REGISTERED NUMBER: 01277185 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 29 October 2022

for

A J Charlton & Sons Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Statement of Comprehensive Income

7

Balance Sheet

9

Statement of Changes in Equity

10

Cash Flow Statement

11

Notes to the Cash Flow Statement

12

Notes to the Financial Statements

13

DIRECTORS:

A J Charlton

P J Charlton

D G Charlton

A D Charlton

M Charlton

B Halford

SECRETARY:

P J Charlton

REGISTERED OFFICE:

Sawmills

Buckland Down

Frome

Somerset

BA11 2RH

REGISTERED NUMBER:

01277185 (England and Wales)

The directors present their strategic report for the year ended 29 October 2022.

REVIEW OF BUSINESS

Compared to FY21, FY22 has been more challenging dealing with a post Covid world of demand and manufacturing. Sales were weaker generally but especially in low margin commodity products in the sawmill division. Raw material pricing continued to go through turbulent times but the company focused on trying to maintain production levels and margins.

The Board decided to adjust their strategy and alter its direction towards more added value products. Processing of round timber had become less and less economically viable, therefore it was decided to close this division and utilise the storage space to store imported timber and machining timber to our requirements using retained machinery. This improved efficiency within the joinery works and allowed expansion in the range of products sold.

PRINCIPAL RISKS AND UNCERTAINTIES

Challenging economic conditions with high inflation, rising interest rates and unprecedented utility costs remain as the principal risks and uncertainties.

FUTURE DEVELOPMENTS

The company remains focused on manufacturing high quality products and expanding its product range to meet the demands of its customers spread throughout the country.

KEY PERFORMANCE INDICATORS

The key performances indicators for the company are listed below:

Gross profit margin: 24.4% (2021: 23.5%)

Operating profit/(loss) percentage: (0.01%) (2021: 12.2%)

Stock days: 161 (2021: 114)

ON BEHALF OF THE BOARD:

P J Charlton - Secretary

22 September 2023

The directors present their report with the financial statements of the company for the year ended 29 October 2022.

DIVIDENDS

The total dividend distributions for the year ended 29 October 2022 will be £Nil (2021: £56,809).

DIRECTORS

The directors shown below have held office during the whole of the period from 30 October 2021 to the date of this report.

A J Charlton

P J Charlton

D G Charlton

A D Charlton

M Charlton

B Halford

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

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

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

ON BEHALF OF THE BOARD:

P J Charlton - Secretary

22 September 2023

Qualified opinion

We have audited the financial statements of A J Charlton & Sons Limited (the 'company') for the year ended 29 October 2022 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion, except for the possible effects of the matter described in thebasis for qualified opinion section of our report, the financial statements:

-

give a true and fair view of the state of the company's affairs as at 29 October 2022 and of its 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 qualified opinion

We did not observe the counting of the physical inventory of £2,082,105 as at 29 October 2022. We were unable to satisfy ourselves as to the inventory quantities at that date by other audit procedures. Since closing inventories enter into the determination of the financial position, financial performance and cash flows, we were unable to determine whether adjustments to the balance sheet, profit for the year and net cash flows from operating activities might be necessary. As the basis for the qualified opinion was due to a limitation in the audit's scope, it has not been practicable to quantify the potential financial effects. In addition, were any adjustments to stocks be required, the strategic report would also need to be amended.

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical

requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion.

Conclusions relating to going concern

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

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

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

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning the stock quantities of £2,082,820 held at 29 October 2022. We have concluded that where the other information refers to the stock balance or related balances such as cost of sales, it may be materially misstated for the same reason.

Qualified opinions on other matters prescribed by the Companies Act 2006

Except for the possible effects of the matter described in the basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of the audit:

-

the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-

the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

Except for the matter we described in the Basis for Qualified Opinion section of our report arising solely from the limitation on the scope of our work relating to stocks, referred to above:

-

we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and

-

we were unable to determine whether adequate accounting records have not been kept.

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:

-

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

-

the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors.

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

Based on our understanding of the Company and industry, we identified that the principal risks of non-compliance with laws and regulations related to health and safety, anti-bribery, employment law and company legislation, and we considered the extent to which non-compliance might have a material effect on the financial statements of the Company. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and taxation legislation. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to increase revenue or reduce expenditure, and management bias in accounting estimates and judgemental areas of the financial statements. Audit procedures performed by the audit engagement team included:

-

Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud;

-

Understanding of management’s internal controls designed to prevent and detect irregularities, and fraud;

-

Reviewing the Company’s legal costs to check for non-compliance with laws and regulations and fraud;

-

Reviewing Board of Directors minutes;

-

Review of tax compliance with the involvement of our tax specialists in the audit;

-

Designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing of expenses;

-

Reviewing assumptions and judgements made by management in its significant accounting estimates:

-

Testing transactions entered into outside of the normal course of the Company’s business; and

-

Identifying and testing journal entries, in particular any journal entries with fraud characteristics such as journals with round numbers.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Martin Longmore (Senior Statutory Auditor)

for and on behalf of Sumer Audit

Statutory Auditor

Chartered Accountants

County Gate

County Way

Trowbridge

Wiltshire

BA14 7FJ

22 September 2023

TURNOVER

4

8,840,225

1,109,917

9,950,142

Cost of sales

(6,918,298

)

(601,338

)

(7,519,636

)

GROSS PROFIT

1,921,927

508,579

2,430,506

Distribution costs

(66,926

)

-

(66,926

)

Administrative expenses

(1,721,664

)

(791,182

)

(2,512,846

)

133,337

(282,603

)

(149,266

)

Other operating income

133,496

13,015

146,511

OPERATING PROFIT/(LOSS)

6

266,833

(269,588

)

(2,755

)

Gain/loss on revaluation of assets

-

-

-

Interest payable and similar expenses

7

(65,825

)

-

(65,825

)

PROFIT/(LOSS) BEFORE TAXATION

201,008

(269,588

)

(68,580

)

Tax on profit/(loss)

8

70,235

-

70,235

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

271,243

(269,588

)

1,655

OTHER COMPREHENSIVE INCOME

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,655

TURNOVER

4

9,573,692

3,483,371

13,057,063

Cost of sales

(7,800,233

)

(2,182,299

)

(9,982,532

)

GROSS PROFIT

1,773,459

1,301,072

3,074,531

Distribution costs

(34,141

)

-

(34,141

)

Administrative expenses

(1,667,664

)

(1,116,261

)

(2,783,925

)

71,654

184,811

256,465

Other operating income

117,579

-

117,579

OPERATING PROFIT

6

189,233

184,811

374,044

Interest receivable and similar income

2

-

2

Gain/loss on revaluation of assets

-

-

-

Interest payable and similar expenses

7

(54,889

)

-

(54,889

)

PROFIT BEFORE TAXATION

134,346

184,811

319,157

Tax on profit

8

(73,734

)

-

(73,734

)

PROFIT FOR THE FINANCIAL YEAR

60,612

184,811

245,423

OTHER COMPREHENSIVE INCOME

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

245,423

FIXED ASSETS

Intangible assets

10

7,840

9,800

Tangible assets

11

1,473,958

1,157,748

1,481,798

1,167,548

CURRENT ASSETS

Stocks

12

2,082,820

2,177,239

Debtors

13

1,287,279

2,083,534

Cash at bank and in hand

57,320

251,529

3,427,419

4,512,302

CREDITORS

Amounts falling due within one year

14

2,560,953

3,334,803

NET CURRENT ASSETS

866,466

1,177,499

TOTAL ASSETS LESS CURRENT LIABILITIES

2,348,264

2,345,047

CREDITORS

Amounts falling due after more than one year

15

(774,295

)

(727,498

)

PROVISIONS FOR LIABILITIES

20

(28,499

)

(73,734

)

NET ASSETS

1,545,470

1,543,815

CAPITAL AND RESERVES

Called up share capital

21

200,502

200,502

Retained earnings

22

1,344,968

1,343,313

SHAREHOLDERS' FUNDS

1,545,470

1,543,815

The financial statements were approved by the Board of Directors and authorised for issue on 22 September 2023 and were signed on its behalf by:

P J Charlton - Director

B Halford - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 30 October 2020

200,502

1,154,699

1,355,201

Changes in equity

Dividends

-

(56,809

)

(56,809

)

Total comprehensive income

-

245,423

245,423

Balance at 29 October 2021

200,502

1,343,313

1,543,815

Changes in equity

Total comprehensive income

-

1,655

1,655

Balance at 29 October 2022

200,502

1,344,968

1,545,470

Cash flows from operating activities

Cash generated from operations

1

362,199

426,860

Interest paid

(44,316

)

(39,477

)

Interest element of hire purchase payments paid

(21,509

)

(15,412

)

Tax paid

-

7,040

Government Grants

3,102

42,239

Net cash from operating activities

299,476

421,250

Cash flows from investing activities

Purchase of intangible fixed assets

-

(16,800

)

Purchase of tangible fixed assets

(500,099

)

(570,444

)

Sale of tangible fixed assets

20,015

-

Interest received

-

2

Net cash from investing activities

(480,084

)

(587,242

)

Cash flows from financing activities

Loan repayments in period

(71,159

)

(317,785

)

Invoice discounting net funds in period

(187,748

)

544,424

Capital repayments on HP contracts

(150,980

)

(72,421

)

Amount introduced by directors

178,453

-

Amount withdrawn by directors

(178,453

)

-

New HP in period

396,286

93,436

Equity dividends paid

-

(56,809

)

Net cash from financing activities

(13,601

)

190,845

(Decrease)/increase in cash and cash equivalents

(194,209

)

24,853

Cash and cash equivalents at beginning of year

2

251,529

226,676

Cash and cash equivalents at end of year

2

57,320

251,529

1.	RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2022

2021

£

£

(Loss)/profit before taxation

(68,580

)

319,157

Depreciation charges

185,849

159,970

Profit on disposal of fixed assets

(20,015

)

-

Government grants

(3,102

)

(42,239

)

Finance costs

65,825

54,889

Finance income

-

(2

)

159,977

491,775

Decrease/(increase) in stocks

94,419

(109,806

)

Decrease/(increase) in trade and other debtors

821,255

(11,013

)

(Decrease)/increase in trade and other creditors

(713,452

)

55,904

Cash generated from operations

362,199

426,860

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 29 October 2022

29.10.22

30.10.21

£

£

Cash and cash equivalents

57,320

251,529

Year ended 29 October 2021

29.10.21

30.10.20

£

£

Cash and cash equivalents

251,529

226,676

3.	ANALYSIS OF CHANGES IN NET DEBT

At 30.10.21

Cash flow

At 29.10.22

£

£

£

Net cash

Cash at bank and in hand

251,529

(194,209

)

57,320

251,529

(194,209

)

57,320

Debt

Finance leases

(173,135

)

(245,306

)

(418,441

)

Debts falling due within 1 year

(360,079

)

(73,234

)

(433,313

)

Debts falling due after 1 year

(624,624

)

144,394

(480,230

)

(1,157,838

)

(174,146

)

(1,331,984

)

Total

(906,309

)

(368,355

)

(1,274,664

)

1.	STATUTORY INFORMATION

A J Charlton & Sons Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

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 principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Functional and presentation currency

The company's functional and presentation currency is Sterling (£).

Significant judgements and estimates

In the application of the company's accounting policies, management is required to make judgements,

estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

There are no key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements:

(i) Useful economic life of tangible assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimates useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.

(ii) Impairment of debtors

The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the ageing profile of debtors, relationship with the debtors and historical experience.

Turnover

Turnover is measured at the fair value of the consideration received or receivable. Turnover is reduced for customer returns, rebates or other similar allowances and is net of value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services.

Where the consideration receivable in cash or cash equivalents is deferred, and the arrangement constitutes a financing transactions, the fair value of the consideration is measured as the present value of all future receipts using the inputted rate of interest.

The company recognises revenue when the following conditions are satisfied:

Sale of goods

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

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

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

- the amount of revenue can be measured reliably;

- it is probable that the economic benefits associated with the transaction can be measured reliably.

Specifically, revenue from the sale of goods is primarily recognised on delivery of goods to the customer.

Interest receivable

Interest income is recognised using the effective interest method.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2019, is being amortised evenly over its estimated useful life of five years.

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.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Short leasehold

-

over period of lease

Long leasehold improvements

-

2% on straight line basis

Plant and machinery

-

33% on reducing balance, 15% on reducing balance and 10% on reducing balance

Motor vehicles

-

25% on reducing balance

Freehold land is not depreciated.

Tangible assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price, costs directly attributable to bringing the asset to its working condition for its intended use, dismantling and restoration costs and borrowing costs capitalised.

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.

Stocks

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 items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible assets and depreciated over the shorter of the lease term and their useful lives. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the statement of comprehensive income as to produce constant periodic rates of charge on the net obligations outstanding in each period.

Rentals payable under operating leases are charged against income on a straight line basis over the lease term.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.