REGISTERED NUMBER: 15794239 (England and Wales)

Group Strategic Report,

Report of the Directors and

Consolidated Financial Statements

for the Period

22 June 2024 to 31 December 2024

for

Zarafa Holdco Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Profit and Loss Account

10

Consolidated Other Comprehensive Income

11

Consolidated Balance Sheet

12

Company Balance Sheet

13

Consolidated Statement of Changes in Equity

14

Company Statement of Changes in Equity

15

Consolidated Cash Flow Statement

16

Notes to the Consolidated Cash Flow Statement

17

Notes to the Consolidated Financial Statements

18

DIRECTORS:

D R Armitage

R D Armitage

REGISTERED OFFICE:

7 Hungate

Pickering

York

North Yorkshire

YO18 7DL

REGISTERED NUMBER:

15794239 (England and Wales)

SENIOR STATUTORY AUDITOR:

Phillipa Symington ACA, CA(SA)

AUDITORS:

Clive Owen LLP

Chartered Accountants

& Statutory Auditors

Oak Tree House, Harwood Road

Northminster Business Park

Upper Poppleton

York

YO26 6QU

The directors present their strategic report of the company and the group for the period 22 June 2024 to 31 December 2024.

REVIEW OF BUSINESS

The directors aim to present a balanced and comprehensive review of the development and performance of the business during the year and its position at the year end. Their review is consistent with the size and complexity of the business and is written in the context of the risks and uncertainties they face.

The income statement for the year is set out on page 10.

Part way through the financial year, Zarafa Holdco Ltd acquired group undertakings and as a result the consolidated position only reflects just under 3 months of group trading. It is worth highlighting the full year consolidated position compared to the previous period for a full reflection of group wide trading.

2024

2023

£

£

Turnover

9,994,533

8,891,810

Operating profit/(loss)

1,122,054

852,720

Profit/(loss) before tax

1,036,860

750,235

Equity shareholders' funds

8,804,543

9,188,838

Number of employees

97

105

The directors consider the increased turnover and profit on ordinary activities before taxation of £1,036,860 to be satisfactory when considered over the full 12 month period for the fully consolidated group.

During the year, the group continued to focus on developing its offering through continued investment in operations, people, learning and development, infrastructure and compliance.

PRINCIPAL RISKS AND UNCERTAINTIES

The principle risks and uncertainties facing the group are -

The group faces risks typical of the industry, including:

- Economic uncertainty, including the nature of the construction industry.

- Health and safety liability, due to the nature of working at height.

- Legislative changes with the impact of the Building Safety Act.

Risk is mitigated through robust procedures, group wide commitment to learning and development, insurance coverage, and diversification.

Competitive risk:

The group receives its income through a variety of markets and seeks to minimise its reliance on a particular sector. Should a fall occur in one sector the impact on turnover would be minimal by the spread of work into other sectors.

Exposure to credit risk:

Credit risk is the risk that one party to a financial instrument will cause a financial loss for that other party by failing to discharge an obligation. Group policies are aimed at minimising such losses, and require that customers provide a deposit advance when works are accepted. Deferred payments terms are then granted to customers based on milestones during the life of works. Consideration of payment history and customers credit worthiness are considered in each case. Details of the group's debtors are show in note 13 to the financial statements.

Liquidity risk:

Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. The group aims to mitigate liquidity risk by managing cash generation by its operations and applying cash collection targets.

FUTURE DEVELOPMENTS

The directors anticipate continued development in sectors such as facilities management and high-rise developments. Investment will continue in technology, team development, and operational efficiency.

ON BEHALF OF THE BOARD:

D R Armitage - Director

19 September 2025

The directors present their report with the financial statements of the company and the group for the period 22 June 2024 to 31 December 2024.

INCORPORATION

The group was incorporated on 22 June 2024 and commenced trading on the same date.

PRINCIPAL ACTIVITIES

The principal activities of the group in the period under review were those of sale, maintenance and installation of suspended access and fall protection equipment.

DIVIDENDS

The total distribution of dividends for the year ended 31 December 2024 was NIL.

DIRECTORS

The directors who have held office during the period from 22 June 2024 to the date of this report are as follows:

D R Armitage - appointed 22 June 2024

R D Armitage - appointed 22 June 2024

POLITICAL DONATIONS AND EXPENDITURE

The company made no political donations during the year.

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.

AUDITORS

The auditors, Clive Owen LLP, are deemed to be appointed under section 487(2) of the Companies Act 2006.

ON BEHALF OF THE BOARD:

D R Armitage - Director

19 September 2025

Opinion

We have audited the financial statements of Zarafa Holdco Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 31 December 2024 which comprise the Consolidated Profit and Loss Account, 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 period 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, to detect material misstatements in respect of irregularities, including fraud. Our audit must be alert to the risk of manipulation of the financial statements and seek to understand the incentives and opportunities for management to achieve this.

We undertake the following procedures to identify and respond to these risks of non-compliance:

-

Understanding the key legal and regulatory frameworks that are applicable to the Company. We communicated identified laws and regulations throughout the audit team and remained alert to any indications of non-compliance throughout the audit. We determined the most significant of these to be financial reporting legislation, taxation legislation, health & safety, and employment law.

-

Enquiry of directors and management as to policies and procedures to ensure compliance and any known instances of non-compliance

-

Review of board minutes and correspondence with regulators.

-

Enquiry of directors and management as to areas of the financial statements susceptible to fraud and how these risks are managed.

-

Challenging management on key estimates, assumptions and judgements made in the preparation of the financial statements. The key areas of uncertainty are disclosed in the accounting policies.

-

Identifying and testing unusual journal entries, with a particular focus on manual journal entries.

Through these procedures, we did not become aware of actual or suspected non-compliance.

We planned and performed our audit in accordance with auditing standards but owing to the inherent limitations of procedures required in these areas, there is an unavoidable risk that we may not have detected a material misstatement in the accounts. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. 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 concealment, collusion, forgery, misrepresentations, or override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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.

Other matters which we are required to address

This is the first year that the Company has been audited. the company was incorporated on 22 June 2024, and accordingly, there are no comparative figures for the year ended 31 December 2023. We have obtained sufficient appropriate audit evidence to conclude that the opening balances do not contain misstatements that materially affect the current period's financial statements.

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.

Phillipa Symington ACA, CA(SA) (Senior Statutory Auditor)

for and on behalf of Clive Owen LLP

Chartered Accountants

& Statutory Auditors

Oak Tree House, Harwood Road

Northminster Business Park

Upper Poppleton

York

YO26 6QU

19 September 2025

TURNOVER

3

3,358,819

Cost of sales

(1,878,655

)

GROSS PROFIT

1,480,164

Administrative expenses

(1,102,995

)

377,169

Other operating income

107,398

OPERATING PROFIT

5

484,567

Interest receivable and similar income

17,596

502,163

Interest payable and similar expenses

6

(71,261

)

PROFIT BEFORE TAXATION

430,902

Tax on profit

7

(112,435

)

PROFIT FOR THE FINANCIAL PERIOD

318,467

Profit attributable to:

Owners of the parent

294,331

Non-controlling interests

24,136

318,467

PROFIT FOR THE PERIOD

318,467

OTHER COMPREHENSIVE INCOME

Merger reserve

5,426,039

Income tax relating to other comprehensive income

-

OTHER COMPREHENSIVE INCOME FOR THE PERIOD, NET OF INCOME TAX

5,426,039

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

5,744,506

Total comprehensive income attributable to:

Owners of the parent

5,720,370

Non-controlling interests

24,136

5,744,506

FIXED ASSETS

Tangible assets

9

6,957,621

Investments

10

-

Investment property

11

1,267,700

8,225,321

CURRENT ASSETS

Stocks

12

501,796

Debtors

13

1,376,447

Cash at bank and in hand

2,811,437

4,689,680

CREDITORS

Amounts falling due within one year

14

(4,659,710

)

NET CURRENT ASSETS

29,970

TOTAL ASSETS LESS CURRENT LIABILITIES

8,255,291

CREDITORS

Amounts falling due after more than one year

15

(1,915,924

)

PROVISIONS FOR LIABILITIES

19

(583,208

)

NET ASSETS

5,756,159

CAPITAL AND RESERVES

Called up share capital

20

284

Merger reserve

21

5,426,039

Retained earnings

21

294,331

SHAREHOLDERS' FUNDS

5,720,654

NON-CONTROLLING INTERESTS

22

35,505

TOTAL EQUITY

5,756,159

The financial statements were approved by the Board of Directors and authorised for issue on 19 September 2025 and were signed on its behalf by:

D R Armitage - Director

FIXED ASSETS

Tangible assets

9

-

Investments

10

2,568,742

Investment property

11

-

2,568,742

CURRENT ASSETS

Cash at bank and in hand

3,918

CREDITORS

Amounts falling due within one year

14

(409,825

)

NET CURRENT LIABILITIES

(405,907

)

TOTAL ASSETS LESS CURRENT LIABILITIES

2,162,835

CREDITORS

Amounts falling due after more than one year

15

(1,187,500

)

NET ASSETS

975,335

CAPITAL AND RESERVES

Called up share capital

20

284

Retained earnings

21

975,051

SHAREHOLDERS' FUNDS

975,335

Company's profit for the financial year

975,051

The financial statements were approved by the Board of Directors and authorised for issue on 19 September 2025 and were signed on its behalf by:

D R Armitage - Director

Called up

share

Retained

Merger

capital

earnings

reserve

£

£

£

Changes in equity

Issue of share capital

284

-

-

Total comprehensive income

-

294,331

5,426,039

284

294,331

5,426,039

Acquisition of non-controlling interest

-

-

-

Balance at 31 December 2024

284

294,331

5,426,039

Non-controlling

Total

Total

interests

equity

£

£

£

Changes in equity

Issue of share capital

284

-

284

Total comprehensive income

5,720,370

24,136

5,744,506

5,720,654

24,136

5,744,790

Acquisition of non-controlling interest

-

11,369

11,369

Balance at 31 December 2024

5,720,654

35,505

5,756,159

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Changes in equity

Issue of share capital

284

-

284

Total comprehensive income

-

975,051

975,051

Balance at 31 December 2024

284

975,051

975,335

Cash flows from operating activities

Cash generated from operations

1

388,770

Interest paid

(54,356

)

Interest element of finance lease payments paid

(16,905

)

Net cash from operating activities

317,509

Cash flows from investing activities

Purchase of tangible fixed assets

27,423

Sale of tangible fixed assets

50,878

Interest received

17,596

Net cash from investing activities

95,897

Cash flows from financing activities

New bank loans in year

804,584

Bank loan repayments in year

(34,909

)

New other loans in year

1,500,000

Other loan repayments in year

(62,500

)

Movement in hire purchase contracts

190,572

Share issue

284

Net cash from financing activities

2,398,031

Increase in cash and cash equivalents

2,811,437

Cash and cash equivalents at beginning of period

2

-

Cash and cash equivalents at end of period

2

2,811,437

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

£

Profit before taxation

430,902

Depreciation charges

82,214

Profit on disposal of fixed assets

(50,878

)

Finance costs

71,261

Finance income

(17,596

)

515,903

Increase in stocks

(501,796

)

Increase in trade and other debtors

(1,376,447

)

Increase in trade and other creditors

1,751,110

Cash generated from operations

388,770

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:

Period ended 31 December 2024

31.12.24

22.6.24

£

£

Cash and cash equivalents

2,811,437

-

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 22.6.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank and in hand

-

2,811,437

2,811,437

-

2,811,437

2,811,437

Debt

Finance leases

-

(190,572

)

(190,572

)

Debts falling due within 1 year

-

(327,549

)

(327,549

)

Debts falling due after 1 year

-

(1,879,626

)

(1,879,626

)

-

(2,397,747

)

(2,397,747

)

Total

-

413,690

413,690

1.	STATUTORY INFORMATION

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

There were no material departures from that standard.

The principal accounting policies adopted in the preparation of the financial statements are set out below.

This is the first that year that the group has been audited. In the prior year the group took advantage of the audit exemption available to small groups and were therefore prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006.

Going concern

The directors assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the group and the company to continue as a going concern. The directors make this assessment in respect of a period of at least one year from the date the financial statements are approved.

The financial statements are prepared on the going concern basis which assumes that the group will continue to trade. If the group is unable to continue to trade, adjustments would be required to reduce the value of assets to their recoverable amounts, to provide for any further liabilities that might arise and to analyse long term liabilities as current liabilities.

Basis of consolidation

The group accounts consolidate the results of the company and its subsidiaries under the acquisition method.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Significant judgements and estimates

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for income and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.

The following are the company's key sources of estimation uncertainty:

Work-in-progress

The carrying value of work-in-progress is sensitive to changes in the estimated stage of completion of contracts, and to the extent that the outcome of a contract can be measured reliably.

Warranty provisions

Warranty provisions have been raised taking into account warranty terms per contracts and considering the term until expiration of the warranty as well as past experience and current market considerations.

Investment properties valuation

The group carries investment properties at fair value, with changes on fair value being recognised on profit and loss. The fair value is re-assessed annually and is amended when necessary to reflect current estimates. See note 11 for the carrying amount of investment property.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Maintenance and Repairs

Income is recognised when the conditions contained within a contract for services have been met.

Projects and Installations

Income and costs are recognised by reference to the stage of completion of the contract activity at the balance sheet date.

Equipment sales and rental

Income is recognised when a contract for the sale of goods or services is determined as unconditional.

Rental Income

Revenue is based on rental agreements that have an agreed monthly rental over the duration of the lease

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 shorter:

Freehold property

- not provided, 2% on cost

Plant and machinery

- between 1 and 12 years

Fixtures and fittings

- between 1 and 6 years

Motor vehicles

- between 1 and 3 years

Computer equipment

- between 1 and 3 years

Tangible fixed assets are recognised at cost then subsequently at cost less accumulated depreciation and impairment.

The group writes down motor vehicles on a straight line basis to their estimated residual values at the end of their useful lives of 2 or 3 years.

Freehold property

The directors consider that the freehold property is maintained in such a state of repair that its residual value is at least equal to its net book value. The directors perform annual impairment reviews in accordance with FRS 102 to ensure that the carrying value is not lower than the recoverable amount.

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

Stocks

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

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Work-in-progress is valued on the basis of direct costs and stage of completion of contracts at year end. Provision is made for any foreseeable losses where appropriate. Profit is only recognised to the extent that the outcome of a contract can be estimated reliably.

Financial instruments

Basic financial instruments are recognised at amortised cost with changes recognised in profit or loss.

Taxation

Taxation for the period comprises current and deferred tax. Tax is recognised in the Consolidated Profit and Loss Account, 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 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 period 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

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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