REGISTERED NUMBER: 14886929 (England and Wales)

Group Strategic Report,

Report of the Director and

Consolidated Financial Statements

for the Year Ended 31 December 2024

for

Oakwrights Holding Ltd

Page

Company Information

1

Group Strategic Report

2

Report of the Director

4

Report of the Independent Auditors

5

Consolidated Income Statement

9

Consolidated Other Comprehensive Income

10

Consolidated Balance Sheet

11

Company Balance Sheet

12

Consolidated Statement of Changes in Equity

13

Company Statement of Changes in Equity

14

Consolidated Cash Flow Statement

15

Notes to the Consolidated Cash Flow Statement

16

Notes to the Consolidated Financial Statements

18

DIRECTOR:

T J Crump

REGISTERED OFFICE:

The Lakes

Swainshill

Hereford

Herefordshire

HR4 7PU

REGISTERED NUMBER:

14886929 (England and Wales)

AUDITORS:

Thorne Widgery Accountancy Ltd

Chartered Accountants

Statutory Auditors

2 Wyevale Business Park

Kings Acre

Hereford

Herefordshire

HR4 7BS

The director presents his strategic report of the company and the group for the year ended 31 December 2024.

Oakwrights Holding continues to research and develop opportunities in the sustainable construction market growing outside of solely oak framed self-build into broader timber framing, construction, architecture, development, sustainable building materials as well as exploring industry disruptive business models.

In addition to T J Crump Oakwrights and Oakwrights Developments, the group created AeroBarrier UK solving air leakage for new and existing properties.

With the imminent announcement of the Future home's standard accompanied with the Labour government's focus to increase construction output, Oakwrights Holding Ltd is focused on embracing the opportunities in the industry to grow its portfolio diversifying within the construction industry.

Industry Overview

The demand for sustainable, high-quality construction is on the rise. Oak frame buildings are increasingly popular due to their aesthetic appeal, sustainability, and energy efficiency. The trend toward eco-friendly housing solutions and unique architectural designs presents significant opportunities for growth.

Target Market

Our primary customers include:

-

Private homeowners seeking bespoke building solutions.

-

Property developers looking for development plots.

-

Investors interested in small-scale residential projects.

Market Trends

-

Growing emphasis on sustainability and eco-friendliness in construction.

-

Increased interest in custom-built homes due to a shift in consumer preferences.

-

Regulatory support for green building practices.

Key Competitors

1.

Traditional Construction Firms: Offer a broader range of building styles but lack specialization in oak frame buildings.

2.

Modular Home Builders: Focus on affordability and speed but may compromise on customizability and quality.

3.

Local Craftsmen: Provide bespoke services but often lack scalability and marketing reach.

Competitive Advantages

-

Specialization in oak frame construction, which sets us apart from generalists.

-

High-quality craftsmanship that appeals to discerning customers.

-

Strong relationships with suppliers and local councils, facilitating smoother project execution.

Strategic Objectives

1.

Expand Market Reach: Increase visibility and access to new customer segments through targeted marketing and strategic partnerships.

2.

Increase Operational Efficiency: Streamline production processes and supply chain management to reduce costs and improve delivery timelines.

3.

Sustainability Leadership: Position Oakwrights Holding Ltd as a leader in sustainable building practices.

Marketing Strategy

-

Digital Marketing: Invest in SEO and social media campaigns to reach potential customers. Showcase completed projects and customer testimonials to build trust.

-

Partnerships: Collaborate with regional architects and real estate agents to create referral networks.

-

Trade Shows and Exhibitions: Participate in industry events to showcase our expertise and expand brand awareness.

Product Development

-

Innovative Designs: Regularly update our portfolio with new designs and features that incorporate sustainable materials and technologies.

-

Customization Options: Offer a range of customizable features that allow clients to tailor their projects to their specific needs.

Operational Improvements

-

Lean Manufacturing Techniques: Implement lean practices in production to minimize waste and improve efficiency.

-

Supplier Relationships: Strengthen partnerships with suppliers for better pricing and reliable sourcing of high-quality materials.

Sustainability Initiatives

-

Certifications: Pursue relevant green building certifications to enhance our credibility and attract eco-conscious customers.

-

Community Engagement: Promote local sourcing and community involvement to build a positive brand image.

Financial Projections

-

Revenue Growth: Target a 15% annual increase in revenue over the next three years through expanded offerings and market reach.

-

Cost Reduction: Aim for a 10% reduction in operational costs by enhancing efficiency and renegotiating supplier contracts.

-

Profit Margins: Maintain a net profit margin of at least 5% through careful project management and cost control.

Conclusion

Oakwrights Holding Ltd stands at the forefront of a growing market for self-build and eco conscious building. By capitalizing on our competitive advantages, enhancing our product offerings, and implementing strategic marketing initiatives, we can achieve sustainable growth and solidify our position as a leader in the industry. Continued focus on operational efficiency and sustainability will further enhance our market appeal and profitability.

ON BEHALF OF THE BOARD:

T J Crump - Director

10 December 2025

The director presents his report with the financial statements of the company and the group for the year ended 31 December 2024.

DIVIDENDS

The total distribution of dividends for the year ended 31 December 2024 will be £ 40,000 .

DIRECTOR

T J Crump held office during the whole of the period from 1 January 2024 to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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 director is 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 he 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, Thorne Widgery Accountancy Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

T J Crump - Director

10 December 2025

Opinion

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

In our opinion the financial statements:

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

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

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

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's 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 director with respect to going concern are described in the relevant sections of this report.

We would like to draw your attention to the fact that during the year ended 31 December 2024 Oakwrights Developments Ltd, whose results are consolidated into these financial statements, had an overdrawn balance sheet position of £60,645 overdrawn (2023: £30,472), so is reliant on the parent company to support it for the foreseeable future. Refer to note 1 accounting policies - going concern, which explains how the Company is addressing the overdrawn position. If these actions were to prove to be unsuccessful, this may indicate that a material uncertainty exists and may cast doubt on the Company's ability to continue as a going concern.

Other information

The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, 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 Director 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 Director 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 Director.

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 director's remuneration specified by law are not made; or

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

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page four, the director is 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 director determines 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 director is 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 director either intends to liquidate the group or the parent company or to cease operations, or has 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 Company, we identified that the principal risks of non-compliance with laws and regulations related to breaches of UK regulatory principles, such as those governed by the British Standards Institution, and we considered the extent to which non-compliance might have a material effect on the financial statements of the Company. We also considered those laws and regulations that have a direct impact on the financial statements of the Company such as the Companies Act 2006, the British Standards Institution and UK tax legislation.

We have also 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 are related to management bias in accounting estimates and judgemental areas of the financial statements.

Audit procedures performed by the engagement team included:

-

Discussions with the Board, Management and Company Secretary involved in the Risk and Compliance functions and the Company's legal function, including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;

-

Evaluation and testing of the operating effectiveness of management's controls designed to prevent and detect irregularities;

-

Assessment of matters reported on the Company's fraud register and the results of management's investigation of such matters;

-

Identifying and testing journal entries based on risk criteria;

-

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

-

Testing transactions entered into outside the normal course of the Company's business as appropriate.

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 financials 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 collusions.

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.

Lisa Weaver FCCA (Senior Statutory Auditor)

for and on behalf of Thorne Widgery Accountancy Ltd

Chartered Accountants

Statutory Auditors

2 Wyevale Business Park

Kings Acre

Hereford

Herefordshire

HR4 7BS

17 December 2025

TURNOVER

16,413,387

3,124,143

Cost of sales

(13,920,551

)

(2,496,666

)

GROSS PROFIT

2,492,836

627,477

Administrative expenses

(3,156,841

)

(529,669

)

(664,005

)

97,808

Other operating income

171,188

24,488

OPERATING (LOSS)/PROFIT

4

(492,817

)

122,296

Interest receivable and similar income

43,562

11,713

(449,255

)

134,009

Interest payable and similar expenses

5

(480,540

)

(7,953

)

(LOSS)/PROFIT BEFORE TAXATION

(929,795

)

126,056

Tax on (loss)/profit

6

293,287

(81,787

)

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(636,508

)

44,269

(Loss)/profit attributable to:

Owners of the parent

(636,508

)

44,269

(LOSS)/PROFIT FOR THE YEAR

(636,508

)

44,269

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(636,508

)

44,269

Total comprehensive income attributable to:

Owners of the parent

(636,508

)

44,269

FIXED ASSETS

Tangible assets

9

2,343,411

2,846,993

Investments

10

-

-

2,343,411

2,846,993

CURRENT ASSETS

Stocks

11

3,942,894

4,296,561

Debtors

12

715,433

996,445

Cash at bank and in hand

1,473,796

1,803,709

6,132,123

7,096,715

CREDITORS

Amounts falling due within one year

13

(3,701,320

)

(4,080,722

)

NET CURRENT ASSETS

2,430,803

3,015,993

TOTAL ASSETS LESS CURRENT LIABILITIES

4,774,214

5,862,986

CREDITORS

Amounts falling due after more than one year

14

(505,610

)

(756,762

)

PROVISIONS FOR LIABILITIES

17

(408,142

)

(569,349

)

NET ASSETS

3,860,462

4,536,875

CAPITAL AND RESERVES

Called up share capital

18

700

605

Retained earnings

19

3,859,762

4,536,270

SHAREHOLDERS' FUNDS

3,860,462

4,536,875

The financial statements were approved by the director and authorised for issue on 10 December 2025 and were signed by:

T J Crump - Director

FIXED ASSETS

Tangible assets

9

-

-

Investments

10

300

395

300

395

CURRENT ASSETS

Debtors

12

700

700

CREDITORS

Amounts falling due within one year

13

(300

)

(395

)

NET CURRENT ASSETS

400

305

TOTAL ASSETS LESS CURRENT LIABILITIES

700

700

CAPITAL AND RESERVES

Called up share capital

18

700

700

SHAREHOLDERS' FUNDS

700

700

Company's profit for the financial year

-

-

The financial statements were approved by the director and authorised for issue on 10 December 2025 and were signed by:

T J Crump - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 23 May 2023

-

4,652,869

4,652,869

Changes in equity

Issue of share capital

605

-

605

Dividends

-

(160,868

)

(160,868

)

Total comprehensive income

-

44,269

44,269

Balance at 31 December 2023

605

4,536,270

4,536,875

Changes in equity

Issue of share capital

95

-

95

Dividends

-

(40,000

)

(40,000

)

Total comprehensive income

-

(636,508

)

(636,508

)

Balance at 31 December 2024

700

3,859,762

3,860,462

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Changes in equity

Issue of share capital

700

-

700

Balance at 31 December 2023

700

-

700

Changes in equity

Balance at 31 December 2024

700

-

700

Cash flows from operating activities

Cash generated from operations

1

99,063

3,653,846

Interest paid

(21,208

)

-

Interest element of hire purchase payments paid

(459,332

)

-

Finance costs paid

-

(7,953

)

Tax paid

127,908

-

Net cash from operating activities

(253,569

)

3,645,893

Cash flows from investing activities

Purchase of tangible fixed assets

(63,864

)

(2,846,993

)

Sale of tangible fixed assets

103,936

-

Interest received

43,562

11,713

Net cash from investing activities

83,634

(2,835,280

)

Cash flows from financing activities

New loans in year

-

484,000

New hire purchase contracts

-

669,359

Capital repayments in year

(244,051

)

-

Amount introduced by directors

123,961

-

Share issue

95

605

Equity dividends paid

(40,000

)

(160,868

)

Net cash from financing activities

(159,995

)

993,096

(Decrease)/increase in cash and cash equivalents

(329,930

)

1,803,709

Cash and cash equivalents at beginning of year

2

1,803,709

-

Cash and cash equivalents at end of year

2

1,473,779

1,803,709

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

Period

23.5.23

Year Ended

to

31.12.24

31.12.23

£

£

(Loss)/profit before taxation

(929,795

)

126,056

Depreciation charges

469,136

-

Profit on disposal of fixed assets

(6,997

)

-

Increase in provisions

-

397,425

Subsidiary retained earnings introduced

-

4,572,716

Finance costs

480,540

7,953

Finance income

(43,562

)

(11,713

)

(30,678

)

5,092,437

Decrease/(increase) in stocks

353,667

(4,296,561

)

Decrease/(increase) in trade and other debtors

52,651

(768,085

)

(Decrease)/increase in trade and other creditors

(276,577

)

3,626,055

Cash generated from operations

99,063

3,653,846

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

1,473,796

1,803,709

Bank overdrafts

(17

)

-

1,473,779

1,803,709

Period ended 31 December 2023

31.12.23

23.5.23

£

£

Cash and cash equivalents

1,803,709

-

3.	ANALYSIS OF CHANGES IN NET FUNDS/(DEBT)

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank and in hand

1,803,709

(329,913

)

1,473,796

Bank overdrafts

-

(17

)

(17

)

1,803,709

(329,930

)

1,473,779

Debt

Finance leases

(669,359

)

244,051

(425,308

)

Debts falling due within 1 year

(153,360

)

(337,698

)

(491,058

)

Debts falling due after 1 year

(330,640

)

78,419

(252,221

)

(1,153,359

)

(15,228

)

(1,168,587

)

Total

650,350

(345,158

)

305,192

1.	STATUTORY INFORMATION

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Oakwrights Holding Ltd together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates. The group was formed on 01/11/2023.

These consolidated accounts reflect the combined results of Oakwrights Holding Limited and its 100% owned subsidiaries T J Crump Oakwrights Limited and Oakwrights Developments Ltd. All financial statements are made up to 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

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

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases. A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Turnover

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

The turnover shown in the profit and loss account represents amounts invoiced during the year, exclusive of Value Added Tax.

In respect of long-term contracts and contracts for on-going services, turnover represents the value of work done in the year, including estimates of amounts not invoiced. Turnover in respect of long-term contracts and contracts for on-going services is recognised by reference to the stage of completion.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

New Workshop

-

Straight line over 25 years

Leasehold Property

-

Straight line over 10 years

Improvements to property

-

Straight line over 25 years

Plant and machinery

-

15% on reducing balance

Motor vehicles

-

25% reducing balance

Office equipment

-

15% on reducing balance

Stocks

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

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

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.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Where the company enters into a lease which entails taking substantially all the risks and rewards of ownership of an asset, the lease is treated as a finance lease. The asset is recorded in the balance sheet as a tangible fixed asset and is depreciated in accordance with the above depreciation policies. Future instalments under such leases, net of finance charges, are included within creditors. Rentals payable are apportioned between the finance element, which is charged to the profit and loss account on a straight line basis, and the capital element which reduces the outstanding obligation for future instalments

Pension costs and other post-retirement benefits

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