REGISTERED NUMBER: 13514739 (England and Wales)

J.S HIGHFIELD HOLDINGS LIMITED

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Consolidated Statement of Comprehensive Income

8

Consolidated Statement of Financial Position

9

Company Statement of Financial Position

10

Consolidated Statement of Changes in Equity

11

Company Statement of Changes in Equity

12

Consolidated Statement of Cash Flows

13

Notes to the Consolidated Statement of Cash Flows

14

Notes to the Consolidated Financial Statements

15

DIRECTORS:

J R Highfield

P A Burkitt

SECRETARY:

P A Burkitt

REGISTERED OFFICE:

Unit 10

Hemswell Business Park

Hemswell

Lincolnshire

DN21 5TJ

REGISTERED NUMBER:

13514739 (England and Wales)

AUDITORS:

Duncan & Toplis Audit Limited, Statutory Auditor

14 London Road

Newark

Nottinghamshire

NG24 1TW

The directors present their strategic report of the company and the group for the year ended 31 March 2025.

REVIEW OF BUSINESS

The principal shareholders of the group play an active role in its administration, including regular meetings and communication to direct and review progress. The assessment of materiality in determining the information to be included in the strategic report has been made in the light of this detailed and ongoing communication.

The directors monitor the financial position of the group on a monthly basis, with focus on the group's turnover and gross margin.

Turnover has increased during the year compared to the prior year. Profit has been strong in the current year, as expected. The directors are happy with the results for the year, especially given the current and expected challenges ahead within the economy.

PRINCIPAL RISKS AND UNCERTAINTIES

The directors are constantly reviewing market conditions and competitor activity in order to maintain continued services with existing and new customers.

KEY PERFORMANCE INDICATORS ('KPIS')

Given the straightforward nature of the business, the group's directors are of the opinion that a detailed analysis using KPI's is not necessary for an understanding of the development, performance or position of the business. The group uses turnover and gross profit margin as its primary measures.

Key financial results

2025

2024

Turnover (£'000)

9,937

9,194

Gross profit / (loss) (£'000)

1,203

876

Gross profit margin

12.1%

9.5%

Profit / (loss) after tax (£'000)

237

18

Net assets (£'000)

3,028

2,851

FINANCIAL INSTRUMENTS AND FUTURE DEVELOPMENTS

Objectives and policies

The group utilises appropriate financial instruments in order to carry out it's business activities in an effective manner.

Price risk, credit risk, liquidity risk and cash flow risk

The business' principal financial instruments comprise bank balances, bank overdrafts, trade debtors, trade creditors and loans to the business. The main purpose of these instruments is to finance the business' operations.

In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of invoice discounting. All of the business' cash balances are held in such a way that achieves a competitive rate of interest. The business makes use of money market facilities where funds are available.

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the balance sheet are net of allowances for doubtful debtors. Trade creditors' liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

Loans comprise loans from financial institutions. The interest rate and monthly repayments on the loans from financial institutions are mostly fixed. The business manages the liquidity risk by ensuring that there are sufficient funds to meet the payments.

ON BEHALF OF THE BOARD:

J R Highfield - Director

24 December 2025

The directors present their report with the financial statements of the company and the group for the year ended 31 March 2025.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of haulage and storage.

DIVIDENDS

An interim dividend of 1,224.49 per share was paid on 31 March 2025. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 March 2025 will be £ 60,000 .

DIRECTORS

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

J R Highfield - appointed 22 July 2024

P A Burkitt was appointed as a director after 31 March 2025 but prior to the date of this report.

T J Highfield ceased to be a director after 31 March 2025 but prior to the date of this 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 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.

ON BEHALF OF THE BOARD:

J R Highfield - Director

24 December 2025

Opinion

We have audited the financial statements of J.S Highfield Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2025 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, 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 March 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 have identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience, knowledge of the sector, a review of regulatory and legal correspondence and through discussions with Directors and other management obtained as part of the work required by auditing standards. We have also discussed with the Directors and other management the policies and procedures relating to compliance with laws and regulations. We communicated laws and regulations throughout the team and remained alert to any indications of non-compliance throughout the audit.

The potential impact of different laws and regulations varies considerably. Firstly, the group is subject to laws and regulations that directly impact the financial statements (for example financial reporting legislation) and we have assessed the extent of compliance with such laws as part of our financial statements audit. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including risk of override of controls) and determined that the principal risks were related to management bias in accounting estimates and judgemental areas of the financial statements such as depreciation of tangible fixed assets, as well as the risk of inappropriate journal entries to increase reported profitability. Audit procedures performed by the engagement team included the identification and testing of material and unusual journal entries and challenging management on key accounting estimates, assumptions and judgements made in the preparation of the financial statements.We carried out detailed substantive tests on accounting estimates, including reviewing the methods used by management to make those estimates, re-performing the calculation, and reviewing the outcome of prior year estimates.

Secondly, the group is subject to other laws and regulations where the consequence for noncompliance could have a material effect on the amounts or disclosures in the financial statements. We identified the following areas as those most likely to have such an effect: Health and Safety regulations, Goods vehicle operating laws and Employment laws.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management and inspection. This inspection included a review of correspondence from any external regulators as well as verification of the company's vehicle operating license . Through these procedures, if we became aware of any non-compliance, we considered the impact on the procedures performed on the related financial statement items.

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. The further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. As with any audit, there is a greater risk of non-detection of irregularities as these may involve collusion, intentional omissions of the override of internal controls. 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.

Other matters

The previous years financial statements were not audited as the company was entitled to exemption under section 477 of the companies act 2006. Accordingly, the comparatives to the current years financial statements are not audited.

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.

Rachel Rudkin FCCA (Senior Statutory Auditor)

for and on behalf of Duncan & Toplis Audit Limited, Statutory Auditor

14 London Road

Newark

Nottinghamshire

NG24 1TW

31 December 2025

TURNOVER

9,936,753

9,194,338

Cost of sales

8,733,567

8,318,494

GROSS PROFIT

1,203,186

875,844

Administrative expenses

802,020

725,958

401,166

149,886

Other operating income

500

-

OPERATING PROFIT

4

401,666

149,886

Interest receivable and similar income

1,706

310

403,372

150,196

Interest payable and similar expenses

5

176,372

127,997

PROFIT BEFORE TAXATION

227,000

22,199

Tax on profit

6

(10,226

)

4,287

PROFIT FOR THE FINANCIAL YEAR

237,226

17,912

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

237,226

17,912

Profit attributable to:

Owners of the parent

237,226

17,912

Total comprehensive income attributable to:

Owners of the parent

237,226

17,912

FIXED ASSETS

Tangible assets

10

6,342,686

5,230,546

Investments

11

-

-

6,342,686

5,230,546

CURRENT ASSETS

Inventory

12

32,296

44,396

Debtors

13

2,167,912

2,132,326

Cash at bank

53,436

90,491

2,253,644

2,267,213

CREDITORS

Amounts falling due within one year

14

2,927,130

2,673,062

NET CURRENT LIABILITIES

(673,486

)

(405,849

)

TOTAL ASSETS LESS CURRENT LIABILITIES

5,669,200

4,824,697

CREDITORS

Amounts falling due after more than one year

15

(2,075,924

)

(1,398,421

)

PROVISIONS FOR LIABILITIES

19

(565,402

)

(575,628

)

NET ASSETS

3,027,874

2,850,648

CAPITAL AND RESERVES

Called up share capital

20

100

100

Share premium

21

3,402

3,402

Capital redemption reserve

21

3,499

3,499

Retained earnings

21

3,020,873

2,843,647

SHAREHOLDERS' FUNDS

3,027,874

2,850,648

The financial statements were approved by the Board of Directors and authorised for issue on 24 December 2025 and were signed on its behalf by:

J R Highfield - Director

FIXED ASSETS

Tangible assets

10

128,530

102,547

Investments

11

2,750,000

2,750,000

2,878,530

2,852,547

CURRENT ASSETS

Debtors

13

310,420

318,648

CREDITORS

Amounts falling due within one year

14

34,693

1,499

NET CURRENT ASSETS

275,727

317,149

TOTAL ASSETS LESS CURRENT LIABILITIES

3,154,257

3,169,696

CAPITAL AND RESERVES

Called up share capital

20

100

100

Share premium

21

3,402

3,402

Fair value reserve

21

2,746,498

2,746,498

Retained earnings

21

404,257

419,696

SHAREHOLDERS' FUNDS

3,154,257

3,169,696

Company's profit for the financial year

44,561

282,927

The financial statements were approved by the Board of Directors and authorised for issue on 24 December 2025 and were signed on its behalf by:

J R Highfield - Director

Called up

Capital

share

Retained

Share

redemption

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1 April 2023

100

2,841,192

3,402

3,499

2,848,193

Changes in equity

Dividends

-

(15,457

)

-

-

(15,457

)

Total comprehensive income

-

17,912

-

-

17,912

Balance at 31 March 2024

100

2,843,647

3,402

3,499

2,850,648

Changes in equity

Dividends

-

(60,000

)

-

-

(60,000

)

Total comprehensive income

-

237,226

-

-

237,226

Balance at 31 March 2025

100

3,020,873

3,402

3,499

3,027,874

Called up

Fair

share

Retained

Share

value

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1 April 2023

100

152,226

3,402

2,746,498

2,902,226

Changes in equity

Dividends

-

(15,457

)

-

-

(15,457

)

Total comprehensive income

-

282,927

-

-

282,927

Balance at 31 March 2024

100

419,696

3,402

2,746,498

3,169,696

Changes in equity

Dividends

-

(60,000

)

-

-

(60,000

)

Total comprehensive income

-

44,561

-

-

44,561

Balance at 31 March 2025

100

404,257

3,402

2,746,498

3,154,257

Cash flows from operating activities

Cash generated from operations

1

1,268,898

895,352

Interest paid

(55,792

)

(44,165

)

Interest element of hire purchase payments paid

(120,580

)

(83,832

)

Net cash from operating activities

1,092,526

767,355

Cash flows from investing activities

Purchase of tangible fixed assets

(399,960

)

(194,427

)

Sale of tangible fixed assets

49,500

47,750

Interest received

1,706

310

Net cash from investing activities

(348,754

)

(146,367

)

Cash flows from financing activities

New loans in year

470,000

-

Loan repayments in year

(75,139

)

(58,192

)

Capital repayments in year

(1,118,882

)

(698,865

)

Amount introduced by directors

30,000

-

Amount withdrawn by directors

(26,806

)

-

Equity dividends paid

(60,000

)

(15,457

)

Net cash from financing activities

(780,827

)

(772,514

)

Decrease in cash and cash equivalents

(37,055

)

(151,526

)

Cash and cash equivalents at beginning of year

2

90,491

242,017

Cash and cash equivalents at end of year

2

53,436

90,491

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

2025

2024

as restated

£

£

Profit before taxation

227,000

22,199

Depreciation charges

661,082

845,117

Loss on disposal of fixed assets

58,002

44,510

-

(228,965

)

Finance costs

176,372

127,997

Finance income

(1,706

)

(310

)

1,120,750

810,548

Decrease in inventory

12,100

3,404

Increase in trade and other debtors

(35,586

)

(2,781

)

Increase in trade and other creditors

171,634

84,181

Cash generated from operations

1,268,898

895,352

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 March 2025

31.3.25

1.4.24

£

£

Cash and cash equivalents

53,436

90,491

Year ended 31 March 2024

31.3.24

1.4.23

as restated

£

£

Cash and cash equivalents

90,491

242,017

3.	ANALYSIS OF CHANGES IN NET DEBT

Other

non-cash

At 1.4.24

Cash flow

changes

At 31.3.25

£

£

£

£

Net cash

Cash at bank

90,491

(37,055

)

53,436

90,491

(37,055

)

53,436

Debt

Finance leases

(1,540,665

)

1,118,882

(1,480,764

)

(1,902,547

)

Debts falling due

within 1 year

(62,240

)

(394,861

)

357,754

(99,347

)

Debts falling due

after 1 year

(571,400

)

-

(357,754

)

(929,154

)

(2,174,305

)

724,021

(1,480,764

)

(2,931,048

)

Total

(2,083,814

)

686,966

(1,480,764

)

(2,877,612

)

1.	STATUTORY INFORMATION

J.S Highfield 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.	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 financial statements comprise the audited financial statements of the company and its subsidiary undertakings for the year to 31 March 2025.

The consolidated financial statements have been prepared in accordance with the principles of acquisition accounting as set out in FRS 102.

Related party exemption

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

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

Significant judgements and estimates

In the application of the Company's accounting policies, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The key judgement and estimate relates to depreciation of property, plant, and equipment. Management regularly reviews the expected useful life, residual values, and rates based on current market trends and values across the asset classifications. Any changes to depreciation policies are applied to new assets only and are not applied retrospectively.

Turnover

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

Turnover comprises sales of haulage and storage services. Turnover is recognised when the significant risks and rewards have passed to the buyer, the amount can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and that the costs incurred, or to be incurred, in respect of the transaction can be measured reliably.

Tangible fixed assets

Fixed assets are stated at cost or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Depreciation is provided at the following annuals rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is shorter.

Freehold property

-

Not provided.

Leasehold improvements

-

5% on cost

Workshop and vehicle park

-

10% on cost

Plant & machinery

-

15% on reducing balance

Motor vehicles

-

25% and 20% on reducing balance, straight line over 3 - 10 years

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.

Inventory

Inventory, which represent fuel and vehicle spares, are valued at the lower of cost and estimated selling price less costs to sell, after making due allowance for obsolete and slow moving items.

Financial instruments

The group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks, other third parties and related parties.

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 income statement.

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, which is an approximation of the amount that the company would receive for the asset if it were to be sold at the financial reporting date.

Financial assets and liabilities are offset and the net amount reported in the statement of financial position when there is as 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 statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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.