REGISTERED NUMBER: SC717684 (Scotland)

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements For The Year Ended 31 December 2024

for

TJH1868 Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

6

Consolidated Statement of Comprehensive Income

10

Consolidated Statement of Financial Position

11

Company Statement of Financial Position

12

Consolidated Statement of Changes in Equity

13

Company Statement of Changes in Equity

14

Consolidated Statement of Cash Flows

15

Notes to the Consolidated Statement of Cash Flows

16

Notes to the Consolidated Financial Statements

17

DIRECTORS:

D S Haddow

R Young

T Green

SECRETARY:

C Buttar

REGISTERED OFFICE:

c/o Thomas Johnstone Limited

Cartside Avenue

Inchinnan Business Park

Inchinnan

Renfrewshire

PA4 9RU

REGISTERED NUMBER:

SC717684 (Scotland)

INDEPENDENT AUDITORS:

Robb Ferguson

Chartered Accountants & Statutory Auditors

Regent Court

70 West Regent Street

Glasgow

G2 2QZ

The directors present their strategic report of the company and the group for the year ended 31 December 2024.

REVIEW OF BUSINESS

2024 commenced with a strong performance in Q1. This momentum continued through the remainder of the year leading to Annual sales of £84.3m which exceeded our budget expectations. We continue to focus on our customers within our existing market sectors. Our dedication to deliver "what the customer wants" through our highly skilled site and manufacturing teams continues to be our unique selling point.

Our performance has allowed the business to deliver a healthy operating profit, despite the ongoing "World Problems" affecting investor confidence. We continue to negotiate, and risk manage projects which allow us to agree favourable terms with our clients, giving them value for money with realistic risks.

We continue to invest heavily in IT systems to improve our overall performance.

Since Covid, we still see a lack of skilled trades persons and skilled management teams available within the industry. We continue to be proactive in training and retaining recruits, providing apprenticeships for trades persons of all ages and sponsor undergraduates training to be professionals in the construction sector.

We are an equal opportunities employer, putting equality, diversity and inclusion at the forefront of our company policies. We also take our corporate social responsibility role very seriously by employing local people where suitable. This provides a direct link to the local community and helps reduce our carbon footprint by cutting down on commuter travel.

We continue to put our people first and this is reflected in our excellent staff retention levels. We aim to make their place of work an enjoyable experience and encourage a good work-life balance.

The Directors believe that our approach to delivering projects will continue to add to an already healthy order book and increase our customer base. This, combined with constant improvement in our practices and procedures will provide solid grounds for confidence that we will continue to grow the business and reduce our effective cost base through innovation and efficiencies.

Therefore, we are optimistic about the future and are in good shape to seek out and take advantage of opportunities as they arise in 2025.

ON BEHALF OF THE BOARD:

R Young - Director

4 September 2025

The directors present their report with the financial statements of the company and the group for the year ended 31 December 2024.

DIVIDENDS

Interim dividends per share were paid as follows:

Ordinary £1 shares

£0.69

- 31 January 2024

£0.17

- 8 April 2024

£0.86

- 6 December 2024

£1.7107

Preference £1 shares

£0.9050

-

The directors recommend that no final dividends be paid.

The total distribution of dividends for the year ended 31 December 2024 will be £ 1,035,208 .

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report.

D S Haddow

R Young

T Green

STREAMLINED ENERGY AND CARBON REPORTING

Energy and Carbon Report

In accordance with the Companies (Directors Report) and the Energy and Carbon Report Regulations 2018, the company, having met the thresholds of large unquoted company status in the UK, is now required to report their UK energy use and associated GHG emissions relating to electricity, gas and transport fuel.

The requirement also calls for an intensity ratio.

For company reporting purposes the methods adopted in the calculations of the total greenhouse gas emissions incorporate the GHG Protocol Corporate Standard, the 2019 HM Government Environmental Reporting Guidelines and the 2023 UK Government Conversion Factors.

Information surrounding Business travel and power consumption have been sourced internally from invoices and receipts and converted accordingly to tCO2e utilising UK Government GHG Conversion Factors.

Our adopted intensity metric has been defined as tonnes of CO2e per £1million of Sales Revenue.

The energy reduction in kWh during 2024 was as a direct result of the installation in the latter part of 2023 of solar panels and energy efficient boilers within our Manufacturing Facility at Inchinnan.

There has also been a significant shift within our car fleet towards electric cars.

2024

2023

UK Energy Use

kWh

636,424

858,919

Associated Greenhouse Gas Emissions

TCO2e

386

390

Intensity Ratio

TCO2e per £M Sales Revenue

4.5

4.5

Energy Reduction Measures Planned for 2025 are as follows:

- Continual awareness, briefings and training of our employees on CO2 reduction measures.

- Feasibility study for battery storage with regards to our solar generated power.

- Review of the use of Diesel within our sites to a more carbon friendly substitute.

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;

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-	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:

R Young - Director

4 September 2025

Opinion

We have audited the financial statements of TJH1868 Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 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 five, 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:

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.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- We identified the laws and regulations applicable to the group and parent company through discussions with directors and other management, and from our wider knowledge and experience;

- We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the group and the parent company, including the Companies Act 2006 and FRS 102;

- We assessed the extent of compliance with the laws and regulations identified above through making enquiries of

management and inspecting legal correspondence; and

- Identified laws and regulations were communicated within the audit team regularly and the team remained alert to

instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- Making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of

actual, suspected and alleged fraud; and

- Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations

Audit response to risks identified

To address the risk of fraud through management bias and override of controls, we:

- Performed analytical procedures to identify any unusual or unexpected relationships;

- Tested journal entries to identify unusual transactions;

- Assessed whether judgements and assumptions made in determining the accounting estimates set out were indicative of potential bias;

and

- Investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- Agreeing financial statement disclosures to underlying supporting documentation;

- Reading the minutes of meetings of those charged with governance;

- Enquiring of management as to actual and potential litigation and claims; and

- Requesting correspondence with HMRC, Companies House and the group and parent company's legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

Janice Alexander CA (Senior Statutory Auditor)

for and on behalf of Robb Ferguson

Chartered Accountants & Statutory Auditors

Regent Court

70 West Regent Street

Glasgow

G2 2QZ

5 September 2025

TURNOVER

84,383,372

86,455,559

Cost of sales

70,694,177

72,937,708

GROSS PROFIT

13,689,195

13,517,851

Administrative expenses

10,556,875

9,822,296

3,132,320

3,695,555

Other operating income

126,477

112,716

OPERATING PROFIT

4

3,258,797

3,808,271

Interest receivable and similar income

338,129

159,460

3,596,926

3,967,731

Interest payable and similar expenses

5

68,249

97,208

PROFIT BEFORE TAXATION

3,528,677

3,870,523

Tax on profit

6

(401,317

)

963,254

PROFIT FOR THE FINANCIAL YEAR

3,929,994

2,907,269

OTHER COMPREHENSIVE INCOME

Revaluation of property

396,188

-

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

396,188

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

4,326,182

2,907,269

Profit attributable to:

Owners of the parent

3,929,994

2,907,269

Total comprehensive income attributable to:

Owners of the parent

4,326,182

2,907,269

FIXED ASSETS

Intangible assets

9

288,024

329,711

Tangible assets

10

2,477,723

2,229,128

Investments

11

-

-

2,765,747

2,558,839

CURRENT ASSETS

Stocks

12

38,451

39,269

Debtors

13

15,483,461

15,457,338

Cash at bank and in hand

8,562,975

12,323,910

24,084,887

27,820,517

CREDITORS

Amounts falling due within one year

14

18,952,691

25,345,512

NET CURRENT ASSETS

5,132,196

2,475,005

TOTAL ASSETS LESS CURRENT LIABILITIES

7,897,943

5,033,844

CREDITORS

Amounts falling due after more than one year

15

(249,377

)

(644,709

)

PROVISIONS FOR LIABILITIES

19

(74,214

)

(105,757

)

NET ASSETS

7,574,352

4,283,378

CAPITAL AND RESERVES

Called up share capital

20

971,429

971,429

Share premium

21

25,865

25,865

Revaluation reserve

21

396,188

-

Retained earnings

21

6,180,870

3,286,084

SHAREHOLDERS' FUNDS

7,574,352

4,283,378

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

R Young - Director

FIXED ASSETS

Intangible assets

9

-

-

Tangible assets

10

-

-

Investments

11

5,166,953

5,166,953

5,166,953

5,166,953

CREDITORS

Amounts falling due within one year

14

3,920,282

3,524,950

NET CURRENT LIABILITIES

(3,920,282

)

(3,524,950

)

TOTAL ASSETS LESS CURRENT LIABILITIES

1,246,671

1,642,003

CREDITORS

Amounts falling due after more than one year

15

249,377

644,709

NET ASSETS

997,294

997,294

CAPITAL AND RESERVES

Called up share capital

20

971,429

971,429

Share premium

21

25,865

25,865

SHAREHOLDERS' FUNDS

997,294

997,294

Company's profit for the financial year

1,035,208

181,319

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

R Young - Director

Called up

share

Retained

Share

Revaluation

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1 January 2023

971,429

560,134

25,865

-

1,557,428

Changes in equity

Dividends

-

(181,319

)

-

-

(181,319

)

Total comprehensive income

-

2,907,269

-

-

2,907,269

Balance at 31 December 2023

971,429

3,286,084

25,865

-

4,283,378

Changes in equity

Dividends

-

(1,035,208

)

-

-

(1,035,208

)

Total comprehensive income

-

3,929,994

-

396,188

4,326,182

Balance at 31 December 2024

971,429

6,180,870

25,865

396,188

7,574,352

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 January 2023

971,429

-

25,865

997,294

Changes in equity

Dividends

-

(181,319

)

-

(181,319

)

Total comprehensive income

-

181,319

-

181,319

Balance at 31 December 2023

971,429

-

25,865

997,294

Changes in equity

Dividends

-

(1,035,208

)

-

(1,035,208

)

Total comprehensive income

-

1,035,208

-

1,035,208

Balance at 31 December 2024

971,429

-

25,865

997,294

Cash flows from operating activities

Cash generated from operations

1

(535,788

)

10,680,127

Interest paid

(68,249

)

(97,208

)

Tax paid

(2,035,515

)

554,921

Net cash from operating activities

(2,639,552

)

11,137,840

Cash flows from investing activities

Purchase of tangible fixed assets

(28,971

)

(313,689

)

Interest received

338,129

159,460

Net cash from investing activities

309,158

(154,229

)

Cash flows from financing activities

Loan repayments in year

(395,333

)

(1,475,083

)

Equity dividends paid

(1,035,208

)

(181,319

)

Net cash from financing activities

(1,430,541

)

(1,656,402

)

(Decrease)/increase in cash and cash equivalents

(3,760,935

)

9,327,209

Cash and cash equivalents at beginning of year

2

12,323,910

2,996,701

Cash and cash equivalents at end of year

2

8,562,975

12,323,910

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

2024

2023

£

£

Profit before taxation

3,528,677

3,870,523

Depreciation charges

195,565

189,066

Finance costs

68,249

97,208

Finance income

(338,129

)

(159,460

)

3,454,362

3,997,337

Decrease/(increase) in stocks

818

(6,222

)

Decrease/(increase) in trade and other debtors

332,834

(1,539,797

)

(Decrease)/increase in trade and other creditors

(4,323,802

)

8,228,809

Cash generated from operations

(535,788

)

10,680,127

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

8,562,975

12,323,910

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

12,323,910

2,996,701

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank and in hand

12,323,910

(3,760,935

)

8,562,975

12,323,910

(3,760,935

)

8,562,975

Debt

Debts falling due within 1 year

(83,333

)

-

(83,333

)

Debts falling due after 1 year

(644,709

)

395,332

(249,377

)

(728,042

)

395,332

(332,710

)

Total

11,595,868

(3,365,603

)

8,230,265

1.	STATUTORY INFORMATION

TJH1868 Limited is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the General Information page.

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The nature of the group's operations and principal activities are set out in the report of the directors.

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 as modified by the revaluation of certain assets.

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

Basis of consolidation

TJH1868 Limited financial statements consolidate the financial statements of the Company and its subsidiary undertakings drawn up to 31 December each year. The results of subsidiaries acquired or sold are consolidated for the periods from or to the date on which control passed.

Significant judgements and estimates

In the application of the group's accounting policies the directors and management are required to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities at the period end date, and the amounts reported for revenues and expenses during the period.

The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, and in future periods should it affect future periods.

Management consider that the following have the most significant effect on the amounts recognised in the financial statements:

- Financial outcome of individual construction contracts - all long-term contracts are reviewed on a monthly basis, with particular attention to contract stage of completion, costs to date and costs still to be incurred. Movement in margin is recognised when prudent to do so but immediately in the event there is a foreseeable loss.

Turnover

Turnover is stated net of VAT and trade discounts and is recognised when the significant risks and rewards are considered to have been transferred to the buyer.

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the balance sheet date. This is normally measured by the proportion that contract costs incurred for work performed to date bear to the estimated total contract costs, except where this would not be representative of the stage of completion. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred.

Where it is probable that contract costs will exceed total contract revenue, the expected loss is recognised as an expense immediately.

Goodwill

Goodwill representing the excess of the cost of the acquisition of subsidiary undertakings over the fair value of the assets acquired and other purchased goodwill, is capitalised in the year of acquisition. Goodwill is written off over a period of 10 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 each asset over its estimated useful life.

Property and improvements

-

2.5% on cost

Fixed plant and equipment

-

10% on cost

Computer equipment

-

25% on cost

Stocks

Stocks are valued at the lower of cost and net realisable value. Costs include materials whilst net realisable value based on the estimated selling price less further costs estimated to be incurred to completion and disposal. Provision is made for obsolete or slow-moving items where appropriate.

Financial instruments

Basic financial instruments are recognised at amortised cost, except for investments in non-convertible preference and non-puttable ordinary shares which are measured at fair value, with changes recognised in profit or loss. Derivative financial instruments are initially recorded at cost and thereafter at fair value with changes recognised in profit or loss.

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 statement of financial position date.