REGISTERED NUMBER: 08185922 (England and Wales)

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements for the Year Ended 30 June 2024

for

Ecrin Investments Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Profit and Loss Account

10

Consolidated Other Comprehensive Income

11

Consolidated Balance Sheet

12

Company Balance Sheet

13

Consolidated Statement of Changes in Equity

14

Company Statement of Changes in Equity

15

Consolidated Cash Flow Statement

16

Notes to the Consolidated Cash Flow Statement

17

Notes to the Consolidated Financial Statements

19

DIRECTORS:

Dr A L Nairac

B L R Watts

REGISTERED OFFICE:

30 Bankside Court

Stationfields

Kidlington

Oxford

Oxfordshire

OX5 1JE

REGISTERED NUMBER:

08185922 (England and Wales)

AUDITORS:

Shaw Gibbs (Audit) Limited

Chartered Certified Accountants

Statutory Auditor

264 Banbury Road

Summertown

Oxford

OX2 7DY

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

REVIEW OF BUSINESS

The group's main activity is carried on through its trading subsidiary Oxford Technical Solutions Limited ("OxTS"). OxTS designs and manufactures world leading products combining the best of inertial navigation and GNSS. The primary market is in the automotive industry, with additional applications under review. The market is international with new geographical areas explored as part of the company's strategy. OxTS is dedicated to designing simple to use products that deliver reliable results, backed up with first class support.

The group's other activities include investments in promising start-up businesses. Ecrin Investments Limited ("Ecrin") have invested in several pre-revenue businesses, backing interesting uses of technology or inspiring founders. Ecrin continues to support those businesses as they develop and start to generate revenue.

PRINCIPAL RISKS AND UNCERTAINTIES

In OxTS, the process of risk acceptance and risk management is addressed through a governance framework of policies, procedures and internal controls. All policies are subject to board approval and ongoing review by management. Compliance with regulation, legal and ethical standards is a high priority for the company, and is subject to strict monitoring and review.

Business risk is analysed and monitored through a series of review processes and, the potential impact on the business reviewed. The main business risks relate to competition in the market, and changes in technology.

RESULTS AND PERFORMANCE

The results for the group for the year, as set out in the consolidated profit and loss account, show a profit before tax of £3,703,870 (2023: £3,053,909) Shareholder funds on the consolidated balance sheet total £28,113,312 (2023: £25,428,152).

BUSINESS ENVIRONMENT

The markets remain competitive, and the changing pace of technology is an ever-present challenge. The general economic climate still creates a level of uncertainty with the impact on the general economy, and the automotive trade being uncertain.

STRATEGY

The group continues to build on its strong presence in the market, with an emphasis on strong customer service and support, and ongoing research and development on its products. New markets and potential uses for company products is being actively pursued.

KEY PERFORMANCE INDICATORS (KPIS)

2024

2023

Gross profit margin

67%

65%

Net profit margin

17%

17%

Return on capital employed

11%

11%

FUTURE DEVELOPMENTS

The company is actively investing in research and development to maintain its position as a leader in its market. This research and development includes the improvement of existing products, and new products to be brought to market. The company is also actively looking at new applications for its products in different markets, including extensive research in different geographical locations.

ON BEHALF OF THE BOARD:

B L R Watts - Director

4 April 2025

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

PRINCIPAL ACTIVITY

The company's principal activity during the period was to act as a holding company.

DIVIDENDS

Ordinary dividends amounting to £420,000 in the year (2023: £420,000). The directors do not recommend payment of a further dividend.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

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

Dr A L Nairac

B L R Watts

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), 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 he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, Shaw Gibbs (Audit) Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

B L R Watts - Director

4 April 2025

Opinion

We have audited the financial statements of Ecrin Investments Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2024 which comprise the Consolidated Profit and Loss Account, Consolidated Other 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 June 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 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 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

1. At the planning stage of the audit we gain an understanding of the laws and regulations which apply to the company and how the management seek to comply with those laws regulations. This helps us to plan appropriate risk assessments.

2. During the audit we focus on relevant risk areas and review the compliance with the laws and regulations by making relevant enquiries and undertaking corroboration, for example by reviewing Board Minutes and other documentation.

3. We assess the risk of material misstatement in the financial statements including as a result of fraud and undertake procedures including:

a. Reviewing the controls set in place by management;

b. Making enquiries of management as to whether they consider fraud or other irregularities may have taken place, or where such opportunity might exist;

c. Challenging management assumptions with regard to accounting estimates; and

d. Identifying and testing journal entries, particularly those which appear to be unusual by size or nature.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulations. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

Stephen Howard Neal (Senior Statutory Auditor)

for and on behalf of Shaw Gibbs (Audit) Limited

Chartered Certified Accountants

Statutory Auditor

264 Banbury Road

Summertown

Oxford

OX2 7DY

4 April 2025

TURNOVER

3

18,414,360

17,208,467

Cost of sales

(6,163,242

)

(6,105,079

)

GROSS PROFIT

12,251,118

11,103,388

Administrative expenses

(9,475,021

)

(8,493,649

)

2,776,097

2,609,739

Other operating (expense)/

income

14,297

(26,252

)

Gain on revaluation of investments

421,659

244,540

OPERATING PROFIT

5

3,212,053

2,828,027

Income from fixed asset investments

87,832

65,213

Interest receivable and similar income

414,996

160,239

3,714,881

3,053,479

Interest payable and similar expenses

6

(11,011

)

430

PROFIT BEFORE TAXATION

3,703,870

3,053,909

Tax on profit

7

(575,750

)

(182,639

)

PROFIT FOR THE FINANCIAL YEAR

3,128,120

2,871,270

Profit attributable to:

Owners of the parent

3,128,120

2,871,270

PROFIT FOR THE YEAR

3,128,120

2,871,270

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

3,128,120

2,871,270

Total comprehensive income attributable to:

Owners of the parent

3,128,120

2,871,270

FIXED ASSETS

Tangible assets

11

2,670,498

1,253,134

Investments

12

810,217

841,095

3,480,715

2,094,229

CURRENT ASSETS

Stocks

13

2,192,810

3,072,388

Debtors

14

3,557,281

3,060,771

Investments

15

8,226,502

7,830,472

Cash at bank and in hand

12,539,883

10,849,122

26,516,476

24,812,753

CREDITORS

Amounts falling due within one year

16

(1,361,241

)

(1,087,785

)

NET CURRENT ASSETS

25,155,235

23,724,968

TOTAL ASSETS LESS CURRENT LIABILITIES

28,635,950

25,819,197

PROVISIONS FOR LIABILITIES

18

(522,638

)

(391,045

)

NET ASSETS

28,113,312

25,428,152

CAPITAL AND RESERVES

Called up share capital

19

120

120

Foreign Exchange Reserve

(22,960

)

-

Retained earnings

28,136,152

25,428,032

SHAREHOLDERS' FUNDS

28,113,312

25,428,152

The financial statements were approved by the Board of Directors and authorised for issue on 4 April 2025 and were signed on its behalf by:

B L R Watts - Director

FIXED ASSETS

Tangible assets

11

-

-

Investments

12

810,337

841,215

810,337

841,215

CURRENT ASSETS

Debtors

14

80,515

20,849

Investments

15

8,226,502

7,830,472

Cash at bank

3,169,125

1,711,180

11,476,142

9,562,501

CREDITORS

Amounts falling due within one year

16

(73,081

)

(29,783

)

NET CURRENT ASSETS

11,403,061

9,532,718

TOTAL ASSETS LESS CURRENT LIABILITIES

12,213,398

10,373,933

PROVISIONS FOR LIABILITIES

18

(147,380

)

(36,377

)

NET ASSETS

12,066,018

10,337,556

CAPITAL AND RESERVES

Called up share capital

19

120

120

Retained earnings

12,065,898

10,337,436

SHAREHOLDERS' FUNDS

12,066,018

10,337,556

Company's profit for the financial year

2,148,462

1,886,628

The financial statements were approved by the Board of Directors and authorised for issue on 4 April 2025 and were signed on its behalf by:

B L R Watts - Director

Called up

Foreign

share

Retained

Exchange

Total

capital

earnings

Reserve

equity

£

£

£

£

Balance at 1 July 2022

120

22,976,762

-

22,976,882

Changes in equity

Dividends

-

(420,000

)

-

(420,000

)

Total comprehensive income

-

2,871,270

-

2,871,270

Balance at 30 June 2023

120

25,428,032

-

25,428,152

Changes in equity

Dividends

-

(420,000

)

-

(420,000

)

Total comprehensive income

-

3,128,120

(22,960

)

3,105,160

Balance at 30 June 2024

120

28,136,152

(22,960

)

28,113,312

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 July 2022

120

8,870,808

8,870,928

Changes in equity

Dividends

-

(420,000

)

(420,000

)

Total comprehensive income

-

1,886,628

1,886,628

Balance at 30 June 2023

120

10,337,436

10,337,556

Changes in equity

Dividends

-

(420,000

)

(420,000

)

Total comprehensive income

-

2,148,462

2,148,462

Balance at 30 June 2024

120

12,065,898

12,066,018

Cash flows from operating activities

Cash generated from operations

1

3,838,680

2,065,381

Interest paid

(11,011

)

430

Tax paid

(486,175

)

(820,476

)

Net cash from operating activities

3,341,494

1,245,335

Cash flows from investing activities

Purchase of tangible fixed assets

(1,801,277

)

(573,445

)

Purchase of fixed asset investments

(50,007

)

(167,159

)

Sale of tangible fixed assets

34,169

11,920

Purchase of current asset investments

106,514

(4,695,546

)

Interest received

414,996

160,239

Dividends received

87,832

65,213

Net cash from investing activities

(1,207,773

)

(5,198,778

)

Cash flows from financing activities

Equity dividends paid

(420,000

)

(420,000

)

Net cash from financing activities

(420,000

)

(420,000

)

Increase/(decrease) in cash and cash equivalents

1,713,721

(4,373,443

)

Cash and cash equivalents at beginning of year

2

10,849,122

15,222,565

Effect of foreign exchange rate changes

(22,960

)

-

Cash and cash equivalents at end of year

2

12,539,883

10,849,122

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

30/6/24

30/6/23

as

restated

£

£

Profit before taxation

3,703,870

3,053,909

Depreciation charges

348,315

226,104

Loss/(profit) on disposal of fixed assets

1,429

(210

)

Gain on revaluation of fixed assets

(421,659

)

(244,540

)

Decrease in warranty provision

(21,478

)

(20,283

)

Finance costs

11,011

(430

)

Finance income

(502,828

)

(225,452

)

3,118,660

2,789,098

Decrease/(increase) in stocks

879,578

(88,235

)

(Increase)/decrease in trade and other debtors

(402,586

)

1,092,487

Increase/(decrease) in trade and other creditors

243,028

(1,727,969

)

Cash generated from operations

3,838,680

2,065,381

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 June 2024

30/6/24

1/7/23

£

£

Cash and cash equivalents

12,539,883

10,849,122

Year ended 30 June 2023

30/6/23

1/7/22

as restated

£

£

Cash and cash equivalents

10,849,122

15,222,565

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/7/23

Cash flow

At 30/6/24

£

£

£

Net cash

Cash at bank and in hand

10,849,122

1,690,761

12,539,883

10,849,122

1,690,761

12,539,883

Liquid resources

Current asset investments

7,830,472

396,030

8,226,502

7,830,472

396,030

8,226,502

Total

18,679,594

2,086,791

20,766,385

1.	STATUTORY INFORMATION

Ecrin Investments 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.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the exemption conferred by FRS 102 from preparing a statement of cash flows, on the basis that it is a qualifying entity and the consolidated statement of cash flows, included in these financial statements, includes the Company’s cash flows.

Basis of consolidation

The group financial statements consolidate the financial statements of Ecrin Investments Limited and all its subsidiary undertakings drawn up to 30th June each year. Subsidiaries are consolidated from the date of their acquisition, being the date on which the Group obtains control and continue to be consolidated until the date that such control ceases. Control comprises the power to govern the financial and operating policies of the investee so as to obtain benefit from its activities.

Significant judgements and estimates

Preparation of the financial statements requires management to make significant judgements and estimates. The items in these financial statements where these judgments and estimates have been made include provisions for warranty claims, and in valuing liabilities under the company's Long Term Incentive Programme.

Amounts charged to the profit and loss account in respect of the company's Long Term Incentive Programme are calculated each year using valuations as at the year end which have been performed on the basis of maintainable future profits as adjusted being multiplied by a suitable P/E ratio to value the liabilities as at the year end, with the annual movement in this balance being charge to the profit and loss account.

Warranty provisions are arrived at by multiplying the expected unit cost of rectification of technical issues identified as at the balance sheet date by the number of units on which a warranty claim is expected, calculated with reference to the total number of units sold and under warranty as at the balance sheet date and the company's experience of the frequency of occurrence of issues historically combined with technical judgements on a case by case basis.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services.

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer.

Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.

Tangible fixed assets

Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses.

Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:

Plant & Machinery (standard)

- 20% straight line

Plant & Machinery (large)

- 15% reducing balance

Office Equipment (standard)

- 25% straight line

Office Equipment (large)

- 20% straight line

Fixtures & Fittings

- 20% straight line

Demonstration Equipment

- 15% reducing balance

Motor Vehicles

- 25% reducing balance

Leasehold

- straight line over lease term

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method.

The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised.

Financial instruments

Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts.

Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.

Short term creditors are measured at transaction price (which is usually the invoice price).

Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Profit and Loss Account, 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.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

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.

Pension costs and other post-retirement benefits

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