REGISTERED NUMBER: 11620100 (England and Wales)

Group Strategic Report,

Report of the Directors and

Consolidated Financial Statements

for the Year Ended 30 June 2025

for

Docksey Transport Holdings Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

5

Consolidated Profit and Loss Account

9

Consolidated Balance Sheet

10

Company Balance Sheet

11

Consolidated Statement of Changes in Equity

12

Company Statement of Changes in Equity

13

Consolidated Cash Flow Statement

14

Notes to the Consolidated Cash Flow Statement

15

Notes to the Consolidated Financial Statements

16

DIRECTORS:

Mr N J Docksey

Mrs L B Docksey

Mr C J Docksey

REGISTERED OFFICE:

Leekbrook Depot Cheadle Road

Leekbrook

Leek

Staffordshire

ST13 7DR

REGISTERED NUMBER:

11620100 (England and Wales)

AUDITORS:

Thompson Wright (Audit) Limited

Ebenezer House

Ryecroft

Newcastle under Lyme

Staffordshire

ST5 2BE

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

REVIEW OF BUSINESS

Throughout the year, the company has continued to concentrate on the core business of supplying bulk powders in the construction industry via their fleet of lorries. Whilst the main office is based in Leek, Staffordshire, the company supplies to sites nationwide.

The results as shown on page 9, show that turnover has increased by 6.1%. As with other operators in the industry, the company has seen increasing fuel and wage costs. The company has been able to pass on some of these costs, it has had to absorb some of the increases, resulting in a 1.3% increase in gross profit margin.

KEY PERFORMANCE INDICATORS

As in previous years, the management consider the key indicators to be;

2024

2024

Turnover growth

6.1%

1.2%

Gross profit

14.9%

13.6%

Net profit before tax

9.1%

9.4%

It is the responsibility of the commercial team to regularly monitor and review these figures and report the results and any corrective actions to the board.

PRINCIPAL RISKS AND UNCERTAINTIES

There are certain risks, which could materially and adversely impact the company's results compared to expectation. A summary of the key risks is set out below. This is not an exhaustive list of the factors that could adversely impact company profitability.

Financial Instruments

The company uses various financial instruments; these include cash and various items, such as trade debtors and trade creditors, that arise directly from its operations.

The existence of these financial instruments exposes the company to several financial risks which are described in more detail below.

The main risks arising from the group's financial instruments are categorised as market risk, credit risk and liquidity risk. The directors review and agree policies for managing these risks and they are summarised below.

Financial Risk

The company's policy throughout the year has been to try and maintain liquid funds at the bank to avoid incurring interest charges. Where the company has to undertake short term borrowings it is the company's policy to minimise the amount of borrowings at floating rates of interest.

The maturity of the borrowings is set out on note 17 to the financial statements.

Market Risk

To minimise market risk, the operations team constantly monitor fuel prices and competitor prices to ensure that they can offer competitive prices.

Credit Risk

The principal credit risk arises from the trade debtors.

In order to manage credit risk, the directors set limits for its customers based on a combination of payment history and credit references. Credit limits are reviewed by the credit controller on a regular basis in conjunction with debt ageing and collection history.

Liquidity Risk

The business has a very strong relationship with its bank. The company has the facilities available to meet its needs on an ongoing basis. These facilities are reviewed on a regular basis, by both the bank and the management, and are in accordance with the needs of the group.

FUTURE DEVELOPMENTS

The directors continually monitor the services the company provides to maintain a strong position in the market place.

The directors have a policy in investing in the company's operating fleet, renewing older vehicles as and when necessary to allow the company to continue to deliver the best service at the best value.

ON BEHALF OF THE BOARD:

Mrs L B Docksey - Director

22 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 freight transportation.

DIVIDENDS

The total distribution of dividends for the year ended 30 June 2025 will be £ 105,269 .

DIRECTORS

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

Mr N J Docksey

Mrs L B Docksey

Mr C J Docksey

DISCLOSURE IN THE STRATEGIC REPORT

The company has chosen in accordance with section 414(c) of the Companies Act 2006 (Strategic and Directors Report) Regulations 2013 to set out in the company's Strategic report information required by schedule 7 of the Large and Medium Sized Companies and Groups (Accounts and Reports) regulations 2008.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulation.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have prepared the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland", 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 of the profit or loss of the company for that period. In preparing the financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;

- state whether applicable United Kingdom Accounting Standards, comprising FRS 102, have been followed, subject to any material departures disclosed and explained in the financial statements;

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

- 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 transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006.

The directors are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Thompson Wright (Audit) Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mrs L B Docksey - Director

22 December 2025

Opinion

We have audited the financial statements of Docksey Transport Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2025 which comprise the Consolidated Profit and Loss Account, 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 four, 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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- the Senior Statutory Auditor ensured that the audit team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the haulage of materials sector;

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental consumer rights act, other industry specific accreditations and health and safety legislation;

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;

- reading the minutes of meetings of those charged with governance;

- enquiring of management as to actual and potential litigation and claims; and

- reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the company's legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

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.

Jeremy Bostock BA (Hons) BFP FCA (Senior Statutory Auditor)

for and on behalf of Thompson Wright (Audit) Limited

Ebenezer House

Ryecroft

Newcastle under Lyme

Staffordshire

ST5 2BE

22 December 2025

TURNOVER

3

9,170,511

8,641,999

Cost of sales

7,805,109

7,465,063

GROSS PROFIT

1,365,402

1,176,936

Administrative expenses

396,152

293,217

969,250

883,719

Other operating income

29,396

47,842

OPERATING PROFIT

5

998,646

931,561

Interest receivable and similar income

5,673

2,146

1,004,319

933,707

Interest payable and similar expenses

6

165,723

120,786

PROFIT BEFORE TAXATION

838,596

812,921

Tax on profit

7

186,675

205,144

PROFIT FOR THE FINANCIAL YEAR

651,921

607,777

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

651,921

607,777

Profit attributable to:

Owners of the parent

651,921

607,777

Total comprehensive income attributable to:

Owners of the parent

651,921

607,777

FIXED ASSETS

Intangible assets

10

-

-

Tangible assets

11

8,198,542

7,205,283

Investments

12

-

-

Investment property

13

-

-

8,198,542

7,205,283

CURRENT ASSETS

Stocks

14

184,389

216,140

Debtors

15

2,243,794

1,904,915

Cash at bank and in hand

272,818

251,262

2,701,001

2,372,317

CREDITORS

Amounts falling due within one year

16

2,207,337

2,093,321

NET CURRENT ASSETS

493,664

278,996

TOTAL ASSETS LESS CURRENT LIABILITIES

8,692,206

7,484,279

CREDITORS

Amounts falling due after more than one year

17

(2,986,057

)

(2,511,457

)

PROVISIONS FOR LIABILITIES

21

(1,275,808

)

(1,089,133

)

NET ASSETS

4,430,341

3,883,689

CAPITAL AND RESERVES

Called up share capital

22

100

100

Retained earnings

23

4,430,241

3,883,589

SHAREHOLDERS' FUNDS

4,430,341

3,883,689

The financial statements were approved by the Board of Directors and authorised for issue on 22 December 2025 and were signed on its behalf by:

Mrs L B Docksey - Director

FIXED ASSETS

Intangible assets

10

-

-

Tangible assets

11

-

-

Investments

12

2

2

Investment property

13

1,166,942

1,166,942

1,166,944

1,166,944

CURRENT ASSETS

Debtors

15

394,316

269,002

Cash at bank

55,221

42,993

449,537

311,995

CREDITORS

Amounts falling due within one year

16

75,710

72,584

NET CURRENT ASSETS

373,827

239,411

TOTAL ASSETS LESS CURRENT LIABILITIES

1,540,771

1,406,355

CREDITORS

Amounts falling due after more than one year

17

871,390

802,382

NET ASSETS

669,381

603,973

CAPITAL AND RESERVES

Called up share capital

22

100

100

Retained earnings

669,281

603,873

SHAREHOLDERS' FUNDS

669,381

603,973

Company's profit for the financial year

170,677

157,149

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 22 December 2025 and were signed on its behalf by:

Mrs L B Docksey - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 July 2023

100

3,384,034

3,384,134

Changes in equity

Dividends

-

(108,222

)

(108,222

)

Total comprehensive income

-

607,777

607,777

Balance at 30 June 2024

100

3,883,589

3,883,689

Changes in equity

Dividends

-

(105,269

)

(105,269

)

Total comprehensive income

-

651,921

651,921

Balance at 30 June 2025

100

4,430,241

4,430,341

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 July 2023

100

554,946

555,046

Changes in equity

Dividends

-

(108,222

)

(108,222

)

Total comprehensive income

-

157,149

157,149

Balance at 30 June 2024

100

603,873

603,973

Changes in equity

Dividends

-

(105,269

)

(105,269

)

Total comprehensive income

-

170,677

170,677

Balance at 30 June 2025

100

669,281

669,381

Cash flows from operating activities

Cash generated from operations

1

1,788,779

1,509,983

Interest paid

(12,798

)

(20,363

)

Interest element of hire purchase payments paid

(152,925

)

(100,423

)

Net cash from operating activities

1,623,056

1,389,197

Cash flows from investing activities

Purchase of tangible fixed assets

(113,804

)

(93,538

)

Sale of tangible fixed assets

30,000

156,775

Interest received

5,673

2,146

Net cash from investing activities

(78,131

)

65,383

Cash flows from financing activities

Loan repayments in year

(102,175

)

(101,143

)

Capital repayments in year

(1,388,132

)

(1,207,142

)

Amount introduced by directors

72,207

108,222

Amount withdrawn by directors

-

(53,265

)

Equity dividends paid

(105,269

)

(108,222

)

Net cash from financing activities

(1,523,369

)

(1,361,550

)

Increase in cash and cash equivalents

21,556

93,030

Cash and cash equivalents at beginning of year

2

251,262

158,232

Cash and cash equivalents at end of year

2

272,818

251,262

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

2025

2024

£

£

Profit before taxation

838,596

812,921

Depreciation charges

1,047,707

906,471

Loss/(profit) on disposal of fixed assets

27,943

(79,980

)

Finance costs

165,723

120,786

Finance income

(5,673

)

(2,146

)

2,074,296

1,758,052

Decrease in stocks

31,751

6,375

(Increase)/decrease in trade and other debtors

(338,879

)

155,024

Increase/(decrease) in trade and other creditors

21,611

(409,468

)

Cash generated from operations

1,788,779

1,509,983

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

272,818

251,262

Year ended 30 June 2024

30.6.24

1.7.23

£

£

Cash and cash equivalents

251,262

158,232

3.	ANALYSIS OF CHANGES IN NET DEBT

Other

non-cash

At 1.7.24

Cash flow

changes

At 30.6.25

£

£

£

£

Net cash

Cash at bank

and in hand

251,262

21,556

272,818

251,262

21,556

272,818

Debt

Finance leases

(2,571,887

)

1,388,132

(1,985,105

)

(3,168,860

)

Debts falling due

within 1 year

(102,064

)

70,040

(65,362

)

(97,386

)

Debts falling due

after 1 year

(203,639

)

32,135

65,362

(106,142

)

(2,877,590

)

1,490,307

(1,985,105

)

(3,372,388

)

Total

(2,626,328

)

1,511,863

(1,985,105

)

(3,099,570

)

1.	STATUTORY INFORMATION

Docksey Transport 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.

After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future, being the 12 month period from the date of these accounts being approved and therefore the financial statements have been prepared on a going concern basis.

Basis of consolidation

The group accounts consolidate the accounts of the group and all its subsidiary at 30 June. All companies have coterminous year ends. All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation.

The consolidated financial statements incorporate the results of the business combinations using the merger method.In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent assets are initially recognised as if it had always been in place. The results of acquired operations are included in the consolidated Profit and Loss Account.

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

The preparation of financial statements in conformity with generally accepted principles requires the directors to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Some of these estimates and judgements are inherently uncertain and subject to change. The impact of any change in accounting estimates is reflected in the period in which the estimate is revised, if the revision only affects the period, or in the period of the revision and future periods if the revision affects both current and future periods. In this respect the directors believe that the critical accounting policies where judgements or estimations are necessarily applied are as follows.

Turnover

Turnover represents net invoiced sales of goods and services, excluding value added tax.

Revenue is recognised as the company becomes entitled to consideration for the goods and services supplied.

Turnover is attributable to the principle activity of the company which is carried out entirely within the United Kingdom.

All turnover is derived from UK customers.

Impairment of debtors

Management perform ongoing reviews of the recoverability of debtor balances, An allowance for doubtful debts is maintained for potential credit losses based on management's assessment of the expected collectability of amounts receivable. The allowance for bad debts is reviewed periodically to assess the adequacy of the allowance

Goodwill

Goodwill is measured at cost and has been amortised over its useful life.

Intangible assets

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

Tangible fixed assets

Depreciation is provided at the following annual 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 the shorter.

Long leasehold

-

2% on cost

Plant and machinery

-

10% on cost

Motor vehicles

-

10% on cost

Computer equipment

-

25% on cost

Useful economic lives of tangible assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimates of useful economic lives and residual value of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, of economic utilisation of the assets.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Financial instruments

The group has chosen to adopt the Sections 11 and 12 of FRS 102 in respect of financial instruments.

(i) Financial assets

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

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

(ii) Financial liabilities

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

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

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Profit and Loss Account, 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.