REGISTERED NUMBER: 07216831 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 DECEMBER 2024

FOR

JURNI LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

16

DIRECTORS:

S J Donald

D Fitzgerald

N J Fox

G R Jones

N Griffin

REGISTERED OFFICE:

Tamarisk House

North Leigh Business Park

North Leigh

Oxfordshire

OX29 6SW

REGISTERED NUMBER:

07216831 (England and Wales)

AUDITORS:

Jamesons Limited

Chartered Accountants and Statutory Auditors

Jamesons House

Compton Way

Witney

Oxfordshire

OX28 3AB

The directors present their strategic report for the year ended 30 December 2024.

PRINCIPAL ACTIVITY AND REVIEW OF BUSINESS

The principal activity of the company remains that of a vehicle leasing broker.

The company's name was changed to Jurni Limited in November 2023. Following it's rebranding, and throughout 2024, the Company made significant investment into brand awareness with the successful launch of a new website, and numerous, targeted marketing campaigns.

Relationships with OEM's, Dealer Groups and funders have continued to grow and develop and these relationships are bringing both new and unique opportunities.

2024 was another challenging year for the industry. Cost of living continues to impact on consumer confidence, as does interest rate uncertainty The market has also seen volatility in residual values, especially with Electric Vehicles. However, availability of stock improved significantly which has helped to reduce vehicle delivery timescales, improving customer outcomes. In addition, the market saw the introduction of Commission Disclosure following the Court of Appeal decision to uphold the case of Hopcraft, Wrench and Johnson, ruling on motor finance commissions. This ruling was appealed to the Supreme Court with the case likely to be heard in Summer 2025. The company implemented new practices and procedures and fully supports Commission Disclosure enabling full transparency and better outcomes for both businesses and consumers, alike

The company continues to be a market leader in the leasing of minibuses to the educational sector. The number of own book vehicles that can be sold at end of contact continues to grow. As a result ,the company is investing in a new sales site enabling these vehicles to be sold direct to end users without the need to utilize auction sites or other third parties. Ongoing, the company will continue to add to its 'own book fleet' which will increase the number of sales opportunities.

The company's turnover for the year ended 30 December 2024 was £44,290,450 (2023 - £30,720,406), an increase of 44%. The company's profit before tax and dividends for the year was £319,672 (2023 - £592,001). The company's profit before interest, amortisation, depreciation and investment adjustments for the year ended 30 December 2024 was £1,561,839 (2023 - £1,920,221).

In November 2024, Jurni acquired FIRE5 digital, a leading provider of digital solutions specializing in CRM automation and integrated websites. This strategic acquisition enables us to enhance our ability to deliver superior customer experiences backed by leading industry tools and technologies. In addition, we continue to invest in our team, training programs, office infrastructure, and computer hardware.

PRINCIPAL RISKS AND UNCERTAINTIES

The directors have assessed the key risk of the business to be the continued demand for new vehicles within the UK. Given the various income streams of the company other principle risks are considered to be:

- availability of funding

- availability of stock

- residual value risk, particularly Electric Vehicles

- financing cost risk

- interest rate risk

FINANCIAL KEY PERFORMANCE INDICATORS

Key Performance Indicators (KPI's) are used by the company to review the overall performance of the business. Monthly management accounts are produced and reviewed and are compared to budgeted figures across our various branches. These reviews allow us to take the appropriate actions when deemed necessary.The Senior Management Team meet monthly to review all areas of the business and report their findings to the Board of Directors.

KPI's are also used to monitor lead generation, sales orders and delivery targets.

ON BEHALF OF THE BOARD:

G R Jones - Director

30 September 2025

The directors present their report with the financial statements of the company for the year ended 30 December 2024.

DIVIDENDS

The total distribution of dividends for the year ended 30 December 2024 will be £428,580.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in note 27 to the financial statements.

DIRECTORS

The directors shown below have held office during the whole of the period from 31 December 2023 to the date of this report.

S J Donald

D Fitzgerald

N J Fox

G R Jones

N Griffin

GOING CONCERN

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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.

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 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 company's auditors are aware of that information.

AUDITORS

In accordance with the company's articles, a resolution proposing that Jamesons Limited be reappointed as auditor of the company will be put at a General Meeting.

ON BEHALF OF THE BOARD:

G R Jones - Director

30 September 2025

Opinion

We have audited the financial statements of Jurni Limited (the 'company') for the year ended 30 December 2024 which comprise the Statement of 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 30 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.

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 and the Report of the Directors, 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.

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 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 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.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non - compliance with laws and regulations was as follows:

-

The engagement partner ensured that the engagement team collectively had appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulation;

-

We identified the laws and regulations applicable to the company through discussion with directors and informed management and from our commercial knowledge and experience of the industry;

-

We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company including Companies Act 2006, taxation legislation, employment legislation and health and safety legislation;

-

We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and reviewing documentation during the audit; and

-

Identified laws and regulations were communicated within the audit team and the team remained alert to instances of non-compliance during the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by;

-

Making enquires of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

-

Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

-

Reviewed the financial statements and records to identify any unusual or unexpected relationships;

-

Tested journal entries to identify unusual transactions;

-

Assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

-

Investigated the rationale behind any significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

-

Enquiring of management as to actual and potential litigation and claims;

-

Agreeing financial statement disclosures to underlying supporting documentation;

-

Reviewing correspondence with HMRC and other applicable sources.

There are inherent limitations in our audit procedures described above. The risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquire of the directors and informed management and the inspection of regulatory and legal correspondence if any.

The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation and there is therefore a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.

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.

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.

Anita Lyon FCA FCCA (Senior Statutory Auditor)

for and on behalf of Jamesons Limited

Chartered Accountants and Statutory Auditors

Jamesons House

Compton Way

Witney

Oxfordshire

OX28 3AB

30 September 2025

TURNOVER

3

44,290,450

30,720,406

Cost of sales

35,614,339

23,071,323

GROSS PROFIT

8,676,111

7,649,083

Administrative expenses

8,783,831

6,878,193

OPERATING (LOSS)/PROFIT

5

(107,720

)

770,890

Income from shares in group undertakings

734,918

76,500

Interest receivable and similar income

1,197

3,122

736,115

79,622

628,395

850,512

Amounts written off investments

6

75,362

-

553,033

850,512

Interest payable and similar expenses

7

233,361

258,511

PROFIT BEFORE TAXATION

319,672

592,001

Tax on profit

8

140,084

335,563

PROFIT FOR THE FINANCIAL YEAR

179,588

256,438

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

179,588

256,438

FIXED ASSETS

Intangible assets

10

6,527,424

6,940,820

Tangible assets

11

2,451,459

2,440,228

Investments

12

694,310

775,187

9,673,193

10,156,235

CURRENT ASSETS

Stocks

13

-

39,741

Debtors

14

3,251,915

2,466,146

Cash at bank

16,070

164,973

3,267,985

2,670,860

CREDITORS

Amounts falling due within one year

15

4,164,092

4,140,796

NET CURRENT LIABILITIES

(896,107

)

(1,469,936

)

TOTAL ASSETS LESS CURRENT LIABILITIES

8,777,086

8,686,299

CREDITORS

Amounts falling due after more than one year

16

1,947,528

1,607,749

NET ASSETS

6,829,558

7,078,550

CAPITAL AND RESERVES

Called up share capital

21

1,629,500

1,629,500

Share premium

22

3,880,535

3,880,535

Retained earnings

22

1,319,523

1,568,515

SHAREHOLDERS' FUNDS

6,829,558

7,078,550

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

G R Jones - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 31 December 2022

1,629,500

1,458,077

3,880,535

6,968,112

Changes in equity

Dividends

-

(146,000

)

-

(146,000

)

Total comprehensive income

-

256,438

-

256,438

Balance at 30 December 2023

1,629,500

1,568,515

3,880,535

7,078,550

Changes in equity

Dividends

-

(428,580

)

-

(428,580

)

Total comprehensive income

-

179,588

-

179,588

Balance at 30 December 2024

1,629,500

1,319,523

3,880,535

6,829,558

Cash flows from operating activities

Cash generated from operations

1

(1,114,889

)

164,533

Interest paid

(61,834

)

(97,008

)

Interest element of hire purchase payments paid

(171,527

)

(161,503

)

Tax paid

-

3,092

Net cash from operating activities

(1,348,250

)

(90,886

)

Cash flows from investing activities

Purchase of intangible fixed assets

(547,910

)

(33,333

)

Purchase of tangible fixed assets

(2,136,372

)

(707,402

)

Purchase of fixed asset investments

(542,495

)

(82,915

)

Sale of tangible fixed assets

3,519,522

2,582,555

Sale of fixed asset investments

547,910

-

Impairment of investments

75,362

-

Interest received

1,197

3,122

Dividends received

734,918

76,500

Net cash from investing activities

1,652,132

1,838,527

Cash flows from financing activities

Loan repayments in year

-

(38,079

)

Capital repayments in year

(152,534

)

(1,335,771

)

Amount introduced by directors

1,413

-

Amount withdrawn by directors

-

(34,171

)

Equity dividends paid

(428,580

)

(146,000

)

Net cash from financing activities

(579,701

)

(1,554,021

)

(Decrease)/increase in cash and cash equivalents

(275,819

)

193,620

Cash and cash equivalents at beginning of year

2

49,497

(144,123

)

Cash and cash equivalents at end of year

2

(226,322

)

49,497

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

2024

2023

£

£

Profit before taxation

319,672

592,001

Depreciation charges

1,668,362

1,146,209

Profit on disposal of fixed assets

(2,101,337

)

(1,465,535

)

Finance costs

233,361

258,511

Finance income

(736,115

)

(79,622

)

(616,057

)

451,564

Decrease/(increase) in stocks

39,741

(39,741

)

Increase in trade and other debtors

(927,267

)

(311,273

)

Increase in trade and other creditors

388,694

63,983

Cash generated from operations

(1,114,889

)

164,533

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 30 December 2024

30.12.24

31.12.23

£

£

Cash and cash equivalents

16,070

164,973

Bank overdrafts

(242,392

)

(115,476

)

(226,322

)

49,497

Year ended 30 December 2023

30.12.23

31.12.22

£

£

Cash and cash equivalents

164,973

173,785

Bank overdrafts

(115,476

)

(317,908

)

49,497

(144,123

)

3.	ANALYSIS OF CHANGES IN NET DEBT

At 31.12.23

Cash flow

At 30.12.24

£

£

£

Net cash

Cash at bank

164,973

(148,903

)

16,070

Bank overdrafts

(115,476

)

(126,916

)

(242,392

)

49,497

(275,819

)

(226,322

)

Debt

Finance leases

(1,786,573

)

152,534

(1,634,039

)

(1,786,573

)

152,534

(1,634,039

)

Total

(1,737,076

)

(123,285

)

(1,860,361

)

1.	STATUTORY INFORMATION

Jurni 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.

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

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.

Going Concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Preparation of consolidated financial statements

The financial statements contain information about Jurni Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertakings are included by full consolidation in the consolidated financial statements of its parent, Jurni Capital Limited, Tamarisk House, North Leigh Business Park, North Leigh, OX29 6SW.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the company'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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Stocks

Stock is valued at the lower cost and net realisable value. New realisable value includes, where necessary, provisions for slow moving and obsolete stocks. Calculation of these provisions requires judgements to be made, which include forecast consumer demand, the promotional, competitive and economic environment and inventory loss trends.

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.

Goodwill

Determining whether goodwill is impaired requires 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 from the cash generating unit and a suitable discount rate in order to calculate present value. The carrying amount of goodwill at the reporting end date was reviewed by the directors and considered to be recorded at fair value.

Turnover

Turnover represents amounts receivable from principal activities, net of value added tax and trade discounts.

Revenue from the sale of cars is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on delivery of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of businesses since 2011, is being amortised over its estimated useful life of twenty years.

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.

Plant and machinery

-

25% on reducing balance

Fixtures and fittings

-

25% on reducing balance

Motor vehicles

-

50% on cost, 25% on cost, 25% on reducing balance and at varying rates on cost

Computer equipment

-

33% on cost

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost less impairment.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Financial instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instruments.

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.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Taxation

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

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.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Cash at bank and in hand

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amount of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an 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.

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation reserve.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. When an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior year. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation reserve.