REGISTERED NUMBER: 13222244 (England and Wales)

Inga Group Limited

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements for the Year Ended 31st December 2025

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

6

Consolidated Income Statement

9

Consolidated Other Comprehensive Income

10

Consolidated Balance Sheet

11

Company Balance Sheet

12

Consolidated Statement of Changes in Equity

13

Company Statement of Changes in Equity

14

Notes to the Consolidated Financial Statements

15

DIRECTORS:

A Short

W Appelgren

N P Sanderson

A S Slettengren

REGISTERED OFFICE:

Walton Wood Farm

Thorpe Audlin

Pontefract

WF8 3HQ

REGISTERED NUMBER:

13222244 (England and Wales)

AUDITORS:

Smailes Goldie

Chartered Accountants

Statutory Auditor

Regent's Court

Princess Street

Hull

East Yorkshire

HU2 8BA

REVIEW OF BUSINESS

The group performed well in 2025 with organic revenue and associated volumes continuing to grow year on year, whilst continuing to provide customers with a creative, innovative, and safe approach to ingredient solutions.

Acquisitions

The Group continues to practically support its strategy of driving growth through targeted acquisitions. This approach was demonstrated in 2025 by the acquisition of JM Posner Limited, a business that not only reinforces the Group's commitment to its core target sectors but also brings a complementary and dynamic addition to the Group's portfolio.

Financial Key Performance Indicators

2025

2024

Movement

Revenue

£56.3m

£34m

+65% vs 2024

EBITDA

£6.4m

£3.7m

+73% vs 2024

Profit Before Tax (excluding goodwill amortisation)

£4.2m

£1.95m

+216% vs 2024

The key performance indicators for the company are consolidated group revenue and EBITDA.

Revenue for the Group increased to £56.3 million, reflecting a 65% growth compared to the prior year. This growth was primarily driven by organic revenue expansion alongside the acquisition of JM Posner Limited in April 2025. EBITDA for the Group increased to £6.4 million (2024: £3.7 million), which is attributable to both the acquisition of JM Posner, alongside year on year growth across the wider portfolio of businesses.

The Group continues to make strategic investments in both operating costs and infrastructure to support its long-term growth ambitions. During the year, this included capital investment in expanded warehousing and manufacturing capabilities across both the UK and French businesses. These investments are intended to enhance capacity, efficiency and service capability, with benefits expected to be realised over the medium term.

The Group's earnings remain strongly cash-generative, with EBITDA converting effectively into operating cash flow, supporting both capital reinvestment and acquisition activity.

Structured Acquisition Borrowing

The Group continues to adopt a disciplined and structured approach to funding, supporting its acquisition strategy alongside ongoing investment in operational infrastructure. Strong underlying cash generation remains a key feature of the business, with capital deployment during the year reflecting both acquisition activity and the working capital requirements associated with growth.

Structured borrowing forms an integral part of the Group's long-term capital framework, enabling efficient allocation of resources while preserving operational flexibility. During the year, an additional £6.5m of funding was secured to support strategic initiatives.

The Group maintains a robust liquidity position and remains well-placed to fund its ongoing investment strategy and future growth plans.

Goodwill

Non-cash goodwill amortisation increased during the year, as expected, following the acquisition of JM Posner Limited. This continues to represent a significant non-cash accounting charge under FRS 102 and is the primary driver of the Group's reported net loss for 2025, without impacting underlying trading performance or cash generation. For the year, goodwill amortisation totalled £6.7m.

Platform and Strategy

The Group enters 2026 with strong momentum, a growing platform across the UK and Europe, and a clear strategy to continue scaling through a combination of organic growth and targeted acquisitions. The Board remains focused on building a high-quality group of complementary businesses, supported by continued investment in infrastructure, capability, and leadership.

The Group's operating model is based on maintaining strong individual business identities, supported by a collaborative group platform and shared expertise, providing an attractive long-term home for our entrepreneurial businesses and leaders.

People and Capability

Inga continues to invest in the development of its people as a core element of its long-term growth strategy. This includes a focus on leadership development, capability building, and the ongoing strengthening of talent across the business.

Our approach is centred on supporting our local business leaders to scale sustainably, whilst ensuring we provide access to broader expertise and development opportunities across the wider Ingå Group.

Sustainability

Sustainability is one of our key principles and we were proud to continue on our sustainability journey with the United Nations Global Compact, of which we have been a member since 2022. The business is committed to building a sustainable future for all our stakeholders, and has long term initiatives, measures and commitments in place across the Group to achieve this.

The Group also continues to develop its understanding of broader value chain emissions (Scope 3) as part of its longer-term sustainability roadmap.

Streamlined Energy and Carbon Reporting (SECR)

The Group is required to report its energy use and associated greenhouse gas emissions in accordance with the UK Streamlined Energy and Carbon Reporting (SECR) framework.

Emissions

For the financial year ended 31 December 2025, the Group's total greenhouse gas emissions were:

Scope 1 (fuel combustion): 71 tCO2e

Scope 2 (purchased electricity): 78 tCO2e

Total emissions: 149 tCO2e

These emissions primarily relate to purchased electricity and fuel consumption across the Group's operational sites.

Energy consumption data is not consistently available across all Group entities, and therefore emissions have been reported on a carbon equivalent basis.

Intensity Metric

The Group has adopted the following intensity metric:

Emissions intensity: 2.64 tCO2e per £m revenue

This metric is considered the most appropriate measure given the nature and scale of the Group's operations.

Methodology

Emissions have been calculated in accordance with the Greenhouse Gas Protocol primarily using UK Government conversion factors, or equivalent internationally recognised sources where appropriate. Scope 2 emissions have been calculated on a location-based basis

This is the first year in which the Group has reported under the SECR framework and, accordingly, no comparative information has been presented

Energy Efficiency

The Group continues to monitor and improve energy efficiency across its operations. Actions during the year focused on energy monitoring, operational efficiency, and supplier engagement

The Group will continue to assess opportunities to reduce emissions and improve efficiency over time.

PRINCIPAL RISKS AND UNCERTAINTIES

The Board actively monitors and manages risks and uncertainties that the Company faces and implements proportional controlling and mitigating measures. The principal risks the board has identified include:

Volatility in the supply and demand environment relating to global market conditions and other socio-political factors. These risks are mitigated through structured procurement programmes and an ability to remain flexible to market pricing conditions. The Group also makes consideration for further compatible acquisitions, to generate efficiencies, strengthen market positions and spread group risk across different market sectors and geographies.

Competition - The Group manages competitive threats through product development and innovation, strong brand development and the adherence to high product quality and customer service standards. The business committed further costs within 2025 to support our development of the next generation of ingredients and applications, alongside significant operational capex.

Currency Risk - This is managed through a variety of intra-group hedging and matching methods.

Regulatory risks are actively monitored, and derive from changing food safety and other social & political factors - e.g. HFSS

Credit & Liquidity Risk - The Groups credit risk is primarily attributable to trade debtors and structured variable rate loans from the parent company. The Group actively monitors credit risk relating to macro market conditions and ensures a high level of liquidity within the business to allow us to absorb market led fluctuations.

ON BEHALF OF THE BOARD:

A Short - Director

27th April 2026

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

PRINCIPAL ACTIVITY

The principal activities of the group are the provision of innovative ingredient solutions to market sectors predominantly in the UK and Western Europe.

DIVIDENDS

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

DIRECTORS

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

A Short

W Appelgren

N P Sanderson

Other changes in directors holding office are as follows:

A S Slettengren was appointed as a director after 31st December 2025 but prior to the date of this report.

P J Warnstrom ceased to be a director after 31st December 2025 but prior to the date of this report.

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). 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 ought to have taken as a director in order to make himself 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 in accordance with Section 485 of the Companies Act 2006.

ON BEHALF OF THE BOARD:

A Short - Director

27th April 2026

Opinion

We have audited the financial statements of Inga Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31st December 2025 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company 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 group's and of the parent company affairs as at 31st December 2025 and of the group's 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 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 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 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 Limited Company, including the Companies Act 2006, FRS 102, taxation legislation, 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 Limited 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;

-

reading the minutes of meetings of those charged with governance;

-

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

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 members 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.

William Cowell FCA (Senior Statutory Auditor)

for and on behalf of Smailes Goldie

Chartered Accountants

Statutory Auditor

Regent's Court

Princess Street

Hull

East Yorkshire

HU2 8BA

27th April 2026

TURNOVER

3

56,292,403

33,952,680

Cost of sales

34,579,006

19,510,274

GROSS PROFIT

21,713,397

14,442,406

Administrative expenses

22,629,481

15,919,531

(916,084

)

(1,477,125

)

Other operating income

2,216

-

OPERATING LOSS

5

(913,868

)

(1,477,125

)

Interest receivable and similar income

42,456

10,025

(871,412

)

(1,467,100

)

Interest payable and similar expenses

6

1,566,696

1,303,748

LOSS BEFORE TAXATION

(2,438,108

)

(2,770,848

)

Tax on loss

7

1,363,026

1,000,995

LOSS FOR THE FINANCIAL YEAR

(3,801,134

)

(3,771,843

)

Loss attributable to:

Owners of the parent

(3,819,616

)

(3,771,843

)

Non-controlling interests

18,482

-

(3,801,134

)

(3,771,843

)

LOSS FOR THE YEAR

(3,801,134

)

(3,771,843

)

OTHER COMPREHENSIVE INCOME

Foreign exchange differences

955,599

(585,905

)

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

955,599

(585,905

)

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(2,845,535

)

(4,357,748

)

Total comprehensive income attributable to:

Owners of the parent

(2,859,017

)

(4,394,715

)

Non-controlling interests

13,482

36,967

(2,845,535

)

(4,357,748

)

FIXED ASSETS

Intangible assets

9

51,337,825

39,400,460

Tangible assets

10

4,540,239

1,259,773

Investments

11

-

-

55,878,064

40,660,233

CURRENT ASSETS

Stocks

12

9,101,241

4,412,090

Debtors

13

10,488,128

5,686,368

Cash at bank and in hand

7,289,584

7,696,804

26,878,953

17,795,262

CREDITORS

Amounts falling due within one year

14

34,391,733

24,865,707

NET CURRENT LIABILITIES

(7,512,780

)

(7,070,445

)

TOTAL ASSETS LESS CURRENT LIABILITIES

48,365,284

33,589,788

CREDITORS

Amounts falling due after more than one year

15

(171,292

)

-

PROVISIONS FOR LIABILITIES

18

(415,404

)

(45,048

)

NET ASSETS

47,778,588

33,544,740

CAPITAL AND RESERVES

Called up share capital

19

27,685

21,231

Share premium

20

58,010,940

40,933,010

Other reserves

20

188,737

(766,862

)

Retained earnings

20

(10,499,222

)

(6,679,606

)

SHAREHOLDERS' FUNDS

47,728,140

33,507,773

NON-CONTROLLING INTERESTS

21

50,448

36,967

TOTAL EQUITY

47,778,588

33,544,740

The financial statements were approved by the Board of Directors and authorised for issue on 27th April 2026 and were signed on its behalf by:

A Short - Director

FIXED ASSETS

Intangible assets

9

-

-

Tangible assets

10

-

-

Investments

11

88,844,000

62,987,855

88,844,000

62,987,855

CURRENT ASSETS

Debtors

13

1,670,186

580,252

Cash at bank

249,642

524,680

1,919,828

1,104,932

CREDITORS

Amounts falling due within one year

14

28,834,466

21,318,141

NET CURRENT LIABILITIES

(26,914,638

)

(20,213,209

)

TOTAL ASSETS LESS CURRENT LIABILITIES

61,929,362

42,774,646

CAPITAL AND RESERVES

Called up share capital

19

27,685

21,231

Share premium

20

58,010,940

40,933,010

Retained earnings

20

3,890,737

1,820,405

SHAREHOLDERS' FUNDS

61,929,362

42,774,646

Company's profit for the financial year

2,070,332

3,821,664

The financial statements were approved by the Board of Directors and authorised for issue on 27th April 2026 and were signed on its behalf by:

A Short - Director

Called up

share

Retained

Share

capital

earnings

premium

£

£

£

Balance at 1st January 2024

19,072

(2,907,763

)

35,823,828

Changes in equity

Issue of share capital

2,159

-

5,109,182

Total comprehensive income

-

(3,771,843

)

-

Balance at 31st December 2024

21,231

(6,679,606

)

40,933,010

Changes in equity

Issue of new shares

6,454

-

17,077,930

Total comprehensive income

-

(3,819,616

)

-

Balance at 31st December 2025

27,685

(10,499,222

)

58,010,940

Other

Non-controlling

Total

reserves

Total

interests

equity

£

£

£

£

Balance at 1st January 2024

(180,957

)

32,754,180

-

32,754,180

Changes in equity

Issue of share capital

-

5,111,341

-

5,111,341

Total comprehensive income

(585,905

)

(4,357,748

)

36,967

(4,320,781

)

Balance at 31st December 2024

(766,862

)

33,507,773

36,967

33,544,740

Changes in equity

Issue of new shares

-

17,084,384

-

17,084,384

Total comprehensive income

955,599

(2,864,017

)

13,482

(2,850,535

)

Balance at 31st December 2025

188,737

47,728,140

50,449

47,778,589

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1st January 2024

19,072

(2,001,259

)

35,823,828

33,841,641

Changes in equity

Issue of share capital

2,159

-

5,109,182

5,111,341

Total comprehensive income

-

3,821,664

-

3,821,664

Balance at 31st December 2024

21,231

1,820,405

40,933,010

42,774,646

Changes in equity

Issue of new shares

6,454

-

17,077,930

17,084,384

Total comprehensive income

-

2,070,332

-

2,070,332

Balance at 31st December 2025

27,685

3,890,737

58,010,940

61,929,362

1.	STATUTORY INFORMATION

Inga Group 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

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.

Financial Reporting Standard 102 - reduced disclosure exemptions

The group has taken advantage of the following disclosure exemption 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.

Basis of consolidation

The consolidated financial statements include the financial statements of the company and all of its

subsidiary undertakings made up to 31 December 2025. The results of companies acquired are included from the effective date of acquiring control.

Critical accounting judgements 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.

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 clean food 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 group 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.

Interest receivable

Interest income is recognised using the effective interest method.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of businesses in 2021, 2022, 2024 and 2025, is being amortised evenly over its estimated useful life of ten years. Goodwill associated with investments in foreign operations is restated annually using the appropriate foreign exchange rate at the year end.

Intangible assets

Intangible assets represent the fair value of the trade marks and computer software acquired by the

group. The value is amortised through the income statement account over its estimated useful

economic life, not exceeding 10 years. The directors regard 10 years as reasonable estimate of useful economic life of trademarks.

Trade marks and computer software are tested for impairment at least annually. Any impairment is

recognised immediately in the profit and loss account.

Tangible fixed assets

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

Long Leasehold

-

straight line over length of the lease

Plant and machinery

-

10 - 25% straight line, 15 - 33% reducing balance

Fixtures and fittings

-

20 - 25% straight line

Motor vehicles

-

20% straight line, 25% reducing

Computer equipment

-

10 - 50% straight line

Stocks

Cost is calculated using a replacement cost method. Provision is made for damaged, obsolete and

slow-moving stock where appropriate.

Financial instruments

The Group mainly enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities such as trade, other accounts receivable and payable and loans from related parties.

Debt instruments with no stated interest rate that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

Debt instruments such as loans, borrowings and other accounts receivable and payable over more than one year are initially measured at the transaction price including transaction cost. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction it is measured at present value.

Where material to the financial statements, derivative financial instruments are initially measured at fair value at the date on which a derivative contract is entered into and are subsequently measured at fair value through profit or loss.

Hedge accounting

When an unrecognised firm commitment or highly probably forecast transaction is designated as a hedged item with a corresponding hedging instrument in place, hedge accounting is used to recognise the fair value gain or loss on the hedged item. The cumulative hedging gain or loss is recognised as an asset or liability with a corresponding gain or loss recognised in profit or loss. Fair value is measured using observable market data.

Gains or losses relating to hedges of a net investment in a foreign operation are recognised in other comprehensive income to the extent they are effective, and profit and loss to the extent they are ineffective. The cumulative gains or losses on the effective portion are shown separately within other reserves in equity.

Taxation

Current tax represents the amount of tax payable or receivable in respect of the taxable profit (or loss) for the current or past reporting periods. It is measured at the amount expected to be paid or

recovered using the tax rates and laws that have been enacted or substantively enacted by the

balance sheet date.

Deferred tax represents the future tax consequences of transactions and events recognised in the

financial statements of current and previous periods. It is recognised in respect of all timing

differences, with certain exceptions. Timing differences are differences between taxable profits and

total comprehensive income as stated in the financial statements that arise from the inclusion of

income and expense in tax assessments in periods different from those in which they are recognised in the financial statements. 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.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively

enacted by the balance sheet date that are expected to apply to the reversal of timing differences.

Deferred tax on revalued non-depreciable tangible fixed assets and investment properties is measured using the rates and allowances that apply to the sale of the asset.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.