REGISTERED NUMBER: 04499290 (England and Wales)

BCTI HOLDINGS LIMITED

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

AUDITED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Consolidated Statement of Comprehensive Income

7

Consolidated Balance Sheet

8

Company Balance Sheet

9

Consolidated Statement of Changes in Equity

10

Company Statement of Changes in Equity

11

Consolidated Cash Flow Statement

12

Notes to the Consolidated Cash Flow Statement

13

Notes to the Consolidated Financial Statements

14

DIRECTORS:

A McMeeking

P McMeeking

REGISTERED OFFICE:

Sovereign House

12 Warwick Street

Coventry

West Midlands

CV5 6ET

REGISTERED NUMBER:

04499290 (England and Wales)

AUDITORS:

Burrows Scarborough Limited

(Statutory Auditor)

Sovereign House

12 Warwick Street

Coventry

CV5 6ET

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

REVIEW OF BUSINESS

The company showed encouraging growth in revenue in 2024. Pleasingly profitability was maintained in spite of rising costs mainly through supplier price increases being passed on to retail price.

Sales have increased from £20.2m to £22.3m and gross margin has increased from 50.1% to 51.2%.

Net profit before tax has increased from £4.1m to £4.8m whilst net profit after tax margin has increased from 15.0% to 15.6%.

At the balance sheet date, net assets had increased from £19.8m to £23.3m and whilst cash balances had decreased from £3.6m to £3.3m, bank loan balances had decreased from £4.7m to £2.2m. Dividends of £20k were paid in the year.

In 2024, the group has added 3 new pubs to its estate (The White Hart, The Three Fishes and The Malvern Pub) and has not sold any. It has also accelerated the paying down of some loan debts over the last year.

The group hopes to continue to slowly acquire individual public houses, as and when they become available.

The group hopes to extend some of the brewery to allow for increased brewing capacity for the years ahead.

Whilst the pub market remains challenging, the company hopes to continue to try to focus on providing old-fashioned "wet" pubs with real ales in order to mark it apart from many other pub operators.

PRINCIPAL RISKS AND UNCERTAINTIES

The company is exposed to the following principal risks and uncertainties:

1. Financing Costs: An increase in interest rates can result in higher financing costs for our business. This could lead to increased costs and reduced margins.

2. Consumer Demand: Higher interest rates can dampen consumer purchasing power, reduce the overall demand for discretionary spending and reduce sales.

3. Inflation: Higher inflation can increase our costs and we may not be able to pass these increases on to the consumer, so our margins may be reduced.

4. Cash Flow Management: Managing cash flow becomes more critical in a high-interest rate environment. Adequate liquidity is essential for day-to-day operations and to seize opportunities that may arise.

The company proactively monitors these risks and uncertainties, keeping close control over its sale prices, costs and margins. The company manages interest cost through robust treasury management.

ON BEHALF OF THE BOARD:

Director

6 May 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 activity of the group in the year under review was that of public house management.

DIVIDENDS

An interim dividend of £194.17 per share was paid on 31 July 2024. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 December 2024 will be £ 20,000 .

No dividends were paid after the year end but before the date these accounts were signed.

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 McMeeking

P McMeeking

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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, Burrows Scarborough Limited, are deemed to be reappointed under section 487(2) of the Companies Act 2006.

ON BEHALF OF THE BOARD:

A McMeeking - Director

6 May 2025

Opinion

We have audited the financial statements of BCTI Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year 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 year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 three, 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:

It is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the company's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

- obtained an understanding of the nature of the industry and sector, including the legal and regulatory frameworks that the company operates in and how the company is complying with the legal and regulatory frameworks;

- enquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud;

- discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud.

As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are the health and safety legislation, FRS 102, the Companies Act 2006 and tax law. We performed audit procedures to detect non-compliance which may have a material impact on the financial statements, which included:

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

- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business and assessing whether the judgements made in making accounting estimates are indicative of potential bias.

- Enquiring of management around actual and potential litigation and claims, including health and safety.

- Enquiring of company's staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations.

- Reviewing minutes of meetings of management.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

Nicholas Burrows BA BFP FCA (Senior Statutory Auditor)

for and on behalf of Burrows Scarborough Limited

(Statutory Auditor)

Sovereign House

12 Warwick Street

Coventry

CV5 6ET

6 May 2025

TURNOVER

3

22,322,714

20,176,016

Cost of sales

10,884,009

10,065,344

GROSS PROFIT

11,438,705

10,110,672

Administrative expenses

6,793,564

5,995,764

4,645,141

4,114,908

Other operating income

241,684

249,600

OPERATING PROFIT

5

4,886,825

4,364,508

Interest receivable and similar income

89,328

42,551

4,976,153

4,407,059

Interest payable and similar expenses

6

223,658

354,899

PROFIT BEFORE TAXATION

4,752,495

4,052,160

Tax on profit

7

1,284,076

1,016,527

PROFIT FOR THE FINANCIAL YEAR

3,468,419

3,035,633

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

3,468,419

3,035,633

Profit attributable to:

Owners of the parent

3,468,419

3,035,633

Total comprehensive income attributable to:

Owners of the parent

3,468,419

3,035,633

FIXED ASSETS

Intangible assets

10

(407,792

)

(465,761

)

Tangible assets

11

24,103,842

22,531,198

Investments

12

-

-

23,696,050

22,065,437

CURRENT ASSETS

Stocks

13

650,131

582,570

Debtors: amounts falling due within one year

14

310,941

310,503

Debtors: amounts falling due after more than one year

14

281,013

286,653

Prepayments and accrued income

156,411

145,714

Cash at bank and in hand

3,253,974

3,647,311

4,652,470

4,972,751

CREDITORS

Amounts falling due within one year

15

2,242,176

1,971,646

NET CURRENT ASSETS

2,410,294

3,001,105

TOTAL ASSETS LESS CURRENT LIABILITIES

26,106,344

25,066,542

CREDITORS

Amounts falling due after more than one year

16

(1,906,587

)

(4,288,428

)

PROVISIONS FOR LIABILITIES

20

(571,938

)

(537,819

)

ACCRUALS AND DEFERRED INCOME

21

(354,782

)

(415,677

)

NET ASSETS

23,273,037

19,824,618

CAPITAL AND RESERVES

Called up share capital

22

103

103

Consolidation reserve

23

3,158,334

3,158,334

Retained earnings

23

20,114,600

16,666,181

SHAREHOLDERS' FUNDS

23,273,037

19,824,618

The financial statements were approved by the Board of Directors and authorised for issue on 6 May 2025 and were signed on its behalf by:

A McMeeking - Director

FIXED ASSETS

Intangible assets

10

600

900

Tangible assets

11

19,716,660

18,357,271

Investments

12

3,204,246

3,204,246

22,921,506

21,562,417

CURRENT ASSETS

Debtors: amounts falling due within one year

14

524,421

726,286

Debtors: amounts falling due after more than one year

14

281,013

286,653

Prepayments and accrued income

23,263

69,982

Cash at bank

2,038,238

2,432,140

2,866,935

3,515,061

CREDITORS

Amounts falling due within one year

15

846,096

1,039,506

NET CURRENT ASSETS

2,020,839

2,475,555

TOTAL ASSETS LESS CURRENT LIABILITIES

24,942,345

24,037,972

CREDITORS

Amounts falling due after more than one year

16

(1,906,587

)

(4,288,428

)

ACCRUALS AND DEFERRED INCOME

21

(40,521

)

(80,060

)

NET ASSETS

22,995,237

19,669,484

CAPITAL AND RESERVES

Called up share capital

22

103

103

Retained earnings

23

22,995,134

19,669,381

SHAREHOLDERS' FUNDS

22,995,237

19,669,484

Company's profit for the financial year

3,345,753

2,263,284

The financial statements were approved by the Board of Directors and authorised for issue on 6 May 2025 and were signed on its behalf by:

A McMeeking - Director

Called up

share

Retained

Consolidation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2023

103

13,660,548

3,158,334

16,818,985

Changes in equity

Dividends

-

(30,000

)

-

(30,000

)

Total comprehensive income

-

3,035,633

-

3,035,633

Balance at 31 December 2023

103

16,666,181

3,158,334

19,824,618

Changes in equity

Dividends

-

(20,000

)

-

(20,000

)

Total comprehensive income

-

3,468,419

-

3,468,419

Balance at 31 December 2024

103

20,114,600

3,158,334

23,273,037

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

103

17,436,097

17,436,200

Changes in equity

Dividends

-

(30,000

)

(30,000

)

Total comprehensive income

-

2,263,284

2,263,284

Balance at 31 December 2023

103

19,669,381

19,669,484

Changes in equity

Dividends

-

(20,000

)

(20,000

)

Total comprehensive income

-

3,345,753

3,345,753

Balance at 31 December 2024

103

22,995,134

22,995,237

Cash flows from operating activities

Cash generated from operations

1

6,333,662

6,004,104

Interest paid

(223,658

)

(354,899

)

Tax paid

(1,283,327

)

(753,566

)

Net cash from operating activities

4,826,677

4,895,639

Cash flows from investing activities

Purchase of tangible fixed assets

(2,773,133

)

(3,171,515

)

Repayments of loans from key management

5,494

5,350

Interest received

89,328

42,551

Net cash from investing activities

(2,678,311

)

(3,123,614

)

Cash flows from financing activities

Bank loan repayments in year

(2,448,249

)

(927,213

)

Amount introduced by directors

396,546

-

Amount withdrawn by directors

(470,000

)

(46,600

)

Equity dividends paid

(20,000

)

(30,000

)

Net cash from financing activities

(2,541,703

)

(1,003,813

)

(Decrease)/increase in cash and cash equivalents

(393,337

)

768,212

Cash and cash equivalents at beginning of year

2

3,647,311

2,879,099

Cash and cash equivalents at end of year

2

3,253,974

3,647,311

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

2024

2023

£

£

Profit before taxation

4,752,495

4,052,160

Depreciation charges

1,572,025

1,419,672

Finance costs

223,658

354,899

Finance income

(89,328

)

(42,551

)

6,458,850

5,784,180

(Increase)/decrease in stocks

(67,561

)

3,955

(Increase)/decrease in trade and other debtors

(53,440

)

14,069

(Decrease)/increase in trade and other creditors

(4,187

)

201,900

Cash generated from operations

6,333,662

6,004,104

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

3,253,974

3,647,311

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

3,647,311

2,879,099

3.	ANALYSIS OF CHANGES IN NET (DEBT)/FUNDS

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank and in hand

3,647,311

(393,337

)

3,253,974

3,647,311

(393,337

)

3,253,974

Debt

Debts falling due within 1 year

(363,130

)

66,408

(296,722

)

Debts falling due after 1 year

(4,288,428

)

2,381,841

(1,906,587

)

(4,651,558

)

2,448,249

(2,203,309

)

Total

(1,004,247

)

2,054,912

1,050,665

1.	STATUTORY INFORMATION

BCTI 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.

The company's head office is located at 69 Third Avenue, Pensnett Trading Estate, Kingswinford, West Midlands, DY6 7FD.

The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared in accordance with applicable accounting standards including Financial Reporting Standard 102 The Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The financial statements have been prepared on a going concern basis under the historical cost convention, modified as necessary to include certain items at fair value.

Basis of consolidation

The company owns 100% of the Ordinary share capital of Black Country Traditional Inns Limited and Fireside Inns Limited. Both subsidiaries have their registered office at Sovereign House, 12 Warwick Street, Coventry, West Midlands, CV5 6ET.

On the basis that BCTI Holdings owns 100% of the issued share capital in both of these companies, they are both fully consolidated into these financial statements.

Critical accounting judgements and key sources of estimation uncertainty

Many of the amounts included in the financial statements involve the use of judgement and/or estimation. These judgements and estimates are based on management's best knowledge of the relevant facts and circumstances, having regard to prior experience, but actual results may differ from the amounts included in the financial statements. Information about such judgements and estimation is contained in these accounting policies and/or the notes to the financial statements and the key areas are summarised below:

Judgements in applying accounting policies

There are no judgements (apart from those involving estimates) that have been made in the process of applying these accounting policies that have had a significant effect on amounts recognised in the financial statements.

Sources of estimation uncertainty

The main estimate, which involves a significant amount of judgement, relates to the impairment of investments and property in the parent company BCTI Holdings Limited. The potential impairment comes from the combination of the parent company investing in the share capital of it's two subsidiaries and then purchasing the freehold property from these subsidiaries at market value, leading to a potential duplication of fixed assets on their balance sheet.

Management have assessed the recoverable amount of both the investments and the properties in question by calculating their value in use and assessing the present value of the future cash flows expected to be derived from both the trade (investments) and the properties (freehold properties). Key assumptions include:

- the 7 year refurbishment cycle being maintained;

- the trade and properties continuing to generate the same level of income for the next 50 years; and

- a weighted average cost of capital of 8.8%.

On this basis, management are carrying forward an impairment to freehold property totalling £880,000. Management are not expecting an increase in cost of capital though they are aware that a future increase is likely to materially impact on this impairment calculation, though in future years, management expect increasing profits and a static cost figure to offset any increase in cost of capital.

Other estimates include depreciation, where rates are based on estimates of the useful lives and residual values of the assets involved (see the Tangible fixed assets accounting policy) and amortisation, where rates are based on estimates of the useful lives of the underlying assets.

Turnover

Turnover from the sale of bar purchases is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually on point of sale.

Income from accommodation sales is recognised at the same time as the customers' stay.

Goodwill

Goodwill, mainly relates to consolidated goodwill following the acquisition of 2 subsidiaries. Consolidated goodwill relating to assets realised in the year of acquisition was amortised immediately, with the balance being amortised evenly over its useful life of 10 years.

Tangible fixed assets

Tangible fixed assets are initially recognised at cost and the company has elected to adopt the cost model for properties rented to other group companies.

The group has a policy of not providing for depreciation on Freehold property. It is considered that depreciation is immaterial due to both the very long useful economic lives and the high residual value of the assets.

The group has a policy and practice of regular maintenance and repair (charges for which are recognised in the profit and loss account) such that the Freehold property is kept to its previously assessed standard of performance. In addition to this, it is considered that the Freehold property is unlikely to suffer from economic or technological obsolescence.

The group reviews the Freehold property for impairment in accordance with FRS 102 at the end of each reporting period.

Property improvements are depreciated on a straight line basis over 5 years for minor refurbishments or 7 years for major refurbishments.

On other asset classes, depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life:

Long leasehold

- over the period of the lease, 10% on cost

Plant & machinery

- 25% on reducing balance

Fixtures & fittings

- 25% on reducing balance

Motor vehicles

- 25% on reducing balance

Computer equipment

- 33% on cost

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 Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

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