REGISTERED NUMBER: 04988559 (England and Wales)

Group Strategic Report,

Report of the Directors and

Consolidated Financial Statements

for the Year Ended 31 December 2024

for

TELLISFORD LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Consolidated Statement of Comprehensive Income

11

Consolidated Balance Sheet

12

Company Balance Sheet

14

Consolidated Statement of Changes in Equity

15

Company Statement of Changes in Equity

16

Consolidated Cash Flow Statement

17

Notes to the Consolidated Cash Flow Statement

18

Notes to the Consolidated Financial Statements

19

DIRECTORS:

E A Krause

Gordon C Verhoef

Mrs C R Verhoef

A J Krause

REGISTERED OFFICE:

Unit 14

Hoddesdon Enterprise Centre

Pindar Road

Hoddesdon

Hertfordshire

EN11 0FJ

REGISTERED NUMBER:

04988559 (England and Wales)

AUDITORS:

Trevor Jones & Partners Ltd

Statutory Auditor

Unit 14

Hoddesdon Enterprise Centre

Pindar Road

Hoddesdon

Hertfordshire

EN11 0FJ

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

REVIEW OF BUSINESS

The results for the year and financial position of the group are as shown in the annexed financial statements.

Introduction

The group specialises in the construction sector - designing, supplying and installing stonework and all associated works and also cleaning and restoration thereto.

With roots tracing back over 150 years, the group combines traditional values with a modern, progressive approach to meet the increasingly sophisticated demands of the construction industry.

Over the years the group has earned a reputation for quality service.

PRINCIPAL RISKS AND UNCERTAINTIES

Any business faces a number of risks and uncertainties in its operations. Some of these risks are common across all types of business; others are specific to the particular business in which a company operates.

The principal risks faced by the group and its responses thereto are summarised in this analysis. Not all of these factors are within the group's control. There may be other risks and uncertainties which are unknown to the group or which may not be deemed material now which could turn out to be material in the future.

Key risks and the group's response to these risks are shown below:

1. Financial Risk Management

The group's financial instruments comprise of cash at bank. The main purpose of these financial instruments is to raise adequate finance for the group's operations, together with management of working capital.

The main risk arising from the group's financial instruments is liquidity risk As can be seen from the cash flow notes in the annexed financial statements, the group currently does not suffer from a liquidity problem. It alleviates this risk by collecting stage payments from customers on most contracts and agreeing credit terms with suppliers.

2. Foreign Currency Risk

The group is exposed to foreign currency fluctuation to a degree insofar as the group purchases stone priced in Euros and US Dollars.

The group minimises this risk by appropriate pricing in tenders and by forward purchasing required currency whenever possible.

3. Customer concentration risk

As with any business its size the group relies on a relatively small number of customers for a large percentage of its turnover. The loss of a key customer can have a detrimental impact on earnings.

The group is focused on customer retention by supplying a top rate service as well as obtaining new customers thus broadening the number of key customers.

4. Competitive pressure risk

The company operates in a highly competitive market environment and performance may suffer if there is a loss of competitiveness vis-a-vis its competitors.

The group reviews the competitiveness of its services on an ongoing basis, both formally

( via regularly scheduled management meetings) and informally with its clients and customers in the market.

5. Construction industry risk

The group supplies services mainly to customers in the construction industry and so would be affected by a slowdown in this industry especially if caused by price falls in commercial property.

This risk is mitigated by the group constantly searching out a wider customer base and enhanced products and services to increase demand.

6. Loss of key personnel

Loss of key personnel, particularly key management team members, could have a detrimental effect on operations.

Remuneration, benefits and working conditions are constantly reviewed and compared with the marketplace to protect against loss of personnel. All key management team members are under contract with adequate notice provisions.

7. Credit risk

Default by customers on receivables could negatively affect earnings.

Credit is assessed and monitored by financial staff, and where risk is judged to be high more stringent credit terms are implemented.

8. Loss of supply of critical materials

Loss of supply of critical materials from key suppliers could affect the company's ability to carry out contracts for its customers.

Where possible the company attempts to dual source all key materials from multiple suppliers. The group also endeavours to maintain supply contracts with all key suppliers.

FINANCIAL REVIEW

Revenue

Turnover decreased by 7%, this decrease reflected the marketplace during the year.

Gross Profit Margin

Gross profit margin for the year as a percentage of cost of sales was 16% (2023: 18%).

Profit after taxation

The profit for the year after taxation was £406,947 (2023: £679,008).

Dividends

A dividend of £1,200,000 was paid during the year (2023: Nil).

Cash at bank

The balance in hand at year end was £4,654,124 (2023: £6,521,702).

Shareholders' Funds

As at the year end, stood at £11,499,540 (2023: £10,660,314).

ON BEHALF OF THE BOARD:

Gordon C Verhoef - Director

25 September 2025

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

DIVIDENDS

The total distribution of dividends for the year ended 31 December 2024 will be £ 1,200,000 .

FUTURE DEVELOPMENTS

This year's accounts continue to include a cost of £1.15 million (first incurred in the accounts for the year ending 31st December 2022) to replace all of the shower floors on our previously completed Marble Arch Place project. This is a result of a product not performing in accordance with manufacturers data sheet. We are currently pursuing these costs from our insurers and the product manufacturer.

DIRECTORS

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

E A Krause

Gordon C Verhoef

Mrs C R Verhoef

A J Krause

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, Trevor Jones & Partners Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Gordon C Verhoef - Director

25 September 2025

Opinion

We have audited the financial statements of Tellisford 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 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:

The extent to which the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment and health and safety legislation;

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

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

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

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

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

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

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

- tested journal entries to identify unusual transactions;

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

- investigated the rationale behind significant or unusual transactions.

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

- agreeing financial statement disclosures to underlying supporting documentation;

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

- reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the company's legal advisors.

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

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Christopher James Whale (Senior Statutory Auditor)

for and on behalf of Trevor Jones & Partners Ltd

Statutory Auditor

Unit 14

Hoddesdon Enterprise Centre

Pindar Road

Hoddesdon

Hertfordshire

EN11 0FJ

26 September 2025

TURNOVER

24,871,107

26,705,537

Cost of sales

20,844,956

21,809,759

GROSS PROFIT

4,026,151

4,895,778

Administrative expenses

3,895,994

4,497,569

130,157

398,209

Other operating income

40,115

-

OPERATING PROFIT

4

170,272

398,209

Interest receivable and similar income

262,310

280,799

432,582

679,008

Interest payable and similar expenses

5

6,358

-

PROFIT BEFORE TAXATION

426,224

679,008

Tax on profit

6

19,277

-

PROFIT FOR THE FINANCIAL YEAR

406,947

679,008

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

406,947

679,008

Profit attributable to:

Owners of the parent

733,516

444,007

Non-controlling interests

(326,569

)

235,001

406,947

679,008

Total comprehensive income attributable to:

Owners of the parent

406,947

679,008

FIXED ASSETS

Intangible assets

9

224,475

23,864

Tangible assets

10

53,815

53,362

Investments

11

-

-

Investment property

12

4,000,000

-

4,278,290

77,226

CURRENT ASSETS

Debtors

13

7,558,496

10,319,550

Cash at bank

4,654,124

6,521,702

12,212,620

16,841,252

CREDITORS

Amounts falling due within one year

14

3,458,528

6,258,164

NET CURRENT ASSETS

8,754,092

10,583,088

TOTAL ASSETS LESS CURRENT LIABILITIES

13,032,382

10,660,314

CREDITORS

Amounts falling due after more than one year

15

(1,060,000

)

-

PROVISIONS FOR LIABILITIES

18

(472,842

)

-

NET ASSETS

11,499,540

10,660,314

CAPITAL AND RESERVES

Called up share capital

19

200

200

Retained earnings

20

5,892,256

6,358,740

SHAREHOLDERS' FUNDS

5,892,456

6,358,940

NON-CONTROLLING INTERESTS

21

5,607,084

4,301,374

TOTAL EQUITY

11,499,540

10,660,314

The financial statements were approved by the Board of Directors and authorised for issue on 25 September 2025 and were signed on its behalf by:

Gordon C Verhoef - Director

E A Krause - Director

FIXED ASSETS

Intangible assets

9

-

-

Tangible assets

10

-

-

Investments

11

402,968

402,968

Investment property

12

-

-

402,968

402,968

CURRENT ASSETS

Debtors

13

144,634

144,634

CREDITORS

Amounts falling due within one year

14

88,201

88,201

NET CURRENT ASSETS

56,433

56,433

TOTAL ASSETS LESS CURRENT LIABILITIES

459,401

459,401

CAPITAL AND RESERVES

Called up share capital

19

200

200

Retained earnings

459,201

459,201

SHAREHOLDERS' FUNDS

459,401

459,401

Company's profit for the financial year

695,501

-

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Directors and authorised for issue on 25 September 2025 and were signed on its behalf by:

Gordon C Verhoef - Director

E A Krause - Director

Called up

share

Retained

Non-controlling

Total

capital

earnings

Total

interests

equity

£

£

£

£

£

Balance at 1 January 2023

200

5,914,733

5,914,933

4,301,374

10,216,307

Changes in equity

Total comprehensive income

-

444,007

444,007

-

444,007

Balance at 31 December 2023

200

6,358,740

6,358,940

4,301,374

10,660,314

Changes in equity

Dividends

-

(1,200,000

)

(1,200,000

)

-

(1,200,000

)

Total comprehensive income

-

733,516

733,516

-

733,516

Balance at 31 December 2024

200

5,892,256

5,892,456

4,301,374

10,193,830

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

200

459,201

459,401

Changes in equity

Balance at 31 December 2023

200

459,201

459,401

Changes in equity

Dividends

-

(695,501

)

(695,501

)

Total comprehensive income

-

695,501

695,501

Balance at 31 December 2024

200

459,201

459,401

Cash flows from operating activities

Cash generated from operations

1

(935,830

)

(955,303

)

Interest paid

(6,358

)

-

Net cash from operating activities

(942,188

)

(955,303

)

Cash flows from investing activities

Purchase of tangible fixed assets

-

(32,216

)

Sale of tangible fixed assets

12,300

-

Interest received

262,310

280,799

Net cash from investing activities

274,610

248,583

Cash flows from financing activities

Equity dividends paid

(1,200,000

)

-

Net cash from financing activities

(1,200,000

)

-

Decrease in cash and cash equivalents

(1,867,578

)

(706,720

)

Cash and cash equivalents at beginning of year

2

6,521,702

7,228,422

Cash and cash equivalents at end of year

2

4,654,124

6,521,702

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

2024

2023

£

£

Profit before taxation

426,224

679,008

Depreciation charges

43,189

22,588

Profit on disposal of fixed assets

(4,446

)

-

Finance costs

6,358

-

Finance income

(262,310

)

(280,799

)

209,015

420,797

Decrease/(increase) in trade and other debtors

1,754,946

(2,053,834

)

(Decrease)/increase in trade and other creditors

(2,899,791

)

677,734

Cash generated from operations

(935,830

)

(955,303

)

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

4,654,124

6,521,702

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

6,521,702

7,228,422

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank

6,521,702

(1,867,578

)

4,654,124

6,521,702

(1,867,578

)

4,654,124

Debt

Debts falling due after 1 year

-

(1,060,000

)

(1,060,000

)

-

(1,060,000

)

(1,060,000

)

Total

6,521,702

(2,927,578

)

3,594,124

1.	STATUTORY INFORMATION

Tellisford 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.

Judgements in applying accounting and key sources of estimation uncertainty

Preparation of the financial statements requires management to make significant judgements and estimates.

There are no key assumptions concerning the future, or other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

The following principal accounting policies have been applied:

Going concern

The group's business activities, together with the factors likely to affect its future development, performance and position are set out in the Group Strategic Report on page 2.

The group's forecasts and projections, taking account of recent decreases and reasonably possible changes in trading performance, show that the group should be able to operate within the level of its current facility for a period of at least 12 months from the date of signing of the financial statements.

After making enquiries, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and accounts.

Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the group and the revenue can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes based in the value of work carried out in the year.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2008, is being amortised evenly over its estimated useful life of twenty years.

A further business was acquired in 2024. The goodwill on this acquisition is being amortised over ten years.

Intangible assets

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

Tangible fixed assets

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

Plant and machinery

-

20% on cost and 20% on reducing balance

Fixtures and fittings

-

25% on cost and 20% on cost

Motor vehicles

-

25% on cost

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

Financial instruments

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

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.

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

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

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

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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.

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.