REGISTERED NUMBER: 02412526 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

FOR

BEESLEY & FILDES LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

10

Statement of Financial Position

11

Statement of Changes in Equity

12

Statement of Cash Flows

13

Notes to the Statement of Cash Flows

14

Notes to the Financial Statements

15

DIRECTORS:

Mr J F Beesley

Mr P Beesley

Mrs J S Beesley

Mrs J Beesley

Mr L A Davies

Mr J M Beesley

SECRETARY:

Mr J M Beesley

REGISTERED OFFICE:

Wilson Road

Huyton

Merseyside

L36 6AF

REGISTERED NUMBER:

02412526 (England and Wales)

AUDITORS:

Fairhurst Audit Services Ltd

Statutory Auditor

Chartered Accountants

Douglas Bank House

Wigan Lane

Wigan

Lancashire

WN1 2TB

BANKERS:

HSBC

Liverpool Corporate Centre

9th Floor

Royal Liver Building

Pier Head

Liverpool

L3 1HU

SOLICITORS:

Hill Dickinson LLP

No.1 St. Paul's Square

Liverpool

L3 9SJ

The directors present their strategic report for the year ended 31 March 2025.

REVIEW OF BUSINESS

The company primarily operates as a builders and timber merchant throughout the North West of England, employing more than 250 staff over ten sites. There have been no changes to the activities in the year under review.

The challenging market conditions referenced last year continued throughout FY25. However, despite closing an underperforming branch (Wigan - Jan-24) which had a turnover of £2.1m during FY24, the company turnover was increased to £48.8m during FY25 (FY24: £46.5m). Unfortunately, due to a highly competitive environment and as merchants battled for a share of a smaller market, gross profit margin decreased slightly (0.5%) in comparison with the prior year.

Inflationary pressures remain, this together with statutory increases such as the National Living Wage (+9.79%) as well as a reduction in the main age band from April-24, resulted in our cost of overheads increasing. These increases were mitigated somewhat by prudently managing our cost base by improving our efficiencies wherever and whenever possible.

Management continues to focus on stock availability to satisfy customers' demands and manage the risk of losing business to competitors.

Beesley & Fildes Ltd maintains its position as one of the leading independent merchants in the area.

PRINCIPAL RISKS AND UNCERTAINTIES

The builders' merchants sector throughout the North West remains highly competitive. The company seeks to manage the risk of losing business to competitors by delivering outstanding levels of customer service and enhancing relationships. The company looks to improve profitability through management of its cost base and meticulous margin control.

Whilst the current economic conditions are tough, the business continues to adapt and has previously shown how resilient it can be when faced with the most challenging of circumstances. Using long standing relationships with suppliers has been key to help mitigate the potential disruption of shortages whilst also evaluating future demands to ensure the supply chain is adequate to meet such demands.

The company remains committed to attracting, developing, and retaining a motivated workforce. A significant effort has been made to ensure the business has an adequate number of staff with sufficient experience and skills to meet the standards that we expect.

Management remains cautious and are watchful of the impacts of governmental policies. The business can only influence factors within its control and directors feel that the business is well placed to face adverse trading conditions due to its cash position, wide customer base and hands-on management.

SECTION 172(1) STATEMENT

Under the Companies Act 2006 s172, the directors of the company have a duty to promote the success of the company for the benefits of the members as a whole.

The directors of the company consider the key stakeholders of the business to be its customers, suppliers, and employees. The company has a number of long-standing relationships with customers and suppliers which the directors consider key to the company's continued success. The directors and employees put great emphasis on continuing to foster these relationships with a view to ensuring the long-term success of the business.

When making decisions, the directors consider the potential long-term implications of those decisions. Long-term stability and growth rather than short-term gain ensures that decisions focus on positive benefit for the company and its stakeholders. This is a core component of our strategic planning process.

The company continually reviews its financing facilities to ensure they are adequate for its needs.

FINANCIAL RISK MANAGEMENT

The company is exposed to financial risks that include the effects of the economy, cost-of-living, inflation, interest rates and credit risk. A robust and professionally managed credit control function together with trade credit insurance which covers most of the company's debtors, shields the business from potential losses due to customer failures, whilst also enabling the company to prosper from granting greater limits. Levels of debt finance and the related financing costs are continually monitored.

CARBON REPORTING

The Company is required to disclose greenhouse gas emissions ("GHGs") from its energy consumed under three scopes - combustion of gas, purchase of electricity for own use and consumption of fuel. These figures are presented below:

2025

2024

GHGs

kWh

GHGs

kWh

Tonnes

Tonnes

Gas

92.86

503,108

91.45

500,991

Biomass

3.34

290,000

5.8

512,397

Electricity

137.79

787,849

163.08

795,805

Transportation

1,416.41

5,877,717

1,494.33

6,334,598

Total

1,650.40

7,458,674

1,754.66

8,143,791

Average UK headcount

262

262

273

273

Usage per person per year

6.30

28,468

6.43

29,831

Calculation methodology

Consumption analysis from the Company's energy suppliers for usage of gas and electricity was used and converted using the UK Government GHG Conversion Factors for Company Reporting.

Transport consumption usage data for both commercial vehicles and cars was calculated using diesel expenditure and using an average diesel price of 114.25 pence per litre for the financial year (2024: 119.30 pence per litre). Litres of diesel was then converted using the UK Government GHG Conversion Factors for Company Reporting.

ON BEHALF OF THE BOARD:

Mr J M Beesley - Secretary

2 December 2025

The directors present their report with the financial statements of the company for the year ended 31 March 2025.

DIVIDENDS

The total distribution of dividends for the year ended 31 March 2025 will be £293,911.

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 set out in the table below have held office during the whole of the period from 1 April 2024 to the date of this report unless otherwise stated.

Other changes in directors holding office are as follows:

Mr S R Grant - appointed 1/2/2025

Mr S R Grant ceased to be a director after 31 March 2025 but prior to the date of this report.

The directors shown below were in office at 31 March 2025 but did not hold any interest in the following:

Ordinary shares of £1 each

A Ordinary shares of £1 each

B Ordinary shares of £1 each

at 1 April 2024 (or date of appointment if later) or 31 March 2025.

Mr J F Beesley

Mr P Beesley

Mrs J S Beesley

Mrs J Beesley

Mr L A Davies

Mr J M Beesley

Mr S R Grant

BUSINESS RELATIONSHIPS

Business relationships are discussed within the Strategic Report on page 2, in accordance with the provisions of s172(1)(c) of the Companies Act 2006.

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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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;

-	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 transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Fairhurst Audit Services Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr J M Beesley - Secretary

2 December 2025

Opinion

We have audited the financial statements of Beesley & Fildes Limited (the 'company') for the year ended 31 March 2025 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 March 2025 and of its 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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on pages four and 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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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

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

In identifying and addressing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

-

The engagement partner ensured that 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 laws and regulations that affect the company, focusing on those that had a direct effect on the financial statements or that had a fundamental effect on its operations. Key laws and regulations that we have identified included Companies Act 2006, Tax legislation, data protection, employment, environmental and health & safety legislation.

-

We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management, reviewing minutes of meetings and inspecting legal correspondence.

In assessing the susceptibility of the company's financial statements to material misstatement, including obtaining and understanding of how fraud might occur;

-

We gained an understanding of the controls that management have in place to prevent and detect fraud. We enquired of management about any instances of fraud that had taken place during the year.

To address the risk of fraud through management bias and override of controls;

-

We performed analytical procedures to identify any unusual or unexpected relationships;

-

We tested journal entries to identify unusual transactions; and

-

We assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias.

Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with 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.

Louise Webster BSc BFP ACA (Senior Statutory Auditor)

for and on behalf of Fairhurst Audit Services Ltd

Statutory Auditor

Chartered Accountants

Douglas Bank House

Wigan Lane

Wigan

Lancashire

WN1 2TB

3 December 2025

TURNOVER

48,808,158

46,451,040

Cost of sales

40,835,220

38,635,679

GROSS PROFIT

7,972,938

7,815,361

Distribution costs

3,371,961

3,560,289

Administrative expenses

5,360,680

5,131,846

8,732,641

8,692,135

(759,703

)

(876,774

)

Other operating income

15,320

11,807

OPERATING LOSS

4

(744,383

)

(864,967

)

Interest receivable and similar income

39,914

26,742

(704,469

)

(838,225

)

Interest payable and similar expenses

5

346,738

379,835

LOSS BEFORE TAXATION

(1,051,207

)

(1,218,060

)

Tax on loss

6

(237,017

)

(37,777

)

LOSS FOR THE FINANCIAL YEAR

(814,190

)

(1,180,283

)

OTHER COMPREHENSIVE INCOME

Excess depreciation on revalued assets

transferred to profit and loss reserve

159,745

94,129

Excess depreciation on revalued assets

transferred from revaluation reserve

(159,745

)

(94,129

)

Revaluation of Freehold Property

-

4,025,628

Income tax relating to components of other comprehensive income

-

(464,750

)

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

-

3,560,878

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(814,190

)

2,380,595

FIXED ASSETS

Intangible assets

8

-

-

Tangible assets

9

18,242,381

19,541,165

Investments

10

20,055

20,055

18,262,436

19,561,220

CURRENT ASSETS

Stocks

11

7,630,842

7,679,644

Debtors

12

4,399,316

4,160,328

Cash at bank and in hand

2,791,039

3,098,456

14,821,197

14,938,428

CREDITORS

Amounts falling due within one year

13

8,725,287

7,688,921

NET CURRENT ASSETS

6,095,910

7,249,507

TOTAL ASSETS LESS CURRENT LIABILITIES

24,358,346

26,810,727

CREDITORS

Amounts falling due after more than one year

14

(3,709,482

)

(4,816,745

)

PROVISIONS FOR LIABILITIES

18

(1,183,834

)

(1,420,851

)

NET ASSETS

19,465,030

20,573,131

CAPITAL AND RESERVES

Called up share capital

19

100

100

Revaluation reserve

20

8,635,353

8,795,098

Retained earnings

20

10,829,577

11,777,933

SHAREHOLDERS' FUNDS

19,465,030

20,573,131

The financial statements were approved by the Board of Directors and authorised for issue on 3 December 2025 and were signed on its behalf by:

Mr J F Beesley - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 April 2023

100

13,148,087

5,328,349

18,476,536

Changes in equity

Dividends

-

(284,000

)

-

(284,000

)

Total comprehensive income

-

(1,086,154

)

3,466,749

2,380,595

Balance at 31 March 2024

100

11,777,933

8,795,098

20,573,131

Changes in equity

Dividends

-

(293,911

)

-

(293,911

)

Total comprehensive income

-

(654,445

)

(159,745

)

(814,190

)

Balance at 31 March 2025

100

10,829,577

8,635,353

19,465,030

Cash flows from operating activities

Cash generated from operations

1

1,318,582

3,013,303

Interest paid

(251,272

)

(288,220

)

Interest element of hire purchase payments paid

(95,466

)

(91,615

)

Tax paid

(8,525

)

174,865

Net cash from operating activities

963,319

2,808,333

Cash flows from investing activities

Purchase of tangible fixed assets

(412,363

)

(638,194

)

Sale of tangible fixed assets

47,950

29,700

Interest received

39,914

26,742

Net cash from investing activities

(324,499

)

(581,752

)

Cash flows from financing activities

Loan repayments in year

(477,371

)

(477,371

)

Capital repayments in year

(903,768

)

(279,942

)

Amount introduced by directors

1,034,000

284,000

Amount withdrawn by directors

(305,187

)

(990,255

)

Equity dividends paid

(293,911

)

(284,000

)

Net cash from financing activities

(946,237

)

(1,747,568

)

(Decrease)/increase in cash and cash equivalents

(307,417

)

479,013

Cash and cash equivalents at beginning of year

2

3,098,456

2,619,443

Cash and cash equivalents at end of year

2

2,791,039

3,098,456

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

2025

2024

£

£

Loss before taxation

(1,051,207

)

(1,218,060

)

Depreciation charges

1,642,685

1,952,635

Loss/(profit) on disposal of fixed assets

20,512

(5,520

)

Finance costs

346,738

379,835

Finance income

(39,914

)

(26,742

)

918,814

1,082,148

Decrease in stocks

48,802

568,071

(Increase)/decrease in trade and other debtors

(913,984

)

3,004,366

Increase/(decrease) in trade and other creditors

1,264,950

(1,641,282

)

Cash generated from operations

1,318,582

3,013,303

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 March 2025

31/3/25

1/4/24

£

£

Cash and cash equivalents

2,791,039

3,098,456

Year ended 31 March 2024

31/3/24

1/4/23

£

£

Cash and cash equivalents

3,098,456

2,619,443

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1/4/24

Cash flow

At 31/3/25

£

£

£

Net cash

Cash at bank and in hand

3,098,456

(307,417

)

2,791,039

3,098,456

(307,417

)

2,791,039

Debt

Finance leases

(2,474,952

)

903,768

(1,571,184

)

Debts falling due within 1 year

(477,371

)

86,588

(390,783

)

Debts falling due after 1 year

(3,245,361

)

390,782

(2,854,579

)

(6,197,684

)

1,381,138

(4,816,546

)

Total

(3,099,228

)

1,073,721

(2,025,507

)

1.	STATUTORY INFORMATION

Beesley & Fildes Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with applicable United Kingdom accounting standards, including Financial Reporting Standard 102 - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' ('FRS 102'), and with the Companies Act 2006.

The financial statements have been prepared on the historical cost basis except for the modification to a fair value basis for certain financial instruments as specified in the accounting policies below.

Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence and meet its debts for the foreseeable future not limited to a period of 12 months from the signing of these accounts. The company therefore continues to adopt the going concern basis in preparing the financial statements.

Preparation of consolidated financial statements

The financial statements contain information about Beesley & Fildes Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company has taken the option under Section 405(2) of the Companies Act 2006 not to prepare consolidated financial statements.

Significant judgements and estimates

Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made include:

Depreciation and residual values

The directors have reviewed the asset lives and associated residual values of all fixed asset classes, and have concluded that the asset lives and residual values are appropriate.

Turnover

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

Goodwill

Goodwill, being the amount paid in connection with the acquisition of businesses in 2004, 2005 and 2008, is being amortised evenly over its estimated useful life of ten years.

Goodwill purchased in 2016 is being amortised evenly over its useful economic life of five years.

Goodwill purchased in 2019 is being amortised evenly over its useful economic life of five 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.

Freehold property

-

4% on cost

Plant and machinery

-

15% on reducing balance

Fixtures and fittings

-

33% on cost and 20% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

33% on cost

Stocks

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

Financial instruments

The following assets and liabilities are classed as financial instruments- trade debtors, related party loans, directors' loans, trade creditors and bank loans.

Trade debtors are measured at transaction price, less any impairment.

Directors' loans ( being repayable on demand) are measured at the undiscounted amount of the cash or other consideration expected to be paid or received.

Trade creditors are measured at transaction price.

Other loans including related party loans are initially measured at fair value and are measured subsequently 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 statement of financial position date.

Deferred tax

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

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

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

Hire purchase and leasing commitments

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

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

Pension costs and other post-retirement benefits

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

Investments

Investments in unlisted companies are stated at their estimated market value. Where an investment is classified as a subsidiary, it is valued at its net asset value.