciation charge for tangible assets and their carrying amount is determined by the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually and amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.

Investment property

Investment property is property (land, a building, or part of a building, or both) held by the owner under lease. Under FRS 102 investment property rented to another group entity are treated as property, plant and equipment and therefore accounted for using the cost model.

Investment property (other than any investment property rented to another group entity that have been transferred to property, plant and equipment) are measured at fair value, with changes in fair value recognised in profit or loss.

Impairment of debtors

The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.

Long-term contracts

Management use their knowledge and experience to estimate the expected fabrication and other costs by contract. These estimates have a direct impact on the revenues, costs, debtors and creditors balances associated with accounting for contracts.

Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Turnover - continued

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

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 30 years

Plant and machinery

-

20% on cost straight line and 10% on cost straight line

Fixtures and fittings

-

10% on cost straight line

Motor vehicles

-

25% on reducing balance

Computer equipment

-

20% on cost straight line

All fixed assets are initially recorded at cost.

Fixed asset investments

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

Stocks

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

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.Current or deferred taxation assets and liabilities are not discounted .Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

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