REGISTERED NUMBER: 14173296 (England and Wales)

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements for the Year Ended 31 December 2024

for

IMS Euro Group Ltd

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

5

Consolidated Income Statement

9

Consolidated Other Comprehensive Income

10

Consolidated Balance Sheet

11

Company Balance Sheet

12

Consolidated Statement of Changes in Equity

13

Company Statement of Changes in Equity

14

Consolidated Cash Flow Statement

15

Notes to the Consolidated Cash Flow Statement

16

Notes to the Consolidated Financial Statements

17

DIRECTORS:

Mr B A I Murray

Mr S Collard

REGISTERED OFFICE:

Europa Business Park

Bird Hall Lane

Cheadle Heath

Stockport

Cheshire

SK3 0XA

REGISTERED NUMBER:

14173296 (England and Wales)

AUDITORS:

Harts Limited

Chartered Accountants and Statutory Auditors

Westminster House

10 Westminster Road

Macclesfield

Cheshire

SK10 1BX

The directors presents their strategic report of the group for the 12 months ended 31 December 2024.

REVIEW OF BUSINESS

Turnover increased again year on year, up £5m to £32m. IMS continues to win market share, through providing a compelling combination of excellent customer service, and high quality, value for money products.

Profitability also increased with profit before tax increasing by £0.5m to £2.63m, enabling IMS to continue to reinvest in its people and infrastructure, ensuring it has a robust and efficient platform for continued growth.

As one would expect, working capital has increased to take account of this growth in sales. Debtors levels are consistently between £6m and £7m in both years, whilst careful stock management has enabled stock levels to fall by £0.7m to £5m, despite the higher level of sales. IMS continues to have the breadth and depth of stock to allow it to provide customers with a One Stop Shop for medical consumables products.

Cash generated from operations in the year was £5.1m in 2024, versus £1.9m in the prior year.

The Group's Dutch subsidiary, IMS (Europe) BV, commenced trading in the year. IMS intends to use this subsidiary to roll out its unique and highly scalable business model into the receptive European market. As anticipated this subsidiary was loss making in the year.

PRINCIPAL RISKS AND UNCERTAINTIES

Price volatility, product shortages and delay on imports are still a risk as a result of the Ukraine War and the conflict in the Middle East, however the business has a strong and diverse supply base to mitigate this risk.

The company uses daily, weekly and monthly Key Performance Indicators to monitor profitability and liquidity. Examples of these KPIs are Daily Sales, Product margin percentage, Stock days, Trade debtor days and Trade creditor days.

Key performance indicator

2024

2023

Gross profit %

32.6%

30.5%

Profit before tax %

8.1%

7.9%

Trade debtor days

39.7 days

55.6 days

Trade creditor days

48.6 days

39.9 days

Stock trading ratio %

23.1%

30.1%

Currency fluctuations are managed by maintaining reserves of the major trading currencies.

LEGISLATIVE RISKS

All suppliers and products purchased comply with existing legislation.

FINANCIAL RISKS

The company and its divisions continue to be financially strong, generating significant profit and cashflow, adding to an already strong balance sheet.

ECONOMIC RISKS

The company and its divisions are well placed to address future economic challenges through diversification into new markets, tight cost control and increasing liquidity.

INFORMATION SECURITY RISK

Loss of the IT network or data held within it could result in significant reputational and financial damage. The Group's IT systems are all cloud-based and therefore can be accessed from any location with an internet connection. Access to the Group's systems requires multi-factor authentication and firewall software is in place to restrict the imp[act of cyber-attacks. Regular notifications are sent to staff regarding the importance of remaining vigilant of phishing e-mails.

ON BEHALF OF THE BOARD:

Mr B A I Murray - Director

11 September 2025

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

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of a supplier of medical consumables to the veterinary market.

DIVIDENDS

The total distribution of dividends for the year ended 31 December 2024 was £252,977 (2023: £257,580).

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.

DIRECTOR

Mr D W Shamot held office throughout the whole of the current period, resigning on 23rd April 2025. On this same date, Mr B A I Murray and Mr S Collard were appointed directors of the company.

DISCLOSURE IN THE STRATEGIC REPORT

In accordance with section 414A of the Companies Act 2006, the group has prepared a strategic report which can be found on page 2 and which includes a fair review of the group’s business and a description of the principal risks and uncertainties facing the group.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

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

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

ON BEHALF OF THE BOARD:

Mr B A I Murray - Director

11 September 2025

Opinion

We have audited the financial statements of IMS Euro Group Ltd (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 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.

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

The primary responsibility for the prevention and detection of non-compliance with laws and regulations, including fraud, rests with both those charged with governance of the entity and management.

We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and considered acts by the company that were contrary to these laws and regulations, including fraud.

We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of an override of controls) and determined that the principle risks were related to revenue recognition and management override of controls. We also determined that there is a risk of inappropriate journal entries being included.

Appropriate procedures performed by the engagement team included:

- Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations;

- Challenging the assumptions and judgements made by management in their significant accounting estimates;

- Reviewing the minutes of meetings of management and/or the Board of Directors;

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

- Performing analytical procedures to identify and unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.

There are inherent limitations in the audit procedures described above. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it. 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 inspection of regulatory and legal correspondence, if any. 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, intentional misrepresentation or through collusion.

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations that could materially impact the financial statements.

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.

Melissa Bowers FCCA (Senior Statutory Auditor)

for and on behalf of Harts Limited

Chartered Accountants and Statutory Auditors

Westminster House

10 Westminster Road

Macclesfield

Cheshire

SK10 1BX

12 September 2025

TURNOVER

3

32,333,112

27,228,601

Cost of sales

(21,805,079

)

(18,929,248

)

GROSS PROFIT

10,528,033

8,299,353

Administrative expenses

(7,990,206

)

(6,156,871

)

2,537,827

2,142,482

Other operating income

69,057

7,328

OPERATING PROFIT

5

2,606,884

2,149,810

Interest receivable and similar income

33,486

13,434

2,640,370

2,163,244

Interest payable and similar expenses

7

(5,754

)

-

PROFIT BEFORE TAXATION

2,634,616

2,163,244

Tax on profit

8

(1,130,716

)

(772,838

)

PROFIT FOR THE FINANCIAL YEAR

1,503,900

1,390,406

Profit attributable to:

Owners of the parent

1,435,793

1,339,991

Non-controlling interests

68,107

50,415

1,503,900

1,390,406

PROFIT FOR THE YEAR

1,503,900

1,390,406

OTHER COMPREHENSIVE INCOME

Translation reserve movements

19,198

-

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

19,198

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,523,098

1,390,406

Total comprehensive income attributable to:

Owners of the parent

1,454,991

1,339,991

Non-controlling interests

68,107

50,415

1,523,098

1,390,406

FIXED ASSETS

Intangible assets

11

3,413,385

4,522,220

Tangible assets

12

141,860

60,481

Investments

13

-

-

3,555,245

4,582,701

CURRENT ASSETS

Stocks

14

5,044,530

5,694,475

Debtors

15

6,390,359

6,868,757

Cash at bank and in hand

5,019,376

1,277,986

16,454,265

13,841,218

CREDITORS

Amounts falling due within one year

16

(5,459,889

)

(5,156,960

)

NET CURRENT ASSETS

10,994,376

8,684,258

TOTAL ASSETS LESS CURRENT LIABILITIES

14,549,621

13,266,959

PROVISIONS FOR LIABILITIES

19

(21,607

)

(9,066

)

NET ASSETS

14,528,014

13,257,893

CAPITAL AND RESERVES

Called up share capital

20

12,000,000

12,000,000

Retained earnings

21

2,279,425

1,077,411

SHAREHOLDERS' FUNDS

14,279,425

13,077,411

NON-CONTROLLING INTERESTS

22

248,589

180,482

TOTAL EQUITY

14,528,014

13,257,893

The financial statements were approved by the Board of Directors and authorised for issue on 11 September 2025 and were signed on its behalf by:

Mr B A I Murray - Director

Mr S Collard - Director

FIXED ASSETS

Intangible assets

11

-

-

Tangible assets

12

-

-

Investments

13

12,000,000

12,000,000

12,000,000

12,000,000

CURRENT ASSETS

Cash at bank

18

-

CREDITORS

Amounts falling due within one year

16

-

(10,000

)

NET CURRENT ASSETS/(LIABILITIES)

18

(10,000

)

TOTAL ASSETS LESS CURRENT LIABILITIES

12,000,018

11,990,000

CAPITAL AND RESERVES

Called up share capital

20

12,000,000

12,000,000

Retained earnings

21

18

(10,000

)

SHAREHOLDERS' FUNDS

12,000,018

11,990,000

Company's profit/(loss) for the financial year

10,018

(5,000

)

The financial statements were approved by the Board of Directors and authorised for issue on 11 September 2025 and were signed on its behalf by:

Mr B A I Murray - Director

Mr S Collard - Director

Called up

share

Retained

Non-controlling

Total

capital

earnings

Total

interests

equity

£

£

£

£

£

Balance at 1 January 2023

12,000,000

(5,000

)

11,995,000

130,067

12,125,067

Changes in equity

Dividends

-

(257,580

)

(257,580

)

-

(257,580

)

Total comprehensive income

-

1,339,991

1,339,991

50,415

1,390,406

Balance at 31 December 2023

12,000,000

1,077,411

13,077,411

180,482

13,257,893

Changes in equity

Dividends

-

(252,977

)

(252,977

)

-

(252,977

)

Total comprehensive income

-

1,454,991

1,454,991

68,107

1,523,098

Balance at 31 December 2024

12,000,000

2,279,425

14,279,425

248,589

14,528,014

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

12,000,000

(5,000

)

11,995,000

Changes in equity

Total comprehensive income

-

(5,000

)

(5,000

)

Balance at 31 December 2023

12,000,000

(10,000

)

11,990,000

Changes in equity

Total comprehensive income

-

10,018

10,018

Balance at 31 December 2024

12,000,000

18

12,000,018

Cash flows from operating activities

Cash generated from operations

1

5,070,778

1,873,067

Interest paid

(5,754

)

-

Tax paid

(920,893

)

(621,993

)

Net cash from operating activities

4,144,131

1,251,074

Cash flows from investing activities

Purchase of intangible fixed assets

(34,017

)

(12,616

)

Purchase of tangible fixed assets

(119,006

)

(36,140

)

Sale of tangible fixed assets

8,857

-

Interest received

33,486

13,434

Net cash from investing activities

(110,680

)

(35,322

)

Cash flows from financing activities

Equity dividends paid

(252,977

)

(257,580

)

Net cash from financing activities

(252,977

)

(257,580

)

Increase in cash and cash equivalents

3,780,474

958,172

Cash and cash equivalents at beginning of year

2

1,238,902

280,730

Cash and cash equivalents at end of year

2

5,019,376

1,238,902

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

31.12.24

31.12.23

£

£

Profit before taxation

2,634,616

2,163,244

Depreciation charges

1,180,433

1,159,398

Profit on disposal of fixed assets

(7,593

)

-

Remaining translation gain in year

17,980

-

Other adjustments

6,320

-

Finance costs

5,754

-

Finance income

(33,486

)

(13,434

)

3,804,024

3,309,208

Decrease/(increase) in stocks

649,945

(1,780,281

)

Decrease/(increase) in trade and other debtors

478,398

(2,063,273

)

Increase in trade and other creditors

138,411

2,407,413

Cash generated from operations

5,070,778

1,873,067

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

5,019,376

1,277,986

Bank overdrafts

-

(39,084

)

5,019,376

1,238,902

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

1,277,986

280,730

Bank overdrafts

(39,084

)

-

1,238,902

280,730

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

1,277,986

3,741,390

5,019,376

Bank overdrafts

(39,084

)

39,084

-

1,238,902

3,780,474

5,019,376

Total

1,238,902

3,780,474

5,019,376

1.	STATUTORY INFORMATION

IMS Euro Group Ltd 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.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the group's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

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

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows:

A provision in the amount of £303,408 (2023: £319,336) for old and obsolete stock has been estimated by the directors to ensure that the stock is correctly stated at the lower of cost and new realisable value.

Turnover

The group recognises the turnover from the sale of goods when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the future economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Turnover is normally recognised on despatch of goods or the agreed transfer of ownership if inventory management is requested by the customer on premises at the group.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2022, is being amortised evenly over its estimated useful life of five years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Patents and licences are being amortised evenly over their estimated useful life of four years.

Computer software is being amortised evenly over its estimated useful life of four years.

Tangible fixed assets

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

Plant and machinery

-

50% on cost, 33% on reducing balance, 25% on reducing balance and 20% on reducing balance

Fixtures and fittings

-

50% on cost, 33% on reducing balance, 25% on reducing balance and 20% on reducing balance

Motor vehicles

-

25% on reducing balance

Stocks

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

Stocks are measured using the weighted average policy.

Financial instruments

The company and the group have elected to apply the provisions of Section 11 ‘Basic Financial Instruments’.

Financial instruments are recognised in the group's balance sheet when it becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Taxation

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

Current taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

Foreign currencies

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

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

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.