REGISTERED NUMBER: 11961276 (England and Wales)

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTOR AND

CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025

FOR

FP HOLDINGS 2019 LTD

Page

Company Information

1

Group Strategic Report

2

Report of the Director

3

Report of the Independent Auditors

4

Consolidated Income Statement

8

Consolidated Other Comprehensive Income

9

Consolidated Statement of Financial Position

10

Company Statement of Financial Position

11

Consolidated Statement of Changes in Equity

12

Company Statement of Changes in Equity

13

Consolidated Statement of Cash Flows

14

Notes to the Consolidated Statement of Cash Flows

15

Notes to the Consolidated Financial Statements

16

DIRECTOR:

Mr J H Shepherd

REGISTERED OFFICE:

Unit 7-8 Manor Court

Eastfield

Scarborough

North Yorkshire

YO11 3TU

BUSINESS ADDRESS:

Thornhill Farm

Thirsk Road

Easingwold

York

YO61 3ND

REGISTERED NUMBER:

11961276 (England and Wales)

The director presents his strategic report of the company and the group for the year ended 30 September 2025.

REVIEW OF BUSINESS

The detailed results for the period and the financial position of the group at the end of the period are as shown in the attached financial statements.

The group has a profit after tax of £2,909,326 (2024 - £2,042,367), driven by a 36.1% increase in turnover on prior year, up to £22,717,629 and a research and development tax credit for the year of £844,262 (2024 - £nil). Gross margin has increased to 20.7% (2024 - 16.1%). As a result, EBITDA has increased on prior year by 41.0% to £3,497,980 (2024 - £2,480,116).

PRINCIPAL RISKS AND UNCERTAINTIES

The Director assesses the risks faced by the business on a regular basis and adopts appropriate strategies to manage and reduce those risks. Such risks include:

Interest rate risk

Being the potential risk of loss from exposure to base rate fluctuations. Lending undertaken by the group is linked to base rate and borrowing is monitored by management to avoid overexposure. The group does not consider that it is materially exposed to this risk on current trading performance.

Credit risk

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge its obligation. Group policies are aimed at minimising such losses and require customers to satisfy credit worthiness procedures prior to acceptance of contracts. The group does not consider that it is materially exposed to credit risk.

Price risk

Price risk is the risk that changes in raw materials prices have the potential to impact on the profitability of the group. The Director monitors price risk via consistent review of general economic indicators and key supplier prices to inform budgeting and forecasting procedures, to identify potential effect on margins ahead of time.

Cash flow and liquidity risk

Cash flow and liquidity risk is the risk that the group's available cash will not be be sufficient to meet its financial obligations. The group actively manages its cash flow position including collection of debts and timely payment of creditors. This, coupled with the strong cash position of the group arising from favourable trading results, is deemed sufficient to minimise the group's exposure to cash flow and liquidity risk.

Avian influenza risk

Avian influenza and its effects present uncertainty and its continuing impact needs to be carefully monitored to identify threats. Protocols remain in place and consistent communication is undertaken with all stakeholders whilst marketplace indicators will be monitored and any identified actions required are taken promptly.

ON BEHALF OF THE BOARD:

Mr J H Shepherd - Director

27 April 2026

The director presents his report with the financial statements of the company and the group for the year ended 30 September 2025.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of rearing broiler chickens.

DIVIDENDS

An interim dividend of £8,000 per share on the Ordinary A £1 shares was paid on 6 April 2025. The director recommends that no final dividend be paid on these shares.

No interim dividend was paid on the Ordinary B £1 shares. The director recommends that no final dividend be paid on these shares.

The total distribution of dividends for the year ended 30 September 2025 will be £ 800,000 .

RESEARCH AND DEVELOPMENT

The group is engaged in research and development activities through specialising in the raising of broilers for the production of chicken meat.

FUTURE DEVELOPMENTS

The group's business objective for the next twelve months are to maintain and develop its market share.

DIRECTOR

Mr J H Shepherd held office during the whole of the period from 1 October 2024 to the date of this report.

DIRECTOR'S RESPONSIBILITIES STATEMENT

The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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 director is 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 he 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 Watson Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr J H Shepherd - Director

27 April 2026

Opinion

We have audited the financial statements of FP Holdings 2019 Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2025 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 30 September 2025 and of the group's profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, 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 Director 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 Director 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 Director.

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 director's remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of director

As explained more fully in the Director's Responsibilities Statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the group or the parent company or to cease operations, or has 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 company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment 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;

- reading the minutes of meetings of those charged with governance;

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

- reviewing, where applicable, correspondence with HMRC and the services billed by the group's legal advisors.

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.

Steven Aitken BSc ACA CTA (Senior Statutory Auditor)

for and on behalf of Smailes Goldie Watson Limited

Statutory Auditors

Chartered Accountants

Units 7-8 Manor Court

Manor Garth

Eastfield

Scarborough

North Yorkshire

YO11 3TU

27 April 2026

TURNOVER

3

22,717,627

16,689,207

Cost of sales

18,014,285

13,999,172

GROSS PROFIT

4,703,342

2,690,035

Administrative expenses

2,150,005

1,183,607

2,553,337

1,506,428

Other operating income

4

1,424,087

614,173

OPERATING PROFIT

6

3,977,424

2,120,601

Interest receivable and similar income

61,070

36,903

4,038,494

2,157,504

Interest payable and similar expenses

7

256,048

290,232

PROFIT BEFORE TAXATION

3,782,446

1,867,272

Tax on profit

8

873,121

(175,095

)

PROFIT FOR THE FINANCIAL YEAR

2,909,325

2,042,367

Profit attributable to:

Owners of the parent

2,909,325

2,042,367

PROFIT FOR THE YEAR

2,909,325

2,042,367

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

2,909,325

2,042,367

Total comprehensive income attributable to:

Owners of the parent

2,909,325

2,042,367

FIXED ASSETS

Tangible assets

11

9,040,393

7,858,812

Investments

12

-

-

9,040,393

7,858,812

CURRENT ASSETS

Stocks

13

786,208

1,057,342

Debtors

14

2,538,832

2,028,696

Cash at bank and in hand

2,911,152

2,046,272

6,236,192

5,132,310

CREDITORS

Amounts falling due within one year

15

3,293,333

2,880,937

NET CURRENT ASSETS

2,942,859

2,251,373

TOTAL ASSETS LESS CURRENT LIABILITIES

11,983,252

10,110,185

CREDITORS

Amounts falling due after more than one year

16

(3,137,630

)

(3,533,295

)

PROVISIONS FOR LIABILITIES

20

(512,835

)

(353,428

)

NET ASSETS

8,332,787

6,223,462

CAPITAL AND RESERVES

Called up share capital

21

110

110

Retained earnings

22

8,332,677

6,223,352

SHAREHOLDERS' FUNDS

8,332,787

6,223,462

The financial statements were approved by the director and authorised for issue on 27 April 2026 and were signed by:

Mr J H Shepherd - Director

FIXED ASSETS

Tangible assets

11

7,636,485

6,333,939

Investments

12

100

100

7,636,585

6,334,039

CURRENT ASSETS

Debtors

14

96,458

870,732

Cash at bank and in hand

2,806,669

1,884,937

2,903,127

2,755,669

CREDITORS

Amounts falling due within one year

15

954,851

305,602

NET CURRENT ASSETS

1,948,276

2,450,067

TOTAL ASSETS LESS CURRENT LIABILITIES

9,584,861

8,784,106

CREDITORS

Amounts falling due after more than one year

16

(3,137,630

)

(3,533,295

)

PROVISIONS FOR LIABILITIES

20

(161,858

)

(143,785

)

NET ASSETS

6,285,373

5,107,026

CAPITAL AND RESERVES

Called up share capital

21

110

110

Retained earnings

22

6,285,263

5,106,916

SHAREHOLDERS' FUNDS

6,285,373

5,107,026

Company's profit for the financial year

1,978,347

1,322,270

The financial statements were approved by the director and authorised for issue on 27 April 2026 and were signed by:

Mr J H Shepherd - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 October 2023

110

4,265,485

4,265,595

Changes in equity

Dividends

-

(84,500

)

(84,500

)

Total comprehensive income

-

2,042,367

2,042,367

Balance at 30 September 2024

110

6,223,352

6,223,462

Changes in equity

Dividends

-

(800,000

)

(800,000

)

Total comprehensive income

-

2,909,325

2,909,325

Balance at 30 September 2025

110

8,332,677

8,332,787

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 October 2023

110

3,869,146

3,869,256

Changes in equity

Dividends

-

(84,500

)

(84,500

)

Total comprehensive income

-

1,322,270

1,322,270

Balance at 30 September 2024

110

5,106,916

5,107,026

Changes in equity

Dividends

-

(800,000

)

(800,000

)

Total comprehensive income

-

1,978,347

1,978,347

Balance at 30 September 2025

110

6,285,263

6,285,373

Cash flows from operating activities

Cash generated from operations

1

4,143,654

2,627,890

Interest paid

(256,175

)

(290,304

)

Interest element of hire purchase payments paid

(3,263

)

(2,595

)

Tax paid

(844,262

)

(1,311

)

Net cash from operating activities

3,039,954

2,333,680

Cash flows from investing activities

Purchase of tangible fixed assets

(1,502,467

)

(1,228,593

)

Sale of tangible fixed assets

24,001

-

Interest received

61,070

36,903

Net cash from investing activities

(1,417,396

)

(1,191,690

)

Cash flows from financing activities

Loan repayments in year

(263,566

)

(252,891

)

Directors' loan repaid/(advanced)

322,889

(332,705

)

HP/finance lease repayments in year

(17,001

)

(59,591

)

Equity dividends paid

(800,000

)

(84,500

)

Net cash from financing activities

(757,678

)

(729,687

)

Increase in cash and cash equivalents

864,880

412,303

Cash and cash equivalents at beginning of year

2

2,046,272

1,633,969

Cash and cash equivalents at end of year

2

2,911,152

2,046,272

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

2025

2024

£

£

Profit before taxation

3,782,446

1,867,272

Depreciation charges

364,816

359,514

Loss on disposal of fixed assets

15,949

-

Finance costs

256,048

290,232

Finance income

(61,070

)

(36,903

)

4,358,189

2,480,115

Decrease/(increase) in stocks

271,134

(283,734

)

(Increase)/decrease in trade and other debtors

(602,312

)

42,046

Increase in trade and other creditors

116,643

389,463

Cash generated from operations

4,143,654

2,627,890

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 30 September 2025

30.9.25

1.10.24

£

£

Cash and cash equivalents

2,911,152

2,046,272

Year ended 30 September 2024

30.9.24

1.10.23

£

£

Cash and cash equivalents

2,046,272

1,633,969

3.	ANALYSIS OF CHANGES IN NET DEBT

Other

non-cash

At 1.10.24

Cash flow

changes

At 30.9.25

£

£

£

£

Net cash

Cash at bank

and in hand

2,046,272

864,880

2,911,152

2,046,272

864,880

2,911,152

Debt

Finance leases

-

17,001

(89,229

)

(72,228

)

Debts falling due

within 1 year

(287,232

)

(184,228

)

-

(471,460

)

Debts falling due

after 1 year

(3,533,295

)

447,794

-

(3,085,501

)

(3,820,527

)

280,567

(89,229

)

(3,629,189

)

Total

(1,774,255

)

1,145,447

(89,229

)

(718,037

)

1.	STATUTORY INFORMATION

FP Holdings 2019 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.

The presentation currency of the financial statements is the Pound Sterling (£).

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

The group has a net current asset position and a healthy bank position and the director is satisfied that there are sufficient resources in place to continue operating for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the annual financial statements.

Basis of consolidation

The financial statements consolidate the accounts of FP Holdings 2019 Ltd and its subsidiary undertaking under merger accounting basis.

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 party transactions with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Significant judgements and estimates

In preparing the financial statements, management is required to make estimates and assumptions which affect reported income, expenses, assets, liabilities and disclosure of contingent assets and liabilities. Use of available information and application of judgement are inherent in the formation of estimates, together with past experience and expectations of future events that are believed to be reasonable under the circumstances. Actual results in the future could differ from such estimates.

Critical judgements in applying the company's policies

The management consider that no significant judgements have had to made in preparing these financial statements.

Critical accounting estimates and assumptions

Useful economic lives and residual values of tangible assets - The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The assumptions used regarding useful economic lives and residual values are assessed annually. They are amended when necessary to reflect current estimates, based on market conditions and the physical condition of the assets.

The management do not consider that any other estimates and assumptions used in the preparation of these financial statements have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Turnover

Revenue represents goods and services supplied, excluding value added tax. Revenue is recognised to the extent that the company has obtained the right to consideration through its performance and is measured at the fair value of the right to consideration.

Tangible fixed assets

Items of property, plant and equipment are initially measured at cost. After initial recognition items of property, plant and equipment are measured at cost less any accumulated depreciation and any accumulated impairment losses.

Depreciation is provided at the following annual rates in order to write off the cost of each asset over its estimated useful life.

Freehold property (excluding land)

- 2% on cost (not provided on land)

Assets under construction

- not provided

Plant and machinery

- 15% on reducing balance

Motor vehicles

- 20% on reducing balance and 20% on cost

Computer equipment

- 25% on cost

Fixtures and fittings

- 20% on cost

Stocks

Biological assets, agricultural produce and other inventories are measured at the lower of cost and estimated selling price less costs to complete and sell.

Financial instruments

The group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities such as trade, other accounts receivable and payable and loans to related parties.

Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received.

Debt instruments such as loans and other accounts receivable and payable are initially measured at present value of the future payments and subsequently at amortised costs using the effective interest method.

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 statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Hire purchase and leasing commitments

Assets acquired under finance lease agreements, including hire purchase agreements, are capitalised and the corresponding liability is included in creditors. Lease payments are apportioned between finance charges and reduction of the lease obligation using the effective interest method so as to achieve a constant rate of interest on the remaining balance of the liability. Operating lease rentals are charged against profits of the period to which they relate.

Pension costs and other post-retirement benefits

Payments to defined contribution pension schemes are charged as an expense in the period to which they relate.