REGISTERED NUMBER: 11849490 (England and Wales)

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements

for the Period 1 August 2024 to 31 August 2025

for

Allmanhall Group Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Consolidated Income Statement

8

Consolidated Other Comprehensive Income

9

Consolidated Balance Sheet

10

Company Balance Sheet

11

Consolidated Statement of Changes in Equity

12

Company Statement of Changes in Equity

13

Consolidated Cash Flow Statement

14

Notes to the Consolidated Cash Flow Statement

15

Notes to the Consolidated Financial Statements

16

DIRECTORS:

E H A Hall

O C A Hall

D Wilson

REGISTERED OFFICE:

West Barn Manor Farm

Bradford Road

Corsham

Wiltshire

SN13 0NY

REGISTERED NUMBER:

11849490 (England and Wales)

The directors present their strategic report of the company and the group for the period 1 August 2024 to 31 August 2025.

REVIEW OF BUSINESS

Allmanhall Group Ltd acts as the parent of Allmanhall Ltd and Nudge Invest Ltd.

Turnover in 24/25 increased by £12.4m from £49.1m in 23/24 to £61.5m in 24/25.

The growth is driven by;

-

The full-year effect of new business wins during the second half of 23/24.

-

Steady growth in the core client sector.

-

A greater focus on new market segments.

-

An increased focus on larger prospects.

-

Investment in the sales and marketing function of the group.

There has been continued investment in personnel to retain existing employees and attract additional headcount, with particular focus on sales and marketing. Ensuring growth can be managed more effectively and efficiently. Despite significant investments in headcount and systems, new business growth has driven a 10.6% improvement in EBIT.

The group has continued its drive to build greater transparency within the supply chain so that clients can understand the environmental impact of food choices.

PRINCIPAL RISKS AND UNCERTAINTIES

Macro political/environmental risk

The cost of food and beverage products is intrinsically linked to global commodity markets. Major events such as the war in Ukraine cause risk through potential upward pricing pressure and limiting product availability. Global warming has increased the likelihood of extreme weather events, negatively impacting production yields, which will also affect both product price and availability. The group mitigates its exposure to these risks by diversifying its supply from different markets and countries of origin.

Legislative and regulatory risk

Continued uncertainty around future governmental tax policy on business, such as the increase in Employers' NI contributions, represents a risk and opportunity, particularly within cost sector markets. In addition to direct tax increases for clients, these changes can accelerate inflation in product costs. These factors can limit the size of future market opportunity through consolidation, whilst also presenting an opportunity, as the groups business model is ideally positioned to help cut costs for its clients.

Governmental CO2 reduction pledges have increased the likelihood of future environmental taxes. With food production accounting for over 25% of global greenhouse gas emissions any taxes, such as a carbon emission tax, would likely impact the group. Within its sector, the group is leading the way in actively reducing its emissions and that of its client and supplier base through direct action and education.

KEY PERFORMANCE INDICATORS

The group uses a range of KPIs to monitor its performance.

2025

2024

Turnover

£61,524,025

£49,127,424

GP Margin

9.59%

12.01%

Overheads (as a % of turnover)

7.18%

5.90%

EBIT (as a % of turnover)

5.41%

6.12%

These indicators are considered to demonstrate our competitiveness and the level of service we offer in the market.

FUTURE DEVELOPMENTS

The group will continue to focus on its core offering. The directors will continue to research opportunities to grow within existing and new market segments. Investment in technology, particularly emerging AI solutions, is a key focus for the group. The directors are keen to take advantage of the efficiencies that AI automation can bring to the group, while recognising the potential threats and risks associated with it.

ON BEHALF OF THE BOARD:

O C A Hall - Director

3 December 2025

The directors present their report with the financial statements of the company and the group for the period 1 August 2024 to 31 August 2025.

DIVIDENDS

The total distribution of dividends for the period ended 31 August 2025 will be £ 1,365,539 .

DIRECTORS

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

E H A Hall

O C A Hall

Other changes in directors holding office are as follows:

D Wilson - appointed 14 February 2025

FINANCIAL INSTRUMENTS

The group's activities expose it to a number of financial risks including credit risk, cash flow risk and liquidity risk.

Credit risk

The group's principal financial assets are bank balances and cash, trade and other receivables, and investments. The group's credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the reconcilability of the cash flows.

The credit risk on liquid funds is limited because the counterpart's are banks with high credit-ratings assigned by international credit-rating agencies.

The group has no significant concentrations of credit risk, with exposure spread over a large number of counterpart's and clients

Cash flow risk

The group is exposed to interest rate risk through the impact of rate changes on interest-bearing borrowings. The group's policy is to obtain the most favourable interest rates available for its borrowings.

The group does not use any derivative instruments to reduce its economic exposure to changes in interest rates and has no significant interest bearing assets.

Liquidity risk

The group maintains liquidity to ensure that sufficient funds are available for ongoing operations and future developments. We are mindful of the risks to our working capital from an unexpected downturn in end user demand and we seek to maintain an appropriate level of cash.

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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, Sumer Auditco Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

O C A Hall - Director

3 December 2025

Opinion

We have audited the financial statements of Allmanhall Group Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 31 August 2025 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31 August 2025 and of the group's profit for the period 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 three, 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:

Based on our understanding of the Group and industry, we identified that the principal risks of non-compliance with laws and regulations related to health and safety, employment law and company legislation, and we considered the extent to which non-compliance might have a material effect on the financial statements of the Group. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and taxation legislation. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to increase revenue or reduce expenditure, and management bias in accounting estimates and judgemental areas of the financial statements. Audit procedures performed by the audit engagement team included:

- Discussions with management, including consideration of known or suspected instances of non-compliance

with laws and regulations and fraud;

- Understanding of management's internal controls designed to prevent and detect irregularities, and fraud;

- Reviewing the Group's legal costs to check for non-compliance with laws and regulations and fraud;

- Review of tax compliance;

- Designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing;

- Testing transactions entered into outside of the normal course of the Group's business; and

- Identifying and testing journal entries, in particular any journal entries with fraud characteristics.

There are inherent limitations in the audit procedures described above and 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. Also, 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 deliberate concealment by, for example, forgery or intentional misrepresentations, or through 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 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.

Martin Longmore (Senior Statutory Auditor)

for and on behalf of Sumer Auditco Limited

Statutory Auditor

Chartered Accountants

Lennox House

3 Pierrepont Street

Bath

Somerset

BA1 1LB

4 December 2025

TURNOVER

5

61,524,025

49,127,424

Cost of sales

53,755,967

43,225,939

GROSS PROFIT

7,768,058

5,901,485

Administrative expenses

4,441,306

2,892,507

OPERATING PROFIT

7

3,326,752

3,008,978

Income from interest in associated undertakings

(5,464

)

45,661

Interest receivable and similar income

5,339

4,995

(125

)

50,656

3,326,627

3,059,634

Interest payable and similar expenses

8

493

21,303

PROFIT BEFORE TAXATION

3,326,134

3,038,331

Tax on profit

9

833,604

751,862

PROFIT FOR THE FINANCIAL PERIOD

2,492,530

2,286,469

Profit attributable to:

Owners of the parent

2,492,530

2,286,469

PROFIT FOR THE PERIOD

2,492,530

2,286,469

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

2,492,530

2,286,469

Total comprehensive income attributable to:

Owners of the parent

2,492,530

2,286,469

FIXED ASSETS

Intangible assets

12

-

-

Tangible assets

13

16,026

37,778

Investments

14

Interest in associate

-

258,959

16,026

296,737

CURRENT ASSETS

Debtors

15

6,994,797

6,435,475

Cash at bank

3,565,537

4,288,328

10,560,334

10,723,803

CREDITORS

Amounts falling due within one year

16

7,294,074

8,859,103

NET CURRENT ASSETS

3,266,260

1,864,700

TOTAL ASSETS LESS CURRENT LIABILITIES

3,282,286

2,161,437

PROVISIONS FOR LIABILITIES

19

2,293

8,435

NET ASSETS

3,279,993

2,153,002

CAPITAL AND RESERVES

Called up share capital

20

1,000

1,000

Share option scheme reserve

21

164,080

164,080

Retained earnings

21

3,114,913

1,987,922

SHAREHOLDERS' FUNDS

3,279,993

2,153,002

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:

E H A Hall - Director

O C A Hall - Director

FIXED ASSETS

Intangible assets

12

-

-

Tangible assets

13

-

-

Investments

14

1,000

1,100

1,000

1,100

CURRENT ASSETS

Debtors

15

14,180

149,900

Cash at bank

150,000

-

164,180

149,900

CREDITORS

Amounts falling due within one year

16

100

-

NET CURRENT ASSETS

164,080

149,900

TOTAL ASSETS LESS CURRENT LIABILITIES

165,080

151,000

CAPITAL AND RESERVES

Called up share capital

20

1,000

1,000

Share option scheme reserve

164,080

164,080

Retained earnings

-

(14,080

)

SHAREHOLDERS' FUNDS

165,080

151,000

Company's profit for the financial year

1,379,619

1,768,002

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

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:

E H A Hall - Director

O C A Hall - Director

Share

Called up

option

share

Retained

scheme

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 August 2023

1,000

1,469,455

164,080

1,634,535

Changes in equity

Dividends

-

(1,768,002

)

-

(1,768,002

)

Total comprehensive income

-

2,286,469

-

2,286,469

Balance at 31 July 2024

1,000

1,987,922

164,080

2,153,002

Changes in equity

Dividends

-

(1,365,539

)

-

(1,365,539

)

Total comprehensive income

-

2,492,530

-

2,492,530

Balance at 31 August 2025

1,000

3,114,913

164,080

3,279,993

Share

Called up

option

share

Retained

scheme

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 August 2023

1,000

(14,080

)

164,080

151,000

Changes in equity

Dividends

-

(1,768,002

)

-

(1,768,002

)

Total comprehensive income

-

1,768,002

-

1,768,002

Balance at 31 July 2024

1,000

(14,080

)

164,080

151,000

Changes in equity

Dividends

-

(1,365,539

)

-

(1,365,539

)

Total comprehensive income

-

1,379,619

-

1,379,619

Balance at 31 August 2025

1,000

-

164,080

165,080

Cash flows from operating activities

Cash generated from operations

1

1,308,279

3,553,265

Interest paid

(493

)

(21,303

)

Tax paid

(1,010,309

)

(763,345

)

Net cash from operating activities

297,477

2,768,617

Cash flows from investing activities

Purchase of tangible fixed assets

(607

)

(13,551

)

Sale of fixed asset investments

-

18,782

Interest received

5,339

4,995

Net cash from investing activities

4,732

10,226

Cash flows from financing activities

Loan repayments in year

150,000

(370,000

)

Equity dividends paid

(1,175,000

)

(1,768,002

)

Net cash from financing activities

(1,025,000

)

(2,138,002

)

(Decrease)/increase in cash and cash equivalents

(722,791

)

640,841

Cash and cash equivalents at beginning of period

2

4,288,328

3,647,487

Cash and cash equivalents at end of period

2

3,565,537

4,288,328

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

Period

1.8.24

to

Year Ended

31.8.25

31.7.24

£

£

Profit before taxation

3,326,134

3,038,331

Depreciation charges

22,358

18,810

Profit on disposal of fixed assets

(86,944

)

(4,693

)

Finance costs

493

21,303

Finance income

125

(50,656

)

3,262,166

3,023,095

Increase in trade and other debtors

(499,887

)

(822,585

)

(Decrease)/increase in trade and other creditors

(1,454,000

)

1,352,755

Cash generated from operations

1,308,279

3,553,265

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:

Period ended 31 August 2025

31.8.25

1.8.24

£

£

Cash and cash equivalents

3,565,537

4,288,328

Year ended 31 July 2024

31.7.24

1.8.23

£

£

Cash and cash equivalents

4,288,328

3,647,487

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.8.24

Cash flow

At 31.8.25

£

£

£

Net cash

Cash at bank

4,288,328

(722,791

)

3,565,537

4,288,328

(722,791

)

3,565,537

Total

4,288,328

(722,791

)

3,565,537

1.	STATUTORY INFORMATION

Allmanhall Group 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.

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

2.	STATEMENT OF COMPLIANCE

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.

3.	ACCOUNTING POLICIES

Summary of significant accounting policies

The financial statements have been prepared under the historical cost convention.

The principal accounting policies applied in the preparation of these financial statements are set out below.

These policies have been consistently applied to all the years presented, unless otherwise stated. The company and group have adopted FRS 102 in these financial statements.

Basis of preparation

These financial statements are prepared on a going concern basis, under the historical cost convention, as

modified by certain financial assets and liabilities measured at fair value.

The preparation of financial statements in conformity with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the company and group's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in note 4.

Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Group (its subsidiaries). Control is achieved where the Group has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. Accounting policies consistent with those of the parent are used and all intra-group transactions, balances, income and expenses are eliminated in full on consolidation.

The consolidated financial statements incorporate the results of business combinations using the purchase method as outlined in the business combination policy in this note. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.

Business combinations

Acquisitions of subsidiaries and businesses are accounted for using the purchase method. The cost of the business combination is measured at the aggregate of the fair values (at the date of exchange) of assets given, liabilities incurred or assumed, and equity instruments issued by the Group in exchange for control of the acquiree, plus costs directly attributable to the business combination.

Any excess of the cost of the business combination over the Group’s interest in the net fair value of the identifiable assets and liabilities is recognised as goodwill.

Associates

An associate is an entity over which the Group has significant influence. Significant influence is the power to participate in, but not to control or jointly control, the financial and operating policy decisions of the investee.

Investments in associates and joint ventures are recognised initially in the consolidated statement of financial position at cost (including transaction costs). Subsequently, they are accounted for using the equity method.

Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable and represents the amount receivable for goods supplied or services rendered, net of returns, discounts and rebates allowed by the company and value added taxes. Turnover includes revenue earned from the provision of food and catering related products, as well as procurement and supply chain management services.

Where the consideration receivable in cash or cash equivalents is deferred, and the arrangement constitutes a financing transaction, the fair value of the consideration is measured as the present value of all future receipts using the inputed rate of interest.

The company recognises revenue when the following performance obligations are satisfied:

- the company has transferred to the buyer the significant risks and rewards of ownership of the goods;

- the company retains neither continuing managerial involvement to the degree associated with ownership nor effective control over the goods sold;

- the amount of revenue can be measured reliably;

- it is probable that the economic benefits associated with the transaction can be measured reliably.

- a corresponding purchase invoice received.

Revenue from the supply of services represents the value of services provided under contracts to the extent that there is a right to consideration and is recorded at the fair value of the consideration received or receivable. Where a contract has only been partially completed at the balance sheet date revenue represents the fair value of the service provided to date based on the stage of completion of the contract activity at the balance sheet date. Where payments are received from a customer in advance of services provided the amounts are recorded as deferred income and included as part of creditors due within one year.

Tangible fixed assets

Tangible assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost

includes the original purchase price, costs directly attributable to bringing the asset to its working condition for its intended use, dismantling and restoration costs and borrowing costs capitalised.

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.

Fixtures and fittings - 20% on straight line basis

Computer equipment - 33% on straight line basis

The assets' residual values and useful lives are reviewed, and adjusted, if appropriate, at the end of each reporting period. The effect of any changes is accounted for prospectively.

Intangible assets

Goodwill

Goodwill represents the difference between the cost of a business combination and the Group’s interest in the fair value of the identifiable assets and liabilities of the acquiree at the acquisition date. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses (which are not reversed).

Goodwill is amortised on a straight-line basis over its useful economic life. This is assessed individually for each acquisition taking into account the period over which the Group expects to realise the synergies from the combination.

Impairment of assets

Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance

sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as

described below:

Non-financial assets

At each balance sheet date non-financial assets not carried at fair value are assessed to determine whether

there is an indication that the asset may be impaired. If there is such an indication the recoverable amount of the asset is compared to the carrying amount of the asset.

The recoverable amount of the asset is the higher of the fair value less costs to sell and value in use. Value is use is defined as the present value of the future cash flows before interest and tax obtainable as a result of the asset's continued use. These cash flows are discounted using a pre-tax discount rate that represents the current market risk-free rate and risks inherent in the asset.

If the recoverable amount of the asset is estimated to be lower than the carrying amount, the carrying amount is reduced to its recoverable amount. An impairment loss is recognised in the profit and loss account, unless the asset has been revalued when the amount is recognised in other comprehensive income to the extent of any previously recognised revaluation. Thereafter any excess is recognised in the profit or loss account.

If an impairment loss is subsequently reversed, the carrying amount of the asset (or asset's cash generating

unit) is increased to the revised estimate of its recoverable amount, but only to the extent that the revised

carrying amount does not exceed the carrying amount that would have been determined (net of depreciation or amortisation) had no impairment loss been recognised in prior periods. A reversal of an impairment loss is

recognised in the profit and loss account.

Financial assets

For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset's carrying amount and the present value of estimated future cash flows, discounted at the financial asset's original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset's

carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the balance sheet date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an

event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal.

An impairment loss is reversed on an individual impaired financial asset to the extent that the revised