REGISTERED NUMBER: 06166871 (England and Wales)

Ideal Building Systems 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

4

Report of the Independent Auditors

6

Consolidated Statement of Comprehensive Income

9

Consolidated Balance Sheet

10

Company Balance Sheet

11

Consolidated Statement of Changes in Equity

12

Company Statement of Changes in Equity

13

Consolidated Cash Flow Statement

14

Notes to the Consolidated Cash Flow Statement

15

Notes to the Consolidated Financial Statements

16

DIRECTORS:

P R Coates

M R Laverack

REGISTERED OFFICE:

Lancaster Road

Carnaby Industrial Estate

Bridlington

East Yorkshire

YO15 3QY

REGISTERED NUMBER:

06166871 (England and Wales)

AUDITORS:

Smailes Goldie

Chartered Accountants

Statutory Auditor

Regent's Court

Princess Street

Hull

East Yorkshire HU2 8BA

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 financial position of the Group are as shown in the accompanying financial statements.

The Directors are pleased with the Group's excellent performance during the year, which continues to build on the strong foundations laid in previous years. Revenue increased during the year as project activity strengthened, whilst continued investment in the production facility and efficiencies in the manufacturing process contributed to a further improvement in operating profit.

The Group remains debt free and has robust cash reserves.

The Company currently has secured revenue (orders and intents) for its full manufacturing capacity for the next financial year (ending December 2026), with some contracts extending well into the year ending December 2027

The Group continues to be fully engaged in integrating innovative, eco-friendly practices into its operations and building processes, ensuring that it contributes positively to the environment and helps drive the transition to a low-carbon economy

Ideal Building Systems Limited is committed to achieving Net Zero emissions by 2050 and has adopted carbon reduction targets for its direct emissions which align with those of the NHS.

PRINCIPAL RISKS AND UNCERTAINTIES

Material Supplies

Material availability remained generally stable throughout the year; however, financial pressures within the wider construction supply chain continue to require careful management. The Group continues to mitigate these risks through strong supplier relationships, strategic procurement and its ability, supported by strong cash reserves and significant storage capacity, to purchase materials in bulk and maintain appropriate stock levels. This approach provides resilience against potential supply chain disruption while enabling the Group to benefit from favourable purchasing terms.

Staff

Attracting and retaining quality staff remains a priority for the Group. We continue to invest in staff training, development and welfare and have further enhanced our employee benefits package to support employee wellbeing, engagement and retention. These initiatives, together with continued investment in our HR function and workplace facilities, help to ensure the Group remains an employer of choice and is well positioned to attract and retain the skilled workforce required to support future growth.

Market Demand and Competition

Whilst demand for high-quality offsite construction remains positive in the longer term, competition within the modular construction sector remains strong. The Group continues to differentiate itself through high-quality manufacturing, financial stability, ongoing investment in production efficiency and the delivery of a professional, reliable and financially competitive service to its clients.

Health and Safety

Maintaining a safe working environment remains a key priority for the Group. The Group continues to invest in employee training, safe working practices and the continual improvement of its manufacturing processes to minimise health and safety risks. A strong health and safety culture is promoted throughout the organisation, with employees and Directors sharing responsibility for maintaining safe working practices and ensuring compliance with all relevant legislation.

Regulatory and Sustainability Requirements

The Group continues to monitor developments in building safety legislation, , environmental regulation and sustainability requirements. Ongoing investment in compliance, manufacturing processes and carbon reduction initiatives ensures the Group remains well positioned to meet customer expectations, support its Net Zero objectives and comply with future regulatory requirements.

KPI'S

The company's key performance indicators are:

2025

2024

Revenue

29,404,796

25,828,309

Revenue growth

13.85%

-22.30%

Operating profit

3,601,668

3,502,535

Operating profit margin

12.25%

13.56%

ON BEHALF OF THE BOARD:

P R Coates - Director

3 August 2026

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

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of the manufacture of prefabricated buildings and the construction of steel buildings.

DIVIDENDS

The total distribution of dividends for the year ended 31st December 2025 will be £1,000,000 (2024: £1,035,000).

DIRECTORS

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

P R Coates

M R Laverack

Other changes in directors holding office are as follows:

Mrs P E Benmasaud ceased to be a director after 31 December 2025 but prior to the date of this report.

GOING CONCERN

The Company has considered forecasts covering the period to December 2027, together with its current cash position and available resources.The Company is dependent on Ideal Building Systems Ltd for its trading activity and cash generation; however, this is supported by a strong order book extending into mid-2027, a strong cash position, and minimal external borrowings. Having considered these factors, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for at least 12 months from the date of approval of the financial statements and have therefore prepared the financial statements on a going concern basis.

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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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, Smailes Goldie, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

P R Coates - Director

3 August 2026

Opinion

We have audited the financial statements of Ideal Building Systems 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 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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including United Kingdom Accounting Standards (FRS102), the Companies Act 2006 and relevant tax legislation We also considered those laws and regulations which may have a material indirect effect on the financial statements, or operations of the company including those relating to data protection, anti-bribery, employment, environmental and health and safety legislation. An understanding of these laws and regulations and the extent of compliance was obtained through discussion with management and inspecting legal and regulatory correspondence.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

-

performed analytical procedures to identify any unusual or unexpected relationships;

-

tested journal entries to identify unusual transactions;

-

assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

-

investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

-

agreeing financial statement disclosures to underlying supporting documentation;

-

enquiring of management as to actual and potential litigation and claims; and

-

reviewing correspondence with relevant regulators and the company's legal advisors.

Due to 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. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

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

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.

Matthew Fox FCCA (Senior Statutory Auditor)

for and on behalf of Smailes Goldie

Chartered Accountants

Statutory Auditor

Regent's Court

Princess Street

Hull

East Yorkshire HU2 8BA

3 August 2026

TURNOVER

29,404,796

25,828,309

Cost of sales

20,964,245

16,442,198

GROSS PROFIT

8,440,551

9,386,111

Administrative expenses

4,864,221

5,905,254

3,576,330

3,480,857

Other operating income

25,338

21,678

OPERATING PROFIT

4

3,601,668

3,502,535

Interest receivable and similar income

5

492,790

426,667

4,094,458

3,929,202

Gain/loss on revaluation of investments

76,855

71,738

4,171,313

4,000,940

Interest payable and similar expenses

6

(1,874

)

(573

)

PROFIT BEFORE TAXATION

4,173,187

4,001,513

Tax on profit

7

1,067,924

1,026,337

PROFIT FOR THE FINANCIAL YEAR

3,105,263

2,975,176

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

3,105,263

2,975,176

Profit attributable to:

Owners of the parent

3,104,041

2,947,402

Non-controlling interests

1,222

27,774

3,105,263

2,975,176

Total comprehensive income attributable to:

Owners of the parent

3,104,041

2,947,402

Non-controlling interests

1,222

27,774

3,105,263

2,975,176

FIXED ASSETS

Intangible assets

10

600,929

867,557

Tangible assets

11

1,985,362

1,976,867

Investments

12

1,046,067

960,255

3,632,358

3,804,679

CURRENT ASSETS

Stocks

13

2,868,543

1,142,847

Debtors

14

6,319,312

7,319,926

Cash at bank and in hand

11,081,483

11,073,728

20,269,338

19,536,501

CREDITORS

Amounts falling due within one year

15

4,435,495

5,892,169

NET CURRENT ASSETS

15,833,843

13,644,332

TOTAL ASSETS LESS CURRENT LIABILITIES

19,466,201

17,449,011

CREDITORS

Amounts falling due after more than one year

16

-

(54,347

)

PROVISIONS FOR LIABILITIES

18

(190,449

)

(189,175

)

NET ASSETS

19,275,752

17,205,489

CAPITAL AND RESERVES

Called up share capital

19

96,953

96,953

Share premium

20

50,000

50,000

Capital redemption reserve

20

3,047

3,047

Retained earnings

20

18,430,705

16,361,664

SHAREHOLDERS' FUNDS

18,580,705

16,511,664

NON-CONTROLLING INTERESTS

21

695,047

693,825

TOTAL EQUITY

19,275,752

17,205,489

The financial statements were approved by the Board of Directors and authorised for issue on 3 August 2026 and were signed on its behalf by:

P R Coates - Director

M R Laverack - Director

FIXED ASSETS

Intangible assets

10

-

-

Tangible assets

11

819,417

837,982

Investments

12

9,474,121

9,474,121

10,293,538

10,312,103

CURRENT ASSETS

Debtors

14

4,542

4,214

Cash at bank

11,611

5,831

16,153

10,045

CREDITORS

Amounts falling due within one year

15

1,056,947

2,065,663

NET CURRENT LIABILITIES

(1,040,794

)

(2,055,618

)

TOTAL ASSETS LESS CURRENT LIABILITIES

9,252,744

8,256,485

CAPITAL AND RESERVES

Called up share capital

19

96,953

96,953

Share premium

20

50,000

50,000

Capital redemption reserve

20

3,047

3,047

Retained earnings

20

9,102,744

8,106,485

SHAREHOLDERS' FUNDS

9,252,744

8,256,485

Company's profit for the financial year

1,996,259

1,746,355

The financial statements were approved by the Board of Directors and authorised for issue on 3 August 2026 and were signed on its behalf by:

P R Coates - Director

M R Laverack - Director

Called up

share

Retained

Share

capital

earnings

premium

£

£

£

Balance at 1 January 2024

96,953

14,449,262

50,000

Changes in equity

Dividends

-

(1,035,000

)

-

Total comprehensive income

-

2,947,402

-

Balance at 31 December 2024

96,953

16,361,664

50,000

Changes in equity

Dividends

-

(1,035,000

)

-

Total comprehensive income

-

3,104,041

-

Balance at 31 December 2025

96,953

18,430,705

50,000

Capital

redemption

Non-controlling

Total

reserve

Total

interests

equity

£

£

£

£

Balance at 1 January 2024

3,047

14,599,262

666,051

15,265,313

Changes in equity

Dividends

-

(1,035,000

)

-

(1,035,000

)

Total comprehensive income

-

2,947,402

27,774

2,975,176

Balance at 31 December 2024

3,047

16,511,664

693,825

17,205,489

Changes in equity

Dividends

-

(1,035,000

)

-

(1,035,000

)

Total comprehensive income

-

3,104,041

1,222

3,105,263

Balance at 31 December 2025

3,047

18,580,705

695,047

19,275,752

Called up

Capital

share

Retained

Share

redemption

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1 January 2024

96,953

7,360,130

50,000

3,047

7,510,130

Changes in equity

Dividends

-

(1,000,000

)

-

-

(1,000,000

)

Total comprehensive income

-

1,746,355

-

-

1,746,355

Balance at 31 December 2024

96,953

8,106,485

50,000

3,047

8,256,485

Changes in equity

Dividends

-

(1,000,000

)

-

-

(1,000,000

)

Total comprehensive income

-

1,996,259

-

-

1,996,259

Balance at 31 December 2025

96,953

9,102,744

50,000

3,047

9,252,744

Cash flows from operating activities

Cash generated from operations

1

2,160,599

5,380,419

Interest paid

3,494

4,000

Interest element of hire purchase payments paid

(1,620

)

(3,427

)

Tax paid

(1,098,913

)

(857,754

)

Net cash from operating activities

1,063,560

4,523,238

Cash flows from investing activities

Purchase of tangible fixed assets

(480,819

)

(528,324

)

Purchase of fixed asset investments

(133,599

)

(386,119

)

Sale of tangible fixed assets

46,650

225,898

Sale of fixed asset investments

124,643

398,087

Interest received

492,790

426,667

Net cash from investing activities

49,665

136,209

Cash flows from financing activities

Capital repayments in year

(70,470

)

(139,919

)

Equity dividends paid

(1,035,000

)

(1,035,000

)

Net cash from financing activities

(1,105,470

)

(1,174,919

)

Increase in cash and cash equivalents

7,755

3,484,528

Cash and cash equivalents at beginning of year

2

11,073,728

7,589,200

Cash and cash equivalents at end of year

2

11,081,483

11,073,728

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

2025

2024

£

£

Profit before taxation

4,173,187

4,001,513

Depreciation charges

711,235

681,905

(Profit)/loss on disposal of fixed assets

(18,934

)

39,583

Gain on revaluation of fixed assets

(76,855

)

(71,738

)

Finance costs

(1,874

)

(573

)

Finance income

(492,790

)

(426,667

)

4,293,969

4,224,023

(Increase)/decrease in stocks

(1,725,696

)

318,544

Decrease in trade and other debtors

1,000,614

160,352

(Decrease)/increase in trade and other creditors

(1,408,288

)

677,500

Cash generated from operations

2,160,599

5,380,419

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

11,081,483

11,073,728

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

11,073,728

7,589,200

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.25

Cash flow

At 31.12.25

£

£

£

Net cash

Cash at bank and in hand

11,073,728

7,755

11,081,483

11,073,728

7,755

11,081,483

Debt

Finance leases

(70,470

)

70,470

-

(70,470

)

70,470

-

Total

11,003,258

78,225

11,081,483

1.	STATUTORY INFORMATION

Ideal Building Systems Holdings Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared in accordance with applicable accounting standards including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The financial statements have been prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value.

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

Basis of consolidation

The consolidated financial statements include the financial statements of the company and its subsidiary undertakings.The acquisition method of accounting has been adopted. Under this method the results of subsidiary undertakings acquired or disposed of in the year are included in the consolidated profit and loss account from the date of acquisition or up to the date of disposal.

Under Section 408 of the Companies Act 2006 the company is exempt from the requirement to present its own profit and loss account.

Turnover

Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. The policies adopted for the recognition of turnover are as follows:

Sale of goods

Turnover from the sale of prefabricated units is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually on dispatch of the goods.

Construction contracts

When the outcome of a construction contact can be estimated reliably, contract costs and turnover are recognised by reference to the stage of completion at the balance sheet date. Stage of completion is measured by reference to costs incurred to date and estimated costs to complete.

Where the outcome cannot be measured reliably, contract costs are recognised as an expense in the period in which they are incurred and contract turnover is recognised to the extent of costs incurred that it is probable will be recoverable.

When it is probable that contact costs will exceed the total contact turnover, the expected loss is recognised as an expense immediately, with a corresponding provision.

Interest and other income

Interest income is recognised using the effective interest method.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 1993, was amortised evenly over its estimated useful life of twenty years.

Purchased goodwill (representing the excess of the fair value of the consideration given over the fair value of the separable net assets acquired) arising on business combinations is capitalised. Positive goodwill is amortised to nil by equal annual instalments over its estimated useful life of twenty years which the directors consider to be its useful economic life. The carrying value of goodwill is reviewed whenever there is an indicator of impairment. Any impairment is recognised in the period in which it is identified.