REGISTERED NUMBER: 00745573 (England and Wales)

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements for the Year Ended 31 December 2024

for

Frank Armitt & Son Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditor

6

Consolidated Statement of Comprehensive Income

10

Consolidated Balance Sheet

11

Company Balance Sheet

12

Consolidated Statement of Changes in Equity

13

Company Statement of Changes in Equity

14

Consolidated Cash Flow Statement

15

Notes to the Consolidated Cash Flow Statement

16

Notes to the Consolidated Financial Statements

17

DIRECTORS:

Mrs P Seedhouse

A Seedhouse

C Gray

P Holden

A S Kristiansen

SECRETARY:

A Seedhouse

REGISTERED OFFICE:

26-30 South Road

Weston Point

Runcorn

WA7 4EZ

REGISTERED NUMBER:

00745573 (England and Wales)

AUDITOR:

DJH Audit Limited

Pacific Chambers

11-13 Victoria Street

Liverpool

L25QQ

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

REVIEW OF BUSINESS

The principal activity of the Group continues to be that of warehousing and logistics, supply chain management and being a key provider of marine fuels, ships agency and stevedoring services.

2024 has been a satisfactory year for the Group overall despite multiple challenges across the markets and within the general economic climate. During the year the business was able to secure a number of new opportunities whilst protecting market share and is well placed to build for the coming year.

The economic environment in the UK and beyond has continued to create uncertainties throughout the year with some instability and reduced confidence impacting on divisional activities, but also on business in general. Inflation has remained stubborn with interest rates falling more slowly than previously anticipated. Energy prices have remained high and climate change has continued to be a feature for businesses to consider.

During the year our Marine Fuels division increased volumes although average prices year on year fell with global events continuing to impact market conditions and credit risk. The continued war between Russia and Ukraine and the serious conflicts in Gaza, have continued to ensure only a fragile economic recovery since the pandemic and kept pressure on margins throughout the year.

Following numerous challenges in previous years, our Automotive division had a very strong year with a significant volume increase, driven by some market recovery but mostly through key customer's increased focus into the production of electric vehicles. Whilst volumes and revenue have increased, there still remains uncertainty around the governments "green targets" and overall investment into electric vehicle infrastructure which has not kept pace with market expectations. This has meant some car manufacturers reviewing their electric fleet offerings versus traditional technologies and exploring their strategic intent for the longer term.

The Group achieved success in other areas with our Customs Team growing revenues and our Projects Team achieving another strong performance. In addition, it is pleasing to report that the general steel business had a good year with volumes increasing over last year and some new customers being serviced.

Whilst overall Group turnover fell in the year, (mostly due to the lower average market prices of marine fuels), the company achieved gross profits of £2.5 million, a strong cash position and has continued to invest in new equipment and systems, with a further £279,000 of capital expenditure being made during the year.

2024 Highlights:

Turnover: £54.5 million

Gross Profits: £2.5 million

Volumes managed: 220,000 tonnes

Closing cash: £4.2 million

Zero debt in the business

PRINCIPAL RISKS AND UNCERTAINTIES

The board of directors are responsible for the identification of business risk and for developing plans to mitigate such risk, so to reduce it's impact on the Company and on the Group. The business has continued to take appropriate action to ensure effective cost management across the Group wherever possible, has further strengthened service offering securing new business and improved liquidity, whilst keeping net debt at zero.

The senior management team are also aware of the ongoing likelihood of fluctuations within the currency markets and continue to adopt a policy of hedging against such exchange rate risks, therefore ensuring that any exposure from currency movements is kept at a very low level. This approach continues to be successful with risks significantly reduced and positive currency gains again being achieved during the year.

Credit risk across markets has continued to feature and the prudent management of working capital and strong liquidity has helped support good commercial decisions, whilst protecting our key stakeholders, customers and suppliers.

ESG AND SUSTAINABILITY

Closely linked with risk is a company's ability to achieve sustainability beyond the short term and to this end the board of director's remain fully committed to environmental care and sustainability. The business has already taken steps to contribute towards protecting the environment with the move to electric vehicles, a focus on energy use and the recycling of waste. Positive dialogue with key clients in exploring new green initiatives will further benefit the Group's target to reduce carbon. In addition, the Group continues to invest in employee welfare, Health & Safety, employee engagement and training and follows government guidance, best practice and regulations in corporate governance.

ON BEHALF OF THE BOARD:

Mrs P Seedhouse - Director

29 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 31st December 2024 will be £440,000 (2023 - £265,000).

DIRECTORS

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

Mrs P Seedhouse

A Seedhouse

C Gray

P Holden

A S Kristiansen

MATTERS COVERED IN THE STRATEGIC REPORT

Business review and future developments, principal risks and key performance indicators are included in the Strategic Report.

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 auditor is 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 auditor is aware of that information.

AUDITOR

The auditor, DJH Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mrs P Seedhouse - Director

29 September 2025

Opinion

I have audited the financial statements of Frank Armitt & Son 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 my 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

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

Conclusions relating to going concern

In auditing the financial statements, I 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 I have performed, I 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.

My 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 my Report of the Auditor thereon.

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

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

Opinions on other matters prescribed by the Companies Act 2006

In my 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 I am 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, I have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

I have nothing to report in respect of the following matters where the Companies Act 2006 requires me to report to you if, in my opinion:

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

-	I have not received all the information and explanations I require for my audit.

Responsibilities of directors

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

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

Auditor's responsibilities for the audit of the financial statements

My 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 Auditor that includes my 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the company and the industry in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to the acts by the company, which were contrary to applicable laws and regulations including fraud, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principle risks were related to inflated revenue and profit.

Audit procedures performed included:

- review of the financial statement disclosures to underlying supporting documentation.

- review of any correspondence with legal advisors, and enquiries of management and those charged with governance around actual and potential litigation and claims

- enquiries with company's staff to identify any instances with non-compliance with laws and regulations

- enquiries of management and review of monthly management accounts and reports in so far as they related to the financial statements

- testing of journals and evaluating, whether there was evidence of bias by the Directors that represented a risk of material misstatement due to fraud, and evaluating the business rationale of significant transactions outside the normal course of business

- undertaking detailed substantive testing of material items and a sample of other items

- consideration of the reasonableness of the figures and analytical review, including comparison with previous years and expected trends

- review of the compliance with and effectiveness of internal controls

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of my 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 my Report of the Auditor.

Use of my 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. My audit work has been undertaken so that I might state to the company's members those matters I am required to state to them in a Report of the Auditor and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the company and the company's members as a body, for my audit work, for this report, or for the opinions I have formed.

Timothy Cherry FCCA (Senior Statutory Auditor)

for and on behalf of DJH Audit Limited

Pacific Chambers

11-13 Victoria Street

Liverpool

L25QQ

29 September 2025

TURNOVER

3

54,531,863

60,524,871

Cost of sales

52,002,187

56,979,766

GROSS PROFIT

2,529,676

3,545,105

Administrative expenses

2,577,528

2,841,838

(47,852

)

703,267

Other operating income

-

13,775

OPERATING (LOSS)/PROFIT

5

(47,852

)

717,042

Interest receivable and similar income

157,899

81,794

110,047

798,836

Interest payable and similar expenses

6

-

(679

)

PROFIT BEFORE TAXATION

110,047

799,515

Tax on profit

7

62,677

270,919

PROFIT FOR THE FINANCIAL YEAR

47,370

528,596

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

47,370

528,596

Profit attributable to:

Owners of the parent

47,370

528,596

Total comprehensive income attributable to:

Owners of the parent

47,370

528,596

FIXED ASSETS

Tangible assets

10

1,172,033

992,601

Investments

11

-

-

1,172,033

992,601

CURRENT ASSETS

Debtors

12

4,021,933

2,945,276

Cash at bank

4,202,262

5,003,478

8,224,195

7,948,754

CREDITORS

Amounts falling due within one year

13

5,189,873

4,405,047

NET CURRENT ASSETS

3,034,322

3,543,707

TOTAL ASSETS LESS CURRENT LIABILITIES

4,206,355

4,536,308

PROVISIONS FOR LIABILITIES

16

212,084

149,407

NET ASSETS

3,994,271

4,386,901

CAPITAL AND RESERVES

Called up share capital

17

5,000

5,000

Revaluation reserve

18

473,040

473,040

Other reserves

18

8,377

8,377

Retained earnings

18

3,507,854

3,900,484

SHAREHOLDERS' FUNDS

3,994,271

4,386,901

The financial statements were approved by the Board of Directors and authorised for issue on 29 September 2025 and were signed on its behalf by:

Mrs P Seedhouse - Director

FIXED ASSETS

Tangible assets

10

1,172,033

992,602

Investments

11

126,100

126,100

1,298,133

1,118,702

CURRENT ASSETS

Debtors

12

4,017,231

2,945,276

Cash at bank

4,197,567

4,996,406

8,214,798

7,941,682

CREDITORS

Amounts falling due within one year

13

5,195,378

4,412,878

NET CURRENT ASSETS

3,019,420

3,528,804

TOTAL ASSETS LESS CURRENT LIABILITIES

4,317,553

4,647,506

CREDITORS

Amounts falling due after more than one year

14

(95

)

(95

)

PROVISIONS FOR LIABILITIES

16

(212,084

)

(149,407

)

NET ASSETS

4,105,374

4,498,004

CAPITAL AND RESERVES

Called up share capital

17

5,000

5,000

Revaluation reserve

18

473,040

473,040

Retained earnings

18

3,627,334

4,019,964

SHAREHOLDERS' FUNDS

4,105,374

4,498,004

Company's profit for the financial year

47,370

2,502,470

The financial statements were approved by the Board of Directors and authorised for issue on 29 September 2025 and were signed on its behalf by:

Mrs P Seedhouse - Director

Called up

share

Retained

Revaluation

Other

Total

capital

earnings

reserve

reserves

equity

£

£

£

£

£

Balance at 1 January 2023

5,000

3,636,888

473,040

8,377

4,123,305

Changes in equity

Dividends

-

(265,000

)

-

-

(265,000

)

Total comprehensive income

-

528,596

-

-

528,596

Balance at 31 December 2023

5,000

3,900,484

473,040

8,377

4,386,901

Changes in equity

Dividends

-

(440,000

)

-

-

(440,000

)

Total comprehensive income

-

47,370

-

-

47,370

Balance at 31 December 2024

5,000

3,507,854

473,040

8,377

3,994,271

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2023

5,000

1,782,494

473,040

2,260,534

Changes in equity

Dividends

-

(265,000

)

-

(265,000

)

Total comprehensive income

-

2,502,470

-

2,502,470

Balance at 31 December 2023

5,000

4,019,964

473,040

4,498,004

Changes in equity

Dividends

-

(440,000

)

-

(440,000

)

Total comprehensive income

-

47,370

-

47,370

Balance at 31 December 2024

5,000

3,627,334

473,040

4,105,374

Cash flows from operating activities

Cash generated from operations

1

32,385

359,363

Interest paid

-

679

Tax paid

(272,751

)

(76,852

)

Net cash from operating activities

(240,366

)

283,190

Cash flows from investing activities

Purchase of tangible fixed assets

(278,749

)

(157,260

)

Sale of tangible fixed assets

-

187,934

Interest received

157,899

81,794

Net cash from investing activities

(120,850

)

112,468

Cash flows from financing activities

Capital repayments in year

-

(12,965

)

Equity dividends paid

(440,000

)

(265,000

)

Net cash from financing activities

(440,000

)

(277,965

)

(Decrease)/increase in cash and cash equivalents

(801,216

)

117,693

Cash and cash equivalents at beginning of year

2

5,003,478

4,885,785

Cash and cash equivalents at end of year

2

4,202,262

5,003,478

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

31.12.24

31.12.23

£

£

Profit for the financial year

47,370

528,596

Depreciation charges

99,382

91,114

Loss on disposal of fixed assets

-

110,040

Finance costs

-

(679

)

Finance income

(157,899

)

(81,794

)

Taxation

62,677

270,919

51,530

918,196

(Increase)/decrease in trade and other debtors

(1,071,955

)

447,222

Increase/(decrease) in trade and other creditors

1,052,810

(1,006,055

)

Cash generated from operations

32,385

359,363

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

4,202,262

5,003,478

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

5,003,478

4,885,785

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank

5,003,478

(801,216

)

4,202,262

5,003,478

(801,216

)

4,202,262

Total

5,003,478

(801,216

)

4,202,262

1.	STATUTORY INFORMATION

Frank Armitt & Son 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 as modified by the revaluation of certain assets.

Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Frank Armitt & Son Limited together with all the entities controlled by the parent company (its subsidiaries) and the group's share of its interests in joint ventures and associates where applicable.

All financial statements are made up to 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used in into line with those used by other members of the group.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiares are consolidated in the group's financial statements from the date that control commences until the date that control ceases.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, as treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group's share of the net assists of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

If the group's share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group's interest in the entity.

Critical accounting judgements and key sources of estimation uncertainty

Preparation of the financial statements requires management to make significant judgements and estimates. The areas in the financial statements where these judgements and estimates have been made include:

- Useful economic life of tangible fixed assets.

- Estimate of provisions.

Turnover

Turnover is represented by the fair value of consideration received or receivable, net of credits or any applicable discounts and excluding value added tax. Turnover can be measured accurately and reliably from the services provided by the Group and is recognised once the service has been provided or the goods supplied and once it is certain that the Group will receive the consideration under the transaction.

Turnover is generated from the Group's activities performed during the financial year in the following categories:-

- Agency and vessel management services.

- Marine fuels and supplies.

- Vessel discharge & cargo handling.

- Logistics and supply chain management

- Warehousing, storage and distribution

Tangible fixed assets

Tangible fixed assets are measured at cost less depreciation. Cost is recognised at the consideration given to acquire the asset. Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter:

Freehold property

-

1% on cost

Leasehold property

-

Remainder of lease period

Plant and machinery

-

25% on cost, and 20% on cost

Fixtures and fittings

-

25% on cost

Motor vehicles

-

25% on cost

Financial instruments

The company has elected to apply the provisions of Section 11 "Basic Financial instruments" and Section 12 "Other Financial Issues" of FRS 102 to all of it's financial instruments. Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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.

Recognition of financial assets

Basic financial assets, including trade and other receivables, cash and bank balances and investments in commercial paper, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest method.

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Fixed asset investments

Fixed asset investments are stated at cost less amounts written off.

Debtors

Short term debtors are measured at transaction price, less any impairment.

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Foreign currency translation

The company's functional and presentational currency is sterling (£).

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the date of the transactions.

At each period end foreign currency monetary items are translated using the closing rate.

3.

TURNOVER

The turnover and profit before taxation is attributable to the principal activities of the company and of the group. The directors are of the opinion that approximately one half of the group revenue arises from trade with customers situated outside of the United Kingdom but regret that an accurate analysis of income in this way would be impractical in the circumstances. In view of the way in which all main group activities are inter-related an analysis of turnover and profit by operating or geographical division would be of assistance to the group's competitors.