REGISTERED NUMBER: 10457037 (England and Wales)

Group Strategic Report, Report of the Director and

Consolidated Financial Statements

for the Year Ended 31 December 2025

for

Survival Of The Fittest Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Director

4

Report of the Independent Auditors

5

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

Consolidated Cash Flow Statement

15

Notes to the Consolidated Cash Flow Statement

16

Notes to the Consolidated Financial Statements

17

DIRECTOR:

Mr P C Lidgerton

REGISTERED OFFICE:

Unit 1 The Pavilions

Ruscombe Business Park

Reading

Berkshire

RG10 9NN

REGISTERED NUMBER:

10457037 (England and Wales)

SENIOR STATUTORY AUDITOR:

Susan Ambrose FCCA FCA

AUDITORS:

Butt Miller

Chartered Accountants and Statutory Auditor

1 Minster Court

Tuscam Way

Camberley

Surrey

GU15 3YY

ACCOUNTANTS:

James Norman Business Advisory

7 High Street

Windsor

Berkshire

SL4 1LD

The director presents his strategic report of the company and the group for the year ended 31 December 2025.

REVIEW OF BUSINESS

The director is satisfied with the financial results in terms of turnover and profitability along with the healthy balance sheet at the year end. Trading cash generation has continued to be strong.

The group's core focus is to supply construction materials into the B2B market. Professional trade account managers develop close relationships with customers to provide unrivalled support and availability through cash and credit account options.

Financial overview

Year

31/12/2025

9 months to 31/12/2024

31/03/2024

31/03/2023

Turnover

£33.6 million

£23.2 million

£31.2 million

£35.5 million

Operating profit before taxation

£0.6 million

(£0.3) million

£(0.1 million

)

£1.7 million

Cash at bank

£4.850 million

£2.926 million

£2.921 million

£5.902 million

Net current assets

£4.007 million

£3.543 million

£5.214 million

£5.421 million

Trading year

In 2024, after internal review we made the decision to change our financial year to match the calendar year, aligning us seasonally and strategically with the wider construction industry. Continued investment went into the sales team & digital infrastructure whilst digital advertising spend costs were scaled back considerably in line with the improved strategic direction of the group and the promotion of four personnel to senior management early in 2025. These same personal were appointed as statutory directors of the main trading subsidiary in early 2026. Reacting quickly and resiliently to market challenges has been at the forefront of our offering. This has continued throughout 2025 and 2026, and has enabled us to weather the well-documented difficult trading conditions that have been seen particularly in the construction industry. The strong balance sheet and healthy cash reserves have allowed us to invest in additional staff and launch a market leading ERP system and website, preparing us for a recovery in market conditions.

Future developments

At present we are focused on developing our core skills, supporting our trade customers with best-in-class procurement services and growing the team to meet these demands. Moving away from the B2C market & streamlining our product range allows us to deliver what matters most to our customers. As the wider macroeconomic outlook improves, we will be well positioned to take advantage of opportunities this presents, having a strong balance sheet and cash resources to invest in our people and the business to be able to serve more of our core customer base. Early 2027 will see us move to a larger, world-class office facility to further support our growth targets.

Results

The results for the year are set out on page 9.

PRINCIPAL RISKS AND UNCERTAINTIES

Financial risk management objective

The group uses various financial instruments including loans between group members, cash and other items, such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to maintain finance for the group's operations.

The existence of these financial instruments exposes the group to a number of financial risks, which are described in more detail below.

The main risks are cash flow, credit risk and liquidity risk. The directors review and agree policies for managing each of these risks and they are summarised as follows. These policies have remained unchanged from previous years.

Liquidity risk

The group seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably.

Credit risk

The group's principal financial assets are cash and trade debtors. The credit risk associated with the cash is limited as the counterparties are commercial banks. The group maintained a high percentage of cash sale transactions which along with strict credit control procedures coupled with a credit insurance policy has ensured that the group is well capitalised.

Cash flow risk

The director continually monitors the cash balance and cash flow forecasts to mitigate cash flow risk and to ensure that a suitable level of liquid funds are available at all times.

ON BEHALF OF THE BOARD:

Mr P C Lidgerton - Director

23 September 2026

The director presents his report with the financial statements of the company and the group for the year ended 31 December 2025.

DIVIDENDS

Interim dividends of £168,000 were declared during the period from 1 January 2025 to 31 December 2025.

The director recommends that no final dividends be paid.

DIRECTOR

Mr P C Lidgerton held office during the whole of the period from 1 January 2025 to the date of this report.

INFORMATION IN THE STRATEGIC REPORT

Information relating to future developments and principal risks and uncertainties is shown in the Strategic Report, under s414C(11) of the Companies Act 2006.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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 director is 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 he 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.

ON BEHALF OF THE BOARD:

Mr P C Lidgerton - Director

23 September 2026

Opinion

We have audited the financial statements of Survival Of The Fittest Limited (the 'parent company') and its subsidiaries (the 'group') for the year 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 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 director's 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, 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 Director 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 Director 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 Director.

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 director's remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page four, the director is 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 director determines 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 director is 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 director either intends to liquidate the group or the parent company or to cease operations, or has 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:

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

- The nature of the industry and sector the company is in. Its control environment and business performance including the design of the companies policies, key drivers for the director's remuneration and staff bonus levels;

- Results of our enquiries of management about their own identification and assessment of the risks of irregularities;

- Any matters we identified having obtained and reviewed the company's documentation of their policies and procedures relating to:

- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of

noncompliance;

- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; and

- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;

- The matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

Our procedures to respond to risks identified included the following:

- Enquiries of management and staff including concerning actual and potential litigation and claims and any instances of non-compliance with laws.

- Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

- Obtaining an understanding of provisions and holding discussions with management to understand the basis of recognition or non-recognition of provisions; and

- In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; checking internal controls are being followed are per company policy and assessing suitability; assessing the judgements made in making accounting estimates; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through 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 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.

Susan Ambrose FCCA FCA (Senior Statutory Auditor)

for and on behalf of Butt Miller

Chartered Accountants and Statutory Auditor

1 Minster Court

Tuscam Way

Camberley

Surrey

GU15 3YY

23 September 2026

TURNOVER

33,638,229

23,178,000

Cost of sales

(26,773,782

)

(18,825,516

)

GROSS PROFIT

6,864,447

4,352,484

Administrative expenses

(6,341,820

)

(4,825,541

)

OPERATING PROFIT/(LOSS)

4

522,627

(473,057

)

Interest receivable and similar income

111,466

138,005

634,093

(335,052

)

Interest payable and similar expenses

5

(42

)

-

PROFIT/(LOSS) BEFORE TAXATION

634,051

(335,052

)

Tax on profit/(loss)

6

(123,087

)

7,502

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

510,964

(327,550

)

Profit/(loss) attributable to:

Owners of the parent

510,964

(327,550

)

PROFIT/(LOSS) FOR THE YEAR

510,964

(327,550

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

510,964

(327,550

)

Total comprehensive income attributable to:

Owners of the parent

510,964

(327,550

)

FIXED ASSETS

Intangible assets

9

381,544

490,558

Tangible assets

10

108,834

116,017

Investments

11

-

-

490,378

606,575

CURRENT ASSETS

Debtors

12

3,345,810

4,505,041

Investments

13

24,500

100,000

Cash at bank

4,850,373

2,926,258

8,220,683

7,531,299

CREDITORS

Amounts falling due within one year

14

(4,213,397

)

(3,987,719

)

NET CURRENT ASSETS

4,007,286

3,543,580

TOTAL ASSETS LESS CURRENT LIABILITIES

4,497,664

4,150,155

PROVISIONS FOR LIABILITIES

17

(4,545

)

-

NET ASSETS

4,493,119

4,150,155

CAPITAL AND RESERVES

Called up share capital

18

1,204

1,204

Retained earnings

19

4,491,915

4,148,944

4,493,119

4,150,148

NON-CONTROLLING INTERESTS

20

-

7

TOTAL EQUITY

4,493,119

4,150,155

The financial statements were approved by the director and authorised for issue on 23 September 2026 and were signed by:

Mr P C Lidgerton - Director

FIXED ASSETS

Intangible assets

9

-

-

Tangible assets

10

-

-

Investments

11

1,501,010

1,501,010

1,501,010

1,501,010

CURRENT ASSETS

Debtors

12

194,102

177,916

Cash at bank

16,260

-

210,362

177,916

CREDITORS

Amounts falling due within one year

14

(368,549

)

(359,568

)

NET CURRENT LIABILITIES

(158,187

)

(181,652

)

TOTAL ASSETS LESS CURRENT LIABILITIES

1,342,823

1,319,358

CAPITAL AND RESERVES

Called up share capital

18

1,204

1,204

Retained earnings

19

1,341,619

1,318,154

1,342,823

1,319,358

Company's profit for the financial year

191,465

7,286

The financial statements were approved by the director and authorised for issue on 23 September 2026 and were signed by:

Mr P C Lidgerton - Director

Called up

share

Retained

Non-controlling

Total

capital

earnings

Total

interests

equity

£

£

£

£

£

Balance at 1 April 2024

1,204

5,776,490

5,777,694

7

5,777,701

Changes in equity

Total comprehensive income

-

(327,550

)

(327,550

)

-

(327,550

)

Dividends

-

(1,299,996

)

(1,299,996

)

-

(1,299,996

)

Balance at 31 December 2024

1,204

4,148,944

4,150,148

7

4,150,155

Changes in equity

Non-controlling interests

adjustment

-

7

7

(7

)

-

Total comprehensive income

-

510,964

510,964

-

510,964

Dividends

-

(168,000

)

(168,000

)

-

(168,000

)

Balance at 31 December 2025

1,204

4,491,915

4,493,119

-

4,493,119

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2024

1,204

2,610,864

2,612,068

Changes in equity

Dividends

-

(1,299,996

)

(1,299,996

)

Total comprehensive income

-

7,286

7,286

Balance at 31 December 2024

1,204

1,318,154

1,319,358

Changes in equity

Dividends

-

(168,000

)

(168,000

)

Total comprehensive income

-

191,465

191,465

Balance at 31 December 2025

1,204

1,341,619

1,342,823

Cash flows from operating activities

Cash generated from operations

1

2,035,057

191,406

Interest paid

(42

)

-

Tax paid

49,884

(3,610

)

Net cash from operating activities

2,084,899

187,796

Cash flows from investing activities

Purchase of intangible fixed assets

(90,330

)

(242,491

)

Purchase of tangible fixed assets

(57,234

)

-

Sale of tangible fixed assets

-

39,259

Sale of fixed asset investments

75,500

-

Interest received

111,466

138,005

Net cash from investing activities

39,402

(65,227

)

Cash flows from financing activities

Amount introduced by directors

168,000

1,239,996

Amount withdrawn by directors

(200,186

)

(57,501

)

Equity dividends paid

(168,000

)

(1,299,996

)

Net cash from financing activities

(200,186

)

(117,501

)

Increase in cash and cash equivalents

1,924,115

5,068

Cash and cash equivalents at beginning of year

2

2,926,258

2,921,190

Cash and cash equivalents at end of year

2

4,850,373

2,926,258

1.	RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

Period

1.4.24

Year Ended

to

31.12.25

31.12.24

£

£

Profit/(loss) before taxation

634,051

(335,052

)

Depreciation charges

263,761

161,954

Loss on disposal of fixed assets

-

6,266

Finance costs

42

-

Finance income

(111,466

)

(138,005

)

786,388

(304,837

)

Decrease in trade and other debtors

1,139,687

947,813

Increase/(decrease) in trade and other creditors

108,982

(451,570

)

Cash generated from operations

2,035,057

191,406

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2025

31.12.25

1.1.25

£

£

Cash and cash equivalents

4,850,373

2,926,258

Period ended 31 December 2024

31.12.24

1.4.24

£

£

Cash and cash equivalents

2,926,258

2,921,190

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.25

Cash flow

At 31.12.25

£

£

£

Net cash

Cash at bank

2,926,258

1,924,115

4,850,373

2,926,258

1,924,115

4,850,373

Liquid resources

Current asset investments

100,000

(75,500

)

24,500

100,000

(75,500

)

24,500

Total

3,026,258

1,848,615

4,874,873

1.	STATUTORY INFORMATION

Survival Of The Fittest 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.

The presentation currency of the financial statements is the Pound Sterling (£).

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.

The previous period was shortened to bring it in line with the calender year. As a result the comparatives, including the notes, are not entirely comparable.

Basis of consolidation

The consolidated accounts incorporate the accounts of all subsidiary undertakings (except for BuildHQ Ltd) made up to the balance sheet date prepared in accordance with the group's accounting policies. The acquisition method of accounting is used to consolidate the results of subsidiaries within the group. Any goodwill arising on consolidation is written off in equal instalments over its useful economic life.

BuildHQ Ltd has been excluded on the basis that it did not trade and was dissolved on 7 January 2025.

Turnover

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

Revenue is recognised when the purchases have been sourced.

Other income

Dividends from associated companies are recognised when the shareholder's right to receive payment is established.

Interest income is calculated monthly and recognised in full at the end of each month.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2022, is being amortised evenly over its estimated useful life of 5 years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less estimated residual value, after taking account of any impairment losses.

All assets are amortised over their useful lives as follows:

Licences

- 20 years

Expenditure on software and website development is charged to the Consolidated Income Statement in the year in which it is incurred with the exception of expenditure incurred in respect of the development of major new systems. In this case, costs are capitalised on the basis that they can be demonstrated to generate future economic benefits that are attributable to the asset. Such expenditure is capitalised and amortised straight line, from the start of use, over the estimated useful life of the asset.

Useful lives range from three to ten years.

Amortisation is included in administrative expenses in the Consolidated Income Statement.

Tangible fixed assets

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

Short leasehold

-

10% on cost

Fixtures and fittings

-

33.33% on cost and 25% on cost

Motor vehicles

-

25% on reducing balance

Computer equipment

-

33.33% on cost and 25% on cost

Taxation

Taxation for the year 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 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 transaction. Exchange differences are taken into account in arriving at the operating result.

Pension costs

One of the subsidiaries operates a defined contribution pension scheme, and occasionally companies contribute to privately administered schemes. Contributions are charged to the Consolidated Income Statement in the period to which they relate.

Operating leases

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

Judgements in applying accounting policies

In preparing these financial statements, the directors have made the following judgements:

To determine whether leases entered into by the company are operating or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis.

To determine whether there are indicators of impairment of the company's tangible and intangible assets. Factors taken into consideration in reaching a decision include the state of repair and the expected future performance of the asset.

To determine whether provisions such as deferred tax or bad debt provision are required. The directors looked at the likelihood of these provisions crystallising by assessing all the information available at the time in determining their decision.