REGISTERED NUMBER: 07115142 (England and Wales)

Group Strategic Report, Report of the Director and

Consolidated Financial Statements

for the Year Ended 31st December 2024

for

RODIN MOTORSPORT HOLDINGS LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Director

3

Statement of Director's Responsibilities

4

Report of the Independent Auditors

5

Consolidated Statement of Comprehensive Income

8

Consolidated Statement of Financial Position

9

Company Statement of Financial Position

10

Consolidated Statement of Changes in Equity

11

Company Statement of Changes in Equity

12

Consolidated Statement of Cash Flows

13

Notes to the Consolidated Financial Statements

14

DIRECTOR:

D Dicker

REGISTERED OFFICE:

Suffolk House

George Street

Croydon

Surrey

CR0 0YN

REGISTERED NUMBER:

07115142 (England and Wales)

AUDITORS:

TC Group

Statutory Auditor

Office: Croydon - TC SWP

3rd Floor, Suffolk House

George Street

Croydon

CR0 0YN

The director presents his strategic report of the company and the group for the year ended 31st December 2024.

REVIEW OF BUSINESS

The principal activity of the company continued to be that of a non-trading holding company. The principal activities of the group continued to be that of generating sponsorship from running and operating motor racing teams.

The group reports revenue of £11.897m (2023 - £11.323m) and a loss before taxation of £4.142m (2023 - profit of £2.943m). A decrease in race costs has resulted in the gross loss decreasing from £1.436m in the previous period to £0.53m.

The group placed 1st in GB3 with both driver and team championship .There was a strong performance in the F4 British Championship with both driver and team championship placing 2nd for Rodin.

The group's financial position at the year end was a net liability position of £13.948m (2023 - £12.305m).

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks are considered to be the wider global economic environment and the group's continued ability to attract sponsorship revenue. However, continued racing success and a wide geographic spread of the sources of sponsorship ensure the directors remain confident that this risk can be mitigated as far as possible.

The group's operations expose it to a variety or financial risks that include the effect of changes in liquidity and cash flow risk and exchange rate risk.

The company has in place a risk management programme that seeks to limit the possible adverse effects on the financial performance of the group.

The directors have not delegated the responsibility of monitoring financial risk management and the group's finance department implements the policies set by the group's board of directors. The department has specific guidelines agreed by the directors to manage those risks faced by the group.

Liquidity and cash flow risk

The group is primarily funded through intercompany balances and support by its ultimate controlling party. In addition, the group utilises banking facilities and the directors actively consider other sources of funding to ensure that the group has sufficient funds available for operational activities.

Foreign exchange risk

The group receives income and pays costs in both Euros and US dollars. It is the group's policy to continually monitor movements in the exchange rates and take appropriate action as necessary.

FINANCIAL KEY PERFORMANCE INDICATORS

The group constantly monitors a number of key performance indicators to ensure optimal business performance. The directors consider that the race performance in the various championship series in which the company competes, together with sponsorship income and cost base are the key performance indicators of the business.

ON BEHALF OF THE BOARD:

D Dicker - Director

22nd September 2025

The director presents his report with the financial statements of the company and the group for the year ended 31st December 2024.

DIVIDENDS

No dividends will be distributed for the year ended 31st December 2024.

DIRECTOR

D Dicker held office during the whole of the period from 1st January 2024 to the date of this report.

GOING CONCERN AND FUTURE DEVELOPMENTS

The group meets its working capital requirements through the ongoing support of its owner. Management prepare annual budgets and forecasts in order to ensure that the group has sufficient reserves in order to meet its liabilities as they fall due. These considerations include a review of external economic factors such as the unstable global political environment.

In light of the above the directors believe it is appropriate to adopt the going concern basis of accounting in preparing the financial statements.

DISCLOSURE IN THE STRATEGIC REPORT

The principal risks and uncertainties facing the group have been considered in the Strategic Report.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

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

ON BEHALF OF THE BOARD:

D Dicker - Director

22nd September 2025

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

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

-	select suitable accounting policies and then apply them consistently;

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

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

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

Opinion

We have audited the financial statements of Rodin Motorsport Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31st December 2024 which comprise the Consolidated Statement of 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 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 loss for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Group Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Director.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept 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 director's remuneration specified by law are not made; or

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

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page four, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the director is responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the group or the parent company or to cease operations, or has no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

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

The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.

Our approach was as follows:

-

We obtained an understanding of the legal and regulatory framework applicable to the group and the sector in which it operates, through discussions with management and those charged with governance, and also from our detailed understanding of the sector. We identified the financial reporting framework including but not limited to United Kingdom Generally Accepted Accounting Practice and the Companies Act 2006, Data Protection Act 2018, Bribery Act 2010, tax legislation and various race series competition rules, such as FIA F2 and F3 rules and regulations being of significance in the context of Rodin Motorsport Holdings Limited and its ongoing activities.

-

We made enquiries with management and those charged with governance to confirm our understanding that the group continued to comply with the applicable legal and regulatory frameworks, and also to confirm our understanding of the specific policies and procedures enlisted by the group to ensure ongoing compliance.

-

We assessed the susceptibility of the group's financial statements to material misstatement, including how fraud may occur, and gained an understanding of the group's policies and procedures on fraud risks through discussion with the group's management.

-

We considered the risk of material misstatement due to fraud as a result of possible management override of controls, and improper revenue recognition. To address these risks we tested the appropriateness of journal entries posted, reviewed those judgements made in making accounting estimates, and tested the application of revenue recognition and the cut-off of revenue.

-

We communicated those laws and regulations considered relevant to the group and potential fraud risks to all engagement team members, and consider that the engagement team had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations, and remained alert to any indications of fraud throughout the audit.

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

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. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. 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.

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.

Patrick duCassé (Senior Statutory Auditor)

For and on behalf of TC Group

Statutory Auditor

Office: Croydon - TC SWP

3rd Floor, Suffolk House

George Street

Croydon

CR0 0YN

22nd September 2025

REVENUE

4

11,897,102

11,322,564

Cost of sales

(12,428,373

)

(12,758,505

)

GROSS LOSS

(531,271

)

(1,435,941

)

Distribution costs

(1,723,133

)

(1,479,150

)

Administrative expenses

(1,846,334

)

(1,457,823

)

OPERATING LOSS

6

(4,100,738

)

(4,372,914

)

Profit/loss on disposal of subsidiary

7

-

7,372,186

(4,100,738

)

2,999,272

Interest receivable and similar income

14,718

782

(4,086,020

)

3,000,054

Interest payable and similar expenses

8

(23,250

)

(56,978

)

(LOSS)/PROFIT BEFORE TAXATION

(4,109,270

)

2,943,076

Tax on (loss)/profit

9

2,467,143

(449,582

)

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(1,642,127

)

2,493,494

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE (LOSS)/INCOME FOR THE YEAR

(1,642,127

)

2,493,494

(Loss)/profit attributable to:

Owners of the parent

(1,721,074

)

3,469,879

Non-controlling interests

78,947

(976,385

)

(1,642,127

)

2,493,494

Total comprehensive (loss)/income attributable to:

Owners of the parent

(1,721,074

)

3,469,879

Non-controlling interests

78,947

(976,385

)

(1,642,127

)

2,493,494

FIXED ASSETS

Intangible assets

12

-

-

Property, plant and equipment

13

3,601,652

3,417,749

Investments

14

56

56

3,601,708

3,417,805

CURRENT ASSETS

Inventories

15

1,099,906

361,659

Debtors

16

4,351,286

2,164,088

Cash at bank and in hand

281,957

371,784

5,733,149

2,897,531

CREDITORS

Amounts falling due within one year

17

22,597,780

17,765,605

NET CURRENT LIABILITIES

(16,864,631

)

(14,868,074

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(13,262,923

)

(11,450,269

)

PROVISIONS FOR LIABILITIES

19

684,913

854,440

NET LIABILITIES

(13,947,836

)

(12,304,709

)

CAPITAL AND RESERVES

Called up share capital

20

100,001

100,001

Share premium

21

1,346,546

1,346,546

Other reserves

21

326,091

326,091

Retained earnings

21

(15,720,474

)

(11,736,354

)

SHAREHOLDERS' FUNDS

(13,947,836

)

(9,963,716

)

NON-CONTROLLING INTERESTS

22

-

(2,340,993

)

TOTAL EQUITY

(13,947,836

)

(12,304,709

)

The financial statements were approved by the director and authorised for issue on 22nd September 2025 and were signed by:

D Dicker - Director

FIXED ASSETS

Intangible assets

12

-

-

Property, plant and equipment

13

-

-

Investments

14

1,381

381

1,381

381

CURRENT ASSETS

Debtors

16

12,323,628

11,076,805

CREDITORS

Amounts falling due within one year

17

10,808,545

9,544,722

NET CURRENT ASSETS

1,515,083

1,532,083

TOTAL ASSETS LESS CURRENT LIABILITIES

1,516,464

1,532,464

CAPITAL AND RESERVES

Called up share capital

20

100,001

100,001

Share premium

21

1,346,546

1,346,546

Other reserves

21

326,091

326,091

Retained earnings

21

(256,174

)

(240,174

)

SHAREHOLDERS' FUNDS

1,516,464

1,532,464

Company's loss for the financial year

(16,000

)

(22,000

)

The financial statements were approved by the director and authorised for issue on 22nd September 2025 and were signed by:

D Dicker - Director

Called up

share

Retained

Share

capital

earnings

premium

£

£

£

Balance at 1st January 2023

100,000

(15,206,233

)

-

Changes in equity

Issue of share capital

1

-

1,346,546

Total comprehensive income

-

3,469,879

-

100,001

(11,736,354

)

1,346,546

Non-controlling interest arising on business combination

-

-

-

Balance at 31st December 2023

100,001

(11,736,354

)

1,346,546

Changes in equity

Total comprehensive loss

-

(1,721,074

)

-

Acquisition of NCI shares

-

(2,263,046

)

-

Balance at 31st December 2024

100,001

(15,720,474

)

1,346,546

Other

Non-controlling

Total

reserves

Total

interests

equity

£

£

£

£

Balance at 1st January 2023

326,091

(14,780,142

)

(3,207,679

)

(17,987,821

)

Changes in equity

Issue of share capital

-

1,346,547

-

1,346,547

Total comprehensive income

-

3,469,879

(976,385

)

2,493,494

326,091

(9,963,716

)

(4,184,064

)

(14,147,780

)

Non-controlling interest arising on business combination

-

-

1,843,071

1,843,071

Balance at 31st December 2023

326,091

(9,963,716

)

(2,340,993

)

(12,304,709

)

Changes in equity

Total comprehensive loss

-

(1,721,074

)

78,947

(1,642,127

)

Acquisition of NCI shares

-

(2,263,046

)

2,262,046

(1,000

)

Balance at 31st December 2024

326,091

(13,947,836

)

-

(13,947,836

)

Called up

share

Retained

Share

Other

Total

capital

earnings

premium

reserves

equity

£

£

£

£

£

Balance at 1st January 2023

100,000

(218,174

)

-

326,091

207,917

Changes in equity

Issue of share capital

1

-

1,346,546

-

1,346,547

Total comprehensive income

-

(22,000

)

-

-

(22,000

)

Balance at 31st December 2023

100,001

(240,174

)

1,346,546

326,091

1,532,464

Changes in equity

Total comprehensive income

-

(16,000

)

-

-

(16,000

)

Balance at 31st December 2024

100,001

(256,174

)

1,346,546

326,091

1,516,464

Cash flows from operating activities

Cash generated from operations

26

(340,555

)

8,854,668

Interest paid

(1,756

)

(37,471

)

Finance costs paid

(21,494

)

(19,507

)

Tax paid

1,684,757

(55,467

)

Net cash from operating activities

1,320,952

8,742,223

Cash flows from investing activities

Purchase of tangible fixed assets

(1,440,034

)

(896,206

)

Sale of tangible fixed assets

15,537

72,696

Disposal of subsidiary undertaking

-

1,843,071

Acquisition of subsidiary undertaking

(1,000

)

-

Interest received

14,718

782

Net cash from investing activities

(1,410,779

)

1,020,343

Cash flows from financing activities

Loan repayments in year

-

(1,136,011

)

Amount introduced by directors

-

865,980

Amount withdrawn by directors

-

(9,266,037

)

Share issue

-

1,346,547

Net cash from financing activities

-

(8,189,521

)

(Decrease)/increase in cash and cash equivalents

(89,827

)

1,573,045

Cash and cash equivalents at beginning of year

27

371,784

(1,201,261

)

Cash and cash equivalents at end of year

27

281,957

371,784

1.	STATUTORY INFORMATION

The principal activity of the company continued to be that of a non-trading holding company. The principal activities of the group continued to be that of generating sponsorship from running and operating motor racing teams.

The company is a private company limited by shares and is registered in England and Wales. The address of its registered office is Suffolk House, George Street, Croydon, CR0 0YN. The address of the principal place of business is 7 Coxbridge Business Park, Alton Road, Farnham, Surrey, GU10 5EH.

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 preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the group's accounting policies (see note 3).

Basis of consolidation

The consolidated financial statements present the results of Rodin Motorsport Holdings Limited and all of its subsidiary undertakings up to 31 December each year. Intercompany transactions and balances between group companies are therefore eliminated in full.

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

Where a subsidiary has different accounting policies from the group, adjustments are made to those subsidiary financial statements to apply the group's accounting policies when preparing the consolidated financial statements.

The consolidated financial statements incorporate the results of business combinations using the purchase method.

Going concern

The directors have considered the financial position of the group at 31 December 2024 and the projected cash flows and financial performance of the group for at least 12 months from the date of approval of these financial statements. They have also taken into consideration the continual financial support of the ultimate controlling party. The directors consider, after making appropriate enquires and taking into consideration the risks and uncertainties facing the group, the group has adequate resources to continue in operation as a going concern for the forseeable future.

Turnover

Turnover represents sponsorship income and associated services supplied during the period exclusive of Value Added Tax.

Turnover from a contract to provide services is recognised in the period in which the services are provided when all of the following conditions are satisfied:

- the amount of turnover can be measured reliably;

- it is probable that the company will receive the consideration due under the contract; and

- the stage of completion of the contract at the end of the reporting period can be measured reliably.

Goodwill

Goodwill has been generated on the acquisition of businesses in 2010 and 2012. Goodwill arising on these acquisitions is being amortised evenly over their estimated useful life of ten years.

Intangible assets

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

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation less any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined, which is higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on the following basis:

Freehold property

- 2% straight line

Short leasehold

- Over length of lease

Motor racing cars

- At varying rates over the life of asset

Plant and machinery

- between 20% - 25% straight line

Tractors and trailers

- between 15% - 25% straight line

Motor vehicles

- between 20% - 33% straight line

Computer equipment

- between 15% - 25% straight line

The assets' residual value, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amounts and are recognised in the Statement of Comprehensive Income.

Investments in subsidiaries and associates

Investments in subsidiaries and associated undertakings are recognised at cost less accumulated impairment.

Stocks

Stocks are stated at the lower of cost and the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on an average purchase price basis.

At each Statement of Financial Position date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its estimated selling price less costs to sell. The impairment loss is recognised immediately in profit or loss.

Financial instruments

The group only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities such as trade and other debtors and creditors, loans from financial institutions and amounts loaned to and from related and associated parties.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and the best estimate of the recoverable amount, which is an approximation of the amount that the company would receive for the asset if it were to be sold at the Statement of Financial Position date.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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 the 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.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Foreign currencies

The group's functional and presentational currency is pound sterling.

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value is determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from translations at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised within administrative expenses in the Statement of Comprehensive Income.

Hire purchase and leasing commitments

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

Pension costs and other post-retirement benefits

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.

The contributions are recognised as an expense in the Statement of Comprehensive Income when they fall due. Amounts not paid are shown in other creditors as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Creditors

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

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.