Photomec (London) Limited

It is the directors policy to maintain stocks of raw materials for several years as the company is the only supplier of spare parts for their machines.

Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads. Work-in-progress is reflected in the accounts on a contract by contract basis by recording turnover and related costs as contract activity progresses.It is the directors policy to maintain stocks of raw materials for several years as the company is the only supplier of spare parts for their machines.

The company manufactures specialist machines and it is the policy of the directors to build the machines and then to modify them in respect of specific orders. Additionally, old machines are returned to the company and reused for parts. Thus it is the directors policy to hold work in progress and finished goods for sseveral years as this stock can be sold in different forms. The directors consider that these stocks will maintain their value over time.