REGISTERED NUMBER: 14184286 (England and Wales)

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2025

FOR

STOREY PROPERTY DEVELOPMENTS HOLDINGS

LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Consolidated Statement of Comprehensive Income

8

Consolidated Balance Sheet

9

Company Balance Sheet

10

Consolidated Statement of Changes in Equity

11

Company Statement of Changes in Equity

12

Consolidated Cash Flow Statement

13

Notes to the Consolidated Cash Flow Statement

14

Notes to the Consolidated Financial Statements

15

DIRECTORS:

M P Storey

M R Storey

SECRETARY:

M P Storey

REGISTERED OFFICE:

Eagle House

28 Billing Road

Northampton

Northamptonshire

NN1 5AJ

REGISTERED NUMBER:

14184286 (England and Wales)

SENIOR STATUTORY AUDITOR:

Robyn Liddell

AUDITORS:

Shaw Gibbs (Audit) Limited, Statutory Auditor

Eagle House

28 Billing Road

Northampton

Northamptonshire

NN1 5AJ

The directors present their strategic report of the company and the group for the year ended 30 June 2025.

REVIEW OF BUSINESS

Turnover for the period was £3,685,000 (2024: £11,285,673), representing the sale of 2 (2024: 25) residential units for £1,090,000 (2024: £10,961,097) and income from a housing association under a building contract of £Nil (2024: £324,576). The balance of turnover represents the sale of a parcel of development land. Net loss before taxation for the period was £13,792 (2024: profit of £844,062).

In view of the labour skills shortage and materials supplies problems, affecting the building industry, the Group have ceased construction and now focus on land development.

PRINCIPAL RISKS AND UNCERTAINTIES

The availability and cost of finance to land developers is a risk to industry. The Group has sought to mitigate this risk by reducing third party funding and only acquiring land that can be funded from internally generated cash or borrowings from related companies with common shareholders. At 30 June 2025, the Group had no third party (unrelated) borrowings.

In acquiring land for development there is a risk of changes in market conditions, affecting demand and valuations. The Group mitigates this risk by acquiring land in different regions; monitoring market trends and forecasts to adapt acquisition strategies; and maintaining flexibility to pause or pivot projects in volatile markets.

Land development is subject to regulatory risks, being changes in planning laws, environmental regulations, taxation, and Government policy. The Group mitigates these risks by engaging with regulatory bodies, local communities, and participating in industry consultations; employing specialist land planning staff and external professional advisors to ensure compliance with changing laws; and conducting detailed feasibility assessments before acquiring land with a strong possibility of providing sustainable and environmentally compliant developments, in the medium to long term.

ON BEHALF OF THE BOARD:

M R Storey - Director

23 December 2025

The directors present their report with the financial statements of the company and the group for the year ended 30 June 2025.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of property developers.

DIVIDENDS

No dividends will be distributed for the year ended 30 June 2025.

DIRECTORS

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

M P Storey

M R Storey

POLITICAL DONATIONS AND EXPENDITURE

Expenditure totalling £49,992 was reimbursed to M & M Supplies (UK) Plc, (who was acting as an agent) for political donations made in relation to the Conservative and Unionist Party.

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, Shaw Gibbs (Audit) Limited, Statutory Auditor, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD::

M R Storey - Director

23 December 2025

Opinion

We have audited the financial statements of Storey Property Developments Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2025 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 30 June 2025 and of the group's profit for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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:

We obtained an understanding of the legal and regulatory frameworks within which the company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, United Kingdom Generally Accepted Accounting Practice and relevant Taxation legislation

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be the override of controls by management, and the understatement of revenue. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing meeting minutes, regulatory correspondence and professional fees, detailed substantive testing on the completeness of income, and reviewing accounting estimates for biases.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.

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.

Robyn Liddell (Senior Statutory Auditor)

for and on behalf of Shaw Gibbs (Audit) Limited, Statutory Auditor

Eagle House

28 Billing Road

Northampton

Northamptonshire

NN1 5AJ

24 December 2025

TURNOVER

5

3,685,000

11,285,673

Cost of sales

3,119,984

9,142,226

GROSS PROFIT

565,016

2,143,447

Administrative expenses

1,033,726

1,523,789

(468,710

)

619,658

Other operating income

6

151,140

41,336

OPERATING (LOSS)/PROFIT

9

(317,570

)

660,994

Interest receivable and similar income

11

304,171

192,579

(13,399

)

853,573

Interest payable and similar expenses

12

393

9,511

(LOSS)/PROFIT BEFORE TAXATION

(13,792

)

844,062

Tax on (loss)/profit

13

(38,085

)

223,126

PROFIT FOR THE FINANCIAL YEAR

24,293

620,936

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

24,293

620,936

Profit attributable to:

Owners of the parent

24,293

620,936

Total comprehensive income attributable to:

Owners of the parent

24,293

620,936

FIXED ASSETS

Tangible assets

15

5,148

5,206

Investments

16

-

-

Investment property

17

225,000

225,000

230,148

230,206

CURRENT ASSETS

Stocks

18

17,452,199

5,736,665

Debtors

19

713,577

960,041

Prepayments and accrued income

80,234

22,026

Cash at bank and in hand

240,619

6,826,747

18,486,629

13,545,479

CREDITORS

Amounts falling due within one year

20

6,380,292

1,415,124

NET CURRENT ASSETS

12,106,337

12,130,355

TOTAL ASSETS LESS CURRENT LIABILITIES

12,336,485

12,360,561

PROVISIONS FOR LIABILITIES

21

56,250

104,619

NET ASSETS

12,280,235

12,255,942

CAPITAL AND RESERVES

Called up share capital

22

11,100,002

11,100,002

Merger reserve

23

(6,371,119

)

(6,371,119

)

Retained earnings

23

7,551,352

7,527,059

SHAREHOLDERS' FUNDS

12,280,235

12,255,942

The financial statements were approved by the Board of Directors and authorised for issue on 23 December 2025 and were signed on its behalf by:

M R Storey - Director

FIXED ASSETS

Tangible assets

15

-

-

Investments

16

1,290,000

1,290,000

Investment property

17

-

-

1,290,000

1,290,000

CURRENT ASSETS

Debtors

19

10,970,296

10,974,232

Cash at bank and in hand

76

2

10,970,372

10,974,234

CREDITORS

Amounts falling due within one year

20

5,500

3,752

NET CURRENT ASSETS

10,964,872

10,970,482

TOTAL ASSETS LESS CURRENT LIABILITIES

12,254,872

12,260,482

CAPITAL AND RESERVES

Called up share capital

22

11,100,002

11,100,002

Retained earnings

23

1,154,870

1,160,480

SHAREHOLDERS' FUNDS

12,254,872

12,260,482

Company's (loss)/profit for the financial year

(5,610

)

1,163,124

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 23 December 2025 and were signed on its behalf by:

M R Storey - Director

Called up

share

Retained

Share

Merger

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1 July 2023

11,100,002

6,906,123

-

(6,371,119

)

11,635,006

Changes in equity

Movement in share capital - 3

-

(4,728,878

)

4,728,878

-

-

Total comprehensive income

-

620,936

-

-

620,936

No description

-

4,728,878

(4,728,878

)

-

-

Balance at 30 June 2024

11,100,002

7,527,059

-

(6,371,119

)

12,255,942

Changes in equity

Total comprehensive income

-

24,293

-

-

24,293

Balance at 30 June 2025

11,100,002

7,551,352

-

(6,371,119

)

12,280,235

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 July 2023

11,100,002

(2,644

)

11,097,358

Changes in equity

Total comprehensive income

-

1,163,124

1,163,124

Balance at 30 June 2024

11,100,002

1,160,480

12,260,482

Changes in equity

Total comprehensive income

-

(5,610

)

(5,610

)

Balance at 30 June 2025

11,100,002

1,154,870

12,254,872

Cash flows from operating activities

Cash generated from operations

1

(7,309,400

)

3,732,609

Interest paid

(393

)

(9,511

)

Tax paid

(235,969

)

(477,179

)

Taxation refund

-

58,693

Taxation refundable

-

(200,573

)

Net cash from operating activities

(7,545,762

)

3,104,039

Cash flows from investing activities

Purchase of tangible fixed assets

(3,332

)

-

Interest received

304,171

192,579

Net cash from investing activities

300,839

192,579

Cash flows from financing activities

New loans in year

-

(658,795

)

Loan repayments in year

658,795

-

Net cash from financing activities

658,795

(658,795

)

(Decrease)/increase in cash and cash equivalents

(6,586,128

)

2,637,823

Cash and cash equivalents at beginning of year

2

6,826,747

4,188,924

Cash and cash equivalents at end of year

2

240,619

6,826,747

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

2025

2024

£

£

(Loss)/profit before taxation

(13,792

)

844,062

Depreciation charges

3,390

11,041

Finance costs

393

9,511

Finance income

(304,171

)

(192,579

)

(314,180

)

672,035

(Increase)/decrease in stocks

(11,715,534

)

3,365,215

(Increase)/decrease in trade and other debtors

(341,221

)

252,675

Increase/(decrease) in trade and other creditors

5,061,535

(557,316

)

Cash generated from operations

(7,309,400

)

3,732,609

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 30 June 2025

30/6/25

1/7/24

£

£

Cash and cash equivalents

240,619

6,826,747

Year ended 30 June 2024

30/6/24

1/7/23

£

£

Cash and cash equivalents

6,826,747

4,188,924

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/7/24

Cash flow

At 30/6/25

£

£

£

Net cash

Cash at bank and in hand

6,826,747

(6,586,128

)

240,619

6,826,747

(6,586,128

)

240,619

Total

6,826,747

(6,586,128

)

240,619

1.	STATUTORY INFORMATION

Storey Property Developments 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.

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

A summary of significant accounting policies adopted by the group and the company is given in the following paragraphs. The policies have been consistently applied to all years presented, unless otherwise stated.

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies.

The preparation of the financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires company management to exercise judgement in applying the company's accounting policies.

The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented it's own Statement of income and Retained Earnings in these financial statements.

Going Concern

At the time of approving the financial statements, the directors have reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Therefore the directors continue to adopt the going concern basis in preparing the financial statements.

Basis of consolidation

The consolidated financial statements present the results of the company and its own subsidiaries ("the group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.

The consolidated financial statements incorporate the full results of the business combinations using the merger method. In the Statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of income and Retained Earnings from the date on which control is obtained. Consolidation ceases from the date on which control ceases.

Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured at fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met fully before revenue is recognised:

Sales of goods

Revenue from the sales of goods is recognised when all of the following conditions are satisfied:

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

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

the amount of revenue is measured reliably;

-it is probable that the company will receive the consideration due under the transaction; and

-the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

-the amount of revenue can be measured reliably;

-it is probable that the company will receive the the consideration due under the contract;

-the stage of completion of the contract at the end of the reporting period can be measured reliably;

-the costs incurred and the costs to complete the contract can be measured reliably.

Tangible fixed assets

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

Short leasehold

-

over the life of the lease

Plant and machinery

-

20% on cost

Computer equipment

-

20% on cost

Tangible fixed assets under the cost model are stated at historical less accumulated depreciation and any accumulated impairment losses. historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit and loss.

Investment property

Investment property is carried at fair value determined annually by the directors or external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in the profit and loss account.

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Costs is based on the cost of purchase on a weighted average basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit and loss.

Total site costs are spread over all private and social units, based on the expected margin of development in aggregate. Social housing is part of the planning requirement for the development and would not have the required revenue to support its own allocation of land costs.

Land stock is recognised at the time a liability is recognised; generally after exchange of unconditional contracts.

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

Financial instruments

The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loan from banks and other third parties, loans to related parties and investments in ordinary shares.

Debt instruments (other than those wholly repayable or receivable in one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows. and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in the case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows, discounted at market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Investments in non-derivative instruments that are equity to the issuer are measured:

-at fair value with changes recognised in the Statement of income and Retained Earnings if the shares are publicly traded or their fair value can otherwise be measured reliably;

-at cost less impairment for all other investments.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Income and Retained Earnings.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the group would receive for the asset if it were to be sold at the reporting date.

Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there is an 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.

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.

Operating leases: the group as lessee

Rentals paid under operation leases are charged to the profit and loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term unless another systematic basics is representative of the time pattern of the lessee's benefit from the use of the leased asset.

Pension costs and other post-retirement benefits

The group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the group pays fixed contributions into a separate entity. once the contributions have been paid the group has no further payment obligations.

The contributions are recognised as an expense in the profit and loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Group in independently administered funds.