The company applies the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all financial instruments. Financial assets and financial liabilities are recognised when the company becomes party to the contractual provisions of the instrument.

Trade and other debtors and cash at bank are classified as basic financial assets and are initially measured at transaction price and subsequently measured at amortised cost.

Trade and other creditors are classified as basic financial liabilities and are initially measured at transaction price and subsequently measured at amortised cost.

Income tax expense represents the sum of the tax currently payable tax.

Current tax is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period. Deferred tax is not recognised as timing differences are not material.

Cash and cash equivalents comprise cash at bank and in hand.