REGISTERED NUMBER: 06622012 (England and Wales)

Group Strategic Report, Directors' Report and

Consolidated Financial Statements

for the Year Ended 31 December 2024

for

BaseTek (Holdings) Limited

Page

Company Information

1

Group Strategic Report

2

Directors' Report

4

Independent Auditors' Report

6

Consolidated Statement of Comprehensive Income

10

Consolidated Statement of Financial Position

11

Company Statement of Financial Position

12

Consolidated Statement of Changes in Equity

13

Company Statement of Changes in Equity

14

Consolidated Statement of Cash Flows

15

Notes to the Consolidated Statement of Cash Flows

16

Notes to the Consolidated Financial Statements

17

DIRECTORS:

J P Ashfield

P J L Ashfield

Mrs F A Ashfield

REGISTERED OFFICE:

3 Lytham Road

Ransomes Europark

Ipswich

Suffolk

IP3 9BL

REGISTERED NUMBER:

06622012 (England and Wales)

AUDITORS:

Knights Lowe Limited

Eldo House

Kempson Way

Suffolk Business Park

Bury St Edmunds

Suffolk

IP32 7AR

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

FAIR REVIEW OF THE BUSINESS

The group’s continued focus on delivering outstanding customer service has been instrumental in securing several significant new procurement contracts during the year. This aligns with the group’s strategic objective of strengthening client relationships and expanding its market presence.

Although turnover for 2024 was marginally lower than in 2023, the group achieved an improved gross profit margin, resulting in a £0.25m increase in gross profit to £5.85m. This reflects an ongoing emphasis on operational efficiency and value-driven delivery.

The directors have maintained strong oversight of overheads, and this, combined with the financial benefits of a robust balance sheet and solid cash generation, has contributed to a £0.67m increase in profit before tax to £3.33m. These results support the group’s strategic goals of sustainable profitability and long-term financial resilience.

PRINCIPAL RISKS AND UNCERTAINTIES

The group mitigates standard commercial risks through professional operations, a highly capable team, and strong relationships with key customers and suppliers across diverse sectors and regions.

The principal risks and uncertainties facing the group are as follows:

Exposure to bad debts

The group operates across a wide geographical market, which increases its exposure to potential bad debts. To mitigate this risk, strict credit control procedures are implemented for both new and existing customers. The age and value of trade debtor balances are closely monitored and reviewed in detail on a weekly basis.

Exposure to exchange rates

The group reports in sterling and conducts operations in multiple foreign currencies. Consequently, it is exposed to foreign exchange risk arising from fluctuations in exchange rates. This risk primarily affects the translation of financial results and the valuation of related net assets. To mitigate this exposure, the group actively employs hedging strategies. These include natural hedging, by aligning sales and purchases in the same currencies, as well as the use of forward exchange contracts.

Financial risk

In line with standard business practice, the group is committed to minimising financial risk. The directors employ a range of measures to manage this risk, including the preparation of regular management accounts and the close monitoring of cash flow.

KEY PERFORMANCE INDICATORS

The directors consider the following key performance indicators are those that communicate the financial performance and strength of the group:

2024

2023

£

£

Turnover

39,867,526

41,412,830

Gross profit

5,850,928

5,596,938

Gross profit rate

14.68%

13.51%

Profit before taxation

3,332,658

2,667,168

Net assets

14,778,494

13,365,647

EBITDA

3,362,676

2,855,055

ON BEHALF OF THE BOARD:

J P Ashfield - Director

26 September 2025

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

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of the global procurement of engineering and associated products. The principal activity of the company during the year was that of a holding company.

DIVIDENDS

The total distribution of dividends for the year ended 31 December 2024 was £1,085,626 (2023: £242,500). The directors do not propose a final dividend.

FUTURE DEVELOPMENTS

The directors will continue to explore new markets and opportunities in order to build upon the group's strong position.

DIRECTORS

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

J P Ashfield

P J L Ashfield

Mrs F A Ashfield

DISCLOSURE IN THE STRATEGIC REPORT

Under Section 414(ii) of the Companies Act 2006, the following information is included within the Strategic Report:

(a) a review of the business including developments in the year, performance and current position;

(b) a summary of the principal risks and uncertainties affecting the position of the group; and

(c) information relating to the KPIs of the group.

DIRECTORS' RESPONSIBILITIES STATEMENT

The directors are responsible for preparing the Group Strategic Report, the Directors' Report 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, Knights Lowe Limited, are deemed to be reappointed under section 487(2) of the Companies Act 2006.

ON BEHALF OF THE BOARD:

J P Ashfield - Director

26 September 2025

Opinion

We have audited the financial statements of BaseTek (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 Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, 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 Directors' Report, but does not include the financial statements and our Auditors' Report 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Directors' Report 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 Directors' Report.

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 Directors' Responsibilities Statement 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 an Auditors' Report 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:

We gained an understanding of the legal and regulatory framework applicable to the group and the industry in which it operates. Through discussions with the directors we identified laws, regulations and certifications that could reasonably be expected to have a material effect on the financial statements. The details of these discussions were shared with the audit team and considerations given as to where and how fraud may occur in the group.

The laws, regulations and certifications considered as being significant to the group included UK company law and financial reporting standards, Incoterms 2020, ISO 9001 certification, ISO 14001 certification and Cyber Essentials Plus certification.

We undertook audit procedures in response to the potential risks relating to irregularities which includes risks of fraud and non-compliance with laws and regulations. These procedures comprised of enquiry with management concerning any actual or potential claims or litigation, review and testing of journal and other entries to the nominal ledger both in the audited year and after the statement of financial position date, review of post year end transactions to identify any legal proceedings after the statement of financial position date, along with undertaking analytical procedures to assist in identifying any unexpected amounts and variances within the financial statements that may be an indication of fraud.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements. There are however 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. There is therefore an unavoidable risk that material misstatements may not be detected, even though the audit has been undertaken in accordance with the applicable standards.

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 Auditors' Report.

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 an Auditors' Report 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.

Michael Mortimer FCA FCCA (Senior Statutory Auditor)

for and on behalf of Knights Lowe Limited

Eldo House

Kempson Way

Suffolk Business Park

Bury St Edmunds

Suffolk

IP32 7AR

26 September 2025

TURNOVER

4

39,867,526

41,412,830

Cost of sales

34,016,598

35,815,892

GROSS PROFIT

5,850,928

5,596,938

Distribution costs

232,171

274,658

Administrative expenses

2,333,638

2,528,427

2,565,809

2,803,085

GROUP OPERATING PROFIT

7

3,285,119

2,793,853

Share of operating loss in

Associates

-

(27,491

)

Interest receivable and similar income

145,103

1,551

Interest payable and similar expenses

8

(97,564

)

(100,745

)

PROFIT BEFORE TAXATION

3,332,658

2,667,168

Tax on profit

9

834,185

666,678

PROFIT FOR THE FINANCIAL YEAR

2,498,473

2,000,490

OTHER COMPREHENSIVE INCOME

Foreign currency retranslation

-

(5,599

)

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

-

(5,599

)

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

2,498,473

1,994,891

Profit attributable to:

Owners of the parent

2,498,473

2,000,490

Total comprehensive income attributable to:

Owners of the parent

2,498,473

1,994,891

FIXED ASSETS

Tangible assets

12

5,257,539

5,301,620

Investments

13

-

-

5,257,539

5,301,620

CURRENT ASSETS

Stocks

14

4,920,159

4,827,523

Debtors

15

6,301,717

6,742,827

Cash at bank and in hand

5,024,245

5,304,675

16,246,121

16,875,025

CREDITORS

Amounts falling due within one year

16

6,362,544

8,467,072

NET CURRENT ASSETS

9,883,577

8,407,953

TOTAL ASSETS LESS CURRENT LIABILITIES

15,141,116

13,709,573

PROVISIONS FOR LIABILITIES

17

362,622

343,926

NET ASSETS

14,778,494

13,365,647

CAPITAL AND RESERVES

Called up share capital

18

2,000

2,000

Other reserves

19

(970

)

(970

)

Retained earnings

19

14,777,464

13,364,617

14,778,494

13,365,647

The financial statements were approved by the Board of Directors and authorised for issue on 26 September 2025 and were signed on its behalf by:

J P Ashfield - Director

FIXED ASSETS

Tangible assets

12

-

-

Investments

13

1,280

1,280

1,280

1,280

CURRENT ASSETS

Debtors

15

2,952

-

Cash at bank

-

2,673

2,952

2,673

CREDITORS

Amounts falling due within one year

16

2,185

1,906

NET CURRENT ASSETS

767

767

TOTAL ASSETS LESS CURRENT LIABILITIES

2,047

2,047

CAPITAL AND RESERVES

Called up share capital

18

2,000

2,000

Retained earnings

19

47

47

2,047

2,047

Company's profit for the financial year

1,085,626

242,500

The financial statements were approved by the Board of Directors and authorised for issue on 26 September 2025 and were signed on its behalf by:

J P Ashfield - Director

Called up

share

Retained

Other

Total

capital

earnings

reserves

equity

£

£

£

£

Balance at 1 January 2023

2,000

11,612,226

(970

)

11,613,256

Changes in equity

Profit for the year

-

2,000,490

-

2,000,490

Other comprehensive income

-

(5,599

)

-

(5,599

)

Total comprehensive income

-

1,994,891

-

1,994,891

Dividends

-

(242,500

)

-

(242,500

)

Balance at 31 December 2023

2,000

13,364,617

(970

)

13,365,647

Changes in equity

Profit for the year

-

2,498,473

-

2,498,473

Total comprehensive income

-

2,498,473

-

2,498,473

Dividends

-

(1,085,626

)

-

(1,085,626

)

Balance at 31 December 2024

2,000

14,777,464

(970

)

14,778,494

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

2,000

47

2,047

Changes in equity

Dividends

-

(242,500

)

(242,500

)

Total comprehensive income

-

242,500

242,500

Balance at 31 December 2023

2,000

47

2,047

Changes in equity

Dividends

-

(1,085,626

)

(1,085,626

)

Total comprehensive income

-

1,085,626

1,085,626

Balance at 31 December 2024

2,000

47

2,047

Cash flows from operating activities

Cash generated from operations

1

2,000,207

4,123,734

Interest paid

(97,564

)

(100,745

)

Tax paid

(980,525

)

(887,698

)

Net cash from operating activities

922,118

3,135,291

Cash flows from investing activities

Purchase of tangible fixed assets

(65,538

)

(43,874

)

Sale of tangible fixed assets

27,299

-

Interest received

145,103

1,551

Net cash from investing activities

106,864

(42,323

)

Cash flows from financing activities

Other loans

-

(13,018

)

Movement in directors loan account

(223,786

)

(1,192,391

)

Equity dividends paid

(1,085,626

)

(242,500

)

Net cash from financing activities

(1,309,412

)

(1,447,909

)

(Decrease)/increase in cash and cash equivalents

(280,430

)

1,645,059

Cash and cash equivalents at beginning of year

2

5,304,675

3,659,616

Cash and cash equivalents at end of year

2

5,024,245

5,304,675

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

2024

2023

£

£

Profit for the financial year

2,498,473

2,000,490

Depreciation charges

77,558

88,693

Loss on disposal of fixed assets

4,763

-

Share of loss of associate

-

27,491

Impairment relating to associate

-

111,273

Finance costs

97,564

100,745

Finance income

(145,103

)

(1,551

)

Taxation

834,185

666,678

3,367,440

2,993,819

Increase in stocks

(92,636

)

(1,203,037

)

Decrease/(increase) in trade and other debtors

441,109

(1,202,770

)

(Decrease)/increase in trade and other creditors

(1,715,706

)

3,535,722

Cash generated from operations

2,000,207

4,123,734

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

5,024,245

5,304,675

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

5,304,675

3,659,616

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank and in hand

5,304,675

(280,430

)

5,024,245

5,304,675

(280,430

)

5,024,245

Total

5,304,675

(280,430

)

5,024,245

1.	STATUTORY INFORMATION

BaseTek (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 presentation currency of the financial statements is the Pound Sterling (£).

2.	STATEMENT OF COMPLIANCE

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.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

Basis of consolidation

The financial statements consolidate the financial statements of the company and all group undertakings. These are adjusted, where appropriate, to conform to group accounting policies.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Judgements and key sources of estimation uncertainty.

Preparation of the financial statements requires management to make significant judgements and estimates. These estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectation of future events that are believed to be reasonable under the circumstances. The items in the financial statements where these judgements and estimates have been made include:

(a) Impairment of investments

The group reviews all investments for indication of impairment. It is considered that the investment in Dubai Marine and Charter S.A. has been impaired in full and therefore written down to nil. The details are disclosed in note 13.

(b) Recoverability of debtor balances

The group makes an estimate of the recoverable value of trade and other debtors. This estimate is based on a number of factors including the ageing profile of the debtors and historical experience. When necessary, a provision is made to reduce the net carrying value.

(c) Provisions

Due to the nature of provisions, a significant part of their determination is based upon estimates and/or judgements concerning the future. A provision has previously been recognised to the extent that the losses of the associate (Dubai Marine and Charter S.A.) are in excess of the investment value.

(d) Useful economic lives of tangible assets

The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered, stated net of discounts and of Value Added Tax.

Turnover is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Transfers of risks and rewards vary depending on the nature of the products sold and the individual terms of the contract of sale. Sales made under internationally accepted trade terms, Incoterms 2020, are recognised as revenue when the group has completed the primary duties required to transfer risks as defined by the International Chamber of Commerce Official Rules for the Interpretation of Trade Terms. Sales made outside Incoterms 2020 are generally recognised on delivery to the customer.

Tangible fixed assets

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

Freehold property

-

4% on cost and 2% on cost

Plant and machinery

-

25% on cost

Office furniture

-

25% on cost

Motor vehicles

-

25% on cost

Computer equipment

-

33% on cost

Freehold land is not depreciated.

Investments in associates

Investments in associates are recognised initially in the Consolidated Statement of Financial Position at the transaction price and subsequently adjusted to reflect the group's share of total comprehensive income and equity of the associate, less any impairment.

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the group has incurred legal or constructive obligations or has made payments on behalf of the associate.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs included in bringing the stock to its present location and condition.

Financial instruments

A financial asset or a financial liability is recognised only when the group becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the transaction price. Unless repayable on demand, a financing transaction is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Debt instruments are subsequently measured at amortised cost.

Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in the Statement of Comprehensive Income. All other such investments are subsequently measured at cost less impairment.

Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Other financial instruments are subsequently measured at fair value, with any changes recognised in the Statement of Comprehensive Income, with the exception of hedging instruments in a designated hedging relationship.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in the Statement of Comprehensive Income immediately.

For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics.

Any reversals of impairment are recognised in the Statement of Comprehensive Income immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised on taxable profit for the current and past periods. Current tax is recognised as the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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.

Foreign currencies

The financial statements are prepared in sterling (£), which is the functional currency of the entity.

Foreign currency translations are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period end rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Comprehensive Income except when deferred in other comprehensive income as qualifying cash flow hedges ruling at the date of transaction.

Pension costs and other post-retirement benefits

The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to the Statement of Comprehensive Income in the period to which they relate.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the Statement of Financial Position and the amount of the provision as an expense.

Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in the Statement of Comprehensive Income unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in the Statement of Comprehensive Income in the period it arises.