The accounts have been prepared under the historical cost convention and in accordance with FRS 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by Section 1A of the standard)

The directors have the opinion that there are adequate management controls in place to review and manage the business risks and finances of the company for the foreseeable future. Therefore they continue to adopt the going concern basis for preparing the financial statements.

Turnover represents the amounts receivable from the sale of goods and services supplied by the company which arise from the ordinary trading operations. Turnover is shown in the accounts net of Value Added Tax and trade discounts.

Turnover is recognised in the financial statements once it has been invoiced which occurs on the completion of a service performed or the sale of goods provided when the company becomes entitled to a consideration for the performance of its obligations.

A provision is also included in turnover for services that are in progress at the accounting reference date but have not been invoiced prior to that date. The value of the provision is based on the value of work performed up to that date.

Rentals payable under operating leases are charged against income on a straight line basis over the lease term.

The finance element of the rental payment is charged to the income statement on a straight-line basis.

The costs of short-term employee benefits are recognised as a liability and an expense. The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.

The current tax position is based on the taxable profit or loss. The taxable profit or loss may differ from the profit or loss reported in the financial statements because adjustments are made for items that are treated differently for tax purposes compared to their treatment for accounting purposes. The tax liability is based on current tax law and rates.

Deferred tax is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation compared to their treatment for accounting purposes. The deferred tax balance has not been discounted.

Dividends that are deemed to have been approved and paid during the period are included in these financial statements. Proposed dividends are only included as liabilities in the statement of financial position when their payment has been approved by the shareholders prior to the statement of financial position date.

Tangible fixed assets, other than freehold land, are stated at cost or valuation less depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off the cost or valuation of fixed assets, less their estimated residual value, over their expected useful lives on the following basis:

Assets held under finance lease or hire purchase contracts i.e. those contracts where substantially all the risks and rewards of ownership have passed to the company, are included in the appropriate category of tangible fixed assets and depreciated over the shorter of the lease term and their estimated expected useful lives.

Future obligations under such contracts are included in creditors net of the finance charge allocated to future periods.

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow moving items. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads where that is relevant to the items in stock.
Debtors include amounts recoverable on long term contracts which are stated at the net sales value of the work performed to date. Long term contracts consist of services which take more than one day to complete. A provision for contingencies, anticipated losses and amounts received on account are taken into consideration for the valuation where this is relevant to the contract being performed. Any excess progress payments are included in creditors as payments on account.

Provisions are recognised when the company has a present obligation as a result of a past event which it is more probable than not will result in an outflow of economic benefits that can be reasonably estimated.

The company has elected to apply the provisions of Section 11 Basic Financial Instruments and Section 12 Other Financial Instruments Issues of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Basic financial instruments included within these financial statements which includes current assets and liabilities are valued at the transaction price ruling at the date of the transaction.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.