REGISTERED NUMBER: 12197007 (England and Wales)

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025

FOR

CH INVESTMENT HOLDING LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Statement of 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 Financial Statements

15

DIRECTORS:

L Cheng

D He

REGISTERED OFFICE:

Unit 5-7 Seven Stars Industrial Estate

Wheler Road

Coventry

West Midlands

CV3 4LB

REGISTERED NUMBER:

12197007 (England and Wales)

AUDITORS:

Galloways Accounting

Statutory Auditor

15 West Street

Brighton

East Sussex

BN1 2RL

The directors present their strategic report of the company and the group for the year ended 30 September 2025.

CH Investment Holding Limited is the parent holding company of three subsidiaries, JRD Innovations Limited, 8Bella UK Limited and Deep Logistics Limited.

REVIEW OF BUSINESS

The results for the year as set out in the Income Statement show an operating profit of £1,636,425 (2024 - £1,883,461) from turnover of £38,810,817 (2024 - £30,653,225).

At year end, net assets were £9,815,117 (2024 - £8,620,176).

PRINCIPAL RISKS AND UNCERTAINTIES

In common with all businesses, the company faces risks and uncertainties. The Directors adopt prudent policies to minimise risks and are actively involved in reducing the effects of any adverse circumstances which might arise.

The group's principal financial instruments comprise bank balances, trade debtors and trade creditors. The main purpose of these instruments is to raise funds for the group's operations and to finance the group's operations. In respect of these areas, risk is managed as follows:

-

Managing long-term contracts is essential to maintaining strong profit margins and consistent cash flows. By engaging with suppliers and customers, the directors ensure projects are delivered in line with forecasts.

-

Bank balances liquidity risk: a balance is maintained between the continuity of funding and flexibility through use of money market facilities where funds are available.

-

Trade debtors credit and cash flow risks: a tight control is maintained on the company's credit control regime.

-

Trade creditors liquidity risk: it is ensured that sufficient funds are available to meet amounts due.

In terms of non-financial risk, the group ensures that it is fully appraised of any regulatory or statutory changes and is committed to fulfilling its legal obligations.

DEVELOPMENT AND PERFORMANCE

The results for the financial period were viewed as satisfactory by the company's directors. Over the past two financial years, several measures have been implemented to control costs, enhance marketing efforts, and maintain competitive pricing. Despite a decrease in gross profit margins from 11% to 8%, they expect to build on current efforts and drive growth in the year ahead.

FINANCIAL KEY PERFORMANCE INDICATORS

Financial indicators include turnover and employment cost. Non-financial indicators include the number of sales orders and customer experience.

KPI

2025 £

2024 £

% Change

Commentary

Turnover

38,810,817

30,653,225

27%

The increase in revenue is driven by the increase in online presence particularly in 8Bella UK Ltd.

Gross profit

2,929,433

3,275,824

(11%)

The decrease in gross profit is largely due to an increase of cost of sales as a result of increased costs arising from wider global geopolitical issues. .

Operating profit

1,636,425

1,883,461

(13%)

The operating profit margin percentage has decreased from 6% in the prior year to 4% in the current year. There is a decrease in operating profit as a reflection from the movements above.

Net assets

9,815,117

8,620,176

14%

The increase in net assets is primarily due to the increase on the stock balance £2,430,176 (2024: £1,406,203)

ON BEHALF OF THE BOARD:

D He - Director

5 August 2026

The directors present their report with the financial statements of the company and the group for the year ended 30 September 2025.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of the sale and shipping of goods.

DIVIDENDS

The total distribution of dividends for the year ended 30 September was £49,500 (2024 - £40,000).

DIRECTORS

The directors shown below have held office during the whole of the period from 1 October 2024 to the date of this report.

L Cheng

D He

CHARITABLE DONATIONS

During the year, donations amounting to £5,500 (2024: £Nil) were made.

DIRECTORS' INDEMNITIES

As permitted by the Companies Act 2006, the Company has indemnified the directors in respect of proceedings brought by third parties and qualifying third party indemnity insurance was in place throughout the year and up to the date of approval of the financial statements.

DISCLOSURE IN THE STRATEGIC REPORT

In accordance with s414C(11) of the Companies Act, the following information has been contained within the company's strategic report, found on pages 2 and 3 of these accounts, which would otherwise be required by Schedule 7 of the "Large and Medium-sized Companies and Group Accounts and Reports Regulations 2008" to be included in the directors' report: consideration of important events occurring in the period and future developments.

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 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 group's auditors are aware of that information.

AUDITORS

The auditors, Galloways Accounting, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

D He - Director

5 August 2026

Opinion

We have audited the financial statements of CH Investment Holding Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2025 which comprise the Consolidated Statement of 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 Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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

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

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

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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. 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 risks were related to posting inappropriate journal entries and management bias in accounting estimates. Audit procedures performed by the engagement team included:

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

- reviewing minutes of meetings between those charged with governance;

- challenging assumptions and judgements made by management in determining their significant accounting estimates;

- reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

- challenging why certain items are excluded or included from the underlying profit and

- reviewing journal entries for appropriateness and to identify any unusual accounting entries.

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 by, for example, forgery or intentional misrepresentations, or through 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.

Neil Morris FCCA (Senior Statutory Auditor)

for and on behalf of Galloways Accounting

Statutory Auditor

15 West Street

Brighton

East Sussex

BN1 2RL

10 August 2026

TURNOVER

4

38,810,817

30,653,225

Cost of sales

(35,881,384

)

(27,377,401

)

GROSS PROFIT

2,929,433

3,275,824

Administrative expenses

(1,294,102

)

(1,392,932

)

1,635,331

1,882,892

Other operating income

1,094

569

OPERATING PROFIT

6

1,636,425

1,883,461

Interest receivable and similar income

7

244,556

256,865

1,880,981

2,140,326

Interest payable and similar expenses

8

(14,732

)

(1,574

)

PROFIT BEFORE TAXATION

1,866,249

2,138,752

Tax on profit

9

(431,880

)

(479,048

)

PROFIT FOR THE FINANCIAL YEAR

1,434,369

1,659,704

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,434,369

1,659,704

Profit attributable to:

Owners of the parent

1,264,954

1,464,888

Non-controlling interests

169,415

194,816

1,434,369

1,659,704

Total comprehensive income attributable to:

Owners of the parent

1,264,954

1,464,888

Non-controlling interests

169,415

194,816

1,434,369

1,659,704

FIXED ASSETS

Intangible assets

12

44,013

53,677

Tangible assets

13

202,797

235,844

Investments

14

890

890

247,700

290,411

CURRENT ASSETS

Stocks

15

2,430,176

1,406,203

Debtors

16

2,447,160

1,677,742

Cash at bank

7,984,016

8,266,305

12,861,352

11,350,250

CREDITORS

Amounts falling due within one year

17

3,119,409

2,837,845

NET CURRENT ASSETS

9,741,943

8,512,405

TOTAL ASSETS LESS CURRENT LIABILITIES

9,989,643

8,802,816

CREDITORS

Amounts falling due after more than one year

18

(42,258

)

(48,284

)

PROVISIONS FOR LIABILITIES

20

(132,268

)

(134,356

)

NET ASSETS

9,815,117

8,620,176

CAPITAL AND RESERVES

Called up share capital

21

1,100

1,100

Other reserves

22

300,000

300,000

Retained earnings

22

9,245,119

8,029,665

SHAREHOLDERS' FUNDS

9,546,219

8,330,765

NON-CONTROLLING INTERESTS

268,898

289,411

TOTAL EQUITY

9,815,117

8,620,176

The financial statements were approved by the Board of Directors and authorised for issue on 5 August 2026 and were signed on its behalf by:

D He - Director

FIXED ASSETS

Intangible assets

12

-

-

Tangible assets

13

-

-

Investments

14

305,152

305,152

305,152

305,152

CURRENT ASSETS

Debtors

16

109,339

9,338

Cash at bank

2,390,236

945,382

2,499,575

954,720

CREDITORS

Amounts falling due within one year

17

30,644

17,901

NET CURRENT ASSETS

2,468,931

936,819

TOTAL ASSETS LESS CURRENT LIABILITIES

2,774,083

1,241,971

CAPITAL AND RESERVES

Called up share capital

21

1,100

1,100

Other reserves

22

300,000

300,000

Retained earnings

22

2,472,983

940,871

SHAREHOLDERS' FUNDS

2,774,083

1,241,971

Company's profit/(loss) for the financial year

1,581,612

(2,660

)

The financial statements were approved by the Board of Directors and authorised for issue on 5 August 2026 and were signed on its behalf by:

D He - Director

Called up

share

Retained

Other

capital

earnings

reserves

£

£

£

Balance at 1 October 2023

1,100

6,604,777

300,000

Changes in equity

Total comprehensive income

-

1,464,888

-

Dividends

-

(40,000

)

-

Total transactions with owners, recognised directly in equity

-

(40,000

)

-

Balance at 30 September 2024

1,100

8,029,665

300,000

Changes in equity

Total comprehensive income

-

1,264,954

-

Dividends

-

(49,500

)

-

Total transactions with owners, recognised directly in equity

-

(49,500

)

-

Balance at 30 September 2025

1,100

9,245,119

300,000

Non-controlling

Total

Total

interests

equity

£

£

£

Balance at 1 October 2023

6,905,877

94,595

7,000,472

Changes in equity

Total comprehensive income

1,464,888

194,816

1,659,704

Dividends

(40,000

)

-

(40,000

)

Total transactions with owners, recognised directly in equity

(40,000

)

-

(40,000

)

Balance at 30 September 2024

8,330,765

289,411

8,620,176

Changes in equity

Total comprehensive income

1,264,954

169,415

1,434,369

Dividends

(49,500

)

(189,928

)

(239,428

)

Total transactions with owners, recognised directly in equity

(49,500

)

(189,928

)

(239,428

)

Balance at 30 September 2025

9,546,219

268,898

9,815,117

Called up

share

Retained

Other

Total

capital

earnings

reserves

equity

£

£

£

£

Balance at 1 October 2023

1,100

983,531

300,000

1,284,631

Changes in equity

Total comprehensive income

-

(2,660

)

-

(2,660

)

Dividends

-

(40,000

)

-

(40,000

)

Total transactions with owners, recognised directly in equity

-

(40,000

)

-

(40,000

)

Balance at 30 September 2024

1,100

940,871

300,000

1,241,971

Changes in equity

Total comprehensive income

-

1,581,612

-

1,581,612

Dividends

-

(49,500

)

-

(49,500

)

Total transactions with owners, recognised directly in equity

-

(49,500

)

-

(49,500

)

Balance at 30 September 2025

1,100

2,472,983

300,000

2,774,083

Cash flows from operating activities

Cash generated from operations

27

291,612

1,845,394

Finance costs paid

-

(1,375

)

Tax paid

(511,960

)

(241,735

)

Net cash from operating activities

(220,348

)

1,602,284

Cash flows from investing activities

Purchase of tangible fixed assets

(46,193

)

(183,756

)

Sale of tangible fixed assets

-

9,251

Interest received

244,556

256,865

Net cash from investing activities

198,363

82,360

Cash flows from financing activities

Loan repayments in year

-

(26,663

)

Capital repayments in year

(6,026

)

(14,520

)

Amount withdrawn by directors

(118

)

(648

)

Interest paid

(14,732

)

(199

)

Equity dividends paid

(49,500

)

(40,000

)

Dividends to non-controlling interests

(189,928

)

(20,104

)

Net cash from financing activities

(260,304

)

(102,134

)

(Decrease)/increase in cash and cash equivalents

(282,289

)

1,582,510

Cash and cash equivalents at beginning of year

28

8,266,305

6,683,795

Cash and cash equivalents at end of year

28

7,984,016

8,266,305

1.	STATUTORY INFORMATION

CH Investment Holding 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.

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.

Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Group (its subsidiaries). Control is achieved where the Group has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. Accounting policies consistent with those of the parent are used and all intra-group transactions, balances, income and expenses are eliminated in full on consolidation.

Going concern

When preparing the accounts, the directors have made an assessment of the ability of the entity to exist as a going concern for a period of at least 12 months from the date upon which these accounts are approved. A company is a going concern unless management either intends to liquidate the entity or cease trading, or has no realistic alternative but to do so. In assessing whether the going concern assumption is appropriate, management have taken into account all available information about the future, which includes future expected cash flows, financing requirements (and the expectation of obtaining these) and future trading performance.

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The directors therefore continue to adopt the going concern basis of accounting in preparing the financial statements.

Financial Reporting Standard 102 - reduced disclosure exemptions

In preparing the parent company financial statements of CH Investment Holding Limited, advantage has been taken of the following disclosure exemptions available in FRS 102 on the basis the information is included in the consolidated financial statements:

•

the requirement to present a statement of cash flows and the related notes;

•

financial instrument disclosures (except for intercompany balances) including:

–

categories of financial instruments;

–

items of income, expenses, gains or losses relating to financial instruments; and

–

exposure to and management of financial risks;

Turnover

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

Turnover is made up of amounts receivable for the sale of goods and provision of delivery, postage and repacking services.

Sale of goods

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the goods have left the warehouse and are passed to the courier.

Sale of goods via e-commerce

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the goods have been delivered and confirmation received from the customer.

Rendering of services

Turnover from provision of delivery, postage and repacking services and is recognised once the goods have been accepted by couriers and left the company's warehouse.

Logistics

Turnover is recognised in these accounts at the point at which the goods arrive at the airport warehouse as this is the point at which the sale cannot be cancelled and therefore the company is certain that it will receive income for the delivery.

Turnover is recognised net of VAT and sales discounts.

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.

Computer software is being amortised evenly over its estimated useful life of ten years.

Tangible fixed assets

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

Leasehold

- 4 years on a straight line basis

Plant & Machinery

- 4 years on a straight line basis

Motor Vehicles

- 5 years on a straight line basis

Fixtures & Fittings

- 4 years on a straight line basis

Computer Equipment

- 3-4 years on a straight line basis

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Fixed asset investments

Unlisted investments are recognised as financial assets and are initially measured at cost, which is typically the fair value of consideration paid.

Investments are reviewed at each reporting date for indicators of impairment. If an impairment loss is identified, it is recognised in the profit and loss account.

Stocks

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

Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual

arrangements entered into. An equity instrument is any contract that evidences a residual interest in the

assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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

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

Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, 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.