REGISTERED NUMBER: 06603363 (England and Wales)

LONDON METALS HOLDINGS LIMITED

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

AUDITED

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST DECEMBER 2024

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Income Statement

10

Consolidated Other Comprehensive Income

11

Consolidated Statement of Financial Position

12

Company Statement of Financial Position

13

Consolidated Statement of Changes in Equity

14

Company Statement of Changes in Equity

15

Consolidated Statement of Cash Flows

16

Notes to the Consolidated Statement of Cash Flows

17

Notes to the Consolidated Financial Statements

18

DIRECTORS:

Mr D P de Haas

Mr P de Haas

Mr J Olsburgh

Mr D Furrer

SECRETARY:

Mr D M Furrer

REGISTERED OFFICE:

Angel Waterside

10 Graham Street

London

N1 8GB

REGISTERED NUMBER:

06603363 (England and Wales)

SENIOR STATUTORY AUDITOR:

Steven Davies

AUDITORS:

Carston ETL

Statutory Auditor

Second Floor

34 Lime Street

London

EC3M 7AT

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

REVIEW OF BUSINESS

The results for the year and financial position of the company are shown in the annexed financial statements.

The company's key performance indicators are as follows:

2024

2023

Turnover

£26,505,921

£22,552,212

Gross profit margins

7.24%

6.70%

Profit/(Loss) before tax

£330,335

£130,762

Liquidity ratio (Current assets/current liabilities)

432%

540%

During the year turnover increased by 18%, with an increase in gross margins when compared to the previous year.

At the year end, the stocks decreased from £1,116,842 to £707,160. There was an increase in trade debtors from £4,294,990 to £6,478,362 and an increase in trade creditors from £787,619 to £840,735. The cash balances held with bank decreased from £1,268,093 to £301,912.

The comparison of turnover, gross profit margins, profit before tax and liquidity ratio with last year are key performance indicators for the company as they measure progress and development of the business.

The company remains committed to tight controls on potential risk and exposure.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks of the company are:-

Credit Risk:

Credit risk arises principally from the company's trade receivables, prepayments for stocks, and cash and cash equivalents. It is the risk that the counterparty fails to discharge its obligations in respect of the instrument. The company's exposure to credit risk represents its receivables as disclosed.

Prior to accepting new customers, a credit check is carried out. Based on this information, credit limits and payment terms are established and authorised by the directors. The directors review monthly the trade receivable balance and ageing profile of each individual customer. No individual trade receivable balance is considered to represent a significant portion of the total balance. The directors believe that credit risk is minimised by credit insurance and regular reviews and the diversification of trade receivables across a large section of customers and different geographical regions.

Liquidity risk:

Liquidity risk arises from the company's management of working capital and the finance charges and principal repayments on its debt instruments.

The company's financial assets and liabilities were due within one year throughout the review period. The company's policy is to ensure that it will always have sufficient cash to allow it to meet its liabilities when they become due. The directors review the cash availability on a regular basis to determine whether the company has sufficient cash reserves and facilities to meet future working capital requirements and to take advantage of the business opportunities.

Market risk:

Price risk is the risk of loss arising from adverse movements in the level or volatility of market prices. The company monitors this risk on a daily basis and when appropriate by hedging on the London Metal Exchange. The impact of such movements in market price can mean that the net realisable value of inventories falls below that of the original cost, which results in provisions being made against such stock items in order to include them in the financial statements at the lower of cost and net realisable value in the accordance with the company's accounting policies.

Interest rate risk:

Interest rate risk arises from interest bearing financial liabilities of the company. Interest is payable on bank overdrafts at an agreed variable rate.

Currency risk:

The company's trading activities exposes it to currency risk relating to its monetary assets and liabilities. The company's policy is to economically hedge currency risk using forward currency contracts for foreign currency receivables and payables. Forward foreign currency contracts are also used for currency exposures arising on the expected sales and purchases for the following period.

The directors are satisfied with the position of the company at the year end and are confident that it is well placed to take advantage of improved market conditions.

ON BEHALF OF THE BOARD:

Mr P de Haas - Director

15th September 2025

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

PRINCIPAL ACTIVITY

The principal activity of the company during the year has been that of international commodity traders in non-ferrous

scrap, residues, ferro-alloys, minor metals and chemicals.

DIVIDENDS

The total distribution of dividends for the year ended 31st December 2024 will be £nil (2023: £100,000).

FUTURE DEVELOPMENTS

There are no plans to change the nature of the group's activities, which are considered to be satisfactory.

DIRECTORS

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

Mr D P de Haas

Mr P de Haas

Other changes in directors holding office are as follows:

Mr J Olsburgh and Mr D Furrer were appointed as directors after 31st December 2024 but prior to the date of this report.

FINANCIAL INSTRUMENTS

The company makes little use of the financial instruments other than an operation bank account and forward currency contracts. Therefore its exposure to price risk, credit risk and cash flow risk is not material for the assessment of the assets, liabilities, financial position and profit or loss of the company.

DONATIONS AND EXPENSES

During the year, the company made charitable donations of £500 (2023: £6,500).

POST BALANCE SHEET EVENTS

No matters or circumstances have arisen since the end of the financial year which significantly affect or may significantly affect the operations or the state of affairs of the company in the financial year subsequent to the financial year ended 31 December 2024.

GOING CONCERN

After making appropriate enquiries, the directors have reasonable expectation the the group has adequate resources to continue in operational existence for the foreseeable future. For this reason, the directors have adopted the going concern basis in preparing the group's consolidated financial statements.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he 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

The auditors, Carston ETL, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr P de Haas - Director

15th September 2025

Opinion

We have audited the financial statements of London Metals Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31st December 2024 which comprise the Consolidated Income Statement, Consolidated Other 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 31st 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 pages four and 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.

Extent to which the audit is capable of detecting irregularities, including fraud

We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We design our procedures so as to obtain sufficient appropriate audit evidence that the financial statements are not

materially misstated due to non-compliance with laws and regulations or due to fraud or error.

We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations - this responsibility lies with management with the oversight of the Directors.

Based on our understanding of the Company and industry, discussions with management and directors we identified financial reporting standards and Companies Act 2006 as having a direct effect on the amounts and disclosures in the financial statements.

As part of the engagement team discussion about how and where the Company's financial statements may be materially misstated due to fraud, we did not identify any areas with an increased risk of fraud.

Our audit procedures included:

- completing a risk-assessment process during our planning for this audit that specifically considered the risk of fraud;

- enquiry of management about the Company's policies, procedures and related controls regarding compliance with laws and regulations and if there are any known instances of non-compliance;

- examining supporting documents for all material balances, transactions and disclosures;

- enquiry of management, about litigation and claims and inspection of relevant correspondence;

- analytical procedures to identify any unusual or unexpected relationships;

- specific audit testing on and review of areas that could be subject to management override of controls and potential bias, most notably around the key judgments and estimates, including the carrying value of accruals, provisions, investments, recoverability of trade debtors and revenue recognition;

- considering management override of controls outside of the normal operating cycles including testing the

appropriateness of journal entries recorded in the general ledger and other adjustments made in the preparation of the financial statements including evaluating the business rationale of significant transactions, outside the normal course of business.

Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements of the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK).

The potential effects of inherent limitations are particularly significant in the case of misstatement resulting from fraud because fraud may involve sophisticated and carefully organised schemes designed to conceal it, including deliberate failure to record transactions, collusion or intentional misrepresentations being made to us.

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.

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.

Steven Davies (Senior Statutory Auditor)

for and on behalf of Carston ETL

Statutory Auditor

Second Floor

34 Lime Street

London

EC3M 7AT

17th September 2025

TURNOVER

3

26,505,921

22,552,212

Cost of sales

24,585,365

21,030,077

GROSS PROFIT

1,920,556

1,522,135

Administrative expenses

1,563,351

1,392,470

357,205

129,665

Other operating income

-

1,015

OPERATING PROFIT

5

357,205

130,680

Interest receivable and similar income

6

730

10,667

357,935

141,347

Interest payable and similar expenses

7

27,601

10,586

PROFIT BEFORE TAXATION

330,334

130,761

Tax on profit

8

92,827

152,157

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

237,507

(21,396

)

Profit/(loss) attributable to:

Owners of the parent

237,507

(21,396

)

PROFIT/(LOSS) FOR THE YEAR

237,507

(21,396

)

OTHER COMPREHENSIVE INCOME

Deferred tax on revaluation

-

115,000

Unrealised gain on rev of Leasehold pro

-

345,000

Transfer of dep on revaluation

-

13,885

Income tax relating to components of other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

-

473,885

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

237,507

452,489

Total comprehensive income attributable to:

Owners of the parent

237,507

452,489

FIXED ASSETS

Tangible assets

11

2,095,645

2,120,605

Investments

12

-

-

2,095,645

2,120,605

CURRENT ASSETS

Stocks

13

707,160

1,116,482

Debtors

14

6,856,217

4,713,248

Cash at bank and in hand

302,012

1,268,192

7,865,389

7,097,922

CREDITORS

Amounts falling due within one year

15

1,820,173

1,314,479

NET CURRENT ASSETS

6,045,216

5,783,443

TOTAL ASSETS LESS CURRENT LIABILITIES

8,140,861

7,904,048

PROVISIONS FOR LIABILITIES

18

296,962

297,656

NET ASSETS

7,843,899

7,606,392

CAPITAL AND RESERVES

Called up share capital

19

100

100

Revaluation reserves

20

1,206,336

1,219,158

Other reserves

20

1,709,355

1,709,355

Retained earnings

20

4,928,108

4,677,779

SHAREHOLDERS' FUNDS

7,843,899

7,606,392

The financial statements were approved by the Board of Directors and authorised for issue on 15th September 2025 and were signed on its behalf by:

Mr P de Haas - Director

FIXED ASSETS

Tangible assets

11

-

-

Investments

12

2,161,645

2,161,645

2,161,645

2,161,645

CURRENT ASSETS

Cash at bank

100

100

NET CURRENT ASSETS

100

100

TOTAL ASSETS LESS CURRENT LIABILITIES

2,161,745

2,161,745

CAPITAL AND RESERVES

Called up share capital

19

100

100

Retained earnings

20

2,161,645

2,161,645

SHAREHOLDERS' FUNDS

2,161,745

2,161,745

Company's profit for the financial year

-

100,000

The financial statements were approved by the Board of Directors and authorised for issue on 15th September 2025 and were signed on its behalf by:

Mr P de Haas - Director

Called up

share

Retained

Revaluation

Other

Total

capital

earnings

reserves

reserves

equity

£

£

£

£

£

Balance at 1st January 2023

100

4,674,311

870,137

1,709,355

7,253,903

Changes in equity

Dividends

-

(100,000

)

-

-

(100,000

)

Total comprehensive income

-

103,468

349,021

-

452,489

Balance at 31st December 2023

100

4,677,779

1,219,158

1,709,355

7,606,392

Changes in equity

Total comprehensive income

-

250,329

(12,822

)

-

237,507

Balance at 31st December 2024

100

4,928,108

1,206,336

1,709,355

7,843,899

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st January 2023

100

2,161,645

2,161,745

Changes in equity

Dividends

-

(100,000

)

(100,000

)

Total comprehensive income

-

100,000

100,000

Balance at 31st December 2023

100

2,161,645

2,161,745

Changes in equity

Balance at 31st December 2024

100

2,161,645

2,161,745

Cash flows from operating activities

Cash generated from operations

1

(801,139

)

108,816

Interest paid

(27,601

)

(10,586

)

Tax paid

(34,616

)

(181,859

)

Net cash from operating activities

(863,356

)

(83,629

)

Cash flows from investing activities

Purchase of tangible fixed assets

(3,554

)

(20,971

)

Transfer of investment to cash at bank

-

906

Interest received

730

10,667

Net cash from investing activities

(2,824

)

(9,398

)

Cash flows from financing activities

Amount withdrawn by directors

(100,000

)

-

Equity dividends paid

-

(100,000

)

Net cash from financing activities

(100,000

)

(100,000

)

Decrease in cash and cash equivalents

(966,180

)

(193,027

)

Cash and cash equivalents at beginning of year

2

1,268,192

1,461,219

Cash and cash equivalents at end of year

2

302,012

1,268,192

1.	RECONCILIATION OF PROFIT/(LOSS) FOR THE FINANCIAL YEAR TO CASH GENERATED FROM OPERATIONS

2024

2023

£

£

Profit/(loss) for the financial year

237,507

(21,396

)

Depreciation charges

28,515

26,162

Finance costs

27,601

10,586

Finance income

(730

)

(10,667

)

Taxation

92,827

152,157

385,720

156,842

Decrease in stocks

409,322

912,925

Increase in trade and other debtors

(2,142,969

)

(1,125,447

)

Increase in trade and other creditors

546,788

164,496

Cash generated from operations

(801,139

)

108,816

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 31st December 2024

31/12/24

1/1/24

£

£

Cash and cash equivalents

302,012

1,268,192

Year ended 31st December 2023

31/12/23

1/1/23

£

£

Cash and cash equivalents

1,268,192

1,461,219

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

1,268,192

(966,180

)

302,012

1,268,192

(966,180

)

302,012

Total

1,268,192

(966,180

)

302,012

1.	STATUTORY INFORMATION

London Metals 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.

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

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

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 as modified by the revaluation of certain assets.

Basis of consolidation

The Group financial statements incorporate the results of London Metals Holdings Limited and all its subsidiaries. The accounting policies of the subsidiaries are consistent with the policies adopted by the Group for the purposes of the Group's consolidation.

The results of the subsidiary undertakings are included in the consolidated profit and loss account from the date the respective interests were acquired. London Metals Holdings Limited has taken advantage of the statutory exemption from presenting its own profit and loss account.

Significant judgements and estimates

The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will,by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of the assets and liabilities within the next financial year are addressed below.

(a) Useful economic lives of assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on future investments, economic utilisation and the physical condition of the assets.

(b) Impairment of debtors

The Group makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.

Turnover and revenue recognition

Turnover:

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

Revenue is recognised when the risks and rewards of ownership have substantively transferred to customers, regardless of whether legal title has transferred. This condition is normally met when the goods has been delivered or upon performance of services. The company sells a range of goods to a diversified base of customers around the world and, therefore, believes there is no material concentration of credit risk.

Tangible fixed assets

Long Leasehold is carried in the balance sheet at valuation less accumulated depreciation and Fixtures & fittings at cost.

Stocks

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

The cost includes an appropriate proportion of attributable overheads.

Derivative financial instruments

Derivative financial instruments are recognised at fair value using a valuation technique with any gains or losses being reported in profit or loss. Outstanding derivatives at reporting date are included under appropriate format heading depending on the nature of the derivative.

Taxation

Taxation for the year comprises current and deferred tax. 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 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.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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 statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Pension costs and other post-retirement benefits

The group operates defined contribution pension schemes. The assets of the schemes are held separately from those of the group's in independently administered funds and will have no legal or constuctive obligation to pay further amounts. Contribution to defined contribution pension schemes payable for the year are charged in the profit and loss account and recognised as an expense in the year.

Fixed asset investments - listed investments

Fixed asset investments comprise investments in equity instruments which are measured at fair value. Changes in fair value are recognised in the Income statement. Fair value is based on the market value of listed investments at the year end.

Dividends are taken to the profit and loss account when received.

Debtors and creditors receivable/payable within one year

Debtors:

Short term debtors are measured at transaction price, less any impairments.

Creditors:

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.