REGISTERED NUMBER: 08714466 (England and Wales)

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

MARVIN'S MAGIC HOLDINGS LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Consolidated Income Statement

11

Consolidated Other Comprehensive Income

12

Consolidated Balance Sheet

13

Company Balance Sheet

14

Consolidated Statement of Changes in Equity

15

Company Statement of Changes in Equity

16

Consolidated Cash Flow Statement

17

Notes to the Consolidated Cash Flow Statement

18

Notes to the Consolidated Financial Statements

20

DIRECTORS:

Mr M Berglas

Mr D E Cicurel

Ms M Naggar

Mr J Naggar

Mr G A Naggar

SECRETARY:

Ms C Snell

REGISTERED OFFICE:

The Mayland's Building

Maylands Avenue

Hemel Hempstead

HP2 7TG

REGISTERED NUMBER:

08714466 (England and Wales)

AUDITORS:

MGR Weston Kay LLP

55 Loudoun Road

St John's Wood

London

NW8 0DL

BANKERS:

Santander UK Plc

Bridle Road

Bootle

Merseyside

L30 4GB

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

FAIR REVIEW OF BUSINESS

The group solely operates through Marvin's Magic Limited, a company that generates revenue through the sale of products to physical retail and ecommerce sites.

The Marvin's Magic company now operates across two, clear trading divisions:

Marvin's Magic Brand:

The Marvin's Magic brand is the market leader in delivering magical products and experiences focused on toys and gifts in categories such as Arts and Crafts, Pranks and Jokes and Award-Winning Magic Tricks.

Marvin's Distribution:

Marvin's Distribution brings quality toy and gift brands to the UK and Irish markets via their existing infrastructure and

strong relationships with key retailers. Current exclusive contracts are held with ZipString, Sharper Image, Discovery, FAO Schwarz and Clixo.

The company operates across three key verticals:

Demonstration - Live product demonstrations in flagship retail locations remain a cornerstone of brand engagement.

These captivating experiences are hosted in premier cities including London, New York, Paris, Milan, and Dubai,

reinforcing the brand's premium positioning and driving in-store conversions.

Wholesale - The company maintains strong relationships with global retailers, supplying a diverse range of toys, games and gifts for resale. This vertical ensures wide market reach and consistent volume-based sales across international territories.

eCommerce - Online sales continue to grow through major platforms such as Amazon in the UK, US and Europe plus

Target.com, Walmart.com, and others. This channel supports direct-to-consumer engagement, data-driven marketing, and scalable growth opportunities.

PRINCIPAL RISKS AND UNCERTAINTIES

The following are seen as key risks and uncertainties to the business:

Losing key customers, the company mitigates this by building recurring revenues with well-established customers, adding more products to their portfolio, increasing their value to the markets and establishing new business relationships. The company has a long-standing reputation for delivering quality, innovative products and remains well regarded in the market.

Increase in the cost of products and tariffs, the company mitigates this by having a trusted supplier base with opportunities to manufacture in different locations at competitive prices. The company plan to explore global sourcing in new territories - India, Vietnam, Taiwan to further mitigate against US tariff uncertainty. Additionally working with customers and suppliers to minimise the impact of tariffs by working on a First cost and MDDP basis with larger suppliers/customers and implementing price increases in the US whilst keeping pricing competitive.

Possible increases in freight, the company mitigates against by holding strong relationships with shipping companies and keeping in close contact to agree the most competitive rates.

Currency fluctuations, the company mitigates currency risk by maintaining access to a foreign exchange platform. This enables it to purchase foreign currency in advance at agreed rates, protecting against sudden movements in exchange rates. The facility was not used during 2024. The company also receives income in foreign currencies and uses the same currencies to pay suppliers, which reduces the need for conversions and helps limit exposure to exchange rate risk.

FINANCIAL PERFORMANCE

For the period, the group reported a turnover of £9.1m and a loss of £706k compared to turnover of £11.4m and a loss of £86k in the previous period.

The loss reflects the reduction in turnover and profit from a large non-recurring Global Customer. The company also

experienced unforeseen US stock issues of key lines during the critical Q4 trading period.

The company invested in additional staffing overhead to grow more sustainable revenues to replace the non-recurring turnover previously enjoyed.

There were further investments in the Finance and Operations teams to improve processes and performance and to build a robust infrastructure that supports business development into the future.

With the above in consideration, 2024 is understood as a transitional year as the Marvin's Magic company evolved the business beyond it's historical niche, to establish more sustainable revenue streams with attractive upside.

KEY PERFORMANCE INDICATORS

2024

2023

£

£

Turnover

9,110,448

11,377,468

Gross profit

2,979,060

4,913,306

Gross profit margin

32.70%

43.20%

The year 2024 is a transitional period for Marvin's Magic Limited, marked by significant investments in new business

initiatives and efforts to diversify trading channels. These strategic moves reflect the company's commitment to long-term growth and resilience in an evolving market landscape. By embracing innovation and strengthening partnerships, Marvin's Magic is positioning itself to capture new opportunities and mitigate emerging risks.

As we move forward, maintaining financial discipline while fostering agility will be key to navigating uncertainties. The foundations laid this year will ensure future success for the company to remain one of the most unique and successful toy companies in the UK.

ON BEHALF OF THE BOARD:

Mr M Berglas - Director

30 September 2025

The directors present their 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 company is that of a holding company,

The principal activity of the group is that of the design and distribution of magic products under the brand name, Marvin's Magic.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2024.

DIRECTORS

The directors during the year under review were:

Mr M Berglas

Mr D E Cicurel

Ms M Naggar

Mr J Naggar

Mr G A Naggar

AUDITOR

In accordance with the company's articles, a resolution proposing that MGR Weston Kay LLP be reappointed as auditor of the group will be put at a General Meeting.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial

statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the

directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted

Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors

must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of

affairs of the company and the group and of the profit or loss of the group for that period. In preparing these

financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;

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

- state whether applicable Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company

will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the

company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the

company and the group and enable them to ensure that the financial statements comply with the Companies Act

2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking

reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

ON BEHALF OF THE BOARD:

Mr M Berglas - Director

30 September 2025

Opinion

We have audited the financial statements of Marvin's Magic Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the Consolidated Income Statement, Consolidated Other 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 loss 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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and 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 directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and 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 Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

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

Matters on which 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 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

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

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

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

Responsibilities of directors

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

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

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 inline with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. Based on our understanding of the group and parent company and their industry, we identified that the principal risks on noncompliance with laws and regulations related to Employment Law and Health and Safety regulations, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, such as the Companies Act 2006.

As part of our planning of the audit work required we obtained an understanding of the legal and regulatory frameworks that are applicable to the entity via enquiries of the company’s management, carried out analytical procedures, held discussions amongst the engagement team and using knowledge of the sector determined that the most significant laws and regulation are those that relate to:

- Employment law.

- Health and safety.

- Data protection.

- UK Tax legislation.

We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as FRS102 and the Companies Act 2006.

Based on the results of our risk assessment we designed our audit procedures to identify non-compliance with the laws and regulations and the fraud risks identified. This included enquiries with management to understand their policies and procedures for compliance with those regulations and we completed the following tests:

- Obtained an understanding of relevant controls.

- Reviewed the company’s policies.

- Checked samples of documentation.

We also assessed the risks of material misstatement in respect of fraud as follows:

- Revenue fraud.

- Unauthorised expenditure and/or payments.

- Management override of controls.

- Related party fraud.

Based on the results of our risk assessment we designed our audit procedures to identify and to address material misstatements in relation to fraud. This included the risk of management bias relating to judgements and assumptions used in calculating the year end stock provision along with testing manual journals.

No significant issues were identified during our testing.

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusions, forgery, intentional omissions, misrepresentations or the override of internal controls.

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.

Nigel Walfisz FCA (Senior Statutory Auditor)

for and on behalf of MGR Weston Kay LLP

55 Loudoun Road

St John's Wood

London

NW8 0DL

30 September 2025

TURNOVER

4

9,110,448

11,377,468

Cost of sales

(6,131,388

)

(6,464,162

)

GROSS PROFIT

2,979,060

4,913,306

Distribution costs

(432,521

)

(406,703

)

Administrative expenses

(3,226,199

)

(4,316,960

)

OPERATING (LOSS)/PROFIT

6

(679,660

)

189,643

Interest payable and similar expenses

8

(160,410

)

(116,595

)

(LOSS)/PROFIT BEFORE TAXATION

(840,070

)

73,048

Tax on (loss)/profit

9

134,065

(159,096

)

LOSS FOR THE FINANCIAL YEAR

(706,005

)

(86,048

)

Loss attributable to:

Owners of the parent

(706,005

)

(86,048

)

LOSS FOR THE YEAR

(706,005

)

(86,048

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(706,005

)

(86,048

)

Total comprehensive income attributable to:

Owners of the parent

(706,005

)

(86,048

)

FIXED ASSETS

Intangible assets

11

30,417

281,305

Tangible assets

12

46,494

45,477

Investments

13

-

-

76,911

326,782

CURRENT ASSETS

Stocks

14

2,181,961

2,499,071

Debtors

15

3,005,918

2,621,376

Cash at bank and in hand

1,432,925

598,374

6,620,804

5,718,821

CREDITORS

Amounts falling due within one year

16

(4,926,106

)

(3,367,989

)

NET CURRENT ASSETS

1,694,698

2,350,832

TOTAL ASSETS LESS CURRENT LIABILITIES

1,771,609

2,677,614

CREDITORS

Amounts falling due after more than one year

17

(283,333

)

(483,333

)

NET ASSETS

1,488,276

2,194,281

CAPITAL AND RESERVES

Called up share capital

19

100

100

Share premium

20

2,533,233

2,533,233

Retained earnings

20

(1,045,057

)

(339,052

)

SHAREHOLDERS' FUNDS

1,488,276

2,194,281

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:

Mr M Berglas - Director

FIXED ASSETS

Intangible assets

11

-

-

Tangible assets

12

-

-

Investments

13

4,000,000

4,000,000

4,000,000

4,000,000

CURRENT ASSETS

Debtors

15

35

16,684

Cash at bank

4,799

1,185

4,834

17,869

CREDITORS

Amounts falling due within one year

16

(1,226,179

)

(1,222,195

)

NET CURRENT LIABILITIES

(1,221,345

)

(1,204,326

)

TOTAL ASSETS LESS CURRENT LIABILITIES

2,778,655

2,795,674

CAPITAL AND RESERVES

Called up share capital

19

100

100

Share premium

20

2,533,233

2,533,233

Retained earnings

20

245,322

262,341

SHAREHOLDERS' FUNDS

2,778,655

2,795,674

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

(17,019

)

2,712,440

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:

Mr M Berglas - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 January 2023

100

(253,004

)

2,533,233

2,280,329

Changes in equity

Total comprehensive income

-

(86,048

)

-

(86,048

)

Balance at 31 December 2023

100

(339,052

)

2,533,233

2,194,281

Changes in equity

Total comprehensive income

-

(706,005

)

-

(706,005

)

Balance at 31 December 2024

100

(1,045,057

)

2,533,233

1,488,276

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 January 2023

100

(2,450,099

)

2,533,233

83,234

Changes in equity

Total comprehensive income

-

2,712,440

-

2,712,440

Balance at 31 December 2023

100

262,341

2,533,233

2,795,674

Changes in equity

Total comprehensive income

-

(17,019

)

-

(17,019

)

Balance at 31 December 2024

100

245,322

2,533,233

2,778,655

Cash flows from operating activities

Cash generated from operations

1

(24,587

)

1,038,065

Interest paid

(160,410

)

(116,595

)

Tax paid

(167,672

)

(320,514

)

Net cash from operating activities

(352,669

)

600,956

Cash flows from investing activities

Purchase of intangible fixed assets

-

(52,451

)

Purchase of tangible fixed assets

(11,733

)

(48,527

)

Net cash from investing activities

(11,733

)

(100,978

)

Cash flows from financing activities

New loans in year

1,398,953

-

Loan repayments in year

(200,000

)

(200,000

)

Repayment of other loans

-

(570,956

)

Amount withdrawn by directors

-

(823,129

)

Net cash from financing activities

1,198,953

(1,594,085

)

Increase/(decrease) in cash and cash equivalents

834,551

(1,094,107

)

Cash and cash equivalents at beginning of year

2

598,374

1,692,481

Cash and cash equivalents at end of year

2

1,432,925

598,374

1.	RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31.12.24

31.12.23

£

£

(Loss)/profit before taxation

(840,070

)

73,048

Depreciation charges

261,606

655,769

Finance costs

160,410

116,595

(418,054

)

845,412

Decrease in stocks

317,110

361,765

(Increase)/decrease in trade and other debtors

(230,353

)

19,956

Increase/(decrease) in trade and other creditors

306,710

(189,068

)

Cash generated from operations

(24,587

)

1,038,065

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

1,432,925

598,374

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

598,374

1,692,481

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank and in hand

598,374

834,551

1,432,925

598,374

834,551

1,432,925

Debt

Debts falling due within 1 year

(230,729

)

(1,398,954

)

(1,629,683

)

Debts falling due after 1 year

(483,333

)

200,000

(283,333

)

(714,062

)

(1,198,954

)

(1,913,016

)

Total

(115,688

)

(364,403

)

(480,091

)

1.	STATUTORY INFORMATION

Marvin's Magic Holdings Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Mayland's Building, Maylands Avenue, Hemel Hempstead, Hertfordshire, HP2 7TG.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" ("FRS 102") and the requirements of the Companies Act 2006.

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

Financial Reporting Standard 102 - reduced disclosure exemptions

The group has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

•

the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A.

Basis of consolidation

The consolidated group financial statements consist of the the financial statements of the parent company, Marvin's Magic Holdings Limited together with its entity controlled by the parent entity (its subsidiary) and the group's share of its interests in joint ventures and associates.

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

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

Going Concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

Turnover

Turnover represents amounts receivable for goods and services supplied to customers, net of VAT and trade discounts. Sales of goods and services are recognised as revenue when the goods have been dispatched.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2014, is being amortised evenly over its estimated useful life of ten years.

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition.

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.

Patents and licences are being amortised evenly over their estimated useful life of 3-10 years.

Computer software is being amortised evenly over its estimated useful life of 4-5 years.

Tangible fixed assets

Tangible assets are initially measured at cost. After initial recognition, tangible assets are measured at costless any accumulated depreciation.

Fixtures and fittings are being depreciated evenly over their estimated useful life of 5 years.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Cost is determined using the weighted average cost method.

Cost comprises direct materials and, where applicable, those overheads that have been incurred in bringing the stock to their present location and condition.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, 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.