REGISTERED NUMBER: 07302591 (England and Wales)

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTOR AND

CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025

FOR

SIBYLLINE LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Director

4

Report of the Independent Auditors

6

Consolidated Income Statement

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

18

DIRECTOR:

J T Crump

REGISTERED OFFICE:

329 China Works

100 Black Prince Road

London

SE1 7SJ

REGISTERED NUMBER:

07302591 (England and Wales)

AUDITORS:

Ad Valorem Audit Services Limited

Chartered Certified Accountants

& Statutory Auditors

2 Manor Farm Court

Old Wolverton Road

Old Wolverton

Milton Keynes

Buckinghamshire

MK12 5NN

The director presents his strategic report of the company and the group for the year ended 31 December 2025.

REVIEW OF BUSINESS

The Group reported turnover of £35,205,892 for the year ended 31 December 2025, a decrease of 7% compared with £37,784,816 in 2024. The reduction primarily reflects the anticipated winding up of a major client project during the period, alongside a more challenging trading environment driven by factors including UK national insurance and general cost increases, FX rate changes, and client budget constraints reflecting the global economic situation.

Operating profit was £1,729,846 (2024: £5,165,723), representing 5% of turnover (2024: 14%). The reduction in profitability reflects the combined effect of lower turnover and the Group's continued investment in its people, technology and operational capability to support the business over the medium term and develop its service offering to remain at the cutting edge of capability.

The Group's financial position remains strong. Net current assets was £8,163,433 at 31 December 2025 (2024: £8,310,034), and cash balances grew to £6,785,807 (2024: £4,998,209), reflecting disciplined cash management during the year.

The Group continues to invest in the diversification of its service offering and client base. The Group remains focused on delivering high-quality services to its clients, maintaining strong customer relationships and developing its service offering in response to evolving client needs and market conditions.

PRINCIPAL RISKS AND UNCERTAINTIES

The director is responsible for identifying, managing and mitigating the risks and uncertainties that could affect the Group's long-term prospects. This is addressed through a framework of policies, procedures and internal controls, subject to senior leadership team approval and ongoing management review.

The principal risks affecting the Group's ongoing performance are:

1. People - the Group's employees are its greatest asset. Attracting and retaining a skilled and committed workforce is managed through competitive reward, a supportive working environment and clear career development.

2. Clients - the Group mitigates client concentration and retention risk through consistently high standards of service delivery, and by continuing to diversify its service lines and client base.

3. Competition - the Group operates in a competitive global market. The director and senior leadership team monitor market and competitor developments closely, enabling the Group to respond to changing conditions as they arise.

GOING CONCERN

The financial statements have been prepared on a going concern basis, which the director considers appropriate for the reasons set out below.

During the year ended 31 December 2025, the Group generated a profit before taxation of £1,767,733 (2024: £5,091,844) and, at the balance sheet date, held cash balances of £6,785,807 (2024: £4,998,209). Cash flow performance improved during the year as a result of strengthened credit control procedures and ongoing cash management.

The director has prepared cash flow forecasts covering a period of at least 12 months from the date of approval of these financial statements. These forecasts indicate that the Group is expected to maintain adequate cash resources to meet its liabilities as they fall due.

The director continues to adopt a prudent approach to financial management and investment, maintaining appropriate cash reserves to support working capital requirements and mitigate the potential impact of the loss of significant clients. Accordingly, the director has a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future.

ON BEHALF OF THE BOARD:

J T Crump - Director

10 July 2026

The director presents his report with the financial statements of the company and the group for the year ended 31 December 2025.

PRINCIPAL ACTIVITY

Sibylline is a strategic advisory firm, dedicated to helping decision-makers identify opportunities and mitigate risks in their operating environments. Sibylline provide insight to support the resilience of staff, market access, assets, reputation, operations and technology. The Group supports clients through the provision of high-quality risk analysis, due diligence, threat monitoring, consultancy and embedded support services. There have been no significant changes in the group's principal activities in the period under review. The Director is not aware of any likely major changes in the group's principal activities in the next year.

DIVIDENDS

No interim dividend was paid during the year. The director recommends a final dividend of £1,500 per share.

The total distribution of dividends for the year ended 31 December 2025 will be £ 1,500,000 .

DIRECTOR

J T Crump held office during the whole of the period from 1 January 2025 to the date of this report.

POLITICAL DONATIONS AND EXPENDITURE

During the year, the company made charitable donations of £35,284.87 (£355), all of which were to registered charities and made wholly for charitable purposes.

The company made no political donations during the year (2024: £nil).

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

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

ON BEHALF OF THE BOARD:

J T Crump - Director

10 July 2026

Opinion

We have audited the financial statements of Sibylline Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2025 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2025 and of the group's profit for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 Statement of Director's Responsibilities set out on page four, 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:

In our process of identifying fraud risks we assessed events or conditions that indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud ("fraud risk factors") to determine how fraud risks are relevant to our audit. Based on the auditing standards we addressed two fraud risks that were relevant to our audit, in relation to revenue recognition and management override of controls. Based upon our analysis of fraud risk factors, we have not identified any additional fraud risks.

Our audit procedures included an evaluation of the design, implementation as well as the operating effectiveness of internal controls relevant to mitigate these risks. We also performed substantive audit procedures, including detailed testing of high risk journal entries and procedures to satisfy ourselves that revenue has been properly recognised in the financial statements in accordance with financial reporting standards and the Group's accounting policies. Through these procedures, we did not identify any material actual or suspected incidences of fraud. We have evaluated facts and circumstances in order to assess laws and regulations relevant to the Group. We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general and sector experience, through discussion with the Directors and other management (as required by auditing standards) and discussed with the Directors and other management the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.

The potential effect of these laws and regulations on the financial statements varies considerably.

Firstly, the Group is subject to laws and regulations that directly affect the financial statements including taxation and financial reporting (including related company legislation) and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

Secondly, the Group is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect:

- Employment legislation, reflecting the Group's workforce

- Health and safety regulation, reflecting the Group's production, distribution and operating processes

- Data privacy, reflecting the Group's management of personal and corporate data

Auditing standards limit the required audit procedures to identify non-compliance with these regulations to enquiry of the Directors and other management and inspection of regulatory and legal correspondence, if any. Through these procedures we did not identify any material actual or suspected non-compliance in any of the above areas.

We note that our audit is not primarily designed to detect non-compliance with laws and regulations and the Directors and other management are responsible for such internal control as the Directors and other management of the Group determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to errors or fraud, including compliance with laws and regulations. Additionally, owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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 group and it's parent 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 Group and it's parent company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Zubair Arshad FCCA (Senior Statutory Auditor)

for and on behalf of Ad Valorem Audit Services Limited

Chartered Certified Accountants

& Statutory Auditors

2 Manor Farm Court

Old Wolverton Road

Old Wolverton

Milton Keynes

Buckinghamshire

MK12 5NN

14 July 2026

TURNOVER

3

35,205,892

37,784,816

Cost of sales

26,776,668

27,620,703

GROSS PROFIT

8,429,224

10,164,113

Administrative expenses

6,698,980

4,994,725

1,730,244

5,169,388

Other operating income

(398

)

(3,665

)

OPERATING PROFIT

5

1,729,846

5,165,723

Interest receivable and similar income

6

51,594

8,646

1,781,440

5,174,369

Interest payable and similar expenses

7

13,707

82,525

PROFIT BEFORE TAXATION

1,767,733

5,091,844

Tax on profit

8

493,040

1,191,626

PROFIT FOR THE FINANCIAL YEAR

1,274,693

3,900,218

Profit attributable to:

Owners of the parent

1,274,693

3,900,218

PROFIT FOR THE YEAR

1,274,693

3,900,218

OTHER COMPREHENSIVE INCOME

Foreign exchange reserve

-

39,595

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

-

39,595

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,274,693

3,939,813

Total comprehensive income attributable to:

Owners of the parent

1,274,693

3,939,813

FIXED ASSETS

Intangible assets

11

54,607

137,165

Tangible assets

12

158,347

197,172

Investments

13

-

-

212,954

334,337

CURRENT ASSETS

Debtors

14

4,095,223

7,303,541

Cash at bank

6,785,807

4,998,209

10,881,030

12,301,750

CREDITORS

Amounts falling due within one year

15

2,717,597

3,991,716

NET CURRENT ASSETS

8,163,433

8,310,034

TOTAL ASSETS LESS CURRENT LIABILITIES

8,376,387

8,644,371

CREDITORS

Amounts falling due after more than one year

16

-

(33,333

)

PROVISIONS FOR LIABILITIES

19

(39,437

)

(48,781

)

NET ASSETS

8,336,950

8,562,257

CAPITAL AND RESERVES

Called up share capital

20

1,000

1,000

Retained earnings

8,335,950

8,561,257

SHAREHOLDERS' FUNDS

8,336,950

8,562,257

The financial statements were approved by the director and authorised for issue on 10 July 2026 and were signed by:

J T Crump - Director

FIXED ASSETS

Intangible assets

11

54,607

137,165

Tangible assets

12

157,758

194,857

Investments

13

2,934

2,934

215,299

334,956

CURRENT ASSETS

Debtors

14

3,626,951

6,802,467

Cash at bank

5,650,674

4,090,183

9,277,625

10,892,650

CREDITORS

Amounts falling due within one year

15

2,365,402

3,797,678

NET CURRENT ASSETS

6,912,223

7,094,972

TOTAL ASSETS LESS CURRENT LIABILITIES

7,127,522

7,429,928

CREDITORS

Amounts falling due after more than one year

16

-

(33,333

)

PROVISIONS FOR LIABILITIES

19

(39,437

)

(48,781

)

NET ASSETS

7,088,085

7,347,814

CAPITAL AND RESERVES

Called up share capital

20

1,000

1,000

Retained earnings

7,087,085

7,346,814

SHAREHOLDERS' FUNDS

7,088,085

7,347,814

Company's profit for the financial year

1,240,271

3,476,537

The financial statements were approved by the director and authorised for issue on 10 July 2026 and were signed by:

J T Crump - Director

Called up

Foreign

share

Retained

exchange

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2024

1,000

4,661,039

(39,595

)

4,622,444

Changes in equity

Total comprehensive income

-

3,900,218

39,595

3,939,813

Balance at 31 December 2024

1,000

8,561,257

-

8,562,257

Changes in equity

Dividends

-

(1,500,000

)

-

(1,500,000

)

Total comprehensive income

-

1,274,693

-

1,274,693

Balance at 31 December 2025

1,000

8,335,950

-

8,336,950

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2024

1,000

3,870,277

3,871,277

Changes in equity

Total comprehensive income

-

3,476,537

3,476,537

Balance at 31 December 2024

1,000

7,346,814

7,347,814

Changes in equity

Dividends

-

(1,500,000

)

(1,500,000

)

Total comprehensive income

-

1,240,271

1,240,271

Balance at 31 December 2025

1,000

7,087,085

7,088,085

Cash flows from operating activities

Cash generated from operations

1

5,241,004

5,155,350

Interest paid

(13,707

)

(82,525

)

Tax paid

(1,866,063

)

(916,695

)

Net cash from operating activities

3,361,234

4,156,130

Cash flows from investing activities

Purchase of tangible fixed assets

(43,125

)

(183,201

)

Sale of tangible fixed assets

-

500

Interest received

51,594

8,646

Net cash from investing activities

8,469

(174,055

)

Cash flows from financing activities

Loan repayments in year

(50,000

)

-

Capital repayments in year

(32,105

)

(60,404

)

Amount introduced by directors

-

(200

)

Amount withdrawn by directors

-

(999,800

)

Equity dividends paid

(1,500,000

)

-

Net cash from financing activities

(1,582,105

)

(1,060,404

)

Increase in cash and cash equivalents

1,787,598

2,921,671

Cash and cash equivalents at beginning of year

2

4,998,209

2,076,538

Cash and cash equivalents at end of year

2

6,785,807

4,998,209

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

2025

2024

£

£

Profit before taxation

1,767,733

5,091,844

Depreciation charges

74,905

66,938

Loss on disposal of fixed assets

7,045

187

Foreign exchange reserve

-

39,595

Amortisation charges

82,558

82,558

Finance costs

13,707

82,525

Finance income

(51,594

)

(8,646

)

1,894,354

5,355,001

Decrease in trade and other debtors

3,208,319

829,978

Increase/(decrease) in trade and other creditors

138,331

(1,029,629

)

Cash generated from operations

5,241,004

5,155,350

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

6,785,807

4,998,209

Year ended 31 December 2024

31/12/24

1/1/24

£

£

Cash and cash equivalents

4,998,209

2,076,538

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/1/25

Cash flow

At 31/12/25

£

£

£

Net cash

Cash at bank

4,998,209

1,787,598

6,785,807

4,998,209

1,787,598

6,785,807

Debt

Finance leases

(32,105

)

32,105

-

Debts falling due within 1 year

(50,000

)

16,667

(33,333

)

Debts falling due after 1 year

(33,333

)

33,333

-

(115,438

)

82,105

(33,333

)

Total

4,882,771

1,869,703

6,752,474

1.	STATUTORY INFORMATION

Sibylline 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

The consolidated financial statements represent the results of the Group and its subsidiaries as if they form a single entity. Intercompany transactions and balances between group companies are eliminated in full.

The results of subsidiaries and associated undertakings sold or acquired during the period are included up to, or from, the dates that control passes.

In accordance with the transitional exemption available in FRS 102, the group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102.

No Statement of Comprehensive Income is included for the company as permitted by Section 408 of the Companies Act 2006.

SIGNIFICANT JUDGEMENTS AND ESTIMATES

In preparing the financial statements, the Directors are required to make estimates and judgements about the carrying amounts of assets and liabilities. The estimates and assumptions are reviewed on an ongoing basis and are based on historical experience and other factors that are considered by the Directors to be relevant. Revision to accounting estimates are recognised in the period in which the estimate is revised.

TURNOVER

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

GOODWILL

Goodwill represents the excess of cost of acquisition over the fair value of the separable net assets of the business acquired.

The goodwill arising on consolidation has been capitalised as an intangible asset and is being written off over twenty years. Provision is made for any impairment.

INTANGIBLE ASSETS

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

TANGIBLE FIXED ASSETS

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:

Office equipment

4 Years Straight Line

Motor vehicles

4 Years Straight Line

Fixtures and fittings

4 Years Straight Line

Computer equipment

4 Years Straight Line

FINANCIAL INSTRUMENTS

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Classification of 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 evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and that are classified as debt, are initially recognized at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payment discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors greater than one year are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.