REGISTERED NUMBER: 08204925 (England and Wales)

ROBINSONS LOGISTICS GROUP LIMITED

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2025

Page

Group Strategic Report

1

Report of the Directors

3

Report of the Independent Auditors

5

Consolidated Income Statement

9

Consolidated Other Comprehensive Income

10

Consolidated Balance Sheet

11

Company Balance Sheet

12

Consolidated Statement of Changes in Equity

13

Company Statement of Changes in Equity

14

Consolidated Cash Flow Statement

15

Notes to the Consolidated Cash Flow Statement

16

Notes to the Consolidated Financial Statements

18

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

REVIEW OF BUSINESS

Introduction

Robinsons Logistics Group Ltd (the group) is a family business which offers a full vehicle refurbishment and Pre Delivery Inspection (PDI) service solution with its bodyshop facility for manufacturers, rental and fleet companies in the UK.

The groups head office is in Corby, Northants and also offers a full vehicle logistics transportation service with car enclosed transporters, 11 plus car transporters and a general haulage division covering the UK and Europe.

Business environment

Each year has bought new challenges and with the recent budget, we will see an increase in our cost base in 2025/26 the directors and senior management team are confident that the business will adapt the business to face the future.

Business model

The business operates a modern fleet of 60 vehicle transporters to undertake the collection and delivery of vehicles all over the UK, with a covered in fleet to operate in both the UK and Europe.

Fleet Solutions provides a full bodyshop vehicle refurbishment and PDI service solution for OEM's and fleet customers.

The general haulage division offers the distribution of moving anything from a single pallet to a full 28 tonne load across the UK.

Each operation is monitored using a series of KPI's to record the daily, weekly, and monthly performance to meet customer's expectations.

PRINCIPAL RISKS AND UNCERTAINTIES

Risk management

The control and management of risk is addressed through polices and procedures and internal controls.

Customer risk

The group generates regular KPI's for its key clients and ensures that regular meetings are held with clients to ensure that all their expectations are met and should any of the clients needs change that, we can adapt our service(s) to meet their requirements.

Credit risk

The group operates a clear procedure for assessing each customer's risk and allocating credit limits and then managing those limits. The amounts presented in the balance sheet for trade debtors are net of doubtful debts. The group has no significant concentration of debtors.

Cash flow risk

The directors have continued to reinvest a significant amount of cash into the business, thereby continually increasing the net worth of the business and reducing the level of debt. The directors believe that the level of investment is a must to keep a modern business within their sector(s) involving a high level of capital expenditure.

Heath and safety

The directors also have a comprehensive program of risk assessment and safe working practices in place and a program of training to minimise the risk in the workplace.

FINANCIAL KEY PERFORMANCE INDICATORS

The year to 30 September 2025 was yet another uncertain year in the automotive industry, with the sector trying to promote the use of electric vehicles. Robinsons still managed to secure additional OEM business and new fleet and OEM contracts.

The directors consider the following Key Performance Indicators when assessing the performance of the group:

Turnover

Turnover for the year increased by 8.75% to £12.1m (2024 - £11.2m)

Gross Profit Margin

Gross profit margin for the year was 22.67% (2024 - 21.43%)

Profit Before Tax

Profit before tax was £0.87m (2024 - £0.95m)

The directors are pleased to report that the group continued to develop its business with good customer retention along with the development of new business.

ON BEHALF OF THE BOARD:

Mrs L Robinson - Director

5 May 2026

The directors present their report with the financial statements of the company and the group for the year ended 30 September 2025.

PRINCIPAL ACTIVITIES

The principal activities of the group in the year under review were those of vehicle transportation, warehousing and vehicle accident repairs.

DIVIDENDS

Interim dividends were paid during the year. The director recommends that no final dividend be paid.

The total distribution of dividends for the year ended 30 September 2025 will be £88,550.

FUTURE DEVELOPMENTS

There are no planned changes in the groups activities.

DIRECTORS

Mrs L Robinson has held office during the whole of the period from 1 October 2024 to the date of this report.

Other changes in directors holding office are as follows:

B J Robinson - appointed 14 March 2025

POST BALANCE SHEET EVENTS

There have been no significant events affecting the group since the balance sheet date.

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, CFW Accountants LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mrs L Robinson - Director

5 May 2026

Opinion

We have audited the financial statements of Robinsons Logistics Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2025 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 30 September 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 identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we consider the following:

- the nature of the industry and sector, control environment and business performance;

- results of our enquiries of management and those charged with governance about their own identification and assessment of the risks of irregularities;

- any matters we identified having obtained and reviewed the Group's documentation of their policies and procedures relating to:

- identifying, evaluating and complying with laws and regulations and whether they were aware of any

instances of non-compliance;

- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected

or alleged fraud;

- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;

- the matters discussed among the audit engagement team and involving other members of staff requiring consultation regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the group operates in, focusing on provisions of those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the Companies Act 2006, Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (UK GAAP), pensions legislation and tax legislation.

In addition, we considered the provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the group's ability to operate or to avoid a material penalty.

Audit response to risks identified

As a result of performing the above, our procedures to respond to risks identified included the following:

- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

- enquiring of management and those charged with governance concerning actual and potential litigation and claims;

- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; and

- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicate relevant identified laws and regulations and potential fraud risks to all engagement team members, including other members of staff consulted, and remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

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.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

Mrs Kim Leslie Parry FCCA (Senior Statutory Auditor)

for and on behalf of CFW Accountants LLP

Chartered Accountants

& Statutory Auditors

3 Weekley Wood Close

Kettering

Northamptonshire

NN14 1UQ

6 May 2026

TURNOVER

3

12,145,098

11,168,690

Cost of sales

(9,391,358

)

(8,775,607

)

GROSS PROFIT

2,753,740

2,393,083

Administrative expenses

(1,696,996

)

(1,288,439

)

OPERATING PROFIT

5

1,056,744

1,104,644

Interest receivable and similar income

34

915

1,056,778

1,105,559

Interest payable and similar expenses

6

(183,349

)

(156,251

)

PROFIT BEFORE TAXATION

873,429

949,308

Tax on profit

7

(175,281

)

(301,778

)

PROFIT FOR THE FINANCIAL YEAR

698,148

647,530

Profit attributable to:

Owners of the parent

698,148

647,530

PROFIT FOR THE YEAR

698,148

647,530

OTHER COMPREHENSIVE INCOME

Revaluation in year

147,593

337,814

Income tax relating to other comprehensive income

(2,235

)

(42,805

)

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

145,358

295,009

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

843,506

942,539

Total comprehensive income attributable to:

Owners of the parent

843,506

942,539

FIXED ASSETS

Tangible assets

10

5,535,227

5,762,008

Investments

11

-

-

5,535,227

5,762,008

CURRENT ASSETS

Debtors

12

2,232,525

2,013,152

Cash at bank and in hand

443,802

444,240

2,676,327

2,457,392

CREDITORS

Amounts falling due within one year

13

2,877,293

3,088,308

NET CURRENT LIABILITIES

(200,966

)

(630,916

)

TOTAL ASSETS LESS CURRENT LIABILITIES

5,334,261

5,131,092

CREDITORS

Amounts falling due after more than one year

14

(1,200,630

)

(1,922,366

)

PROVISIONS FOR LIABILITIES

18

(570,717

)

(400,768

)

NET ASSETS

3,562,914

2,807,958

CAPITAL AND RESERVES

Called up share capital

19

301

301

Revaluation reserve

20

419,406

295,724

Retained earnings

20

3,143,207

2,511,933

SHAREHOLDERS' FUNDS

3,562,914

2,807,958

The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on 5 May 2026 and were signed on its behalf by:

Mrs L Robinson - Director

FIXED ASSETS

Tangible assets

10

-

-

Investments

11

301

301

301

301

CURRENT ASSETS

Debtors

12

651,445

671,519

Cash at bank

45,131

46,001

696,576

717,520

CREDITORS

Amounts falling due within one year

13

350,876

367,520

NET CURRENT ASSETS

345,700

350,000

TOTAL ASSETS LESS CURRENT LIABILITIES

346,001

350,301

CAPITAL AND RESERVES

Called up share capital

19

301

301

Retained earnings

345,700

350,000

SHAREHOLDERS' FUNDS

346,001

350,301

Company's profit for the financial year

84,250

82,500

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 and authorised for issue by the Board of Directors and authorised for issue on 5 May 2026 and were signed on its behalf by:

Mrs L Robinson - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 October 2023

301

1,944,875

2,743

1,947,919

Changes in equity

Total comprehensive income

-

649,558

292,981

942,539

Dividends

-

(82,500

)

-

(82,500

)

Balance at 30 September 2024

301

2,511,933

295,724

2,807,958

Changes in equity

Total comprehensive income

-

719,824

123,682

843,506

Dividends

-

(88,550

)

-

(88,550

)

Balance at 30 September 2025

301

3,143,207

419,406

3,562,914

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 October 2023

301

350,000

350,301

Changes in equity

Total comprehensive income

-

82,500

82,500

Dividends

-

(82,500

)

(82,500

)

Balance at 30 September 2024

301

350,000

350,301

Changes in equity

Total comprehensive income

-

84,250

84,250

Dividends

-

(88,550

)

(88,550

)

Balance at 30 September 2025

301

345,700

346,001

Cash flows from operating activities

Cash generated from operations

1

1,731,005

2,085,017

Interest paid

(326

)

(553

)

Interest element of hire purchase and finance lease rental payments paid

(183,023

)

(155,698

)

Net cash from operating activities

1,547,656

1,928,766

Cash flows from investing activities

Purchase of tangible fixed assets

(301,892

)

(188,878

)

Sale of tangible fixed assets

96,377

81,211

Interest received

34

915

Net cash from investing activities

(205,481

)

(106,752

)

Cash flows from financing activities

Loan repayments in year

(10,000

)

-

Finance advances/(repayments) in year

(1,252,823

)

(1,605,093

)

Amount introduced by directors

-

845

Amount withdrawn by directors

(1,270

)

-

Equity dividends paid

(88,550

)

(82,500

)

Net cash from financing activities

(1,352,643

)

(1,686,748

)

(Decrease)/increase in cash and cash equivalents

(10,468

)

135,266

Cash and cash equivalents at beginning of year

2

443,170

307,904

Cash and cash equivalents at end of year

2

432,702

443,170

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

2025

2024

£

£

Profit before taxation

873,429

949,308

Depreciation charges

925,497

879,543

Loss/(profit) on disposal of fixed assets

15,037

(6,054

)

Loss on revaluation of fixed assets

51,229

154,918

Finance costs

183,349

156,251

Finance income

(34

)

(915

)

2,048,507

2,133,051

Increase in trade and other debtors

(219,373

)

(278,244

)

(Decrease)/increase in trade and other creditors

(98,129

)

230,210

Cash generated from operations

1,731,005

2,085,017

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 September 2025

30.9.25

1.10.24

£

£

Cash and cash equivalents

443,802

444,240

Bank overdrafts

(11,100

)

(1,070

)

432,702

443,170

Year ended 30 September 2024

30.9.24

1.10.23

£

£

Cash and cash equivalents

444,240

319,018

Bank overdrafts

(1,070

)

(11,114

)

443,170

307,904

3.	ANALYSIS OF CHANGES IN NET DEBT

Other

non-cash

At 1.10.24

Cash flow

changes

At 30.9.25

£

£

£

£

Net cash

Cash at bank

and in hand

444,240

(438

)

443,802

Bank overdrafts

(1,070

)

(10,030

)

(11,100

)

443,170

(10,468

)

432,702

Debt

Hire purchase and

finance leases

(3,067,257

)

1,252,823

-

(2,226,309

)

Debts falling due

within 1 year

(10,000

)

3,338

-

(6,662

)

Debts falling due

after 1 year

(6,662

)

6,662

-

-

(3,083,919

)

1,262,823

-

(2,232,971

)

Total

(2,640,749

)

1,252,355

-

(1,800,269

)

1.	STATUTORY INFORMATION

Robinsons Logistics Group Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address are as below:

Registered number:

08204925

Registered office:

3 Earlstrees Road

Earlstrees Industrial Estate

Corby

Northamptonshire

NN17 4AZ

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.

Basis of consolidation

The consolidated financial statements present the results of the company and its subsidiaries ("the group") as they formed a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.

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 the revision and 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 to to write off the cost or valuation of assets less their residual value over estimated useful lives at rates detailed below. The provision for depreciation for the group at the beginning and end of the year, together with the charge for the year are shown in Note 10.

Turnover

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

Tangible fixed assets

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

Leasehold property

-

10% on cost and 5% on cost

Plant and machinery

-

25% on reducing balance and 10% on cost

Fixtures and fittings

-

25% on cost, 20% on reducing balance and 20% on cost

Motor vehicles

-

25% on reducing balance and over the period of the lease

Heavy haulage vehicles

-

10% on reducing balance

The directors review depreciation rates and residual values including revaluations of the heavy haulage on an annual basis. Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, 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.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the group. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the Consolidated Statement of Comprehensive Income so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Pension costs and other post-retirement benefits

The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.