REGISTERED NUMBER: NI662742 (Northern Ireland)

LEUMAS HOLDINGS LIMITED

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

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

16

DIRECTORS:

J McAuley

R McAuley

REGISTERED OFFICE:

21 Ballymena Road

BALLYMONEY

Co. Antrim

BT53 7EX

REGISTERED NUMBER:

NI662742 (Northern Ireland)

AUDITORS:

McAleer Jackson Ltd

Chartered Accountants & Statutory Auditors

Church House

24 Dublin Road

OMAGH

Co. Tyrone

BT78 1HE

BANKERS:

Danske Bank

6 Shipquay Place

LONDONDERRY

Co. Londonderry

BT48 6DF

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

REVIEW OF BUSINESS

The results for the year and the financial position at the year end are as set out in the annexed financial statements.

Turnover in the year increased by 23% due to increased demand for the groups engineered products. Whilst margins decreased during the year due to inflationary increases, the directors are satisfied with overall performance.

PRINCIPAL RISKS AND UNCERTAINTIES

The directors have identified the following areas of risk and uncertainty:

Supply chain and logistics:

The directors are satisfied that the arrangements the group has in place with key suppliers are adequate to mitigate the risk of interrupted supply.

Environmental risk:

The directors recognise the potential environmental risks arising from the group's operations and invest resources to ensure the group maintains all necessary environmental standards and manages the risk effectively.

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The group's activities expose it to a number of financial risks including commodity price risk, liquidity risk, credit risk and currency risk.

Commodity price risk:

The group uses materials which are exposed to commodity price risk. The directors take measures to protect against short term fluctuations in price, through maintaining strong long term relationships with suppliers & product pricing.

Credit risk:

The group's principal credit risk is in respect of customer credit arrangements which are managed through strict credit control arrangements and procedures.

Liquidity risk:

The group finances its working capital with its own cash reserves and bank facilities. Adequate balances and facilities are maintained to mitigate short and medium term liquidity risk.

Currency risk:

The group actively trades in both sterling and euro. Where possible euro cash inflows and outflows are matched. The directors take an active role in managing the currency exposure remains within acceptable levels.

The directors review and agree policies for managing each of the above risks.

KEY PERFORMANCE INDICATORS (KPIS)

Given the nature of the business, the directors view the principle KPIs of the business to be growth in turnover and gross profit.

The key performance indicators of the company are set out below:

2025

2024

Turnover

£12.9m

£10.5m

Gross profit margin

26.4%

31.9%

ON BEHALF OF THE BOARD:

J McAuley - Director

10 July 2026

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

DIVIDENDS

A dividend of £215,000 was paid during the year. (2024 - £100,000).

FUTURE DEVELOPMENTS

The directors do not foresee any future developments in the forthcoming year outside of normal trading.

POST BALANCE SHEET EVENTS

There have been no significant events affecting the Group since the year end.

DIRECTORS

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

J McAuley

R McAuley

POLITICAL DONATIONS AND EXPENDITURE

The group made charitable donations amounting to £84,145 during the period (2024 - £138,379). No donations for

political purposes were made during the period.

DIRECTORS' RESPONSIBILITIES STATEMENT

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, McAleer Jackson Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

J McAuley - Director

10 July 2026

Opinion

We have audited the financial statements of Leumas 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 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 Directors' Responsibilities Statement 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 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.

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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.

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

We obtained an understanding of the legal and regulatory framework that the group operates in, focusing on provisions of those laws and regulations that had a direct effect on material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, pensions and tax legislation, together with provisions of other laws and regulations that do not have a direct effect on the financial statements, but compliance with which may be fundamental to the group's ability to operate or to avoid a material penalty.

We tailored our response to those identified risks to include enquiring of management and external legal advisors 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, and reviewing correspondence with HMRC and other regulatory bodies.

In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments, assessed whether the judgements made in making accounting estimates are indicative of a potential bias, and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business. We apply professional scepticism throughout the audit to consider deliberate omission or concealment of significant transactions, or incomplete/inaccurate disclosures in the financial statements.

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 group's remuneration policies, and performance targets;

- results of our enquiries of management and other key persons about the group's own policies for the identification and assessment of the risks of irregularities, including those that may occur either as a result of fraud or error, and matters we identified from our review of the group's policies, procedures and internal controls; and

- the matters discussed among the audit engagement team regarding potential indicators of fraud and where it might occur in the financial statements;

- design of audit procedures responsive to those risks that incorporate unpredictability around the nature,

timing and extent of our testing.

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.

MICHAEL BARNETT (Senior Statutory Auditor)

for and on behalf of McAleer Jackson Ltd

Chartered Accountants & Statutory Auditors

Church House

24 Dublin Road

OMAGH

Co. Tyrone

BT78 1HE

10 July 2026

TURNOVER

12,914,189

10,486,613

Cost of sales

9,500,761

7,128,996

GROSS PROFIT

3,413,428

3,357,617

Administrative expenses

2,553,629

2,443,237

859,799

914,380

Other operating income

175,813

24,193

OPERATING PROFIT

4

1,035,612

938,573

Interest receivable and similar income

5,760

259

1,041,372

938,832

Interest payable and similar expenses

5

195,154

139,367

PROFIT BEFORE TAXATION

846,218

799,465

Tax on profit

6

215,115

9,126

PROFIT FOR THE FINANCIAL YEAR

631,103

790,339

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

631,103

790,339

Profit attributable to:

Owners of the parent

631,103

790,339

Total comprehensive income attributable to:

Owners of the parent

631,103

790,339

FIXED ASSETS

Intangible assets

9

-

-

Tangible assets

10

3,006,435

2,796,970

Investments

11

-

-

Investment property

12

545,863

260,286

3,552,298

3,057,256

CURRENT ASSETS

Stocks

13

1,883,605

1,554,573

Debtors

14

3,450,254

2,501,805

Cash at bank and in hand

652,213

110,281

5,986,072

4,166,659

CREDITORS

Amounts falling due within one year

15

3,883,079

2,267,273

NET CURRENT ASSETS

2,102,993

1,899,386

TOTAL ASSETS LESS CURRENT LIABILITIES

5,655,291

4,956,642

CREDITORS

Amounts falling due after more than one year

16

(1,155,620

)

(1,207,307

)

PROVISIONS FOR LIABILITIES

20

(810,247

)

(604,061

)

ACCRUALS AND DEFERRED INCOME

21

(128,047

)

-

NET ASSETS

3,561,377

3,145,274

CAPITAL AND RESERVES

Called up share capital

22

800

800

Share premium

23

630,575

630,575

Retained earnings

23

2,930,002

2,513,899

SHAREHOLDERS' FUNDS

3,561,377

3,145,274

The financial statements were approved by the Board of Directors and authorised for issue on 10 July 2026 and were signed on its behalf by:

J McAuley - Director

FIXED ASSETS

Intangible assets

9

-

-

Tangible assets

10

-

-

Investments

11

401,300

401,300

Investment property

12

-

-

401,300

401,300

CURRENT ASSETS

Debtors

14

2,000

104,600

CREDITORS

Amounts falling due within one year

15

100

100

NET CURRENT ASSETS

1,900

104,500

TOTAL ASSETS LESS CURRENT LIABILITIES

403,200

505,800

CREDITORS

Amounts falling due after more than one year

16

300

7,900

NET ASSETS

402,900

497,900

CAPITAL AND RESERVES

Called up share capital

22

800

800

Retained earnings

23

402,100

497,100

SHAREHOLDERS' FUNDS

402,900

497,900

Company's profit for the financial year

120,000

87,100

The financial statements were approved by the Board of Directors and authorised for issue on 10 July 2026 and were signed on its behalf by:

J McAuley - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 January 2024

800

1,823,560

630,575

2,454,935

Changes in equity

Dividends

-

(100,000

)

-

(100,000

)

Total comprehensive income

-

790,339

-

790,339

Balance at 31 December 2024

800

2,513,899

630,575

3,145,274

Changes in equity

Dividends

-

(215,000

)

-

(215,000

)

Total comprehensive income

-

631,103

-

631,103

Balance at 31 December 2025

800

2,930,002

630,575

3,561,377

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2024

800

510,000

510,800

Changes in equity

Dividends

-

(100,000

)

(100,000

)

Total comprehensive income

-

87,100

87,100

Balance at 31 December 2024

800

497,100

497,900

Changes in equity

Dividends

-

(215,000

)

(215,000

)

Total comprehensive income

-

120,000

120,000

Balance at 31 December 2025

800

402,100

402,900

Cash flows from operating activities

Cash generated from operations

1

1,410,552

707,620

Interest paid

(120,185

)

(78,149

)

Interest element of hire purchase payments paid

(74,969

)

(61,218

)

Net cash from operating activities

1,215,398

568,253

Cash flows from investing activities

Purchase of tangible fixed assets

(726,099

)

(1,020,917

)

Purchase of investment property

(285,577

)

-

Sale of tangible fixed assets

4,000

-

Grant received

142,274

-

Interest received

5,760

259

Net cash from investing activities

(859,642

)

(1,020,658

)

Cash flows from financing activities

New loans in year

-

355,000

Loan repayments in year

(64,702

)

(80,725

)

Capital repayments in year

52,576

92,626

Amount withdrawn by directors

(7,577

)

(203,704

)

Equity dividends paid

(215,000

)

(100,000

)

Net cash from financing activities

(234,703

)

63,197

Increase/(decrease) in cash and cash equivalents

121,053

(389,208

)

Cash and cash equivalents at beginning of year

2

(913,230

)

(524,022

)

Cash and cash equivalents at end of year

2

(792,177

)

(913,230

)

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

2025

2024

£

£

Profit before taxation

846,218

799,465

Depreciation charges

516,634

450,521

Profit on disposal of fixed assets

(4,000

)

-

Increase in other provisions

59,889

86,199

Grants released

(14,227

)

-

Deferred income

(128,046

)

-

Finance costs

195,154

139,367

Finance income

(5,760

)

(259

)

1,465,862

1,475,293

Increase in stocks

(329,032

)

(94,779

)

Increase in trade and other debtors

(948,449

)

(582,803

)

Increase/(decrease) in trade and other creditors

1,222,171

(90,091

)

Cash generated from operations

1,410,552

707,620

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

652,213

110,281

Bank overdrafts

(1,444,390

)

(1,023,511

)

(792,177

)

(913,230

)

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

110,281

185,775

Bank overdrafts

(1,023,511

)

(709,797

)

(913,230

)

(524,022

)

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.1.25

Cash flow

At 31.12.25

£

£

£

Net cash

Cash at bank and in hand

110,281

541,932

652,213

Bank overdrafts

(1,023,511

)

(420,879

)

(1,444,390

)

(913,230

)

121,053

(792,177

)

Debt

Finance leases

(1,097,827

)

(52,576

)

(1,150,403

)

Debts falling due within 1 year

(126,621

)

47,642

(78,979

)

Debts falling due after 1 year

(330,690

)

24,637

(306,053

)

(1,555,138

)

19,703

(1,535,435

)

Total

(2,468,368

)

140,756

(2,327,612

)

1.	STATUTORY INFORMATION

Leumas Holdings Limited is a private company, limited by shares , registered in Northern Ireland. 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.

The financial statements are prepared in sterling which is the functional currency of the group.

The group financial statements consolidate the financial statements of Leumas Holdings Limited and all its subsidiary undertakings drawn up to 31 December each year.

Significant judgements and estimates

Warranty provision

Certain products are sold with a warranty covering parts and labour for any manufacturing defects. A provision is recognised at the time of sale for the expected costs to be incurred in respect of warranty claims. The amount of the provision is based on management's best estimate of the expenditure required to settle existing and future claims arising from sales made before the reporting date.

The estimate is based on historical claim rates, the nature of products sold, and the terms of the warranty. The actual costs may differ from those estimates, depending on future claim experience, changes in manufacturing quality, and other factors. Any difference between estimated and actual costs is recognised in the income statement in the period when the difference becomes known.

Turnover

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

Goodwill

Goodwill, being the amount paid in connection with the formation of the business in 2013, is being amortised evenly over its estimated useful life of ten years.

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.

Tangible fixed assets

Tangible fixed assets are recognised at cost.

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 shorter.

Freehold property - 2% straight line

Land & buildings - 4% straight line

Plant & machinery - 10% straight line and at varying rates on cost

Investment property

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

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

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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.

Debtors and creditors receivable/payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transactional price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

Provisions

Provisions (i.e liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably.

Impairment

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit and loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

Going concern

At the time of approving the financial statements, the director had reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

Grant income

Grants relate to expenditure are credited to the Profit and Loss account as the expenditure is incurred.

Capital grants received and are treated as deferred income and amortised to the Profit and Loss account annually over the useful economic life of the asset to which it relates. When the possibility of clawback is remote and in the interests of accurately stating the company's liabilities, the directors may consider it appropriate to release all or part of the remaining grant to the income statement.