REGISTERED NUMBER: NI657214 (Northern Ireland)

TIERCO GROUP LIMITED

Group Strategic Report, Directors' Report and

Consolidated Financial Statements for the Year Ended 31 December 2024

Page

Company Information

1

Group Strategic Report

2

Directors' Report

4

Independent Auditors' Report

6

Consolidated Income Statement

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:

Ryan Tierney

Jonathan Tierney

Martin Tierney

REGISTERED OFFICE:

131 Carnamuff Road, Ballykelly,

Limavady,

BT49 9JG

REGISTERED NUMBER:

NI657214 (Northern Ireland)

INDEPENDENT AUDITORS:

Cooper Parry Audit (Ireland) Limited

Statutory Auditor

36-38 Northland Row

Dungannon

Co. Tyrone

BT71 6AP

BANKERS:

Danske Bank

North Business Centre

1-2 Broadway

Ballymena

Co. Antrim

BT43 7AA

SOLICITORS:

Caldwell & Robinson Solicitors

10-12 Artillery Street

Derry

BT48 6RG

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

REVIEW OF BUSINESS

The group continues to deliver a strong trading performance in respect of the year ended 31 December 2024 and the business remains in a sound financial position at the year end. The group returned a profit for the financial year of £1,977,302 (2023: £1,624,852). The directors are satisfied with the group performance for the year.

The directors consider the key performance indicators are those that communicate the financial performance and strengths as a whole, being revenue, gross profit margin and net profit before taxation.

The directors have provided an analysis of the key performance indicators of the business below. The directors continue to monitor revenue and costs to ensure the group remains profitable. The group continues to maintain a strong net asset position.

The group's key financial performance indicators during the year were as follows:

2024

2023

Turnover

£9,999,717

£9,586,366

Gross profit margin

53.83%

48.11%

Net profit/(loss) before tax

£2,023,765

£1,556,018

STRATEGY

The group's success is dependent on the ongoing management of business risks and uncertainties it faces. The directors intend to grow the business further as the group establishes a quality service in the market and through better management of costs and improved efficiencies within the business.

FUTURE DEVELOPMENTS

The directors are committed to long term creation of shareholder value by increasing its market share in the Northern Ireland market. The directors are confident that their strategy will result in continued growth and profitability.

PRINCIPLE RISKS AND UNCERTAINTIES

The management of the business and the execution of the group's strategy are subject to a number of risks. The directors consider the key business risks and uncertainties affecting the group relate to the current economic conditions and competition from others in the industry. These risks are addressed through strong customer service as well as investment in its resources and facilities

FINANCIAL RISK MANAGEMENT

The group's operations expose it to a variety of financial risks that include the effects of changes in price risk, foreign exchange risk and credit risk. The group has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the company by monitoring levels of debt finance and the related finance costs.

Given the size of the group, the directors have not delegated the responsibility of monitoring financial risk management to a sub committee of the board. The policies set by the board of directors are implemented by the company's finance department.

Price risk

The group is exposed to commodity price risk as a result of its operations. However, given the size of the group's operations, the costs of managing exposure to commodity price risk exceed any potential benefits. The directors will revisit the appropriateness of this policy should the group's operations change in size or nature. The group has no exposure to equity securities price risk as it holds no listed or other equity investments.

Foreign exchange risk

While the greater part of the group's revenues and expenses are denominated in sterling, the group is exposed to some foreign exchange risk in the normal course of the business both on sales and purchases. While the group has not used financial instruments to date to hedge foreign exchange exposure, this position is kept constantly under review.

Credit risk

Policies and procedures exist to ensure that customers have an appropriate credit history, and all trade customers are allocated a credit limit which is regularly monitored.

ENVIRONMENT

The group and company recognise their corporate responsibility to carry out their operations whilst minimising the environmental impacts. The directors' continued aim is to comply with all applicable environmental legislation, prevent pollution and reduce waste wherever possible.

HEALTH AND SAFETY

The group and company are committed to achieving the highest practicable standards in health and safety management and strive to make all sites and offices safe environments for employees and customers alike. Additional procedures and measures have been taken during the ongoing COVID-19 pandemic, in line with government and health advice, with the health and wellbeing of our people, our clients and our communities being of focus.

HUMAN RESOURCES/EMPLOYEES

The most important resource of the group and company are the people employed: their knowledge and experience is crucial to meeting customer requirements. In this current economic climate, it is vitally important that the retention of key staff is achieved. The group and company continue to invest in employment training and development and have introduced appropriate incentive and career progression arrangements.

ON BEHALF OF THE BOARD:

Martin Tierney - Director

12 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 principle activity of the company is acting as a holding company. The activities of the group include the manufacture of clinical therapeutic chairs, medical grade face masks and investment properties.

DIVIDENDS

Interim dividends totalling £303,000 (2023: £871,500) were paid out during the year. The directors have not proposed a final dividend (2023: £Nil).

RESEARCH AND DEVELOPMENT

The group is currently undertaking research and development projects covering new products and process improvement.

DIRECTORS

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

Ryan Tierney

Jonathan Tierney

Martin Tierney

CHARITABLE DONATIONS AND EXPENDITURE

The group did not make any charitable or political donations made during the year (2023: £Nil).

DISCLOSURE IN THE STRATEGIC REPORT

Under Schedule 7.1A of "Large and Medium-Sized Companies and Groups (Accounts and Reports)

Regulations 2008" the company has elected to disclose the following directors report information in the

strategic report:

- Financial performance indicators;

- Principal risks and uncertainties;

- Principal activity and business review; and

- Future developments

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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The audit business of CavanaghKelly was acquired by Cooper Parry Audit (Ireland) Limited on 24th July 2025. CavanaghKelly has resigned as auditor and Cooper Parry Audit (Ireland) Limited has been appointed in its place.

The auditors, Cooper Parry Audit (Ireland) Limited, have indicated their willingness to continue in office in accordance with the provision of Section 485 of the Companies Act 2006.

ON BEHALF OF THE BOARD:

Martin Tierney - Director

12 September 2025

Opinion

We have audited the financial statements of Tierco Group Limited (the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2024 which comprise the Consolidated Income Statement, 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:

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. The objectives of our audit in respect of fraud are to assess the risk of material misstatement due to fraud, design and implement appropriate responses to those assessed risks and to respond appropriately to instances of fraud or suspected fraud identified during the course of our audit. However, the primary responsibility for the prevention and detection of fraud rests with management and those charged with governance of the company.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

-

We obtained understanding of the legal and regulatory requirements applicable to the company’s financial statements and considered the most significant are the Companies Act 2006, Financial Reporting Standards (FRS102) and UK taxation legislation;

-

We have assessed the risk of material misstatement of the financial statements, including risk of material misstatement due to fraud and how it might occur by holding discussions with management and those charged with governance;

-

We enquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations;

-

Understanding the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations; and

-

Discussions amongst the audit engagement team regarding how fraud might occur in the financial statements and any potential indicators of fraud. As part of this discussion we identified the following potential areas where fraud may occur: timing of revenue recognition and management override.

The audit response to risks identified included:

-

Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the relevant laws and regulations above;

-

Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risk of material misstatement due to fraud;

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

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.

Mr Ryan Falls (F.C.A) (Senior Statutory Auditor)

for and on behalf of Cooper Parry Audit (Ireland) Limited

Statutory Auditor

36-38 Northland Row

Dungannon

Co. Tyrone

BT71 6AP

12 September 2025

TURNOVER

5

9,999,717

9,586,366

Cost of sales

(4,616,448

)

(4,926,327

)

GROSS PROFIT

5,383,269

4,660,039

Administrative expenses

(3,803,630

)

(3,315,791

)

1,579,639

1,344,248

Other operating income

164,768

181,999

OPERATING PROFIT

7

1,744,407

1,526,247

Income from shares in group undertakings

541

-

Income from other participating interests

100,650

-

Finance income

92,323

29,771

1,937,921

1,556,018

Gain/loss on revaluation of investment property

85,323

-

2,023,244

1,556,018

Finance costs

8

521

-

PROFIT BEFORE TAXATION

2,023,765

1,556,018

Tax on profit

9

(46,463

)

68,834

PROFIT FOR THE FINANCIAL YEAR

1,977,302

1,624,852

OTHER COMPREHENSIVE INCOME

Revaluation of fixed asset investment

Capital redemption reserve

(1,503,000

)

-

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

(1,503,000

)

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

474,302

1,624,852

Profit attributable to:

Owners of the parent

1,977,302

1,624,852

Total comprehensive income attributable to:

Owners of the parent

474,302

1,624,852

NON-CURRENT ASSETS

Intangible assets

12

365,069

6,120

Tangible assets

13

4,368,583

4,557,763

Investments

14

2,019,277

447,829

Investment property

15

7,178,436

7,215,613

13,931,365

12,227,325

CURRENT ASSETS

Stocks

16

442,935

450,623

Receivables: amounts falling due within one year

17

3,005,515

2,582,526

Cash at bank and in hand

4,240,909

4,542,457

7,689,359

7,575,606

PAYABLES

Amounts falling due within one year

18

(3,269,387

)

(1,952,154

)

NET CURRENT ASSETS

4,419,972

5,623,452

TOTAL ASSETS LESS CURRENT LIABILITIES

18,351,337

17,850,777

PAYABLES

Amounts falling due after more than one year

19

(37,500

)

-

PROVISIONS FOR LIABILITIES

21

(1,070,084

)

(778,326

)

NET ASSETS

17,243,753

17,072,451

CAPITAL AND RESERVES

Called up share capital

22

3

3

Revaluation reserve

202,672

202,672

Capital redemption reserve

(1,502,998

)

2

Retained earnings

18,544,076

16,869,774

SHAREHOLDERS' FUNDS

17,243,753

17,072,451

The financial statements were approved by the Board of Directors and authorised for issue on 12 September 2025 and were signed on its behalf by:

Martin Tierney - Director

NON-CURRENT ASSETS

Intangible assets

12

-

-

Tangible assets

13

-

3,750

Investments

14

498,991

184,581

Investment property

15

787,699

787,699

1,286,690

976,030

CURRENT ASSETS

Receivables: amounts falling due within one year

17

4,514,445

4,431,210

Cash at bank

3,037,187

3,555,071

7,551,632

7,986,281

PAYABLES

Amounts falling due within one year

18

(1,549,715

)

(866,448

)

NET CURRENT ASSETS

6,001,917

7,119,833

TOTAL ASSETS LESS CURRENT LIABILITIES

7,288,607

8,095,863

CAPITAL AND RESERVES

Called up share capital

22

3

3

Capital redemption reserve

(1,503,000

)

-

Retained earnings

8,791,604

8,095,860

SHAREHOLDERS' FUNDS

7,288,607

8,095,863

Company's profit for the financial year

998,744

2,961,468

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 12 September 2025 and were signed on its behalf by:

Martin Tierney - Director

Called up

Capital

share

Retained

Revaluation

redemption

Total

capital

earnings

reserve

reserve

equity

£

£

£

£

£

Balance at 1 January 2023

3

16,116,422

202,672

2

16,319,099

Changes in equity

Dividends

-

(871,500

)

-

-

(871,500

)

Total comprehensive income

-

1,624,852

-

-

1,624,852

Balance at 31 December 2023

3

16,869,774

202,672

2

17,072,451

Changes in equity

Dividends

-

(303,000

)

-

-

(303,000

)

Total comprehensive income

-

1,977,302

-

(1,503,000

)

474,302

Balance at 31 December 2024

3

18,544,076

202,672

(1,502,998

)

17,243,753

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2023

3

6,005,892

-

6,005,895

Changes in equity

Dividends

-

(871,500

)

-

(871,500

)

Total comprehensive income

-

2,961,468

-

2,961,468

Balance at 31 December 2023

3

8,095,860

-

8,095,863

Changes in equity

Dividends

-

(303,000

)

-

(303,000

)

Total comprehensive income

-

998,744

(1,503,000

)

(504,256

)

Balance at 31 December 2024

3

8,791,604

(1,503,000

)

7,288,607

Cash flows from operating activities

Cash generated from operations

1

3,016,043

2,701,397

Interest paid

521

-

Tax paid

4,243

(140,842

)

Net cash from operating activities

3,020,807

2,560,555

Cash flows from investing activities

Purchase of intangible fixed assets

(5,000

)

-

Purchase of tangible fixed assets

(265,836

)

(846,184

)

Purchase of fixed asset investments

(1,622,702

)

(279,163

)

Sale of tangible fixed assets

61,169

6,000

Sale of investment property

122,500

-

Interest received

193,514

29,771

Net cash from investing activities

(1,516,355

)

(1,089,576

)

Cash flows from financing activities

Share buyback

(1,503,000

)

-

Equity dividends paid

(303,000

)

(871,500

)

Net cash from financing activities

(1,806,000

)

(871,500

)

(Decrease)/increase in cash and cash equivalents

(301,548

)

599,479

Cash and cash equivalents at beginning of year

2

4,542,457

3,942,978

Cash and cash equivalents at end of year

2

4,240,909

4,542,457

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

2024

2023

£

£

Profit before taxation

2,023,765

1,556,018

Depreciation charges

446,078

465,763

Profit on disposal of fixed assets

(9,621

)

(5,720

)

Gain on revaluation of fixed assets

(85,323

)

-

Movement in warranty provision

116,183

213,966

Revaluation of listed investments

(81,253

)

(46,634

)

Amortisation of computer software

28,053

1,892

Impairment of investment

-

10,258

Profit from joint venture

(100,650

)

-

Finance costs

(521

)

-

Finance income

(193,514

)

(29,771

)

2,143,197

2,165,772

Decrease in stocks

7,688

154,972

(Increase)/decrease in trade and other debtors

(414,278

)

332,894

Increase in trade and other creditors

1,279,436

47,759

Cash generated from operations

3,016,043

2,701,397

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

4,240,909

4,542,457

Year ended 31 December 2023

31/12/23

1/1/23

£

£

Cash and cash equivalents

4,542,457

3,942,978

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

4,542,457

(301,548

)

4,240,909

4,542,457

(301,548

)

4,240,909

Total

4,542,457

(301,548

)

4,240,909

1.	STATUTORY INFORMATION

Tierco Group Limited is a private company, limited by shares , registered in Northern Ireland. The company's registered number and registered office address can be found on the General Information page.

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 on the going concern basis and in accordance with the historical cost convention modified when necessary to include the revaluation of certain fixed assets. Historical cost is generally based on the fair value of the consideration given in exchange for assets. The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the Group's financial statements.

The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the group and company accounting policies. These are documented in note 4 to the financial statements.

Basis of consolidation

The consolidated income statement, consolidated statement of changes in equity, consolidated balance sheet and consolidated statement of cash flows are the financial statements of the company and its subsidiary's undertakings made up to 31 December 2024. Inter-company transactions, balances and cash flows between group companies are eliminated on consolidation. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group.

Joint ventures are all entities over which the group has joint control with one or more other joint venture partners. Investments in associates are accounted for using the gross equity method of accounting. Under the gross equity method, the investment is initially recognised at cost, and the carrying amount is increased or decreased to recognise the investor's share of the profit of the investee after the date of acquisition.

The group's share of post-acquisition profit is recognised in the consolidated Income statement. When the group's share of losses in a joint venture equals or exceeds its interest in the associate, including any other unsecured receivables, the group recognises further losses and presents its share of the net liabilities of the joint venture in provisions for liabilities and charges.

Investments in Subsidiaries and Associates

Investments in subsidiary unlisted company shares are valued at cost less impairment.

Investments

Investments comprise investments in unquoted equity instruments which are measured at fair value. Changes in fair value are recognised in the income statement. Where fair value cannot be measured reliably, then the investment is carried at cost less impairment.