REGISTERED NUMBER: 02654014 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2025

FOR

EURO TOWERS LTD.

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Income Statement

9

Other Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

15

DIRECTORS:

Mrs S L Verallo

R A Verallo

P T Verallo

SECRETARY:

Emw Secretaries Limited

REGISTERED OFFICE:

Unit 5 Edgemead Close

Round Spinney Industrial

Northampton

Northamptonshire

NN3 8RG

REGISTERED NUMBER:

02654014 (England and Wales)

AUDITORS:

TC Group, Statutory Auditor

1 Rushmills

Bedford Road

Northampton

Northamptonshire

NN4 7YB

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

Formed in October 1991Euro Towers continue to supply its Aluminium Towers and Low-Level access equipment to the major rental companies in the UK

REVIEW OF BUSINESS

As in previous years Euro Towers has had some competition from other UK Aluminium Tower companies who import and sell cheap copy versions of one of the other main brand Manufacturers, which does occasionally affect some retail sales, but we continue to hold our position as the UK's leading manufacturer of Aluminium Towers and Low-level access equipment supplying our equipment to the Rental Industry

The cost of raw materials has settled slightly which means that have held our prices since the last price increase of 5% in 2024 and at this moment I have no reason to think this will change in the short term.

Our Sales team continue to bring in new business, not just small independent rental companies but also large multi depot rental companies such as MKM with depots throughout the UK.

In Europe our French, Belgian and Spanish customers continue to buy our equipment on a regular basis and after many years we have started once again to exhibit our products in European exhibitions as well as exhibitions for the rental industry in the UK.

Specials Department

Our specials department has been extremely busy this year. These are just a few companies of the many specials our Team has completed during the year.

Kaefer

Dematic

BAE Systems

National Grid

Integral Cradles

SHE Europe

Overgate Facades

Tyco

Swisslog

Harmills

Marrioff

Blue-Chip

RML Group

Also this year we have exported specials to the USA and Iceland.

Our training Department is extremely busy with both independent people being trained and large training companies such as the largest training company in the UK HSS using our training centre.

Overseas

EuroTowers continues to supply our equipment throughout Europe including one of the largest rental companies in France and Spain.

In Europe our Belgian, Czech and Polish customers continue to buy our equipment on a regular basis customers are still active and after many years we have started once again to exhibit our products in European exhibitions as well as exhibitions for the rental industry in the UK. The Middle East and Far East business are not really buying this year due mainly to the cheap imports and cheap local manufacturers only one of which has the correct standard for towers.

PRINCIPAL RISKS AND UNCERTAINTIES

Compared to previous years, the uncertainty that was surrounding the Rental industry has almost gone there is now a positive theme to many rental companies which is showing by opening new depots and increasing demand. I am confident this will be ongoing. Are bad debt provision is reviewed monthly and there are no debts which could affect our company.

FINANCIAL KEY PERFORMANCE INDICATORS

For the first 6 months of this year, we are showing a healthy profit, and I see no reason this should stop. Turnover has increased and this should also carry forward.

Euro Towers will continue to hold its position in the industry and increase turnover in the coming year, other Worldly events notwithstanding.

Gross profit percentage decreased to 22.4% (2024: 23.3%)

Turnover decreased by 8.9% in the year (2024: decreased by 6%)

GOING CONCERN

The financial statements have been prepared on a going concern basis. The directors have considered relevant information, including future cash flows and the impact of subsequent events, in making their assessment.

Since the year end, there has been increased confidence in the UK construction marketplace. A commitment by the government to build houses has helped strengthen this confidence and is expected to boost the construction industry. This is positive news for all parties involved in supplying equipment for these new builds and is expected to increase sales for the Company. Prices have been increased to a level that helps offset raw material price increases, and margins have improved during the financial year to date as a result.

The Company continues to operate within its current banking facilities, and certain directors have confirmed that they will provide additional financial support to the Company should it be required.

Historically, Euro Towers has reported healthy profits; however, performance has been affected by the rise in the cost of raw aluminium, largely driven by the war between Russia and Ukraine. The spike in aluminium prices has now peaked and is currently lower than previously experienced. The Company has secured this lower price for the next six months.

Based on these assessments and having regard to the resources available to the entity, the directors have concluded that there is no material uncertainty over the future of the Company and that it is appropriate to continue to adopt the going concern basis in preparing the annual report and accounts.

ON BEHALF OF THE BOARD:

Mrs S L Verallo - Director

29 October 2026

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

DIVIDENDS

The loss for the year, after taxation, amounted to £129,137 (2024 - loss £28,547)

Dividends declared during the year amounted to £3,594,570 (2024 - £120,000)

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.

Mrs S L Verallo

R A Verallo

P T Verallo

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, TC Group, Statutory Auditor, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mrs S L Verallo - Director

29 October 2026

Opinion

We have audited the financial statements of Euro Towers Ltd. (the 'company') for the year ended 31 October 2025 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the 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 company's affairs as at 31 October 2025 and of its loss for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the 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 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 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.

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

We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant frameworks which are directly relevant so specific assertions in the financial statements are those that relate to the reporting framework (UK GAAP and the Companies Act 2006) and the relevant tax compliance regulations in the UK.

We understood how the company is complying with those frameworks by making enquiries of management and those responsible for legal and compliance procedures. We corroborated our enquiries through review of board minutes and discussions with those charged with governance.

We assess the susceptibility of the company's financial statements to material misstatement, including how fraud might occur, by discussion with management from various parts of the business to understand where they considered there was a susceptibility to fraud. We considered the procedures and controls that the company has established to prevent and detect fraud, and how these are monitored by management, and also any enhanced risk factors such as performance targets.

Based on our understanding, we designed our audit procedures to identify any non-compliance with laws and regulations identified in the paragraphs above. We also performed audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.

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.

Antonia Aldridge-Brown FCCA (Senior Statutory Auditor)

for and on behalf of TC Group, Statutory Auditor

1 Rushmills

Bedford Road

Northampton

Northamptonshire

NN4 7YB

29 October 2026

TURNOVER

3

4,797,598

5,268,005

Cost of sales

3,724,273

4,072,124

GROSS PROFIT

1,073,325

1,195,881

Distribution costs

312,211

326,716

Administrative expenses

825,027

838,838

1,137,238

1,165,554

OPERATING (LOSS)/PROFIT

5

(63,913

)

30,327

Interest payable and similar expenses

6

73,469

87,699

LOSS BEFORE TAXATION

(137,382

)

(57,372

)

Tax on loss

7

(8,245

)

(28,825

)

LOSS FOR THE FINANCIAL YEAR

(129,137

)

(28,547

)

LOSS FOR THE YEAR

(129,137

)

(28,547

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(129,137

)

(28,547

)

FIXED ASSETS

Intangible assets

9

-

-

Tangible assets

10

320,914

382,349

320,914

382,349

CURRENT ASSETS

Stocks

11

890,447

981,535

Debtors

12

940,953

4,713,863

Cash in hand

1,094

23,743

1,832,494

5,719,141

CREDITORS

Amounts falling due within one year

13

1,373,450

1,543,322

NET CURRENT ASSETS

459,044

4,175,819

TOTAL ASSETS LESS CURRENT LIABILITIES

779,958

4,558,168

CREDITORS

Amounts falling due after more than one year

14

(45,739

)

(100,242

)

PROVISIONS FOR LIABILITIES

17

(61,699

)

(61,699

)

NET ASSETS

672,520

4,396,227

CAPITAL AND RESERVES

Called up share capital

18

5,000

5,000

Retained earnings

19

667,520

4,391,227

SHAREHOLDERS' FUNDS

672,520

4,396,227

The financial statements were approved by the Board of Directors and authorised for issue on 29 October 2026 and were signed on its behalf by:

Mrs S L Verallo - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 November 2023

5,000

4,539,774

4,544,774

Changes in equity

Dividends

-

(120,000

)

(120,000

)

Total comprehensive income

-

(28,547

)

(28,547

)

Balance at 31 October 2024

5,000

4,391,227

4,396,227

Changes in equity

Dividends

-

(3,594,570

)

(3,594,570

)

Total comprehensive income

-

(129,137

)

(129,137

)

Balance at 31 October 2025

5,000

667,520

672,520

Cash flows from operating activities

Cash generated from operations

1

334,773

352,507

Interest paid

(64,024

)

(80,178

)

Interest element of hire purchase payments paid

(9,445

)

(7,496

)

Tax paid

8,245

-

Net cash from operating activities

269,549

264,833

Cash flows from investing activities

Purchase of tangible fixed assets

(72,539

)

(129,411

)

Sale of tangible fixed assets

27,001

13,750

Net cash from investing activities

(45,538

)

(115,661

)

Cash flows from financing activities

Loan repayments in year

(165,325

)

(139,118

)

Capital repayments in year

(55,335

)

45,592

Amount introduced by directors

60,000

-

Equity dividends paid

(86,000

)

(120,000

)

Net cash from financing activities

(246,660

)

(213,526

)

Decrease in cash and cash equivalents

(22,649

)

(64,354

)

Cash and cash equivalents at beginning of year

2

23,743

88,097

Cash and cash equivalents at end of year

2

1,094

23,743

1.	RECONCILIATION OF LOSS FOR THE FINANCIAL YEAR TO CASH GENERATED FROM OPERATIONS

2025

2024

£

£

Loss for the financial year

(129,137

)

(28,547

)

Depreciation charges

85,972

78,912

Loss/(profit) on disposal of fixed assets

21,001

(13,750

)

Finance costs

73,469

87,699

Taxation

(8,245

)

(28,825

)

43,060

95,489

Decrease in stocks

91,088

406,870

Decrease in trade and other debtors

264,334

113,882

Decrease in trade and other creditors

(63,709

)

(263,734

)

Cash generated from operations

334,773

352,507

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 October 2025

31.10.25

1.11.24

£

£

Cash and cash equivalents

1,094

23,743

Year ended 31 October 2024

31.10.24

1.11.23

£

£

Cash and cash equivalents

23,743

88,097

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.11.24

Cash flow

At 31.10.25

£

£

£

Net cash

Cash at bank and in hand

23,743

(22,649

)

1,094

23,743

(22,649

)

1,094

Debt

Finance leases

(155,537

)

55,335

(100,202

)

Debts falling due within 1 year

(743,584

)

165,325

(578,259

)

(899,121

)

220,660

(678,461

)

Total

(875,378

)

198,011

(677,367

)

1.	STATUTORY INFORMATION

Euro Towers Ltd. 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.

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.

Turnover

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be measured reliably. Revenue is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax, and other sales taxes. The following criteria must also be met before revenue is recognised.

Sale of Goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

- the Company has transferred the significant risks and rewards of ownership to the buyer;

- the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

- the amount of revenue can be measured reliably;

- it is probable that the Company will receive the consideration due under the transaction; and

- the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of Services

Revenue from a contract to provide services is recognised in the period in which the services are provided, in accordance with the stage of completion of the contract, when all of the following conditions are satisfied:

- the amount of revenue can be measured reliably;

- it is probable that the Company will receive the consideration due under the contract;

- the stage of completion of the contract at the end of the reporting period can be measured reliably; and

- the costs incurred and the costs to complete the contract can be measured reliably.

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets, less their residual values, over their estimated useful lives using the straight-line method.

The estimated useful lives are as follows:

Leasehold improvements - 10 years

Plant and machinery - 10 years

Motor vehicles - 5 years

Office equipment - 5 years

The assets’ residual values, useful lives, and depreciation methods are reviewed and adjusted prospectively, if appropriate, where there is an indication of a significant change since the last reporting date.

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

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its net realisable value. The impairment loss is recognised immediately in profit or loss.

Financial instruments

The Company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ 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 trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Company’s cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date.

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows of the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reversed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

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

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at the transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they are presented as non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as part of a documented risk management or investment strategy.

Derecognition of financial assets

Financial assets are derecognised when their contractual rights to the cash flows expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:

- The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

- Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Going concern

The financial statements have been prepared on a going concern basis. The directors have considered relevant information, including future cash flows and the impact of subsequent events, in making their assessment.

Since the year end, there has been increased confidence in the UK construction marketplace. A commitment by the government to build houses has helped strengthen this confidence and is expected to boost the construction industry. This is positive news for all parties involved in supplying equipment for these new builds and is expected to increase sales for the Company. Prices have been increased to a level that helps offset raw material price increases, and margins have improved during the financial year to date as a result.

The Company continues to operate within its current banking facilities, and certain directors have confirmed that they will provide additional financial support to the Company should it be required.

Historically, Euro Towers has reported healthy profits; however, performance has been affected by the rise in the cost of raw aluminium, largely driven by the war between Russia and Ukraine. The spike in aluminium prices has now peaked and is currently lower than previously experienced. The Company has secured this lower price for the next six months.

Based on these assessments, and having regard to the resources available to the entity, the directors have concluded that there is no material uncertainty over the future of the Company and that it is appropriate to continue to adopt the going concern basis in preparing the annual report and accounts.

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.

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company’s cash management.

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.

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.

Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.

Increases in provisions are generally charged as an expense to profit or loss.