REGISTERED NUMBER: 01663282 (England and Wales)

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST DECEMBER 2024

FOR

WEST & COE LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Consolidated Income Statement

8

Consolidated Other Comprehensive Income

9

Consolidated Balance Sheet

10

Company Balance Sheet

11

Consolidated Statement of Changes in Equity

12

Company Statement of Changes in Equity

13

Consolidated Cash Flow Statement

14

Notes to the Consolidated Cash Flow Statement

15

Notes to the Consolidated Financial Statements

16

DIRECTORS:

J Gillanders

E J West

SECRETARY:

W Gillanders

REGISTERED OFFICE:

620 Rainham Road South,

Dagenham,

Essex

RM10 8YP

REGISTERED NUMBER:

01663282 (England and Wales)

AUDITORS:

Moore Kingston Smith LLP

Chartered Accountants & Statutory Auditor

Orbital House

20 Eastern Road

Romford

Essex

RM1 3PJ

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

REVIEW OF BUSINESS

The principal activity of the group throughout the year continued to be that of a funeral director.

The group's good name continues to stand well within local communities in the areas we operate. The

standard of service provided is as high as ever and the directors therefore feel that the group is well placed to maintain or increase its market share in the future. Certain locations have a changing demographic and during the year key trading locations experienced death rates significantly down on historical levels. The group also faces the challenge of direct cremations. As a result the group profits reduced, impacting other key performance measures. Notwithstanding the difficult trading environment, the group remained profitable, and has a very strong asset base with no external debt; with the majority of trading premises owned outright by related parties, and liquid funds available to take advantage of the right market opportunities should they arise.

PRINCIPAL RISKS AND UNCERTAINTIES

The key risks of the business are: effect of competition in the market, especially from larger organisations; difficult economic conditions leading to an increasing cost base and reducing customer budgets; and changing demographics and trends causing a reduction in the overall market.

The company holds significant investments in subsidiaries which are held at the lower of carrying value and recoverable amount. There is a risk that a deterioration in trading conditions may decrease the recoverable amount below the carrying value, which would result in the need to impair the balance.

The business takes action to mitigate these risks. The business continues to seek opportunities to expand the business, either organically or through acquisitions, thus improving market share.

The business continues to closely monitor and manage its cost base to ensure profitability is maintained and where possible improved.

The business is taking steps to improve its credit control to collect outstanding debt. The business is making the most of funeral planning schemes to encourage customers to set aside money to cover their funeral costs.

KEY PERFORMANCE INDICATORS

The group saw turnover increase slightly by £0.21m to £15.36m (2023: £15.15m) as a result.

The business saw a slight decrease in its gross profit margin at 34.6% (2023: 35.8%), reduced as general cost increases.

There was an increase in administrative expenses of £0.1m to £5.3m (2023: £5.2m). The group's operating profit margin showed a decrease of 1.2 percent to 0.7 % (2023: 1.9%).

FUTURE DEVELOPMENTS

The group maintains a healthy cash balance and overall balance sheet position,and currently generates cash in excess of its working capital requirements, therefore allowing continued dividend payments, capital investment and the prospect of further business development and acquisitions.

ON BEHALF OF THE BOARD:

E J West - Director

30th September 2025

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

DIVIDENDS

Interim dividends of £300 per Ordinary shares were paid during the year. The total distribution of dividends for the year ended 31st December 2024 will be £300,000.

DIRECTORS

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

J Gillanders

E J West

POLITICAL DONATIONS AND EXPENDITURE

The £9,085 in donations are not political in nature.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Moore Kingston Smith LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

E J West - Director

30th September 2025

Opinion

We have audited the financial statements of West & Coe Limited (the 'Parent Company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the Consolidated Income Statement, the Consolidated Other Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Changes in Equity, the Company Statement of Changes of Equity, the Consolidated Cashflow Statement and notes to the financial statements, including significant accounting policies. The financial 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:

" Gives a true and fair view of the state of the group's and the parent company's 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company 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 conducted 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 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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.

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 course of 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 our audit:

" the information given in the 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 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 their environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.

We have nothing to report in respect of the following matters in relation to which 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, 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 is 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 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 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 auditor's 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.

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

" Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

" Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the company's internal control.

" Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

" Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group's or the parent company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the group or the parent company to cease to continue as a going concern.

" Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

" Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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.

The objective of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.

Our approach was as follows:

" We obtained an understanding of the legal and regulatory requirements applicable to the company and considered that the most significant are the Companies Act 2006, UK financial reporting standards as issued by the Financial Reporting Council and UK taxation legislation.

" We obtained an understanding of how the company complies with these requirements by discussions with management and those charged with governance.

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

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

" Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.

These are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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 for no purpose other than to draw to the attention of the company's members those matters we are required to include in an auditor's report addressed to them. To the fullest extent permitted by law, we do not accept or assume responsibility to any party 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.

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

Paul Springfield (Senior Statutory Auditor)

for and on behalf of Moore Kingston Smith LLP

Chartered Accountants & Statutory Auditor

Orbital House

20 Eastern Road

Romford

Essex

RM1 3PJ

30th September 2025

REVENUE

15,362,862

15,149,594

Cost of sales

10,048,246

9,735,558

GROSS PROFIT

5,314,616

5,414,036

Administrative expenses

5,325,056

5,189,817

(10,440

)

224,219

Other operating income

114,147

67,641

OPERATING PROFIT

4

103,707

291,860

Interest receivable and similar income

5

72,263

71,652

175,970

363,512

Interest payable and similar expenses

6

55,845

9,663

PROFIT BEFORE TAXATION

120,125

353,849

Tax on profit

7

(64,899

)

493,903

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

185,024

(140,054

)

Profit/(loss) attributable to:

Owners of the parent

185,024

(140,054

)

PROFIT/(LOSS) FOR THE YEAR

185,024

(140,054

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

185,024

(140,054

)

Total comprehensive income attributable to:

Owners of the parent

185,024

(140,054

)

FIXED ASSETS

Intangible assets

12

2,347,076

2,804,032

Property, plant and equipment

13

4,874,359

5,200,797

Investments

14

-

-

Investment property

15

1,607,412

1,607,412

8,828,847

9,612,241

CURRENT ASSETS

Stocks

16

104,672

70,980

Debtors

17

1,590,271

2,161,431

Cash at bank and in hand

1,340,122

800,181

3,035,065

3,032,592

CREDITORS

Amounts falling due within one year

18

2,013,064

2,380,515

NET CURRENT ASSETS

1,022,001

652,077

TOTAL ASSETS LESS CURRENT LIABILITIES

9,850,848

10,264,318

CREDITORS

Amounts falling due after more than one year

19

(315,000

)

(315,000

)

PROVISIONS FOR LIABILITIES

22

(53,830

)

(352,324

)

NET ASSETS

9,482,018

9,596,994

CAPITAL AND RESERVES

Called up share capital

23

1,000

1,000

Revaluation reserve

24

80,643

80,643

Retained earnings

24

9,400,375

9,515,351

SHAREHOLDERS' FUNDS

9,482,018

9,596,994

The financial statements were approved by the Board of Directors and authorised for issue on 30th September 2025 and were signed on its behalf by:

E J West - Director

FIXED ASSETS

Intangible assets

12

1,122,992

1,464,630

Property, plant and equipment

13

4,819,340

5,141,389

Investments

14

3,273,044

3,199,749

Investment property

15

1,307,412

1,307,412

10,522,788

11,113,180

CURRENT ASSETS

Stocks

16

93,550

60,980

Debtors

17

1,544,226

1,977,666

Cash at bank and in hand

1,020,776

424,699

2,658,552

2,463,345

CREDITORS

Amounts falling due within one year

18

3,316,290

3,322,206

NET CURRENT LIABILITIES

(657,738

)

(858,861

)

TOTAL ASSETS LESS CURRENT LIABILITIES

9,865,050

10,254,319

CREDITORS

Amounts falling due after more than one year

19

(315,000

)

(315,000

)

PROVISIONS FOR LIABILITIES

22

(43,539

)

(342,033

)

NET ASSETS

9,506,511

9,597,286

CAPITAL AND RESERVES

Called up share capital

23

1,000

1,000

Revaluation reserve

80,643

80,643

Retained earnings

9,424,868

9,515,643

SHAREHOLDERS' FUNDS

9,506,511

9,597,286

Company's profit/(loss) for the financial year

209,225

(227,751

)

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 30th September 2025 and were signed on its behalf by:

E J West - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1st January 2023

1,000

9,955,405

80,643

10,037,048

Changes in equity

Dividends

-

(300,000

)

-

(300,000

)

Total comprehensive income

-

(140,054

)

-

(140,054

)

Balance at 31st December 2023

1,000

9,515,351

80,643

9,596,994

Changes in equity

Dividends

-

(300,000

)

-

(300,000

)

Total comprehensive income

-

185,024

-

185,024

Balance at 31st December 2024

1,000

9,400,375

80,643

9,482,018

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1st January 2023

1,000

10,043,394

80,643

10,125,037

Changes in equity

Dividends

-

(300,000

)

-

(300,000

)

Total comprehensive income

-

(227,751

)

-

(227,751

)

Balance at 31st December 2023

1,000

9,515,643

80,643

9,597,286

Changes in equity

Dividends

-

(300,000

)

-

(300,000

)

Total comprehensive income

-

209,225

-

209,225

Balance at 31st December 2024

1,000

9,424,868

80,643

9,506,511

Cash flows from operating activities

Cash generated from operations

1

1,327,348

1,852,927

Interest paid

(55,845

)

(9,663

)

Tax paid

(223,778

)

(327,976

)

Net cash from operating activities

1,047,725

1,515,288

Cash flows from investing activities

Purchase of intangible fixed assets

(73,295

)

-

Purchase of tangible fixed assets

(140,457

)

(326,522

)

Purchase of investment property

-

(1,007,412

)

Sale of tangible fixed assets

7,000

300

Interest received

72,263

71,652

Net cash from investing activities

(134,489

)

(1,261,982

)

Cash flows from financing activities

Amount introduced by directors

(73,295

)

-

Equity dividends paid

(300,000

)

(275,701

)

Net cash from financing activities

(373,295

)

(275,701

)

Increase/(decrease) in cash and cash equivalents

539,941

(22,395

)

Cash and cash equivalents at beginning of year

2

800,181

822,576

Cash and cash equivalents at end of year

2

1,340,122

800,181

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

2024

2023

£

£

Profit before taxation

120,125

353,849

Depreciation charges

997,144

1,117,396

Profit on disposal of fixed assets

(7,000

)

(300

)

Deferred tax adjustment

(859

)

-

Finance costs

55,845

9,663

Finance income

(72,263

)

(71,652

)

1,092,992

1,408,956

(Increase)/decrease in stocks

(33,692

)

25,805

Decrease/(increase) in trade and other debtors

571,160

(84,018

)

(Decrease)/increase in trade and other creditors

(303,112

)

502,184

Cash generated from operations

1,327,348

1,852,927

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 31st December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

1,340,122

800,181

Year ended 31st December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

800,181

822,576

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

800,181

539,941

1,340,122

800,181

539,941

1,340,122

Total

800,181

539,941

1,340,122

1.	STATUTORY INFORMATION

West & Coe 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 the 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. The historical cost convention can be modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value.

The consolidated financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these consolidated financial statements are rounded to the nearest £.

Basis of consolidation

The group consolidated financial statements include the financial statements of the Company and its subsidiaries, A. G. Butler & Son Limited, James Hawes (Manor Park and Romford) Limited, CWH Funerals Limited and H.L.Hawes & Son Limited, drawn up to 31 December 2024. All financial statements are made up to 31 December 2024. As permitted by section 408 of the Companies Act 2006, the Company has not presented its own statement of total comprehensive income and related notes. The Company’s total comprehensive income for the year was £209,225 (2023:( £227,751)).

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are 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 assets 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.

Significant judgements and estimates

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Estimation of fair value of investment property

In the absence of current prices in an active market for similar properties, the Group considers information from a variety of sources, including:

a. current prices in an active market for properties of a different nature, condition or location, adjusted to reflect those differences;

b. recent prices of similar properties on less active markets, with adjustments to reflect any changes in economic conditions since the date of the transactions that occurred at those prices;

and

c. discounted cash flow projections based on reliable estimates of future cash flows, supported by the terms of any existing lease and other contracts and (when possible) by external evidence such as current market rents for similar properties in the same location and condition, and using discount rates that reflect current market assessments of the uncertainty in the amount and timing of the cash flows.

Further details, including the carrying values and key assumptions used for the fair value measurement, are given in note 15 to the consolidated financial statements.

Useful economic lives of intangible fixed assets

The annual amortisation charge for intangible fixed assets is sensitive to changes in the estimated lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. Goodwill impairment reviews are also performed annually. These reviews require an estimation of the value in use of the cash generating units to which goodwill has been allocated. The value in use calculation requires the entity to estimate the future cash flows expected to arise for the cash generating unit and a suitable discount rate to calculate present value. See note 12 for the carrying amount of the intangible fixed assets and notes 2 for the useful economic lives for each class of asset.

Useful economic lives of tangible fixed 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 reassessed 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. See note 13 for the carrying amount of the tangible fixed assets and note 2 for the useful economic lives for each class of asset.