REGISTERED NUMBER: 05716587 (England and Wales)

Strategic Report,

Report of the Directors and

Financial Statements

for the Year Ended 31 December 2024

for

Impact Productions (Milton Keynes)

Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Directors' Responsibilities Statement

6

Report of the Independent Auditors

7

Income Statement

11

Other Comprehensive Income

12

Balance Sheet

13

Statement of Changes in Equity

14

Cash Flow Statement

15

Notes to the Cash Flow Statement

16

Notes to the Financial Statements

18

DIRECTORS:

J P Mason

K Saunders

REGISTERED OFFICE:

The Stable Yard

25-33 Vicarage Road

Stony Stratford

Milton Keynes

Buckinghamshire

MK11 1BN

REGISTERED NUMBER:

05716587 (England and Wales)

AUDITORS:

BK Plus Audit Limited

Azzurri House Walsall Business Park

Aldridge

Walsall

West Midlands

WS9 0RB

The directors present their strategic report for the year ended 31 December 2024.

REVIEW OF BUSINESS

Incorporated over 20 years ago, IPS has established a strong reputation within the UK events industry, providing trade hire equipment, technical production support, and staging and structural solutions. The company has continued to deliver high-quality services to a wide range of clients and remains a trusted partner in delivering successful live events.

During the year, IPS strengthened its service offering, secured further long-term contracts, and continued to build trusted relationships with clients across the UK.

Investment also continued in the development of the company's new headquarters, which is designed to provide purpose-built offices and warehouse facilities. Once completed, this new location will enhance operational efficiency, expand capacity, and strengthen the long-term asset base of the business.

The Directors are satisfied with the progress achieved during the year and remain committed to a strategy centred on strengthening core operations, expanding into complementary markets, and investing in innovation to maintain a competitive advantage.

PRINCIPAL RISKS AND UNCERTAINTIES

The company has a formal risk management framework in place to identify, monitor and mitigate risks which could affect its operations.

Economic risks

The demand for live events is closely linked to consumer spending and sponsorship levels. A downturn in the economy could result in fewer or smaller events. IPS mitigates this by maintaining a diversified client base across different types of events and by monitoring market trends closely.

Operational risks

The complexity of delivering live events, which require the coordination of equipment, suppliers, contractors, venues, and internal teams. Issues such as equipment failure, technical problems, transport delays or staffing shortages could disrupt delivery. These risks are addressed through investment in reliable equipment, detailed event planning, strong supplier relationships and the implementation of robust contingency procedures.

Financial risks

Fluctuations in demand, seasonal trading patterns and rising costs of equipment, maintenance and transportation. IPS manages these by maintaining appropriate reserves, closely monitoring cash flow, negotiating long-term supplier agreements and carrying comprehensive insurance cover.

Regulatory and legal risks

IPS manages these risks through comprehensive compliance procedures, regular staff training, and the use of professional advisers to ensure contracts and processes remain up to date.

Human resources and management risks

Challenges in recruitment or retention could affect operational capacity. IPS addresses this through ongoing investment in training and development, and by fostering a positive working environment that supports retention and attracts new talent.

ENVIRONMENT, SOCIAL AND GOVERNANCE (ESG)

IPS is committed to minimising its environmental impact. During the year, the company continued to invest in energy-efficient equipment and vehicles designed to reduce fuel consumption. Work on the new headquarters has been carried out with sustainability in mind, and further improvements in energy use and waste management are expected once it is complete.

Recycling and waste reduction initiatives have been expanded, and greater emphasis has been placed on using sustainable materials and suppliers wherever possible. The Directors remain committed to ongoing improvement in environmental performance and will continue to explore opportunities to reduce energy consumption and waste.

The company also recognises that its people are central to its success. During the year, IPS enhanced training and development programmes to build specialist skills across the workforce. A continued focus on health and safety has been maintained through regular reviews and training designed to uphold high standards at events and on site. The wellbeing of employees has been supported through flexible working and team engagement initiatives, while a clear commitment to diversity and inclusion ensures fair recruitment and equal opportunity for all.

IPS also maintains high standards of governance to support sustainable growth. The Board reviews compliance and risk management on a regular basis and ensures that robust procedures are in place across health and safety, employment law and environmental regulation. Responsibilities within the management team are clearly defined, and changes in legislation or industry standards are closely monitored to ensure full compliance. Looking ahead, the company intends to strengthen ESG reporting further, adopt recognised sustainability standards, and engage more closely with stakeholders on governance matters.

FUTURE DEVELOPMENTS

Looking forward, IPS expects operational capacity and efficiency to improve once the new headquarters is completed. Continued investment in equipment will expand the company's inventory and enhance client service, while increased marketing activity will help to strengthen market share and improve awareness of the full range of services offered by IPS. Staff training and development will remain a priority, ensuring that skills are strengthened and turnaround times improved. With expanded facilities in progress and a committed team, IPS is well-positioned to take advantage of future opportunities.

FINANCIAL PERFORMANCE

IPS delivered a strong financial performance in the year ended 31 December 2024, achieving turnover of £9.88mi and a strong gross profit margin of 66% despite inflation to subcontractor and logistics costs.

The company also achieved a strong operating profit margin of 23%.

Key financial indicators during the year were as follows:

2024

2023

£

£

Turnover

9.88mi

8.93mi

Profit before taxation

1.64mi

2.00mi

Shareholders' funds

14.49mi

13.41mi

ON BEHALF OF THE BOARD:

J P Mason - Director

29 September 2025

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of production services.

DIVIDENDS

The total distribution of dividends for the year ended 31 December 2024 will be £152,124.

The profit before tax for the year is £1,638,295.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

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

J P Mason

K Saunders

FINANCIAL INSTRUMENTS

Credit risk

The company is exposed to credit risk primarily through trade receivables. Credit risk arises from the possibility that customers or other counterparties may fail to settle amounts due to the company, resulting in financial loss. The directors monitor credit risk by reviewing outstanding receivables regularly and setting internal credit limits for customers. A provision is made for expected credit losses where necessary, in line with the company's accounting policies.

Liquidity risk

The company is primarily exposed through its repayment obligations on the bank loan and hire purchases. Liquidity risk arises from the risk that the company may not have sufficient funds available to meet its financial obligations as they fall due. The company manages this risk by preparing detailed cash flow forecasts, monitoring repayment schedules, and maintaining available borrowing facilities. Directors review reports regularly to ensure liquidity is sufficient.

DISCLOSURE IN THE STRATEGIC REPORT

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Sch. 7 to the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 (SI 2008/410) to be contained in the directors' report. It has done so in respect of future developments.

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 company'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 company's auditors are aware of that information.

AUDITORS

The auditors, BK Plus Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

J P Mason - Director

29 September 2025

The directors are responsible for preparing the 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 of the profit or loss of the company 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 transactions and disclose with reasonable accuracy at any time the financial position of the company 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Opinion

We have audited the financial statements of Impact Productions (Milton Keynes) Limited (the 'company') for the year ended 31 December 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its 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 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. 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 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 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 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 Strategic Report, the Report of the Directors and the Directors' Responsibilities Statement, but does not include the financial statements and our Report of the Auditors thereon.

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

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

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 the audit:

-	the information given in the 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 Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the 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 six, 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 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 company or to cease operations, or have no realistic alternative but to do so.

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 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 company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

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.

From the preliminary of the audit, we ensure our understanding of the entity is up to date. This includes, but is not limited to, current knowledge of their activities, the business and control environments, and their compliance with the applicable legal and regulatory frameworks. This information supports our risk identification and the subsequent design of audit procedures to mitigate those risks; ensuring that the audit evidence obtained is sufficient and appropriate to support our opinion.

In response to the risks identified, specific to this entity, we designed procedures which included, but were not limited to:

o Enquiry of management and those charged with governance around actual and potential litigation and

claims;

o Reviewing minutes of meetings of those charged with governance, if available;

o Reviewing financial statement disclosures and testing to supporting documentation to assess compliance

with applicable laws and regulations;

o Auditing the risk of management override of controls, including through testing journal entries and other

adjustments for appropriateness, and evaluating the business rationale for significant transactions 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 Report of the Auditors.

Other matters

Without qualifying our opinion, we draw attention to the accounting policies on page 18 to the financial statements and the fact that the comparative information in the accounts was unaudited as the company was entitled to exemption from audit.

Use of our report

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

Keval Dattani ACA (Senior Statutory Auditor)

for and on behalf of BK Plus Audit Limited

Azzurri House Walsall Business Park

Aldridge

Walsall

West Midlands

WS9 0RB

29 September 2025

TURNOVER

3

9,881,371

8,929,245

Cost of sales

3,354,185

3,054,633

GROSS PROFIT

6,527,186

5,874,612

Distribution costs

343,277

354,525

Administrative expenses

3,905,089

2,946,443

4,248,366

3,300,968

2,278,820

2,573,644

Other operating income

15,882

3,900

OPERATING PROFIT

5

2,294,702

2,577,544

Interest receivable and similar income

19,308

13,755

2,314,010

2,591,299

Interest payable and similar expenses

7

675,715

589,473

PROFIT BEFORE TAXATION

1,638,295

2,001,826

Tax on profit

8

406,079

636,848

PROFIT FOR THE FINANCIAL YEAR

1,232,216

1,364,978

PROFIT FOR THE YEAR

1,232,216

1,364,978

OTHER COMPREHENSIVE INCOME

-

2,321,311

Income tax relating to other comprehensive income

-

(580,328

)

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

-

1,740,983

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,232,216

3,105,961

FIXED ASSETS

Tangible assets

10

24,593,440

24,455,693

CURRENT ASSETS

Debtors

11

1,990,402

1,474,771

Cash at bank

883,900

1,261,482

2,874,302

2,736,253

CREDITORS

Amounts falling due within one year

12

3,341,708

5,018,191

NET CURRENT LIABILITIES

(467,406

)

(2,281,938

)

TOTAL ASSETS LESS CURRENT LIABILITIES

24,126,034

22,173,755

CREDITORS

Amounts falling due after more than one year

13

(5,816,973

)

(5,350,864

)

PROVISIONS FOR LIABILITIES

17

(3,818,153

)

(3,412,075

)

NET ASSETS

14,490,908

13,410,816

CAPITAL AND RESERVES

Called up share capital

18

120

120

Share premium

20,008

20,008

Revaluation reserve

1,724,199

4,140,795

Retained earnings

12,746,581

9,249,893

SHAREHOLDERS' FUNDS

14,490,908

13,410,816

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:

J P Mason - Director

Called up

share

Retained

Share

Revaluation

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1 January 2023

120

7,826,928

20,008

2,548,365

10,395,421

Changes in equity

Dividends

-

(90,566

)

-

-

(90,566

)

Total comprehensive income

-

1,513,531

-

1,592,430

3,105,961

Balance at 31 December 2023

120

9,249,893

20,008

4,140,795

13,410,816

Changes in equity

Dividends

-

(152,124

)

-

-

(152,124

)

Total comprehensive income

-

3,648,812

-

(2,416,596

)

1,232,216

Balance at 31 December 2024

120

12,746,581

20,008

1,724,199

14,490,908

Cash flows from operating activities

Cash generated from operations

1

4,948,367

4,404,516

Interest paid

(495,463

)

(407,760

)

Interest element of hire purchase payments paid

(149,362

)

(169,042

)

Finance costs paid

(30,890

)

(12,671

)

Net cash from operating activities

4,272,652

3,815,043

Cash flows from investing activities

Purchase of tangible fixed assets

(5,159,342

)

(8,359,747

)

Sale of tangible fixed assets

4,423,575

166,154

Interest received

19,308

13,755

Net cash from investing activities

(716,459

)

(8,179,838

)

Cash flows from financing activities

New loans in year

-

5,844,380

Loan repayments in year

(2,798,838

)

-

Capital repayments in year

(976,924

)

(999,680

)

Amount introduced by directors

582

-

Amount withdrawn by directors

(6,471

)

(60

)

Equity dividends paid

(152,124

)

(90,566

)

Net cash from financing activities

(3,933,775

)

4,754,074

(Decrease)/increase in cash and cash equivalents

(377,582

)

389,279

Cash and cash equivalents at beginning of year

2

1,261,482

872,203

Cash and cash equivalents at end of year

2

883,900

1,261,482

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

2024

2023

(Unaudited)

£

£

Profit before taxation

1,638,295

2,001,826

Depreciation charges

2,098,489

1,661,486

Loss/(profit) on disposal of fixed assets

337,626

(166,154

)

Finance costs

675,715

589,473

Finance income

(19,308

)

(13,755

)

4,730,817

4,072,876

Increase in trade and other debtors

(509,742

)

(466,670

)

Increase in trade and other creditors

727,292

798,310

Cash generated from operations

4,948,367

4,404,516

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

883,900

1,261,482

Year ended 31 December 2023

31.12.23

1.1.23

(Unaudited)

£

£

Cash and cash equivalents

1,261,482

872,203

3.	ANALYSIS OF CHANGES IN NET DEBT

Other

non-cash

At 1.1.24

Cash flow

changes

At 31.12.24

£

£

£

£

Net cash

Cash at bank

1,261,482

(377,582

)

883,900

1,261,482

(377,582

)

883,900

Debt

Finance leases

(2,098,962

)

976,924

-

(2,960,132

)

Debts falling due

within 1 year

(2,879,193

)

2,729,193

-

(150,000

)

Debts falling due

after 1 year

(4,107,531

)

69,643

-

(4,037,888

)

(9,085,686

)

3,775,760

-

(7,148,020

)

Total

(7,824,204

)

3,398,178

-

(6,264,120

)

1.	STATUTORY INFORMATION

Impact Productions (Milton Keynes) 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 Company 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.

Significant judgements and estimates

In the application of the company's accounting policies, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The company’s plant and machinery are carried at revalued amounts, with fair value determined internally by management using a combination of valuation methods. Judgement is required in selecting appropriate valuation techniques (e.g. market comparisons or depreciated replacement cost) and in assessing key assumptions such as asset condition, age, and current market conditions.

Valuations are performed by the company’s asset management team and reviewed regularly to ensure carrying amounts remain materially in line with fair value at the reporting date.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets

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

-

in accordance with the property

Improvements to property

-

in accordance with the property

Plant & machinery

-

14% on reducing balance

Fixtures and fittings

-

3 years, 25% on cost and 25% on reducing balance

Motor vehicles

-

25% on cost and 25% on reducing balance

Computer equipment

-

3 years and 25% on reducing balance

Plant and machinery are stated at revalued amounts, being fair value at the date of revaluation less any subsequent accumulated depreciation and impairment losses.

Revaluations are performed internally by the company’s asset management team with sufficient regularity to ensure that the carrying amount does not differ materially from fair value at the reporting date.

Fair value is determined using a combination of valuation approaches, including market prices for similar assets where available and other recognised valuation techniques where appropriate, based on management’s judgement and supported by observable market data where possible.

Increases in carrying amount arising from revaluation are recognised in other comprehensive income and accumulated in the revaluation reserve.

Depreciation on revalued plant and machinery is charged to profit or loss on a straight-line basis over the assets’ estimated useful lives.

Each year, an amount equal to the additional depreciation arising from the revalued element of the asset is transferred from the revaluation reserve to retained earnings. On disposal, any remaining revaluation surplus relating to the asset is transferred directly to retained earnings.

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indications that those assets have suffered impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.