REGISTERED NUMBER: 11080199 (England and Wales)

Group Strategic Report,

Report of the Directors and

Audited

Consolidated Financial Statements

for the Year Ended 31 December 2025

for

The Feel Good Group (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

14

Consolidated Statement of Changes in Equity

16

Company Statement of Changes in Equity

17

Consolidated Cash Flow Statement

18

Notes to the Consolidated Cash Flow Statement

19

Notes to the Consolidated Financial Statements

20

DIRECTORS:

A L Mooney

C J Mooney

SECRETARY:

K E Smith

REGISTERED OFFICE:

Unit J6

Morton Park Way

Darlington

County Durham

DL1 4PG

REGISTERED NUMBER:

11080199 (England and Wales)

SENIOR STATUTORY AUDITOR:

James Davies BSc (Hons) CA

AUDITORS:

Clive Owen LLP

Chartered Accountants & Statutory Auditors

Great North House

Allington Way

DARLINGTON

Co Durham

DL1 4QB

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

Review of business

Turnover in the year declined by 0.5% compared to the prior year, the company did face increased overheads in the year mainly due to higher employment costs.

Key performance indicators

The group's key performance indicators are turnover, operating profit and EBITDA:

2025

2024

£'000

£'000

Turnover

30,560

30,719

Operating profit / (loss)

5,111

5,752

Adjusted EBITDA

7,799

8,801

PRINCIPAL RISKS AND UNCERTAINTIES

The company constantly reviews any potential risks and uncertainties within the industry. The principal risks and uncertainties facing the company are broadly grouped as: economy, financial instruments and weather.

Economy

We are always at risk of the economy and customer sentiment to the state of the economy, we strive to offer the highest level of customer service and experience in order to minimise this risk.

Financial Instruments

The company purchases products and equipment from Europe and the United States, therefore we are always exposed to the variability of foreign exchange rates. In order to restrict our exposure we continually review the relevant exchange rates and if necessary we will purchase forward contracts in order to reduce our exposure. However, movements in exchange rates are not considered to have a material effect on the profitability of the company overall due to the low level of cost of sales in foreign currencies.

Weather

The company has a risk on trading performance when the weather is at the extremes, either cold or a heat wave. The company maintains a strong cash position to minimise impact on business.

EMPLOYEES

Employee involvement

The company operates a framework for employee information. During the year the policy of providing employees with information about the company has been continued through regular meetings between local Area Managers and employees to allow a flow of information and ideas. Employees participate directly in the success of the business through the company's bonus and commission scheme.

Employment of disabled persons

The company gives full and fair consideration to applications for employment made by disabled persons, having regard to their particular aptitudes and abilities. It is the company policy that disabled persons receive equal consideration for career development, promotion and to provide appropriate training to carry out their specified role. The company also ensures that if an employee becomes disabled during the period that they are employed, all practical efforts are made to arrange appropriate training to carry out their existing role or if required all practical efforts are made to identify suitable alternative opportunities.

FUTURE DEVELOPMENTS

The company intends to continue expansion of Tanning Salons over the forthcoming year.

ON BEHALF OF THE BOARD:

A L Mooney - Director

14 July 2026

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

PRINCIPAL ACTIVITIES

The principal activities of the group in the year under review were those of selling beauty products mainly being that of sunless tans, sunbed equipment and other products.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2025.

DIRECTORS

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

A L Mooney

C J Mooney

DISCLOSURE IN THE STRATEGIC REPORT

Future developments and financial risk management objectives and policies, which would otherwise be disclosed in the directors' report, are instead disclosed in the strategic report, as permitted by section 414C(11) of the Companies Act 2006.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

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

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Clive Owen LLP, are deemed to be reappointed under section 487(2) of the Companies Act 2006.

ON BEHALF OF THE BOARD:

A L Mooney - Director

14 July 2026

Opinion

We have audited the financial statements of The Feel Good Group (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 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 31 December 2025 and of the group's profit for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. Our audit must be alert to the risk of manipulation of the financial statements and seek to understand the incentives and opportunities for management to achieve this.

We have undertaken the following procedures to identify and respond to these risks of non-compliance:

- Understanding the key legal and regulatory frameworks that are applicable to the Company. We communicated identified laws and regulations throughout the audit team and remained alert to any indications of non-compliance throughout the audit. We determined the most significant of these to be financial reporting legislation, taxation legislation, health & safety, sunbed (regulation) act 2010 and employment law.

- Enquiry of directors and management as to policies and procedures to ensure compliance and any known instances of non-compliance.

- Recalculation of deductions for a sample of employees to ensure correct treatments.

- Review of correspondence with regulators.

- Enquiry of directors and management as to areas of the financial statements susceptible to fraud and how these risks are managed.

- Identifying and testing unusual journal entries, with a particular focus on manual journal entries.

Through these procedures, we did not become aware of actual or suspected non-compliance.

We planned and performed our audit in accordance with auditing standards but owing to the inherent limitations of procedures required in these areas, there is an unavoidable risk that we may not have detected a material misstatement in the accounts. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve concealment, collusion, forgery, misrepresentations, or override of internal controls. 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 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.

James Davies BSc (Hons) CA (Senior Statutory Auditor)

for and on behalf of Clive Owen LLP

Chartered Accountants & Statutory Auditors

Great North House

Allington Way

DARLINGTON

Co Durham

DL1 4QB

17 July 2026

TURNOVER

3

30,559,742

30,718,632

Cost of sales

(11,609,680

)

(11,265,569

)

GROSS PROFIT

18,950,062

19,453,063

Administrative expenses

(14,083,099

)

(13,942,453

)

4,866,963

5,510,610

Other operating income

244,432

241,253

OPERATING PROFIT

5

5,111,395

5,751,863

Interest receivable and similar income

74,913

108,139

5,186,308

5,860,002

Interest payable and similar expenses

6

(3,262,514

)

(3,513,756

)

PROFIT BEFORE TAXATION

1,923,794

2,346,246

Tax on profit

7

(837,791

)

(699,383

)

PROFIT FOR THE FINANCIAL YEAR

1,086,003

1,646,863

Profit attributable to:

Owners of the parent

1,086,003

1,646,863

PROFIT FOR THE YEAR

1,086,003

1,646,863

OTHER COMPREHENSIVE INCOME

Exchange differences on retranslation of

46,273

(18,698

)

subsidiary undertakings

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

46,273

(18,698

)

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,132,276

1,628,165

Total comprehensive income attributable to:

Owners of the parent

1,132,276

1,628,165

FIXED ASSETS INVESTMENTS

Intangible assets

9

1,338,756

1,731,449

Tangible assets

10

4,498,075

4,949,738

Investments

11

3,000

3,000

5,839,831

6,684,187

CURRENT ASSETS

Stocks

12

1,443,540

1,078,414

Debtors

13

2,109,269

1,993,616

Cash at bank and in hand

4,053,392

4,721,300

7,606,201

7,793,330

CREDITORS

Amounts falling due within one year

14

(10,761,131

)

(12,111,382

)

NET CURRENT LIABILITIES

(3,154,930

)

(4,318,052

)

TOTAL ASSETS LESS CURRENT LIABILITIES

2,684,901

2,366,135

CREDITORS

Amounts falling due after more than one year

15

(47,253,469

)

(48,054,586

)

PROVISIONS FOR LIABILITIES

19

(541,394

)

(553,787

)

NET LIABILITIES

(45,109,962

)

(46,242,238

)

CAPITAL AND RESERVES

Called up share capital

20

1,000

1,000

Foreign exchange translation

reserve

21

(2,108

)

(48,381

)

Retained earnings

21

(45,108,854

)

(46,194,857

)

SHAREHOLDERS' FUNDS

(45,109,962

)

(46,242,238

)

The financial statements were approved by the Board of Directors and authorised for issue on 14 July 2026 and were signed on its behalf by:

A L Mooney - Director

FIXED ASSETS INVESTMENTS

Intangible assets

9

-

-

Tangible assets

10

-

-

Investments

11

44,306,692

44,306,692

44,306,692

44,306,692

CREDITORS

Amounts falling due within one year

14

(7,355,049

)

(7,471,466

)

NET CURRENT LIABILITIES

(7,355,049

)

(7,471,466

)

TOTAL ASSETS LESS CURRENT LIABILITIES

36,951,643

36,835,226

CREDITORS

Amounts falling due after more than one year

15

(46,988,987

)

(47,785,319

)

NET LIABILITIES

(10,037,344

)

(10,950,093

)

CAPITAL AND RESERVES

Called up share capital

20

1,000

1,000

Retained earnings

21

(10,038,344

)

(10,951,093

)

SHAREHOLDERS' FUNDS

(10,037,344

)

(10,950,093

)

Company's profit for the financial year

912,749

1,348,331

The financial statements were approved by the Board of Directors and authorised for issue on 14 July 2026 and were signed on its behalf by:

A L Mooney - Director

Foreign

Called up

exchange

share

Retained

translation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2024

1,000

(47,841,720

)

(29,682

)

(47,870,402

)

Changes in equity

Total comprehensive income

-

1,646,863

(18,699

)

1,628,164

Balance at 31 December 2024

1,000

(46,194,857

)

(48,381

)

(46,242,238

)

Changes in equity

Total comprehensive income

-

1,086,003

46,273

1,132,276

Balance at 31 December 2025

1,000

(45,108,854

)

(2,108

)

(45,109,962

)

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2024

1,000

(12,299,424

)

(12,298,424

)

Changes in equity

Total comprehensive income

-

1,348,331

1,348,331

Balance at 31 December 2024

1,000

(10,951,093

)

(10,950,093

)

Changes in equity

Total comprehensive income

-

912,749

912,749

Balance at 31 December 2025

1,000

(10,038,344

)

(10,037,344

)

Cash flows from operating activities

Cash generated from operations

1

5,918,771

8,762,875

Interest paid

(2,370,239

)

(2,564,798

)

Tax paid

(470,000

)

(377,807

)

Net cash from operating activities

3,078,532

5,820,270

Cash flows from investing activities

Purchase of tangible fixed assets

(1,681,929

)

(2,434,657

)

Sale of tangible fixed assets

269,246

-

Interest received

74,913

108,139

Purchase of company

-

(1,522,204

)

Net cash from investing activities

(1,337,770

)

(3,848,722

)

Cash flows from financing activities

Loan repayments in year

(2,408,670

)

(2,197,545

)

Amount withdrawn by directors

-

(117,486

)

Net cash from financing activities

(2,408,670

)

(2,315,031

)

Decrease in cash and cash equivalents

(667,908

)

(343,483

)

Cash and cash equivalents at beginning of year

2

4,721,300

5,064,783

Cash and cash equivalents at end of year

2

4,053,392

4,721,300

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

2025

2024

£

£

Profit before taxation

1,923,794

2,346,246

Depreciation charges

2,281,976

2,196,634

Loss on disposal of fixed assets

19,314

-

Foreign exchange movement

(46,273

)

(18,698

)

Finance costs

3,262,514

3,513,756

Finance income

(74,913

)

(108,139

)

7,366,412

7,929,799

Increase in stocks

(365,126

)

(70,489

)

(Increase)/decrease in trade and other debtors

(115,653

)

10,044

(Decrease)/increase in trade and other creditors

(966,862

)

893,521

Cash generated from operations

5,918,771

8,762,875

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

4,053,392

4,721,300

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

4,721,300

5,064,783

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.1.25

Cash flow

At 31.12.25

£

£

£

Net cash

Cash at bank and in hand

4,721,300

(667,908

)

4,053,392

4,721,300

(667,908

)

4,053,392

Debt

Debts falling due within 1 year

(3,893,371

)

993,885

(2,899,486

)

Debts falling due after 1 year

(47,785,319

)

796,332

(46,988,987

)

(51,678,690

)

1,790,217

(49,888,473

)

Total

(46,957,390

)

1,122,309

(45,835,081

)

1.	STATUTORY INFORMATION

The Feel Good Group (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.

There were no material departures from that standard.

The principal accounting policies adopted in the preparation of the financial statements are set out below and have remained unchanged from the previous year, and also have been consistently applied within the same accounts and across the group.

The Feel Good Group (Holdings) Limited, as an individual entity, meets the definition of a qualifying entity per FRS 102 and has taken advantage of the exemption available in paragraph 1.12 of FRS 102 from presenting a company-only statement of cash flows. These consolidated financial statements include a consolidated statement of cash flows which include the cash flows of The Feel Good Group (Holdings) Limited.

Going concern

The directors assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the group to continue as a going concern. The directors make this assessment in respect of a period of at least one year from the date the financial statements are approved.

The directors believe that it is appropriate to continue to adopt the going concern basis of accounting in preparing the financial statements due to the levels of reserves in the trading subsidiary.

The financial statements are prepared on the going concern basis which assumes that the company will continue to trade for at least one year from the date of approval of these financial statements. If the company is unable to continue to trade, adjustments would be required to reduce the value of assets to their recoverable amounts, to provide for any further liabilities that might arise and to analyse long term liabilities as current liabilities.

Basis of consolidation

The financial statements consolidate the financial statements of The Feel Good Group (Holdings) Limited and its trading subsidiaries:The Feel Good Group Limited and ABC Tanning Limited.

Transactions between group companies have been eliminated on consolidation. The accounts of ABC Tanning Limited are converted from Euros to GBP for consolidation in the group accounts.

Turnover

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

Income recognition

Income from the provision of services is recognised at the point of the service having been provided. Income from the sale of goods is recognised upon delivery of the goods to the customer.

Goodwill

Goodwill, being the amounts paid in connection with the acquisition of businesses in 2016, 2022, 2023 and 2024, is being amortised over their estimated useful economic lives of five years.

Goodwill on consolidation is being amortised over its estimated useful economic life of five years.

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

Tangible fixed assets

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

Leasehold improvements

-

15% - 25% on cost

Plant and machinery

-

33% on cost

Fixtures and fittings

-

20% on cost

Tangible fixed assets are measured at cost less accumulated depreciation and impairment.

Impairment of assets

At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in profit or loss.

Stocks

Stocks are valued at the lower of cost and estimated selling price less costs to sell, after making due allowance for obsolete and slow moving items.

Financial instruments

Basic financial assets, including trade and other receivables and cash and bank balances are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in the profit or loss account.

Basic financial liabilities, including bank loans and borrowings and trade and other payables, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Interest bearing borrowings

Interest-bearing borrowings are recognised initially at fair value less attributable transaction costs. Subsequent to initial recognition, interest-bearing borrowings are stated at amortised cost with any difference between the amount initially recognised and redemption value being recognised in the statement of comprehensive income over the period of the borrowings, together with any interest and fees payable, using the effective interest method.