REGISTERED NUMBER: 06537499 (England and Wales)

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025

FOR

FLETCHER BICKERTON HOLDINGS LIMITED

Page

Company information

1

Group strategic report

2

to

3

Report of the directors

4

to

5

Report of the independent auditors

6

to

9

Consolidated statement of comprehensive income

10

Consolidated statement of financial position

11

Company statement of financial position

12

Consolidated statement of changes in equity

13

Company statement of changes in equity

14

Consolidated statement of cash flows

15

Notes to the consolidated statement of cash flows

16

Notes to the consolidated financial statements

17

to

29

DIRECTORS:

M P Fletcher

J Fletcher

M K Fletcher

SECRETARY:

M P Fletcher

REGISTERED OFFICE:

Elenora Street

Stoke-on-Trent

Staffordshire

ST4 1QG

REGISTERED NUMBER:

06537499 (England and Wales)

AUDITORS:

Sumer Auditco Limited

Chartered Accountants & Statutory Auditors

Stone House

Stone Road Business Park

Stoke-on-Trent

ST4 6SR

The directors present their strategic report of the company and the group for the year ended 30 September 2025.

GROUP OVERVIEW AND REVIEW OF BUSINESS

Founded in 1946, Fletcher Moorland Ltd continues to evolve in response to the changing demands of modern engineering. During the period the group strengthened its position as a specialist provider of industrial electro-mechanical repairs, electronics, reliability services and precision engineering. Despite continued economic uncertainty, inflationary pressures and rising employment costs, the Board remained committed to investing in people, engineering capability, research and development and advanced technology to ensure the long-term sustainability of the business.

Key Performance Indicators

KPI

FY 2024/25 Actual group

FY 2025/26 Projected* FML

Net Profit

£1,819,629

£1,897,194 (+15.6%)

Employee Headcount

115

120

Leadership Training

New KPI

Capital Investment

£836,186

£175,000

*Projected outturn based on performance achieved during the first nine months of the financial year.

Financial Performance

The Board expects net profit to increase by approximately 15.6%, from £1,640,824 to £1,897,194 in Fletcher Moorland Limited. This anticipated improvement reflects continued demand for the Company's specialist engineering services together with the benefits arising from investments made during the previous financial year, specifically from the Precision Engineering Department.

Capital Investment

Capital investment is forecast to reduce from £836,186 to £175,000. This reduction does not represent a reduction in the Company's commitment to investment; rather, it reflects the completion of a significant phase of strategic capital expenditure during FY2024/25.

During FY2024/25 the Company made substantial investment in establishing its Precision Engineering department, representing one of the most significant strategic developments in recent years. Having created this capability, the focus during FY2025/26 has shifted towards targeted investment in equipment that enhances productivity, quality and operational resilience.

Investment during FY2025/26 includes a state-of-the-art cleaning area within the Electro Mechanical Department, a Harrison Alpha lathe, a guillotine within the Winding Department, a surface grinder, together with continued investment in air-conditioning across the business. Investment in climate control is being undertaken not only to improve employee wellbeing but also to protect increasingly sophisticated equipment and maintain consistent manufacturing quality as temperatures continue to rise. This programme of investment will continue into the 2026/27 financial year.

Strategic Achievements During the Year

" Continued development of the Precision Engineering Department.

" Strengthened strategic partnership with NIDEC.

" Investment in research and development within the transport and renewable energy sectors.

" Development of expertise in servicing BYD and YASA motors.

" Enhancement of testing facilities to better replicate customer operating conditions.

" Introduction of leadership training as a formal KPI.

" Responsible adoption of AI technologies, including ChatGPT and Claude, to improve productivity and knowledge sharing.

PRINCIPAL RISKS AND UNCERTAINTIES

Risk

Mitigation

Economic conditions

Maintain cost control, operational efficiency and diversified markets.

Skills availability

Continue investment in recruitment, apprenticeships, leadership and engineering development.

Technology

Ongoing investment in automation, AI and advanced engineering.

Cyber security

Continued investment in IT infrastructure and cyber awareness.

Supply chain

Strong supplier relationships and UK sourcing where appropriate.

FUTURE OUTLOOK

The Directors remain confident in the Company's long-term prospects. The strategic investments undertaken over recent years have strengthened Fletcher Moorland's technical capability and market position. Continued investment in people, innovation, digital technologies, research and development and modern manufacturing equipment will support sustainable growth throughout FY2026/27 and beyond.

ON BEHALF OF THE BOARD:

M K Fletcher - Director

24 August 2026

The directors present their report with the financial statements of the company and the group for the year ended 30 September 2025.

DIVIDENDS

Particulars of recommended dividends are detailed in the notes to the financial statements.

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 October 2024 to the date of this report.

M P Fletcher

J Fletcher

M K Fletcher

DISCLOSURE IN THE STRATEGIC REPORT

The company has chosen in accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 to set out in the company's strategic report information required byschedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations2008, including the future developments of the company.

The strategic report can be found on page 2 of these financial statements.

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 are deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.

ON BEHALF OF THE BOARD:

M K Fletcher - Director

24 August 2026

Opinion

We have audited the financial statements of Fletcher Bickerton Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2025 which comprise the Consolidated statement of comprehensive income, Consolidated statement of financial position, Company statement of financial position, Consolidated statement of changes in equity, Company statement of changes in equity, Consolidated statement of cash flows and Notes to the consolidated statement of cash flows, Notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 30 September 2025 and of the group's profit for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

-	the Group strategic report and the Report of the directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

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

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

Auditors' responsibilities for the audit of the financial statements

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

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

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit

evidence that is sufficient and appropriate to provide a basis for our opinion.

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, we considered the following:

•

the nature of the industry and sector, control environment and business performance including the design of the company remuneration policies, key drivers for directors' remuneration, bonus levels and performance targets;

•

results of our enquiries of management about their own identification and assessment of the risks of irregularities;

•

any matters we identified having obtained and reviewed the company documentation of their policies and procedures relating to:

-

identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of noncompliance;

-

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 risks of fraud or non-compliance with laws and regulations;

•

the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

Based on this approach, we were able to assess the company risks and ensure the risks were considered throughout all areas of audit testing. The audit team was professionally sceptical throughout the audit and remained alert for inaccurate or misleading information.

Audit response to risks identified

As a result of performing the above, we did not identify any key audit matters related to the potential risk of

fraud or irregularities. Our procedures to respond to risks identified included the following:

• reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

• enquiring of management concerning actual and potential litigation and claims;

• performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

• obtaining an understanding of provisions and held discussions with management to understand the basis of recognition or non-recognition of tax provisions; and

• in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

Audit testing was completed on a targeted sample basis based on our assessment of risk and materiality. Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.

As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

-

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

-	Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the group's internal control.

-	Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

-

Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group or the parent company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Report of the auditors to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Report of the auditors. However, future events or conditions may cause the group or the parent company to cease to continue as a going concern.

-	Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

-	Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express and opinion on the consolidated financial statements.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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.

Helen Tidyman (Senior Statutory Auditor)

for and on behalf of Sumer Auditco Limited

Chartered Accountants & Statutory Auditors

Stone House

Stone Road Business Park

Stoke-on-Trent

ST4 6SR

28 August 2026

TURNOVER

13,418,661

12,629,170

Cost of sales

(7,325,831

)

(6,612,447

)

GROSS PROFIT

6,092,830

6,016,723

Administrative expenses

(4,278,523

)

(3,654,758

)

1,814,307

2,361,965

Other operating income

-

1

OPERATING PROFIT

4

1,814,307

2,361,966

Interest receivable and similar income

15,834

2,367

1,830,141

2,364,333

Interest payable and similar expenses

5

(10,512

)

(5,335

)

PROFIT BEFORE TAXATION

1,819,629

2,358,998

Tax on profit

6

(281,280

)

(421,613

)

PROFIT FOR THE FINANCIAL YEAR

1,538,349

1,937,385

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,538,349

1,937,385

Profit attributable to:

Owners of the parent

1,538,349

1,937,385

Total comprehensive income attributable to:

Owners of the parent

1,538,349

1,937,385

FIXED ASSETS

Tangible assets

9

3,128,494

2,545,968

Investments

10

503

503

3,128,997

2,546,471

CURRENT ASSETS

Stocks

11

1,728,053

1,375,341

Debtors

12

3,538,026

3,330,210

Cash at bank and in hand

1,458,255

1,526,730

6,724,334

6,232,281

CREDITORS

Amounts falling due within one year

13

(2,248,406

)

(2,111,444

)

NET CURRENT ASSETS

4,475,928

4,120,837

TOTAL ASSETS LESS CURRENT LIABILITIES

7,604,925

6,667,308

CREDITORS

Amounts falling due after more than one year

14

(32,605

)

(50,389

)

PROVISIONS FOR LIABILITIES

18

(532,092

)

(383,266

)

NET ASSETS

7,040,228

6,233,653

CAPITAL AND RESERVES

Called up share capital

19

8,650

8,650

Revaluation reserve

20

99,000

99,000

Retained earnings

20

6,932,578

6,126,003

SHAREHOLDERS' FUNDS

7,040,228

6,233,653

The financial statements were approved by the Board of Directors and authorised for issue on 24 August 2026 and were signed on its behalf by:

M K Fletcher - Director

FIXED ASSETS

Tangible assets

9

1,033,291

1,033,291

Investments

10

1,196,758

1,196,758

2,230,049

2,230,049

CURRENT ASSETS

Debtors

12

528,406

713,871

Cash at bank

1,230

77,647

529,636

791,518

CREDITORS

Amounts falling due within one year

13

(114,344

)

(521,995

)

NET CURRENT ASSETS

415,292

269,523

TOTAL ASSETS LESS CURRENT LIABILITIES

2,645,341

2,499,572

CREDITORS

Amounts falling due after more than one year

14

(32,605

)

(50,389

)

PROVISIONS FOR LIABILITIES

18

(14,280

)

(14,280

)

NET ASSETS

2,598,456

2,434,903

CAPITAL AND RESERVES

Called up share capital

19

8,650

8,650

Retained earnings

20

2,589,806

2,426,253

SHAREHOLDERS' FUNDS

2,598,456

2,434,903

Company's profit for the financial year

895,327

847,822

The financial statements were approved by the Board of Directors and authorised for issue on 24 August 2026 and were signed on its behalf by:

M K Fletcher - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 October 2023

8,650

4,867,955

99,000

4,975,605

Changes in equity

Dividends

-

(679,337

)

-

(679,337

)

Total comprehensive income

-

1,937,385

-

1,937,385

Balance at 30 September 2024

8,650

6,126,003

99,000

6,233,653

Changes in equity

Dividends

-

(731,774

)

-

(731,774

)

Total comprehensive income

-

1,538,349

-

1,538,349

Balance at 30 September 2025

8,650

6,932,578

99,000

7,040,228

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 October 2023

8,650

2,257,768

2,266,418

Changes in equity

Dividends

-

(679,337

)

(679,337

)

Total comprehensive income

-

847,822

847,822

Balance at 30 September 2024

8,650

2,426,253

2,434,903

Changes in equity

Dividends

-

(731,774

)

(731,774

)

Total comprehensive income

-

895,327

895,327

Balance at 30 September 2025

8,650

2,589,806

2,598,456

Cash flows from operating activities

Cash generated from operations

1

1,528,222

1,743,931

Interest paid

(10,512

)

(5,335

)

Tax paid

6,816

(133,203

)

Net cash from operating activities

1,524,526

1,605,393

Cash flows from investing activities

Purchase of tangible fixed assets

(836,186

)

(753,912

)

Sale of tangible fixed assets

-

3,255

Interest received

15,834

2,367

Net cash from investing activities

(820,352

)

(748,290

)

Cash flows from financing activities

Loan repayments in year

(17,784

)

(17,784

)

Amount introduced by directors

731,774

721,737

Amount withdrawn by directors

(754,865

)

(731,770

)

Equity dividends paid

(731,774

)

(679,337

)

Net cash from financing activities

(772,649

)

(707,154

)

(Decrease)/increase in cash and cash equivalents

(68,475

)

149,949

Cash and cash equivalents at beginning of year

2

1,526,730

1,376,781

Cash and cash equivalents at end of year

2

1,458,255

1,526,730

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

30.9.25

30.9.24

£

£

Profit before taxation

1,819,629

2,358,998

Depreciation charges

253,657

193,737

Loss on disposal of fixed assets

-

9,497

Finance costs

10,512

5,335

Finance income

(15,834

)

(2,367

)

2,067,964

2,565,200

Increase in stocks

(352,712

)

(364,292

)

Increase in trade and other debtors

(176,806

)

(407,447

)

Decrease in trade and other creditors

(10,224

)

(49,530

)

Cash generated from operations

1,528,222

1,743,931

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of cash flows in respect of cash and cash equivalents are in respect of these Statement of financial position amounts:

Year ended 30 September 2025

30.9.25

1.10.24

£

£

Cash and cash equivalents

1,458,255

1,526,730

Year ended 30 September 2024

30.9.24

1.10.23

£

£

Cash and cash equivalents

1,526,730

1,376,781

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.10.24

Cash flow

At 30.9.25

£

£

£

Net cash

Cash at bank and in hand

1,526,730

(68,475

)

1,458,255

1,526,730

(68,475

)

1,458,255

Debt

Debts falling due within 1 year

(17,784

)

-

(17,784

)

Debts falling due after 1 year

(50,389

)

17,784

(32,605

)

(68,173

)

17,784

(50,389

)

Total

1,458,557

(50,691

)

1,407,866

1.	STATUTORY INFORMATION

Fletcher Bickerton 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 currency of the financial statements is the Pound Sterling (£).

The principal activity of the company during the year was that of a holding company and the company owns the business premises for the group.

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.

Financial Reporting Standard 102 - reduced disclosure exemptions

The parent company satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following reduced disclosures available under FRS 102:

(a) Disclosures in respect of each class of share capital have not been presented.

(b) No cash flow statement has been presented for the company.

(c) No disclosure has been given for the aggregate remuneration of key management personnel.

Basis of consolidation

The consolidated financial statements incorporate the financial statements of the company and all group undertakings. These are adjusted, where appropriate, to conform to group accounting policies. Acquisitions are accounted for under the acquisition method. The results of companies acquired or disposed of are included in the profit and loss account after or up to the date that control passes respectively. As a consolidated profit and loss account is published, a separate profit and loss account for the parent company is omitted from the group financial statements by virtue of section 408 of the Companies Act 2006.

Significant judgements and estimates

The preparation of the financial statements requires management to make 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.

Key sources of estimation uncertainty

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

As described in the accounting policies of the financial statements, depreciation of tangible fixed assets has been based on estimated useful lives and residual values deemed appropriate by the directors. Estimated useful lives and residual values are reviewed annually and revised as appropriate. Revisions take in to account actual asset lives and residual values as evidenced by disposals during current and prior accounting periods.