REGISTERED NUMBER: 10738316 (England and Wales)

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements for the Year Ended 30 September 2024

for

TILDENET HOLDINGS LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Consolidated Statement of Comprehensive Income

7

Consolidated Balance Sheet

8

Company Balance Sheet

9

Consolidated Statement of Changes in Equity

10

Company Statement of Changes in Equity

11

Consolidated Cash Flow Statement

12

Notes to the Consolidated Cash Flow Statement

13

Notes to the Consolidated Financial Statements

14

DIRECTORS:

A J Downey

B T J Downey

P E James

REGISTERED OFFICE:

Hartcliffe Way

Bristol

BS3 5RJ

REGISTERED NUMBER:

10738316 (England and Wales)

AUDITORS:

Richardson Swift Audit Ltd

Chartered Accountants

Statutory Auditor

11 Laura Place

Bath

BA2 4BL

The directors present their strategic report of the company and the group for the year ended 30 September 2024.

This strategic report provides an overview of our business performance over the past year, as well as our future plans and objectives.

ANNUAL STRATEGIC BUSINESS REVIEW

Amidst a challenging economic landscape characterised by elevated inflation and interest rates, our organisation faced pressures that impacted disposable incomes and, consequently, our customer base. Despite these adversities, we are proud to report a robust return for the fiscal year, testament to our resilience and strategic agility.

NAVIGATING ECONOMIC CHALLENGES

The past year witnessed persistent hikes in utility and raw material costs. Through meticulous management and strategic foresight, we effectively contained these costs. Our proactive measures not only safeguarded our margins but also enabled an increase in sales productivity per employee, enhancing our overall pre-tax return on sales. This achievement underscores the efficacy of our strategic initiatives and our unwavering commitment to operational excellence.

STRATEGIC INITIATIVES AND MARKET ADAPTATION

Our strategic roadmap has proven its worth, guiding us through turbulent times. Continuous refinement of our objectives ensures we remain agile, ready to capitalize on emerging markets and opportunities. Investment in our workforce and technological infrastructure has been pivotal, enhancing our service delivery while ensuring efficient stock management.

MITIGATING RISKS AND EMBRACING OPPORTUNITIES

The fluctuating currency landscape remains a challenge; however, our forward-looking risk management strategies have effectively minimized potential impacts. As global economic indicators show signs of easing inflation, we are optimistic about our trajectory and ongoing strategic plans, particularly our ambition to expand our market presence internationally.

GLOBAL CONSIDERATIONS AND ENVIRONMENTAL COMMITMENT

Current world events, including climate change and geopolitical tensions, notably in Ukraine and Gaza, continue to influence the global economy and, by extension, our operations. We are deeply committed to reducing our carbon footprint and mitigating the effects of global disputes on our logistics and supply chains.

LOOKING FORWARD

As we move ahead, our focus remains on leveraging improvements in the economic climate, expanding our market share, and driving sustainable growth. Our dedication to strategic excellence, operational efficiency, and corporate responsibility guides our path forward.

RESULTS AND FINANCIAL KEY PERFORMANCE INDICATORS

The group’s key financial and other performance indicators during the year were

Unit

2024

2023

Sales

£

14,622,770

13,281,332

Sales per head

£

261

237

Profit before interest and taxation

£

1,304,593

1,433,151

Return on capital employed

%

16.5

20.0

Return on sales before tax

%

9.7

11.1

ON BEHALF OF THE BOARD:

A J Downey - Director

2 April 2025

The directors present their report with the financial statements of the company and the group for the year ended 30 September 2024.

PRINCIPAL ACTIVITY

The principal activity of the subsidiaries of the group is the supply of goods to the various business sectors and channels that it operates in. The main principal sectors being the horticultural, construction sport and gardening sector and through E commerce.

DIVIDENDS

DIRECTORS

The directors shown below have held office during the whole of the period from 1 October 2023 to the date of this report.

A J Downey

B T J Downey

P E James

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

ON BEHALF OF THE BOARD:

A J Downey - Director

2 April 2025

Opinion

We have audited the financial statements of Tildenet Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2024 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 September 2024 and of the group's profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

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

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

-	the Group 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

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 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 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 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 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 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:

ur approach was as follows:

We obtained an understanding of the legal and regulatory frameworks that are applicable to the entity by discussions with Directors and key personnel, and through consideration of our experience of companies in similar sectors.

We determined that the most significant laws and regulations which have a direct impact on the form and content of the financial statements of the entity are UK GAAP and the Companies Act.

We determined that the most significant operational laws and regulations for the entity are employment law, health and safety regulations, and regulations around imports and exports.

Based on the results or our risk assessment we designed our audit procedures to identify non-compliance with such laws and regulations identified above, with no significant issues noted.

We gained an understating of the entity's policy and procedures by discussions with key personnel. We corroborated our understanding by carrying out substantive audit work.

We assessed the risk of material misstatement in respect of fraud through discussion with Directors, and through our knowledge of the systems and processes in place.

Based on the results of our risk assessment we designed our audit procedures to identify and to address material misstatements in relation to fraud. We considered the risk of fraud through management override and, in response, we incorporated testing of manual journal entries into our audit approach.

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.

Catherine Edwards BSc FCA (Senior Statutory Auditor)

for and on behalf of Richardson Swift Audit Ltd

Chartered Accountants

Statutory Auditor

11 Laura Place

Bath

BA2 4BL

2 April 2025

TURNOVER

4

14,622,770

13,281,332

Cost of sales

7,402,590

6,868,753

GROSS PROFIT

7,220,180

6,412,579

Distribution costs

2,284,781

1,859,259

Administrative expenses

3,630,806

3,120,169

5,915,587

4,979,428

OPERATING PROFIT

6

1,304,593

1,433,151

Interest receivable and similar income

7

110,338

41,748

1,414,931

1,474,899

Interest payable and similar expenses

8

779

849

PROFIT BEFORE TAXATION

1,414,152

1,474,050

Tax on profit

9

276,726

355,315

PROFIT FOR THE FINANCIAL YEAR

1,137,426

1,118,735

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,137,426

1,118,735

Profit attributable to:

Owners of the parent

1,137,426

1,118,735

Total comprehensive income attributable to:

Owners of the parent

1,137,426

1,118,735

FIXED ASSETS

Intangible assets

12

313,566

332,704

Tangible assets

13

496,398

476,940

Investments

14

-

-

809,964

809,644

CURRENT ASSETS

Stocks

15

3,660,550

3,674,189

Debtors

16

2,015,864

1,542,267

Cash at bank and in hand

3,571,233

3,298,023

9,247,647

8,514,479

CREDITORS

Amounts falling due within one year

17

2,177,460

2,155,321

NET CURRENT ASSETS

7,070,187

6,359,158

TOTAL ASSETS LESS CURRENT LIABILITIES

7,880,151

7,168,802

CREDITORS

Amounts falling due after more than one year

18

-

(1,407

)

PROVISIONS FOR LIABILITIES

21

(112,450

)

(103,766

)

NET ASSETS

7,767,701

7,063,629

CAPITAL AND RESERVES

Called up share capital

22

25,006

25,006

Retained earnings

23

7,742,695

7,038,623

SHAREHOLDERS' FUNDS

7,767,701

7,063,629

The financial statements were approved by the Board of Directors and authorised for issue on 2 April 2025 and were signed on its behalf by:

A J Downey - Director

FIXED ASSETS

Intangible assets

12

-

-

Tangible assets

13

16,049

36,745

Investments

14

505,003

505,003

521,052

541,748

CURRENT ASSETS

Debtors

16

3

60,378

Cash at bank

1,340,272

1,341,838

1,340,275

1,402,216

CREDITORS

Amounts falling due within one year

17

608,220

393,187

NET CURRENT ASSETS

732,055

1,009,029

TOTAL ASSETS LESS CURRENT LIABILITIES

1,253,107

1,550,777

PROVISIONS FOR LIABILITIES

21

3,203

6,232

NET ASSETS

1,249,904

1,544,545

CAPITAL AND RESERVES

Called up share capital

22

25,006

25,006

Retained earnings

23

1,224,898

1,519,539

SHAREHOLDERS' FUNDS

1,249,904

1,544,545

Company's profit for the financial year

138,713

1,517,588

The financial statements were approved by the Board of Directors and authorised for issue on 2 April 2025 and were signed on its behalf by:

A J Downey - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 October 2022

25,006

6,407,003

6,432,009

Changes in equity

Dividends

-

(487,115

)

(487,115

)

Total comprehensive income

-

1,118,735

1,118,735

Balance at 30 September 2023

25,006

7,038,623

7,063,629

Changes in equity

Dividends

-

(433,354

)

(433,354

)

Total comprehensive income

-

1,137,426

1,137,426

Balance at 30 September 2024

25,006

7,742,695

7,767,701

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 October 2022

25,006

489,066

514,072

Changes in equity

Dividends

-

(487,115

)

(487,115

)

Total comprehensive income

-

1,517,588

1,517,588

Balance at 30 September 2023

25,006

1,519,539

1,544,545

Changes in equity

Dividends

-

(433,354

)

(433,354

)

Total comprehensive income

-

138,713

138,713

Balance at 30 September 2024

25,006

1,224,898

1,249,904

Cash flows from operating activities

Cash generated from operations

1

1,419,036

2,271,893

Interest element of hire purchase payments paid

(779

)

(849

)

Tax paid

(317,993

)

(338,185

)

Net cash from operating activities

1,100,264

1,932,859

Cash flows from investing activities

Purchase of tangible fixed assets

(249,963

)

(176,839

)

Interest received

110,338

41,748

Net cash from investing activities

(139,625

)

(135,091

)

Cash flows from financing activities

Capital repayments in year

(5,630

)

(5,629

)

Amount introduced by directors

-

13,217

Amount withdrawn by directors

(301,799

)

-

Equity dividends paid

(380,000

)

(127,779

)

Net cash from financing activities

(687,429

)

(120,191

)

Increase in cash and cash equivalents

273,210

1,677,577

Cash and cash equivalents at beginning of year

2

3,298,023

1,620,446

Cash and cash equivalents at end of year

2

3,571,233

3,298,023

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

2024

2023

£

£

Profit before taxation

1,414,152

1,474,050

Depreciation charges

249,643

227,122

Finance costs

779

849

Finance income

(110,338

)

(41,748

)

1,554,236

1,660,273

Decrease in stocks

13,639

859,590

(Increase)/decrease in trade and other debtors

(467,279

)

76,884

Increase/(decrease) in trade and other creditors

318,440

(324,854

)

Cash generated from operations

1,419,036

2,271,893

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 September 2024

30.9.24

1.10.23

£

£

Cash and cash equivalents

3,571,233

3,298,023

Year ended 30 September 2023

30.9.23

1.10.22

£

£

Cash and cash equivalents

3,298,023

1,620,446

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.10.23

Cash flow

At 30.9.24

£

£

£

Net cash

Cash at bank and in hand

3,298,023

273,210

3,571,233

3,298,023

273,210

3,571,233

Debt

Finance leases

(7,037

)

5,630

(1,407

)

(7,037

)

5,630

(1,407

)

Total

3,290,986

278,840

3,569,826

1.	STATUTORY INFORMATION

Tildenet Holdings 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 General Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Summary of disclosure exemptions

The parent company satisfies the criteria of being a qualifying entity as defined in FRS 102. As such,advantage has been taken of the following reduced disclosures available under FRS 102:

a) Disclosure in respect of each class of share capital have not been presented.

b) No cash flow statement has been presented for the company.

c) Disclosures in respect of financial instruments have not been presented.

d) No disclosure has been given for the aggregate remuneration of key management personnel.

Basis of consolidation

The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings ("the Group") drawn up to 30 September 2024, as if they form a single entity.

The parent company has applied the exemption contained in section 408 of the Companies Act 2006 and has not presented its individual profit and loss account.

A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate.Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.

The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill. They are deconsolidated from the date control ceases.

Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.

Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.

Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.

Turnover

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

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

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

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

- the amount of revenue can be measured reliably;

- it is probable that the Group will receive the consideration due under the transaction; and

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

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Consolidated Statement of Comprehensive Income over its useful economic life of 30 years.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

Tangible fixed assets

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

Short leasehold

-

10 - 20% on cost

Long leasehold

-

20% on cost

Plant and Equipment

-

20-33% Straight line, 20% Straight line and 15% on reducing balance

Fixtures and fittings

-

20-33% Straight line and 15% on reducing balance

Motor vehicles

-

25% on cost

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Stocks

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

Financial instruments

The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Leasing

Rentals paid under operating leases are charged to the profit and loss on a straight line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. 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 profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Pension costs and other post-retirement benefits

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Group in independently administered funds.

Interest income

Interest income is recognised in profit or loss using the effective interest method.

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

Provisions for liabilities

Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.

Provisions are charged as an expense to profit or loss in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the Balance Sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.

When payments are eventually made, they are charged to the provision carried in the Balance

Sheet.

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In preparing these financial statements the Directors have made judgements as to the valuation of stock and bad debt provisions. No other significant judgements or assumptions have had to be made.