REGISTERED NUMBER: 15819426 (England and Wales)

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTOR AND

CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD 4 JULY 2024 TO 31 AUGUST 2025

FOR

GMS REALISATIONS GROUP LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Director

3

Report of the Independent Auditors

5

Consolidated Income Statement

8

Consolidated Other Comprehensive Income

9

Consolidated Balance Sheet

10

Company Balance Sheet

11

Consolidated Statement of Changes in Equity

12

Company Statement of Changes in Equity

13

Consolidated Cash Flow Statement

14

Notes to the Consolidated Cash Flow Statement

15

Notes to the Consolidated Financial Statements

17

DIRECTOR:

N J Male

REGISTERED OFFICE:

Admiral House

Waterfront East

Brierley Hill

West Midlands

DY5 1XG

REGISTERED NUMBER:

15819426 (England and Wales)

AUDITORS:

Blackthorns

Chartered Accountants

and Registered Auditors

Admiral House

Waterfront East

Brierley Hill

West Midlands

DY5 1XG

The director presents his strategic report of the company and the group for the period 4 July 2024 to 31 August 2025.

REVIEW OF BUSINESS

The company was incorporated on 4th July 2024 with an issued share capital of one Ordinary £0.10 share.

On 28 October 2024, a further 1,904 Ordinary £0.10 shares were issued in exchange for 50% of the issued share capital of GMS Group of Companies Limited, with the other 50% also being obtained by way of cash payment.

The company is an investment holding company and has not traded during the period.

The group provides, on a national basis, security services encompassing licensed activities such as manned guarding, mobile patrols, key holding and emergency response, as well as certain property support and maintenance services.

The group's consolidated profit after tax is £384,526.

PRINCIPAL RISKS AND UNCERTAINTIES

The key principal risk and uncertainty facing the group is a rising cost base which is driven by factors outside its control. This predominantly relates to employment law legislation and the groups policy to provide competitive employment contracts to its workforce.

The director does not believe there to be any other significant risks.

KEY PERFORMANCE INDICATORS

The group manages all of its functions centrally with key performance indicators outlined below:

- Turnover, Gross Profit and ACS Audit scoring

- Operations: client satisfaction and customer complaints

- Office: annual appraisal and 360 feedback

- Environment: ISO4001, environment

ON BEHALF OF THE BOARD:

N J Male - Director

15 January 2026

The director presents his report with the financial statements of the company and the group for the period 4 July 2024 to 31 August 2025.

INCORPORATION

The group was incorporated on 4 July 2024 .

PRINCIPAL ACTIVITY

The principal activity of the company is that of a holding company.

The principal activity of the group is the provision of security services.

DIVIDENDS

Dividends of £132,863 were declared during the period.

FUTURE DEVELOPMENTS

The director expects the groups general level of activity to continue to increase in the forthcoming year.

DIRECTOR

N J Male was appointed as a director on 4 July 2024 and held office during the whole of the period from then to the date of this report.

The director, being eligible, offers himself for election at the forthcoming first Annual General Meeting.

EMPLOYEE INVOLVEMENT

The group's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.

Information on matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.

DISABLED EMPLOYEES

The group's policy in respect of disabled persons is that their applications for employment are always fully and fairly considered, bearing in mind the aptitudes and abilities of the applicant concerned. In the event of a member of staff becoming disabled, every effort is made to ensure that employment within the group continues and where necessary, appropriate training is arranged. It is the group's policy that training, career development and promotion of disabled persons should, as far as possible, be identical with that of all other employees in a similar position.

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, Blackthorns, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

N J Male - Director

15 January 2026

Opinion

We have audited the financial statements of GMS Realisations Group Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 31 August 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 August 2025 and of the group's profit for the period 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 pages three and 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:

Based on our understanding of the company and industry we did not identify any risks of non compliance with laws and regulations that would impact on the company's ability to trade or have a material impact on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, such as the Companies Act 2006 and UK tax legislation. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risk was regarding the value of the investment in subsidiaries. Audit procedures performed included:

-

reviewing documents relating to the purchase of the sub group to ensure that the values are correctly recorded;

-

discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud;

-

reviewing correspondence for any issues of non-compliance;identifying and testing journal entries both at the year end and during the year, in particular any journal entries posted with unusual account combinations and posted by senior management:

-

challenging assumptions and judgements made by management in their significant accounting estimates and judgements: and

-

review of the going concern position of subsidiary companies

There are inherent limitations in the audit procedures described above and 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. Also, 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 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.

Victoria Brassington BA FCA (Senior Statutory Auditor)

for and on behalf of Blackthorns

Chartered Accountants

and Registered Auditors

Admiral House

Waterfront East

Brierley Hill

West Midlands

DY5 1XG

15 January 2026

TURNOVER

19,221,465

Cost of sales

16,679,694

GROSS PROFIT

2,541,771

Administrative expenses

1,817,008

OPERATING PROFIT

4

724,763

Interest payable and similar expenses

5

144,713

PROFIT BEFORE TAXATION

580,050

Tax on profit

6

195,524

PROFIT FOR THE FINANCIAL PERIOD

384,526

Profit attributable to:

Owners of the parent

384,526

PROFIT FOR THE PERIOD

384,526

OTHER COMPREHENSIVE INCOME

Fair value reserve on consolidation

799,810

Income tax relating to other comprehensive income

-

OTHER COMPREHENSIVE INCOME FOR THE PERIOD, NET OF INCOME TAX

799,810

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

1,184,336

Total comprehensive income attributable to:

Owners of the parent

1,184,336

FIXED ASSETS

Intangible assets

9

1,062,159

Tangible assets

10

43,678

Investments

11

Interest in associate

39,208

1,145,045

CURRENT ASSETS

Debtors

12

7,256,357

Cash at bank and in hand

122,169

7,378,526

CREDITORS

Amounts falling due within one year

13

6,947,715

NET CURRENT ASSETS

430,811

TOTAL ASSETS LESS CURRENT LIABILITIES

1,575,856

CREDITORS

Amounts falling due after more than one year

14

(522,192

)

PROVISIONS FOR LIABILITIES

18

(2,000

)

NET ASSETS

1,051,664

CAPITAL AND RESERVES

Called up share capital

19

191

Other reserves

20

799,810

Retained earnings

20

251,663

SHAREHOLDERS' FUNDS

1,051,664

The financial statements were approved by the director and authorised for issue on 15 January 2026 and were signed by:

N J Male - Director

FIXED ASSETS

Intangible assets

9

-

Tangible assets

10

-

Investments

11

828,759

828,759

CREDITORS

Amounts falling due within one year

13

308,104

NET CURRENT LIABILITIES

(308,104

)

TOTAL ASSETS LESS CURRENT LIABILITIES

520,655

CREDITORS

Amounts falling due after more than one year

14

520,464

NET ASSETS

191

CAPITAL AND RESERVES

Called up share capital

19

191

SHAREHOLDERS' FUNDS

191

Company's profit for the financial year

132,863

The financial statements were approved by the director and authorised for issue on 15 January 2026 and were signed by:

N J Male - Director

Called up

share

Retained

Other

Total

capital

earnings

reserves

equity

£

£

£

£

Changes in equity

Issue of share capital

191

-

-

191

Dividends

-

(132,863

)

-

(132,863

)

Total comprehensive income

-

384,526

799,810

1,184,336

Balance at 31 August 2025

191

251,663

799,810

1,051,664

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Changes in equity

Issue of share capital

191

-

191

Dividends

-

(132,863

)

(132,863

)

Total comprehensive income

-

132,863

132,863

Balance at 31 August 2025

191

-

191

Cash flows from operating activities

Cash generated from operations

1

(155,450

)

Interest paid

(143,376

)

Interest element of hire purchase payments paid

(1,337

)

Tax paid

(237,024

)

Net cash from operating activities

(537,187

)

Cash flows from investing activities

Purchase of tangible fixed assets

(18,664

)

Purchase of subsidiary

(828,569

)

Overdraft acquired on acquisition

(1,715,632

)

Net cash from investing activities

(2,562,865

)

Cash flows from financing activities

New loans in year

839,889

Loan repayments in year

(213,045

)

Capital repayments in year

(4,054

)

Share issue

191

Equity dividends paid

(132,863

)

Net cash from financing activities

490,118

Decrease in cash and cash equivalents

(2,609,934

)

Cash and cash equivalents at beginning of period

2

-

Cash and cash equivalents at end of period

2

(2,609,934

)

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

£

Profit before taxation

580,050

Depreciation charges

183,413

Finance costs

144,713

908,176

Increase in trade and other debtors

(1,725,979

)

Increase in trade and other creditors

662,353

Cash generated from operations

(155,450

)

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:

Period ended 31 August 2025

31.8.25

4.7.24

£

£

Cash and cash equivalents

122,169

-

Bank overdrafts

(2,732,103

)

-

(2,609,934

)

-

3.	ANALYSIS OF CHANGES IN NET DEBT

At 4.7.24

Cash flow

At 31.8.25

£

£

£

Net cash

Cash at bank and in hand

-

122,169

122,169

Bank overdrafts

-

(2,732,103

)

(2,732,103

)

-

(2,609,934

)

(2,609,934

)

Debt

Finance leases

-

(6,733

)

(6,733

)

Debts falling due within 1 year

-

(192,938

)

(192,938

)

Debts falling due after 1 year

-

(522,192

)

(522,192

)

-

(721,863

)

(721,863

)

Total

-

(3,331,797

)

(3,331,797

)

4.	ACQUISITION OF BUSINESS

£

Net assets acquired:

Tangible non-current assets

90,410

Investment in associate

39,208

Trade and other receivables

5,500,377

Cash at bank

1,289,492

Bank overdraft

(3,005,124

)

Trade and other payables

(3,460,971

)

Provisions for liabilities and charges

(5,000

)

448,392

Goodwill

1,180,177

1,628,569

Satisfied by:

Shares allotted

800,000

Cash

828,569

1,628,569

1.	STATUTORY INFORMATION

GMS Realisations Group Limited is a private company, limited by shares, registered in England and Wales, registered number 15819426. Its registered office is Admiral House, Waterfront East, Brierley Hill, West Midlands, DY5 1XG.

The financial statements are presented in Sterling, which is the functional currency of the company.

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.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the exemption under section 408 of the Companies Act 2006 and has not presented its own profit and loss account in these financial statements.

As permitted by FRS 102 section 1.12, the group has taken advantage of the disclosure exemption available for aggregate remuneration of key management personnel and related party transactions in relation to wholly owned group companies.

Basis of consolidation

The consolidated financial statements present the results of the company and its subsidiaries ("the group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.

The consolidated financial statements incorporate the results of business combinations using the purchase method. In the balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the consolidated profit and loss account from the date on which control is obtained. They are deconsolidated from the date control ceases.

Investments in associates

Investments in subsidiaries are measured at cost less accumulated impairment.

An entity is treated as an associate undertaking where the group exercises significant influence in that it has the power to participate in the operating and financial policy decisions.

In the consolidated accounts, interests in associated undertakings are accounted for using the equity method of accounting. Under this method an equity investment is initially recognised at the transaction price (including transaction costs) and is subsequently adjusted to reflect the investor's share of the profit or loss, other comprehensive income and the equity of the associate. The consolidated profit and loss includes the group's share of operating results, interest, pre-tax results and attributable taxation of such undertakings applying accounting policies consistent with those of the group. In the consolidated balance sheet, the interests in associated undertakings are shown as the group's share of the identifiable net assets, including any unamortised premium paid on the acquisition.

Any premium on acquisition is dealt with in accordance with the goodwill policy.

Critical accounting judgements and key sources of estimation uncertainty

The group makes estimates and assumptions concerning the future. The directors are also required to exercise judgement in the process of applying the group's accounting policies. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

In preparing these financial statements the director has made the following judgements:

Recoverability of trade debtors

Trade and other debtors are recognised to the extent that they are judged recoverable. The director review is performed to estimate the level of reserves required for irrecoverable debt. Provisions are made specifically against invoices where recoverability is uncertain.

The director makes allowances for doubtful debts based on an assessment of the recoverability of debtors. Allowances are applied to debtors where events or changes in circumstances indicate that the carrying amounts may not be recoverable. The director specifically analyses historical bad debts, customer creditworthiness, current economic trends and changes in customer payment terms when making a judgement to evaluate the adequacy of the provision for doubtful debts. Where the expectation is different from the original estimate, such differences will impact the carrying value of debtors and the charge in the statement of income and retained earnings.

Leasing

The company determines whether leases entered into by the company as a lessee are operating or finance leases. These decisions depend on the assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis based on an evaluation of the terms and conditions of the arrangements, and accordingly whether the lease requires an asset and liability to be recognised in the balance sheet.

Provisions

A provision is recognised when the company has a present legal or constructive obligation as a result of a past event for which it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Whether a present obligation is probable or not requires judgement. The nature and type of risks for these provisions differ and management's judgement is applied regarding the nature and extent of obligations in deciding if an outflow of resources is probable or not.

Taxation

There are many transactions and calculations for which the ultimate tax determination is uncertain. The company recognises liabilities for anticipated tax issues based on estimates of whether additional taxes will be due.

The director's estimation is required to determine the amount of deferred tax assets that can be recognised, based upon likely timing and level of future taxable profits together with an assessment of the effect of future tax planning strategies.

Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the group and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:

Rendering of services

Turnover from a contract to provide services is recognised when all of the following conditions are satisfied:

- the group has transferred the significant risks and rewards of ownership to the buyer;

- the group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the services provided;

- the amount of turnover can be measured reliably;

- it is probable that the group will receive consideration due under the transaction;

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

Goodwill

Goodwill is the difference between amounts paid on the acquisition of an asset and the fair value of the identifiable assets and liabilities. It is amortised to the profit and loss account over its estimated economic life as follows:

Goodwill - 10 years

Goodwill relates to the acquisition of certain trade and assets. The director believes that 10 years is a reasonable assumption due to the forecast plan for the business acquired.

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.

Improvements to property

-

25% on cost and 20% on cost

Fixtures and fittings

-

25% on cost and 20% on cost

Computer equipment

-

25% on cost

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying value exceeds the recoverable amount.

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses are determined by comparing the proceeds with the carrying amount and are recognised in the consolidated profit and loss account.

Investments in associates

Investments in associate undertakings are recognised at cost.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

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

Assets, obtained under hire purchase contracts and finance leases, are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Pension costs and other post-retirement benefits

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

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

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the groups cash management.