REGISTERED NUMBER: 07647610 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2025

FOR

INTSOL RECRUITMENT LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

6

Report of the Independent Auditors

8

Income Statement

12

Other Comprehensive Income

13

Statement of Financial Position

14

Statement of Changes in Equity

15

Statement of Cash Flows

16

Notes to the Statement of Cash Flows

17

Notes to the Financial Statements

18

DIRECTORS:

P D A Karras

Mrs G Karras

A S Kounnis

Mrs A Kounnis

REGISTERED OFFICE:

1 Kings Avenue

London

N21 3NA

REGISTERED NUMBER:

07647610 (England and Wales)

AUDITORS:

Xeinadin Audit Limited

Level 5A

Maple House

149 Tottenham Court Road

London

W1T 7NF

The directors present their strategic report for the year ended 31 October 2025.

REVIEW OF BUSINESS

The principle activities of the company in the year under review was that of recruitment services.

Turnover for the year decreased by approximately 39% to £47,711,919 (2024: £77,620,998). The decline reflects two factors: the non-recurrence of a large driver relocation contract, under which temporary drivers were engaged through third-party payroll arrangements and recharged at low margin, which concluded during the prior year; and a general softening in demand for core recruitment services.

Despite the fall in turnover, gross profit margin improved to 17% (2024: 11%), as cost of sales fell from approximately 89% to 83% of turnover. The relocation contract's low-margin payroll costs no longer feature in the cost base, and driver payroll administration transferred to a different provider during the year, reducing associated on-costs. Salaries within cost of sales fell by approximately 45%, reflecting the reduced internal staffing requirement following the contact's conclusion.

Profit before tax for the year is £4,011,517 (2024: £4,361,564), a reduction of only 8% - disproportionately small relative to the fall in turnover, reflecting the improved profitability of the retained business.

Future Outlook

The directors expect turnover for next year to reflect a more normalized level of core recruitment activity, absent any comparable low-margin contracts. The focus remains on securing higher-margin placements and maintaining cost discipline, while remaining open to further relocation or mobilization contracts on commercially acceptable terms.

PRINCIPAL RISKS AND UNCERTAINTIES

Financial risk management objectives

The company's risk management policy has been to identify the principal business risks in achieving the company's strategic objectives, establishing appropriate internal controls to manage those risks and ensuring that appropriate monitoring and reporting systems are in place. These controls are continually reviewed and where necessary improved.

The company's principal financial instruments comprise cash and cash equivalent balances, trade payables and trade receivables. The main purpose of these instruments is to fund the company's operations. The company does not enter into or trade financial instruments, including derivative financial instruments of a speculative nature.

The company's approach to managing risks applicable to the financial instruments concerned is shown below:

Price risk

As a recruitment services provider the company does not take positions which exposes it to price risk.

Foreign currency risk

The company's income and expenditure are predominantly in sterling. The company is not therefore materially exposed to foreign currency risk. The company does not currently hold assets denominated in currencies other than sterling, therefore it is not exposed to currency risk on fluctuations due to the changes in exchange rates

The directors are responsible for managing the company's exposure to foreign currency risk should it arise, by monitoring the exposure on all foreign currency denominated assets and liabilities.

Interest rate risk

The company's borrowings are at a fixed rate of interest above the Bank of England base rate, therefore limiting interest rate risk to movement in the base rate.

Should interest rates change with all other variables remaining constant, any change in the net assets attributable to the company would have no material impact on the financial statements, given the low levels of borrowings held on the balance sheet.

Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the company. The company has sufficient level of credit insurance in place,suffered no material credit losses during the period under review and had no significant exposure to trade receivables at the end of the reporting period.

The company has adopted a policy of only dealing with creditworthy counterparties.The company manages counterparty risk as far as possible given the current global economic conditions and by undertaking credit risk checks.

Credit risk exposure also arises on cash balances held on deposit. The credit risk on these liquid funds is mitigated as far as possible as the financial assets are held at major international banking companies with reported substantial financial strength and high-grade credit ratings assigned by international credit-rating agencies.

Trade and other receivables are managed in respect of cash flow risk by regularly monitoring the amounts outstanding and calling on funds to enable to the company to meet payments as they fall due.

Other than the above the company does not have significant credit risk exposure to any single counterparty.

Invoice factoring risk

Company uses invoice factoring services for its cash flow needs. Invoice factoring risk refers to the potential financial uncertainties associated with selling accounts receivable to a third party wanting immediate cash. The company has adopted a policy of only dealing with creditworthy counterparties. The company manages counterparty risk as far as possible given the current global economic conditions and by undertaking credit risk checks including ongoing credit monitoring of existing counterparties.

Liquidity risk

Liquidity risk refers to the risk of not having sufficient resources to enable the company to meet its obligations as they fall due.

Responsibility for liquidity risk management rests with the directors, who manage the company's short, medium and long-term funding and liquidity management requirements. The company manages liquidity risk by continuously monitoring forecast and actual cash flows and matching the maturity profile of financial assets and liabilities.

The directors consider trade payables' liquidity risk to be the most significant risk and this is managed by ensuring sufficient funds are available to meet amounts due as they fall payable. All of the company's trade and other payables are on demand.

The company aims to maintain a level of liquidity that is prudent to meet the company's needs at all times and the directors regularly monitor cash flow and management accounts to ensure that the company maintains adequate working capital.

There were no capital commitments at the end of the reporting period.

Reputational risk

Reputational risk relates to how an event or action can negatively affect the perception of the company by relevant stakeholders including customers, business partners, shareholders, and employees. A reputational risk assessment was undertaken, and a strategy implemented, including a monitoring system, staff training and an online presence to promote the positive culture within the business. Reputational risks can vary, and it is important to the business to maintain ongoing regular assessments of the potential risks and strategy.

Employee reliance and retention risk

The company depends on the skills and client relationships of its recruitment consultants and key staff. Loss of key personnel, or difficulty attracting and retaining suitable qualified staff in a competitive labour market, could affect client service and the ability to win new business. The directors mitigate this through competitive remuneration, training, and a positive working environment.

Economic and market conditions

Demand for the company's recruitment services is closely tied to the health of the UK economy and labour market. A downturn in economic conditions or reduced client hiring activity could place pressure on turnover and margins. The directors monitor market conditions on an ongoing basis and seek to diversify the client base to reduce reliance on any one sector.

Regulatory risk

The company operates in a regulated sector, subject to employment agency legislation, the Agency Workers Regulations, employment and right-to-work law, IR35, data protection, and health and safety legislation. Non-compliance could result in financial penalties, reputational damage, or operating restrictions. The directors mitigate this through compliance procedures, monitoring of legislative change, and professional advice where needed.

KEY PERFORMANCE INDICATORS

The directors consider the following as key performance indicators

2025

2024

£

£

Turnover

47,711,919

77,620,998

Gross Profit

8,156,265

8,714,009

Gross Margin

17%

11%

Profit before tax

4,011,517

4,361,564

Net Assets

512,992

2,864,872

The company also monitors its performance by tracking other non-financial indicators that we believe are important to our long term success.

Compliance with relevant laws and regulations to its operations are closely followed. The company has also created a positive and challenging work environment by encouraging feedback from employees and use it as a tool to drive business performance.

KEY STRATEGY AND FUTURE DEVELOPMENTS

The Directors have built a strong brand and reputation by providing first class service in recruitment industry. This is achieved by aligning ourselves closely with our clients, ensuring we have a full understanding of their requirements. Our strategy is to continue to specialise in our principle activities, maintain our brand reputation whilst managing the risk areas across our business

FINANCIAL POSITION

The Company is in good health and allows expansion of the business from its own resources. The results for the year and the financial position at the year-end were considered satisfactory by the directors who expect controlled growth and profitability to continue in the forseeable future.

The directors are confident that the company will be able to strengthen its financial position by building on its current portfolio of contracts and grow the business with both existing and new clients in the future.

ON BEHALF OF THE BOARD:

P D A Karras - Director

28 October 2026

The directors present their report with the financial statements of the company for the year ended 31 October 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of recruitment services.

DIVIDENDS

An interim dividend of £10,960 per share was paid on 31 July 2025. The directors have declared a further dividend of £44,705.5 per share, making a total of £55,665.5 per share for the year ended 31 October 2025.

Dividends

2025

2024

First interim dividend

£1,096,000

£815,000

Second interim dividend

£4,470,550

£Nil

Total

£5,566,550

£815,000

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 November 2024 to the date of this report.

P D A Karras

Mrs G Karras

A S Kounnis

Mrs A Kounnis

POLITICAL DONATIONS AND EXPENDITURE

The company had made number of smaller donations to various local charities to support their causes totalling £13,338 (2024: £6,858). No political donations were made by the company during the years 2025 & 2024.

Charity

2025

2024

Just Giving

£588

Build a Bridge Foundation

£2,000

Funeral Donation

£500

Action Medical Research

£250

Feed the 100

£10,000

Enthuse

£1,755

The Felix Project

£2,603

The Greek Othodox

£2,500

Total

£13,338

£6,858

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the 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 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;

-	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.

AUDITORS

The auditors, Xeinadin Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

P D A Karras - Director

28 October 2026

Opinion

We have audited the financial statements of Intsol Recruitment Limited (the 'company') for the year ended 31 October 2025 which comprise the Income Statement, Other 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 October 2025 and of its 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 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 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 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 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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, 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 six, 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 recruitment services and driver training sectors;

- 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 the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, 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; and

- reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, 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.

Robert Perez (FCA) (Senior Statutory Auditor)

for and on behalf of Xeinadin Audit Limited

Level 5A

Maple House

149 Tottenham Court Road

London

W1T 7NF

28 October 2026

REVENUE

3

47,711,919

77,620,998

Cost of sales

39,555,654

68,906,989

GROSS PROFIT

8,156,265

8,714,009

Administrative expenses

4,129,781

4,378,752

4,026,484

4,335,257

Other operating income

3,776

54,665

OPERATING PROFIT

5

4,030,260

4,389,922

Loan written off

6

8,319

13,995

4,021,941

4,375,927

Interest receivable and similar income

62,930

32,525

4,084,871

4,408,452

Interest payable and similar expenses

7

73,354

46,888

PROFIT BEFORE TAXATION

4,011,517

4,361,564

Tax on profit

8

796,847

1,077,405

PROFIT FOR THE FINANCIAL YEAR

3,214,670

3,284,159

PROFIT FOR THE YEAR

3,214,670

3,284,159

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

3,214,670

3,284,159

FIXED ASSETS

Property, plant and equipment

10

330,346

382,427

CURRENT ASSETS

Debtors

11

7,736,330

11,028,912

Cash at bank

1,407,481

1,149,397

9,143,811

12,178,309

CREDITORS

Amounts falling due within one year

12

8,904,680

9,619,451

NET CURRENT ASSETS

239,131

2,558,858

TOTAL ASSETS LESS CURRENT LIABILITIES

569,477

2,941,285

CREDITORS

Amounts falling due after more than one year

13

(8,666

)

(31,776

)

PROVISIONS FOR LIABILITIES

15

(47,819

)

(44,637

)

NET ASSETS

512,992

2,864,872

CAPITAL AND RESERVES

Called up share capital

16

100

100

Retained earnings

17

512,892

2,864,772

SHAREHOLDERS' FUNDS

512,992

2,864,872

The financial statements were approved by the Board of Directors and authorised for issue on 28 October 2026 and were signed on its behalf by:

P D A Karras - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 November 2023

100

395,613

395,713

Changes in equity

Dividends

-

(815,000

)

(815,000

)

Total comprehensive income

-

3,284,159

3,284,159

Balance at 31 October 2024

100

2,864,772

2,864,872

Changes in equity

Dividends

-

(5,566,550

)

(5,566,550

)

Total comprehensive income

-

3,214,670

3,214,670

Balance at 31 October 2025

100

512,892

512,992

Cash flows from operating activities

Cash generated from operations

1

4,533,305

696,282

Interest paid

(69,122

)

(42,656

)

Interest element of finance lease payments paid

(4,232

)

(4,232

)

Tax paid

(1,038,876

)

(1,273,390

)

Net cash from operating activities

3,421,075

(623,996

)

Cash flows from investing activities

Purchase of tangible fixed assets

(59,598

)

(13,970

)

Sale of tangible fixed assets

-

2,000

Interest received

62,930

32,525

Net cash from investing activities

3,332

20,555

Cash flows from financing activities

Group Undertakings loan

2,355,150

(1,366,014

)

Connected Companies loan

169,996

(74,446

)

Finance leases in the year

(23,110

)

(23,110

)

Amount introduced by directors

1,489,959

1,211,380

Amount withdrawn by directors

(1,591,768

)

(1,415,552

)

Equity dividends paid

(5,566,550

)

(815,000

)

Net cash from financing activities

(3,166,323

)

(2,482,742

)

Increase/(decrease) in cash and cash equivalents

258,084

(3,086,183

)

Cash and cash equivalents at beginning of year

2

1,149,397

4,235,580

Cash and cash equivalents at end of year

2

1,407,481

1,149,397

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

2025

2024

£

£

Profit before taxation

4,011,517

4,361,564

Depreciation charges

111,677

110,562

Loss on disposal of fixed assets

-

130

Finance costs

73,354

46,888

Finance income

(62,930

)

(32,525

)

4,133,618

4,486,619

Decrease in trade and other debtors

811,981

4,122,417

Decrease in trade and other creditors

(412,294

)

(7,912,754

)

Cash generated from operations

4,533,305

696,282

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 October 2025

31.10.25

1.11.24

£

£

Cash and cash equivalents

1,407,481

1,149,397

Year ended 31 October 2024

31.10.24

1.11.23

£

£

Cash and cash equivalents

1,149,397

4,235,580

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.11.24

Cash flow

At 31.10.25

£

£

£

Net cash

Cash at bank

1,149,397

258,084

1,407,481

1,149,397

258,084

1,407,481

Debt

Finance leases

(54,886

)

23,110

(31,776

)

(54,886

)

23,110

(31,776

)

Total

1,094,511

281,194

1,375,705

1.	STATUTORY INFORMATION

Intsol Recruitment 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.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Significant judgements and estimates

In the application of the company's accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period. or in the period of the revision and future periods where the revision affects both current and future periods.

Revenue recognition

Revenue is recognised upon rendering of services to customers in an amount that reflects the consideration which the company expects to receive in exchange for those services. To recognise revenues, the company applies following five step approach:

(1) identify the contract with a customer,

(2) identify the performance obligations in the contract,

(3) determine the transaction price,

(4) allocate the transaction price to the performance obligations in the contract, and

(5) recognise revenues when a performance obligation is satisfied.

Revenue is measured based on the transaction price, which is the consideration, adjusted for volume discounts, service level credits, performance bonuses, price concessions and incentives, if any, as specified in the contract with the customer.

Interest income

Interest income is recognised on a time proportion basis as and when accrued. Interest income on financial instruments are recognised using the effective interest rate method. The effective interest rate is the rate that exactly discounts the estimated future cash receipts through the expected life of the financial asset to the gross carrying amount of the asset.

Property, plant and equipment

Property, plant and equipment is stated at cost less accumulated depreciation and accumulated impairment losses. Such cost included costs directly attributable to making the asset capable of operating as intended.

The carrying values of tangible assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable.

Depreciation has been provided at the following rates in order to write off the assets over their estimated useful lives.

Plant and machinery

20% on Reducing Balance

Computer equipment

20% on Reducing Balance

Fixture & fittings

20% on Reducing Balance

Motor vehicles

20% on Reducing Balance

Leasehold Improvements

Over 5 years

The company has adopted the policy of charging a full year depreciation in the year of acquisitions and none in the year of disposal.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the profit and loss.

Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge. Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value though profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.