REGISTERED NUMBER: 08020917 (England and Wales)

CLARK PARTNERS LTD

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTOR AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

Page

Group Strategic Report

1

Report of the Director

3

Report of the Independent Auditors

5

Consolidated Statement of 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

17

The director presents his strategic report of the company and the group for the year ended 31 December 2024.

REVIEW OF BUSINESS

The board and I are pleased to be able to share our strategic report for 2024 as the group consolidated our growth from 2023.

Although revenue fell 6.24% short of last year, we carry forward into 2025 our largest ever year end order book and customer commitments.

Our internal processes of continual improvement have enabled us to take significant cost out of our operations without compromising our specialised customer offering.

We feel the group is well placed to take advantage of the global trade uncertainty surrounding the ever changing tariff landscape that exists today.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal financial risks faced by the Group, and the Group's objectives and policies in relation to those risks are as follows:

Cash Flow Risk:

The Finance Director closely manages the Group's cash flow. Detailed cash flow forecasts are regularly prepared with the objective of alerting the Directors to potential future risks.

Credit Risk:

Credit risk arises if the Group is unable to recover sums due from customers. The Group has strong procedures in place with regard to credit control to minimise bad debt.

Currency Risk:

The Group faces currency risk on its net assets and earnings since, on translation of business with overseas customers and suppliers into sterling, currency movements can affect the Group's balance sheet and profit and loss account. The Group regularly reviews its exposure in the above areas and is satisfied that no significant threat exists.

FINANCIAL KEY PERFORMANCE INDICATORS

The directors consider the following Key Performance Indicators when assessing the performance of the Group:

Turnover:

Turnover for the year decreased by 6.24% to £13,652,536 (2023 - £14,561,907)

Gross Profit Margin:

Gross profit margin for the year decreased by 0.96% to 31.36% (2023 - 32.32%)

Profit Before Taxation:

Profit before taxation increased by 3.74% to £370,810 (2023 - £357,432)

FUTURE DEVELOPMENTS

As we entered the new year, our focus was firmly set on building a leaner, more efficient team and streamlining our processes. I'm pleased to say that we've made steady progress in achieving this goal, laying a stronger foundation for sustainable growth.

At the same time, we've faced significant headwinds-most notably the evolving tariff situation in our largest market. This has tested our resilience and adaptability. However, thanks to our agility, scale, and distinctive value proposition, we've not only weathered the storm but continued to deliver on our strategic objectives.

In fact, we've been able to seize new opportunities that have emerged from these challenges, positioning ourselves to maintain-and even grow-our margins as we move through 2025.

The global tariff landscape, particularly in the run-up to and following year-end, has introduced additional complexity for the group, our business partners, and the broader metals market. Yet, our ability to assess, respond, and recalibrate swiftly has proven to be a key differentiator. We remain confident in our trajectory and committed to delivering value across all fronts.

ON BEHALF OF THE BOARD:

G Clark - Director

30 September 2025

The director presents his report with the financial statements of the company and the group for the year ended 31 December 2024.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of engineering and related consultancy.

DIVIDENDS

No interim dividend was paid during the year. The director recommends a final dividend of £471 per share.

The total distribution of dividends for the year ended 31 December 2024 will be £ 329,600 .

FUTURE DEVELOPMENTS

The Group intends to follow it's strategy of organic growth.

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.

DIRECTOR

G Clark held office during the whole of the period from 1 January 2024 to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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 director is 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 he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, CFW Accountants LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

G Clark - Director

30 September 2025

Opinion

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

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2024 and of the group's profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, 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 Group Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

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

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

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

-	the parent company financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of director's remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is 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 director determines 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 director is responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the group or the parent company or to cease operations, or has 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:

Extent to which the audit was considered capable of detecting irregularities, including fraud

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

Identifying and assessing potential risks related to irregularities

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

- the nature of the industry and sector, control environment and business performance;

- results of our enquiries of management and those charged with governance about their own identification and assessment of the risks of irregularities;

- any matters we identified having obtained and reviewed the Company's documentation of their policies and procedures relating to:

- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;

- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;

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

- the matters discussed among the audit engagement team and involving other members of staff requiring consultation regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the Company operates in, focusing on provisions of those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the Companies Act 2006, Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (UK GAAP), pensions legislation and tax legislation.

In addition, we considered the provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Company's ability to operate or to avoid a material penalty. These include health and safety regulations.

Audit response to risks identified

As a result of performing the above, our procedures to respond to risks identified included the following:

- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

- enquiring of management and those charged with governance concerning actual and potential litigation and claims;

- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

- performing systems walkthrough tests to ensure our understanding of financial controls and;

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

We also communicate relevant identified laws and regulations and potential fraud risks to all engagement team members, including other members of staff consulted, and remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

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.

Karl Hobbins FCCA (Senior Statutory Auditor)

for and on behalf of CFW Accountants LLP

Chartered Accountants

& Statutory Auditors

3 Weekley Wood Close

Kettering

Northamptonshire

NN14 1UQ

30 September 2025

TURNOVER

3

13,652,536

14,561,907

Cost of sales

(9,371,183

)

(9,855,962

)

GROSS PROFIT

4,281,353

4,705,945

Administrative expenses

(3,730,359

)

(4,079,909

)

550,994

626,036

Other operating income

3,600

3,600

OPERATING PROFIT

5

554,594

629,636

Interest receivable and similar income

6

2,527

174

557,121

629,810

Interest payable and similar expenses

7

(186,311

)

(272,378

)

PROFIT BEFORE TAXATION

370,810

357,432

Tax on profit

8

(128,732

)

(43,983

)

PROFIT FOR THE FINANCIAL YEAR

242,078

313,449

OTHER COMPREHENSIVE INCOME

Currency translation differences

1,401

(17,479

)

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

1,401

(17,479

)

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

243,479

295,970

Profit attributable to:

Owners of the parent

242,078

313,449

Total comprehensive income attributable to:

Owners of the parent

243,479

295,970

FIXED ASSETS

Intangible assets

11

-

-

Tangible assets

12

1,723,468

2,343,158

Investments

13

-

-

1,723,468

2,343,158

CURRENT ASSETS

Stocks

14

4,471,369

4,839,249

Debtors

15

3,110,913

1,829,510

Cash at bank and in hand

1,069,090

1,494,573

8,651,372

8,163,332

CREDITORS

Amounts falling due within one year

16

6,442,353

6,255,017

NET CURRENT ASSETS

2,209,019

1,908,315

TOTAL ASSETS LESS CURRENT LIABILITIES

3,932,487

4,251,473

CREDITORS

Amounts falling due after more than one year

17

(864,298

)

(1,089,332

)

PROVISIONS FOR LIABILITIES

21

(75,892

)

(83,723

)

NET ASSETS

2,992,297

3,078,418

CAPITAL AND RESERVES

Called up share capital

22

700

700

Retained earnings

23

2,991,597

3,077,718

SHAREHOLDERS' FUNDS

2,992,297

3,078,418

The financial statements were approved and authorised for issue by the director and authorised for issue on 30 September 2025 and were signed by:

G Clark - Director

FIXED ASSETS

Intangible assets

11

-

-

Tangible assets

12

-

-

Investments

13

500

500

500

500

CURRENT ASSETS

Cash at bank and in hand

15,775

53,292

CREDITORS

Amounts falling due within one year

16

13,489

4,695

NET CURRENT ASSETS

2,286

48,597

TOTAL ASSETS LESS CURRENT LIABILITIES

2,786

49,097

CAPITAL AND RESERVES

Called up share capital

22

700

700

Retained earnings

23

2,086

48,397

SHAREHOLDERS' FUNDS

2,786

49,097

Company's profit for the financial year

283,289

439,245

The financial statements were approved and authorised for issue by the director and authorised for issue on 30 September 2025 and were signed by:

G Clark - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

700

3,197,548

3,198,248

Changes in equity

Dividends

-

(415,800

)

(415,800

)

Total comprehensive income

-

295,970

295,970

Balance at 31 December 2023

700

3,077,718

3,078,418

Changes in equity

Dividends

-

(329,600

)

(329,600

)

Total comprehensive income

-

243,479

243,479

Balance at 31 December 2024

700

2,991,597

2,992,297

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

700

24,952

25,652

Changes in equity

Dividends

-

(415,800

)

(415,800

)

Total comprehensive income

-

439,245

439,245

Balance at 31 December 2023

700

48,397

49,097

Changes in equity

Dividends

-

(329,600

)

(329,600

)

Total comprehensive income

-

283,289

283,289

Balance at 31 December 2024

700

2,086

2,786

Cash flows from operating activities

Cash generated from operations

1

684,961

1,085,761

Interest paid

(130,443

)

(218,403

)

Interest element of hire purchase payments paid

(55,868

)

(53,975

)

Exchange differences on fixed assets

(11,367

)

60,691

Translation differences through OCI

1,401

(17,479

)

Tax paid

(316,170

)

(199,287

)

Net cash from operating activities

172,514

657,308

Cash flows from investing activities

Purchase of tangible fixed assets

(73,903

)

(199,327

)

Sale of tangible fixed assets

298,433

6,436

Interest received

2,527

174

Net cash from investing activities

227,057

(192,717

)

Cash flows from financing activities

New loans in year

-

507,000

Loan repayments in year

(114,402

)

(159,068

)

Capital repayments in year

(462,172

)

(304,719

)

Amount introduced by directors

81,120

80,000

Amount withdrawn by directors

-

(89,000

)

Equity dividends paid

(329,600

)

(415,800

)

Net cash from financing activities

(825,054

)

(381,587

)

(Decrease)/increase in cash and cash equivalents

(425,483

)

83,004

Cash and cash equivalents at beginning of year

2

1,494,573

1,411,569

Cash and cash equivalents at end of year

2

1,069,090

1,494,573

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

2024

2023

£

£

Profit before taxation

370,810

357,432

Depreciation charges

258,452

346,671

Loss on disposal of fixed assets

158,075

2,282

Finance costs

186,311

272,378

Finance income

(2,527

)

(174

)

971,121

978,589

Decrease/(increase) in stocks

367,880

(1,596,190

)

(Increase)/decrease in trade and other debtors

(1,281,403

)

417,324

Increase in trade and other creditors

627,363

1,286,038

Cash generated from operations

684,961

1,085,761

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

1,069,090

1,494,573

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

1,494,573

1,411,997

Bank overdrafts

-

(428

)

1,494,573

1,411,569

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

and in hand

1,494,573

(425,483

)

1,069,090

1,494,573

(425,483

)

1,069,090

Debt

Finance leases

(918,613

)

462,172

-

(466,441

)

Debts falling due

within 1 year

(316,326

)

200,701

-

(115,625

)

Debts falling due

after 1 year

(465,290

)

(86,299

)

-

(551,589

)

(1,700,229

)

576,574

-

(1,133,655

)

Total

(205,656

)

151,091

-

(64,565

)

1.	STATUTORY INFORMATION

Clark Partners Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address are as below:

Registered number:

08020917

Registered office:

10 Cricketers Green

Weldon

Corby

Northamptonshire

NN17 3LP

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.

Basis of consolidation

The consolidated financial statements present the results of Company and its own subsidiaries ("the Group") as they formed a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.

The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Income and Retained Earnings from the date on which control is obtained. They are deconsolidated from the date control ceases.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the Group's accounting policies, which are described in note 2, management is required to make judgments, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from their 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.

Stock Provision - management apply judgement in evaluating stock for obsolescence. This judgement is based on management knowledge of the stock and customer demand. At each Balance Sheet date, stocks are assessed for impairment and written down where appropriate.

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 the period of the revision and future periods if the revision affects both the current and future periods.

Turnover

Turnover represents amounts (excluding value added tax) derived from the provision of goods and services to customers during the year.

Sale of goods

Turnover from the sale of goods is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually on the dispatch of the goods.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Computer software is being amortised evenly over its estimated useful life of ten 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.

Freehold property

-

5% on cost

Short leasehold

-

over the period of the lease

Plant and machinery

-

25% on reducing balance and 15% on reducing balance

Fixtures and fittings

-

20% on cost and 15% on reducing balance

Computer equipment

-

33% on cost and 25% on cost

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Cost is determined on a weighted average basis.

Debtors and creditors

Debtors receivable / creditors payable within one year are measured at transaction price (less any impairment losses on debtors for bad and doubtful debts). Loans and other financial assets / liabilities are initially measured at transaction price and subsequently measured at amortised cost determined using the effective interest method (less any impairment losses on debtors) for bad and doubtful debts.

Any losses arising from impairment are recognised in the profit and loss account.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

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

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

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

Pension costs and other post-retirement benefits

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