REGISTERED NUMBER: 04030203 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

TUCKER FRENCH LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Independent Auditors' Report

6

Statement of Comprehensive Income

10

Balance Sheet

12

Statement of Changes in Equity

13

Cash Flow Statement

14

Notes to the Cash Flow Statement

15

Notes to the Financial Statements

17

DIRECTORS:

Mr M A French

Mr A B Tucker

Mr R E Petty

SECRETARY:

Mr R E Petty

REGISTERED OFFICE:

Unit 4 Grovelands

Boundary Way

Hemel Hempstead

Hertfordshire

HP2 7TE

REGISTERED NUMBER:

04030203 (England and Wales)

AUDITORS:

Kings CAP Ltd

Statutory Auditor

4 Grovelands

Boundary Way

Hemel Hempstead

Hertfordshire

HP2 7TE

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

REVIEW OF BUSINESS

The company's principal activity is that of plumbing and heating merchants.

Turnover achieved in the year amounted to £18,765,438 (2023: £21,560,335). Profit before taxation on continuing operations amounted to £125,135 (2023: £76,384).

Throughout 2024 the Company has experienced pressure to its trading margins as a result of the downturn in the general economy, the impact of which is industry wide. Management have continued with their strategy of reviewing their operational divisions; being branches, showrooms and online platforms, on a quarterly basis to assess the performance of each division and its contribution to the company. Management have also focused on reducing stock levels and have continued to reduce stock levels in 2025 to protect against cashflow pressures and see the return of great profitability.

These strategic reviews are integral to the future of the business. They consider the divisions contribution to the company financially, operationally and strategically by considering changing consumer habits, the economy and the needs of the existing loyal customer base. Management will continue to review their quarterly performance at a divisional level to aim to return to greater profitability as experienced in less economically challenging times.

PRINCIPAL RISKS AND UNCERTAINTIES

The company's trading activities expose it to a certain level of financial risk, which includes economic, price, credit and liquidity risks. The board have procedures in place to regularly review the potential risks that the company may face.

Liquidity Risk

The directors consider that exposure to liquidity risk is minimised as the existing reserves provide adequate collateral if the trading activity were to decline. The directors are satisfied that the current level of trading activity will ensure that the company's cash flow requirements are met.

Credit Risk

The company's principal financial instruments are stock, trade debtors, cash, trade creditors and hire purchase liabilities. The company's credit risk is mainly due to its trade debtors. The company has credit control procedures in place to manage this risk; the directors set credit limits for new customers and continuously review those set for existing customers, based on third party credit reports and trading history. The company also has insurance in place to mitigate the effect of bad debts.

Price Risk and Competition

The company is exposed to increases in the price of products, any such increase could put pressure on the gross profit margin. In order to minimise this risk the company is a member of a buying group which enables the company to acquire stock at competitive rates. As well as providing good quality products at the best possible prices the company focuses on offering a premier customer service.

Economic Risk

The company's trading activity is derived from the disposable income available in the south east of England, a decline in the UK economy could have an impact on the turnover levels generated in the business. The company's core customers are smaller independent traders and the company is not dependent on a limited customer base. This policy has resulted in sustainable trade throughout previous economic downturns, and the directors are confident this policy continues to minimise the exposure to economic risk.

DEVELOPMENT AND PERFORMANCE

Our unique selling point (USP) is our ability to hold sufficient stock levels in excess of that of our competitors allowing us to have as many stock-keeping units (SKU's) available for our customers as required. This combined with our aim to assist each customer, being sourcing bespoke products or our extended opening hours for custom convenience results in a retained and growing customer base.

We continue to invest in our staff, with each branch being managed by a skilled and experienced individual. Our staff are representing our brand and products and we encourage relationships to be built with customers and insist on a good working environment.

KEY PERFORMANCE INDICATORS

The gross profit margin achieved in the year was 24%, 1% higher than achieved in 2023. The directors continuously monitor the gross profit margin to ensure it remains at a competitive level as the business continues to grow.

ON BEHALF OF THE BOARD:

Mr R E Petty - Director

31 October 2025

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of plumbing and heating merchants.

DIVIDENDS

No dividends were declared during the year (2023: £565,000).

FUTURE DEVELOPMENTS

The directors remain confident about the future prospects for the business. The business model continues to evolve, enhancing its multi-channel convenience credentials.

During 2024 the company continued to enhanced its Click & Collect capabilities resulting in Quick Delivery options and improved the services to existing customers.

EVENTS SINCE THE END OF THE YEAR

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

DIRECTORS

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

Mr M A French

Mr A B Tucker

Mr R E Petty

POLITICAL DONATIONS AND EXPENDITURE

The company made charitable donations during the year amounting to £50 (2023 - £350). There were no political contributions.

GOING CONCERN

The directors have considered current and forecast market conditions, and the working capital requirements of the Company. The directors consider the company's position and funding requirements are adequately supported by their existing activities and the budgets, forecasts and long term business plan appropriately support the going concern assumption. The Directors are of the opinion that the Company has adequate resources to continue its operations for the foreseeable future and therefore they continue to adopt the going concern basis in preparing these financial statements.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

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

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Kings CAP Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr R E Petty - Director

31 October 2025

Opinion

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

In our opinion the financial statements:

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

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Auditors' Report thereon.

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

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

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

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

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

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report 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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations was to ensure the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations.

We obtained an understanding of the legal and regulatory frameworks that are applicable to the entity by way of discussions with the directors and from our commercial knowledge and experience in the plumbing merchant sector. We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, employment and health and safety legislation.

We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence and identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls we performed analytical procedures to identify any unusual or unexpected relationships; tested journal entries to identify unusual transactions assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and investigated the rationale behind significant or unusual transactions.

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

- agreeing financial statement disclosures to underlying supporting documentation;

- enquiring of management as to actual and potential litigation and claims; and

- reviewing correspondence with HMRC, relevant regulators, and the company's legal advisors.

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 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.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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 Auditors' Report.

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 an Auditors' Report 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.

Sara Brown (Senior Statutory Auditor)

for and on behalf of Kings CAP Ltd

Statutory Auditor

4 Grovelands

Boundary Way

Hemel Hempstead

Hertfordshire

HP2 7TE

31 October 2025

TURNOVER

4

18,765,438

-

18,765,438

Cost of sales

(14,175,968

)

-

(14,175,968

)

GROSS PROFIT

4,589,470

-

4,589,470

Administrative expenses

(4,472,485

)

-

(4,472,485

)

116,985

-

116,985

Other operating income

20,758

-

20,758

OPERATING PROFIT

6

137,743

-

137,743

Interest receivable and similar income

621

-

621

Interest payable and similar expenses

7

(13,229

)

-

(13,229

)

PROFIT BEFORE TAXATION

125,135

-

125,135

Tax on profit

8

(62,113

)

-

(62,113

)

PROFIT FOR THE FINANCIAL YEAR

63,022

-

63,022

OTHER COMPREHENSIVE INCOME

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

63,022

TURNOVER

4

21,540,911

19,424

21,560,335

Cost of sales

(16,499,889

)

(15,647

)

(16,515,536

)

GROSS PROFIT

5,041,022

3,777

5,044,799

Administrative expenses

(4,950,700

)

(70,693

)

(5,021,393

)

OPERATING PROFIT/(LOSS)

6

90,322

(66,916

)

23,406

Interest payable and similar expenses

7

(13,938

)

-

(13,938

)

PROFIT/(LOSS) BEFORE TAXATION

76,384

(66,916

)

9,468

Tax on profit/(loss)

8

(11,908

)

12,714

806

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

64,476

(54,202

)

10,274

OTHER COMPREHENSIVE INCOME

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

10,274

FIXED ASSETS

Intangible assets

10

99

121

Tangible assets

11

790,257

772,692

Investments

12

1,300

1,300

791,656

774,113

CURRENT ASSETS

Stocks

13

3,564,429

4,682,521

Debtors

14

2,977,095

3,020,939

Cash at bank and in hand

600,328

322,575

7,141,852

8,026,035

CREDITORS

Amounts falling due within one year

15

4,573,275

5,515,288

NET CURRENT ASSETS

2,568,577

2,510,747

TOTAL ASSETS LESS CURRENT LIABILITIES

3,360,233

3,284,860

CREDITORS

Amounts falling due after more than one year

16

(80,746

)

(103,877

)

PROVISIONS FOR LIABILITIES

19

(182,294

)

(146,812

)

NET ASSETS

3,097,193

3,034,171

CAPITAL AND RESERVES

Called up share capital

20

98,000

98,000

Capital redemption reserve

21

(78,000

)

(78,000

)

Other reserves

21

9,300

9,300

Retained earnings

21

3,067,893

3,004,871

SHAREHOLDERS' FUNDS

3,097,193

3,034,171

The financial statements were approved by the Board of Directors and authorised for issue on 31 October 2025 and were signed on its behalf by:

Mr R E Petty - Director

Called up

Capital

share

Retained

redemption

Other

Total

capital

earnings

reserve

reserves

equity

£

£

£

£

£

Balance at 1 January 2023

98,000

3,559,597

(78,000

)

9,300

3,588,897

Changes in equity

Dividends

-

(565,000

)

-

-

(565,000

)

Total comprehensive income

-

10,274

-

-

10,274

Balance at 31 December 2023

98,000

3,004,871

(78,000

)

9,300

3,034,171

Changes in equity

Total comprehensive income

-

63,022

-

-

63,022

Balance at 31 December 2024

98,000

3,067,893

(78,000

)

9,300

3,097,193

Cash flows from operating activities

Cash generated from operations

1

546,246

858,118

Interest paid

-

(1,661

)

Interest element of hire purchase payments paid

(13,229

)

(12,277

)

Tax paid

11,431

(130,790

)

Net cash from operating activities

544,448

713,390

Cash flows from investing activities

Purchase of tangible fixed assets

(203,329

)

(140,178

)

Sale of tangible fixed assets

57,250

102,895

Interest received

621

-

Net cash from investing activities

(145,458

)

(37,283

)

Cash flows from financing activities

Capital repayments in year

(27,178

)

(16,417

)

Equity dividends paid

-

(565,000

)

Net cash from financing activities

(27,178

)

(581,417

)

Increase in cash and cash equivalents

371,812

94,690

Cash and cash equivalents at beginning of year

2

(775,075

)

(869,765

)

Cash and cash equivalents at end of year

2

(403,263

)

(775,075

)

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

31.12.24

31.12.23

£

£

Profit before taxation

125,135

9,468

Depreciation charges

108,145

110,885

Loss/(profit) on disposal of fixed assets

20,391

(35,431

)

Finance costs

13,229

13,938

Finance income

(621

)

-

266,279

98,860

Decrease in stocks

1,118,092

194,767

Decrease/(increase) in trade and other debtors

32,413

(80,625

)

(Decrease)/increase in trade and other creditors

(870,538

)

645,116

Cash generated from operations

546,246

858,118

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

600,328

322,575

Bank overdrafts

(1,003,591

)

(1,097,650

)

(403,263

)

(775,075

)

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

322,575

159,354

Bank overdrafts

(1,097,650

)

(1,029,119

)

(775,075

)

(869,765

)

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

322,575

277,753

600,328

Bank overdrafts

(1,097,650

)

94,059

(1,003,591

)

(775,075

)

371,812

(403,263

)

Debt

Finance leases

(201,180

)

27,178

(174,002

)

(201,180

)

27,178

(174,002

)

Total

(976,255

)

398,990

(577,265

)

1.	STATUTORY INFORMATION

Tucker French Limited is a private company, limited by shares, registered in England and Wales. The registered office is at Unit 4 Grovelands, Boundary Way, Hemel Hempstead, Hertfordshire, HP2 7TE. The head office and principal trading address of the company is Unit 1 Epsom Business Park, Kiln Lane, Epsom, Surrey, KT17 1JF.

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 directors have considered current and forecast market conditions, and the working capital requirements of the Company. The directors consider the company's position and funding requirements are adequately supported by their existing activities and the budgets, forecasts and long term business plan appropriately support the going concern assumption. The Directors are of the opinion that the Company has adequate resources to continue its operations for the foreseeable future and therefore they continue to adopt the going concern basis in preparing these financial statements.

Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Turnover represents the fair value of consideration in respect of the supply of plumbing and heating goods.

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

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 ten years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Short leasehold

-

at varying rates on cost

Plant and machinery

-

15% on reducing balance

Fixtures and fittings

-

10% on reducing balance

Motor vehicles

-

12.5% on reducing balance

Computer equipment

-

15% on reducing balance

At each reporting end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss.

Stocks

Stocks are stated at the lower of replacement cost and estimated selling price less costs to complete and sell. At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Financial instruments

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

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

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities

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

Basic financial liabilities

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

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

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

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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