REGISTERED NUMBER: 10808392 (England and Wales)

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

FUTURESOURCE HOLDINGS LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Consolidated Statement of 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

17

DIRECTORS:

R B Gaddy

G Kutwaroo

REGISTERED OFFICE:

4 Beaconsfield Road

St Albans

Hertfordshire

AL1 3RD

REGISTERED NUMBER:

10808392 (England and Wales)

AUDITORS:

TC Group

1 Rushmills

Bedford Road

Northampton

Northamptonshire

NN4 7YB

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

REVIEW OF BUSINESS

Principal activity

The principal activity of the group is the provision of specialist market research, market tracking, strategic market reports and consulting services to the global entertainment, consumer electronics and business electronics industries.

Result and performance

The results for the year ending 31 December 2024 show a decrease in revenue of 18.34% (2023: Decrease of 14.70%) and a decrease in profit before taxation of 66.31% (2023: decrease of 179.08%).

As noted in the 2023 strategic report, pressures on client budgets and subsequent spend on research were expected to continue into 2024. Whilst the leadership addressed this by reducing its cost base, the declining results in 2023 prompted the business owners to bring in external consultants as part of a transformation program. The consultants were with the business from December 2023 to June 2024, but the program failed. The second half of 2024 focused on stabilising and rebuilding, with the final 4 months of the year contributing 50% of annual sales.

The business has retained its core client base, albeit with an average drop in spend. Renewal rates remain high, and customers indicate growing confidence in the market outlook. The business has a clear business plan for 2025, focusing on more consultative engagements and developing its technical base with a focus on UX/UI improvements and its data strategies. Both will have a direct impact on topline revenue performance. The objective for 2025 is stability and building a platform for a return to pre-COVID performance in 2026.

PRINCIPAL RISKS AND UNCERTAINTIES

The group's operations expose it to a variety of financial risks that include the effects of changes in price risk, credit risk, liquidity risk, currency risk and interest rate risk. The group has processes and internal controls that seek to limit the adverse effects on the financial performance of the group. The board of directors are responsible for monitoring financial risks that the group faces.

Price risk

The group is exposed to price risk due to normal inflationary increases in the purchase price of goods and services. The group has no exposure to equity securities price risk as it holds no listed or other equity instruments.

Credit risk

The primary credit risks faced by the group are trade debtors and cash reserves. Trade debtor risk is managed by credit control procedures which are monitored by the board of directors and further mitigated by the financial strength of our blue-chip client base. Risks associated with cash reserves are limited as the y has group deposits with banks that have solid credit ratings.

Liquidity risk

The group manages liquidity risk by managing cash flow and cash reserves to maintain sufficient funds for operations and planned expansions.

Currency risk

The group's exposure to exchange rate changes is mitigated by invoicing a substantial percentage of customers in pounds sterling. We also invoice in other major currencies, but these do not usually suffer large swings against the pound within typical collection periods. The business also incurs operating expenses in these currencies which further mitigates the risk.

Interest rate risk

The group holds cash balances which earn very low rates of interest due to the present economic situation. Therefore, exposure to interest rate drops is negligible.

Economic risk

The global economy is showing signs of stabilising after several years of significant disruption. The directors monitor rising inflation but see limited impact to the business. Increasing geopolitical tensions are a cause for some concern with the potential impact on supply chains and subsequent impact on the technology sector. The Futuresource Senior Management team maintain a number of cash flow forecast scenarios to help understand the impact economic downfall on the business.

FINANCIAL KEY PERFORMANCE INDICATORS

2024

2023

Revenue

5,941,955

7,276,380

Pre-tax profit

(1,516,283

)

(911,720

)

FUTURE DEVELOPMENTS

The group intends to perform under the guidance of its new board of directors and trustee.

SUBSEQUENT EVENTS

No subsequent events to disclose.

RESEARCH & DEVELOPMENT

The directors are optimistic that the investment in development of new services will create greater marketing opportunities and increased sales.

ON BEHALF OF THE BOARD:

G Kutwaroo - Director

19 December 2025

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

PRINCIPAL ACTIVITY

The principal activity of the group is the provision of specialist market research, market tracking, strategic market reports and consulting services to the global entertainment, consumer electronics and business electronics industries.

DIVIDENDS

The total distribution of dividends for the year ended 31 December 2024 is £35,361 (2023: £nil)

DIRECTORS

The directors who have held office during the period from 1 January 2024 to the date of this report are as follows:

R B Gaddy - appointed 30 May 2024

G Kutwaroo - appointed 31 May 2024

FINANCIAL INSTRUMENTS

The company utilises various financial instruments including loans, cash and items such as trade debtors and

trade creditors that arise directly from its operations. The main purpose of these is to raise finance for the

company's operations. The existence of these financial instruments exposes the company to a number of

financial risks, which are described in more detail in the Strategic Report.

DISCLOSURE IN THE STRATEGIC REPORT

As permitted by Paragraph 1A of schedule 7 to the Large and Medium-sized Companies and Groups (Accounts and reports) Regulations 2008 certain matters which are required to be disclosed in the directors' report have been omitted as they are included in the strategic report

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

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

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, TC Group, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

G Kutwaroo - Director

19 December 2025

Opinion

We have audited the financial statements of Futuresource Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the Consolidated Statement of 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 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 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 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.

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

We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant frameworks which are directly relevant so specific assertions in the financial statements are those that relate to the reporting framework (UK GAAP and the Companies Act 2006) and the relevant tax compliance regulations in the UK.

We understood how the company is complying with those frameworks by making enquiries of management and those responsible for legal and compliance procedures. We corroborated our enquiries through review of board minutes and discussions with those charged with governance.

We assess the susceptibility of the company's financial statements to material misstatement, including how fraud might occur, by discussion with management from various parts of the business to understand where they considered there was a susceptibility to fraud. We considered the procedures and controls that the company has established to prevent and detect fraud, and how these are monitored by management, and also any enhanced risk factors such as performance targets.

Based on our understanding, we designed our audit procedures to identify any non-compliance with laws and regulations identified in the paragraphs above.

We also performed audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.

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.

Rebecca Pickard FCCA (Senior Statutory Auditor)

for and on behalf of TC Group

1 Rushmills

Bedford Road

Northampton

Northamptonshire

NN4 7YB

24 December 2025

TURNOVER

3

5,941,955

7,276,380

Administrative expenses

7,907,407

8,421,221

(1,965,452

)

(1,144,841

)

Other operating income

224,432

32,020

OPERATING LOSS

5

(1,741,020

)

(1,112,821

)

Interest receivable and similar income

225,785

210,788

(1,515,235

)

(902,033

)

Interest payable and similar expenses

6

1,048

9,687

LOSS BEFORE TAXATION

(1,516,283

)

(911,720

)

Tax on loss

7

(21,172

)

135,915

LOSS FOR THE FINANCIAL YEAR

(1,495,111

)

(1,047,635

)

OTHER COMPREHENSIVE INCOME

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(1,495,111

)

(1,047,635

)

Loss attributable to:

Owners of the parent

(1,495,111

)

(1,047,635

)

Total comprehensive income attributable to:

Owners of the parent

(1,495,111

)

(1,047,635

)

FIXED ASSETS

Intangible assets

10

3,492,137

4,912,847

Tangible assets

11

41,688

55,289

Investments

12

-

-

3,533,825

4,968,136

CURRENT ASSETS

Debtors

13

6,767,537

7,384,855

Cash at bank and in hand

227,006

236,028

6,994,543

7,620,883

CREDITORS

Amounts falling due within one year

14

1,798,662

2,329,974

NET CURRENT ASSETS

5,195,881

5,290,909

TOTAL ASSETS LESS CURRENT LIABILITIES

8,729,706

10,259,045

CREDITORS

Amounts falling due after more than one year

15

(55,633

)

(51,051

)

PROVISIONS FOR LIABILITIES

17

(10,434

)

(13,883

)

NET ASSETS

8,663,639

10,194,111

CAPITAL AND RESERVES

Called up share capital

18

9,951

9,951

Share premium

12,644,806

12,644,806

Capital redemption reserve

4,525

4,525

Other reserves

(3,825

)

(3,825

)

Retained earnings

(3,991,818

)

(2,461,346

)

8,663,639

10,194,111

The financial statements were approved by the Board of Directors and authorised for issue on 19 December 2025 and were signed on its behalf by:

G Kutwaroo - Director

FIXED ASSETS

Intangible assets

10

-

-

Tangible assets

11

-

-

Investments

12

14,223,611

14,223,611

14,223,611

14,223,611

CURRENT ASSETS

Debtors

13

2,327,831

2,157,080

CREDITORS

Amounts falling due within one year

14

2,935,577

2,935,542

NET CURRENT LIABILITIES

(607,746

)

(778,462

)

TOTAL ASSETS LESS CURRENT LIABILITIES

13,615,865

13,445,149

CAPITAL AND RESERVES

Called up share capital

18

9,951

9,951

Share premium

12,639,236

12,639,236

Retained earnings

966,678

795,962

13,615,865

13,445,149

Company's profit for the financial year

206,077

112,628

The financial statements were approved by the Board of Directors and authorised for issue on 19 December 2025 and were signed on its behalf by:

G Kutwaroo - Director

Called up

share

Retained

Share

capital

earnings

premium

£

£

£

Balance at 1 January 2023

9,951

(1,413,711

)

12,644,806

Changes in equity

Total comprehensive income

-

(1,047,635

)

-

Balance at 31 December 2023

9,951

(2,461,346

)

12,644,806

Changes in equity

Dividends

-

(35,361

)

-

Total comprehensive income

-

(1,495,111

)

-

Balance at 31 December 2024

9,951

(3,991,818

)

12,644,806

Capital

redemption

Other

Total

reserve

reserves

equity

£

£

£

Balance at 1 January 2023

4,525

(3,825

)

11,241,746

Changes in equity

Total comprehensive income

-

-

(1,047,635

)

Balance at 31 December 2023

4,525

(3,825

)

10,194,111

Changes in equity

Dividends

-

-

(35,361

)

Total comprehensive income

-

-

(1,495,111

)

Balance at 31 December 2024

4,525

(3,825

)

8,663,639

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 January 2023

9,951

683,334

12,639,236

13,332,521

Changes in equity

Total comprehensive income

-

112,628

-

112,628

Balance at 31 December 2023

9,951

795,962

12,639,236

13,445,149

Changes in equity

Dividends

-

(35,361

)

-

(35,361

)

Total comprehensive income

-

206,077

-

206,077

Balance at 31 December 2024

9,951

966,678

12,639,236

13,615,865

Cash flows from operating activities

Cash generated from operations

1

(427,016

)

(143,701

)

Interest paid

(1,048

)

(9,687

)

Tax paid

(38,162

)

(129,636

)

Net cash from operating activities

(466,226

)

(283,024

)

Cash flows from investing activities

Purchase of tangible fixed assets

(6,201

)

(20,782

)

Interest received

225,785

210,788

Related party loan movements

272,981

8,328

Net cash from investing activities

492,565

198,334

Cash flows from financing activities

Equity dividends paid

(35,361

)

-

Net cash from financing activities

(35,361

)

-

Decrease in cash and cash equivalents

(9,022

)

(84,690

)

Cash and cash equivalents at beginning of year

2

236,028

320,718

Cash and cash equivalents at end of year

2

227,006

236,028

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

2024

2023

£

£

Loss before taxation

(1,516,283

)

(911,720

)

Depreciation charges

1,440,511

1,456,390

Loss on disposal of fixed assets

-

34,776

Finance costs

1,048

9,687

Finance income

(225,785

)

(210,788

)

(300,509

)

378,345

Decrease in trade and other debtors

371,900

116,643

Decrease in trade and other creditors

(498,407

)

(638,689

)

Cash generated from operations

(427,016

)

(143,701

)

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

227,006

236,028

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

236,028

320,718

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank and in hand

236,028

(9,022

)

227,006

236,028

(9,022

)

227,006

Total

236,028

(9,022

)

227,006

1.	STATUTORY INFORMATION

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

There were no material departures that standard.

Functional and presentational currency

The Company's functional and presentational currency is GBP.

Significant judgements and estimates

The group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. We have considered the estimates and assumptions made by the company and have not identified any which are deemed to have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

There are significant intercompany and related party receivables held in the balance sheet of the company. The directors consider that the recoverability of these represents a significant point of judgement within the presentation of the financial statements.

Those balances due from it's UK holding companies are considered to be potentially settled at a later date through the issue of dividends from the company to the UK parent companies, and the company and it's subsidiary retains sufficient reserves to do so. There have been no provisions against intercompany receivables.

Those balances due to the group from overseas related parties have been given personal support by the ultimate shareholder of the related entities. There have been no provisions against related party receivables.

The useful economic life of Goodwill represents a matter of judgement on the part of the directors and the ongoing carrying value of goodwill is deemed to be not impaired based on the level of activity and ongoing operations of the business.

The carrying value of the investment is held at cost. The impairment of the investment represents a matter of judgement of the directors. The carrying value of the investment is deemed to not be impaired in the judgement of the directors based on the level of activity and ongoing operations of the subsidiary.

In the event any such judgement did not meet with the expectations of the directors, any impairment may be material to the financial statements. The absence of impairment is based on the directors future projections and are dependent on a programme of identified future improvements.

Turnover

Turnover represents the value, net of value added tax, of goods and services supplied to customers during the year. Sales are recognised at the point at which the company has fulfilled its contractual obligations.

The group recognises revenue when (a) the significant risks and rewards of ownership have been transferred to the customer; (b) the entity retains no continuing involvement or control over the services; (c) the amount of revenue can be measured reliably and (d) it is probable that future economic benefits will flow to the group.

Goodwill

Goodwill is the difference between the fair value of consideration paid for an acquired entry and the aggregate fair value of that entity's identifiable assets and liabilities.

Positive goodwill is capitalised, classed as an asset on the balance sheet and amortised on a straight line basis over its useful economic life. It is reviewed for impairment at the end of the first full financial year following the acquisition and in other periods if events or changes in circumstances indicate that the carrying value may not be recoverable

Amortisation is calculated so as to write off the cost of an asset, net of anticipated disposal proceeds, over the estimated useful economic life of that asset as follows:

Goodwill - 10% straight line

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Computer software is amortised over 3 years straight line.

Tangible fixed assets

Tangible fixed assets are stated at cost less depreciation. Cost represents purchase price together with any incidental costs of acquisition.

Depreciation is calculated so as to write off the cost or revaluation of an assets, net of anticipated disposal proceeds, over the useful economic life of that asset as follows:

Improvements to property - lease term

Fixtures & fittings - 20% straight line

Office equipment - 20% straight line

Software - 33% straight line

Tangible fixed assets are initially recorded at cost and subsequently carried at cost less accumulated depreciation and accumulated impairment losses.

At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value

less costs to sell and its value in use.

Financial instruments

Basic financial assets, including trade and other receivables, cash and bank balances and investments, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Basic financial assets, including trade and other receivables, cash and bank balances and investments, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

Basic financial liabilities, including trade and other payables, bank loans and loans from fellow Group companies, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

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

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

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

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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