REGISTERED NUMBER: 12094925 (England and Wales)

B.W. Industries (UK) Limited

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements for the Year Ended 31 January 2026

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

6

Consolidated Statement of Comprehensive Income

9

Consolidated Balance Sheet

10

Company Balance Sheet

11

Consolidated Statement of Changes in Equity

12

Company Statement of Changes in Equity

13

Consolidated Cash Flow Statement

14

Notes to the Consolidated Cash Flow Statement

15

Notes to the Consolidated Financial Statements

16

DIRECTORS:

D R Smith

S P Smith

J Petch

G Reiss

K Watson

SECRETARY:

D R Smith

REGISTERED OFFICE:

Carnaby Industrial Estate

Lancaster Road

Carnaby, Bridlington

East Yorkshire

YO15 3QY

REGISTERED NUMBER:

12094925 (England and Wales)

AUDITORS:

Smailes Goldie

Chartered Accountants

Statutory Auditor

Regent's Court

Princess Street

Hull

East Yorkshire

HU2 8BA

The directors present their strategic report of the company and the group for the year ended 31 January 2026.

REVIEW OF BUSINESS

The group traded throughout the period in the supply of a comprehensive range of galvanised and fabricated steel components and accessories for the domestic, construction, manufacturing and agricultural sectors.

The directors are satisfied with the continued performance and progression of the business, despite deteriorating wider economic conditions and the challenges that continues to bring. Following two years of declining turnover mainly accountable to softening prices following Covid and the Russia/Ukraine war, steel prices remained stable for the majority of the year which resulted in turnover and profit figures consistent with the previous year.

Turnover and gross profit are regarded as key performance indicators and while turnover has been varied due to external factors over the past five years the directors are pleased with the gross profit percentage remaining consistent during this period.

2026

2025

2024

£

£

£

Turnover

31,191,253

31,666,539

41,567,219

Gross Profit

10,788,963

11,242,290

16,645,346

PRINCIPAL RISKS AND UNCERTAINTIES

The group's results are sensitive to changes in raw material prices which tend to fluctuate on a regular basis. Any increases in raw material prices have the ability to impact upon the company's profitability.

In addition, the group monitors its credit risk as a priority matter. This is especially important in the current economic environment and the group has systems in place to reduce that risk to an acceptable level.

SECTION 172(1) STATEMENT

The directors have considered the matters set out in section 172 (1) (a) to (f) when performing their duty to

promote the success of the company and the group. The directors continue to ensure that any business decisions consider the long-term impact on all key stakeholders. This includes when evaluating acquisition and growth opportunities. During the period there has been a strong focus on the continued integration of previous acquisitions to ensure that going forward the business can function in a single consistent manner. This integration promotes employee development and allows supplier and customer relationships to be elevated to a group level. Environmental issues continue to be a major focus of the business and are a key consideration as the Board compiles its strategy. The board encourages sharing of best practices between group companies to ensure the business operates at the highest possible standard and endeavours for all members to be treated fairly.

In addition, the directors consider the company's employees, suppliers and customers to be integral to its continued success. The directors have reported on engagement with employees, suppliers, customers and others within the Report of the Directors.

ON BEHALF OF THE BOARD:

D R Smith - Director

26 October 2026

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

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of the supply of pressed and rolled metal sections to industry.

DIVIDENDS

The total distribution of dividends for the period ended 31st January 2026 will be £396,000 (2025: £406,680).

DIRECTORS

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

D R Smith

S P Smith

Other changes in directors holding office are as follows:

J Petch - appointed 30 January 2026

G Reiss - appointed 30 January 2026

K Watson - appointed 30 January 2026

DISABLED EMPLOYEES

The company and group gives full consideration to applications for employment from disabled persons where the requirements of the job can be adequately fulfilled by a disabled person. Where existing employees become disabled, it is the group's policy wherever practicable to provide continuing employment under normal terms and conditions and to provide training and career development and promotion to disabled employees wherever appropriate.

EMPLOYEE INVOLVEMENT

During the year, the policy of providing employees with information about the group has been continued through internal media methods in which employees have also been encouraged to present their suggestions and views on the group's performance. Regular meetings are held with employees to allow a free flow of information and ideas.

ENGAGEMENT WITH EMPLOYEES

The directors ensure that all employees are kept up to date with key and relevant information which may concern them as employees. Employees are consulted as necessary when making material decisions which may affect them. Employees are encouraged to have an interest in the performance of the company and a general awareness of the group's performance.

ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS

The directors continuously consider key stakeholder relationships and develops them through the senior management team. The group considers relationships with customers and suppliers on a global scale and maintains strong relationships at a company and group level. Organic and acquisitive group actions take into consideration these business relationships.

STREAMLINED ENERGY AND CARBON REPORTING

UK Greenhouse gas emissions and energy use data for the period 1 February 2025 to 31 January 2026

Current Reporting Year2025/26

Comparative Reporting Year 2024/2025

Consumption Breakdown

Usage in MWh

Usage in MWh

Gas (Scope 1)

877.00

1,335.41

Transport (Scope 1)

1,901.20

2,165.29

Electricity (Scope 2)

907.95

1,467.07

Total MWh

3,686.15

4,967.77

Consumption Breakdown

CO2e Emissions (tonnes

)

CO2e Emissions (tonnes

)

Gas (Scope 1)

215.77

328.46

Transport (Scope 1)

476.04

530.08

Electricity (Scope 2) Location

160.71

303.76

Electricity (Scope 2) Market

7.56

65.29

Water (Scope 3)

0.58

0.57

Total CO2e Location Based

853.09

1,162.86

Total CO2e Market Based

699.94

924.40

Intensity ratio (tCO2e per '000 actual hours worked) Location Based

2.79

3.91

Intensity ratio (tCO2e per '000 actual hours worked) Market Based

2.29

3.11

Associated greenhouse gas emissions have been calculated using the GHG reporting protocol and have used the 2025 UK Governments Conversion Factors for Company Reporting.

BW Industries completed the installation of a 1.324MWp solar panel system on the factory roof in late December 2024. Over the course of the 2026 financial year this system generated 1,084,429 kWh, providing the company with substantial savings in both energy costs and carbon emissions

To fulfil remaining demand, additional electricity needs were provided under 100% renewably sourced electricity contracts for the full year, having started a new contract in April 2025. This significantly reduced the Market Based figures for Scope 2.

In 2025 the company acquired a further electric forklift to add to the fleet, whilst simultaneously decommissioning a diesel forklift. There remains an on-going goal to upgrade all of BW Industries' diesel-powered on-site plant to fully electric by the year 2030, which currently stands at 40%.

The company also replaced four old HGV tractor units with four brand new models, with the increased fuel efficiency further reducing Scope 1 emissions.

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;

-	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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Smailes Goldie, will be proposed for re-appointment in accordance with Section 485 of the Companies Act 2006.

ON BEHALF OF THE BOARD:

D R Smith - Director

26 October 2026

Opinion

We have audited the financial statements of B.W. Industries (UK) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 January 2026 which comprise the Consolidated Statement of 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 January 2026 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 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, tax legislation, data protection, anti-bribery, employment, environmental and health and safety legislation. An understanding of these laws and regulations and the extent of compliance was obtained through discussion with management and inspecting legal and regulatory correspondence.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

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

-

performed analytical procedures to identify any unusual or unexpected relationships;

-

tested journal entries to identify unusual transactions;

-

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

-

investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

-

agreeing financial statement disclosures to underlying supporting documentation;

-

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

-

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

Due to the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission, or misrepresentation.

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

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

William Cowell FCA (Senior Statutory Auditor)

for and on behalf of Smailes Goldie

Chartered Accountants

Statutory Auditor

Regent's Court

Princess Street

Hull

East Yorkshire

HU2 8BA

26 October 2026

TURNOVER

3

31,191,253

31,666,539

Cost of sales

20,402,290

20,424,249

GROSS PROFIT

10,788,963

11,242,290

Administrative expenses

5,659,105

5,037,224

5,129,858

6,205,066

Other operating income

15,723

-

OPERATING PROFIT

5

5,145,581

6,205,066

Interest receivable and similar income

756,925

804,282

5,902,506

7,009,348

Interest payable and similar expenses

6

206

25,597

PROFIT BEFORE TAXATION

5,902,300

6,983,751

Tax on profit

7

1,611,899

1,869,117

PROFIT FOR THE FINANCIAL YEAR

4,290,401

5,114,634

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

4,290,401

5,114,634

Profit attributable to:

Owners of the parent

4,290,401

5,114,634

Total comprehensive income attributable to:

Owners of the parent

4,290,401

5,114,634

FIXED ASSETS

Intangible assets

10

1,685,550

2,145,245

Tangible assets

11

8,055,101

5,769,881

Investments

12

-

-

9,740,651

7,915,126

CURRENT ASSETS

Stocks

13

2,940,927

3,226,899

Debtors

14

27,377,682

7,499,777

Cash at bank and in hand

997,451

16,230,180

31,316,060

26,956,856

CREDITORS

Amounts falling due within one year

15

5,700,122

3,875,433

NET CURRENT ASSETS

25,615,938

23,081,423

TOTAL ASSETS LESS CURRENT LIABILITIES

35,356,589

30,996,549

PROVISIONS FOR LIABILITIES

17

1,399,877

934,238

NET ASSETS

33,956,712

30,062,311

CAPITAL AND RESERVES

Called up share capital

18

421,448

421,448

Share premium

19

88,251

88,251

Capital redemption reserve

19

125,000

125,000

Retained earnings

19

33,322,013

29,427,612

SHAREHOLDERS' FUNDS

33,956,712

30,062,311

The financial statements were approved by the Board of Directors and authorised for issue on 26 October 2026 and were signed on its behalf by:

D R Smith - Director

FIXED ASSETS

Intangible assets

10

-

-

Tangible assets

11

-

-

Investments

12

11,276,928

11,276,928

11,276,928

11,276,928

CURRENT ASSETS

Debtors

14

21,400,319

1,100,243

Cash at bank

808,402

16,050,004

22,208,721

17,150,247

CREDITORS

Amounts falling due within one year

15

1,949,139

1,176,408

NET CURRENT ASSETS

20,259,582

15,973,839

TOTAL ASSETS LESS CURRENT LIABILITIES

31,536,510

27,250,767

CAPITAL AND RESERVES

Called up share capital

18

421,448

421,448

Share premium

19

88,251

88,251

Capital redemption reserve

19

125,000

125,000

Retained earnings

19

30,901,811

26,616,068

SHAREHOLDERS' FUNDS

31,536,510

27,250,767

Company's profit for the financial year

4,681,743

5,723,071

The financial statements were approved by the Board of Directors and authorised for issue on 26 October 2026 and were signed on its behalf by:

D R Smith - Director

Called up

Capital

share

Retained

Share

redemption

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1 February 2024

421,448

24,719,658

88,251

125,000

25,354,357

Changes in equity

Dividends

-

(406,680

)

-

-

(406,680

)

Total comprehensive income

-

5,114,634

-

-

5,114,634

Balance at 31 January 2025

421,448

29,427,612

88,251

125,000

30,062,311

Changes in equity

Dividends

-

(396,000

)

-

-

(396,000

)

Total comprehensive income

-

4,290,401

-

-

4,290,401

Balance at 31 January 2026

421,448

33,322,013

88,251

125,000

33,956,712

Called up

Capital

share

Retained

Share

redemption

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1 February 2024

421,448

21,299,677

88,251

125,000

21,934,376

Changes in equity

Dividends

-

(406,680

)

-

-

(406,680

)

Total comprehensive income

-

5,723,071

-

-

5,723,071

Balance at 31 January 2025

421,448

26,616,068

88,251

125,000

27,250,767

Changes in equity

Dividends

-

(396,000

)

-

-

(396,000

)

Total comprehensive income

-

4,681,743

-

-

4,681,743

Balance at 31 January 2026

421,448

30,901,811

88,251

125,000

31,536,510

Cash flows from operating activities

Cash generated from operations

1

9,738,612

7,304,500

Interest paid

(206

)

(25,597

)

Tax paid

(1,824,652

)

(2,256,730

)

Net cash from operating activities

7,913,754

5,022,173

Cash flows from investing activities

Purchase of tangible fixed assets

(3,238,418

)

(2,994,782

)

Sale of tangible fixed assets

31,086

24,982

Interest received

756,925

804,282

Net cash from investing activities

(2,450,407

)

(2,165,518

)

Cash flows from financing activities

Amount introduced by directors

800,000

-

Amount withdrawn by directors

-

(800,000

)

Movement in non-trading group receivable

(21,100,076

)

-

Equity dividends paid

(396,000

)

(406,680

)

Net cash from financing activities

(20,696,076

)

(1,206,680

)

(Decrease)/increase in cash and cash equivalents

(15,232,729

)

1,649,975

Cash and cash equivalents at beginning of year

2

16,230,180

14,580,205

Cash and cash equivalents at end of year

2

997,451

16,230,180

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

2026

2025

£

£

Profit before taxation

5,902,300

6,983,751

Depreciation charges

1,365,430

1,007,677

Loss/(profit) on disposal of fixed assets

16,377

(7,960

)

Finance costs

206

25,597

Finance income

(756,925

)

(804,282

)

6,527,388

7,204,783

Decrease in stocks

285,972

340,501

Decrease in trade and other debtors

779,443

588,990

Increase/(decrease) in trade and other creditors

2,145,809

(829,774

)

Cash generated from operations

9,738,612

7,304,500

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 January 2026

31.1.26

1.2.25

£

£

Cash and cash equivalents

997,451

16,230,180

Year ended 31 January 2025

31.1.25

1.2.24

£

£

Cash and cash equivalents

16,230,180

14,580,205

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.2.25

Cash flow

At 31.1.26

£

£

£

Net cash

Cash at bank and in hand

16,230,180

(15,232,729

)

997,451

16,230,180

(15,232,729

)

997,451

Total

16,230,180

(15,232,729

)

997,451

1.	STATUTORY INFORMATION

B.W. Industries (UK) Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared in accordance with applicable accounting standards including Financial Reporting Standard 102 "The Financial Reporting Standard Applicable in the UK and Republic of Ireland" (FRS 102) and the Companies Act 2006. The financial statements have been prepared on a going concern basis under the historical cost convention.

The significant accounting policies applied in the preparation of these financial statements are set out below.

Basis of consolidation

The consolidated financial statements include the financial statements of the company and its subsidiary undertakings made up to 31 January 2026. The acquisition method of accounting has been adopted. Under this method the results of subsidiary undertakings acquired or disposed of in the year are included in the consolidated profit and loss account from the date of acquisition or up to the date of disposal.

Under Section 408 of the Companies Act 2006 the company is exempt from the requirement to present its own profit and loss account.

Critical accounting judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of assets and liabilities, income and expenditure. These estimates and judgements are based on historical experience and other factors considered relevant. Actual results may differ from these estimates.

Key Sources of Estimation Uncertainty:

The directors consider the following to be the key sources of estimation uncertainty at the reporting date:

Work in Progress (WIP)

The valuation of work in progress requires management to estimate the costs attributable to partially completed jobs at the reporting date. Work in progress is valued using materials consumed, direct labour incurred and absorbed production overheads. The allocation of these costs is based on the quantity of materials used on each job at the year end and the amount of time recorded by employees on job-specific timesheets.

Depreciation of Tangible Fixed Assets

The annual depreciation charge depends on estimates of the useful economic lives and residual values of tangible fixed assets. The directors review these estimates annually, taking account of factors such as asset condition, technological developments and expected future use. Changes in these estimates could result in a higher or lower depreciation charge in future periods.

Stock Provision

The company reviews inventory at each reporting date to assess whether any provision is required for slow-moving, obsolete or damaged stock. The provision is based on management's assessment of future demand, expected selling prices and the condition of inventory.

Trade Debtor Provision (Bad Debts)

The company makes provision for expected credit losses on trade receivables where recovery is considered uncertain. The level of provision is based on factors including the age of debts, historical collection experience, customer creditworthiness and specific knowledge of customer circumstances. Changes in customer financial position or economic conditions could affect the recoverability of outstanding balances and result in adjustments to the provision.