REGISTERED NUMBER: 13700608 (England and Wales)

Group Strategic Report,

Report of the Directors and

Consolidated Financial Statements

for the Year Ended 31 December 2024

for

Biker Group Holdings Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Statement of Income and Retained Earnings

10

Consolidated Balance Sheet

11

Company Balance Sheet

12

Consolidated Cash Flow Statement

13

Notes to the Consolidated Cash Flow Statement

14

Notes to the Consolidated Financial Statements

16

DIRECTORS:

B R Biker

M A Biker

S J J Biker

H M Pearson

A Spink

REGISTERED OFFICE:

Moor Park

Moor Road

Leyburn

North Yorkshire

DL8 5LA

REGISTERED NUMBER:

13700608 (England and Wales)

SENIOR STATUTORY AUDITOR:

Kevin Shotton BA BFP FCA

AUDITORS:

Clive Owen LLP

Chartered Accountants

& Statutory Auditors

140 Coniscliffe Road

Darlington

County Durham

DL3 7RT

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

REVIEW OF BUSINESS

The company's principal activities remained the same for 2024 as follows:

Biker Bespoke Ltd- Bespoke Joinery division.

Biker Groundworks Ltd - Groundworks division

Biker Group Haulage and Aggregates Ltd - Haulage, Aggregates, Telehandlers and Landfill

Biker Group Concrete Ltd - Concrete division

Biker Group Construction Ltd - Building division

AWB Autos Ltd - Automotive Garage

All of the above companies are 100% owned by Biker Group Holdings Ltd which remains 100% owned by the Biker family.

The key financial and other performance indicators during the year were as follows:

2024

2023

Change

£

£

%

Turnover

33,859,429

28,631,277

18.3%

Gross profit

5,828,440

4,431,099

31.5%

Administrative expenses

4,348,577

3,219,615

35.1%

Operating profit

1,616,279

1,297,911

24.5%

Profit before tax

1,489,442

1,164,500

27.9%

Shareholders funds

5,051,681

4,588,976

10.1%

Overall, 2024 built on the success of 2023 and most companies within the group saw growth and increased profits.

Turnover for the group was up 18.3% and profits (before adjustments) were up 27.9%.

The Board continued to be risk adverse in these uncertain times and asset purchases were selective.

Capital investment will continue to be selective in 2025 due to the effects of current government policies.

Biker Group Concrete Ltd opened its third batching plant in Stockton during September 2025 with an investment of over £1.5m.

Biker Group Groundworks Ltd and Biker Group Concrete Ltd moved into new office premises in Thirsk during April 2025.

The long-term strategy of the Board is to keep investing and growing profitable companies within the group, achieve greater efficiencies and to look for new opportunities.

The cash position of the business continues to improve through operating profits, careful overhead cost control, reduction of debt and prompt cash recovery. The company remains committed to paying its supply chain partners within terms.

Since the pandemic the board has concentrated on reducing the company's borrowings and this has been successfully continued into 2024 with total loans reducing by 43% and is predicted to continue to fall in 2025. The two CBILS loans which the company took out post covid are due to complete in September and November 2025

The board of directors look forward to 2025/26 however, caution remains about the longer-term outlook and the market's susceptibility to wider economic factors such as interest rates, inflation, cost of living crisis and the new government's housing policy. Whilst the outlook remaining one of positivity, the board recognises that the situation can change quickly and are prepared for any dramatic downturn.

PRINCIPAL RISKS AND UNCERTAINTIES

Exposure to credit risk

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. Company policies are aimed at minimising such losses and require that deferred terms are only granted to customers who demonstrate an appropriate payment history and satisfy credit worthiness procedures. The company uses a third-party credit agency to check creditworthiness and any potential at risk customers will have their invoices insured. During 2022 credit insurance was taken out on Biker Group Concrete Ltd debtors' book and in early 2023 on Biker Group Groundworks Ltd debtors' book. Biker Group Haulage Ltd insurance is currently being appraised.

Liquidity risk

The biggest issue the company faces with the continual increases in material prices and wages rises is profitability with little opportunity to pass these onto its customers. The company continues to plan to reduce its loans in 2025 and future years, building a stronger balance sheet with less short term and long-term debt.

Economic environment

Due to the nature of the industries that the company operates within, the general economic climate is considered a key business risk.

The company has long standing supply partners and we have negotiated with them to keep increases to a minimum where possible and with a short lead time of one to two months we can successfully manage to pass on all these increased costs to our customers retaining our gross profit margin.

The board of directors continue to plan for the next recession and as such have formulated a 5-part strategy to best prepare the business. The strategy is as follows.

1.

Keep capital investment to a minimum and continue to reduce loans and finance commitments, both short and long-term, to make a more robust balance sheet leaving the company better prepared to react quickly to any sudden downturn in the market.

2.

Build up large cash reserves.

3.

Continue to carefully select customers and projects based on risk to the business.

4.

Target a sustainable profit margin within all successful tenders.

5.

Insure, where possible, clients for the possibility of insolvency.

ON BEHALF OF THE BOARD:

B R Biker - 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.

DIVIDENDS

The total distribution of dividends for the year ended 31 December 2024 will be £621,854.

DIRECTORS

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

B R Biker

M A Biker

S J J Biker

H M Pearson

Other changes in directors holding office are as follows:

A Spink - appointed 31 October 2024

A W Biker ceased to be a director after 31 December 2024 but prior to the date of this report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

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

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Clive Owen LLP, are deemed to be reappointed under section 487(2) of the Companies Act 2006.

ON BEHALF OF THE BOARD:

B R Biker - Director

30 September 2025

Opinion

We have audited the financial statements of Biker Group Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the Consolidated Statement of Income and Retained Earnings, Consolidated Balance Sheet, Company Balance Sheet, 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 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 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 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 in line with our responsibilities, to detect material misstatements in respect of irregularities, including fraud. Our audit must be alert to the risk of manipulation of the financial statements and seek to understand the incentives and opportunities for management to achieve this.

We undertake the following procedures to identify and respond to these risks of non-compliance:

-

Understanding the key legal and regulatory frameworks that are applicable to the Company. We communicated

identified laws and regulations throughout the audit team and remained alert to any indications of

non-compliance throughout the audit. We determined the most significant of these to be those concerning

buildings regulations, DVSA and VOSA compliance, environmental legislation, health and safety, employment law, tax and company law.

-

Enquiry of directors and management as to policies and procedures to ensure compliance and any known

instances of non-compliance,

-

Review of board minutes and correspondence with regulators,

-

Enquiry of directors and management as to areas of the financial statements susceptible to fraud and how these

risks are managed,

-

Challenging management on key estimates, assumptions and judgements made in the preparation of the financial statements. These key areas of uncertainty are disclosed in the accounting policies.

-

Identifying and testing unusual journal entries, with a particular focus on manual journal entries.

Through these procedures, we did not become aware of actual or suspected non-compliance.

We planned and performed our audit in accordance with auditing standards but owing to the inherent limitations of procedures required in these areas, there is an unavoidable risk that we may not have detected a material misstatement in the accounts. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve concealment, collusion, forgery, misrepresentations, or override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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.

Kevin Shotton BA BFP FCA (Senior Statutory Auditor)

for and on behalf of Clive Owen LLP

Chartered Accountants

& Statutory Auditors

140 Coniscliffe Road

Darlington

County Durham

DL3 7RT

30 September 2025

TURNOVER

3

33,859,429

28,631,277

Cost of sales

(28,030,989

)

(24,200,178

)

GROSS PROFIT

5,828,440

4,431,099

Administrative expenses

(4,348,577

)

(3,219,615

)

1,479,863

1,211,484

Other operating income

136,416

86,427

OPERATING PROFIT

5

1,616,279

1,297,911

Interest payable and similar expenses

7

(126,837

)

(133,411

)

PROFIT BEFORE TAXATION

1,489,442

1,164,500

Tax on profit

8

(404,883

)

(217,960

)

PROFIT FOR THE FINANCIAL YEAR

1,084,559

946,540

Retained earnings at beginning of year

4,583,976

4,353,157

Dividends

10

(621,854

)

(715,721

)

RETAINED EARNINGS FOR THE GROUP AT END OF YEAR

5,046,681

4,583,976

Profit attributable to:

Owners of the parent

1,084,559

946,540

FIXED ASSETS

Intangible assets

11

21,667

-

Tangible assets

12

6,503,263

6,489,734

Investments

13

-

-

6,524,930

6,489,734

CURRENT ASSETS

Stocks

14

1,125,419

683,651

Debtors

15

4,721,394

3,891,661

Cash at bank and in hand

849,204

793,488

6,696,017

5,368,800

CREDITORS

Amounts falling due within one year

16

(5,957,451

)

(5,073,581

)

NET CURRENT ASSETS

738,566

295,219

TOTAL ASSETS LESS CURRENT LIABILITIES

7,263,496

6,784,953

CREDITORS

Amounts falling due after more than one year

17

(1,461,213

)

(1,482,606

)

PROVISIONS FOR LIABILITIES

21

(750,602

)

(713,371

)

NET ASSETS

5,051,681

4,588,976

CAPITAL AND RESERVES

Called up share capital

22

400

400

Other reserves

23

4,600

4,600

Retained earnings

23

5,046,681

4,583,976

SHAREHOLDERS' FUNDS

5,051,681

4,588,976

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:

B R Biker - Director

FIXED ASSETS

Intangible assets

11

-

-

Tangible assets

12

2,910,289

2,974,523

Investments

13

4,538,051

4,538,051

7,448,340

7,512,574

CURRENT ASSETS

Debtors

15

1,834,340

1,463,917

Cash at bank and in hand

653,129

449,995

2,487,469

1,913,912

CREDITORS

Amounts falling due within one year

16

(3,194,101

)

(2,151,734

)

NET CURRENT LIABILITIES

(706,632

)

(237,822

)

TOTAL ASSETS LESS CURRENT LIABILITIES

6,741,708

7,274,752

CREDITORS

Amounts falling due after more than one year

17

(137,442

)

(77,546

)

PROVISIONS FOR LIABILITIES

21

(48,982

)

(59,498

)

NET ASSETS

6,555,284

7,137,708

CAPITAL AND RESERVES

Called up share capital

22

400

400

Other reserves

23

4,537,151

4,537,151

Retained earnings

23

2,017,733

2,600,157

SHAREHOLDERS' FUNDS

6,555,284

7,137,708

Company's profit for the financial year

39,430

16,362

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:

B R Biker - Director

Cash flows from operating activities

Cash generated from operations

1

2,130,275

2,397,103

Interest paid

(40,204

)

(75,169

)

Interest element of hire purchase payments paid

(86,633

)

(58,242

)

Tax paid

(367,626

)

(164,967

)

Net cash from operating activities

1,635,812

2,098,725

Cash flows from investing activities

Purchase of intangible fixed assets

(32,500

)

-

Purchase of tangible fixed assets

(296,764

)

(406,978

)

Sale of tangible fixed assets

455,804

329,821

Net cash from investing activities

126,540

(77,157

)

Cash flows from financing activities

Loan repayments in year

(164,189

)

(290,731

)

Capital repayments in year

(822,966

)

(547,977

)

Amount withdrawn by directors

(195,827

)

(230,757

)

Equity dividends paid

(621,854

)

(715,721

)

Net cash from financing activities

(1,804,836

)

(1,785,186

)

(Decrease)/increase in cash and cash equivalents

(42,484

)

236,382

Cash and cash equivalents at beginning of year

2

793,488

557,106

Cash and cash equivalents at end of year

2

751,004

793,488

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

2024

2023

£

£

Profit before taxation

1,489,442

1,164,500

Depreciation charges

847,072

567,857

Loss on disposal of fixed assets

43,972

57,870

Finance costs

126,837

133,411

2,507,323

1,923,638

(Increase)/decrease in stocks

(441,768

)

488,812

(Increase)/decrease in trade and other debtors

(724,831

)

804,685

Increase/(decrease) in trade and other creditors

789,551

(820,032

)

Cash generated from operations

2,130,275

2,397,103

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

849,204

793,488

Bank overdrafts

(98,200

)

-

751,004

793,488

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

793,488

557,106

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

793,488

55,716

849,204

Bank overdrafts

-

(98,200

)

(98,200

)

793,488

(42,484

)

751,004

Debt

Finance leases

(1,683,403

)

822,966

(1,052,780

)

(1,913,217

)

Debts falling due

within 1 year

(161,587

)

35,368

-

(126,219

)

Debts falling due

after 1 year

(219,984

)

128,821

-

(91,163

)

(2,064,974

)

987,155

(1,052,780

)

(2,130,599

)

Total

(1,271,486

)

944,671

(1,052,780

)

(1,379,595

)

1.	STATUTORY INFORMATION

Biker Group Holdings Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The consolidated financial statements present the results of Biker Group Holdings Limited and its subsidiaries ("the Group") as if 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 merger accounting method. The consolidated financial statements are prepared in the name of the legal parent, presenting its share capital position, with the acquiree's identifiable assets, liabilities and contingent liabilities showing the new group as if it had always been. On 1 January 2022, Biker Group Holdings Limited became the new parent company of Biker Bespoke Limited. The registered office of this company is Moor Park, Moor Road, Leyburn, North Yorkshire, DL8 5LA. Subsequent to this reorganisation on 1 January 2022 the trade of Biker Bespoke Limited was transferred out to newly created subsidiary companies in the group.

Significant judgements and estimates

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and have the most significant effect on the amounts recognised in the financial statements are as follows:

Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the actual outcome. The key estimates and all the sources of estimation uncertainty that have a significant risk of causing a material adjustment to the current amounts of assets and liabilities within the next financial year are as follows:

Work in progress - Work in progress involves estimating the level of completion of sales orders at the reporting date, and applying a cost of direct materials, labour and overhead rate which is based on a normal level of activity.

Recoverability of debtor and retention balances - The company is subject to risk that its debtors default on payment. At the year end management review the trade debtor and retention lists and assess the likely recovery of these balances based on available information such as post year end cash received and compliance with credit terms. Where a balance is considered to be doubtful, a provision is included.

Turnover

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

Income recognition

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership goods have transferred to the buyer.

Turnover from rendering of services is recognised by reference to the stage of completion.

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.

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.

Leasehold property

-

2% on cost

Freehold property

-

2% on cost

Improvements to property

-

2% on cost

Plant and machinery

-

15% on reducing balance and 10% on reducing balance

Fixtures and fittings

-

20% on reducing balance

Motor vehicles

-

25% on reducing balance

Tangible fixed assets are measured at cost less accumulated depreciation and impairment.

Stocks

Stock is valued at the lower of cost and estimated selling price less costs to sell after making due allowance from obsolete and slow moving items.

Cost includes all direct expenditure and an appropriate proportion of fixed and variable overheads.

Stock is measured on a first in first out basis.

Work in progress

Groundworks and buildings work in progress is measured based on valuation of works completed to the year end date.

Joinery work in progress is valued at the costs of materials used and labour costs incurred relating to the projects to the year end date.

Financial instruments

Basic financial instruments are recognised at amortised cost with changes recognised in profit and loss.

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.

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.