REGISTERED NUMBER: 07606553 (England and Wales)

EPD Insulation Group Limited

Strategic Report, Directors' Report and

Audited Financial Statements

for the Year Ended 31 March 2026

Page

Company information

1

Strategic report

2

to

3

Directors' report

4

to

5

Report of the independent auditors

6

to

9

Statement of comprehensive income

10

Statement of financial position

11

Statement of changes in equity

12

Statement of cash flows

13

Notes to the statement of cash flows

14

to

15

Notes to the financial statements

16

to

28

Directors:

S J Boon

T Brown

Mrs J Brown

C Pratt

Registered office:

Finmere Park

Orton Southgate

Peterborough

PE2 6YG

Registered number:

07606553 (England and Wales)

Independent auditors:

Sumer Auditco Limited

Bank House

Broad Street

Spalding

Lincolnshire

PE11 1TB

The directors present their strategic report for the year ended 31 March 2026.

We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face.

Review of business

The company continues to supply insulation, screeding, dry lining and plastering products to the trade and the public. We currently operate from two locations Peterborough and Frome but have customers all over the UK.

The UK construction market continues to show a steady decline and has done so over the past 2 to 3 years. The company have done well to mitigate the wider market position and maintained a consistent level of revenue.

The company have successfully launched Alpha Drywall systems; this system has started to generate encouraging levels of revenue and will establish a consistent and profitable pipeline as Alpha continues to grow its market share.

The company is still poised for substantial growth with very little additional investment.

Current financial reporting for 26/27 is showing a strong start to the new financial year

- Year to date to 31 July 2026 - Turnover of £28m vs. £26m for the comparative period.

- Gross profit margin is currently sitting at 8.1% vs. 7.0% for the comparative period.

- Year to date to 31 July 2026 - Earnings before interest, tax, depreciation and amortisation is £1.07m and Profit before tax is £522k.

The business will continue to utilise its operational efficiency and strong buying power to continue to navigate the current market uncertainty.

Principal risks and uncertainties

As for many businesses our size, the economic climate in which we operate will have some effect on the company's operations for the forthcoming period. The management team continue to evaluate ways of improving margins through greater efficiency and cost control.

Development and performance

The company albeit maintained their level of growth in this accounting period as shown in the consistency of turnover compared to the previous period.

The company continues to invest into the upkeep and making the business premises fit for purpose to ensure the high level of staff welfare standards are continually maintained.

The company is continually looking to maintain its excellent service to existing customers and increase its customer base.

Financial key performance indicators

We consider that our key performance indicators are those that communicate the financial performance and strength of the company, these being turnover and gross margin.

Turnover decreased from £72.7m in the prior year to £72.5m. The gross profit margin was 5.1% (2025 - 5.8%).

The directors believe the financial statements show a true and fair view of the company's position at the year end and adequately represent the business moving forward and look forward to reporting further success in the future.

On behalf of the board:

T Brown - Director

30 September 2026

The directors present their report with the financial statements of the company for the year ended 31 March 2026.

Dividends

Particulars of recommended dividends are detailed in note 10 to the financial statements.

Future developments

The company are continuing to expand their operations, which will provide its customers with a wider range of products being readily available at competitive prices.

Directors

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

S J Boon

T Brown

Mrs J Brown

C Pratt

Engagement with suppliers, customers and others

We work closely with our customers to ensure our SLA's are constantly adhered to and delivered to the highest standards. We also aim to act responsibly and with the upmost integrity when we engage with all of our suppliers.

Streamlined energy and carbon reporting

This report has been prepared in line with the requirements of The Companies (Directors' Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018.

We have included our Scope 1 and Scope 2 emissions for our own operations for the period 1st April 2025 to 31st of March 2026.

Carbon footprint

2025 - 2026

Value

Carbon (t)

Scope 1 emissions - Emissions from operations that are owned or controlled by the reporting company

Company vehicles

1,308,253 litres

2,899

Gas

71,501kWh

13

Total scope 1

2,912

Scope 2 emissions - Emissions from the generation of purchased or acquired electricity, steam, heating

or cooling

Renewable electricity

248,531 kWh

0

Total scope 2

0

Intensity factor

TonnesCO2e/£Turnover

0.00004

Our calculation is based on data that we could obtain from suppliers of our utilities for our premises, as well as records of fuel consumption for our company vehicles. We have used the relevant DEFRA carbon conversion factor based on the year of reporting.

Climate change is the single most important issue facing the world today and we will do all in our power to help cut carbon emissions.

The EPD Insulation Group is passionate about environmental issues and actively driven to learn more, change our business to include sustainable ideas, and change perceptions within the industry and the wider surroundings.

The majority of the products we deliver to the construction materials trade are helping to retain heat in buildings making them more energy efficient therefore giving substantial health and well-being benefits to the population whilst also reducing national greenhouse gas emissions and its carbon footprint in the most cost-effective way.

Together with our supplier brands we will strive to deliver products that will help reduce the negative impact on the planet and the next generations using the buildings the industry produces.

Disclosure of information in the strategic report

The directors in accordance with section 414C (11) of the Company Act 2006 Regulations 2013, have prepared the company's strategic report as required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations as per page 1.

Statement of directors' responsibilities

The directors are responsible for preparing the Strategic report, the Directors' report 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement as to disclosure of information to auditors

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

On behalf of the board:

S J Boon - Director

30 September 2026

Opinion

We have audited the financial statements of EPD Insulation Group Limited (the 'company') for the year ended 31 March 2026 which comprise the Statement of comprehensive income, Statement of financial position, Statement of changes in equity, Statement of cash flows and Notes to the statement of cash flows, Notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 March 2026 and of its loss for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic report and the Directors' report, but does not include the financial statements and our Report of the auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

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

Responsibilities of directors

As explained more fully in the Statement of directors' responsibilities set out on page five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the 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 as follows:

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the sector;

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including such as the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation;

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

- investigated the rationale behind significant or unusual transactions;

In response to the risk of irregularities and non-compliance with laws and regulations, we 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;

- reviewing correspondence with HMRC, relevant regulators and the company's legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

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

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of 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.

Matt Storey FCCA, ACA, BFP (Senior Statutory Auditor)

for and on behalf of Sumer Auditco Limited

Bank House

Broad Street

Spalding

Lincolnshire

PE11 1TB

30 September 2026

Turnover

4

72,512,615

72,713,756

Cost of sales

68,819,428

68,462,770

Gross profit

3,693,187

4,250,986

Administrative expenses

3,756,859

3,679,334

(63,672

)

571,652

Other operating income

27,083

23,750

Operating (loss)/profit

6

(36,589

)

595,402

Interest receivable and similar income

7

5,383

32,475

(31,206

)

627,877

Gain/loss on revaluation of investment property

50,000

115,000

18,794

742,877

Interest payable and similar expenses

8

292,405

332,544

(Loss)/profit before taxation

(273,611

)

410,333

Tax on (loss)/profit

9

(51,736

)

122,398

(Loss)/profit for the financial year

(221,875

)

287,935

Other comprehensive income

Tangible asset revaluations

-

29,542

Income tax relating to other comprehensive income

-

-

Other comprehensive income for the year, net of income tax

-

29,542

Total comprehensive income for the year

(221,875

)

317,477

Fixed assets

Intangible assets

11

276,356

126,627

Tangible assets

12

6,205,305

7,014,213

Investment property

13

1,850,000

1,800,000

8,331,661

8,940,840

Current assets

Stocks

14

4,660,297

4,895,165

Debtors

15

16,239,113

15,637,447

Cash at bank and in hand

1,757,389

1,582,421

22,656,799

22,115,033

Creditors

Amounts falling due within one year

16

24,757,248

23,579,361

Net current liabilities

(2,100,449

)

(1,464,328

)

Total assets less current liabilities

6,231,212

7,476,512

Creditors

Amounts falling due after more than one year

17

(974,218

)

(1,492,751

)

Provisions for liabilities

21

(1,214,846

)

(1,363,753

)

Net assets

4,042,148

4,620,008

Capital and reserves

Called up share capital

22

200

200

Non distributable reserve

23

1,094,280

1,069,093

Retained earnings

23

2,947,668

3,550,715

Shareholders' funds

4,042,148

4,620,008

The financial statements were approved by the Board of Directors and authorised for issue on 30 September 2026 and were signed on its behalf by:

S J Boon - Director

T Brown - Director

Called up

Non

share

Retained

distributable

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 April 2024

200

3,776,249

795,690

4,572,139

Changes in equity

Dividends

-

(269,608

)

-

(269,608

)

Total comprehensive income

-

287,935

-

287,935

Transfer of reserve balance

-

(243,861

)

243,861

-

Revaluation of tangible assets

-

-

29,542

29,542

Balance at 31 March 2025

200

3,550,715

1,069,093

4,620,008

Changes in equity

Dividends

-

(355,985

)

-

(355,985

)

Total comprehensive income

-

(221,875

)

-

(221,875

)

Transfer of reserve balance

-

(25,187

)

25,187

-

Balance at 31 March 2026

200

2,947,668

1,094,280

4,042,148

Cash flows from operating activities

Cash generated from operations

1

2,314,534

117,691

Interest paid

(169,607

)

(200,349

)

Interest element of hire purchase payments paid

(122,798

)

(132,195

)

Tax paid

-

84,832

Net cash from operating activities

2,022,129

(130,021

)

Cash flows from investing activities

Purchase of intangible fixed assets

(149,729

)

(108,632

)

Purchase of tangible fixed assets

(177,409

)

(826,411

)

Sale of tangible fixed assets

42,704

-

Interest received

5,383

32,475

Net cash from investing activities

(279,051

)

(902,568

)

Cash flows from financing activities

New loans in year

-

172,170

Loan repayments in year

(34,708

)

(46,667

)

Capital repayments in year

(851,022

)

(1,049,464

)

Amount introduced by directors

-

1,344,959

Amount withdrawn by directors

(141,589

)

-

Equity dividends paid

(355,985

)

(269,608

)

Net cash from financing activities

(1,383,304

)

151,390

Increase/(decrease) in cash and cash equivalents

359,774

(881,199

)

Cash and cash equivalents at beginning of year

2

(79,083

)

802,116

Cash and cash equivalents at end of year

2

280,691

(79,083

)

1.	Reconciliation of (loss)/profit before taxation to cash generated from operations

2026

2025

£

£

(Loss)/profit before taxation

(273,611

)

410,333

Depreciation charges

937,113

492,905

Loss on disposal of fixed assets

6,499

3,721

Gain on revaluation of fixed assets

(50,000

)

(115,000

)

Finance costs

292,405

332,544

Finance income

(5,383

)

(32,475

)

907,023

1,092,028

Decrease/(increase) in stocks

234,868

(792,970

)

Increase in trade and other debtors

(460,077

)

(1,712,177

)

Increase in trade and other creditors

1,632,720

1,530,810

Cash generated from operations

2,314,534

117,691

2.	Cash and cash equivalents

The amounts disclosed on the Statement of cash flows in respect of cash and cash equivalents are in respect of these Statement of financial position amounts:

Year ended 31 March 2026

31.3.26

1.4.25

£

£

Cash and cash equivalents

1,757,389

1,582,421

Bank overdrafts

(1,476,698

)

(1,661,504

)

280,691

(79,083

)

Year ended 31 March 2025

31.3.25

1.4.24

£

£

Cash and cash equivalents

1,582,421

2,427,335

Bank overdrafts

(1,661,504

)

(1,625,219

)

(79,083

)

802,116

3.	Analysis of changes in net debt

At 1.4.25

Cash flow

At 31.3.26

£

£

£

Net cash

Cash at bank and in hand

1,582,421

174,968

1,757,389

Bank overdrafts

(1,661,504

)

184,806

(1,476,698

)

(79,083

)

359,774

280,691

Debt

Finance leases

(1,912,106

)

851,022

(1,061,084

)

Debts falling due within 1 year

(9,221,475

)

(543,169

)

(9,764,644

)

Debts falling due after 1 year

(431,667

)

34,708

(396,959

)

(11,565,248

)

342,561

(11,222,687

)

Total

(11,644,331

)

702,335

(10,941,996

)

1.	General information

EPD Insulation 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 Company Information page.

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

2.	Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3.	Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

Estimation of useful life

The useful economic life used to amortise intangible assets and depreciate tangible fixed assets relates to the expected future performance of the assets acquired and management's estimate of the period over which economic benefit will be derived from the asset.

Estimation of residual value

The residual value of an asset is the estimated fair value of that asset at the end of its useful economic life and therefore is also dependent upon the estimation of that life span.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Invoice financing

Certain trade debtors are subject to a invoice financing agreement whereby an advance of funds is received and secured upon them.

Where the company has retained significant benefits and risks relating to these debts, separate presentation is adopted whereby the gross trade debts and a corresponding liability in respect of the advance received are shown in the balance sheet. The interest element of the factors charges are charged to the profit and loss over the term to which they relate.

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.

Development costs

Development costs are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Amortisation with not begin to accumulate until the project is brought into use and is generating economic benefits. Any intangible assets carried at valued amounts, are recorded at the fair value at the date of revaluation as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated

depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

The company previously measured motor vehicles using the revaluation model. During the year, the company changed its accounting policy to the cost model for this classification of tangible fixed assets on the grounds that this provides more reliable and relevant information and is consistent with industry practice.

In accordance with FRS102, the revalued amount of motor vehicles at the date of change has been treated as their deemed cost. No further revaluations will be undertaken.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Plant and machinery

- 25% reducing balance/10 years straight line

Fixtures and fittings

- 10% reducing balance

Motor vehicles

- 25% reducing balance/10 years straight line

Computer equipment

- 20% straight line

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.