Registered number: 04198265

Milbank Concrete Products Limited

​​​​​

Directors Report and ​​Financial Statements

For the year ended 31 December 2025

Directors

S R Milbank
M J Sparrow
L G Cowen
P M Thompson (appointed 01-01-2025)
R T Wood

Registered number

04198265​

Registered office

Milbank House
Earls Colne Business Park
Earls Colne
Colchester
Essex
CO6 2NS

​Independent auditors

Azets Audit Services​​​
Statutory Auditor
159 Princes Street​
​
​
Ipswich​
Suffolk​
IP1 1QJ​

Introduction

The directors present the strategic report and financial statements for the year ended 31 December 2025.

The company’s purpose is to deliver structural precast concrete products with a high quality of service in the most sustainable way; providing a workplace environment that helps our employees thrive and contributing and supporting our local communities.

Business review

The year ended 31 December 2025 was characterised by continued challenging conditions across the UK residential construction market. While new‑build completions showed a modest increase during the year, the number of new homes granted planning permission declined for a fourth consecutive year and remains approximately 27% below 2021 levels, constraining future housing supply.

Turnover for the year amounted to £23.7 million (2024: £25.0 million). Despite continued discipline over overhead costs, which reduced slightly to £5.8 million (2024: £5.9 million), profit before tax declined to £2.1 million (2024: £3.2 million), reflecting the impact of lower volumes in a subdued market.

While performance declined year on year, the directors are satisfied with the overall result given the prevailing market conditions and are confident that the company remains well positioned to respond efficiently when demand improves.

Principal risks and uncertainties

The company manufactures and supplies concrete products primarily for the residential construction sector. While the business benefits from long-term demand for housing, it is also exposed to a number of sector specific and macroeconomic risks. The Board regularly reviews the company’s risk profile with a view to managing the principal risks and uncertainties facing the business. 

The key risks identified are as follows: 

Residential Construction Market Dependency 

The company’s performance is closely tied to the health of the residential construction market, which is influenced by interest rates, mortgage availability, consumer confidence, and government housing policy (e.g. Help to Buy, planning reform, building regulations). Close relationships are maintained with national and regional housebuilders and there has been investment to diversify product applications into infrastructure and commercial sectors. 

Raw Material and Energy Cost Inflation 

Key costs such as cement, aggregates, admixtures, and energy represent a significant portion of production costs. Price volatility in these areas can compress margins and reduce profitability. Strong relationships with long-term suppliers are maintained which reduces price uncertainty. The company aims for continual improvement in operational efficiency and waste reduction is targeted each year. The company has invested in solar panels and a biomass boiler which provides increased energy security.

Supply Chain Disruption 

Concrete production depends on the timely delivery of raw materials. Disruption to the supply of aggregates and cement would impact production. Strong relationships with long-term suppliers are maintained for key resources. The company looks to treat these suppliers fairly, both in terms of prices and payment terms to support the financial health of critical partners.

Labour Shortages and Skills Retention 

Manufacturing and construction industries are facing increasing challenges in attracting and retaining skilled labour, particularly construction workers, plant operatives, and maintenance engineers. The company offers competitive pay and benefits and is proud to be an Accredited Real Living Wage employer. The company continues to invest in staff training and development and offers a wide range of apprenticeship schemes. 

Environmental Regulation and Emissions Compliance 

Concrete manufacturing is energy-intensive and subject to increasing environmental regulation, particularly regarding CO₂ emissions, dust, and water usage. Whilst there is pressure from housebuilders and end-users for low-carbon construction materials, the company is determined to become the UK’s most sustainable supplier of precast concrete products and is committed to making strides in reducing the impact on the environment long-before regulations enforce this. 

Direct energy and fuel consumption is increasingly shifted to renewable (solar) or lower carbon (HVO) alternatives. R&D is ongoing to continue the reduction of cement content within the concrete mix and development of an Environmental Product Declaration (EPD) is underway. 

Health and Safety Risks 

Concrete production involves heavy machinery, high-temperature processes, and manual handling, creating inherent health and safety risks. The company maintains robust health and safety management systems, regular training, audits and a strong safety culture is embedded throughout the organisation. 

Weather Dependency 

Severe weather can disrupt site deliveries, reduce on-site construction activity, and affect production. The company maintains flexible production scheduling and ensures close collaboration with customers on delivery planning. 

Credit Risk 

The company is exposed to financial risk particularly the credit worthiness of customers. With a slow-down in the construction market, this risk of company failures is higher. The company has robust credit control procedures in place to mitigate this risk.

Sustainability and environmental responsibility

Milbank Concrete Products is committed to reducing its carbon emissions and has an aim to be the most sustainable supplier of precast concrete products. During 2025 the company has taken further strides towards its net zero goal.

The year 2025 represented the company’s first full year of manufacturing using the low‑carbon concrete mix introduced during 2024. This mix utilises cement replacement technology and delivers up to a 21% reduction in cement content without performance compromise. During the year, the low‑carbon mix was fully embedded across a broader range of products and became the established standard for manufacture. This initiative is expected to reduce approximately 2,800 tonnes of Scope 3 CO₂e annually.

The company also continued to work proactively with its supply chain to reduce transport‑related emissions. Following the successful transition of key suppliers from diesel to renewable HVO biofuel, infrastructure was expanded during the year to enable the company’s installation van fleet to operate on HVO, further reducing emissions associated with site activities.

Other business developments

During 2025, the company continued to invest in product innovation and manufacturing capability to strengthen its market offering.

Capital investment was made into new production moulds, enabling the company to broaden its range of bespoke precast concrete solutions and better meet customer requirements for project‑specific designs. This investment enhances flexibility, supports differentiation and reinforces long‑standing customer relationships.

In addition, the company successfully launched a new product, GDeck, a thermally efficient, insulated flooring system. The product incorporates an integral structural top sheet, delivering improved on‑site performance benefits, including reduced installation time and lower on‑site wastage. The launch of GDeck represents an important addition to the company’s value‑added product portfolio and aligns with the wider strategy of supporting more efficient and sustainable construction methods.

Financial key performance indicators

The directors consider the following key performance indicators, which are monitored on a month to month and year on year basis, as important to the business:

This report was approved by the board and signed on its behalf:

The Directors present​​ their​ report and the financial statements for the year ended 31 December 2025.

Principal activity

The principal activity of the Company continued to be that of manufacturers and installers of structural precast concrete products.

Directors​​​​​

The Directors​ who served during the year:

D M Costin (resigned 29-05-2026)

L G Cowen

S R Milbank

M J Sparrow

P M Thompson (appointed 01-01-2025)

R T Wood

P L Maxwell (resigned 31-01-2025)

Dividends

The Company​ paid the following dividends during the year​:

The Directors recommend​ final dividends to be paid in respect of the year​ as follows:

Financial instruments

The Company operates an invoice financing facility, the main purpose of which is to raise finance for the Company’s operations. In addition, the Company has various other financial assets and liabilities such as trade receivables and trade payables arising directly from its operations. 

Liquidity Risk 

The Company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expenses, whilst ensuring the Company has sufficient liquid resources to meet the operating needs of the business. 

Interest rate risk 

The Company is exposed to fair value interest rate risk on its hire purchase agreements. 

Credit risk 

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

Future developments

The aim is to continue to implement the management policies which have been introduced in recent years in relation to the business’s position in the marketplace. Overall, the directors believe that the Company is well placed in terms of strategic and market position to maximise its ability to generate sales and satisfy customer demand, if the economic conditions facing the business worsen. 

Sustainability

The Company is aware of the impact it has on the environment and is committed to reducing this as much, and as quickly as possible. We aspire to set the standard for sustainable practices within our industry, aiming to influence not only our own operations but also the behaviour of our competitors to promote industry-wide sustainability.

In addition to reducing carbon emissions across Scope 1, 2, and 3, we have initiatives in place to decrease water consumption, enhance biodiversity, and make positive contributions to our community.

Charitable donations

We are committed to allocating 2% of our net profit to charitable and community-led organisations as part of our efforts to foster a positive impact beyond our business.

Research and development

Disclosure of information to auditors

Each of the persons who are Directors​​​ at the time when this Directors' report​​ is approved has confirmed that:

• so far as the Directors are​​​​​ aware, there is no relevant audit information of which the Company's auditors are unaware, and
• the Director​​​ has taken all the steps that ought to have been taken as a Director​ in order to be aware of any relevant audit information and to establish that the Company​'s auditors​​​​ are​​​ aware of that information.

Auditors​

The auditors​, Azets Audit Services​, have​ indicated their willingness to continue in office and a resolution concerning their re-appointment will be proposed at the Annual General Meeting.

On 1 September 2025 our auditors, Ensors Accountants LLP, merged with Azets Audit Services Limited. Accordingly Ensors Accountants LLP formally resigned as the company’s auditors with the directors duly appointing Azets Audit Services Limited, to fill the vacancy arising. The auditor, Azets Audit Services Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf:

17th September 2026 

The Directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.

Company law requires the Director to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the Director 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 of the profit or loss of the Company for that period.

In preparing these financial statements, the Directors are required to:

• select suitable accounting policies for the Company's financial statements and then apply them consistently;
• make judgements and accounting estimates that are reasonable and prudent;
• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
• 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 transactions and disclose with reasonable accuracy at any time the financial position of the Company 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Opinion

We have audited the financial statements of Milbank Concrete Products Limited​ (the Company)​​​ for the year ended 31 December 2025, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of changes in equity and the related notes, 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 Company's affairs as at 31 December 2025 and of its 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 Company in accordance with the ethical requirements that are relevant to our audit of the ​​​​financial statements in the United Kingdom, including the Financial Reporting Council'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 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 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 Director 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 included in the Annual Report, other than the financial statements and our report thereon. Our​​ opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we​​ do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we​ identify such material inconsistencies or apparent material misstatements, we are​ required to determine whether there is a material misstatement in the ​​​​​​financial statements or a material misstatement of the other information. 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.

Opinion 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 strategic report and the ​​​Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
• the strategic report and the ​Directors' Report 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 Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report and the Directors' report.

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

• adequate accounting records have not been kept by, or returns adequate for our audit have not been received from branches not visited by us; or
• the 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.​​​​
• Directors were​ not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Directors' and from the requirement to prepare a Strategic report.​​​

Responsibilities of directors

As explained more fully in the Directors' responsibilities statement set out on page 9, 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 is 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 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 Director either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

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

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors'​ report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

Our audit was designed to include tests of detail together with an assessment of the control environment to enable us to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement due to fraud. This included work on areas where we consider there is a higher risk of fraud including transactions with related parties, revenue recognition, management override of systems and control and accounting estimates.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

·    obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the                  company operates in and how the company are complying with the legal and regulatory framework;

·    inquired of management, and those charged with governance, about their own identification and assessment of the risks of              irregularities, including any known, actual, suspected or alleged instances of fraud;

·    discussed matters about non-compliance with laws or regulations and how fraud might occur including assessment of how and        where the financial statements may be susceptible to fraud.

·    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 potential bias, and              evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

Use of our report

This report is made solely to the Company's members, as a body​, in accordance with Chapter 3 of Part 16 of the Companies Act 2006.  Our audit work has been undertaken so that we might state to the Company's members​ those matters we are required to state to them in an auditors'​ report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Company​ and the Company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Dominick Knight​ (Senior statutory auditor)

For and on behalf of
Azets Audit Services, Statutory Auditor

Chartered Accountants

Connexions

159 Princes Street

Ipswich

IP1 1QJ

Date:17 September 2026​

The income statement has been prepared on the basis that all operations are continuing operations.

The financial statements were approved and authorised for issue by the board and were signed on its behalf:

Date: 17 September 2026 

Milbank Concrete Products Limited is a private company limited by shares and is incorporated in England & Wales. The address of its registered office is Milbank House​, Earls Colne Business Park​, Colchester​, Essex, CO6 2NS​.

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been applied consistently to all periods presented, unless otherwise stated.

The financial statements have been prepared under the historic cost convention unless otherwise specified within these accounting policies and in accordance with ​Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' (FRS 102) and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's​ accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in note 3.

The Company's functional and presentational currency is the Pound Sterling.

The Company has taken advantage of the following disclosure exemptions in preparing its ​​​​financial statements, as permitted by FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

• the requirements of Section 7 Statement of Cash Flows and paragraph 3.17(d).
• the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b), 11.48(c), 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A as equivalent information is included in the consolidated financial statements of the group in which the Company is consolidated.
• the requirements of paragraphs 26.18(b), 26.19 to 26.21 and 26.23 as the Company is a subsidiary and the share-based payment arrangement concerns equity instruments of another group entity.​​​
• the requirement of paragraph 33.7.

The information is included in the consolidated financial statements of Milbank Ventures Limited as at 31 December 2025 and these financial statements may be obtained from Companies House, Crown Way, Maindy, Cardiff, CF14 3UZ.

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

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end, foreign currency monetary items are translated using the closing rate, non-monetary items measured on a historical cost basis are translated using the exchange rate at the date of the transaction, and non-monetary items measured at fair value in a foreign currency are translated using the rate at the date when the fair value was determined.

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

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

• the Company​​​ ​has transferred the significant risks and rewards of ownership to the buyer;
• the Company​​​ retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
• the amount of revenue can be measured reliably;
• it is probable that the Company​​​ will receive the consideration due under the transaction; and
• the costs incurred or to be incurred in respect of the transaction can be measured reliably.

A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership to the lessee. If the lease does not transfer substantially all the risks and rewards incidental to ownership, it is classified as an operating lease. Lease classification is dependent on the substance of the transaction rather than the form of the contract. Classification is made at the inception of the lease and is not changed during the term of the lease unless both the lessee and lessor agree to change the provisions of the lease, at which point the classification is re-evaluated.

Finance leases

At the commencement of the lease term, the Company recognises its rights of use and obligations as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments calculated using the interest rate implicit in the lease, determined at the inception of the lease. If the implicit rate cannot be determined, the Company's incremental borrowing rate is used. Any incremental costs directly attributable to negotiating and arranging the lease are included in the cost of the asset.

Lease payments are apportioned between capital repayment and finance charge, using the effective interest method, to produce a constant rate of charge on the balance of the capital repayments outstanding.

Assets leased under finance leases are depreciated fully over the shorter of the lease term and their useful lives. At each balance sheet date, assets leased under finance leases are assessed for impairment.

Operating leases

Payments under operating leases are recognised as expenses in profit or loss over the lease term on a straight-line basis, unless another systematic basis is representative of the time pattern of the lessee's benefit, even if the payments are not on that basis.

Benefits received and receivable as an incentive to enter into an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is more representative of the time pattern of the lessee's benefit.

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown as accruals in the Statement of financial position. The assets of the scheme are held separately from the Company in independently administered funds.

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item recognised in other comprehensive income or directly in equity. In this case, the tax is recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:

• The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
• Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Tangible fixed assets are initially recognised at cost. Cost includes the purchase price and any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Subsequently, tangible fixed assets are measured using the cost model. Under the cost model, tangible assets are measured at cost less any accumulated depreciation and any accumulated impairment losses.

All tangible fixed assets are considered to have a finite useful life.

Depreciation is calculated to allocate the depreciable amount of tangible fixed assets to their residual values over their estimated useful lives on the following bases​:

If factors such as a change in how an asset is used, technological advancement, or changes in market prices indicate that the residual value or useful life of an asset has changed since the most recent balance sheet date, the Company reviews its previous estimates and, if current expectations differ, amends the residual value, amortisation method or useful life, accounting for this as a change in an accounting estimate.

Tangible fixed assets are derecognised on disposal, with the difference between the net disposal proceeds and the carrying amount recognised in profit or loss.

Assets that are subject to depreciation or amortisation are assessed at each balance sheet date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each reporting date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out (FIFO) basis. Work in progress and finished goods include labour costs and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If an item of stock​ is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Financial assets

Financial assets are initially measured at transaction price, including transaction costs, and subsequently held at cost less accumulated impairment, or at amortised cost using the effective interest method in the case of debt instruments meeting the criteria for recognition as basic financial instruments.

At each reporting date, financial assets are assessed for objective evidence of impairment with any impairment loss recognised in profit or loss. An impairment loss is calculated as the difference between the carrying amount and the best estimate of the recoverable amount which is an approximation of its sale value at the balance sheet date or, for basic debt instruments, the present value of estimated cash flows discounted at the asset’s original effective interest rate.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised when:

• the contractual rights to the cash flows from the asset expire or are settled; or
• substantially all the risks and rewards of the ownership of the asset are transferred to another party; or
• despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

Financial liabilities

A financial liability, where the arrangement constitutes a financing transaction, is initially measured at the present value of future payments discounted at a market rate of interest for a similar debt instrument as determined at initial recognition adjusted for transaction costs.

Basic financial liabilities are subsequently carried at amortised cost, using the effective interest rate method.

Financial liabilities are derecognised when the liability is extinguished, either by way of the contractual obligation having been discharged, cancelled or expired.

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when a shareholders' written resolution is passed.

Judgements in applying accounting policies and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements in applying the Company's accounting policies

In preparing these financial statements, the Directors have made the following judgements:

• Stock pricing
   
  The cost of certain stocks include direct labour and semi variable overheads. These are estimated and allocated to particular items by management based on all available relevant information and past experience.
   

An analysis of turnover by class of business is as follows:

All turnover arose within the United Kingdom.

Staff costs, including Directors' remuneration, were as follows:

The average monthly number of employees, including directors, during the year was as follows: