REGISTERED NUMBER: 10551691 (England and Wales)

Infront Sports & Media UK Limited

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements for the Year Ended 31 December 2025

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

5

Consolidated Income Statement

8

Consolidated Other 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

16

DIRECTORS:

A Kranz

P Mihajlovic

REGISTERED OFFICE:

Burleigh House

355-359 Strand

London

WC2R 0HS

REGISTERED NUMBER:

10551691 (England and Wales)

AUDITORS:

Smailes Goldie

Chartered Accountants

Statutory Auditor

Regent's Court

Princess Street

Hull

East Yorkshire

HU2 8BA

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

REVIEW OF BUSINESS

Infront Bettor, the betting unit of the Infront group headed up from Infront Sports & Media Ltd continued its significant growth throughout the year. This was noted by a growth in clients during the year. The client growth led to direct increases in revenues for the Infront bettor business unit. In the summer of 2025 the sales team, led by the UK workforce, also had some significant client renewals. On top of this, the rights portfolio continued to grow through 2025 with some notable wins and long term partnership agreements. Operationally the team went from strength to strength delivering well over 2 billion streams to consumers across the globe exceeding all service level agreements. The team were happy to move to larger and more equipped offices in the summer of 2025 to house the expanding nature of the business.

The Threshold business delivered a strong improvement in profitability, with growth on 2024 results. This result was achieved despite a reduction in revenue, reflecting a deliberate strategic shift to put Ride Across Britain on hold. Gross profit has increased driven by additional public event places, operational efficiency, and disciplined pricing. This margin improvement was reinforced by tight overhead control, with indirect cost increases limited despite ongoing inflationary pressures. The core client portfolio remained strong, with established partners continuing to underpin core profitability and provide a stable earnings base. In addition, the Threshold Event portfolio delivered significant margin and revenue growth, particularly across the Endure24 events. This strong performance supported reinvestment into the successful launch of new concepts, including Ride Cymru and Endure Relays.

Business administrative expenses remained relatively consistent compared to 2024, with the largest expense being staff costs. Interest payable and similar expenses decreased due to intercompany loan repayments made throughout 2025.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks and uncertainties affecting the business include the following:-

The Group's risk management assessment is performed by the management, under the supervision of the Board of Directors, which is the ultimate responsible. The Board evaluates the risk situation on Group level on a regular basis. Relevant risks are divided into strategic, financial, operational and compliance risks. The risk management process includes activities for risk identification, risk assessment, risk valuation and risk control. Group management regularly reviews the underlying risk management processes.

The Group is exposed to market risks, credit risks and liquidity risks that are managed by the Group management. The Parent company's Audit, Finance and Risk Committee (AFRC) oversees the management and advises on financial risks and the appropriate financial risk governance framework for the Group. The AFRC provides assurance to the Group management that the Group's financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured, and managed in accordance with the Group's policies and risk objectives.These in turn are communicated to the UK Group's Board of Directors and are used to inform their decision making with regards to risks and mitigating policies.

The Group's main financial assets deriving from its operations include loans, trade receivables, contract assets, cash, and short-term deposits. The Group's main financial liabilities, other than derivatives, comprise interest bearing liabilities, liabilities from acquisition of companies as well as trade payables and contract liabilities. The main purpose of these financial liabilities is to finance Infront Group's operations.

The Group's compliance management system has a strong focus on the risk of corruption and bribery and is ISO-certified (Compliance management systems and Anti-bribery management systems). This includes sophisticated training and communication concepts to raise awareness and prevent from any misconduct, approval processes for gifts and hospitality requests, a due diligence process for agents and consultants as well as a speak-up line available for all employees to report concerns on an anonymous basis.

ANALYSIS USING KEY PERFORMANCE INDICATORS

The company's key performance indicators during the year were as follows:

2025

2024

Change

£'000

£'000

%

Turnover

20,906

17,887

+16.9%

Gross Profit

9,014

4,304

+109.4%

Operating Profit

6,705

1,951

+243.7%

%

%

Gross profit margin

43.1

24.1

+78.8%

Operating profit margin

32.1

10.9

+194.5%

FUTURE DEVELOPMENTS

For Infront Bettor, 2026 kicked off with a successful delivery of the Australian open. Multiple client renewals are happening in 2026 and have been the focus of the sales team with some very positive noises on the expected outcome of these discussions. Positive projections for the year are expected to be delivered as the business continues to go from strength to strength at a time when the competitive landscape is shrinking and the opportunity to take more market share of an expanding industry is ahead of us.

Looking into the future, the Threshold business is well positioned for continued profitable growth in 2026 across both sides of the organisation. High margin growth is expected across the running portfolio and Ride Cymru, supported by consolidated multi year contracts and new contract wins on the client side.

PRINCIPLE ACTIVITY

The principle activity of the group is that of a sports marketing and events group.

ON BEHALF OF THE BOARD:

P Mihajlovic - Director

18 May 2026

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

PRINCIPAL ACTIVITIES

The principal activities of the group in the year under review were those of a sports marketing and events group.

DIVIDENDS

On 14th May 2026 a dividend of £4,780,656 was declared

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2025 to the date of this report.

A Kranz

P Mihajlovic

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Smailes Goldie, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

P Mihajlovic - Director

18 May 2026

Opinion

We have audited the financial statements of Infront Sports & Media UK Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 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 31 December 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 focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the group, including UK Accounting standards (FRS102), the Companies Act 2006 and taxation legislation. We also considered those laws and regulations that may have a material indirect impact on the group's financial statements including data protection, anti-bribery, employment, environmental and health and safety legislation. An understanding of these laws and regulations and the extent of compliance was obtained through discussion with management and inspecting legal and regulatory correspondence.

We assessed the susceptibility of the group's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management 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;

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

-Reviewing correspondence with HMRC, relevant regulatory bodies including the Health and Safety Executive and the groups legal advisers.

Due to the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances 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.

The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission, or misrepresentation.

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.

Matthew Fox F.C.C.A (Senior Statutory Auditor)

for and on behalf of Smailes Goldie

Chartered Accountants

Statutory Auditor

Regent's Court

Princess Street

Hull

East Yorkshire

HU2 8BA

18 May 2026

TURNOVER

3

20,906,090

17,886,775

Cost of sales

11,895,002

13,583,087

GROSS PROFIT

9,011,088

4,303,688

Administrative expenses

2,306,224

2,352,356

OPERATING PROFIT

5

6,704,864

1,951,332

Interest receivable and similar income

346,808

383,212

7,051,672

2,334,544

Interest payable and similar expenses

6

899,111

1,087,946

PROFIT BEFORE TAXATION

6,152,561

1,246,598

Tax on profit

7

1,663,712

439,493

PROFIT FOR THE FINANCIAL YEAR

4,488,849

807,105

Profit attributable to:

Owners of the parent

4,488,849

807,105

PROFIT FOR THE YEAR

4,488,849

807,105

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

4,488,849

807,105

Total comprehensive income attributable to:

Owners of the parent

4,488,849

807,105

FIXED ASSETS

Intangible assets

9

762,452

1,263,335

Tangible assets

10

148,953

81,866

Investments

11

-

-

911,405

1,345,201

CURRENT ASSETS

Debtors

12

11,114,781

8,143,232

Cash at bank

455,874

353,224

11,570,655

8,496,456

CREDITORS

Amounts falling due within one year

13

7,292,940

6,400,252

NET CURRENT ASSETS

4,277,715

2,096,204

TOTAL ASSETS LESS CURRENT LIABILITIES

5,189,120

3,441,405

CREDITORS

Amounts falling due after more than one year

14

(1,352,021

)

(4,083,293

)

PROVISIONS FOR LIABILITIES

16

-

(9,862

)

NET ASSETS/(LIABILITIES)

3,837,099

(651,750

)

CAPITAL AND RESERVES

Called up share capital

17

100,001

100,001

Retained earnings

18

3,737,098

(751,751

)

SHAREHOLDERS' FUNDS

3,837,099

(651,750

)

The financial statements were approved by the Board of Directors and authorised for issue on 18 May 2026 and were signed on its behalf by:

P Mihajlovic - Director

FIXED ASSETS

Intangible assets

9

-

-

Tangible assets

10

36,822

3,447

Investments

11

4,127,282

4,127,282

4,164,104

4,130,729

CURRENT ASSETS

Debtors

12

7,270,819

4,982,841

Cash at bank

49,784

97,306

7,320,603

5,080,147

CREDITORS

Amounts falling due within one year

13

5,252,028

4,674,319

NET CURRENT ASSETS

2,068,575

405,828

TOTAL ASSETS LESS CURRENT LIABILITIES

6,232,679

4,536,557

CREDITORS

Amounts falling due after more than one year

14

1,352,021

4,083,293

NET ASSETS

4,880,658

453,264

CAPITAL AND RESERVES

Called up share capital

17

100,001

100,001

Retained earnings

4,780,657

353,263

SHAREHOLDERS' FUNDS

4,880,658

453,264

Company's profit for the financial year

4,427,394

856,770

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 18 May 2026 and were signed on its behalf by:

P Mihajlovic - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2024

100,001

(1,558,856

)

(1,458,855

)

Changes in equity

Total comprehensive income

-

807,105

807,105

Balance at 31 December 2024

100,001

(751,751

)

(651,750

)

Changes in equity

Total comprehensive income

-

4,488,849

4,488,849

Balance at 31 December 2025

100,001

3,737,098

3,837,099

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2024

100,001

(503,507

)

(403,506

)

Changes in equity

Total comprehensive income

-

856,770

856,770

Balance at 31 December 2024

100,001

353,263

453,264

Changes in equity

Total comprehensive income

-

4,427,394

4,427,394

Balance at 31 December 2025

100,001

4,780,657

4,880,658

Cash flows from operating activities

Cash generated from operations

1

5,206,519

1,510,494

Interest paid

(899,111

)

(1,087,946

)

Tax paid

(1,730,042

)

(434,256

)

Net cash from operating activities

2,577,366

(11,708

)

Cash flows from investing activities

Purchase of tangible fixed assets

(90,252

)

(21,854

)

Interest received

346,808

383,212

Net cash from investing activities

256,556

361,358

Cash flows from financing activities

Loan repayments in year

(2,731,272

)

(1,313,939

)

Net cash from financing activities

(2,731,272

)

(1,313,939

)

Increase/(decrease) in cash and cash equivalents

102,650

(964,289

)

Cash and cash equivalents at beginning of year

2

353,224

1,317,513

Cash and cash equivalents at end of year

2

455,874

353,224

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

2025

2024

£

£

Profit before taxation

6,152,561

1,246,598

Depreciation charges

524,048

552,251

Finance costs

899,111

1,087,946

Finance income

(346,808

)

(383,212

)

7,228,912

2,503,583

Increase in trade and other debtors

(2,922,782

)

(1,681,072

)

Increase in trade and other creditors

900,389

687,983

Cash generated from operations

5,206,519

1,510,494

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2025

31.12.25

1.1.25

£

£

Cash and cash equivalents

455,874

353,224

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

353,224

1,317,513

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.25

Cash flow

At 31.12.25

£

£

£

Net cash

Cash at bank

353,224

102,650

455,874

353,224

102,650

455,874

Total

353,224

102,650

455,874

1.	STATUTORY INFORMATION

Infront Sports & Media UK 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.

Going Concern

In preparing these financial statements the directors have assessed the ability of the group and individual companies with the group to continue to operate for a period of at least twelve months from the date of signing the financial statements.

The group's financial statements continue to be prepared using the going concern basis following a confirmation of support from its parent company on behalf of the wider corporate group, upon which the company is operationally and financially dependant and accordingly the directors have adopted the going concern basis in preparing these financial statements. A letter of support has been received from group to this affect for a period of not less than 12 months from the approval of these financial statements.

Turnover

Revenue is recognised to the extent that is is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

- the amount of revenue can be measured reliably;

- it is probable that the Company will receive the consideration due under the contract;

- the stage of completion of the contract at the end of the reporting period can be measured reliably; and

- the costs incurred and the costs to complete the contract can be measured reliably.

Deferred Revenue

The group recognises revenue on an event by event basis and all revenue received from participants, donations and sponsorships for a specific event are deferred until the month in which the event has taken place.

Government grants

Government grants which relate to revenue are recognised in income in the period the related costs are incurred by the company for which the grant is intended to compensate. For grants which are received by the entity for which compensation for expenses or losses which have already been incurred, the grant is recognised in income when it is received or receivable.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2019, is being amortised evenly over its estimated useful life of eight years.

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 charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives as follows:

Asset Class

Depreciation Method and rate

Furniture, fittings and equipment

straight line over a useful life of 1-4 years

Other tangible assets

straight line over a useful life of 1-4 years

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.

Foreign currencies

Functional and presentation currency

The company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rate at the dates of the transaction.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Profit and Loss Account within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Borrowing Costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Cash and Cash Equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Provisions For Liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.

Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.

When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

Financial Instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Profit and Loss Account.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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.

Defined contribution pension plan

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.