REGISTERED NUMBER: 01467799 (England and Wales)

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

FOR

YUKEN EUROPE LTD

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

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:

A Miyasaka

P Miller

H Odashima

REGISTERED OFFICE:

51 Spindus Road

Speke Hall Industrial Estate

Liverpool

L24 1YA

REGISTERED NUMBER:

01467799 (England and Wales)

AUDITORS:

Harold Sharp Limited

Statutory Auditors and Chartered Accountants

5 Brooklands Place

Brooklands Road

Sale

Cheshire

M33 3SD

The directors present their strategic report of the company and the group for the year ended 31 March 2025.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of the assembly and distribution of hydraulic equipment together with customer specific project work.

REVIEW OF BUSINESS

For the financial year 2024/25 sales remain fairly stable. Project sales have been very good which has offset the slow down in component sales. Component sales in mainland Europe especially in the Benelux have suffered due to Yuken Kogyo not been able to provide MFFd documentation which is required with government and civil projects.

In the hydraulics industry, mobile sales remain constant with a slow down on industrial sales. This is highlighted at our major sales partner in Germany who is 75% down on industrial sales since 2022/23.Competitors in the market have seen a reduction in sales and have mitigated this by redundancies.

The continuing war in the Ukraine, high energy costs and high interest rates have impacted growth in the industrial hydraulic market across the UK and EU. We are cutting costs where possible but without affecting our current business strategy. We are also hoping to increase our Sales team in the near future by recruiting from one of our competitors, a major global player.

PRINCIPAL RISKS AND UNCERTAINTIES

The company makes a number of sales and purchases overseas and is exposed to exchange rate risk. The company has entered into hedging arrangements to mitigate this financial risk.

ON BEHALF OF THE BOARD:

P Miller - Director

22 September 2025

The directors present their report with the financial statements of the company and the group for the year ended 31 March 2025.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of the assembly and distribution of hydraulic equipment together with customer specific project work.

DIVIDENDS

No dividends will be distributed for the year ended 31 March 2025 (2024: £nil).

DIRECTORS

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

A Miyasaka

P Miller

Other changes in directors holding office are as follows:

E Saunders - resigned 30 April 2024

H Odashima was appointed as a director after 31 March 2025 but prior to the date of this report.

H Nagahisa ceased to be a director after 31 March 2025 but prior to the date of this report.

DISCLOSURE IN THE STRATEGIC REPORT

The company has chosen to set out information in respect of financial risk management and key performance indicators in its strategic report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

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

-	select suitable accounting policies and then apply them consistently;

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

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Harold Sharp Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

P Miller - Director

22 September 2025

Opinion

We have audited the financial statements of Yuken Europe Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2025 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 March 2025 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 three, 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:

As part of our planning process:

- We enquired of management the systems and controls the company has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud.

- We obtained an understanding of the legal and regulatory frameworks applicable to the company. We determined that the following were most relevant: FRS 102, Companies Act 2006, health and safety, and employment law.

- We considered the incentives and opportunities that exist in the company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly.

- Using our knowledge of the company, together with the discussions held with the company at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.

The key procedures we undertook to detect irregularities including fraud during the course of the audit included:

- Identifying and testing journal entries and the overall accounting records, in particular those that were significant and unusual.

- Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.

- Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates.

- Assessing the extent of compliance, or lack of, with the relevant laws and regulations in particular those that are central to the entities ability to continue in operation.

- Testing key revenue lines, in particular cut-off, for evidence of management bias.

- Obtaining third-party confirmation of material bank balances.

- Documenting and verifying all significant related party and consolidated balances and transactions.

- Reviewing documentation such as the company board minutes, correspondence with solicitors, for discussions of irregularities including fraud.

- Testing all material consolidation adjustments.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the directors and management.

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.

Frederick Norman (Senior Statutory Auditor)

for and on behalf of Harold Sharp Limited

Statutory Auditors and Chartered Accountants

5 Brooklands Place

Brooklands Road

Sale

Cheshire

M33 3SD

22 September 2025

TURNOVER

3

3,234,051

3,444,092

Cost of sales

(1,858,039

)

(2,065,502

)

GROSS PROFIT

1,376,012

1,378,590

Administrative expenses

(1,251,171

)

(1,272,467

)

124,841

106,123

Other operating income

(44,184

)

(7,525

)

OPERATING PROFIT

5

80,657

98,598

Interest receivable and similar income

3,722

3,875

84,379

102,473

Interest payable and similar expenses

6

(25,813

)

(24,331

)

PROFIT BEFORE TAXATION

58,566

78,142

Tax on profit

7

17,940

(22,967

)

PROFIT FOR THE FINANCIAL YEAR

76,506

55,175

Profit attributable to:

Owners of the parent

76,506

55,175

PROFIT FOR THE YEAR

76,506

55,175

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

76,506

55,175

Total comprehensive income attributable to:

Owners of the parent

76,506

55,175

FIXED ASSETS

Tangible assets

9

342,285

359,913

Investments

10

-

-

342,285

359,913

CURRENT ASSETS

Stocks

11

1,548,149

1,484,230

Debtors

12

682,853

533,026

Cash at bank and in hand

133,844

83,577

2,364,846

2,100,833

CREDITORS

Amounts falling due within one year

13

(1,328,308

)

(1,118,937

)

NET CURRENT ASSETS

1,036,538

981,896

TOTAL ASSETS LESS CURRENT LIABILITIES

1,378,823

1,341,809

CREDITORS

Amounts falling due after more than one year

14

(32,178

)

(70,656

)

PROVISIONS FOR LIABILITIES

19

(30,827

)

(31,841

)

NET ASSETS

1,315,818

1,239,312

CAPITAL AND RESERVES

Called up share capital

20

300,000

300,000

Retained earnings

21

1,015,818

939,312

SHAREHOLDERS' FUNDS

1,315,818

1,239,312

The financial statements were approved by the Board of Directors and authorised for issue on 22 September 2025 and were signed on its behalf by:

P Miller - Director

FIXED ASSETS

Tangible assets

9

317,479

323,953

Investments

10

6,570

6,570

324,049

330,523

CURRENT ASSETS

Stocks

11

1,489,838

1,420,833

Debtors

12

662,420

522,302

Cash at bank and in hand

77,579

19,363

2,229,837

1,962,498

CREDITORS

Amounts falling due within one year

13

(1,276,128

)

(1,065,684

)

NET CURRENT ASSETS

953,709

896,814

TOTAL ASSETS LESS CURRENT LIABILITIES

1,277,758

1,227,337

CREDITORS

Amounts falling due after more than one year

14

(32,178

)

(70,656

)

PROVISIONS FOR LIABILITIES

19

(30,827

)

(31,841

)

NET ASSETS

1,214,753

1,124,840

CAPITAL AND RESERVES

Called up share capital

20

300,000

300,000

Retained earnings

21

914,753

824,840

SHAREHOLDERS' FUNDS

1,214,753

1,124,840

Company's profit for the financial year

89,913

42,653

The financial statements were approved by the Board of Directors and authorised for issue on 22 September 2025 and were signed on its behalf by:

P Miller - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2023

300,000

884,137

1,184,137

Changes in equity

Total comprehensive income

-

55,175

55,175

Balance at 31 March 2024

300,000

939,312

1,239,312

Changes in equity

Total comprehensive income

-

76,506

76,506

Balance at 31 March 2025

300,000

1,015,818

1,315,818

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2023

300,000

782,187

1,082,187

Changes in equity

Total comprehensive income

-

42,653

42,653

Balance at 31 March 2024

300,000

824,840

1,124,840

Changes in equity

Total comprehensive income

-

89,913

89,913

Balance at 31 March 2025

300,000

914,753

1,214,753

Cash flows from operating activities

Cash generated from operations

1

131,812

(48,170

)

Interest paid

(22,780

)

(21,216

)

Interest element of hire purchase payments paid

(3,033

)

(3,115

)

Taxation refund

23,054

-

Net cash from operating activities

129,053

(72,501

)

Cash flows from investing activities

Purchase of tangible fixed assets

(28,577

)

(13,203

)

Interest received

3,722

3,875

Net cash from investing activities

(24,855

)

(9,328

)

Cash flows from financing activities

Loan repayments in year

(35,018

)

(35,854

)

Capital repayments in year

(18,913

)

(20,673

)

Net cash from financing activities

(53,931

)

(56,527

)

Increase/(decrease) in cash and cash equivalents

50,267

(138,356

)

Cash and cash equivalents at beginning of year

2

83,577

221,933

Cash and cash equivalents at end of year

2

133,844

83,577

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

2025

2024

£

£

Profit before taxation

58,566

78,142

Depreciation charges

55,249

45,288

Finance costs

25,813

24,331

Finance income

(3,722

)

(3,875

)

135,906

143,886

(Increase)/decrease in stocks

(63,919

)

339,478

(Increase)/decrease in trade and other debtors

(147,630

)

185,790

Increase/(decrease) in trade and other creditors

207,455

(717,324

)

Cash generated from operations

131,812

(48,170

)

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 March 2025

31/3/25

1/4/24

£

£

Cash and cash equivalents

133,844

83,577

Year ended 31 March 2024

31/3/24

1/4/23

£

£

Cash and cash equivalents

83,577

221,933

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1/4/24

Cash flow

At 31/3/25

£

£

£

Net cash

Cash at bank and in hand

83,577

50,267

133,844

83,577

50,267

133,844

Debt

Finance leases

(52,362

)

6,834

(45,528

)

Debts falling due within 1 year

(35,000

)

-

(35,000

)

Debts falling due after 1 year

(49,624

)

35,018

(14,606

)

(136,986

)

41,852

(95,134

)

Total

(53,409

)

92,119

38,710

1.	STATUTORY INFORMATION

Yuken Europe Limited is a private company limited by shares, incorporated in England and Wales. The company's registered number is 01467799 and registered office is 51 Spindus Road, Speke Hall Industrial Estate. Liverpool, L24 1YA.

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 functional and presentation currency is £ sterling.

Basis of consolidation

The consolidated financial statements incorporate the results of Yuken Europe Limited and its subsidiary undertaking as at 31 March 2025 using the acquisition method of accounting. The results of the subsidiary undertaking are included from the date of acquisition. The subsidiary prepares financial statements to 31 December in accordance with Czech Republic requirements.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the company'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.

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.

Trade Debtors Recoverability

Amounts recoverable on trade debtors are initially measured at the transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled and any impairment losses. The directors make estimates as to the recoverability of these debts and provide for them accordingly.

Work In Progress

An amount is provided for work in progress to ensure that the relevant proportion of income is accounted for in any period. The key areas of estimation uncertainty involves the determination of expected level of completion. Factors taken into account in reaching their decision include the actual outcome of previous similar projects and job by job appraisal of performance to date, together with future expectations.

Provisions

A provision is recognised in the balance sheet when the entity has a present legal or constructive obligation as a result of a past event, that can be reliably measured and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are recognised at the best estimate of the amount required to settle the obligation at the reporting date.

Turnover

Turnover represents the value, excluding value added tax, of goods and services supplied to customers during the year.

Revenue is recognised when goods have been despatched to customers. Revenue from contracts for the provision of 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. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Leasehold property

-

2% on cost

Plant and machinery

-

15% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

33% on cost

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses.

At each balance sheet date the company reviews the carrying amount of its tangible fixed assets to determine whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss, if any.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. Impairment loss is recognised as an expense immediately.

Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised as income immediately.

Stocks

Stocks are valued at the lower of cost and estimated selling price less costs to sell, after making due allowance for obsolete and slow moving items.

The majority of the group's stocks are imported from overseas and subject to lengthy periods of transportation. It is the policy of the group to include as stock, all goods ordered from and shipped by suppliers, regardless of its location at the balance sheet date.

Work in progress is valued on the basis of direct costs plus attributable overheads based on a normal level of activity, according to the stage of completion. Provision is made for any foreseeable losses where appropriate. An element of profit is included in the valuation of work in progress at the year end date in accordance with the stage of completion of the project.

Financial instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' of FRS 102 to all of its financial instruments.

Financial instruments are recognised when the company 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.

Basic financial assets, which include trade debtors, other debtors, amounts owed from group undertakings and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method. Financial assets classified as receivable within one year are not amortised.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including trade creditors, hire purchase contracts, amounts owed to group undertakings, other creditors, bank loans and bank overdraft that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest.

Financial liabilities are derecognised when, and only when, the company's contractual obligations are discharged, cancelled, or they expire.

Foreign currencies

Balances at the year end denominated 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.

Leasing

Property, plant and equipment obtained under hire purchase contracts or finance leases are capitalised and depreciated in the same manner as other tangible fixed assets. The related obligations, net of future finance charges are included in creditors.

Rentals paid under operating leases are charged to profit and loss account 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 for the benefit of its employees. The assets of the scheme are held separately from those of the company in an independently administered fund. Contributions payable to the group's pension scheme are recognised in the profit and loss account when due.

Investments

Investments in shares are included at fair value, less provision for impairment.

Deferred tax

Deferred taxation is provided on the liability method to take account of timing differences between the treatment of certain items for accounts purposes and their treatment for tax purposes.

Tax deferred or accelerated is accounted for in respect of all material timing differences.