OCU Group Limited - Limited company accounts 20.1

REGISTERED NUMBER: 09307607

Group Strategic Report, Directors' Report and

Consolidated Financial Statements for the Year Ended 30 April 2020

for

OCU Group Limited

Page

Company Information

1

Group Strategic Report

2

Directors' Report

4

Directors' Responsibilities Statement

5

Independent Auditors' Report

6

Consolidated Statement of Comprehensive Income

9

Consolidated Balance Sheet

10

Company Balance Sheet

11

Consolidated Statement of Changes in Equity

12

Company Statement of Changes in Equity

13

Consolidated Cash Flow Statement

14

Notes to the Consolidated Cash Flow Statement

15

Notes to the Consolidated Financial Statements

17

DIRECTORS:

T G O'Connor

T J O'Connor

Mrs S O'Connor

Mrs C O'Connor

REGISTERED OFFICE:

164 Field End Road

Eastcote

Middlesex

HA5 1RH

REGISTERED NUMBER:

09307607

AUDITORS:

Moore Kingston Smith LLP

The Shipping Building

The Old Vinyl Factory

Blyth Road

Hayes

London

UB3 1HA

Fair review of the business

The directors were pleased with the results for the year and are optimistic about the long-term prospects for continued

growth of the group.

Risk management

The group's strategy is to follow an appropriate risk policy, which effectively manages exposures related to the

achievement of business objectives. The key risks which management face are detailed as follows:

Business performance risk

Business performance risk is the risk that the group may not perform as expected either due to internal factors or due to

competitive pressures in the markets in which they operate. The risk is managed through a number of measures:

authorisation of forward purchases requirements; ensuring the appropriate management team is in place; budget and

business planning; monthly reporting and variance analysis; financial controls; key performance indicators; and regular

forecasting, in conjunction with an internal compliance function.

Business continuity risk

While there is a reliance on physical infrastructure, the group operates out of a number of depots which helps the group

to minimise the business continuity risk. The group ensures that there is sufficient IT support available should an

unforeseen event occur. Management are continually implementing and reviewing business continuity and IT disaster

recovery plans to ensure any increase in risk arising from future activities is managed.

Health and safety risk

The group is committed to ensuring a safe working environment. These risks are managed by the group through strong

promotion of health and safety culture and well defined health and safety policies, facilitated by the employment of a

health and safety professional.

Liquidity risk

Available cash headroom is monitored by management on a daily basis and regular discussions take place with the

group's bankers as a way of managing the group's liquidity risk. Stock and trade debtor levels are monitored periodically

by the board of directors.

Credit risk

Credit risk arises principally on third party revenues. Group policy is aimed at minimising such risk, and requires that

deferred terms are granted to customers who demonstrate an appropriate payment history and satisfy creditworthiness

procedures. Individual exposures are monitored with customers subject to credit limits to ensure the group's exposure to

bad debts is not significant.

Price risk

The group is exposed to materials and associated costs fluctuation price risk on projects.

Management development risk

Long-term growth of the business depends on the group's ability to retain and attract personnel of high quality. The risk

is managed through development plans which are regularly reviewed and updated. These are accompanied by specific

policies in areas such as training, management development and performance management.

Covid-19 pandemic risk

The directors have considered the potential impact of the coronavirus, and the various measures taken to contain it, on

the operations of the group. They note that the impact on the group's profitability and cash generation since the start of

the pandemic has been limited, therefore the directors consider the risks to the group's operations to be limited.

Financial and business control

Strong financial and business controls are necessary to ensure the integrity and reliability of financial and other

information on which the group relies for day-to-day operations, external reporting and for long term planning. The

group exercises financial and business control through a combination of qualified and experienced financial personnel;

performance analysis; budgeting and cash flow forecasting; and clearly defined approval limits, supported by integrated

and proven systems.

Social, ethical and environmental risk

Due to the group's nature and size no significant social, ethical or environmental risks have been identified by

management.

Future developments

The group continues to grow at a planned rate and will continue to develop new contracts in the foreseeable future.

Financial Performance

The directors have determined that the following financial key performance indicators (KPI) are the most effective

measure of progress towards achieving the group's objectives:

KPI's

30 April 2020

30 April 2019

Turnover

206,083,911

150,498,406

Gross Profit

36,499,854

24,602,281

Profit Before Tax

18,348,505

12,280,551

The group has performed well during the year with the gross profit margin remaining steady and in line with the previous

year at 17.7% (2019: 16.3%) and the net profit margin remaining steady and in line with the previous year at 8.9%

(2019: 8.2%), in trading activities.

Earnings before interest, taxation, depreciation and amortisation (EBITDA) amounted to £22,980,538 (2019:

£16,078,427).

ON BEHALF OF THE BOARD:

T G O'Connor - Director

28 January 2021

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

30 April 2020.

PRINCIPAL ACTIVITY

The principle activity of the group continued to be that of cable installations and ancillary services.

DIVIDENDS

No dividends will be distributed for the year ended 30 April 2020.

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 May 2019 to the date of this report.

T G O'Connor

T J O'Connor

Mrs S O'Connor

Mrs C O'Connor

RESULTS

The results for the year are set out on page 9.

Auditor

The auditor, Moore Kingston Smith LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

STRATEGIC REPORT

The group has chosen in accordance with Companies Act 2006, s.414C(11) to set out in the group's strategic report

information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008,

Sch. 7 to be contained in the directors' report. It has done so in respect of future developments and exposure to liquidity,

credit and price risk.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act

2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have

taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the

group's auditors are aware of that information.

ON BEHALF OF THE BOARD:

T G O'Connor - Director

28 January 2021

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). Under company law the directors must not

approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the

company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the

directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the

company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the

company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006.

They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable

steps for the prevention and detection of fraud and other irregularities.

Opinion

We have audited the financial statements of OCU Group Limited (the 'parent company') and its subsidiaries (the 'group')

for the year ended 30 April 2020 which comprise the Consolidated Statement of Comprehensive Income, Consolidated

Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes

in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the

Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has

been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial

Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United

Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 30 April 2020 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to

you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the group's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information in the Group

Strategic Report, the Directors' Report and the Directors' Responsibilities Statement, 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 there is a material misstatement in the financial

statements or a material misstatement of the other information. 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.

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 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 Directors' Responsibilities Statement set out on page five, 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.

As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional

scepticism throughout the audit. We also:

-

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

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

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

-

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

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

-	Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express and opinion on the consolidated financial statements.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of

the audit and significant audit findings, including any significant deficiencies in internal control that we identify during

our audit.

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.

Mahmood Ramji (Senior Statutory Auditor)

for and on behalf of Moore Kingston Smith LLP

The Shipping Building

The Old Vinyl Factory

Blyth Road

Hayes

London

UB3 1HA

29 January 2021

TURNOVER

3

206,083,911

150,498,406

Cost of sales

169,584,057

125,896,125

GROSS PROFIT

36,499,854

24,602,281

Administrative expenses

18,289,839

12,430,224

18,210,015

12,172,057

Other operating income

391,110

394,603

OPERATING PROFIT

5

18,601,125

12,566,660

Interest receivable and similar income

7

162,278

32,153

18,763,403

12,598,813

Interest payable and similar expenses

8

414,898

318,262

PROFIT BEFORE TAXATION

18,348,505

12,280,551

Tax on profit

9

3,474,492

2,329,913

PROFIT FOR THE FINANCIAL YEAR

14,874,013

9,950,638

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

14,874,013

9,950,638

Profit attributable to:

Owners of the parent

14,874,013

9,950,638

Total comprehensive income attributable to:

Owners of the parent

14,874,013

9,950,638

FIXED ASSETS

Tangible assets

11

26,818,392

21,143,225

Investments

12

-

-

Investment property

13

2,200,000

2,200,000

29,018,392

23,343,225

CURRENT ASSETS

Stocks

14

49,000

49,000

Debtors

15

56,722,421

49,607,741

Cash at bank and in hand

27,960,496

13,497,435

84,731,917

63,154,176

CREDITORS

Amounts falling due within one year

16

43,738,760

29,175,324

NET CURRENT ASSETS

40,993,157

33,978,852

TOTAL ASSETS LESS CURRENT LIABILITIES

70,011,549

57,322,077

CREDITORS

Amounts falling due after more than one year

17

(3,254,940

)

(5,510,809

)

PROVISIONS FOR LIABILITIES

21

(503,929

)

(432,601

)

NET ASSETS

66,252,680

51,378,667

CAPITAL AND RESERVES

Called up share capital

22

100,000

100,000

Revaluation reserve

351,902

351,902

Retained earnings

65,800,778

50,926,765

SHAREHOLDERS' FUNDS

66,252,680

51,378,667

The financial statements were approved by the Board of Directors and authorised for issue on 28 January 2021 and were

signed on its behalf by:

T G O'Connor - Director

FIXED ASSETS

Tangible assets

11

-

-

Investments

12

250,300

250,300

Investment property

13

-

-

250,300

250,300

CURRENT ASSETS

Cash at bank

1,000

1,000

CREDITORS

Amounts falling due within one year

16

151,300

151,300

NET CURRENT LIABILITIES

(150,300

)

(150,300

)

TOTAL ASSETS LESS CURRENT LIABILITIES

100,000

100,000

CAPITAL AND RESERVES

Called up share capital

22

100,000

100,000

SHAREHOLDERS' FUNDS

100,000

100,000

Company's profit for the financial year

-

-

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Directors and authorised for issue on 28 January 2021 and were signed on its behalf by:

T G O'Connor - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 May 2018

100,000

40,976,127

351,902

41,428,029

Changes in equity

Total comprehensive income

-

9,950,638

-

9,950,638

Balance at 30 April 2019

100,000

50,926,765

351,902

51,378,667

Changes in equity

Total comprehensive income

-

14,874,013

-

14,874,013

Balance at 30 April 2020

100,000

65,800,778

351,902

66,252,680

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 May 2018

100,000

-

100,000

Changes in equity

Balance at 30 April 2019

100,000

-

100,000

Changes in equity

Balance at 30 April 2020

100,000

-

100,000

Cash flows from operating activities

Cash generated from operations

1

27,209,248

12,098,456

Interest paid

(234,794

)

(150,144

)

Interest element of hire purchase payments paid

(180,104

)

(168,118

)

Tax paid

(2,957,420

)

(2,788,291

)

Net cash from operating activities

23,836,930

8,991,903

Cash flows from investing activities

Purchase of tangible fixed assets

(8,691,228

)

(3,859,685

)

Sale of tangible fixed assets

396,605

1,095,000

Interest received

162,278

32,153

Net cash from investing activities

(8,132,345

)

(2,732,532

)

Cash flows from financing activities

Loan repayments in year

(545,525

)

(460,531

)

Capital repayments in year

(695,999

)

(858,958

)

Net cash from financing activities

(1,241,524

)

(1,319,489

)

Increase in cash and cash equivalents

14,463,061

4,939,882

Cash and cash equivalents at beginning of year

2

13,497,435

8,557,553

Cash and cash equivalents at end of year

2

27,960,496

13,497,435

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

30.4.20

30.4.19

£

£

Profit before taxation

18,348,505

12,280,551

Depreciation charges

4,379,413

3,511,767

Profit on disposal of fixed assets

(112,711

)

(582,019

)

Other provisions

-

340,000

Finance costs

414,898

318,262

Finance income

(162,278

)

(32,153

)

22,867,827

15,836,408

Increase in trade and other debtors

(7,114,680

)

(9,448,540

)

Increase in trade and other creditors

11,456,101

5,710,588

Cash generated from operations

27,209,248

12,098,456

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 30 April 2020

30.4.20

1.5.19

£

£

Cash and cash equivalents

27,960,496

13,497,435

Year ended 30 April 2019

30.4.19

1.5.18

£

£

Cash and cash equivalents

13,497,435

8,557,553

3.	ANALYSIS OF CHANGES IN NET FUNDS

Other

non-cash

At 1.5.19

Cash flow

changes

At 30.4.20

£

£

£

£

Net cash

Cash at bank

and in hand

13,497,435

14,463,061

27,960,496

13,497,435

14,463,061

27,960,496

Debt

Finance leases

(3,893,340

)

695,999

-

(4,844,587

)

Debts falling due

within 1 year

(454,735

)

(2,421,705

)

-

(2,876,440

)

Debts falling due

after 1 year

(4,159,625

)

2,967,230

-

(1,192,395

)

(8,507,700

)

1,241,524

-

(8,913,422

)

Total

4,989,735

15,704,585

-

19,047,074

1.	ACCOUNTING POLICIES

Company information

OCU Group Limited is a private limited company limited by shares domiciled and incorporated in England and

Wales. The registered office is 164 Field End Road, Eastcote, Middlesex, HA5 1RH.

Accounting convention

These financial statements have been prepared in accordance with FRS 102 "The Financial Reporting Standard

applicable in the UK and Republic of Ireland" ("FRS 102") and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the group. Monetary

amounts in these financial statements are rounded to the nearest pound.

The financial statements have been prepared on the historical cost convention modified by the recognition of

investment property measured at fair value. The principal accounting policies adopted are set out below.

Basis of Consolidation

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition

date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly

attributable to the business combination. The excess of the cost of a business combination over the fair value of

the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the

combination includes the estimated amount of contingent consideration that is probable and can be measured

reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values

recognised for business combinations in previous periods are adjusted retrospectively for final fair values

determined in the 12 months following the acquisition date. Investments in subsidiaries are accounted for at cost

less impairment.

The consolidated financial statements incorporate those of OCU Group Limited and all of its subsidiaries (i.e.

entities that the Group controls through its power to govern the financial and operating policies so as to obtain

economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their

results are incorporated from the date that control passes.

All financial statements are made up to 30 April 2020. Instalcom Limited has extended its year end from 28

February to 30 April and hence has a 14 month accounting period. Where necessary, adjustments are made to the

financial statements of subsidiaries to bring the accounting policies used into line with those used by other

members of the group.

All intra-group transactions, balances and unrealised gains on transactions between group companies are

eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an

impairment of the asset transferred.

Note that O'Connor HDD Limited and O'Connor Property Estates Limited were exempt from audit by virtue of

Section 479A of Companies Act 2006.

Going concern

The group has been profitable and cash generative during the year ended 30 April 2020 and during the period to

approval of these financial statements. The group also has a strong balance sheet and cash position. The directors

have also considered the impact of the COVID-19 pandemic and related containment measures on the group

activities and whilst the ultimate impact cannot be quantified, the impact on operations to date has not been

significant and the directors do not expect it to become significant in the foreseeable future. As a result, the

directors have, at the time of approving the financial statements, a reasonable expectation that the group has

adequate resources to continue in operational existence for at least 12 months from the date of approval of these

financial statements. Thus they continue to adopt the going concern basis of accounting in preparing the financial

statements.

Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services

provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value

of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from contracts for the provision of professional services is recognised by reference to the value of work

completed, which is assessed by quantity surveyors and agreed with the customer. At period ends, income is

accrued or deferred accordingly. Costs incurred to date are also recognised as incurred and accrued as

appropriate to match the recognition of revenue.

Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of

depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their

useful lives on the following bases:

Freehold land and buildings

-

2% and 10% on cost

Short leasehold

-

10% on cost

Plant and machinery

-

33% on reducing balance, 25% on reducing balance and 2% on cost

Fixtures and fittings

-

33% on reducing balance, 25% on reducing balance

Motor vehicles

-

25% on reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and

the carrying value of the asset, as is recognised in the profit and loss account.

Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised

at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at

fair value at the reporting end date. The surplus or deficit on revaluation is recognised in the profit and loss

account.

Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are

not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less

impairment until a reliable measure of fair value becomes available.

In the parent company financial statements, investments in subsidiaries are initially measured at cost and

subsequently measured at cost less any accumulated impairment losses

Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to

determine whether there is any indication that those assets have suffered an impairment loss. If any such

indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the

impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the

company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow

moving items.

Cash at bank and in hand

Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks,

other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank

overdrafts are shown within borrowings in current liabilities.