REGISTERED NUMBER: 14753607 (England and Wales)

Group Strategic Report,

Report of the Directors and

Consolidated Financial Statements

for the Period 1 April 2024 to 31 December 2024

for

Coombe Castle Holdings Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Consolidated Statement of Comprehensive Income

8

Consolidated Balance Sheet

9

Company Balance Sheet

10

Consolidated Statement of Changes in Equity

11

Company Statement of Changes in Equity

12

Consolidated Cash Flow Statement

13

Notes to the Consolidated Cash Flow Statement

14

Notes to the Consolidated Financial Statements

15

DIRECTORS:

D Larvin

C D Woolley

P T Mitchell

B J F Hutchins

J F Gibson

SECRETARY:

D Larvin

REGISTERED OFFICE:

The Old Post Office

41-43 Market Place

Chippenham

Wiltshire

SN15 3HR

REGISTERED NUMBER:

14753607 (England and Wales)

AUDITORS:

Mander Duffill

Chartered Accountants & Statutory Auditor

The Old Post Office

41-43 Market Place

Chippenham

Wiltshire

SN15 3HR

The directors present their strategic report of the company and the group for the period 1 April 2024 to 31 December 2024.

REVIEW OF BUSINESS

On 26 September 2023, the group acquired Coombe Castle International Limited. The business combination has been included within the group's financial statements for the period ended 31 December 2024 using merger accounting.

Coombe Castle International Limited is a family-owned business involved in the sale and distribution of food products in the UK and predominantly export markets, as well as the manufacture of a range of cream products.

The company delivered a strong performance for the period ended 31 December 2024, with turnover proportionally similar to that of the year ended 31 March 2024 and gross profit remaining strong at 17% (31.03.24: 19%).

PRINCIPAL RISKS AND UNCERTAINTIES

Raw material prices have increased to unprecedented levels and inflation remains high which will have an impact on sales and profitability going forward. The continuing currency volatility also remains an important factor to manage.

KEY PERFORMANCE INDICATORS

The principal indicators used to measure the performance of the company over the last 9 months are order intake and profitability by market. These are very detailed key performance indicators and are monitored monthly by the board of directors.

DEVELOPMENT

We continue to develop existing profitable markets and look to open new ones in the dairy and speciality food sector. This will involve further investment in sales, marketing and new products.

YEAR END POSITION

The company's position remains strong. Sales are forecast to increase year on year, but this will be dependent on the impact of the global cost of living increases and how they affect customer demand.

ON BEHALF OF THE BOARD:

D Larvin - Director

15 September 2025

The directors present their report with the financial statements of the company and the group for the period 1 April 2024 to 31 December 2024.

DIVIDENDS

The total distribution of dividends for the period ended 31 December 2024 will be £ 1,909,493 .

DIRECTORS

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

D Larvin

C D Woolley

P T Mitchell

B J F Hutchins

J F Gibson

FINANCIAL INSTRUMENTS

The group uses various financial instruments including loans, cash, equity, capital and various items such as trade debtors and creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for group operations.

Exposure to foreign currency, credit, liquidity and cash flow interest rate risks arise in the normal course of the company business. These risks are limited by the group's financial management policies and practices described below.

Market risk

Market risk encompasses three types of risk - price risk, interest rate risk and currency risk.

Price risk

The group operates in a competitive market. If the company does not continue to compete effectively by developing its product range and responding to activities in the market, it could lose customers and its results, cash flow and financial conditions could adversely be affected.

Interest rate risk

The group's overdraft and cash at bank incur interest cost or income at market rates and the company is therefore exposed to interest rate risk. The group is also exposed to interest rate risk through the impact of rate changes on interest-bearing borrowings. The group's policy is to obtain the most favourable interest rates available for its borrowings. The group does not use derivative instruments to reduce its economic exposure to changes in interest rates.

Foreign currency risk

The group makes purchases from a number of suppliers whose invoices are denominated in currencies other than sterling. The company also make sales to customers denominated in currencies other than sterling. The most frequently used currencies other than sterling are euro and the US dollar.

Credit risk

The group's principal assets are cash deposits and trade debtors. The credit risk associated with cash deposits is limited as the accounts are held with major UK high street banks only. The principal credit risk therefore arises from its trade debtors and the company closely manages its exposure to bad debts by strong credit control, credit checks for new accounts and credit insurance.

Liquidity risk

The group seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. The company policy throughout the year has been to hold cash balances in readily accessible cash deposits.

POLITICAL DONATIONS AND EXPENDITURE

During the period, donations of £7,190 were made, all of which are non-political.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

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

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

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

ON BEHALF OF THE BOARD:

D Larvin - Director

15 September 2025

Opinion

We have audited the financial statements of Coombe Castle Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 31 December 2024 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2024 and of the group's profit for the period then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

-	adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

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

Responsibilities of directors

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

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

Auditors' responsibilities for the audit of the financial statements

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

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

In planning and designing our audit tests, we identify and assess the risks of material mis-statements, whether due to fraud or error. Our risk assessment procedures included:

- Enquiries of management about the entities policies and procedures on compliance with laws and regulations and whether they were aware of any instances of noncompliance together with the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations.

- Enquiries of management about the entities policies and procedures on fraud risks, including any actual, suspected or alleged fraud.

- Considered the nature of the industry and sector, control environment and business performance including the key drivers for directors' remuneration, bonus levels and performance targets.

- Reading minutes of meetings of those charged with governance.

We communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

We obtained an understanding of the legal and regulatory frameworks that the entity operates in, through discussions with the director, and from our commercial knowledge and experience of the sector in which the company operates, to enable us to identify the key laws and regulations applicable to the company. We focused on specific laws and regulations which we considered may have a direct material effect on the financial statement or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override of controls including the following:

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

- Enquiry of management concerning actual and potential litigation and claims.

- Reviewing correspondence with HMRC, and the company's legal advisors.

- Addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether judgements made in making accounting estimates are indicative of a potential bias, and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance.

In addition, as with any audit, there remained a higher risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud 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.

Julian Duffill FCA (Senior Statutory Auditor)

for and on behalf of Mander Duffill

Chartered Accountants & Statutory Auditor

The Old Post Office

41-43 Market Place

Chippenham

Wiltshire

SN15 3HR

15 September 2025

TURNOVER

3

24,975,028

32,469,206

Cost of sales

20,601,444

26,152,516

GROSS PROFIT

4,373,584

6,316,690

Administrative expenses

2,589,841

3,338,839

1,783,743

2,977,851

Other operating income

15,320

15,540

OPERATING PROFIT

5

1,799,063

2,993,391

Interest receivable and similar income

6

69,713

137,323

1,868,776

3,130,714

Interest payable and similar expenses

7

62

-

PROFIT BEFORE TAXATION

1,868,714

3,130,714

Tax on profit

8

469,402

778,259

PROFIT FOR THE FINANCIAL PERIOD

1,399,312

2,352,455

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

1,399,312

2,352,455

Profit attributable to:

Owners of the parent

1,399,312

2,352,455

Total comprehensive income attributable to:

Owners of the parent

1,399,312

2,352,455

FIXED ASSETS

Tangible assets

11

1,982,396

2,035,975

Investments

12

-

-

1,982,396

2,035,975

CURRENT ASSETS

Stocks

13

680,769

916,659

Debtors

14

5,134,226

5,166,885

Cash at bank and in hand

4,899,277

6,030,060

10,714,272

12,113,604

CREDITORS

Amounts falling due within one year

15

4,123,324

3,825,720

NET CURRENT ASSETS

6,590,948

8,287,884

TOTAL ASSETS LESS CURRENT LIABILITIES

8,573,344

10,323,859

PROVISIONS FOR LIABILITIES

18

105,610

115,099

NET ASSETS

8,467,734

10,208,760

CAPITAL AND RESERVES

Called up share capital

19

9,869

10,429

Capital redemption reserve

20

1,120

560

Retained earnings

20

8,456,745

10,197,771

SHAREHOLDERS' FUNDS

8,467,734

10,208,760

The financial statements were approved by the Board of Directors and authorised for issue on 15 September 2025 and were signed on its behalf by:

D Larvin - Director

FIXED ASSETS

Tangible assets

11

-

-

Investments

12

10,989

10,989

10,989

10,989

TOTAL ASSETS LESS CURRENT LIABILITIES

10,989

10,989

CAPITAL AND RESERVES

Called up share capital

19

9,869

10,429

Capital redemption reserve

20

1,120

560

SHAREHOLDERS' FUNDS

10,989

10,989

Company's profit for the financial year

3,140,338

1,335,581

The financial statements were approved by the Board of Directors and authorised for issue on 15 September 2025 and were signed on its behalf by:

D Larvin - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 23 March 2023

-

9,336,351

-

9,336,351

Changes in equity

Increase in share capital

10,989

-

-

10,989

Purchase of own shares

(560

)

(1,069,724

)

560

(1,069,724

)

Dividends

-

(421,311

)

-

(421,311

)

Total comprehensive income

-

2,352,455

-

2,352,455

Balance at 31 March 2024

10,429

10,197,771

560

10,208,760

Changes in equity

Purchase of own shares

(560

)

(1,230,845

)

560

(1,230,845

)

Dividends

-

(1,909,493

)

-

(1,909,493

)

Total comprehensive income

-

1,399,312

-

1,399,312

Balance at 31 December 2024

9,869

8,456,745

1,120

8,467,734

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Changes in equity

Increase in share capital

10,989

-

-

10,989

Purchase of own shares

(560

)

(1,069,724

)

560

(1,069,724

)

Dividends

-

(265,857

)

-

(265,857

)

Total comprehensive income

-

1,335,581

-

1,335,581

Balance at 31 March 2024

10,429

-

560

10,989

Changes in equity

Purchase of own shares

(560

)

(1,230,845

)

560

(1,230,845

)

Dividends

-

(1,909,493

)

-

(1,909,493

)

Total comprehensive income

-

3,140,338

-

3,140,338

Balance at 31 December 2024

9,869

-

1,120

10,989

Cash flows from operating activities

Cash generated from operations

1

2,501,233

2,669,825

Interest paid

(62

)

-

Tax paid

(532,854

)

(807,533

)

Net cash from operating activities

1,968,317

1,862,292

Cash flows from investing activities

Purchase of tangible fixed assets

(28,475

)

(141,613

)

Sale of tangible fixed assets

-

1,000

Interest received

69,713

137,323

Net cash from investing activities

41,238

(3,290

)

Cash flows from financing activities

Share buyback

(1,230,845

)

(1,069,724

)

Cash acquired on merger

-

5,662,093

Equity dividends paid by subsidiary

-

(155,454

)

Equity dividends paid

(1,909,493

)

(265,857

)

Net cash from financing activities

(3,140,338

)

4,171,058

(Decrease)/increase in cash and cash equivalents

(1,130,783

)

6,030,060

Cash and cash equivalents at beginning of period

2

6,030,060

-

Cash and cash equivalents at end of period

2

4,899,277

6,030,060

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

Period

Period

1.4.24

23.3.23

to

to

31.12.24

31.3.24

£

£

Profit before taxation

1,868,714

3,130,714

Depreciation charges

82,054

114,155

Profit on disposal of fixed assets

-

(1,000

)

Finance costs

62

-

Finance income

(69,713

)

(137,323

)

1,881,117

3,106,546

Decrease in stocks

235,890

105,936

Decrease in trade and other debtors

32,659

518,306

Increase/(decrease) in trade and other creditors

351,567

(1,060,963

)

Cash generated from operations

2,501,233

2,669,825

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Period ended 31 December 2024

31.12.24

1.4.24

£

£

Cash and cash equivalents

4,899,277

6,030,060

Period ended 31 March 2024

31.3.24

23.3.23

£

£

Cash and cash equivalents

6,030,060

-

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank and in hand

6,030,060

(1,130,783

)

4,899,277

6,030,060

(1,130,783

)

4,899,277

Total

6,030,060

(1,130,783

)

4,899,277

1.	STATUTORY INFORMATION

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Basis of consolidation

The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 December 2024.

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

The merger method of accounting has been used to account for business combinations/reconstruction that result in the acquisition of the subsidiary of the group.

Accounting policies of subsidiaries are consistent with that of the group.

Significant judgements and estimates

In the application of the company's accounting policies, management is required to make judgements, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below:

Trade and other receivables - The allowance for doubtful debts involves significant management judgement and review of individual receivables based on individual customer creditworthiness, current economic trends and analysis of historical bad debts.

Stock provisions - Significant estimates are involved in the determination of stock provisions. Management exercise significant judgement in determining whether costs of stock items can be recovered. A provision is made where a loss can be reliably estimated.

Turnover

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

Turnover includes revenue from the sale of goods only. The sale of goods are recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property

-

2% on cost

Property improvements

-

5% on cost

Plant and machinery

-

15% on cost

Furniture, fixtures and fittings

-

25% on cost and 15% on cost

Computer equipment

-

33% on cost and 25% on cost

Freehold land is not depreciated.

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Such cost includes costs directly attributable to making the asset capable of operating as intended.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to sell. Inventories are recognised as an expense in the period in which the related revenue is recognised.

Cost is determined on the first-in, first-out (FIFO) method. Cost includes the purchase price, including taxes and duties and transport and handling directly attributable to bringing the inventory to its present location and condition.

At the end of each reporting period stocks are assessed for impairment. If an item of inventory is impaired, the identified stock is reduced to its selling price less costs to complete and sell and an impairment charge is recognised in the profit and loss account. Where a reversal of the impairment is required the impairment charge is reversed, up to the original impairment loss, and is recognised as a credit in the profit and loss account.

Financial instruments

The company has chosen to adopt the requirements of sections 11 and 12 of FRS 102 in respect of the measurement and disclosure of financial instruments.

Trade and other debtors

Trade and other debtors are initially recognised at fair value and thereafter at amortised cost using the effective interest method, less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases, the receivables are stated at cost less impairment losses for bad and doubtful debts.

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the statements of financial position, bank overdrafts are shown within borrowings or current liabilities.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at the end of each reporting period. Financial assets are considered to be impaired when there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been affected.

For all financial assets, objective evidence of impairment could include:

- significant financial difficulty of the issuer or counterparty;

- breach of contract, such as a default or delinquency in interest or principal payments;

- it becoming probable that the borrower will enter bankruptcy or financial re-organisation;

- the disappearance of an active market for that financial asset because of financial difficulties.

For certain categories of financial asset, such as trade debtors, assets that are assessed not to be impaired individually are, in addition, assessed for impairment on a collective basis. Objective evidence of impairment for a portfolio of trade debtors could include the company's past experience of collecting payments, an increase in the number of delayed payments in the portfolio past the average credit period, as well as observable changes in national or local economic conditions that correlate with default of trade debts.

For financial assets carried at amortised cost, the amount of the impairment loss recognised is the difference between the assets carrying amount and the present value of estimated future cash flows, discounted at the financial assets original effective interest rate.

For financial assets carried at cost, the amount of the impairment loss is measured as the difference between the asset's carrying amount and the present value of the estimated future cash flows discounted at the current market rate of return for a similar financial asset. Such impairment loss will not be reversed in subsequent periods.

For financial assets measured at amortised cost, if, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occuring after the impairment was recognised, the previously recognised impairment loss is reversed through profit or loss to the extent that the carrying amount at the date of impairment is reversed does not exceed the amortised cost had the impairment not been recognised.

Trade and other creditors

Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost.