REGISTERED NUMBER: 00457634 (England and Wales)

SECANIM Limited

Strategic Report, Report of the Directors and

Audited Financial Statements for the Year Ended 31 December 2025

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Income Statement

10

Other Comprehensive Income

12

Balance Sheet

13

Statement of Changes in Equity

14

Notes to the Financial Statements

15

DIRECTORS:

R Poskitt

B O Jeewooth

T B Versterre

SECRETARY:

B O Jeewooth

REGISTERED OFFICE:

Ings Road

Doncaster

South Yorkshire

DN5 9TL

REGISTERED NUMBER:

00457634 (England and Wales)

SENIOR STATUTORY AUDITOR:

Ian Parsons FCA

AUDITORS:

Parsons Accountants Ltd

Statutory Auditor

Unit 2 Silkwood Park

Fryers Way

Ossett

West Yorkshire

WF5 9TJ

BANKERS:

HSBC plc

City Office

33 Park Row

Leeds

West Yorkshire

LS1 1LD

SOLICITORS:

Ramsdens Solicitors

7 King Street

Mirfield

West Yorkshire

WF14 8AW

Business Overview and Business Model

SECANIM Limited (the "Company") is a wholly owned subsidiary of SARIA Limited. The Company provides collection, transport and processing services for fallen stock and other high-risk animal by-products generated by the livestock and meat processing industries.

The Company operates collection networks serving livestock farmers, abattoirs and other agricultural businesses. The collected material is processed at dedicated facilities to produce meat and bone meal and tallow in accordance with animal by-product legislation.

Customers include livestock producers, poultry producers, abattoirs, local authorities and government bodies. The Company also holds contingency contracts with the UK Government for the secure disposal of animal by-products generated during a national animal disease outbreak.

Operations are primarily supported by processing facilities at Widnes and associated collection networks across the United Kingdom.

During the year the Directors decided to close the processing facility at Widnes due to its unsustainable economic performance, however, will continue to provide collection and disposal services to its customers.

The Company's financial performance is influenced by raw material availability, market demand for rendered products, energy costs and regulatory requirements governing animal by-product processing.

Review of Performance and Position

For the year ended 31 December 2025, the Company reported a loss of £12.5m (2024: £24m loss). Whilst performance has improved, the remaining loss reflects continued pressures from energy costs, declining market values for fats and rendered products, and challenging trading conditions within the sector.

At the year end, the Company reported net liabilities of £64.3m (2024: £51.8m). The movement in shareholders' funds primarily reflects the losses incurred during the year.

The Directors have continued to focus on operational efficiency, cost management and optimisation of processing activities across the business.

Key Performance Indicators

The Directors monitor the performance of the Company using a combination of financial and operational key performance indicators.

Financial KPIs include operating loss, EBITDA performance, gross margin and net asset levels.

Operational KPIs include collection volumes, processing throughput, plant utilisation, energy consumption and health and safety performance.

These indicators assist the Directors in assessing the development, performance and financial position of the Company.

Although the above KPI's are monitored closely, disclosure of any numerical information has been omitted where management believe this would be prejudicial to the company.

Principal Risks and Uncertainties

The Directors have identified a number of principal risks and uncertainties that could affect the Company's performance, financial position or future prospects.

Operational and Market Risks

Raw material supply risk

The Company relies on the collection of fallen stock and other high-risk animal by-products from the livestock and meat processing sectors. Changes in agricultural activity or regulatory frameworks could affect material volumes available for processing.

Commodity price volatility

Market values for tallow and meat and bone meal are subject to fluctuations influenced by global demand, energy markets and regulatory developments. Changes in these markets may affect the Company's profitability.

Energy cost risk

Rendering and processing operations require significant energy input. Volatility in electricity and gas prices may materially affect operating costs. The Company monitors energy usage and continues to assess operational efficiency improvements.

Regulatory and legislative risk

The processing of high-risk animal by-products is subject to strict regulatory oversight. Changes to animal by-product legislation or environmental requirements could affect operational processes or product markets.

Operational risk

The Company operates specialised processing plants and collection networks. Equipment failure, plant disruption or logistics interruptions could impact service delivery and financial performance. Preventative maintenance and operational monitoring are used to mitigate these risks.

Financial Risks

The Company is exposed to financial risks arising from its operations and the use of financial instruments.

Liquidity and cash flow risk

Liquidity and cash flows are managed as part of a Group Liquidity Solution through regular cash flow forecasting, close monitoring of working capital, and disciplined control of capital expenditure.

Credit risk

Credit risk is managed through customer credit assessments, ongoing monitoring of receivable balances, and established credit control procedures.

Foreign currency risk

The Company is exposed to exchange rate movements in respect of export sales and certain purchases. Group mitigates this risk with natural hedges available across its diverse customer and vendor bases, and treasury functions available from the Parent.

Inflation and cost risk

The Company is exposed to changes in labour, maintenance, transport and other operating costs. Cost management and efficiency initiatives are used to mitigate this exposure.

Capital and funding risk

The Company requires ongoing investment in vehicles, plant and equipment to maintain operational efficiency and compliance. The Directors mitigate this risk through capital planning, close monitoring of asset performance, and support from Group where appropriate.

Employee Involvement

The Directors are committed to ensuring genuine and effective employee involvement in the company's activities. The company believes that by providing regular updates to staff as to the company's progress, taking cognisance of staff feedback and by involving staff where possible in decisions, the overall effectiveness of the business through this teamwork is enhanced and that the morale of the work force is positively impacted.

Health and safety is a key priority given the operational nature of the Company's activities. Processing plants and collection operations involve inherent risks which are managed through established safety procedures, training programmes and ongoing monitoring.

The Company aims to promote a strong safety culture across its operations in order to protect employees, contractors and the communities in which it operates.

Employees

The Company participates in group policies relating to employee welfare, health and safety, pensions and other benefits.

Details of employee numbers and related costs are disclosed in note 5 to the financial statements.

Future Developments

The Directors expect the Company to continue developing its established collection and processing operations.

Investment in processing capability and operational efficiency improvements will continue where appropriate in order to reduce operating costs and enhance environmental performance.

The Company will also continue to develop value-added processing opportunities for animal by-products, including the recovery of materials suitable for renewable energy production and agricultural use.

Going Concern

The financial statements have been prepared on a going concern basis. In making this assessment, the Directors have reviewed forecasts and cash flow projections and believe that the Company is appropriately resourced to continue trading for the foreseeable future.

The Company participates in a Group Liquidity Solution and expects to continue to benefit from the ongoing financial support and treasury arrangements provided by the German parent company in the immediate future.

The Directors consider that this Strategic Report provides a fair, balanced and comprehensive review of the Company's development, performance, position and principal risks and uncertainties.

ON BEHALF OF THE BOARD:

B O Jeewooth - Director

18 May 2026

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of a collector and processor of mammalian industry by-products. SecAnim provides a unique fully integrated collection and processing service to the UK farming and meat production sector.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2025.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

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

R Poskitt

T B Versterre

Other changes in directors holding office are as follows:

B O Jeewooth - appointed 1 January 2025

QUALIFYING THIRD PARTY INDEMNITY PROVISIONS

The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the 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 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 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 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.

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 company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Parsons Accountants Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

B O Jeewooth - Director

18 May 2026

Opinion

We have audited the financial statements of SECANIM Limited (the 'company') for the year ended 31 December 2025 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, and 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 company's affairs as at 31 December 2025 and of its loss 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 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 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 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 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 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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, or returns adequate for our audit have not been received from branches not

visited by us; or

- the 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 five, 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 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 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 Auditor's that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the 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.

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.

Our approach to identifying and assessing the risks of material misstatements in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to

identify or recognise non-compliance with applicable laws and regulations;

- We identified the laws and regulations applicable to the company through discussions with directors and other management, and

from our commercial knowledge and experience of the industry;

- We 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 the Companies Act 2006, taxation legislation, data protection, anti-bribery,

employment and health and safety legislation;

- We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management

and inspecting legal correspondence; and

- We remained alert to instances of non-compliance throughout the audit.

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 as to where they considered there was susceptibility to fraud and their knowledge of actual,

suspected and alleged fraud; 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 identified procedures which included, but were not limited to:

- Agreeing financial statements disclosures to underlying supporting documentation;

- Reading the minutes of meetings of those charged with governance;

- Enquiring of management as to actual and potential litigation and claims; and

- Reviewing correspondence with HMRC, relevant regulators and the Company's legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulation s are from financial transactions, the less likely it is that we would become aware 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.

Material misstatements that arise due fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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 your Report of the Auditor's.

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.

Ian Parsons FCA (Senior Statutory Auditor)

for and on behalf of Parsons Accountants Ltd

Statutory Auditor

Unit 2 Silkwood Park

Fryers Way

Ossett

West Yorkshire

WF5 9TJ

18 May 2026

TURNOVER

4

11,763,207

-

11,763,207

Changes in stocks of finished goods and work in progress

34,109

-

34,109

11,797,316

-

11,797,316

Other operating income

266,823

-

266,823

12,064,139

-

12,064,139

Raw materials and consumables

(4,310,031

)

-

(4,310,031

)

Other external expenses

(661,643

)

-

(661,643

)

7,092,465

-

7,092,465

Staff costs

(4,544,410

)

-

(4,544,410

)

Depreciation

(2,867,028

)

-

(2,867,028

)

Other operating expenses

(8,789,138

)

-

(8,789,138

)

OPERATING LOSS

6

(9,108,111

)

-

(9,108,111

)

Interest payable and similar expenses

9

(3,438,093

)

-

(3,438,093

)

LOSS BEFORE TAXATION

(12,546,204

)

-

(12,546,204

)

Tax on loss

10

50,234

-

50,234

LOSS FOR THE FINANCIAL YEAR

(12,495,970

)

-

(12,495,970

)

TURNOVER

4

7,969,690

1,809,942

9,779,632

Changes in stocks of finished goods and work in progress

40,481

(159,068

)

(118,587

)

8,010,171

1,650,874

9,661,045

Other operating income

239,754

85,684

325,438

8,249,925

1,736,558

9,986,483

Raw materials and consumables

(4,103,103

)

(1,180,207

)

(5,283,310

)

Other external expenses

(461,743

)

-

(461,743

)

3,685,079

556,351

4,241,430

Staff costs

(4,326,210

)

(1,692,157

)

(6,018,367

)

Depreciation

(2,592,464

)

(451,137

)

(3,043,601

)

Other operating expenses

(7,939,451

)

(2,886,088

)

(10,825,539

)

OPERATING LOSS

6

(11,173,046

)

(4,473,031

)

(15,646,077

)

Interest payable and similar expenses

9

(5,513,283

)

(427,525

)

(5,940,808

)

LOSS BEFORE TAXATION

(16,686,329

)

(4,900,556

)

(21,586,885

)

Tax on loss

10

(2,457,107

)

-

(2,457,107

)

LOSS FOR THE FINANCIAL YEAR

(19,143,436

)

(4,900,556

)

(24,043,992

)

LOSS FOR THE YEAR

(12,495,970

)

(24,043,992

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(12,495,970

)

(24,043,992

)

FIXED ASSETS

Intangible assets

11

-

-

Tangible assets

12

25,177,319

27,715,535

25,177,319

27,715,535

CURRENT ASSETS

Stocks

13

333,855

297,419

Debtors

14

2,001,449

2,178,211

Cash at bank and in hand

6,580

56,598

2,341,884

2,532,228

CREDITORS

Amounts falling due within one year

15

91,525,346

82,014,275

NET CURRENT LIABILITIES

(89,183,462

)

(79,482,047

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(64,006,143

)

(51,766,512

)

CREDITORS

Amounts falling due after more than one year

16

(4,600

)

(4,600

)

PROVISIONS FOR LIABILITIES

20

(256,339

)

-

NET LIABILITIES

(64,267,082

)

(51,771,112

)

CAPITAL AND RESERVES

Called up share capital

21

1,150

1,150

Share premium

22

618,233

618,233

Revaluation reserve

22

5,287,960

5,421,231

Capital redemption reserve

22

400

400

Retained earnings

22

(70,174,825

)

(57,812,126

)

SHAREHOLDERS' FUNDS

(64,267,082

)

(51,771,112

)

The financial statements were approved by the Board of Directors and authorised for issue on 18 May 2026 and were signed on its behalf by:

B O Jeewooth - Director

Called up

share

Retained

Share

capital

earnings

premium

£

£

£

Balance at 1 January 2024

1,150

(33,901,405

)

618,233

Changes in equity

Total comprehensive income

-

(23,910,721

)

-

Balance at 31 December 2024

1,150

(57,812,126

)

618,233

Changes in equity

Total comprehensive income

-

(12,362,699

)

-

Balance at 31 December 2025

1,150

(70,174,825

)

618,233

Capital

Revaluation

redemption

Total

reserve

reserve

equity

£

£

£

Balance at 1 January 2024

5,554,502

400

(27,727,120

)

Changes in equity

Total comprehensive income

(133,271

)

-

(24,043,992

)

Balance at 31 December 2024

5,421,231

400

(51,771,112

)

Changes in equity

Total comprehensive income

(133,271

)

-

(12,495,970

)

Balance at 31 December 2025

5,287,960

400

(64,267,082

)

1.	DISCONTINUED OPERATIONS

The discontinued operation in the prior year, relates to the closure of the Renewable Energy Division at Widnes. The decision and closure occurred prior to 31 December 2024.

The decision to close the rendering factory at Widnes taken in the current year and the restructuring costs associated with it, are being shown as part of the continuing operations of the current year. Whilst the decision was made prior to 31 December 2025, the actual closure did not take place until after the year end.

The operation of the facility was continuing for the whole of 2025.

2.	STATUTORY INFORMATION

SECANIM 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 Company Information page.

3.	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 presentational currency is GBP and the financial statements are rounded to the nearest pound.

Going concern

The company was profit making in 2016 and 2017, however due to unforeseen market conditions that profitability has not continued since.

The group strategy for this company has been to invest in the production facilities at Widnes, and to consolidate this site with the operations of Exeter in order to reduce costs. Unfortunately, in addition to the local market conditions, the company has also been impacted by the global fall in fat values which has coincided with an increase in the costs of production due to rising energy costs.

In 2025 the directors announced their intention to close the rendering facility at Widnes in Q1 2026. The company intends to continue trading raw material, and will retain the site at Widnes, should the opportunity arise to recommence profitable rendering operations.

The company continues to be dependent upon the financial support of its parent undertaking, however the directors of the parent entity have confirmed this support for at least 12 months from the date of signing the accounts, due to the integrated nature of the groups operations.

Whist performance is still disappointing, the directors consider any previous impairment on continuing operations to have been sufficient and it continues to be appropriate to prepare the financial statements on the going concern basis.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these 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;

•

the requirement of paragraph 33.7.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Significant judgements and estimates

In respect of depreciation, the entity is largely governed by the Rethmann accounting policies (issued by the parent group). These policies/rates are followed, to the extent that they are reflective of the average economic consumption of the asset type. Where the actual consumption of a class of asset differs materially from this policy, a more appropriate rate is applied.

In the current year the Directors have assessed the recoverability of the entities assets. Due to current performance it was deemed more appropriate to value the plant and equipment of the entity on a realisable value basis. As the same approach was taken in 2022 and an impairment was recognised in that period, no further impairment for the current year was deemed necessary.

The Rethmann policy of bad debt provision is applied, being 100% for debts over 365 days old, 50% for debts over 180 days old and 1% against all other debts.

Stock ageing is reviewed regularly by management to assess the requirement for a slow moving/obsolescence provision, however any such provision is not currently deemed necessary.

Turnover

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

Turnover is recognised on the sale of goods, on despatch of those goods from our sites when the significant risks and rewards of ownership are transferred to our customers.

Turnover is recognised on the performance of services, as and when those services are carried out.

Other income

Other income arises from the recharge of operating costs incurred by an entity, where the facility of that entity is used by other group companies.

Straight recharge of costs that can be allocated directly to another group company are treated as recharges only, and the cost is passed directly to the other entity. No income is recognised in this instance.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2012, has been full amortised.

Tangible fixed assets

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property - 33 years straight line

Long leasehold - Term of the lease

Plant & machinery - 4 - 10 years straight line

Fixtures & fittings - 3 - 10 years straight line

Motor vehicles - 16.67% - 25% on reducing balance, 11 years straight line for trailers and 2 - 6 years estimated

remaining useful life (specific to used vehicles)

Assets under - not provided

construction

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

For manufactured goods, the absorption cost method of valuation is used incorporating all production overheads. If this results in a value higher than net realisable value for any stock item, then the selling price of that item is applied.

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Income Statement.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an enforecable 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.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of posting the transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

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 company has members in the SARIA Group Pension Schemes, funded defined benefit schemes.

The above defined benefit schemes have been closed to new members. Alternative provision is made for new employees in the form of a defined contribution scheme.

The pension charge represents contributions payable to the funds in respect of the accounting period.