REGISTERED NUMBER: 16039992 (England and Wales)

ROBUR HOLDINGS LIMITED

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIOD 24 OCTOBER 2024 TO 31 DECEMBER 2025

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Income Statement

10

Consolidated Other Comprehensive Income

11

Consolidated Balance Sheet

12

Company Balance Sheet

13

Consolidated Statement of Changes in Equity

14

Company Statement of Changes in Equity

15

Consolidated Cash Flow Statement

16

Notes to the Consolidated Cash Flow Statement

17

Notes to the Consolidated Financial Statements

18

DIRECTORS:

S Furse

J Furse

E Furse

D Furse

A J Furse

R J Prisgrove

P J Prisgrove

N Prisgrove

L Prisgrove

D Prisgrove

A Prisgrove

S Prisgrove

B Prisgrove

REGISTERED OFFICE:

Manfield Way

St Austell

Cornwall

PL25 3HQ

REGISTERED NUMBER:

16039992 (England and Wales)

AUDITORS:

WP Audit Services LLP

Chartered Accountant & Statutory Auditor

Chancery House

30 St Johns Road

Woking

Surrey

GU21 7SA

The directors present their strategic report of the company and the group for the period 24 October 2024 to 31 December 2025.

OVERVIEW

During the period, the group was formed by way of a restructure. The Income Statement shown in these consolidated accounts only includes the trade for the 3 months since the restructure occurred. The review of business given below covers the full 12 months of trade for the trading subsidiary.

The group has a trading subsidiary that is a UK supplier of fixings, fasteners, supports, and pre-fabricated services, primarily serving mechanical & electrical contractors and construction contractors.

The subsidiary company generated turnover of £10.85m in the last year (2024: £10.47m), representing a modest increase of 4% compared with the prior year. With the incline in top-line revenue, careful margin management and operational discipline enabled the business to deliver a slight increase in gross profit, rising from £3.810m to £3.869m.

In the year there has been a deliberate investment across many areas of the business. These costs have contributed to the decline in profit before taxation from £632.3k to £342.9k. The trading environment is challenging but the group is well placed to remain profitable in difficult economic times.

Following the investments made in the subsidiary in the year the EBITDA totalled £810.6k in 2025 compared to £957.0k in 2024.

This performance demonstrates resilience in the business model and management's ability to continue to develop sales growth in a more challenging trading environment.

REVIEW OF BUSINESS

Below is a review of business for the subsidiary.

Market Conditions

The trading year was marked by continuing difficult economic trading conditions in the UK, with higher inflation and interest rates than have been seen in recent history. This has dampened some demand for capital expenditure within the customer base. Despite the resulting pressure on sales volumes, the company responded proactively through disciplined cost and margin management, delivering growth in both turnover and gross profit.

Operational Achievements

The following achievements have been identified by the directors:

Maintained gross margins despite revenue pressures.

Implemented tighter cost control measures, leading to reduced overhead expenditure.

Focused on efficiency projects to drive sustainable profit performance.

PRINCIPAL RISKS AND UNCERTAINTIES

The Group, like all businesses faces a number of operating risks and uncertainties. The most fundamental to the Group are:

- Volatility in customer demand across core markets;

- Credit risk of customers;

- Inflationary pressures impacting input costs; and

- Retention and recruitment of skilled staff.

Mitigation strategies are in place, including closer customer engagement, flexible supplier arrangements, and ongoing staff recruitment and development programmes.

FUTURE DEVELOPMENTS

Looking forward, the group's strategy is focused on:

- Driving revenue growth through targeted market expansion.

- Continued emphasis on efficiency and cost discipline.

- Investment into people, processes, R&D, and product development to strengthen quality standards and keep pace with evolving regulatory requirements.

- Exploring investment in technology and systems to enhance reporting, scalability, and customer experience.

- Strengthening resilience against macroeconomic pressures through prudent financial management.

KEY PERFORMANCE INDICATORS (KPIs)

Management monitors a range of KPIs to assess business performance. The key measures relevant to the subsidiary are explained below. These cover the full 12 months.

- Revenue growth of 4% on prior year.

- Gross profit margin at 35.6% vs 36.4% in prior year.

- Cash generation of £111k.

ON BEHALF OF THE BOARD:

D Furse - Director

23 October 2026

The directors present their report with the financial statements of the company and the group for the period 24 October 2024 to 31 December 2025.

COMMENCEMENT OF TRADING

The company was incorporated on 24 October 2024, however trading commenced following the group formation and restructure on 25 September 2025.

PRINCIPAL ACTIVITY

The principal activity of the group in the period under review was that of a specialist supplier of fixings, fasteners, supports and advice to the building services and construction industries including design, cutting and pre-fabrication services.

DIVIDENDS

Interim dividends per share were paid as follows:

Founder Shares £1.00 shares

127.5

- 31 December 2025

P Ordinary £1.00 shares

NIL

Growth Shares £1.00 shares

12

- 31 December 2025

The directors recommend that no final dividends be paid.

The total distribution of dividends for the period ended 31 December 2025 will be £ 247,500 .

DIRECTORS

The directors who have held office during the period from 24 October 2024 to the date of this report are as follows:

S Furse - appointed 8 October 2025

J Furse - appointed 8 October 2025

E Furse - appointed 24 October 2024

D Furse - appointed 8 October 2025

A J Furse - appointed 24 October 2024

R J Prisgrove - appointed 24 October 2024

P J Prisgrove - appointed 24 October 2024

N Prisgrove - appointed 24 October 2024

L Prisgrove - appointed 8 October 2025

D Prisgrove - appointed 8 October 2025

A Prisgrove - appointed 8 October 2025

S Prisgrove - appointed 8 October 2025

B Prisgrove - appointed 8 October 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 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 group's auditors are aware of that information.

ON BEHALF OF THE BOARD:

D Furse - Director

23 October 2026

Opinion

We have audited the financial statements of Robur 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 four, 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.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Objectives

The objectives of our audit in respect of fraud, are;

- to identify and assess the risks of material misstatement of the financial statements due to fraud;

- to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and

- to respond appropriately to instances of fraud or suspected fraud identified during the audit.

However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the group.

Audit Approach

Our approach was as follows:

- We obtained an understanding of the legal and regulatory requirements applicable to the group and considered that the most significant are the Consumer Rights Act, the Consumer Protection (Distance Selling) Regulations, the Companies Act 2006, FRS 102, and UK taxation legislation.

- We obtained an understanding of how the group complies with these requirements by discussions with management and those charged with governance, as well a review of relevant correspondence and certifications.

- We assessed the risk of material misstatement of the financial statements and how it might occur (including the risk of material misstatement due to fraud), by holding discussions with management and those charged with governance.

- We used our knowledge of the group and the industry in which it operates to determine if management's explanations were consistent with our own conclusions.

- Based on our understanding developed from the above, we designed specific appropriate audit procedures to identify instances of non-compliance with the key laws and regulations which may result in potential fraud. This included making enquiries of management and those charged with governance, investigating unusual or unexpected relationships or movements in figures disclosed in the accounts and remaining alert for any transactions that appeared to be outside the normal course of business.

- Furthermore, as required by auditing standards, and taking into account our overall knowledge of the control environment, we have performed procedures to address the risks of management override of controls and the risk of fraudulent revenue recognition. Procedures such as a review of journal entries, sales cut off testing and assessing estimates for management bias have enabled us to conclude in this area.

No instances of fraud were identified from the above procedures.

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

- Obtain an understanding of internal control environment relevant to the audit, in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the group's internal control.

- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

- Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the group to cease to continue as a going concern.

- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Context of the ability of the audit to detect fraud or breaches of law or regulation

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it.

In addition, as with any audit, there remains a risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect noncompliance with all laws and regulations.

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.

Mrs Stephanie Williams (Senior Statutory Auditor)

for and on behalf of WP Audit Services LLP

Chartered Accountant & Statutory Auditor

Chancery House

30 St Johns Road

Woking

Surrey

GU21 7SA

23 October 2026

TURNOVER

2,194,534

Cost of sales

(1,222,271

)

GROSS PROFIT

972,263

Administrative expenses

(887,947

)

OPERATING PROFIT

5

84,316

Interest receivable and similar income

499

84,815

Interest payable and similar expenses

6

(16,879

)

PROFIT BEFORE TAXATION

67,936

Tax on profit

7

23,310

PROFIT FOR THE FINANCIAL PERIOD

91,246

Profit attributable to:

Owners of the parent

91,246

PROFIT FOR THE PERIOD

91,246

OTHER COMPREHENSIVE INCOME

-

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

91,246

Total comprehensive income attributable to:

Owners of the parent

91,246

FIXED ASSETS

Tangible assets

10

1,804,157

Investments

11

-

Investment property

12

-

1,804,157

CURRENT ASSETS

Stocks

13

1,005,280

Debtors

14

1,820,326

Cash at bank and in hand

544,366

3,369,972

CREDITORS

Amounts falling due within one year

15

2,630,319

NET CURRENT ASSETS

739,653

TOTAL ASSETS LESS CURRENT LIABILITIES

2,543,810

CREDITORS

Amounts falling due after more than one year

16

(981,002

)

PROVISIONS FOR LIABILITIES

20

(107,000

)

NET ASSETS

1,455,808

CAPITAL AND RESERVES

Called up share capital

21

11,100

Fair value reserve

22

1,600,962

Retained earnings

22

(156,254

)

SHAREHOLDERS' FUNDS

1,455,808

The financial statements were approved by the Board of Directors and authorised for issue on 23 October 2026 and were signed on its behalf by:

D Furse - Director

FIXED ASSETS

Tangible assets

10

-

Investments

11

11,000

Investment property

12

875,000

886,000

CURRENT ASSETS

Debtors

14

263,306

CREDITORS

Amounts falling due within one year

15

397,806

NET CURRENT LIABILITIES

(134,500

)

TOTAL ASSETS LESS CURRENT LIABILITIES

751,500

CREDITORS

Amounts falling due after more than one year

16

700,000

NET ASSETS

51,500

CAPITAL AND RESERVES

Called up share capital

21

11,100

Retained earnings

22

40,400

SHAREHOLDERS' FUNDS

51,500

Company's profit for the financial year

287,900

The financial statements were approved by the Board of Directors and authorised for issue on 23 October 2026 and were signed on its behalf by:

D Furse - Director

Called up

Fair

share

Retained

value

Total

capital

earnings

reserve

equity

£

£

£

£

Changes in equity

Issue of share capital

11,100

-

-

11,100

Dividends

-

(247,500

)

-

(247,500

)

Total comprehensive income

-

91,246

1,600,962

1,692,208

Balance at 31 December 2025

11,100

(156,254

)

1,600,962

1,455,808

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Changes in equity

Issue of share capital

11,100

-

11,100

Dividends

-

(247,500

)

(247,500

)

Total comprehensive income

-

287,900

287,900

Balance at 31 December 2025

11,100

40,400

51,500

Cash flows from operating activities

Cash generated from operations

1

502,138

Interest element of hire purchase payments paid

(16,879

)

Tax paid

(212,233

)

Net cash from operating activities

273,026

Cash flows from investing activities

Purchase of tangible fixed assets

(24,088

)

Sale of tangible fixed assets

114,179

Cash acquired on acquisition

304,378

Interest received

499

Net cash from investing activities

394,968

Cash flows from financing activities

HP capital repayments in year

(76,851

)

Amount introduced by directors

318,007

Amount withdrawn by directors

(117,284

)

Equity dividends paid

(247,500

)

Net cash from financing activities

(123,628

)

Increase in cash and cash equivalents

544,366

Cash and cash equivalents at beginning of period

2

-

Cash and cash equivalents at end of period

2

544,366

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

£

Profit before taxation

67,936

Depreciation charges

103,949

Loss on disposal of fixed assets

3,172

Finance costs

16,879

Finance income

(499

)

191,437

Increase in stocks

(53,961

)

Decrease in trade and other debtors

654,142

Decrease in trade and other creditors

(289,480

)

Cash generated from operations

502,138

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

24.10.24

£

£

Cash and cash equivalents

544,366

-

3.	ANALYSIS OF CHANGES IN NET DEBT

At 24.10.24

Cash flow

At 31.12.25

£

£

£

Net cash

Cash at bank and in hand

-

544,366

544,366

-

544,366

544,366

Debt

Finance leases

-

(553,878

)

(553,878

)

Debts falling due after 1 year

-

(700,000

)

(700,000

)

-

(1,253,878

)

(1,253,878

)

Total

-

(709,512

)

(709,512

)

4.	MAJOR NON-CASH TRANSACTIONS

During the year two directors transferred a property into the holding company with a value of £875,000. This was not physically paid and instead was credited to the Director's loan accounts.

Further to this, two directors each exchanged £350,000 of their Director's loan accounts for redeemable preference shares, a total issue of £700,000.

The share capital issued in the year was issued in exchange for the shares in the subsidiary, and so as a result the issue was non cash in nature.

The above transactions have not been recorded in the cash flow statement.

1.	STATUTORY INFORMATION

Robur 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.

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

2.	STATEMENT OF COMPLIANCE

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.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

The group financial statements consolidate the financial statements of Robur Holdings Limited and all its subsidiary undertakings.

This is the first set of consolidated accounts following a group restructure.

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been adopted this year and comparisons to the subsidiary companies have been made and all policies are consistently applied.

The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in a separate accounting policy within these financial statements.

Going concern

After considering the group's budgets and expected trading activity for the coming 12 to 24 months, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. The group therefore continues to adopt the going concern basis in preparing its financial statements.

Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Company and its subsidiaries.

This first set of consolidated accounts shows the consolidated profit and loss for the period from 24 October 2024 to 31 December 2025. The group was formed as of 25 September 2025

Assets and liabilities of subsidiaries are shown in the consolidated accounts at their fair value on the date of acquisition.

The excess of the fair value of assets and liabilities acquired, over the cost of the acquisition has been shown within the fair value reserve on the balance sheet. This has arisen due to the fact that this was an internal reorganisation using a share for share exchange, rather than a purchase of shares from a third party.

Related party exemption

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

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Significant judgements and estimates

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for the assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.

The estimates and assumptions made by management in the course of preparing the financial statements are set out below:

i. Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of these assets and residual values are assessed annually and may vary depending on a number of factors, such as their product life cycles and maintenance programmes. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

ii. Trade debtors are reviewed for impairment loss on an annual basis and provision is made for any balances where there is uncertainty against the recoverability of the balance. This methodology is applied on a customer by customer basis.

iii. Stocks are reviewed for impairment on a regular basis and provision made for any stocks where there is uncertainty over the ability to sell the items. The methodology is applied on a stock line basis.

(iv) Maturity disclosure of redeemable preference shares

The Directors have opted to disclose the redeemable preference shares in issue within loans due within 2 to 5 years, due to the fact that the shareholders have no immediate plans or need to draw on the balances owed. This is in line with the activity post year end.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and the rendering of services. Turnover is recognised at the point the risks and rewards are passed onto the customer, which is approximated to the point of dispatch.

Tangible fixed assets

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

Short leasehold

-

10% on cost

Improvements to property

-

not provided

Plant and machinery

-

25% on cost

Motor vehicles

-

25% on cost

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses.

Improvements to property comprise a storage shelter that is expected to have a long life and hence has not been depreciated.

Impairment of assets

At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in profit or loss.

If an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the statement of financial position, bank overdrafts are shown within borrowings or current liabilities.

Stocks

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

Taxation

Current tax is recognised for the amount of income tax payable in respect of the taxable profit for the current or past reporting periods using the tax rates and laws that have been enacted or substantively enacted by the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date, except as otherwise indicated.

Deferred tax assets are only recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. If and when all conditions for retaining tax allowances for the cost of a fixed asset have been met, the deferred tax is reversed.

Deferred tax is calculated using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

The tax expense (income) is presented either in profit or loss, other comprehensive income or equity depending on the transaction that resulted in the tax expense (income).

Research and development

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

Leases

At inception the Company assesses agreements that transfer the right to use assets. The assessment considers whether the arrangement is a finance lease or an operating lease based on the substances of the arrangement.

Finance leases / hire purchase arrangements

Leases of assets that transfer substantially all the risks and rewards of ownership to the Company are classified as finance leases or hire purchase arrangements as per the agreement.

Assets held under this category are recognised initially at the fair value of the leased asset (or, if lower, the present value of minimum lease payments) at the inception of the lease. The corresponding liability to the lessor is included in the statement of financial position as a lease obligation. Lease payments are apportioned between finance charges and reduction of the lease obligation using the effective interest method so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are deducted in measuring profit or loss.

Assets held under this category are included in tangible fixed assets and depreciated over the shorter of the lease term and the estimated useful life of the asset. Assets are assessed for impairment at each reporting date.

Operating leases

Leases that do no transfer all the risks and rewards of ownership are classified as operating leases. Payments under operating leases are charged to the profit and loss account on a straight-line basis over the period of the lease.

Pension costs and other post-retirement benefits

Short- term employee benefits and contributions to defined contribution plans are recognised as an expense in the period in which they are incurred.

Provisions for liabilities

Provisions are recognised when the group has a present (legal or constructive) obligation as a result of a past event; it is probable that an outflow of resources will be required to settle the obligation; and the amount of the obligation can be estimated reliably.

The amount recognised as a provision is the best estimate of the consideration required to settle the present recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value using a pre-tax discount rate. The unwinding of the discount is recognised as a finance costs in profit or loss in the period it arises.

The group recognises a provision for annual leave accrued by employees for services rendered in the current period, and which employees are entitled to carry forward and use within the next 12 months, measured at the salary costs payable for the period of absence.

Investments in subsidiary undertakings are recognised at cost.

Investments are reviewed annually for any evidence of impairment, with impairments being processed through the Income Statement where there is considered to be a permanent diminution in value.

Preference shares

Redeemable preference shares are shown in non current liabilities on the balance sheet due to their redeemable nature. Any dividends paid on the redeemable preference shares issued are recorded as an interest expense in the profit and loss account, in line with the substance of the transaction.

4.	EMPLOYEES AND DIRECTORS

£

Wages and salaries

494,114

Social security costs

60,300

Other pension costs

7,769

562,183