D & G NOBLE HOLDINGS LIMITED

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31ST OCTOBER 2025

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Statement of Comprehensive Income

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

17

DIRECTORS:

S Noble

D E Noble

REGISTERED OFFICE:

First Floor, Woburn Court

2 Railton Road

Woburn Road Industrial Estate, Kempston

Bedford

Bedfordshire

MK42 7PN

REGISTERED NUMBER:

12098655 (England and Wales)

AUDITORS:

HW Bedford Limited

First Floor, Woburn Court

2 Railton Road

Woburn Rd Ind Est

Kempston

Bedfordshire

MK42 7PN

BANKERS:

Handelsbanken

2nd Floor Clifton House

4a Goldington Road

Bedford

Bedfordshire

MK40 3NF

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

REVIEW OF BUSINESS

The Directors are pleased to report that the Company has continued to grow its operations over the past 12 months. Turnover increased by 13.44% to £11,055,218 reflecting strong performance across the business.

The Directors believe that this strategic acquisition has strengthened the Company’s market position and enhanced its ability to meet customer demand.

The business has experienced challenges in retaining skilled staff, particularly within the transport planning and administrative teams, together with the recruitment of replacement personnel following staff departures. These challenges reflect ongoing pressures within the wider logistics labour market.

To mitigate these risks, the Company has strengthened its recruitment processes, engaged additional recruitment support, and increased its focus on staff training and development. Management has also reviewed remuneration and working practices to improve staff retention and ensure continuity of service. The Directors continue to monitor staffing levels closely and remain committed to investing in people to support the Company’s ongoing growth.

Following the expansion of the business, the Directors continue to seek larger premises to support ongoing growth. However, this process has presented challenges, as preferred locations—particularly farm land sites—are increasingly being sold to property developers, limiting availability.

Gross margins for the 12 months to 31 October 2025 remained stable at 30%. Operating profit showed a slight decrease during the period, primarily due to rising operating costs, including increased fuel prices and higher vehicle repair and maintenance expenses.

In response, the Directors have implemented a number of cost control measures, including closer monitoring of fuel usage, reviewing supplier contracts, and enhanced maintenance planning to reduce unexpected repair costs. The Company has also continued to review pricing and operational efficiency to help mitigate cost pressures while maintaining service levels.

The Company’s balance sheet total increased during the period. The majority of new commercial vehicle acquisitions were funded through the accumulation of cash reserves, with the remaining expenditure financed via hire purchase obligations.The Directors intend to continue updating the Company’s vehicle fleet on an annual basis, ensuring reliability, operational efficiency, and compliance with environmental and safety standards.

The Directors consider the Company’s liquidity position to be satisfactory, with sufficient cash resources and banking facilities in place to meet ongoing operational requirements and planned capital expenditure. Cash flow remains well managed, supported by effective working capital controls.

Based upon actions taken to date and further initiatives presently being undertaken, the Directors have full confidence in the Company's ability to sustain its profitability and continue the track record of balanced growth evident in prior years.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks and uncertainties facing the Group continue to arise from the highly competitive nature of the industry, together with ongoing increases in vehicle purchase prices, parts, and servicing costs. While vehicle lead times have stabilised during the period, lead times for bodybuilders and ancillary equipment remain extended at approximately six months, which may impact the timing of fleet investment and operational capacity.

During the year, fuel prices continued to fluctuate. The risk associated with changes in fuel costs is mitigated by the Company’s strong customer relationships, with clients generally understanding that variations in fuel prices may result in adjustments to contract pricing.

Uncertainty in fleet maintenance represents an ongoing risk, as it can be challenging to identify and resolve mechanical issues promptly across the vehicle fleet. Unexpected repairs or downtime may impact operational efficiency and costs. The Company mitigates this risk through a proactive maintenance schedule, regular inspections, and investment in staff training to ensure mechanical issues are identified and addressed as quickly as possible.

ON BEHALF OF THE BOARD:

S Noble - Director

28th April 2026

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

PRINCIPAL ACTIVITIES

The principal activities of the group in the year under review were those of haulage and the provision of logistics facilities.

DIVIDENDS

An interim dividend of £244.33112 per share was paid on 30th April 2025. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31st October 2025 will be £ 73,788 .

DIRECTORS

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

S Noble

D E Noble

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 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, HW Bedford Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

S Noble - Director

28th April 2026

Opinion

We have audited the financial statements of D & G Noble Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31st October 2025 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31st October 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:

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.

* Identifying and assessing the controls management has in place to prevent and detect fraud;

* Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;

* Challenging assumptions and judgments made by management in its significant accounting estimates and judgments.

* Identifying and testing journal entries, in particular journal entries posted with unusual account combinations; and

* Assessing the extent of compliance with the relevant laws and regulations.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusions.

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 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 accounting policy disclosure pages.

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.

Alberto Di Lorenzo FCA (Senior Statutory Auditor)

for and on behalf of HW Bedford Limited

First Floor, Woburn Court

2 Railton Road

Woburn Rd Ind Est

Kempston

Bedfordshire

MK42 7PN

28th April 2026

TURNOVER

3

11,132,126

9,828,146

Cost of sales

7,768,962

6,809,043

GROSS PROFIT

3,363,164

3,019,103

Administrative expenses

994,358

600,514

2,368,806

2,418,589

Other operating income

19,252

102,224

OPERATING PROFIT

5

2,388,058

2,520,813

Interest receivable and similar income

50,443

17,509

2,438,501

2,538,322

Interest payable and similar expenses

6

29,185

15,502

PROFIT BEFORE TAXATION

2,409,316

2,522,820

Tax on profit

7

602,345

625,110

PROFIT FOR THE FINANCIAL YEAR

1,806,971

1,897,710

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,806,971

1,897,710

Profit attributable to:

Owners of the parent

1,806,971

1,897,710

Total comprehensive income attributable to:

Owners of the parent

1,806,971

1,897,710

FIXED ASSETS

Tangible assets

10

8,007,385

7,230,570

Investments

11

-

-

Investment property

12

775,000

750,000

8,782,385

7,980,570

CURRENT ASSETS

Stocks

13

53,023

44,654

Debtors

14

2,483,178

2,451,628

Investments

15

2,512,578

2,074,245

Cash at bank and in hand

3,016,682

1,882,015

8,065,461

6,452,542

CREDITORS

Amounts falling due within one year

16

2,084,779

1,891,482

NET CURRENT ASSETS

5,980,682

4,561,060

TOTAL ASSETS LESS CURRENT LIABILITIES

14,763,067

12,541,630

CREDITORS

Amounts falling due after more than one year

17

(417,495

)

(173,217

)

PROVISIONS FOR LIABILITIES

20

(1,598,594

)

(1,354,618

)

NET ASSETS

12,746,978

11,013,795

CAPITAL AND RESERVES

Called up share capital

21

302

302

Share premium

22

1,039,325

1,039,325

Fair value reserve

22

59,960

111,085

Retained earnings

22

11,647,391

9,863,083

SHAREHOLDERS' FUNDS

12,746,978

11,013,795

The financial statements were approved by the Board of Directors and authorised for issue on 28th April 2026 and were signed on its behalf by:

S Noble - Director

FIXED ASSETS

Tangible assets

10

-

-

Investments

11

300

300

Investment property

12

-

-

300

300

CURRENT ASSETS

Debtors

14

121,857

301,332

Investments

15

2,512,578

2,074,245

Cash at bank

1,584,579

178,511

4,219,014

2,554,088

CREDITORS

Amounts falling due within one year

16

5,355

5,618

NET CURRENT ASSETS

4,213,659

2,548,470

TOTAL ASSETS LESS CURRENT LIABILITIES

4,213,959

2,548,770

CAPITAL AND RESERVES

Called up share capital

21

302

302

Retained earnings

4,213,657

2,548,468

SHAREHOLDERS' FUNDS

4,213,959

2,548,770

Company's profit for the financial year

1,738,977

823,218

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 28th April 2026 and were signed on its behalf by:

S Noble - Director

Called up

Fair

share

Retained

Share

value

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1st November 2023

302

8,039,161

1,039,325

111,085

9,189,873

Changes in equity

Dividends

-

(73,788

)

-

-

(73,788

)

Total comprehensive income

-

1,897,710

-

-

1,897,710

Balance at 31st October 2024

302

9,863,083

1,039,325

111,085

11,013,795

Changes in equity

Dividends

-

(73,788

)

-

-

(73,788

)

Total comprehensive income

-

1,858,096

-

(51,125

)

1,806,971

Balance at 31st October 2025

302

11,647,391

1,039,325

59,960

12,746,978

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st November 2023

302

1,799,038

1,799,340

Changes in equity

Dividends

-

(73,788

)

(73,788

)

Total comprehensive income

-

823,218

823,218

Balance at 31st October 2024

302

2,548,468

2,548,770

Changes in equity

Dividends

-

(73,788

)

(73,788

)

Total comprehensive income

-

1,738,977

1,738,977

Balance at 31st October 2025

302

4,213,657

4,213,959

Cash flows from operating activities

Cash generated from operations

1

3,371,145

3,195,703

Interest paid

(7,717

)

(1,034

)

Interest element of hire purchase payments paid

(21,468

)

(14,468

)

Tax paid

(420,555

)

(565,065

)

Net cash from operating activities

2,921,405

2,615,136

Cash flows from investing activities

Purchase of tangible fixed assets

(1,743,417

)

(1,467,347

)

Purchase of securities

(4,506,418

)

(2,823,916

)

Proceeds from sale of tang fixed assets

63,250

84,762

Proceeds from sale of securities

4,116,150

1,270,000

Interest received

50,443

17,509

Net cash from investing activities

(2,019,992

)

(2,918,992

)

Cash flows from financing activities

Hire purchase contracts

307,042

(348,068

)

Equity dividends paid

(73,788

)

(73,788

)

Net cash from financing activities

233,254

(421,856

)

Increase/(decrease) in cash and cash equivalents

1,134,667

(725,712

)

Cash and cash equivalents at beginning of year

2

1,882,015

2,607,727

Cash and cash equivalents at end of year

2

3,016,682

1,882,015

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

31/10/25

31/10/24

£

£

Profit before taxation

2,409,316

2,522,820

Depreciation charges

894,980

801,034

Profit on disposal of fixed assets

(39,693

)

(26,041

)

Loss on revaluation of fixed assets

45,000

-

Impairment of assets

(70,000

)

-

Finance costs

29,185

15,502

Finance income

(50,443

)

(17,509

)

3,218,345

3,295,806

(Increase)/decrease in stocks

(8,369

)

16,755

Increase in trade and other debtors

(31,550

)

(323,351

)

Increase in trade and other creditors

192,719

206,493

Cash generated from operations

3,371,145

3,195,703

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 31st October 2025

31/10/25

1/11/24

£

£

Cash and cash equivalents

3,016,682

1,882,015

Year ended 31st October 2024

31/10/24

1/11/23

£

£

Cash and cash equivalents

1,882,015

2,607,727

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/11/24

Cash flow

At 31/10/25

£

£

£

Net cash

Cash at bank and in hand

1,882,015

1,134,667

3,016,682

1,882,015

1,134,667

3,016,682

Liquid resources

Current asset investments

2,074,245

438,333

2,512,578

2,074,245

438,333

2,512,578

Debt

Finance leases

(415,306

)

(307,042

)

(722,348

)

(415,306

)

(307,042

)

(722,348

)

Total

3,540,954

1,265,958

4,806,912

1.	STATUTORY INFORMATION

D & G Noble 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.

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 as modified by the revaluation of certain assets.

The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Basis of consolidation

The group accounts consolidate the accounts of D & G Noble Holdings Limited and its subsidiary undertakings drawn up to 31st October each year.

The results of subsidiaries acquired or sold are consolidated for the periods from or to the date on which control passed. Acquisitions are accounting for under the acquisition method with goodwill, representing any excess of the fair value of the consolidation given over the fair value of the identifiable assets and liabilities acquired, being amortised over the expected useful life of five years.

Significant judgements and estimates

In the application of the Company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated 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 where the revision affects only that period, or in the period of revision nd future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Depreciation

Depreciation is provided by reference to the age and condition of the assets concerned and estimated future use. The gain or loss arising on the disposals or retirement of an item of plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in the income statement,

Turnover

Turnover for the Group represents haulage sales and storage facilities supplied, Furthermore there are revenue streams for the letting of commercial and residential properties.

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Group and revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

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.

Improvements to property

-

10% on cost

Plant and machinery

-

20% on reducing balance

Fixtures and fittings

-

15% on reducing balance

Motor vehicles

-

25% on reducing balance and 10 years less residual balance

Computer equipment

-

33% on cost

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

The freehold property (excluding land) is depreciated over 50 years after taking into account the residual value of the building.

Investment property

Investment properties for which fair value can be measured reliably at each reporting date with changes in fair value recognised in profit or loss. No formal valuation has taken place during the year by a professional independent valuer. The current fair value is based on a recognised valuation model.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

Financial instruments

The Company has elected to apply the provisions of section 11 "Basic Financial Instruments" and section 12 " Other Financial Instruments Issues" of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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.

Basic financial assets

Basic financial assets, which include trade debtors, are initially measured at transactions price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price.Such assets are subsequently carried at fair value nd the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed when the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit and loss.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.