REGISTERED NUMBER: 15416891 (England and Wales)

Group Strategic Report,

Report of the Directors and

Consolidated Financial Statements

for the Year Ended 30th September 2025

for

SORCERER HOLDINGS LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Profit and Loss Account

10

Consolidated Other Comprehensive Income

11

Consolidated Balance Sheet

12

Company Balance Sheet

13

Consolidated Statement of Changes in Equity

14

Company Statement of Changes in Equity

15

Consolidated Cash Flow Statement

16

Notes to the Consolidated Cash Flow Statement

17

Notes to the Consolidated Financial Statements

19

DIRECTORS:

Mr S L Humphreys

Miss K B Humphreys

REGISTERED OFFICE:

Monometer House

Rectory Grove

Leigh-On-Sea

SS9 2HN

REGISTERED NUMBER:

15416891 (England and Wales)

AUDITORS:

Barrons Limited

Chartered Accountants

& Statutory Auditors

Monometer House

Rectory Grove

Leigh on Sea

Essex

SS9 2HN

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

INTRODUCTION

The directors aim to present a balanced and comprehensive review of the development and performance of the Group's business activities during the year and its position at the year end. The review is consistent with the size and nature of the business and is written in the context of the risks and uncertainties that the company faces.

REVIEW OF BUSINESS

The directors are pleased to report an upturn in the trading performance of the Group in the financial year, which saw a 4.7% increase in turnover levels.

The directors are pleased with the impact of expanding the retail footprint of the Gift Department that was expanded toward the end of the financial year - and are confident that that the indicators point to further expansion of this opportunity in the coming year.

Gross margins on direct product sales were maintained through the year with some enhanced margins in certain product ranges strengthening which supports the focus upon offsetting rising employment costs.

The directors have reacted to another year of significant challenges in relation to rising staff costs, specifically through the impact of rising Minimum National Wage and National Insurance contributions, by monitoring carefully opportunities to restructure retail opening hours to reflect changes in customer behaviours. The directors are pleased to report that throughout the process of restructuring retail opening hours, as well as trimming staff levels in off peak trading times, there is no reported impact upon the exemplary levels of customer service in making the requisite changes. The cost increase in the year however has been severe with retail wage costs rising to 31.1% of turnover (up from 29.2%)

The business was ultimately able to report a level of gross profit margin of 19.0% (down from 19.8% in FY24). Given the continuing pressures upon wage inflation that continue to be confronted, the directors are satisfied with the retained levels of gross profits.

As highlighted last year, the directors are pleased to report that following a successful round of negotiations in this financial year end long term tenants have renewed leases favourably for a further term, the benefits of which accrued with immediate effect and which will extend into the next financial year; whilst overhead costs have been closely monitored and controlled positively.

Resultant from the above the company has reported profitability at £0.429m before tax (6.5%) compared to the previous year's profitability of £0.264m before tax (4.2%). The directors are delighted with the results as reported.

The directors recognise that economic conditions are challenging at the time of preparing this report, but with the actions around process and controls being fully implemented, the board are confident that recent profitability trends are attainable into the coming financial year and beyond.

PRINCIPAL RISKS AND UNCERTAINTIES

The directors recognise that risk is inherent in any business and seek to manage risk in a controlled manner.

The key business risks are set out as follows:

Economic - the company is subject to many of the same general economic risks faced by other businesses especially during periods of economic downturn and geopolitical turmoil. The business seeks to mitigate this risk by having a diverse range of products with a broad demographic mix of customers.

Commercial - the business operates in a competitive marketplace and faces competition from other retailers. The business seeks to mitigate this risk by continually developing and expanding product range, and offering an extensive range of high quality products.

Financing - the company retains a significant cash holding to provide flexibility around purchasing and seasonal trading impacts, whilst capital investment funding requirements are met through a combination of medium term loans.

Financial - the business has limited exposure to liquidity risk, and interest rate fluctuations. The business has established a number of policies and management tools to mitigate the risks presented.

FINANCIAL KEY PERFORMANCE INDICATORS

The key performance indicators are as follows:

2025

2024

£'000

£'000

Turnover

6,547

6,251

Gross profit

1,244

19.0%

1,236

19.8%

Operating profit

599

9.1%

375

6.0%

Pre-tax profit

429

6.6%

264

4.2%

The directors monitor a range of KPIs on a regular basis including operating efficiency, asset utilisation, liquidity and asset ratios, as well as cash flow forecasting systems.

ON BEHALF OF THE BOARD:

Mr S L Humphreys - Director

18th June 2026

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

PRINCIPAL ACTIVITIES

The principal activities of the group were that of a Garden Centre and a Holding company.

DIVIDENDS

No dividends will be distributed for the year ended 30th September 2025.

DIRECTORS

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

Mr S L Humphreys

Miss K B Humphreys

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the 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 of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently

- make judgments and accounting estimates that are reasonable and prudent

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

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

ON BEHALF OF THE BOARD:

Mr S L Humphreys - Director

18th June 2026

Opinion

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

Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.

The following laws and regulations were identified as being of significance to the entity:

- Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, Company Law, Tax and Pensions legislation, and distributable profits legislation.

- Those laws and regulations for which non-compliance may be fundamental to the operating aspects of the business and therefore may have a material effect on the financial statements include operating licence, environmental regulations, health and safety legislation.

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

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.

Russell Tillbrook FCCA (Senior Statutory Auditor)

for and on behalf of Barrons Limited

Chartered Accountants

& Statutory Auditors

Monometer House

Rectory Grove

Leigh on Sea

Essex

SS9 2HN

18th June 2026

TURNOVER

3

6,547,113

6,251,248

Cost of sales

5,303,044

5,015,564

GROSS PROFIT

1,244,069

1,235,684

Administrative expenses

958,953

1,141,947

285,116

93,737

Other operating income

313,777

281,291

OPERATING PROFIT

5

598,893

375,028

Interest receivable and similar income

72,190

51,017

671,083

426,045

Interest payable and similar expenses

6

242,497

161,799

PROFIT BEFORE TAXATION

428,586

264,246

Tax on profit

7

123,024

82,966

PROFIT FOR THE FINANCIAL YEAR

305,562

181,280

Profit attributable to:

Owners of the parent

305,562

181,280

PROFIT FOR THE YEAR

305,562

181,280

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

305,562

181,280

Total comprehensive income attributable to:

Owners of the parent

305,562

181,280

FIXED ASSETS

Tangible assets

10

7,671,202

7,754,653

Investments

11

-

-

7,671,202

7,754,653

CURRENT ASSETS

Stocks

12

1,468,449

1,169,656

Debtors

13

234,879

131,247

Cash at bank and in hand

2,412,643

2,176,631

4,115,971

3,477,534

CREDITORS

Amounts falling due within one year

14

1,782,804

1,400,357

NET CURRENT ASSETS

2,333,167

2,077,177

TOTAL ASSETS LESS CURRENT LIABILITIES

10,004,369

9,831,830

CREDITORS

Amounts falling due after more than one year

15

(6,944,236

)

(7,068,458

)

PROVISIONS FOR LIABILITIES

19

(32,585

)

(41,386

)

NET ASSETS

3,027,548

2,721,986

CAPITAL AND RESERVES

Called up share capital

20

11,000

11,000

Retained earnings

21

3,016,548

2,710,986

SHAREHOLDERS' FUNDS

3,027,548

2,721,986

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

Mr S L Humphreys - Director

FIXED ASSETS

Tangible assets

10

6,502,409

6,491,732

Investments

11

11,000

11,000

6,513,409

6,502,732

CURRENT ASSETS

Debtors

13

39,851

-

Cash at bank

2,326,006

1,768,148

2,365,857

1,768,148

CREDITORS

Amounts falling due within one year

14

1,686,520

1,215,357

NET CURRENT ASSETS

679,337

552,791

TOTAL ASSETS LESS CURRENT LIABILITIES

7,192,746

7,055,523

CREDITORS

Amounts falling due after more than one year

15

6,937,164

7,028,572

NET ASSETS

255,582

26,951

CAPITAL AND RESERVES

Called up share capital

20

11,000

11,000

Retained earnings

21

244,582

15,951

SHAREHOLDERS' FUNDS

255,582

26,951

Company's profit for the financial year

228,631

15,951

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

Mr S L Humphreys - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st October 2023

11,000

2,936,753

2,947,753

Changes in equity

Dividends

-

(407,047

)

(407,047

)

Total comprehensive income

-

181,280

181,280

Balance at 30th September 2024

11,000

2,710,986

2,721,986

Changes in equity

Total comprehensive income

-

305,562

305,562

Balance at 30th September 2025

11,000

3,016,548

3,027,548

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Changes in equity

Issue of share capital

11,000

-

11,000

Total comprehensive income

-

15,951

15,951

Balance at 30th September 2024

11,000

15,951

26,951

Changes in equity

Total comprehensive income

-

228,631

228,631

Balance at 30th September 2025

11,000

244,582

255,582

Cash flows from operating activities

Cash generated from operations

1

628,482

537,501

Interest paid

(238,558

)

(156,521

)

Interest element of hire purchase payments paid

(3,938

)

(5,278

)

Tax paid

(77,105

)

(214,031

)

Net cash from operating activities

308,881

161,671

Cash flows from investing activities

Purchase of tangible fixed assets

(41,575

)

(6,685,862

)

Sale of tangible fixed assets

14,000

-

Interest received

72,190

51,017

Net cash from investing activities

44,615

(6,634,845

)

Cash flows from financing activities

New loans in year

-

4,040,000

Loan repayments in year

(176,936

)

(1,028,706

)

Capital repayments in year

(37,157

)

(12,839

)

Amount introduced by directors

1,945,742

6,610,026

Amount withdrawn by directors

(1,849,133

)

(1,467,908

)

Equity dividends paid

-

(407,047

)

Net cash from financing activities

(117,484

)

7,733,526

Increase in cash and cash equivalents

236,012

1,260,352

Cash and cash equivalents at beginning of year

2

2,176,631

916,279

Cash and cash equivalents at end of year

2

2,412,643

2,176,631

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

2025

2024

£

£

Profit before taxation

428,586

264,246

Depreciation charges

113,046

136,110

Profit on disposal of fixed assets

(2,021

)

-

Finance costs

242,497

161,799

Finance income

(72,190

)

(51,017

)

709,918

511,138

(Increase)/decrease in stocks

(298,793

)

161,375

Increase in trade and other debtors

(103,632

)

(15,212

)

Increase/(decrease) in trade and other creditors

320,989

(119,800

)

Cash generated from operations

628,482

537,501

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 30th September 2025

30.9.25

1.10.24

£

£

Cash and cash equivalents

2,412,643

2,176,631

Year ended 30th September 2024

30.9.24

1.10.23

£

£

Cash and cash equivalents

2,176,631

916,279

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.10.24

Cash flow

At 30.9.25

£

£

£

Net cash

Cash at bank and in hand

2,176,631

236,012

2,412,643

2,176,631

236,012

2,412,643

Debt

Finance leases

(59,966

)

37,158

(22,808

)

Debts falling due within 1 year

(176,936

)

(11,082

)

(188,018

)

Debts falling due after 1 year

(3,820,484

)

188,017

(3,632,467

)

(4,057,386

)

214,093

(3,843,293

)

Total

(1,880,755

)

450,105

(1,430,650

)

1.	STATUTORY INFORMATION

Sorcerer Holdings Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Basis of consolidation

In the prior year, on 30th June 2024, the company merged with Summerhill Nurseries Limited using a share for share swap meeting the requirements for merger accounting. As a result, the directors decided to prepare the financial statements under the merger accounting method.

The following are the practical effects of merger accounting:

(a)

the new shares issued as consideration for the merger, and therefore the 'parent's' investment in the 'acquired' company, are recorded at their nominal amount in the books of the acquiring company;

(b)

the net assets of the two companies are combined using existing book values, with adjustments made as necessary to ensure that the same accounting policies are applied to the calculation of the net assets of both companies;

(c)

no amount is recognised as consideration for goodwill; and

(d)

the consolidated profit and loss account includes the profits of each company for the entire period, regardless of the date of the merger, and the comparative amounts in the consolidated accounts are restated to the aggregate of the amounts recorded by the two companies. The only exception is the disclosure of directors' remuneration. Adjustments are made as necessary to ensure that the profits of the combining companies has been calculated using consistent accounting policies.

Turnover

The 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 the revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

-

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 the consideration due under the transaction; and

-

the costs incurred or to be incurred in respect of the transaction can be measured reliably.

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

Rents receivable

Rent receivable is measured as the fair value of consideration received as per the terms of the lease agreement. Rent is received monthly on an accruals basis.

Tangible fixed assets

Tangible fixed assets are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to 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 residual value over their estimated useful lives, using either a straight line or reducing balance method, as indicated below.

Depreciation is provided on the following basis:

Leasehold property

- Straight Line over 25 years

Freehold property

- No depreciation - High residual value depreciation not deemed necessary

Plant and machinery etc.

- 20% Straight Line, 25% Straight Line and 33% Straight Line

The asset's 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 disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Stocks

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

At each balance sheet 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 and loss.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Profit and Loss Account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

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.