Corriewood Holdings Limited - Limited company accounts 20.1

REGISTERED NUMBER: NI639214 (Northern Ireland)

CORRIEWOOD HOLDINGS LIMITED

GROUP STRATEGIC REPORT, DIRECTORS' REPORT AND

CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2021

Page

Company Information

1

Group Strategic Report

2

Directors' Report

3

Independent Auditors' Report

5

Consolidated Income Statement

9

Consolidated Statement of Financial Position

10

Company Statement of Financial Position

11

Consolidated Statement of Changes in Equity

12

Company Statement of Changes in Equity

13

Consolidated Statement of Cash Flows

14

Notes to the Consolidated Statement of Cash Flows

15

Notes to the Consolidated Financial Statements

16

DIRECTORS:

Ann Monica Byrne

Mary Imelda McGrady

Steven Close

Maria Therese McGrady

Aisling Louise Byrne

Shauna Margaret Byrne

REGISTERED OFFICE:

1 Drumbuck Road

Castlewellan

BT31 9NG

REGISTERED NUMBER:

NI639214 (Northern Ireland)

INDEPENDENT AUDITORS:

CavanaghKelly

Chartered Accountants and Statutory Auditors

36-38 Northland Row

Dungannon

Co. Tyrone

BT71 6AP

PRINCIPAL ACTIVITY

The principal activity of the group is the provision of healthcare services including domiciliary care, nursing/residential homes and specialist care facilities.

PRINCIPAL RISKS AND UNCERTAINTIES

Partnerships with Health and Social Care Trusts

The Health and Social Care Trusts in Northern Ireland rely on the private sector to provide nursing, residential and specialist care. The group, in turn, relies on the Trusts to place residents into its care, however as with all other public bodies, they are under pressure to reduce their costs which could have an impact on the group.

Availability of quality nursing staff

The group relies on the provision of well trained staff being available, especially from the nursing sector. At present there is a shortage of nurses within the UK and as such nursing costs are expected to continue to rise.

Covid-19

The Director's are conscious that the impact of Covid-19 may continue to pose a risk to operations. They have continued to manage the company very closely, including revising forecasts and budgets for the next 12 months. The Directors will continue to ensure Covid safe working practices are in place and adhered to. At the forefront of the Covid-19 policy is the well-being of our staff, patients and their families. We have invested in various measures to ensure that patients can safely see their family, whilst adhering to all necessary social distancing measures.

KEY PERFORMANCE INDICATORS

The group uses the following key performance indicators to monitor the performance of the business.

2021

2020

Turnover

12,645,032

12,542,839

Operating profit

366,311

599,572

Pre tax profit

80,125

254,119

The directors are satisfied with the results for the year and believe the group is in a strong position to continue its performance.

FUTURE DEVELOPMENTS

The directors have no plans to change the operations of the group for the foreseeable future and will look to increase profits in the coming year as the business emerges from the impact of the coronavirus pandemic.

ON BEHALF OF THE BOARD:

Steven Close - Director

31 August 2022

The directors present their report with the financial statements of the Company and the Group for the year ended 30 November 2021.

PRINCIPAL ACTIVITY

The principal activity of the group is the provision of healthcare services including domiciliary care, nursing/residential homes and specialist care facilities.

DIVIDENDS

No dividends will be distributed for the year ended 30 November 2021.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 December 2020 to the date of this report.

Ann Monica Byrne

Mary Imelda McGrady

Other changes in directors holding office are as follows:

Steven Close , Maria Therese McGrady , Aisling Louise Byrne and Shauna Margaret Byrne were appointed as directors after 30 November 2021 but prior to the date of this report.

EMPLOYMENT OF DISABLED PERSONS

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

EMPLOYEE INVOLVEMENT

During the year, the policy of providing employees with information about the group has continued to be through internal communication methods.

EVENTS AFTER THE END OF THE REPORTING PERIOD

No post balance sheet events require disclosure in the financial statements

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The group's operations expose it to a variety of financial risks that include the effects of changes in credit risk, liquidity risk and interest rate risk. The group has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the group by monitoring levels of debt finance and the related finance costs.

Given the size of the group, the directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the board. The policies set by the director are implemented by the group's finance department.

INTEREST RATE RISK

The group has both interest bearing assets and interest bearing liabilities, which bear interest at variable rates. The director will revisit the appropriateness of this policy should the group's operations change in size or nature.

CREDIT RISK

The group has no significant concentrations of credit risk and amounts shown in the balance sheet best represent the maximum credit risk exposure.

LIQUIDITY RISK

The group actively manages cash flows to ensure the group has sufficient available funds for operations and planned expansions.

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 she ought to have taken as a director in order to make herself aware of any relevant audit information and to establish that the Group's auditors are aware of that information.

AUDITORS

The auditors, CavanaghKelly, 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:

Steven Close - Director

31 August 2022

Opinion

We have audited the financial statements of Corriewood Holdings Limited (the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 30 November 2021 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 30 November 2021 and of the Group's 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 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.

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 CavanaghKelly

Chartered Accountants and Statutory Auditors

36-38 Northland Row

Dungannon

Co. Tyrone

BT71 6AP

31 August 2022

TURNOVER

4

12,645,032

12,542,839

Cost of sales

(9,770,450

)

(9,710,364

)

GROSS PROFIT

2,874,582

2,832,475

Administrative expenses

(3,254,905

)

(2,439,807

)

(380,323

)

392,668

Other operating income

5

746,634

206,904

OPERATING PROFIT

7

366,311

599,572

Finance income

8

69

753

366,380

600,325

Finance costs

9

(286,255

)

(346,206

)

PROFIT BEFORE TAXATION

80,125

254,119

Tax on profit

10

(264,507

)

(294,021

)

LOSS FOR THE FINANCIAL YEAR

(184,382

)

(39,902

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(184,382

)

(39,902

)

Loss attributable to:

Owners of the parent

(184,382

)

(39,902

)

Total comprehensive income attributable to:

Owners of the parent

(184,382

)

(39,902

)

NON-CURRENT ASSETS

Intangible assets

13

4,702,858

5,590,478

Tangible assets

14

11,278,963

11,723,367

Investments

15

-

-

15,981,821

17,313,845

CURRENT ASSETS

Stocks

16

1,602

2,563

Receivables: amounts falling due within one year

17

1,139,782

591,401

Cash at bank

545,538

638,402

1,686,922

1,232,366

PAYABLES

Amounts falling due within one year

18

(3,747,706

)

(3,426,357

)

NET CURRENT LIABILITIES

(2,060,784

)

(2,193,991

)

TOTAL ASSETS LESS CURRENT LIABILITIES

13,921,037

15,119,854

PAYABLES

Amounts falling due after more than one year

19

(10,117,082

)

(11,106,868

)

PROVISIONS FOR LIABILITIES

22

(62,784

)

(87,433

)

NET ASSETS

3,741,171

3,925,553

CAPITAL AND RESERVES

Called up share capital

23

4,000

4,000

Share premium

24

4,191,219

4,191,219

Retained earnings

24

(454,048

)

(269,666

)

3,741,171

3,925,553

The financial statements were approved by the Board of Directors and authorised for issue on 31 August 2022 and were signed on its behalf by:

Steven Close - Director

NON-CURRENT ASSETS

Intangible assets

13

-

-

Tangible assets

14

-

-

Investments

15

13,771,733

13,771,733

13,771,733

13,771,733

CURRENT ASSETS

Receivables: amounts falling due within one year

17

5,798,352

5,764,201

Cash at bank

-

156,305

5,798,352

5,920,506

PAYABLES

Amounts falling due within one year

18

(4,767,030

)

(4,152,245

)

NET CURRENT ASSETS

1,031,322

1,768,261

TOTAL ASSETS LESS CURRENT LIABILITIES

14,803,055

15,539,994

PAYABLES

Amounts falling due after more than one year

19

(10,015,666

)

(10,977,150

)

NET ASSETS

4,787,389

4,562,844

CAPITAL AND RESERVES

Called up share capital

23

4,000

4,000

Share premium

4,191,219

4,191,219

Retained earnings

592,170

367,625

4,787,389

4,562,844

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

224,545

(568,537

)

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 31 August 2022 and were signed on its behalf by:

Steven Close - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 December 2019

4,000

90,236

4,191,219

4,285,455

Changes in equity

Dividends

-

(320,000

)

-

(320,000

)

Total comprehensive income

-

(39,902

)

-

(39,902

)

Balance at 30 November 2020

4,000

(269,666

)

4,191,219

3,925,553

Changes in equity

Total comprehensive income

-

(184,382

)

-

(184,382

)

Balance at 30 November 2021

4,000

(454,048

)

4,191,219

3,741,171

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 December 2019

4,000

1,256,162

4,191,219

5,451,381

Changes in equity

Dividends

-

(320,000

)

-

(320,000

)

Total comprehensive income

-

(568,537

)

-

(568,537

)

Balance at 30 November 2020

4,000

367,625

4,191,219

4,562,844

Changes in equity

Total comprehensive income

-

224,545

-

224,545

Balance at 30 November 2021

4,000

592,170

4,191,219

4,787,389

Cash flows from operating activities

Cash generated from operations

1

1,600,734

2,038,581

Interest paid

(286,255

)

(346,206

)

Tax paid

(307,064

)

(169,233

)

Net cash from operating activities

1,007,415

1,523,142

Cash flows from investing activities

Purchase of tangible fixed assets

(45,096

)

(214,260

)

Purchase of fixed asset investments

-

(2,825,118

)

Sale of tangible fixed assets

-

31,895

Interest received

69

753

Net cash from investing activities

(45,027

)

(3,006,730

)

Cash flows from financing activities

New loans in year

-

1,996,107

Loan repayments in year

(920,213

)

-

Hire purchase repayments

(17,059

)

(7,543

)

Equity dividends paid

-

(320,000

)

Net cash from financing activities

(937,272

)

1,668,564

Increase in cash and cash equivalents

25,116

184,976

Cash and cash equivalents at beginning of year

2

484,084

299,108

Cash and cash equivalents at end of year

2

509,200

484,084

1.	Reconciliation of profit before taxation to cash generated from operations

2021

2020

£

£

Profit before taxation

80,125

254,119

Depreciation charges

487,438

469,603

Loss on disposal of fixed assets

-

3,760

Amortisation of intangible fixed assets

887,620

867,278

Finance costs

286,255

346,206

Finance income

(69

)

(753

)

1,741,369

1,940,213

Decrease/(increase) in stocks

961

(2,563

)

(Increase)/decrease in trade and other debtors

(548,779

)

213,194

Increase/(decrease) in trade and other creditors

407,183

(112,263

)

Cash generated from operations

1,600,734

2,038,581

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 30 November 2021

30/11/21

1/12/20

£

£

Cash and cash equivalents

545,538

638,402

Bank overdrafts

(36,338

)

(154,318

)

509,200

484,084

Year ended 30 November 2020

30/11/20

1/12/19

£

£

Cash and cash equivalents

638,402

299,108

Bank overdrafts

(154,318

)

-

484,084

299,108

3.	Analysis of changes in net debt

At 1/12/20

Cash flow

At 30/11/21

£

£

£

Net cash

Cash at bank

638,402

(92,864

)

545,538

Bank overdrafts

(154,318

)

117,980

(36,338

)

484,084

25,116

509,200

Debt

Finance leases

(21,993

)

17,059

(4,934

)

Debts falling due within 1 year

(1,168,005

)

(93,515

)

(1,261,520

)

Debts falling due after 1 year

(9,101,781

)

984,699

(8,117,082

)

(10,291,779

)

908,243

(9,383,536

)

Total

(9,807,695

)

933,359

(8,874,336

)

1.	Statutory information

Corriewood Holdings Limited 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.

3.	Accounting policies

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

The financial statements have been prepared on a going concern basis under the historical costs convention as modified by the revaluation of certain fixed assets and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise Judgment in applying the company's accounting policies. No critical judgements or critical accounting estimates have been applied to these financial statements.

Group Financial Statements

The group financial statements consolidate the financial statements of its subsidiary undertakings drawn up to 30 November 2021. (See page 24 for reference). Consistent accounting policies are applied across companies within the group. The results of subsidiary undertakings sold or acquired are included in the consolidated profit and loss account up to or from the date control passes. Intra-group sales, profits and balances are eliminated fully on consolidation. No profit and loss account is presented for Corriewood Holdings Limited as permitted by section 408 of the Companies Act 2006.

The following principal accounting policies have been applied consistently unless otherwise stated:

The Group has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

•

the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A;

•

the requirements of paragraphs 26.18(b), 26.19 to 26.21 and 26.23.

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company 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.

Provision of services:

Revenue from a contract to provide services is recognised in the period in which the services are provided. The following criteria must also be met before revenue is recognised:

- the amount of revenue can be measured reliably;

- it is probable that future economic benefits will flow through the company

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

Goodwill

Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business.

Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight-line basis over its useful life. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed ten years.

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value over the useful life of that asset as follows:

Goodwill

10% straight line

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Property, plant and equipment

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Property, plant and equipment are stated at cost or valuation less accumulated depreciation and accumulated impairment losses. Cost includes expenditure that is directly attributable to making the asset capable of operating as intended.

The charge to depreciation is calculated to write off the original cost or valuation of property, plant and equipment, less their estimated residual value, over their expected useful lives as follows:

Freehold Property

2 - 5% Straight line

Plant and Machinery

10 - 20% Reducing balance

Fixtures, fittings and equipment

10 - 25% Reducing balance

Motor vehicles

10 - 25% Reducing balance

Equipment

10 - 33% 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.