REGISTERED NUMBER: 00429205 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTOR AND

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

FOR

W.N. THOMAS & SONS LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Director

5

Report of the Independent Auditors

7

Income Statement

11

Other Comprehensive Income

12

Balance Sheet

13

Statement of Changes in Equity

14

Cash Flow Statement

15

Notes to the Cash Flow Statement

16

Notes to the Financial Statements

18

DIRECTOR:

P Mills

SECRETARY:

P Mills

REGISTERED OFFICE:

Belmont Works, Stoke Gardens

Stoke Road

Slough

Berkshire

SL1 3QA

REGISTERED NUMBER:

00429205 (England and Wales)

AUDITORS:

Diverset Limited

Chartered Accountants and Statutory Auditor

Ferrari House

258 Field End Road

Ruislip

Middlesex

HA4 9UU

BANKERS:

National Westminster Bank plc

South of England Corporate Service

Audits Team, PO Box 33

Silbury House, 300 Silbury Boulevard

Milton Keynes

MK9 2ZF

The directors present their strategic report for the year ended 31 March 2025.

With over 160 years of knowledge and experience WN Thomas & Sons Ltd is Berkshire's leading scrap metal recyclers.

WN Thomas & Sons uses the latest technology and methods to offer complete metal recycling to major companies, independent traders, householders and other dealers.

Using well established facilities in Slough and Reading, we have a large fleet of cranes, fork lift trucks, electro magnets, power shears, hydraulic bailing presses and vehicles to recycle metal in an environmentally aware manner.

REVIEW OF BUSINESS

Underlying market trends have for the years post COVID been broadly supportive of the business, with high metal prices, continued drive toward recycling in all forms, and ongoing construction projects in our region driving revenue and profit.

However, global events have over the last year and since the year end driven policy makers to raise interest rates, aimed at reducing inflation. While this has been successful, and interest rates are now reducing prices have not reduced, leaving revenue and costs at an increased base level, while cooling some construction projects. Global metal prices, a key determinant of revenue, started the year on average very strong, dipped significantly in the year, and increased toward the end.

The business currently operates from 2 main sites in Slough, with smaller 'feeder' sites both owned, and independent to spread the footprint of supply of material. Mindful that one of these sites does not have sufficient security of tenure the Directors would prefer to consolidate the business into one new site is a suitable property became available.

Through this accounting period, the company had maintained its revenues, reflecting historically high metal prices, but has experienced tighter gross margins and increased costs.

Significant effort has been used in expanding the network of 'feeder' sites, who all use pricing guided by W N Thomas & Sons Ltd, and who then supply to W N Thomas at normal sales prices. W N Thomas benefits by amalgamating these relatively smaller individual supplies and can use its capacity and knowhow to obtain a better spot sale price. The gross margin on these supplies is lower than that generated by material sourced directly, but it has enabled the company to expand its footprint, maintain volume in a variable market, and obtain improved terms from its major customers.

As a result turnover has been maintained, at the expense of average gross margin, which has fallen as this activity has increased. Gradually, the company expects to be able to improve its margins in the coming years, and maybe acquire one or more of the feeder operations directly as the operators retire.

Effort and investment has therefore gone into further developing both its depot in Slough, with further significant investment into replacement and upgrade to the plant and machinery, funded from cash flow.

The Directors are also mindful that the business is cyclical in nature so in anticipation of consolidation of its site(s), and with a number of years good trading conditions, in recent years considered it prudent to build cash reserves.

In this year however, the circumstances arose for the company to repurchase shares from many of its wider family member shareholders, and for the long serving Director John Thomas, to retire. The repurchase price and a schedule was duly negotiated, and 9125 Ordinary shares were repurchased in the year from cash reserves, with a further 3843 to be repurchased by March 2027. This leaves the business controlled by its Managing Director Peter Mills, and is expected to be beneficial to the business in terms of its strategic direction and decision making.

KEY PERFORMANCE INDICATORS

Turnover overall has increased 16.6% and gross profit increased by 5.5%, driven by the trends and policy outlined above.

Motor Fleet, employment, property maintenance and depreciation costs increased, but overall, overheads were reasonably well controlled to be up by 1.5% to leave profit before tax of £454k (2024: £309k).

The company remains strongly cash generative, with cash generated from operations of £597k (2024 : £499k) funding an investment programme net of disposals totalling £51k and debt reduced by a net £73k (2024 : £61k).

The company has funded repurchase of shares totalling £1642k in the year.

As a result, net cash on hand at the year end of £993k (2024 : £2111k) is considered adequate. Debt (all secured) totalled £797k ( 2024 : £871k) at the year end.

Overall the Directors are content with the company's position and profitability, is able to meet its obligations in the foreseeable future, and believe the company is in a good position to prosper in the coming years.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks faced by the company are business and regulatory risks.

The company seeks to manage business risks by diversification of customer and supplier base, by maintaining close working relationships with all stakeholder groups and a strong focus on customer service to differentiate

themselves from price driven competition.

The company's operations are relatively highly operationally geared, and revenues are driven by the global market price of metals, over which the company has no control. These factors expose it to financial risks as well as risks of customer default, plus fuel and other transport costs outside of its control, and fluctuation in customer demand, either up or down.

The company mitigates this risk as best it can by its operation of a robust credit control system, with all customers credit checked and credit limits strictly applied. The company is extremely prudent in its expenditure, preferring to invest in plant and machinery for the long term efficiency and success of the business than short term gains.

At the same time, long term relationships with customers are sought and developed, to ensure that at all times fixed costs are covered, minimizing financial risks arising from underutilized assets. The company also benefits because as a global industry, customers tend to be much larger dealers, and to date both customer and supplier payment cycles have been relatively short.

As the cost base is relatively fixed in the short term, unexpected reduction in sales or poor asset utilization can rapidly erode gross margins and profitability. Conversely, upturn in sales or optimized asset utilization can dramatically increase profitability.

External market or regulatory changes, or tax changes can impact the company. For instance, environmental

regulations could affect its ability to operate, although to date, the company has found that proactively addressing environmental issues has had a positive effect in terms of supplier relationships and growth as smaller competitors struggle to maintain increasing standards.

ON BEHALF OF THE BOARD:

P Mills - Director

24 September 2025

The director presents his report with the financial statements of the company for the year ended 31 March 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of dealers in ferrous and non-ferrous metal.

DIVIDENDS

No dividends will be distributed for the year ended 31 March 2025.

DIRECTORS

The directors during the year under review were:

J Thomas

- resigned 25.10.24

P Mills

The beneficial interests of the directors holding office on 31 March 2025 in the issued share capital of the company were as follows:

31.3.25

1.4.24

Ordinary £1.00 shares

P Mills

3,540

3,540

Deferred Ordinary Shares £1 shares

P Mills

-

-

DONATIONS AND EXPENDITURE

During the year, the company made charitable donations of £6,150 (2024 : £5,860)

DISCLOSURE IN THE STRATEGIC REPORT

Information in respect of future developments, and other matters required to be disclosed are included in the strategic report.

DIRECTOR'S RESPONSIBILITIES STATEMENT

The director is responsible for preparing the 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 of the profit or loss of the company 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 transactions and disclose with reasonable accuracy at any time the financial position of the company 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The director is responsible for the maintenance and integrity of the corporate and financial information included on the company's website.

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 company'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 company's auditors are aware of that information.

AUDITORS

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

ON BEHALF OF THE BOARD:

P Mills - Director

24 September 2025

Opinion

We have audited the financial statements of W.N. Thomas & Sons Limited (the 'company') for the year ended 31 March 2025 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the 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 company's affairs as at 31 March 2025 and of its 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 company 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 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 director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, 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 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 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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, or returns adequate for our audit have not been received from branches not visited by us; or

-	the 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 Director's Responsibilities Statement, 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 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 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:

- our engagement partner ensured that the engagement team collectively had the appropriate competence,

capabilities and skills to identify or recognize non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the company through discussions with management, and from our knowledge and experience of the company's operations.

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including such as the Companies Act, data protection, anti-bribery, employment, environmental and health and safety legislation;

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations;

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias;

- investigated the rationale behind significant or unusual transactions;

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;

- reading the minutes of meetings of those charged with governance;

- enquiring of management as to actual and potential litigation and claims;

- reviewing correspondence with the company's legal advisors;

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may

involve deliberate concealment or collusion.

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.

Mark Britter (Senior Statutory Auditor)

for and on behalf of Diverset Limited

Chartered Accountants and Statutory Auditor

Ferrari House

258 Field End Road

Ruislip

Middlesex

HA4 9UU

24 September 2025

Note:

The maintenance and integrity of the W.N. Thomas & Sons Limited website is the responsibility of the director; the work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website.

TURNOVER

31,096,814

26,661,538

Cost of sales

28,079,875

23,802,150

GROSS PROFIT

3,016,939

2,859,388

Distribution costs

224,817

241,420

Administrative expenses

2,334,959

2,281,600

2,559,776

2,523,020

457,163

336,368

Other operating income

34,800

34,810

OPERATING PROFIT

4

491,963

371,178

Interest receivable and similar income

27,447

8,479

519,410

379,657

Interest payable and similar expenses

5

65,555

70,573

PROFIT BEFORE TAXATION

453,855

309,084

Tax on profit

6

123,705

76,652

PROFIT FOR THE FINANCIAL YEAR

330,150

232,432

PROFIT FOR THE YEAR

330,150

232,432

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

330,150

232,432

FIXED ASSETS

Tangible assets

8

4,094,892

4,215,462

Investment property

9

450,000

450,000

4,544,892

4,665,462

CURRENT ASSETS

Stocks

10

432,381

512,437

Debtors

11

611,729

438,298

Cash at bank and in hand

993,459

2,111,183

2,037,569

3,061,918

CREDITORS

Amounts falling due within one year

12

1,489,088

1,252,955

NET CURRENT ASSETS

548,481

1,808,963

TOTAL ASSETS LESS CURRENT LIABILITIES

5,093,373

6,474,425

CREDITORS

Amounts falling due after more than one year

13

(740,529

)

(779,789

)

PROVISIONS FOR LIABILITIES

17

(720,895

)

(750,337

)

NET ASSETS

3,631,949

4,944,299

CAPITAL AND RESERVES

Called up share capital

18

9,875

19,000

Revaluation reserve

19

1,705,985

1,705,985

Other reserves

19

20,705

20,705

Retained earnings

19

1,895,384

3,198,609

SHAREHOLDERS' FUNDS

22

3,631,949

4,944,299

The financial statements were approved by the director and authorised for issue on 24 September 2025 and were signed by:

P Mills - Director

Called up

share

Retained

Revaluation

Other

Total

capital

earnings

reserve

reserves

equity

£

£

£

£

£

Balance at 1 April 2023

19,000

3,004,177

1,705,985

20,705

4,749,867

Changes in equity

Profit for the year

-

232,432

-

-

232,432

Total comprehensive income

-

232,432

-

-

232,432

Dividends

-

(38,000

)

-

-

(38,000

)

Balance at 31 March 2024

19,000

3,198,609

1,705,985

20,705

4,944,299

Changes in equity

Profit for the year

-

330,150

-

-

330,150

Share Buyback Premium Paid

-

(1,633,375

)

-

-

(1,633,375

)

Total comprehensive income

-

(1,303,225

)

-

-

(1,303,225

)

Issue of share capital

(9,125

)

-

-

-

(9,125

)

Balance at 31 March 2025

9,875

1,895,384

1,705,985

20,705

3,631,949

Cash flows from operating activities

Cash generated from operations

1

725,635

618,925

Interest paid

(61,301

)

(66,319

)

Interest element of hire purchase payments paid

(4,254

)

(4,254

)

Tax paid

(62,646

)

(49,798

)

Net cash from operating activities

597,434

498,554

Cash flows from investing activities

Purchase of tangible fixed assets

(82,922

)

(295,562

)

Sale of tangible fixed assets

3,800

12,000

Interest received

27,447

8,479

Net cash from investing activities

(51,675

)

(275,083

)

Cash flows from financing activities

Loan repayments in year

(32,317

)

(19,547

)

Capital repayments in year

(41,666

)

(41,666

)

Amount introduced by directors

53,000

-

Share issue

(9,125

)

-

Share buyback

(1,633,375

)

-

Equity dividends paid

-

(38,000

)

Net cash from financing activities

(1,663,483

)

(99,213

)

(Decrease)/increase in cash and cash equivalents

(1,117,724

)

124,258

Cash and cash equivalents at beginning of year

2

2,111,183

1,986,925

Cash and cash equivalents at end of year

2

993,459

2,111,183

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

2025

2024

£

£

Profit before taxation

453,855

309,084

Depreciation charges

201,298

224,168

(Profit)/loss on disposal of fixed assets

(1,605

)

6,002

Finance costs

65,555

70,573

Finance income

(27,447

)

(8,479

)

691,656

601,348

Decrease/(increase) in stocks

80,056

(170,420

)

(Increase)/decrease in trade and other debtors

(173,431

)

153,817

Increase in trade and other creditors

127,354

34,180

Cash generated from operations

725,635

618,925

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

993,459

2,111,183

Year ended 31 March 2024

31.3.24

1.4.23

£

£

Cash and cash equivalents

2,111,183

1,986,925

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.24

Cash flow

At 31.3.25

£

£

£

Net cash

Cash at bank and in hand

2,111,183

(1,117,724

)

993,459

2,111,183

(1,117,724

)

993,459

Debt

Finance leases

(48,610

)

41,666

(6,944

)

Debts falling due within 1 year

(50,000

)

-

(50,000

)

Debts falling due after 1 year

(772,845

)

32,316

(740,529

)

(871,455

)

73,982

(797,473

)

Total

1,239,728

(1,043,742

)

195,986

1.	STATUTORY INFORMATION

W.N. Thomas & Sons 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 Company 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 as modified by the revaluation of certain assets.

The directors have concluded that the company is and remains a going concern for the foreseeable future based on stable trading volume, revenue, profitability and cash flow since the year end, and projected cash positivity taking into account the post year end commitment to repurchase 12968 of its own shares over the next 2 years..

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirement of paragraph 3.17(d);

•

the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

•

the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A;

•

the requirements of paragraphs 26.18(b), 26.19 to 26.21 and 26.23;

•

the requirement of paragraph 33.7;

•

the requirements of paragraph 24(b) of IFRS 6.

Significant judgements and estimates

The judgements (apart from those involving estimations - that management has made in the process of

applying the entity's accounting policies and that have the most significant effect on the amounts included in

the financial statements are as follows:

Assessing indicators of impairment - in assessing whether there have been indicators of impairment of assets, the directors have considered both external and internal sources of information such as market conditions,counter party credit ratings and experience of recoverability.

Assessing nature of lease - The company has entered into commercial leases, and as a lessee it obtains use of property, plant and equipment. The classification as operating or finance lease requires the company to

determine, based on an evaluation of the contract. whether it acquires the significant risks and rewards of

ownership and therefore whether the lease requires and asset and liability to be recognised in the balance

sheet.

Taxation - Management judgement is required to determine the amount of deferred tax assets that can be

recognised, based on the likely timing and level of future taxable profits together with an assessment of the

effect of future tax planning strategy.

Turnover

Turnover represents amounts receivable for goods and services net of VAT and trade discounts.

Tangible fixed assets

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

Freehold property

-

10% on cost

Improvements to property

-

2% on cost

Plant and machinery

-

10% on reducing balance

Fixtures and fittings

-

10% on reducing balance

Motor vehicles

-

20% on reducing balance

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

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

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.