REGISTERED NUMBER: 15980252 (England and Wales)

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIOD

26 SEPTEMBER 2024 TO 31 DECEMBER 2025

FOR

FORTIS WINDROSE HOLDINGS LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Consolidated Income Statement

11

Consolidated Other Comprehensive Income

12

Consolidated Balance Sheet

13

Company Balance Sheet

14

Consolidated Statement of Changes in Equity

15

Company Statement of Changes in Equity

16

Consolidated Cash Flow Statement

17

Notes to the Consolidated Cash Flow Statement

18

Notes to the Consolidated Financial Statements

19

Directors:

S Pearce

A Todd

N Todd

Registered office:

Dickens House

Guithavon Street

Witham

Essex

CM8 1BJ

Registered number:

15980252 (England and Wales)

Senior statutory auditor:

S Collins

Auditors:

Baverstocks Limited

Statutory Auditor

Chartered Certified Accountants

Dickens House

Guithavon Street

Witham

Essex

CM8 1BJ

The directors present their strategic report of the company and the group for the period 26 September 2024 to 31 December 2025.

Review of business

During 2025, Fortis Vision delivered sustainable, controlled growth while strengthening the resilience of its operating platform. Turnover increased by 14.1% to £48.93 million, supported by successful delivery across construction, hotel and leisure, Purpose-Built Student Accommodation (PBSA) and care home markets. Continued diversification of the client and sector portfolio, combined with repeat business from established customers, reduced reliance on any single market and created a more balanced order book to support long-term growth.

Despite ongoing cost pressures, supply-chain constraints and evolving regulatory requirements, the business maintained positive momentum and increased operating profit by 13.3%. Investment in people, leadership, procurement, systems, design management and compliance strengthened operational control and supported the delivery of larger, more complex schemes, including Fortis Vision's largest and most technically demanding project to date: a £12.5 million conversion of four former commercial buildings into student accommodation in Leeds.

A further significant milestone was the successful completion of a management buyout in August 2025, which broadened ownership across the senior leadership team, ensured continuity of management and established a strong platform for the group to take into the next phase of the business.

The Group remains committed to supporting Fortis Vision and its associated businesses through strategic oversight, governance and investment. Particular focus has been placed on National FPS Ltd (NFPS) during the year, where management identified opportunities to improve operational efficiency, strengthen client engagement and develop broader service offerings. This focus is intended to improve collaboration across the Group, make better use of existing resources and support the development of additional client opportunities within existing and complementary markets.

Growth within NFPS is being pursued through a disciplined approach to client selection, the expansion of long-term relationships and the targeting of opportunities aligned with the Group's operational expertise. The Board believes there is potential to develop market share through integrated solutions and delivery capability established across the wider Fortis group of companies. This approach is intended to build a stronger pipeline and provide a sound basis for controlled growth.

The Group has continued to invest in technology, process automation and data management to improve efficiency, productivity and governance. These investments are expected to generate long-term benefits through improved resource utilisation, enhanced reporting capability and tighter operational control. Together with the continued development of management teams, these improvements position the Group to respond effectively to market opportunities whilst maintaining strong commercial discipline.

Fortis Windrose Holdings remains focused on creating sustainable value through disciplined growth, operational excellence and strategic investment. The Board continues to adopt a measured approach to expansion, with continued emphasis on cash generation, profitability, risk management and the consistent delivery of high-quality services.

Principal risks and uncertainties

The Directors maintain a robust risk-management framework, reviewed regularly as part of the Group's governance arrangements. The principal risks and mitigating actions include:

1. Operational Efficiency Risk: Failure to maintain process and efficiency improvements may adversely affect profitability and growth. The Group continues to invest in systems, management information and standardised processes to support continuous improvement.

2. Market Conditions: Economic uncertainty, inflationary pressures and changing client investment strategies may affect demand. The Group seeks to mitigate this through diversification of sectors, services and client relationships.

3. Growth and Integration Risk: Growth initiatives may introduce operational and control challenges. Scalable systems, appropriate governance and experienced leadership support the management and integration of new opportunities.

4. Client Concentration Risk: The Group continues to broaden its client base and develop opportunities within new and existing markets to reduce reliance on any individual customer or sector.

5. People and Talent Retention: Attracting, developing and retaining high-quality personnel remains important to long-term success. Investment in development, succession planning and employee welfare supports workforce stability.

6. Regulatory and Compliance Risk: Evolving legislative and regulatory requirements may increase operational demands and project timescales. The Group maintains appropriate compliance procedures and continues to invest in governance and regulatory capability.

7. Information Security and Governance: Cyber and data-security risks may disrupt operations or compromise information. The Group continues to strengthen systems, controls and governance arrangements to support business resilience.

8. NFPS Growth and Execution: The successful development of NFPS depends upon disciplined opportunity selection, suitable resources and consistent delivery. Management will monitor pipeline quality, operational capacity, client concentration and commercial performance as the business develops.

Financial position

The Group continued to focus on maintaining a strong financial position, supported by disciplined cash management, careful investment decisions and a clear focus on profitability. The Board remains committed to reinvesting appropriately in operational capability, technology and people to support sustainable growth whilst maintaining a prudent balance sheet.

Investment during the year focused on process improvement, operational systems and organisational capability. These investments are intended to generate long-term efficiencies and strengthen the resilience of the Group's businesses.

The Board continues to monitor cash generation, working-capital management and profitability closely, ensuring that the Group remains positioned to pursue appropriate strategic opportunities without compromising financial discipline.

Outlook

The Directors remain confident in the long-term prospects of Fortis Windrose Holdings. The strategic focus for the coming year will remain centred on process improvement, operational efficiency and sustainable growth across the Group.

Within NFPS, management will pursue additional client opportunities that align with the Group's core strengths and delivery capabilities. Investment will continue to be directed towards enhancing operational performance, improving the client experience and strengthening the service offering to established clients, whilst targeting carefully selected new opportunities.

The Board believes that strengthened leadership, improved operational systems, established client relationships and a continued focus on efficiency provide a sound platform for profitable growth.

On behalf of the board:

N Todd - Director

22 September 2026

The directors present their report with the financial statements of the company and the group for the period 26 September 2024 to 31 December 2025.

Incorporation

The group was incorporated on 26 September 2024 and commenced trading on 29 August 2025.

Dividends

The total distribution of dividends for the period ended 31 December 2025 will be £ 400,000 .

Directors

S Pearce has held office during the whole of the period from 26 September 2024 to the date of this report.

Other changes in directors holding office are as follows:

A Todd - appointed 29 August 2025

N Todd - appointed 29 August 2025

All the directors who are eligible offer themselves for election at the forthcoming first Annual General Meeting.

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, Baverstocks Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

On behalf of the board:

N Todd - Director

22 September 2026

Opinion

We have audited the financial statements of Fortis Windrose Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 31 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, 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 period 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 assessing the risks of material misstatement due to fraud and noncompliance with laws and regulations was as follows:-

We obtained an understanding of the legal and regulatory frameworks that are applicable to the entity and determined that the most significant are those that relate to compliance with the Companies Act 2006, Financial Reporting Standard 102, relevant tax legislation, employment legislation and the legislation affecting companies within the construction industry.

We assessed the risks of material misstatements in respect of fraud and determined that the principal risks were related to posting of journal entries to manipulate the results for the financial year. We made enquiries of management during the audit to determine any instances of fraud, while also discussing the areas of risk in relation to audit as part of our audit team meeting.

Based upon the results of our risk assessment we designed our audit procedures to identify noncompliance with such laws and regulations identified above and also material misstatements in respect of fraud as follows:-

-

We obtained an understanding of the legal and regulatory framework in relation to the entity and how it complies with this framework. This included discussions with management, reviews of legal and professional fees and reviews of compliance with the legislation.

-

We discussed with the management the entity's policies and procedures including systems and controls. Compliance with these was tested via discussion and walkthrough testing of controls.

-

We enquired of management of their policies and procedures in relation to fraud and their knowledge of any actual, suspected, or alleged fraud.

-

We reviewed compliance with Pay as You Earn, Construction Industry Scheme and Value Added Tax laws via reviewing returns and correspondence.

-

We discussed with management to ensure continued compliance with employment and construction industry legislation.

-

We considered the risk of fraud through management override, and, in response, we incorporated testing of manual journal entries into our audit approach. This included the testing of journal entries throughout the year as well as year end journals.

-

We agreed the financial statement disclosures to underlying supporting documentation.

-

We enquired of management if there were any potential litigation or claims.

Whilst considering how our audit work addressed the detection of irregularities, we also consider the likelihood of detection based on our approach. Irregularities from fraud are inherently more difficult to detect than those arising from error.

Because of 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. 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.

S Collins (Senior Statutory Auditor)

for and on behalf of Baverstocks Limited

Statutory Auditor

Chartered Certified Accountants

Dickens House

Guithavon Street

Witham

Essex

CM8 1BJ

22 September 2026

Turnover

3

16,689,476

Cost of sales

13,509,770

Gross profit

3,179,706

Administrative expenses

1,786,476

1,393,230

Other operating income

15,744

Operating profit

5

1,408,974

Associated Company Loan

Write Off

6

425,391

983,583

Interest receivable and similar income

10,351

993,934

Interest payable and similar expenses

7

138,192

Profit before taxation

855,742

Tax on profit

8

344,853

Profit for the financial period

510,889

Profit attributable to:

Owners of the parent

510,889

Profit for the period

510,889

Other comprehensive income

-

Total comprehensive income for the period

510,889

Total comprehensive income attributable to:

Owners of the parent

510,889

Fixed assets

Intangible assets

11

6,396,902

Tangible assets

12

724,542

Investments

13

-

7,121,444

Current assets

Stocks

14

1,780,347

Debtors

15

6,871,632

Cash at bank and in hand

4,741,002

13,392,981

Creditors

Amounts falling due within one year

16

10,406,025

Net current assets

2,986,956

Total assets less current liabilities

10,108,400

Creditors

Amounts falling due after more than one year

17

(1,023,174

)

Provisions for liabilities

21

(100,322

)

Net assets

8,984,904

Capital and reserves

Called up share capital

22

100,079

Share premium

23

334,015

Merger reserve

23

8,158,590

Retained earnings

23

392,220

Shareholders' funds

8,984,904

The financial statements were approved by the Board of Directors and authorised for issue on 22 September 2026 and were signed on its behalf by:

N Todd - Director

Fixed assets

Intangible assets

11

-

Tangible assets

12

-

Investments

13

8,935,648

8,935,648

Current assets

Debtors

15

374,015

Creditors

Amounts falling due within one year

16

7,495,417

Net current liabilities

(7,121,402

)

Total assets less current liabilities

1,814,246

Creditors

Amounts falling due after more than one year

17

995,833

Net assets

818,413

Capital and reserves

Called up share capital

22

100,079

Share premium

23

334,015

Retained earnings

23

384,319

Shareholders' funds

818,413

Company's profit for the financial year

784,319

The financial statements were approved by the Board of Directors and authorised for issue on 22 September 2026 and were signed on its behalf by:

N Todd - Director

Called up

share

Retained

Share

Merger

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Changes in equity

Issue of share capital

100,079

-

334,015

-

434,094

Dividends

-

(400,000

)

-

-

(400,000

)

Total comprehensive income

-

510,889

-

-

510,889

Acquisition

-

-

-

8,439,921

8,439,921

Transfer

-

281,331

-

(281,331

)

-

Balance at 31 December 2025

100,079

392,220

334,015

8,158,590

8,984,904

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Changes in equity

Issue of share capital

100,079

-

334,015

434,094

Dividends

-

(400,000

)

-

(400,000

)

Total comprehensive income

-

784,319

-

784,319

Balance at 31 December 2025

100,079

384,319

334,015

818,413

Cash flows from operating activities

Cash generated from operations

1

9,327,682

Interest paid

(133,874

)

Interest element of hire purchase payments paid

(4,318

)

Tax paid

(557,197

)

Net cash from operating activities

8,632,293

Cash flows from investing activities

Purchase of tangible fixed assets

(78,538

)

Sale of tangible fixed assets

105,523

Acquisition net of cash acquired

(2,191,083

)

Interest received

10,351

Net cash from investing activities

(2,153,747

)

Cash flows from financing activities

Loan repayments in year

(1,642,647

)

Capital repayments in year

(55,226

)

Amount introduced by directors

388,000

Amount withdrawn by directors

(401,686

)

Share issue

374,015

Equity dividends paid

(400,000

)

Net cash from financing activities

(1,737,544

)

Increase in cash and cash equivalents

4,741,002

Cash and cash equivalents at beginning of period

2

-

Cash and cash equivalents at end of period

2

4,741,002

1.	Reconciliation of profit before taxation to cash generated from operations

£

Profit before taxation

855,742

Depreciation charges

287,084

Profit on disposal of fixed assets

(32,916

)

Finance costs

138,192

Finance income

(10,351

)

1,237,751

Decrease in stocks

5,912,364

Decrease in trade and other debtors

7,013,518

Decrease in trade and other creditors

(4,835,951

)

Cash generated from operations

9,327,682

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:

Period ended 31 December 2025

31.12.25

26.9.24

£

£

Cash and cash equivalents

4,741,002

-

3.	Analysis of changes in net funds

At 26.9.24

Cash flow

At 31.12.25

£

£

£

Net cash

Cash at bank and in hand

-

4,741,002

4,741,002

-

4,741,002

4,741,002

Debt

Finance leases

-

(139,721

)

(139,721

)

Debts falling due within 1 year

-

(1,323,660

)

(1,323,660

)

Debts falling due after 1 year

-

(995,833

)

(995,833

)

-

(2,459,214

)

(2,459,214

)

Total

-

2,281,788

2,281,788

1.	Statutory information

Fortis Windrose 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

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.

Basis of consolidation

The group consolidated financial statements include the financial statements of the company and all of its subsidiary undertakings made up to 31 December.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. Where the group owns less than 50% of the voting powers of an entity but controls the entity by virtue of an agreement with other investors which give it control of the financial and operating policies of the entity, it accounts for that entity as a subsidiary.

Where a subsidiary has different accounting policies to the group, adjustments are made to those

subsidiary financial statements to apply the group’s accounting policies when preparing the

consolidated financial statements.

Any subsidiary undertakings sold or acquired during the year are included up to, or from, the dates of change of control or change of significant influence respectively.

Where control of a subsidiary is lost, the gain or loss is recognised in the consolidated income statement.

Critical accounting judgements and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the

circumstances.

There are no estimates and assumptions that have a significant risk of causing material adjustment in the financial statements.

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 to the extent that it is probable that the economic benefits will flow to the

company and the turnover can be reliably measured. Turnover is measured as the fair value of the

consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover from a contract to provide services is recognised in the period in which the services are

provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:-

-

the amount of turnover can be measured reliably;

-

it is probable that the company will receive the consideration due under the contract;the stage of completion of the contract at the end of the reporting period can be measured

-

reliably; and

-

the costs incurred and the costs to complete the contract can be measured reliably.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2025, is being amortised evenly over its estimated useful life of ten years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Motor Vehicles

-

25% on reducing balance

Office Equipment

-

33% on cost

Stocks

Work in progress is valued at the lower of cost and net realisable value.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Taxation

Taxation for the period comprises current and deferred tax. Tax is recognised in the Consolidated 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 period 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.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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 group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

Impairment

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at

each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

Business combinations and goodwill

Business combinations are accounted for by applying the purchase method.

The cost of a business combination is the fair value of the consideration given, liabilities incurred or assumed and of equity instruments issued plus the costs directly attributable to the business combination. Where control is achieved in stages the cost is the consideration at the date of each transaction.

Contingent consideration is initially recognised at an estimated amount where the consideration is probable and can be measured reliably. Where (i) the contingent consideration is not considered probable or cannot be reliably measured but subsequently becomes probable and measurable or (ii) contingent consideration previously measured is adjusted, the amounts are recognised as an adjustment to the cost of the business combination.

On acquisition of a business, fair values are attributed to the identifiable assets, liabilities and contingent liabilities unless the fair value cannot be measured reliably, in which case the value is incorporated in goodwill. Intangible assets are only recognised separately from goodwill where they are separable and arise from contractual or other legal rights. Where the fair value of contingent liabilities cannot be reliably measured they are disclosed on the same basis as other contingent liabilities.

Goodwill recognised represents the excess of the fair value and directly attributable costs of the purchase consideration over the fair values to the group’s interest in the identifiable net assets, liabilities and contingent liabilities acquired.

On acquisition, goodwill is allocated to cash-generating units (‘CGU’s’) that are expected to benefit from the combination.

Goodwill is amortised over its expected useful life which is estimated to be ten years. Goodwill is assessed for impairment when there are indicators of impairment and any impairment is charged to the income statement. No reversals of impairment are recognised.

3.

Turnover

The turnover and profit before taxation are attributable to the one principal activity of the group.

An analysis of turnover by class of business is given below:

£

Rendering of services

16,689,476

16,689,476

4.	Employees and directors

£

Wages and salaries

881,250

Social security costs

417,036

Other pension costs

123,400

1,421,686