REGISTERED NUMBER: 01579409 (England and Wales)

Group Strategic Report,

Report of the Directors and

Consolidated Financial Statements

for the Year Ended 31 December 2024

for

CANYNGE BICKNELL LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Statement of Directors' Responsibilities

5

Report of the Independent Auditors

6

Consolidated Profit and Loss Account

9

Consolidated Statement of Other Comprehensive Income

10

Consolidated Balance Sheet

11

Company Balance Sheet

12

Consolidated Statement of Changes in Equity

13

Company Statement of Changes in Equity

14

Consolidated Cash Flow Statement

15

Notes to the Consolidated Cash Flow Statement

16

Notes to the Consolidated Financial Statements

17

DIRECTORS:

A Whicheloe

M L Fitzgerald

C R Bicknell

J E Castell

REGISTERED OFFICE:

Bicknell House

Merstham Road

Bristol

BS2 9TQ

REGISTERED NUMBER:

01579409 (England and Wales)

AUDITORS:

Gravita Audit Western Limited

Chartered Accountants and Statutory Auditors

Bath House

6 - 8 Bath Street

Bristol

BS1 6HL

The directors' strategic report is presented for the year ended 31 December 2024.

Review of the business and development and performance

Other operating income for the year to 31 December 2024 was in line with the directors' expectations at £1,003,461 2023 - £1,064,945).

The group's operating profit margin significantly increased to 568.6% in 2024 (2023 - 27.1%), resulting in an operating profit of £5,705,872 (2023 - £289,044). This is due to the property sale during the year.

The group share of associate undertakings' operating profit for the year was £17,020 (2023 - loss of £64,095), increase due to an impairment of stock in one of the associated companies in the previous year. There was no impairment in stock this year.

Net cash generated from operating activities during the year amounted to an outflow of £10,729,011 (2023 - outflow of £2,392,730). The net cash outflow for the group amounted to £537,795 for the year (2023 - outflow of £2,318,504). In the opinion of the directors, the group's reduction in the net cash outflow reported for the year was principally as a result of a property sale.

As at 31 December 2024, cash and cash equivalents held by the group amounted to £2,017,867 (2023 - £2,555,662). The directors believe that the group has sufficient working capital in order to meet its normal trading requirements.

The group has performed well during the current financial year. The directors expect the group's level of trading to be minimal in the foreseeable future and due to the wind down of the group and the disposal of assets. The directors aim to maintain their current management policies.

Business environment

The property market within the United Kingdom remains highly competitive even as the needs of customers evolve to meet the requirements of modern working and living. The group endeavours to remain at the forefront of such market requirements.

Results and dividends

The trading profit for the year was £5,765,413 (2023 - £333,856), subject to taxation of £422,261 (2023 - £286,047).

The directors did not make a payment of dividend during the year (2023 - £nil).

The retained profit for the financial year of £5,343,152 (2023 - £47,918) has been added to the unappropriated profits brought forward and the unappropriated profits to carry forward now stand at £14,212,069 (2023 - £8,868,803).

Principal risks and uncertainties

The group and its associated undertakings operate in the property sector and are involved in development and investment within the United Kingdom property market.

The group's principal risks and uncertainties are considered to be as follows:

- adverse changes in the general economic environment and more specifically those affecting the property and

rental sectors;

- the very competitive environment in which the group's trading activities are conducted;

- increases in the regulatory burden imposed on the industry; and

- inflationary impacts on the operating base of the group.

The directors have considered the above risks and have developed strategies to mitigate, as far as possible, any potential impact.

Key performance indicators

The group's key performance indicators are detailed in the trading performance results outlined above.

The directors consider that the group has performed well during the year and in line with their expectations for these key performance indicators.

Market value of properties

The directors consider that the market value of properties held as fixed assets is in excess of the carrying value as shown in the accounts.

ON BEHALF OF THE BOARD:

J E Castell - Director

18 September 2025

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

PRINCIPAL ACTIVITY

The principal activities of the group in the year under review were those of property development, investment and management.

DIVIDENDS

No dividends were paid in the year (2023 - £nil).

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

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

A Whicheloe

M L Fitzgerald

C R Bicknell

Other changes in directors holding office are as follows:

J E Castell was appointed as a director after 31 December 2024 but prior to the date of this report.

POLITICAL DONATIONS AND EXPENDITURE

The group made no political donations during the year.

DISCLOSURE IN THE STRATEGIC REPORT

The Companies Act 2006 (Strategic Report and Directors' Report) regulations 2013 requires a Strategic Report to be prepared. Where mandatory disclosures in the Directors' Report are considered by the directors to be of strategic importance these have been included within the Strategic Report rather than the Directors' Report in accordance with s.414C (11) Companies Act 2006.

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.

ON BEHALF OF THE BOARD:

J E Castell - Director

18 September 2025

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.

Qualified opinion on the financial statements

We have audited the financial statements of Canynge Bicknell Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the Consolidated Profit and Loss Account, Consolidated Statement of 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, except for the effects of the matters described in the 'Basis for qualified opinion' section of our report, 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 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 qualified 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 'Auditor's 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 qualified opinion.

As explained in note 2 to the financial statements, the group has recognised its investment properties under the heading of investment property at either historical cost or at a valuation at the point in time when property previously held in stock for development was transferred to investment property upon completion.

In accordance with FRS 102, investment properties must be measured at fair value at each reporting date with any changes in their fair value being recognised in the group's profit and loss account. Furthermore, any investment properties not meeting the annual requirement for remeasurement at fair value should be reclassified and presented within land and buildings (tangible fixed assets) and depreciated.

Investment properties recognised in these financial statements have not been measured at their fair value as at the year end date, nor have they been reclassified under land and buildings and depreciated. The properties continue to be recognised within investment property in the financial statements of the group. This is not in accordance with the provisions of FRS 102 and our opinion is qualified in this respect.

We are unable to quantify the effects of the departures from the requirements of the accounting standards referred to above other than already described in the notes to the financial statements.

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, the Report of the Directors and the Statement of Directors' Responsibilities, 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 five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditors' responsibilities for the audit of the financial statements

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

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

(i) We obtained an understanding of the legal and regulatory frameworks applicable to the company and the sector in which it operates. We determined the following laws and regulations of most significance were: Companies Act 2006, UK GAAP and UK corporate taxation laws.

(ii) We obtained an understanding of how the company complies with those legal and regulatory frameworks by making inquiries of management.

(iii) We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:

- identifying and assessing the effectiveness of controls management has in place to prevent and detect fraud;

- understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;

- challenging assumptions and judgements made by management in its significant accounting estimates;

- identifying and testing journal entries, in particular any journal entries posted with unusual account combinations; and

- assessing the extent of compliance with the relevant laws and regulations.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulation are from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, 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 deliberate concealment by, for example, forgery or intentional misrepresentations, or through 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.

Matthew Bracher BSc FCA (Senior Statutory Auditor)

for and on behalf of Gravita Audit Western Limited

Chartered Accountants and Statutory Auditors

Bath House

6 - 8 Bath Street

Bristol

BS1 6HL

18 September 2025

TURNOVER

-

-

Administrative expenses

4,702,411

(775,901

)

4,702,411

(775,901

)

Other operating income

3

1,003,461

1,064,945

GROUP OPERATING PROFIT

5

5,705,872

289,044

Share of operating profit/(loss) in

Associates

17,020

(64,095

)

Interest receivable and similar income

Group

8

57,131

122,984

Associates

1,442

1,201

5,781,465

349,134

Interest payable and similar expenses

Group

9

(1,984

)

(11,261

)

Associates

(14,068

)

(4,017

)

PROFIT BEFORE TAXATION

5,765,413

333,856

Tax on profit

10

(422,261

)

(286,047

)

PROFIT FOR THE FINANCIAL YEAR

5,343,152

47,809

Profit attributable to:

Owners of the parent

5,343,152

47,918

Non-controlling interests

-

(109

)

5,343,152

47,809

PROFIT FOR THE YEAR

5,343,152

47,809

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

5,343,152

47,809

Total comprehensive income attributable to:

Owners of the parent

5,343,038

47,918

Non-controlling interests

114

(109

)

5,343,152

47,809

FIXED ASSETS

Investments

12

Interest in associates

184,971

181,259

Investment property

13

2,770,216

5,737,531

2,955,187

5,918,790

CURRENT ASSETS

Debtors

14

11,744,400

1,346,212

Cash at bank

2,017,867

2,555,662

13,762,267

3,901,874

CREDITORS

Amounts falling due within one year

15

(2,505,385

)

(807,891

)

NET CURRENT ASSETS

11,256,882

3,093,983

TOTAL ASSETS LESS CURRENT LIABILITIES

14,212,069

9,012,773

PROVISIONS FOR LIABILITIES

16

-

(143,970

)

NET ASSETS

14,212,069

8,868,803

CAPITAL AND RESERVES

Called up share capital

17

100

100

Retained earnings

18

14,211,969

8,868,817

SHAREHOLDERS' FUNDS

14,212,069

8,868,917

NON-CONTROLLING INTERESTS

-

(114

)

TOTAL EQUITY

14,212,069

8,868,803

The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on 18 September 2025 and were signed on its behalf by:

J E Castell - Director

FIXED ASSETS

Investments

12

26

131

Investment property

13

-

-

26

131

CURRENT ASSETS

Debtors

14

915,419

961,663

Cash at bank

1,780,308

1,935,593

2,695,727

2,897,256

CREDITORS

Amounts falling due within one year

15

(212,023

)

(374,611

)

NET CURRENT ASSETS

2,483,704

2,522,645

TOTAL ASSETS LESS CURRENT LIABILITIES

2,483,730

2,522,776

CAPITAL AND RESERVES

Called up share capital

17

100

100

Retained earnings

18

2,483,630

2,522,676

SHAREHOLDERS' FUNDS

2,483,730

2,522,776

Company's loss for the financial year

(39,046

)

(1,222,463

)

The financial statements were approved by the Board of Directors and authorised for issue on 18 September 2025 and were signed on its behalf by:

J E Castell - Director

Called up

share

Retained

Non-controlling

Total

capital

earnings

Total

interests

equity

£

£

£

£

£

Balance at 1 January 2023

100

8,820,899

8,820,999

(5

)

8,820,994

Changes in equity

Profit for the year

-

47,918

47,918

(109

)

47,809

Total comprehensive income

-

47,918

47,918

(109

)

47,809

Balance at 31 December 2023

100

8,868,817

8,868,917

(114

)

8,868,803

Changes in equity

Profit for the year

-

5,343,152

5,343,152

-

5,343,152

Other comprehensive income

-

-

-

114

114

Total comprehensive income

-

5,343,152

5,343,152

114

5,343,266

Balance at 31 December 2024

100

14,211,969

14,212,069

-

14,212,069

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

100

3,745,139

3,745,239

Changes in equity

Deficit for the year

-

(1,222,463

)

(1,222,463

)

Total comprehensive income

-

(1,222,463

)

(1,222,463

)

Balance at 31 December 2023

100

2,522,676

2,522,776

Changes in equity

Deficit for the year

-

(39,046

)

(39,046

)

Total comprehensive income

-

(39,046

)

(39,046

)

Balance at 31 December 2024

100

2,483,630

2,483,730

Cash flows from operating activities

Cash generated from operations

1

(10,729,011

)

(2,392,730

)

Interest paid

(1,984

)

(11,261

)

Tax paid

(225,990

)

(44,581

)

Net cash from operating activities

(10,956,985

)

(2,448,572

)

Cash flows from investing activities

Sale of intangible fixed assets

398

-

Sale of investment property

10,361,661

-

Interest received

57,131

130,068

Net cash from investing activities

10,419,190

130,068

Decrease in cash and cash equivalents

(537,795

)

(2,318,504

)

Cash and cash equivalents at beginning of year

2

2,555,662

4,874,166

Cash and cash equivalents at end of year

2

2,017,867

2,555,662

1.	RECONCILIATION OF PROFIT FOR THE FINANCIAL YEAR TO CASH GENERATED FROM OPERATIONS

2024

2023

£

£

Profit for the financial year

5,343,152

47,809

Profit on disposal of fixed assets

(7,394,744

)

-

Share of operating profit of associates

(17,020

)

64,095

Finance costs

16,052

15,278

Finance income

(58,573

)

(124,185

)

Taxation

422,261

286,047

(1,688,872

)

289,044

(Increase)/decrease in trade and other debtors

(10,398,275

)

650,544

Increase/(decrease) in trade and other creditors

1,358,136

(3,332,318

)

Cash generated from operations

(10,729,011

)

(2,392,730

)

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 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

2,017,867

2,555,662

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

2,555,662

4,874,166

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank

2,555,662

(537,795

)

2,017,867

2,555,662

(537,795

)

2,017,867

Total

2,555,662

(537,795

)

2,017,867

1.	COMPANY INFORMATION

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

The principal activities of the group in the year under review were those of property development, investment and management.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

Except for the treatment of investment properties, these financial statements have been prepared in accordance with the provisions of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" ("FRS 102") and the requirements of the Companies Act 2006.

Investment properties have not been measured at their fair value as at the year end date which is contrary to the provisions of FRS 102. FRS 102 requires that investment properties must be measured at fair value at each reporting date with any changes in their fair value being recognised in the group's profit and loss account. FRS 102 further requires that any investment properties not meeting the annual requirement for remeasurement at fair value should be reclassified and presented within land and buildings (tangible fixed assets) and depreciated. The financial statements of the group continue to recognise the properties as investment property which is contrary to the provisions of FRS 102.

It is the opinion of the directors that there would be no benefit to the group or its shareholders of recognising investment properties at fair value in the accounts. The directors are further of the opinion that no depreciation would arise on a reclassification of the properties to land and buildings as the net realisable value of the properties is believed to be in excess of their carrying value. As a result, the directors have chosen to continue to present the properties within investment property.

Excluding the accounting treatment in respect of investment properties, the directors are of the opinion that the financial statements give a true and fair view in all other respects.

The financial statements are prepared in sterling which is the functional currency of the group and rounded to the nearest £1.

Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Basis of consolidation

The group financial statements consolidate the financial statements of Canynge Bicknell Limited and all its subsidiary undertakings, drawn up to 31 December each year. As permitted by section 408 of the Companies Act 2006, the profit and loss account of the parent company is not presented as part of the statutory financial statements.

Subsidiaries are consolidated from the date of their acquisition, being the date on which the group obtains control, and continue to be consolidated until the date that such control ceases. Control comprises the power to govern the financial and operating policies of the investee so as to obtain benefit from its activities.

Entities, other than subsidiary undertakings, in which the group has a participating interest, and over whose operating and financial policies the group exercises a significant influence, are treated as associates. In the group financial statements, associates are accounted for using the equity method.

In the parent company financial statements, investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

Significant judgements and estimates

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The directors consider that there were no significant accounting estimates requiring disclosure in these financial statements.

Investments in associates

Investments in associate undertakings are recognised at cost.

Investment property

Investment properties are capitalised at market value when the decision is taken to retain the property concerned for its investment potential, the valuations concerned being undertaken by independent Chartered Surveyors, or at cost if acquired or constructed for investment purposes. Where capitalisation takes place after development of a property, any profit or loss arising is recognised at that stage. The above treatment is not in accordance with the requirements of FRS 102, but the directors are of the opinion that this treatment is required in order that the development activities of the group are fairly stated. The effect of this treatment is dealt with elsewhere within these notes.

The investment properties have not been revalued to current market value in accordance with the provisions of FRS 102. It is the opinion of the directors that there would be no benefit to the group or its shareholders of recognising investment properties at fair value in the accounts. The directors also consider that investment properties are maintained in a high state of repair by the group such that any depreciation charged on a reclassification to land and buildings (tangible fixed assets) would not be appropriate, as the net realisable value of the properties would exceed their carrying value.

Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Financial instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments. Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include trade and other debtors, amounts due from group undertakings and associates and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost. Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Basic financial liabilities, including trade and other creditors and amounts due to group undertakings and associates are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Financial liabilities are derecognised when, and only when, the company's contractual obligations are discharged, cancelled, or they expire.

Taxation

Taxation for the year 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 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.