REGISTERED NUMBER: 05744061 (England and Wales)

Strategic Report, Report of the Directors and

Audited Financial Statements for the Year Ended 31 March 2026

for

Little & Cull Ltd

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

5

Income Statement

9

Other Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

15

DIRECTORS:

T Cull

T Harb-Little

E Smith

REGISTERED OFFICE:

Pullman House

Battle Road

Heathfield Industrial Estate

Newton Abbot

Devon

TQ12 6RY

REGISTERED NUMBER:

05744061 (England and Wales)

AUDITORS:

Sumer Auditco Limited

Statutory Auditor

5 Barnfield Crescent

Exeter

Devon

EX1 1QT

SOLICITORS:

Tozers

Broadwalk House

Southernhay West

Exeter

Devon

EX1 1UA

The directors present their strategic report for the year ended 31 March 2026.

REVIEW OF BUSINESS

The principal activity of Little & Cull (“the Company”) for the year to 31 March 2026 is the development, manufacture and distribution of a range of pies, prepared meals, ready-to-eat meal components and bakery products for the foodservice, wholesale and catering sectors.

Our fundamental values remain unchanged; alongside our core product range we continue to offer bespoke menu and product development to our customers in the foodservice sector.

The Company operates two BRCGS certified manufacturing facilities in Newton Abbot and Exeter, with the Exeter site, which opened in February 2024, now fully embedded into operations, enhancing capability and capacity while supporting a broader product range.

Turnover for the year of £25.1m grew 9.6% from the previous year total of £22.9m.

EBIT for the year was £2.4m (2025: £1.9m), with operating profit margins of 9.5% (2025: 8.5%).

EBITDA for the year was £3.1m (12.4%), (2025: £2.6m, 11.5%).

All key areas of working capital have been satisfactorily controlled during the year; trade debtors and creditors continue to function smoothly with no significant bad debts to report in the year.

Key performance indicators

2025/26

2024/25

2023/24

2022/23

£

£

£

£

Turnover

25,142,438

22,946,775

23,524,613

21,696,742

Gross profit

6,030,252

5,398,327

5,302,279

5,168,498

Gross profit %

23.9%

23.5%

22.5%

23.8%

Operating profit

2,382,165

1,947,010

1,879,768

2,641,487

EBITDA

3,126,779

2,638,653

2,574,682

3,166,967

EBITDA %

12.4%

11.5%

10.9%

14.6%

Inventory days

41

45

43

43

Interest cover

6.8

4.5

4.5

18.7

Gearing ratio

29%

31%

38%

10%

Employees

168

161

184

164

The business continues to monitor its key performance indicators on a weekly and monthly basis. These KPIs range from financial to operational measures to ensure issues are identified and acted upon in a timely manner. The Board of Directors meets on a monthly basis to review company performance and address a range of topics we believe are essential to the operational management of the business and ensure our company targets and obligations, both financial and non-financial, are being met.

PRINCIPAL RISKS AND UNCERTAINTIES

Inflation

The company has collaborated with customers to reduce the impact of price increases by reformulating recipes and sourcing alternative raw materials wherever possible.

Employee recruitment

The company offers competitive pay, reviewed annually, and maintains an ongoing recruitment programme.

During the year, the company introduced additional employee benefits including enhanced maternity and paternity pay, a critical illness policy, improved sick pay and increased holiday allowance. Maintaining a positive company culture remains a key management priority.

FOOD SAFETY AND QUALITY

The company remains committed to maintaining high standards of food safety and quality, with retaining BRCGS AA grade accreditation at both sites remaining a key priority. This culture is supported by strong employee engagement, with KPIs consistently exceeding targets.

RESEARCH AND DEVELOPMENT

Working both independently and in partnership with major customers, the Company has continued to invest heavily in new product development which is integral to the ongoing success of the business.

INVESTMENT IN PEOPLE

The Company continues to invest heavily in its people and has created new roles across the business, from the management team through to sales and production staff, to support continued growth.

ENVIRONMENT AND SUSTAINABILITY

The Company is committed to improving its environmental and sustainability performance and this is an integral part of our business strategy and operating methods.

All sites now use 100% renewable electricity, and we have started a carbon accounting project to establish targets for achieving net zero.

We are committed to responsible food sourcing and purchase animal-derived products only from suppliers that follow ethical practices.

FUTURE OUTLOOK

The Directors are confident that the pipeline of new product development and listings from existing and new customers is robust, with several significant new accounts due to launch in 2026/27. At the date of approval of these financial statements the business remains financially sound, and the Directors are confident in its growth targets being achieved over the years to come.

ON BEHALF OF THE BOARD:

T Cull - Director

23 July 2026

The directors present their report with the financial statements of the company for the year ended 31 March 2026.

PRINCIPAL ACTIVITIES

The principal activities of the company in the year under review were those of the development, manufacture and distribution of a range of pies, prepared meals, ready-to-eat meal components and bakery products for the foodservice, wholesale and catering sectors.

DIVIDENDS

Interim dividends on the Ordinary A £1 shares totalling £127,870

Interim dividends on the Ordinary B £1 shares totalling £97,470

Interim dividends on the Ordinary shares totalling £400,000

There were no unpaid dividends at the year end.

DIRECTORS

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

T Cull

T Harb-Little

E Smith

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

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

-	select suitable accounting policies and then apply them consistently;

-	make 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 transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

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

ON BEHALF OF THE BOARD:

T Cull - Director

23 July 2026

Opinion

We have audited the financial statements of Little & Cull Ltd (the 'company') for the year ended 31 March 2026 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the 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 company's affairs as at 31 March 2026 and of its 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 company 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 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 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 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 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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, or returns adequate for our audit have not been received from branches not visited by us; or

-	the 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 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 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:

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 as follows:

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the Company through discussions with the directors and other management, and from our commercial knowledge and experience;

- we 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 and food safety, employment, environmental and health and safety legislation;

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management, reviewing correspondence with industry regulators, and inspecting legal correspondence; and

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

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

We assessed the susceptibility of the Company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; 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 correspondence with HMRC, relevant regulators, and the Company's legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware 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.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

Richard Baker FCA (Senior Statutory Auditor)

for and on behalf of Sumer Auditco Limited

Statutory Auditor

5 Barnfield Crescent

Exeter

Devon

EX1 1QT

23 July 2026

TURNOVER

3

25,142,438

22,946,775

Cost of sales

(19,112,186

)

(17,548,448

)

GROSS PROFIT

6,030,252

5,398,327

Administrative expenses

(3,657,629

)

(3,460,859

)

2,372,623

1,937,468

Other operating income

9,542

9,542

OPERATING PROFIT

5

2,382,165

1,947,010

Interest receivable and similar income

6

32

28

2,382,197

1,947,038

Interest payable and similar expenses

7

(351,822

)

(435,961

)

PROFIT BEFORE TAXATION

2,030,375

1,511,077

Tax on profit

8

(557,666

)

(435,140

)

PROFIT FOR THE FINANCIAL YEAR

1,472,709

1,075,937

PROFIT FOR THE YEAR

1,472,709

1,075,937

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,472,709

1,075,937

FIXED ASSETS

Intangible assets

10

-

-

Tangible assets

11

11,399,015

11,529,316

11,399,015

11,529,316

CURRENT ASSETS

Stocks

12

2,160,750

2,185,983

Debtors

13

4,208,901

3,655,768

Cash at bank and in hand

453,417

27,551

6,823,068

5,869,302

CREDITORS

Amounts falling due within one year

14

5,474,305

4,597,954

NET CURRENT ASSETS

1,348,763

1,271,348

TOTAL ASSETS LESS CURRENT LIABILITIES

12,747,778

12,800,664

CREDITORS

Amounts falling due after more than one year

15

(3,126,370

)

(4,030,087

)

PROVISIONS FOR LIABILITIES

19

(945,116

)

(941,654

)

NET ASSETS

8,676,292

7,828,923

CAPITAL AND RESERVES

Called up share capital

20

10,020

10,020

Retained earnings

21

8,666,272

7,818,903

SHAREHOLDERS' FUNDS

8,676,292

7,828,923

The financial statements were approved by the Board of Directors and authorised for issue on 23 July 2026 and were signed on its behalf by:

T Cull - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2024

10,020

7,170,106

7,180,126

Changes in equity

Dividends

-

(427,140

)

(427,140

)

Total comprehensive income

-

1,075,937

1,075,937

Balance at 31 March 2025

10,020

7,818,903

7,828,923

Changes in equity

Dividends

-

(625,340

)

(625,340

)

Total comprehensive income

-

1,472,709

1,472,709

Balance at 31 March 2026

10,020

8,666,272

8,676,292

Cash flows from operating activities

Cash generated from operations

1

2,243,507

2,255,380

Interest paid

(332,172

)

(418,160

)

Interest element of hire purchase payments paid

(19,650

)

(17,801

)

Tax paid

(332,061

)

(407,310

)

Net cash from operating activities

1,559,624

1,412,109

Cash flows from investing activities

Purchase of tangible fixed assets

(407,911

)

(259,092

)

Sale of tangible fixed assets

15,083

6,999

Interest received

32

28

Net cash from investing activities

(392,796

)

(252,065

)

Cash flows from financing activities

New loans in year

-

1,568,880

Loan repayments in year

(1,169,650

)

(1,879,620

)

Invoice financing

1,135,971

(1,489,857

)

Capital repayments in year

(291,485

)

(197,373

)

Amount introduced by directors

200,000

200,000

Amount withdrawn by directors

(200,000

)

-

Deferred government grant

9,542

9,542

Asset refinanced in year

-

386,090

Equity dividends paid

(425,340

)

(227,140

)

Net cash from financing activities

(740,962

)

(1,629,478

)

Increase/(decrease) in cash and cash equivalents

425,866

(469,434

)

Cash and cash equivalents at beginning of year

2

27,551

496,985

Cash and cash equivalents at end of year

2

453,417

27,551

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

31.3.26

31.3.25

£

£

Profit before taxation

2,030,375

1,511,077

Depreciation charges

736,921

689,201

Loss on disposal of fixed assets

7,693

2,442

Government grants

(9,542

)

(9,542

)

Finance costs

351,822

435,961

Finance income

(32

)

(28

)

3,117,237

2,629,111

Decrease/(increase) in stocks

25,233

(44,808

)

(Increase)/decrease in trade and other debtors

(553,133

)

34,176

Decrease in trade and other creditors

(345,830

)

(363,099

)

Cash generated from operations

2,243,507

2,255,380

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 March 2026

31.3.26

1.4.25

£

£

Cash and cash equivalents

453,417

27,551

Year ended 31 March 2025

31.3.25

1.4.24

£

£

Cash and cash equivalents

27,551

496,985

3.	ANALYSIS OF CHANGES IN NET DEBT

Other

non-cash

At 1.4.25

Cash flow

changes

At 31.3.26

£

£

£

£

Net cash

Cash at bank

and in hand

27,551

425,866

453,417

27,551

425,866

453,417

Debt

Finance leases

(579,340

)

291,485

(221,485

)

(509,340

)

Debts falling due

within 1 year

(1,278,097

)

(630,802

)

-

(1,908,899

)

Debts falling due

after 1 year

(3,562,615

)

664,481

-

(2,898,134

)

(5,420,052

)

325,164

(221,485

)

(5,316,373

)

Total

(5,392,501

)

751,030

(221,485

)

(4,862,956

)

1.	STATUTORY INFORMATION

Little & Cull Ltd is a private company, limited by shares, registered in England & Wales. The company's registered number and registered office can be found on the Company Information page. The company traded from two sites in the year namely, Battle Road, Heathfield Industrial Estate, Newton Abbot, Devon and Units B & C, Osprey Road, Sowton Industrial Estate, Exeter, Devon.

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.

Significant judgements and estimates

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements have had the most significant effect on amounts recognised in the financial statements;

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated lives. Asset residual values and useful lives are based on estimates and judgements and are reviewed and adjusted if necessary.

The value of stock includes an apportionment of overheads which is calculated by considering the total overhead costs against the number of stock units produced in the year.

Turnover

Turnover is measured at the fair value of the consideration received or receivable and represents the amount receivable for goods supplied, net of returns, discounts and rebates, excluding value added tax and other sales taxes.

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

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Freehold property

-

5% on cost and 2% on cost

Integral features

-

15% on cost and 10% on cost

Plant and machinery

-

15% on cost, 10% on cost, Straight line over the life of the lease and Straight line over 2 - 5 years

Motor vehicles

-

25% on cost and 20% on cost

Computer equipment

-

25% on cost and 15% on cost

An asset is recognised when expenditure is incurred on a piece of equipment, machinery or the like that is expected to have a useful life of more than one year.

Government grants

Government grants relating to fixed assets are recognised as deferred income and credited to profit and loss on a systematic basis over the useful economic lives of the related assets.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase and handling cost in bringing stocks to their present location and condition as well as an element of labour and overheads.

Financial instruments

(i) Financial assets

Basic financial assets, including trade and other debtors are initially recognised at the transaction price and therefore stated at amortised cost using the effective interest method, less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases, the debtors are stated at cost less impairment losses for bad and doubtful debts.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

(ii) Financial liabilities

Basic financial liabilities, including trade and other creditors, bank loans and other loans are initially recognised at transaction price, unless the arrangement constitutes a financing transaction.

Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Creditors 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 are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Dividends

Dividends declared for the year are disclosed in the financial statements in the period in which they are declared.