REGISTERED NUMBER: 10148092 (England and Wales)

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTOR AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

CFM HOLDINGS LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Director

3

Statement of Director's Responsibilities

4

Report of the Independent Auditors

5

Consolidated Income Statement

8

Consolidated Other Comprehensive Income

9

Consolidated Balance Sheet

10

Company Balance Sheet

11

Consolidated Statement of Changes in Equity

12

Company Statement of Changes in Equity

13

Consolidated Cash Flow Statement

14

Notes to the Consolidated Cash Flow Statement

15

Notes to the Consolidated Financial Statements

16

DIRECTOR:

P Coffin

REGISTERED OFFICE:

8 Spicer Street

St Albans

Hertfordshire

AL3 4PQ

REGISTERED NUMBER:

10148092 (England and Wales)

AUDITORS:

Taylor Viney & Marlow Limited

Chartered Accountants

Statutory Auditors

46-54 High Street

Ingatestone

Essex

CM4 9DW

The directors present the strategic report for the year ended 31 December 2024.

REVIEW OF BUSINESS

There was a significant increase in business activity in the year, due to the onboarding of new clients. The markets were cautious throughout the year. Political and economic uncertainties, continuing concerns over inflationary pressures and interest rate trends had a dampening affect on the general economic outlook. However, despite the challenging economic and political environment, the company was able to report a healthy trading profit for the year.

Our revenue is split 51% recurring management fees, 35% broking commission, with the remaining 14% relating to other fees.

CRM

We continue to develop and invest in our CRM functionality and constantly strive to improve our service offerings to clients and achieve sustainable growth.

BUSINESS LEVELS AND OUTLOOK

Despite the continued social and economic challenges faced throughout 2024, the business has increased profitability. Our focus continues to be build our reputation as a firm that can migrate customers from SIPPs with large providers such as Standard Life, onto our own platform using lower cost bespoke SIPP providers and within those SIPPs, providing our personalised investment management service. This business is very long term and provides recurring revenue. We continue to gain a considerable number of referrals for this type of business and expect this trend to continue.

STAFF

We continue to invest in staff training and continue to monitor our staff's well-being. We acknowledge that our business is only as good as the people who work in it, and we strive to create a welcoming and professional workplace environment for all staff members.

KEY PERFORMANCE INDICATORS

The client base and assets under management have significantly increased during the year, despite the political and economic uncertainties experienced throughout 2024.

Complaints - No complaints received during this or the previous year.

PRINCIPAL RISKS AND UNCERTAINTIES

All our main software packages are in the cloud which means that we are well equipped to cope with any unexpected disruptions to our services, Our teams are able to work from anywhere and this provides the flexibility and adaptability that is sometimes needed. We rely heavily on Office 365, Microsoft Teams and SharePoint. Our phone system is a VOIP system so again can be used from any computer, Android phone or IOS.

The majority of our costs remains variable and this provides us with the flexibility to quickly adapt to market conditions and review our outgoings in accordance with the prevailing business climate. This flexibility is vital in times of economic uncertainty and provides us with the confidence to plan and develop the business in both the short and long term.

Whilst there continues to remain an element of uncertainty in the economic outlook, this can create opportunities for a smaller and client focused business to benefit, with investors looking for alternatives to their current financial arrangements. Therefore, we believe that we are well positioned to benefit from either a continued period of economic turbulence or a more settled period for both the UK and global economy.

ON BEHALF OF THE BOARD:

P Coffin - Director

27 August 2025

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of investment management.

DIVIDENDS

Ordinary dividends were paid amounting to £52,000.The director does not recommend payment of further dividend.

FUTURE DEVELOPMENTS

The company has chosen to include this information in the Strategic Report in accordance with section 414C of the Companies Act 2006.

DIRECTOR

P Coffin held office during the whole of the period from 1 January 2024 to the date of this report.

REMUNERATION DISCLOSURES

Details of the company's unaudited Remuneration disclosures, required under MIFIDPRU 8 of the FCA's Prudential Sourcebook for Banks, Building Societies and Investment Firms (BIPRU), are being made via the company's website and a copy is also available on request from the company's registered office.

RESULTS

The results for the year are set out on page 8.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the director is 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 he 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.

AUDITORS

Taylor Viney & Marlow Limited were appointed as auditors to the company, and in accordance with section 485 of the Companies Act 2006 will be proposed for re-appointment at the forthcoming Annual General meeting

ON BEHALF OF THE BOARD:

P Coffin - Director

27 August 2025

The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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.

Opinion

We have audited the financial statements of CFM Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the Consolidated Income Statement, 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 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 director's 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Group Strategic Report, the Report of the Director and the Statement of Director's Responsibilities, 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 Director 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 Director 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 Director.

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, or returns adequate for our audit have not been received from branches not visited by us; or

-

the financial statements are not in agreement with the accounting records and returns; or

-

certain disclosures of directors' remuneration specified by law are not made; or

-

we have not received all the information and explanations we require for our audit.

-

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

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page four, the director is 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 director determines 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 director is 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 director either intends to liquidate the group or the parent company or to cease operations, or has 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:

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. Audit staff with sufficient knowledge and expertise to identify non-compliance with laws and regulations were deployed on the audit.

Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management. We did not identify any key audit matters relating to irregularities, including fraud.

We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

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.

David J. Stevens (Senior Statutory Auditor)

for and on behalf of Taylor Viney & Marlow Limited

Chartered Accountants

Statutory Auditors

46-54 High Street

Ingatestone

Essex

CM4 9DW

2 September 2025

TURNOVER

4

1,290,957

635,987

Cost of sales

491,177

196,177

GROSS PROFIT

799,780

439,810

Administrative expenses

474,266

375,822

OPERATING PROFIT

6

325,514

63,988

Profit/loss on sale of invest

8

3,551

6,773

329,065

70,761

Interest receivable and similar income

9

3,326

786

332,391

71,547

Gain/loss on revaluation of investments

5,573

2,040

337,964

73,587

Interest payable and similar expenses

10

869

4,221

PROFIT BEFORE TAXATION

337,095

69,366

Tax on profit

11

85,324

15,396

PROFIT FOR THE FINANCIAL YEAR

251,771

53,970

Profit attributable to:

Owners of the parent

251,771

53,970

PROFIT FOR THE YEAR

251,771

53,970

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

251,771

53,970

Total comprehensive income attributable to:

Owners of the parent

251,771

53,970

FIXED ASSETS

Intangible assets

14

7,018

12,827

Tangible assets

15

21,233

25,798

Investments

16

-

-

28,251

38,625

CURRENT ASSETS

Debtors

17

351,447

154,418

Investments

18

206,102

75,799

Cash at bank and in hand

182,250

151,001

739,799

381,218

CREDITORS

Amounts falling due within one year

19

340,724

169,595

NET CURRENT ASSETS

399,075

211,623

TOTAL ASSETS LESS CURRENT LIABILITIES

427,326

250,248

CREDITORS

Amounts falling due after more than one year

20

-

22,693

NET ASSETS

427,326

227,555

CAPITAL AND RESERVES

Called up share capital

23

2

2

Share premium

24

79,999

79,999

Retained earnings

24

347,325

147,554

SHAREHOLDERS' FUNDS

427,326

227,555

The financial statements were approved by the director and authorised for issue on 27 August 2025 and were signed by:

P Coffin - Director

FIXED ASSETS

Intangible assets

14

-

-

Tangible assets

15

-

-

Investments

16

140,500

140,500

140,500

140,500

CREDITORS

Amounts falling due within one year

19

59,360

59,360

NET CURRENT LIABILITIES

(59,360

)

(59,360

)

TOTAL ASSETS LESS CURRENT LIABILITIES

81,140

81,140

CAPITAL AND RESERVES

Called up share capital

23

2

2

Share premium

24

79,999

79,999

Retained earnings

24

1,139

1,139

SHAREHOLDERS' FUNDS

81,140

81,140

Company's profit for the financial year

52,000

49,000

The financial statements were approved by the director and authorised for issue on 27 August 2025 and were signed by:

P Coffin - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 January 2023

2

148,944

79,999

228,945

Changes in equity

Profit for the year

-

53,970

-

53,970

Total comprehensive income

-

53,970

-

53,970

Dividends

-

(55,360

)

-

(55,360

)

Total transactions with owners, recognised directly in equity

-

(55,360

)

-

(55,360

)

Balance at 31 December 2023

2

147,554

79,999

227,555

Changes in equity

Profit for the year

-

251,771

-

251,771

Total comprehensive income

-

251,771

-

251,771

Dividends

-

(52,000

)

-

(52,000

)

Total transactions with owners, recognised directly in equity

-

(52,000

)

-

(52,000

)

Balance at 31 December 2024

2

347,325

79,999

427,326

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 January 2023

2

7,499

79,999

87,500

Changes in equity

Dividends

-

(55,360

)

-

(55,360

)

Total comprehensive income

-

49,000

-

49,000

Balance at 31 December 2023

2

1,139

79,999

81,140

Changes in equity

Dividends

-

(52,000

)

-

(52,000

)

Total comprehensive income

-

52,000

-

52,000

Balance at 31 December 2024

2

1,139

79,999

81,140

Cash flows from operating activities

Cash generated from operations

1

226,376

161,967

Interest paid

-

(2,819

)

Interest element of hire purchase payments paid

(869

)

(1,402

)

Tax paid

(15,457

)

(16,812

)

Net cash from operating activities

210,050

140,934

Cash flows from investing activities

Purchase of tangible fixed assets

(3,237

)

(1,591

)

Purchase of current asset investments

(229,325

)

(292,711

)

Sale of current asset investments

101,246

341,336

Loss on sale of current asset investment

(5,011

)

(6,774

)

Interest received

3,326

786

Net cash from investing activities

(133,001

)

41,046

Cash flows from financing activities

New loans in year

8,360

-

Loan repayments in year

-

(68,027

)

Capital repayments in year

(8,013

)

(8,400

)

Amount withdrawn by directors

(2,481

)

2,229

Equity dividends paid

(52,000

)

(55,360

)

Net cash from financing activities

(54,134

)

(129,558

)

Increase in cash and cash equivalents

22,915

52,422

Cash and cash equivalents at beginning of year

2

150,998

98,576

Cash and cash equivalents at end of year

2

173,913

150,998

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

31.12.24

31.12.23

£

£

Profit before taxation

337,095

69,366

Depreciation charges

13,611

15,548

Gain on revaluation of fixed assets

(5,573

)

(2,040

)

Finance costs

869

4,221

Finance income

(3,326

)

(786

)

342,676

86,309

Increase in trade and other debtors

(197,029

)

(28,192

)

Increase in trade and other creditors

80,729

103,850

Cash generated from operations

226,376

161,967

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 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

182,250

151,001

Bank overdrafts

(8,337

)

(3

)

173,913

150,998

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

151,001

98,591

Bank overdrafts

(3

)

(15

)

150,998

98,576

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

151,001

31,249

182,250

Bank overdrafts

(3

)

(8,334

)

(8,337

)

150,998

22,915

173,913

Liquid resources

Current asset investments

75,799

130,303

206,102

75,799

130,303

206,102

Debt

Finance leases

(30,706

)

8,013

(22,693

)

(30,706

)

8,013

(22,693

)

Total

196,091

161,231

357,322

1.	STATUTORY INFORMATION

CFM 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.

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

Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The directors take great comfort from the positive results achieved in 2024 and thus continue to adopt the going concern basis of accounting in preparing the financial statements.

Basis of consolidation

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination overt the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination inclose the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted fro at cost less impairment.

The consolidated financial statements incorporate those of CFM Holdings Limited and all of its subsidiaries (ie. entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.

All financial statement are made up to 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates. In the group financial statements, associates are accounted for using the equity method.

Turnover

Turnover represents amounts receivable for services net of VAT and trade discounts.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

Intangible assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are subsequently measured at cost less any accumulated amortisation or revalued to fair value.

Tangible fixed assets

Tangible fixed assets are initially measured at cost, and subsequently measured at cost less depreciation and impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures and fittings 25% straight line

Computers 25% straight line

Motor vehicles 25% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to the profit or loss account.

Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

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

An associate is an entity being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group's share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss.If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible ot estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current marker assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount fo the asset (or generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.