REGISTERED NUMBER: 11467228 (England and Wales)

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

NOTUS INVESTMENTS LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

5

Directors' Responsibilities Statement

6

Report of the Independent Auditors

7

Consolidated Income Statement

11

Consolidated Other Comprehensive Income

12

Consolidated Balance Sheet

13

Company Balance Sheet

14

Consolidated Statement of Changes in Equity

15

Company Statement of Changes in Equity

16

Consolidated Cash Flow Statement

17

Notes to the Consolidated Cash Flow Statement

18

Notes to the Consolidated Financial Statements

20

DIRECTORS:

D Wright

D Ambrose

REGISTERED OFFICE:

Adelaide Mill

Gould Street

Oldham

OL1 3LL

REGISTERED NUMBER:

11467228 (England and Wales)

AUDITORS:

Ad Valorem Audit Services Limited

Chartered Certified Accountants

& Statutory Auditors

2 Manor Farm Court

Old Wolverton Road

Old Wolverton

Milton Keynes

Buckinghamshire

MK12 5NN

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

REVIEW OF BUSINESS

Notus Investments Limited is the parent company of a group engaged in international freight forwarding and logistics services across sea, land and air, operating primarily through its wholly owned subsidiaries.

The year ended 31 December 2024 represents the group’s first full year of consolidated trading, following the acquisition of its subsidiaries in December 2023. The group delivered a strong financial performance, driven by increased trading volumes, operational efficiencies, and continued demand for integrated logistics services.

PRINCIPAL RISKS AND UNCERTAINTIES

The director continually reviews and evaluates the risks that the company is facing. The principal risk and uncertainties facing the group are broadly grouped as: Competitive, Legislative, and Financial risks.

Competitive risks

The freight and logistics business has faced strong competition in recent years. The group puts strong emphasis on service levels, quality of products and competitive pricing to its customer base to maintain its position within the market.

Legislative risks

The director does not expect the departure of the United Kingdom from the European Union to have any significant effect on the group's business.

Financial risk management objectives and policies

The group's activities expose it to several financial risks including price risk, credit risk, cashflow risk and liquidity risk. The group holds bank accounts in four major currencies (GBP, USD, EUR, AED) for the purposes of making and receiving payments and does not use derivative financial instruments for speculative purposes.

Cash flow risk

The group's activities expose it primarily to the financial risks of changes in foreign currency exchange rates. The group does not take any specific action to minimise this risk and recognises any realised or unrealised gains or losses to the income statement in the month it is incurred.

Credit risk

The group's principal financial assets are bank and cash balances and trade and other receivables.

The group's credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowance for doubtful receivables. An allowance is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the related cashflows.

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

The group has no significant concentration of credit risk with exposure spread over numerous customers, who themselves have high credit ratings.

Liquidity risk

In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the group uses a mixture of long-term and short-term intercompany debt finance.

Price risk

The group has limited exposure to commodity price risk. The group generally purchases goods and services based upon market prices that are established with the vendor as part of the purchase process. The group does not use commodity financial instruments as it deems them unnecessary.

KEY PERFORMANCE INDICATORS

The company acquired its subsidiary undertakings on 21 December 2023. The director considers the key performance indicators to relate to the profit and loss account. As this only covers an 11 day period, these are not considered relevant for this year.

2024

£

Turnover

29,864,473

Operating profit

1,978,456

Profit/(loss) after tax

1,959,878

Average number of employees

51

FUTURE OUTLOOK

The director remains confident in the group’s prospects. The focus for 2025 will be on:

- Sustained organic growth

- Margin protection in a competitive market

- Continued investment in operational infrastructure

- Strengthening governance and internal controls at group level

ON BEHALF OF THE BOARD:

D Ambrose - Director

30 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 in the year under review was that of international freight forwarding across land, sea and air.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2024.

FUTURE DEVELOPMENTS

The group continues to make efforts to grow its worldwide market share.

DIRECTOR

D Wright held office during the whole of the period from 1 January 2024 to the date of this report.

Other changes in directors holding office are as follows:

D Ambrose was appointed as a director after 31 December 2024 but prior to the date of this report.

POLITICAL DONATIONS AND EXPENDITURE

Charitable donations of £17,870 (2023: £665) were made in the year.

STREAMLINED ENERGY AND CARBON REPORTING

The group has followed the 2019 HM Government Environmental Reporting Guidelines. The group has also used the GHG Reporting Protocol - Corporate Standard and have used the 2020 UK Government's Conversion Factors for Company Reporting.

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, Ad Valorem Audit Services Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

D Ambrose - Director

30 December 2025

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.

Opinion

We have audited the financial statements of Notus Investments Limited (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 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, the Report of the Directors and the Directors' Responsibilities Statement, 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 Directors' Responsibilities Statement set out on page six, 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:

In our process of identifying fraud risks we assessed events or conditions that indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud ("fraud risk factors") to determine how fraud risks are relevant to our audit. Based on the auditing standards we addressed two fraud risks that were relevant to our audit, in relation to revenue recognition and management override of controls. Based upon our analysis of fraud risk factors, we have not identified any additional fraud risks.

Our audit procedures included an evaluation of the design, implementation as well as the operating effectiveness of internal controls relevant to mitigate these risks. We also performed substantive audit procedures, including detailed testing of high risk journal entries and procedures to satisfy ourselves that revenue has been properly recognised in the financial statements in accordance with financial reporting standards and the Group's accounting policies. Through these procedures, we didn't identify any material actual or suspected incidences of fraud.

We have evaluated facts and circumstances in order to assess laws and regulations relevant to the Group. We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general and sector experience, through discussion with the Director and other management (as required by auditing standards) and discussed with the Director and other management the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.

The potential effect of these laws and regulations on the financial statements varies considerably.

Firstly, the Group is subject to laws and regulations that directly affect the financial statements including taxation and financial reporting (including related company legislation) and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

Secondly, the Group is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect:

- Employment legislation, reflecting the Company's workforce

- Health and safety regulation, reflecting the Company's production, distribution and operating processes

- Data privacy, reflecting the Company's management of personal and corporate data

- Environmental regulation, reflecting environmental impact restrictions, waste and contamination related to the Company's distribution and operating processes.

Auditing standards limit the required audit procedures to identify non-compliance with these regulations to enquiry of the Director and other management and inspection of regulatory and legal correspondence, if any. Through these procedures we did not identify any material actual or suspected non-compliance in any of the above areas.

We note that our audit is not primarily designed to detect non-compliance with laws and regulations and the Director and other management are responsible for such internal control as the Director and other management of the Group determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to errors or fraud, including compliance with laws and regulations. Additionally, 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.

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.

Darren Kerins FCCA (Senior Statutory Auditor)

for and on behalf of Ad Valorem Audit Services Limited

Chartered Certified Accountants

& Statutory Auditors

2 Manor Farm Court

Old Wolverton Road

Old Wolverton

Milton Keynes

Buckinghamshire

MK12 5NN

30 December 2025

TURNOVER

4

29,864,473

1,249,771

Cost of sales

22,238,637

1,080,011

GROSS PROFIT

7,625,836

169,760

Administrative expenses

5,656,470

178,461

1,969,366

(8,701

)

Other operating income

9,090

7

OPERATING PROFIT/(LOSS)

6

1,978,456

(8,694

)

Amounts written off investments

8

6,567

-

1,971,889

(8,694

)

Interest payable and similar expenses

9

214,877

6,499

PROFIT/(LOSS) BEFORE TAXATION

1,757,012

(15,193

)

Tax on profit/(loss)

10

(202,866

)

118

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

1,959,878

(15,311

)

Profit/(loss) attributable to:

Owners of the parent

1,959,878

(15,311

)

PROFIT/(LOSS) FOR THE YEAR

1,959,878

(15,311

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,959,878

(15,311

)

Total comprehensive income attributable to:

Owners of the parent

1,959,878

(15,311

)

FIXED ASSETS

Intangible assets

12

123,787

185,681

Tangible assets

13

2,349,946

181,991

Investments

14

-

6,567

2,473,733

374,239

CURRENT ASSETS

Debtors

15

14,987,763

13,336,402

Cash at bank

2,336,806

582,134

17,324,569

13,918,536

CREDITORS

Amounts falling due within one year

16

13,150,839

9,738,669

NET CURRENT ASSETS

4,173,730

4,179,867

TOTAL ASSETS LESS CURRENT LIABILITIES

6,647,463

4,554,106

CREDITORS

Amounts falling due after more than one year

17

(86,806

)

(234,046

)

PROVISIONS FOR LIABILITIES

21

(322,543

)

(41,824

)

NET ASSETS

6,238,114

4,278,236

CAPITAL AND RESERVES

Called up share capital

22

2

2

Capital redemption reserve

23

630,750

630,750

Retained earnings

23

5,607,362

3,647,484

SHAREHOLDERS' FUNDS

6,238,114

4,278,236

The financial statements were approved by the Board of Directors and authorised for issue on 30 December 2025 and were signed on its behalf by:

D Ambrose - Director

FIXED ASSETS

Intangible assets

12

-

-

Tangible assets

13

-

-

Investments

14

3

3

3

3

CURRENT ASSETS

Debtors

15

252

252

Cash at bank

1,751

6

2,003

258

CREDITORS

Amounts falling due within one year

16

28,436

12,950

NET CURRENT LIABILITIES

(26,433

)

(12,692

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(26,430

)

(12,689

)

CAPITAL AND RESERVES

Called up share capital

22

2

2

Retained earnings

(26,432

)

(12,691

)

SHAREHOLDERS' FUNDS

(26,430

)

(12,689

)

Company's loss for the financial year

(13,741

)

(12,691

)

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 30 December 2025 and were signed on its behalf by:

D Wright - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 August 2022

2

-

-

2

Changes in equity

Total comprehensive income

-

(15,311

)

-

(15,311

)

Acquired on acquisition of subsidiaries

-

3,662,795

630,750

4,293,545

Balance at 31 December 2023

2

3,647,484

630,750

4,278,236

Changes in equity

Total comprehensive income

-

1,959,878

-

1,959,878

Balance at 31 December 2024

2

5,607,362

630,750

6,238,114

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 August 2022

2

-

2

Changes in equity

Total comprehensive income

-

(12,691

)

(12,691

)

Balance at 31 December 2023

2

(12,691

)

(12,689

)

Changes in equity

Total comprehensive income

-

(13,741

)

(13,741

)

Balance at 31 December 2024

2

(26,432

)

(26,430

)

Cash flows from operating activities

Cash generated from operations

1

4,484,365

(1,029,223

)

Interest paid

(214,877

)

(6,499

)

Tax paid

202,405

-

Net cash from operating activities

4,471,893

(1,035,722

)

Cash flows from investing activities

Purchase of tangible fixed assets

(4,486,443

)

-

Sale of tangible fixed assets

2,355,564

-

Net cash from investing activities

(2,130,879

)

-

Cash flows from financing activities

New loans in year

-

380,557

Capital repayments in year

(152,268

)

-

Amount introduced by directors

-

1,237,299

Amount withdrawn by directors

(434,074

)

-

Net cash from financing activities

(586,342

)

1,617,856

Increase in cash and cash equivalents

1,754,672

582,134

Cash and cash equivalents at beginning of year

2

582,134

-

Cash and cash equivalents at end of year

2

2,336,806

582,134

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

Period

1/8/22

Year Ended

to

31/12/24

31/12/23

£

£

Profit/(loss) before taxation

1,757,012

(15,193

)

Depreciation charges

229,641

4,308

(Profit)/loss on disposal of fixed assets

(204,823

)

12,450

Reserves acquired on acquisition

-

4,293,545

Amounts impaired on investments

6,567

-

Finance costs

214,877

6,499

2,003,274

4,301,609

Increase in trade and other debtors

(1,691,735

)

(13,293,279

)

Increase in trade and other creditors

4,172,826

7,962,447

Cash generated from operations

4,484,365

(1,029,223

)

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

2,336,806

582,134

Period ended 31 December 2023

31/12/23

1/8/22

£

£

Cash and cash equivalents

582,134

-

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/1/24

Cash flow

At 31/12/24

£

£

£

Net cash

Cash at bank

582,134

1,754,672

2,336,806

582,134

1,754,672

2,336,806

Debt

Finance leases

(11,416

)

11,416

-

Debts falling due within 1 year

(140,860

)

(623

)

(141,483

)

Debts falling due after 1 year

(228,281

)

141,475

(86,806

)

(380,557

)

152,268

(228,289

)

Total

201,577

1,906,940

2,108,517

1.	STATUTORY INFORMATION

Notus Investments 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.

BASIS OF CONSOLIDATION

The consolidated group financial statements consist of the financial statements of the parent company Notus Investments Limited together with all entities controlled by the parent company (its subsidiaries) and the group's share of its interests in joint ventures and associates.

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.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group's share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

If the group's share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group's interest in the entity.

Business combinations

In the parent company financial statements, the cost of a business combination is at the fair value of the acquisition date of the assets given, equity instruments issued and liabilities incurred, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

TURNOVER

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes.

INTANGIBLE ASSETS

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Development costs

- 25% on cost

TANGIBLE FIXED ASSETS

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and equipment

- 33% on reducing balance, 25% on cost and 15% on cost

Fixtures and fittings

- 33% on reducing balance, 25% on cost and 15% on cost

Computers

- 33% on reducing balance, 25% on cost and 15% on cost

Motor vehicles

- 33% on reducing balance, 25% on cost and 15% on cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.