REGISTERED NUMBER: NI668323 (Northern Ireland)

SWIFTS RETAIL HOLDING LTD

Group Strategic Report, Directors' Report and

Consolidated Financial Statements for the Year Ended 31 January 2026

Page

Company Information

1

Group Strategic Report

2

Directors' Report

4

Independent Auditors' Report

6

Consolidated Income Statement

10

Consolidated Statement of Financial Position

11

Company Statement of Financial Position

12

Consolidated Statement of Changes in Equity

13

Company Statement of Changes in Equity

14

Consolidated Statement of Cash Flows

15

Notes to the Consolidated Statement of Cash Flows

16

Notes to the Consolidated Financial Statements

18

DIRECTORS:

Ms Sandra Swift

Mr Stephen Swift

REGISTERED OFFICE:

31-33 Main Street

Lisnaskea

Co. Fermanagh

BT92 0JB

REGISTERED NUMBER:

NI668323 (Northern Ireland)

INDEPENDENT AUDITORS:

Cooper Parry Audit (Ireland) Limited

Statutory Auditor

Unit 7 Dyehouse

Linen Green

Dungannon

Co. Tyrone

BT71 7HB

BANKERS:

Ulster Bank Limited

186 Main Street

Lisnaskea

Fermanagh

BT92 0JF

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

REVIEW OF BUSINESS

The principal activity of the group is retail of non-specialist food, beverages, tobacco and alcohol in

commercial premises.

Swifts Retail Holding Limited ("the group") continues to deliver a strong trading performance in respect of the year ended 31 January 2026 and the business remains in a sound financial position at the year end.The group returned a profit for the financial year of £159,328 (2025: £1,511,178) on a turnover base of £17,256,548 (2025: £17,923,465). The group has net assets of £4,025,852 (2025 : £3,866,524). The directors consider the results for the year to be satisfactory.

FINANCIAL KEY PERFORMANCE INDICATORS

The directors consider the key performance indicators are those that communicate the financial performance and strengths as a whole, being revenue, gross profit margin and operating profit.

The directors have provided an analysis of the key performance indicators of the business below. The directors continue to monitor revenue and costs to ensure the group remains profitable. The group continues to maintain a strong net asset position.

2026

2025

Revenue

£17,256,548

£17,923,465

Gross profit margin

18%

21%

Operating profit

420,710

1,779,141

PRINCIPAL RISKS AND UNCERTAINTIES

The main risks from the group's operations are business interruption, customer proposition, food and product safety and financial risk. The directors review and agree policies for managing each of these risks and they are summarised below.

Business Interruption

Distribution and systems infrastructures are fundamental to ensuring the normal continuity of trading in the stores. If an accident occurred to this infrastructure or another key facility, this could have a detrimental impact on the group's ability to operate effectively.

Customer proposition

The group operates in a very competitive industry. Customer shopping habits are influenced by broader economic factors that the business does not control. If the group fail to keep its proposition aligned with customers' expectations, then they may choose not to shop with us and sales will suffer.

Food and product safety

The directors are aware that, if the group fails to deliver excellent standards of hygiene and safety in its products, there is a potential to harm customers and damage business reputation. Food safety is of paramount importance.

Financial Risk

The group has exposure to financial risks through interest rates applied to its bank borrowings. These risks are managed by budgetary control and maintaining a close working relationship with its bankers.

STRATEGY & DEVELOPMENT

The group's success is dependant on the ongoing management of business risks and uncertainties it faces. The group will continue to improve upon its position and concentrate on achieving maximum growth in its market sector while at the same time continuing to improve efficiency in all areas of its operations.

BUSINESS ENVIRONMENT

The local supermarket retailing market is highly saturated with multiple large supermarkets operating in the surrounding area as well as independent retailers. The group is performing well and returns strong results despite operating in a saturated market.

EMPLOYEES

The group's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.

Information on matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group performance.

FUTURE DEVELOPMENTS

The group is committed to long term creation of shareholder value by increasing the group's market share. The group aims to increase revenue and operating profits. The group will continue to meet the needs of customers and develop innovative solutions for their needs while remaining highly competitive.

ON BEHALF OF THE BOARD:

Ms Sandra Swift - Director

29 October 2026

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

PRINCIPAL ACTIVITY

The principal activity of the group is that of retail supermarkets and filling stations.

DIVIDENDS

Interim dividend paid during the year of £Nil (2025: £60,000). The Directors do not recommend payment of a final dividend.

DIRECTORS

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

Ms Sandra Swift

Mr Stephen Swift

POLITICAL DONATIONS AND EXPENDITURE

The Group made no political donations during the current year (2025: £Nil).

DISCLOSURE IN THE STRATEGIC REPORT

In accordance with Section 414C (11) of Companies Act 2006, the directors have elected to disclose details of the business review, principal risks and uncertainties, employment policy, future developments and financial performance indicators in the group's Strategic Report which would otherwise be required to be disclosed in the Directors' Report.

DIRECTORS' RESPONSIBILITIES STATEMENT

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Cooper Parry Audit (Ireland) Limited, have indicated their willingness to continue in office in accordance with the provision of Section 485 of the Companies Act 2006.

ON BEHALF OF THE BOARD:

Ms Sandra Swift - Director

29 October 2026

Opinion

We have audited the financial statements of Swifts Retail Holding Ltd (the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 31 January 2026 which comprise the Consolidated Income Statement, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated 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 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 Directors' Report, but does not include the financial statements and our Auditors' Report 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the 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 Directors' Report.

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

-	adequate accounting records have not been kept 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 Directors' Responsibilities Statement 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 an Auditors' Report 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:

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. The objectives of our audit in respect of fraud are to assess the risk of material misstatement due to fraud, design and implement appropriate responses to those assessed risks and to respond appropriately to instances of fraud or suspected fraud identified during the course of our audit. However, the primary responsibility for the prevention and detection of fraud rests with management and those charged with governance of the company.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

-

We obtained understanding of the legal and regulatory requirements applicable to the company’s financial statements and considered the most significant are the Companies Act 2006, Financial Reporting Standards (FRS102) and UK taxation legislation;

-

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

-

We enquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations;

-

Understanding the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations; and

-

Discussions amongst the audit engagement team regarding how fraud might occur in the financial statements and any potential indicators of fraud. As part of this discussion we identified the following potential areas where fraud may occur: timing of revenue recognition and management override.

The audit response to risks identified included:

-

Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the relevant laws and regulations above;

-

Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risk of material misstatement due to fraud;

In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether the judgements made in making accounting estimates are reasonable and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

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 Auditors' Report.

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 an Auditors' Report 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.

Mr. Desmond Kelly (F.C.A) (Senior Statutory Auditor)

for and on behalf of Cooper Parry Audit (Ireland) Limited

Statutory Auditor

Unit 7 Dyehouse

Linen Green

Dungannon

Co. Tyrone

BT71 7HB

30 October 2026

TURNOVER

4

17,256,548

17,923,465

Cost of sales

(14,097,681

)

(14,180,324

)

GROSS PROFIT

3,158,867

3,743,141

Administrative expenses

(2,830,570

)

(3,328,827

)

328,297

414,314

Other operating income

92,413

1,364,827

OPERATING PROFIT

6

420,710

1,779,141

Finance income

-

680

420,710

1,779,821

Finance costs

8

(155,704

)

(259,476

)

PROFIT BEFORE TAXATION

265,006

1,520,345

Tax on profit

9

(105,678

)

(9,167

)

PROFIT FOR THE FINANCIAL YEAR

159,328

1,511,178

OTHER COMPREHENSIVE INCOME

-

(234,193

)

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

-

(234,193

)

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

159,328

1,276,985

Profit attributable to:

Owners of the parent

159,328

1,511,178

Total comprehensive income attributable to:

Owners of the parent

159,328

1,276,985

NON-CURRENT ASSETS

Intangible assets

12

525,000

587,500

Tangible assets

13

5,277,239

4,579,821

Investments

14

-

-

5,802,239

5,167,321

CURRENT ASSETS

Stocks

15

539,789

584,648

Receivables: amounts falling due within one year

16

63,401

60,659

Cash at bank and in hand

2,093,784

2,306,211

2,696,974

2,951,518

PAYABLES

Amounts falling due within one year

17

(1,901,027

)

(1,615,674

)

NET CURRENT ASSETS

795,947

1,335,844

TOTAL ASSETS LESS CURRENT LIABILITIES

6,598,186

6,503,165

PAYABLES

Amounts falling due after more than one year

18

(2,271,631

)

(2,295,435

)

PROVISIONS FOR LIABILITIES

21

(75,360

)

(62,839

)

DEFERRED INCOME

22

(225,343

)

(278,367

)

NET ASSETS

4,025,852

3,866,524

CAPITAL AND RESERVES

Called up share capital

23

105,300

105,300

Revaluation reserve

24

289,059

289,059

Retained earnings

24

3,631,493

3,472,165

SHAREHOLDERS' FUNDS

4,025,852

3,866,524

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:

Ms Sandra Swift - Director

NON-CURRENT ASSETS

Intangible assets

12

-

-

Tangible assets

13

743,601

-

Investments

14

605,300

605,300

1,348,901

605,300

CURRENT ASSETS

Receivables: amounts falling due within one year

16

556,049

1,308,499

Cash in hand

100

100

TOTAL ASSETS LESS CURRENT LIABILITIES

1,905,050

1,913,899

CAPITAL AND RESERVES

Called up share capital

23

105,300

105,300

Retained earnings

24

1,799,750

1,808,599

SHAREHOLDERS' FUNDS

1,905,050

1,913,899

Company's (loss)/profit for the financial year

(8,849

)

1,714,599

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:

Ms Sandra Swift - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 February 2024

105,300

2,020,987

523,252

2,649,539

Changes in equity

Dividends

-

(60,000

)

-

(60,000

)

Total comprehensive income

-

1,511,178

(234,193

)

1,276,985

Balance at 31 January 2025

105,300

3,472,165

289,059

3,866,524

Changes in equity

Total comprehensive income

-

159,328

-

159,328

Balance at 31 January 2026

105,300

3,631,493

289,059

4,025,852

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 February 2024

105,300

154,000

259,300

Changes in equity

Dividends

-

(60,000

)

(60,000

)

Total comprehensive income

-

1,714,599

1,714,599

Balance at 31 January 2025

105,300

1,808,599

1,913,899

Changes in equity

Total comprehensive income

-

(8,849

)

(8,849

)

Balance at 31 January 2026

105,300

1,799,750

1,905,050

Cash flows from operating activities

Cash generated from operations

1

1,102,491

752,260

Interest paid

(155,704

)

(259,476

)

Tax paid

(33,531

)

(139,916

)

Net cash from operating activities

913,256

352,868

Cash flows from investing activities

Purchase of tangible fixed assets

(880,960

)

(361,588

)

Sale of fixed asset investments

-

1,921,391

Cash eliminated on disposal

-

(163,946

)

Interest received

-

680

Net cash from investing activities

(880,960

)

1,396,537

Cash flows from financing activities

Loan repayments in year

(192,118

)

(262,295

)

Capital repayments in year

-

(6,499

)

Amount withdrawn by directors

(52,605

)

-

Equity dividends paid

-

(60,000

)

Net cash from financing activities

(244,723

)

(328,794

)

(Decrease)/increase in cash and cash equivalents

(212,427

)

1,420,611

Cash and cash equivalents at beginning of year

2

2,306,211

885,600

Cash and cash equivalents at end of year

2

2,093,784

2,306,211

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

2026

2025

£

£

Profit before taxation

265,006

1,520,345

Depreciation charges

183,542

191,387

Profit on disposal of subsidiary

-

(1,266,879

)

Movement in deferred income

(53,024

)

(53,024

)

Amortisation

62,500

62,500

Government grants

(12,000

)

-

Finance costs

155,704

259,476

Finance income

-

(680

)

601,728

713,125

Decrease in stocks

44,859

21,226

(Increase)/decrease in trade and other debtors

(2,742

)

126,409

Increase/(decrease) in trade and other creditors

458,646

(108,500

)

Cash generated from operations

1,102,491

752,260

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 January 2026

31/1/26

1/2/25

£

£

Cash and cash equivalents

2,093,784

2,306,211

Year ended 31 January 2025

31/1/25

1/2/24

£

£

Cash and cash equivalents

2,306,211

886,370

Bank overdrafts

-

(770

)

2,306,211

885,600

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1/2/25

Cash flow

At 31/1/26

£

£

£

Net cash

Cash at bank and in hand

2,306,211

(212,427

)

2,093,784

2,306,211

(212,427

)

2,093,784

Debt

Debts falling due within 1 year

(361,512

)

180,314

(181,198

)

Debts falling due after 1 year

(2,271,435

)

11,804

(2,259,631

)

(2,632,947

)

192,118

(2,440,829

)

Total

(326,736

)

(20,309

)

(347,045

)

1.	STATUTORY INFORMATION

Swifts Retail Holding Ltd is a private company, limited by shares , registered in Northern Ireland. The company's registered number and registered office address can be found on the General Information page.

2.	STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements are stated in sterling which is the functional currency of the company.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared on a going concern basis under the historical cost convention . Historical cost is generally based on the fair value of consideration given in exchange for assets. The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the group financial statements.

Basis of consolidation

The group financial statements consolidate the financial statements of its subsidiary undertakings drawn up to 31 January each year. Consistent accounting policies are applied across companies within the group. The results of subsidiary undertakings sold or acquired are included in the consolidated income statement up to or from the date control passes. Intra-group sales, profits and balances are eliminated fully on consolidation. No income statement is presented for Swifts Retail Holding Ltd as permitted by section 408 of the Companies Act 2006.

Significant judgements and estimates

The preparation of the financial statements in accordance with generally accepted accounting principles requires management to make estimates, judgements and assumptions that affect the reported amounts of assets and liabilities, income and expenditure in the reporting period. Actual results could differ from those estimates. Therefore, management believe the critical accounting policies where estimates, judgements and assumptions are necessarily applied are summarised below:

Critical accounting judgements and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experiences and

other factors, including expectations of future events that are believed to be reasonable under the

circumstances.

a) Critical judgements in applying the entity's accounting policies

There are no critical judgements in applying the entity's accounting policies.

b) Key accounting estimates and assumptions

There are no critical accounting estimates and assumptions

Revenue

Revenue is recognised to the extent that is probable that the economic benefits will flow to the group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must 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 group has transferred the significant risks and rewards of ownership to the buyer;

- the group 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 group 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.

Goodwill

Goodwill represents the difference between the cost of a business combination and the company's interest in the fair value of the identifiable assets and liabilities of the acquiree at the acquisition date. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses (which are not reversed). Goodwill can be subsequently adjusted for changes to estimates of contingent considerations given in a business combination.

Goodwill is amortised on a straight-line basis over its useful economic life. This is assessed individually for each acquisition taking into account the period over which the company expects to realise the synergies from the combination. The useful life of goodwill on the balance sheet has been set to ten years.

Intangible assets

Liquor licences are recognised initially at cost and subsequently measured at cost less any accumulated impairment losses. The directors consider the liquor licence to have an indefinite useful economic life as there is no foreseeable limit to the period over which the asset is expected to generate economic benefits for the company.

The licence is therefore not amortised but is reviewed annually for indicators of impairment and tested for impairment whenever events or changes in circumstances indicate that its carrying value may not be recoverable. Where the recoverable amount of the licence is less than its carrying value, an impairment loss is recognised in the profit and loss account.

In assessing the useful economic life of the licence, the directors have considered the existence of an active market for liquor licences in Northern Ireland and the fact that such licences do not generally diminish in value over time, provided the licence remains valid and there are no indicators of impairment.

Property, plant and equipment

Property, plant and equipment are stated at cost less accumulated depreciation. 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.

The charge to depreciation is calculated to write off the original cost or valuation of property, plant and equipment, at the rates detailed below:

Freehold property

- 2% Straight Line

Plant and machinery

- 20% & 15% Reducing Balance

Fixtures, fittings and equipment

- 20% & 15% Reducing Balance

Motor vehicles

- 25% & 15% Reducing Balance

The carrying values of property, plant and equipment are reviewed annually for impairment in periods if events or changes in circumstances indicate the carrying value may not be recoverable.