REGISTERED NUMBER: 14302165 (England and Wales)

Group Strategic Report,

Report of the Directors and

Consolidated Financial Statements

for the Year Ended 31 January 2026

for

Mantank Environmental Services

Holdings Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Statement of 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 Brown

D A Royle

L Royle

REGISTERED OFFICE:

Hill House Farm

Redmarshall Road

Redmarshall

STOCKTON ON TEES

TS21 1EW

REGISTERED NUMBER:

14302165 (England and Wales)

SENIOR STATUTORY AUDITOR:

Kevin Shotton BA BFP FCA

AUDITORS:

Clive Owen LLP

Chartered Accountants

& Statutory Auditors

Great North House, Allington Way

DARLINGTON

Co Durham

DL1 4QB

The directors present their strategic report of the company and the group for the year ended 31 January 2026.

Mantank Environmental Services Limited has been in existence for over 20 years within the waste management industry, a sector it continues to support to a high standard and provide key services via ongoing growth, development and investment in its staff, processes and equipment. The Group is striving to achieve minimal environmental impact whilst maintaining the highest levels of safety and efficiency while upholding its core values of progression within the industry for the benefit of its employees, customers and suppliers. Environmental impact is a global issue which is principal to the industry Mantank operates in and is also pivotal to the day to day decisions of the business - its depots continue to be accredited to ISO9001, ISO14001, ISO45001, PAS99 and are members of the British Safety Council as well as other recognised industry based accreditations.

REVIEW OF BUSINESS

The Group has continued its waste removal activity while exploring other areas of connected expansion possibilities to ensure its growth in the future and securing its place within the industry.

The following KPI's show the Group's continued investment and its positive impact on the business.

2026

2025

% change

Turnover

£15,468,715

£12,785,908

21%

Gross profit

£4,747,447

£3,833,940

23.8%

Gross profit %

30.7%

30.0%

0.7%

Return on Capital Employed %

30.7%

21.7%

9.0%

EBITDA / Sales %

16.7%

18.4%

-1.7%

Operating profit / Sales %

8.8%

7.9%

0.9%

Trade debtor days

79

67

12 days

Market conditions have improved from the prior year leading to a positive impact on turnover and profitability. Order book has improved with new customers and projects in the year, causing strong KPI's above. The balance sheet continues to strengthen with profits being retained in the business and net debt has been reduced in the year, despite new assets being acquired under finance agreements, with ongoing repayments against the term debt. Post year end performance has been strong with turnover and margins remaining strong.

The Group continues to invest in and update its current plant and equipment by being a leader in providing unique new vehicles to the UK waste industry with the importing of tankering equipment from abroad. The Group is also working to improve efficiency of the business, in particular improving software and office systems while streamlining current processes to ensure important information is up to date and more easily accessible. This will ensure that as Group grows it can maintain the high level of service while each depot can support one another in its development.

HEALTH AND SAFETY AND HUMAN RESOURCES

Health and Safety and employee welfare are key values within the business and are not open to compromise. All operations are carried out with the intention that no harm will come to any person or the environment as a result of our activities.

With the appointment of additional personnel we will ensure that we continue to maintain and update our policies and provide intensive training to staff, enabling them to carry out duties to the highest standard and further minimising risk.

All works are risk assessed and a full and detailed method statement is produced prior to carrying out any work. Each and every employee is a representative of the Group which we will continue to invest in with the vision to meet their full potential whilst ensuring a gratifying working environment.

ENVIRONMENTAL AWARENESS

Environmental impact is key to the activities which the Group undertake as well as being a global issue and we are passionate about continually assessing and improving our business activities in order to reduce the negative impacts on environment, society and to maintain financial stability. Mantank are UK spill approved contractors for the Environment Agency with which we are approved waste carriers, registered with Achilles and other recognised accreditation bodies. We continue to exceed all legislative requirements associated with the waste industry.

PRINCIPAL RISKS AND UNCERTAINTIES

The Group faces constant risk from the increasing costs of maintaining and running plant and equipment and changes within legislation which may affect our business. We continue to monitor all of these issues and make changes where necessary. The Group will continue to pursue new clients and take advantage of new opportunities which may arise.

INTEREST RATE RISK

The interest rates on the Group bank facilities are fixed annually. The interest rate on finance leases entered into is fixed for the term of the agreement at the time it is entered into. The Group interest income and expenses can therefore be affected by movements in interest rates. The Group does not undertake any hedging activity.

CREDIT RISK

The Group has external debtors; however, the Group undertakes assessments of its customers in order to ensure that credit is not extended where there is a likelihood of default.

ON BEHALF OF THE BOARD:

L Royle - Director

16 July 2026

The directors present their report with the financial statements of the company and the group for the year ended 31 January 2026.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of waste management.

DIVIDENDS

The total distribution of dividends for the year ended 31 January 2026 will be £350,082.

DIRECTORS

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

J Brown

D A Royle

L Royle

DISCLOSURE IN THE STRATEGIC REPORT

The following information, which would otherwise be disclosed in the directors' report, is instead disclosed in the strategic report, as permitted by s414C(11) of the Companies Act 2006:

- 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.

AUDITORS

The auditors, Clive Owen LLP, are deemed to be reappointed under section 487(2) of the Companies Act 2006.

ON BEHALF OF THE BOARD:

L Royle - Director

16 July 2026

Opinion

We have audited the financial statements of Mantank Environmental Services Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 January 2026 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 January 2026 and of the group's profit for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

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

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

Auditors' responsibilities for the audit of the financial statements

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

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, to detect material misstatements in respect of irregularities, including fraud. Our audit must be alert to the risk of manipulation of the financial statements and seek to understand the incentives and opportunities for management to achieve this.

We undertake the following procedures to identify and respond to these risks of non-compliance:

- Understanding the key legal and regulatory frameworks that are applicable to the Group. We communicated identified laws and regulations throughout the audit team and remained alert to any indications of non-compliance throughout the audit. We determined the most significant of these to be environmental legislation, waste management and DVSA rules for fleet management. In addition, the Group is subject to financial reporting legislation, taxation legislation, health & safety and employment law.

- Enquiry of directors and management as to policies and procedures to ensure compliance and any known instances of non-compliance

- Review of board minutes and correspondence with regulators

- Enquiry of directors and management as to areas of the financial statements susceptible to fraud and how these risks are managed

- Challenging management on key estimates, assumptions and judgements made in the preparation of the financial statements. These key areas of uncertainty are disclosed in the accounting policies

- Identifying and testing unusual journal entries, with a particular focus on manual journal entries.

Through these procedures, we did not become aware of actual or suspected non-compliance.

We planned and performed our audit in accordance with auditing standards but owing to the inherent limitations of procedures required in these areas, there is an unavoidable risk that we may not have detected a material misstatement in the accounts. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve concealment, collusion, forgery, misrepresentations, or 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.

Kevin Shotton BA BFP FCA (Senior Statutory Auditor)

for and on behalf of Clive Owen LLP

Chartered Accountants

& Statutory Auditors

Great North House, Allington Way

DARLINGTON

Co Durham

DL1 4QB

16 July 2026

TURNOVER

3

15,468,715

12,785,908

Cost of sales

(10,721,268

)

(8,951,968

)

GROSS PROFIT

4,747,447

3,833,940

Administrative expenses

(3,395,953

)

(2,821,315

)

1,351,494

1,012,625

Other operating income

11,719

3,849

OPERATING PROFIT

5

1,363,213

1,016,474

Interest receivable and similar income

3,059

555

1,366,272

1,017,029

Interest payable and similar expenses

6

(196,519

)

(288,343

)

PROFIT BEFORE TAXATION

1,169,753

728,686

Tax on profit

7

(382,703

)

(259,081

)

PROFIT FOR THE FINANCIAL YEAR

787,050

469,605

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

787,050

469,605

Profit attributable to:

Owners of the parent

787,050

469,605

Total comprehensive income attributable to:

Owners of the parent

787,050

469,605

FIXED ASSETS

Intangible assets

10

1,549,466

1,774,843

Tangible assets

11

3,872,111

4,059,959

Investments

12

-

-

5,421,577

5,834,802

CURRENT ASSETS

Debtors

13

3,589,617

2,651,192

Cash at bank and in hand

499,907

156,621

4,089,524

2,807,813

CREDITORS

Amounts falling due within one year

14

(5,071,112

)

(3,962,570

)

NET CURRENT LIABILITIES

(981,588

)

(1,154,757

)

TOTAL ASSETS LESS CURRENT LIABILITIES

4,439,989

4,680,045

CREDITORS

Amounts falling due after more than one year

15

(1,102,507

)

(1,763,503

)

PROVISIONS FOR LIABILITIES

19

(687,471

)

(703,499

)

NET ASSETS

2,650,011

2,213,043

CAPITAL AND RESERVES

Called up share capital

20

100

100

Retained earnings

21

2,649,911

2,212,943

SHAREHOLDERS' FUNDS

2,650,011

2,213,043

The financial statements were approved by the Board of Directors and authorised for issue on 16 July 2026 and were signed on its behalf by:

L Royle - Director

FIXED ASSETS

Intangible assets

10

-

-

Tangible assets

11

-

-

Investments

12

7,682,887

7,682,887

7,682,887

7,682,887

CURRENT ASSETS

Debtors

13

4,835

100

CREDITORS

Amounts falling due within one year

14

(87,622

)

(582,887

)

NET CURRENT LIABILITIES

(82,787

)

(582,787

)

TOTAL ASSETS LESS CURRENT LIABILITIES

7,600,100

7,100,100

CAPITAL AND RESERVES

Called up share capital

20

100

100

Retained earnings

21

7,600,000

7,100,000

SHAREHOLDERS' FUNDS

7,600,100

7,100,100

Company's profit for the financial year

850,082

350,994

The financial statements were approved by the Board of Directors and authorised for issue on 16 July 2026 and were signed on its behalf by:

L Royle - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 February 2024

100

2,094,332

2,094,432

Changes in equity

Dividends

-

(350,994

)

(350,994

)

Total comprehensive income

-

469,605

469,605

Balance at 31 January 2025

100

2,212,943

2,213,043

Changes in equity

Dividends

-

(350,082

)

(350,082

)

Total comprehensive income

-

787,050

787,050

Balance at 31 January 2026

100

2,649,911

2,650,011

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 February 2024

100

7,100,000

7,100,100

Changes in equity

Dividends

-

(350,994

)

(350,994

)

Total comprehensive income

-

350,994

350,994

Balance at 31 January 2025

100

7,100,000

7,100,100

Changes in equity

Dividends

-

(350,082

)

(350,082

)

Total comprehensive income

-

850,082

850,082

Balance at 31 January 2026

100

7,600,000

7,600,100

Cash flows from operating activities

Cash generated from operations

1

2,813,242

2,192,826

Interest paid

(196,519

)

(288,343

)

Tax paid

(66,912

)

(238,259

)

Net cash from operating activities

2,549,811

1,666,224

Cash flows from investing activities

Purchase of tangible fixed assets

(497,964

)

(111,983

)

Sale of tangible fixed assets

23,204

71,500

Interest received

3,059

555

Net cash from investing activities

(471,701

)

(39,928

)

Cash flows from financing activities

Loan repayments in year

(1,099,200

)

(1,141,694

)

Capital repayments in year

(287,628

)

(169,944

)

Amount introduced by directors

2,086

-

Equity dividends paid

(350,082

)

(350,994

)

Net cash from financing activities

(1,734,824

)

(1,662,632

)

Increase/(decrease) in cash and cash equivalents

343,286

(36,336

)

Cash and cash equivalents at beginning of year

2

156,621

192,957

Cash and cash equivalents at end of year

2

499,907

156,621

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

2026

2025

£

£

Profit before taxation

1,169,753

728,686

Depreciation charges

1,452,908

1,460,233

Profit on disposal of fixed assets

(17,373

)

(22,765

)

Finance costs

196,519

288,343

Finance income

(3,059

)

(555

)

2,798,748

2,453,942

Increase in trade and other debtors

(938,425

)

(173,768

)

Increase/(decrease) in trade and other creditors

952,919

(87,348

)

Cash generated from operations

2,813,242

2,192,826

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 January 2026

31.1.26

1.2.25

£

£

Cash and cash equivalents

499,907

156,621

Year ended 31 January 2025

31.1.25

1.2.24

£

£

Cash and cash equivalents

156,621

192,957

3.	ANALYSIS OF CHANGES IN NET DEBT

Other

non-cash

At 1.2.25

Cash flow

changes

At 31.1.26

£

£

£

£

Net cash

Cash at bank

and in hand

156,621

343,286

499,907

156,621

343,286

499,907

Debt

Finance leases

(822,790

)

159,448

(547,550

)

(1,210,892

)

Debts falling due

within 1 year

(1,627,366

)

(434,811

)

-

(2,062,177

)

Debts falling due

after 1 year

(1,173,842

)

886,299

-

(287,543

)

(3,623,998

)

610,936

(547,550

)

(3,560,612

)

Total

(3,467,377

)

954,222

(547,550

)

(3,060,705

)

1.	STATUTORY INFORMATION

Mantank Environmental Services 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.

There were no material departures from that standard.

The principal accounting policies adopted in the preparation of the financial statements are set out below.

Related Parties

The related party disclosure is to ensure that an entity's financial statements contain the disclosures necessary to draw attention to the possibility that its financial position and profit or loss may have been affected by the existence of related parties and by transactions and outstanding balances with such parties.

A related party is a person or entity that is related to the entity that is preparing its financial statements.

A person or a close member of that person's family is related to a reporting entity if that person:

(i) has control or joint control over the reporting entity;

(ii) has significant influence over the reporting entity; or

(iii) is a member of the key management personnel of the reporting entity or of a parent of the reporting entity.

Basis of consolidation

The financial statements consolidate the financial statements of Mantank Environmental Services Holdings Limited and its subsidiary, Mantank Environmental Services Limited. All of the entities financial statements are made up to 31 January 2026 and transactions between the group companies have been eliminated on consolidation.

Significant judgements and estimates

The preparation of the financial statements requires management to make significant judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the actual outcome. The key assumptions and all the sources of estimation uncertainty that have a significant risk of causing a material adjustment to the current amounts of assets and liabilities within the next financial year are as follows:

Depreciation of tangible assets and goodwill amortisation - Depreciation is calculated so as to write off the cost of an asset, less its residual value, over the useful economic life of that asset. An estimate of the useful economic life of assets is detailed in the depreciation accounting policy. The total value of depreciation and amortisation charge in the profit and loss account during the period was £1,452,908 (of which £225,377 relates to the amortisation on goodwill).

Bad debt provision - Within the construction sector some customers are very slow payers. Management actively monitor and chase outstanding and overdue trade debt and make an assessment of likelihood of collection based on these activities and provide a provision accordingly.

Turnover

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

Income recognition

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.

Turnover from the rendering of services is recognised when the outcome of a transaction can be estimated reliably and by reference to the stage of completion at the balance sheet date. Where the outcome cannot be measured reliably, turnover is recognised only to the extent of the expenses recognised that are recoverable.

Goodwill

Goodwill consists of the excess of fair value and directly attributable costs of the purchase consideration over the fair values to the group's interest in the identifiable net assets, liabilities and contingent assets acquired.

Goodwill is amortised over its expected useful life which is estimated to be ten years. Goodwill is assessed for impairment when there are indicators of impairment, and any impairment is charged to the income statement. No reversals of impairment are recognised.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

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

Tangible fixed assets

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.

Improvements to property

- straight line over 5 years

Freehold property

- not provided

Leasehold property

- not provided

Plant and machinery

- straight line over 2 - 10 years and 20 - 25% reducing balance

Motor vehicles

- straight line over 4 years

Computer equipment

- straight line over 3 years

Fixtures & Fittings

- straight line over 3 years

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

The directors consider that the freehold and leasehold property is maintained in such a state of repair that its residual value is at least equal to its net book value. As a result, the corresponding depreciation would not be material and therefore is not charged in the profit and loss account.

Impairment of assets

At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in profit or loss.

If an impairment loss subsequently reverses, the carry amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately.

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.