REGISTERED NUMBER: 13117698 (England and Wales)

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements for the Year Ended 31 December 2025

for

RJF Property Investments Ltd

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

5

Consolidated Income Statement

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:

R J Froomberg

A Weidenbaum

REGISTERED OFFICE:

Avenue One

Letchworth Garden City

Hertfordshire

SG6 2WW

REGISTERED NUMBER:

13117698 (England and Wales)

AUDITORS:

GH Audit Limited

Unit 1b

Focus 4

Fourth Avenue

Letchworth

Hertfordshire

SG6 2TU

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

Business overview

The principal activity of the Group is the manufacture and distribution of first aid kits and supplies, as well as the provision of first aid training courses and other safety training services.

The Group primarily serves the wholesale and distributor first aid supply market.

REVIEW OF BUSINESS

In the year ended 31 December 2025, the Group made a profit before tax of £148k (2024: £201k). Excluding one-off Exceptional costs, profit before tax was £204k for 2025.

The business saw healthy sales and margin growth in 2025. Top-line sales growth versus the prior year was +2.9%. Excluding the Occupational Health Recruitment channel, which closed in July 2024, underlying sales grew +4.9% year-on-year.

Gross margin improved by 1.1 percentage points compared to the prior year (2025: 48.5%; 2024: 47.4%).

These improvements reflect the work undertaken by the business, particularly over the last two years, to grow the distributor network and develop a robust pricing strategy.

Administrative costs, excluding Exceptional items, increased by 6.9% compared to prior year. The Group was impacted by unavoidable increases resulting from government policy changes (including national insurance), as well as broader inflationary pressures.

The Group's stock position remained level year-on-year, with the 31 December 2025 balance at £1.3m (2024: £1.3m). The reduction in stock levels achieved during 2024 resulted in the Group reaching an optimal level of inventory, which has been maintained throughout 2025.

The balance sheet remains stable. Cash at bank at the year-end was £217k compared with £117k in the prior year.

PRINCIPAL RISKS AND UNCERTAINTIES

The business imports goods for resale and is therefore exposed to foreign exchange risk. This is mitigated through strategic planning of purchases, maintaining competitive supplier arrangements, and using forward contracts with foreign exchange partners.

Freight rates and wider supply chain disruption continue to present risks due to external global factors.

The Group continues to monitor freight and supplier costs closely and has implemented processes and systems to respond to cost volatility.

Risk is further mitigated by servicing multiple market sectors and maintaining a broad customer portfolio.

FINANCIAL KEY PERFORMANCE INDICATORS

The Group uses a range of key performance indicators to monitor performance, including sales performance, gross profit percentage, control of overheads, EBITDA performance and cash flow forecasting.

All KPIs are measured against a detailed annual budget. Variances are thoroughly investigated and appropriate actions taken where necessary.

ON BEHALF OF THE BOARD:

R J Froomberg - Director

1 June 2026

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

DIVIDENDS

The total distribution of dividends for the year ended 31 December 2025 was £204,000 (2024: £188,000).

DIRECTORS

R J Froomberg has held office during the whole of the period from 1 January 2025 to the date of this report.

Other changes in directors holding office are as follows:

A Weidenbaum - appointed 1 October 2025

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

ON BEHALF OF THE BOARD:

R J Froomberg - Director

1 June 2026

Opinion

We have audited the financial statements of RJF Property Investments Ltd (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:

We obtained an understanding of the legal and regulatory framework applicable to the Company, and the industry in which it operates by making enquiries of management. We also enquired as to whether there were any instances of non compliance with laws and regulations or whether there were any instances of fraud detected or suspected. The key laws and regulations considered include the UK Companies Act and UK Tax Legislation.

In addition, we considered 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 company’s ability to operate or to avoid a material penalty. These included compliance with Health and Safety legislation and the regulators specifically overseeing the industry.

We obtained an understanding of the Company's operations, including the nature of the company, its control environment, business performance and its key performance indicators.

We considered the extent to which non-compliance would have a material impact on the financial statements. We also evaluated the managements incentives and opportunities for fraudulent manipulation of the financial statements (including the management override of controls) and determined that the principal risks were related to:

- Management bias in accounting estimates; and

- Revenue recognition

We assessed the susceptibility of the Company's financial statements to material misstatement. Audit procedures performed by the engagement team include:

- Enquiries of management about their own identification and assessment of risk of irregularities

- Evaluation of the processes and controls established to address the risk of irregularities and fraud

- Testing manual journals, specifically those relating to large or unusual entries or entries relating to management estimates

- Testing the assumptions and judgements made by management in its significant accounting estimates, including reviewing historical data to assess the appropriateness of previous assessments

We assessed the appropriateness of the competence and capabilities of the engagement team, including the teams knowledge of the industry and the appropriateness of their practical experience through training and participation with audit engagements of a similar nature.

We also communicated the relevant laws and regulations and fraud risk indicators to the engagement team and remained vigilant throughout the audit process for indications of fraud or non-compliance.

Because of 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. 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.

Emma Wilsher FCA (Senior Statutory Auditor)

for and on behalf of GH Audit Limited

Unit 1b

Focus 4

Fourth Avenue

Letchworth

Hertfordshire

SG6 2TU

1 June 2026

TURNOVER

4

9,148,072

8,892,109

Cost of sales

4,706,845

4,675,005

GROSS PROFIT

4,441,227

4,217,104

Administrative expenses

4,047,798

3,801,961

OPERATING PROFIT

6

393,429

415,143

Exceptional items

7

55,868

-

337,561

415,143

Interest payable and similar expenses

8

189,310

214,220

PROFIT BEFORE TAXATION

148,251

200,923

Tax on profit

9

47,290

57,936

PROFIT FOR THE FINANCIAL YEAR

100,961

142,987

FIXED ASSETS

Intangible assets

12

97,934

11,640

Tangible assets

13

4,391,088

4,457,059

Investments

14

-

-

4,489,022

4,468,699

CURRENT ASSETS

Stocks

15

1,273,873

1,251,595

Debtors

16

1,466,829

1,596,090

Cash at bank and in hand

216,676

116,936

2,957,378

2,964,621

CREDITORS

Amounts falling due within one year

17

2,385,022

2,113,704

NET CURRENT ASSETS

572,356

850,917

TOTAL ASSETS LESS CURRENT LIABILITIES

5,061,378

5,319,616

CREDITORS

Amounts falling due after more than one year

18

2,339,570

2,494,769

NET ASSETS

2,721,808

2,824,847

CAPITAL AND RESERVES

Called up share capital

23

100

100

Retained earnings

24

2,721,708

2,824,747

SHAREHOLDERS' FUNDS

2,721,808

2,824,847

The financial statements were approved by the Board of Directors and authorised for issue on 1 June 2026 and were signed on its behalf by:

R J Froomberg - Director

FIXED ASSETS

Intangible assets

12

-

-

Tangible assets

13

3,995,475

4,023,030

Investments

14

100

100

3,995,575

4,023,130

CURRENT ASSETS

Debtors

16

14,710

18,414

Cash at bank

788

600

15,498

19,014

CREDITORS

Amounts falling due within one year

17

1,518,209

1,467,665

NET CURRENT LIABILITIES

(1,502,711

)

(1,448,651

)

TOTAL ASSETS LESS CURRENT LIABILITIES

2,492,864

2,574,479

CREDITORS

Amounts falling due after more than one year

18

2,199,759

2,354,200

NET ASSETS

293,105

220,279

CAPITAL AND RESERVES

Called up share capital

23

100

100

Retained earnings

293,005

220,179

SHAREHOLDERS' FUNDS

293,105

220,279

Company's profit for the financial year

276,826

284,157

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 1 June 2026 and were signed on its behalf by:

R J Froomberg - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2024

100

2,869,760

2,869,860

Changes in equity

Dividends

-

(188,000

)

(188,000

)

Total comprehensive income

-

142,987

142,987

Balance at 31 December 2024

100

2,824,747

2,824,847

Changes in equity

Dividends

-

(204,000

)

(204,000

)

Total comprehensive income

-

100,961

100,961

Balance at 31 December 2025

100

2,721,708

2,721,808

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2024

100

124,022

124,122

Changes in equity

Dividends

-

(188,000

)

(188,000

)

Total comprehensive income

-

284,157

284,157

Balance at 31 December 2024

100

220,179

220,279

Changes in equity

Dividends

-

(204,000

)

(204,000

)

Total comprehensive income

-

276,826

276,826

Balance at 31 December 2025

100

293,005

293,105

Cash flows from operating activities

Cash generated from operations

1

840,971

907,290

Interest paid

(174,365

)

(206,144

)

Interest element of hire purchase payments paid

(14,945

)

(8,076

)

Deferred Tax

(46,220

)

(57,936

)

Net cash from operating activities

605,441

635,134

Cash flows from investing activities

Purchase of intangible fixed assets

(97,194

)

-

Purchase of tangible fixed assets

(76,055

)

(109,806

)

Net cash from investing activities

(173,249

)

(109,806

)

Cash flows from financing activities

Loan repayments in year

(128,452

)

(704,088

)

Equity dividends paid

(204,000

)

(188,000

)

Net cash from financing activities

(332,452

)

(892,088

)

Increase/(decrease) in cash and cash equivalents

99,740

(366,760

)

Cash and cash equivalents at beginning of year

2

116,936

483,696

Cash and cash equivalents at end of year

2

216,676

116,936

1.	RECONCILIATION OF PROFIT FOR THE FINANCIAL YEAR TO CASH GENERATED FROM OPERATIONS

31/12/25

31/12/24

£

£

Profit for the financial year

100,961

142,987

Depreciation charges

152,926

134,145

Finance costs

189,310

214,220

Taxation

47,290

57,936

490,487

549,288

(Increase)/decrease in stocks

(22,278

)

131,056

Decrease in trade and other debtors

128,314

181,134

Increase in trade and other creditors

244,448

45,812

Cash generated from operations

840,971

907,290

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

216,676

116,936

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

116,936

483,696

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.1.25

Cash flow

At 31.12.25

£

£

£

Net cash

Cash at bank and in hand

116,936

99,740

216,676

116,936

99,740

216,676

Liquid resources

Current asset investments

100

(100

)

-

100

(100

)

-

Debt

Finance leases

(192,713

)

(2,306

)

(195,019

)

Debts falling due within 1 year

(917,471

)

(23,683

)

(941,154

)

Debts falling due after 1 year

(2,354,200

)

154,441

(2,199,759

)

(3,464,384

)

128,452

(3,335,932

)

Total

(3,347,348

)

228,092

(3,119,256

)

1.	STATUTORY INFORMATION

RJF Property Investments Ltd 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

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

The following principal accounting policies have been applied:

Basis of consolidation

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

The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquirers identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are de-consolidated from the date control ceases.

Related party exemption

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

Turnover

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

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Turnover 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.

Sale of Goods

Turnover from the sale of goods is recognised when all of the following conditions have been met:

- The Company has transferred the significant risks and rewards of ownership to the buyer;

- The Company retains neither continuing managerial involvement to the degree usually associated

with ownership nor effective control over the goods sold;

- The amount of revenue can be measured reliably;

- It is probable that the Company will receive consideration due under the transaction; and

- The cost incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of Services

Turnover 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 met:

- The amount of revenue can be reliably measured;

- It is probable 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 reliably measured.

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.

Patents and licences are being amortised evenly over their estimated useful life of five years.

Computer software is being amortised evenly over its estimated useful life of three years.

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer's interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquire at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated Statement of Comprehensive Income over its useful economic life.

Tangible fixed assets

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

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Long-term leasehold property - 20% and over the life of lease

Plant and machinery - 20%

Motor vehicles - 20%

Fixtures and fittings - 20%

Computer equipment - 20%

Patents and licences - 20%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposal are determined by compare the proceeds with the carrying amount and are recognised in the profit or loss.

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

Financial instruments

The Group has elected to apply the provisions of Section 11 "Basic Financial Instruments" of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Group's Statement of Financial Position when the Group becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Basic 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 evidence a residual interest in the assets of the Group after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

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

Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

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.

Operating leases

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

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group 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 Statement of Financial Position. The assets of the plan are held separately from the Group in independently administered funds.

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Going concern

The financial statements have been prepared on the going concern basis, which assumes that the Group will continue to trade for the foreseeable future, being a period of at least twelve months from the date of approval of these financial statements and will be able to meet its debts as they fall due.

The directors have reviewed forecasts and budgets and are confident of the Group's ability to continue trading as a going concern for the foreseeable future.

Borrowing costs

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