REGISTERED NUMBER: 01376547 (England and Wales)

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements for the Year Ended 31 December 2025

for

Future Forwarding Company Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Income Statement

10

Consolidated Other Comprehensive Income

11

Consolidated Balance Sheet

12

Company Balance Sheet

13

Consolidated Statement of Changes in Equity

14

Company Statement of Changes in Equity

15

Consolidated Cash Flow Statement

16

Notes to the Consolidated Cash Flow Statement

17

Notes to the Consolidated Financial Statements

18

DIRECTORS:

C G Smith

R J Lawford

REGISTERED OFFICE:

Unit 7 Turnberry Park

Turnberry Park Road

Gildersome

Leeds

West Yorkshire

LS27 7LE

REGISTERED NUMBER:

01376547 (England and Wales)

AUDITORS:

Richard Smedley Limited

Chartered Accountants & Registered Auditors

Richmond House

Lawnswood Business Park

Redvers Close

Leeds

West Yorkshire

LS16 6QY

The group's key financial performance indicators during the year were as follows:

REVIEW OF BUSINESS

Turnover: £35,776,796 (2024: £31,098,682)

Operating Profit: £891,537 (2024: £441,470)

Gross Profit Percentage: 10.6% (2024: 10.9%)

The financial year ended 31 December 2025 was a strong year for the group, with turnover increasing by 15.0% to £35.8 million and operating profit more than doubling to £891,537. This performance was achieved despite continued competitive pressures within the freight forwarding and logistics sector, where pricing remained challenging across several transportation modes.

Growth was driven by increased shipment volumes across the group's core air, sea and road freight services, supported by continued investment in sales activity, customer development and operational capabilities. Whilst gross profit percentage reduced slightly to 10.6% from 10.9%, this reflects the ongoing competitive market environment and a deliberate focus on volume growth and customer acquisition.

The introduction of US tariffs during 2025 created additional uncertainty for businesses exporting to the United States. The tariffs contributed to increased caution amongst customers, with some delaying or reassessing export activity pending greater clarity on future trading arrangements. This uncertainty, together with continued geopolitical tensions, has led to fluctuations in freight demand, changes in shipping patterns and increased complexity across global supply chains. The directors will continue to monitor developments closely and remain focused on supporting customers through flexible logistics solutions and maintaining a diversified customer and service portfolio.

During the year, the group continued to strengthen its national presence through strategic investment and expansion. In November 2025, the group established Future Forwarding Farnborough Limited, extending its geographic coverage into the South of England and enhancing its ability to support customers on a nationwide basis. This expansion forms part of the group's long-term growth strategy and provides a platform for future business development opportunities.

Future Forwarding Glasgow Limited delivered a significantly improved financial performance during the year, moving from a loss before tax of £166k in its first year of trading to a profit before tax of £144k in 2025. This turnaround was driven by increased customer activity, higher shipment volumes across its core freight forwarding services and the continued development of its local customer base. The business has established a strong platform for future growth and is now making a positive contribution to the overall performance of the group.

The group also continued to invest in technology, systems and people to support future growth. This was largely in the implementation of artificial intelligence ("AI") solutions designed to improve operational efficiency and enhance customer service. AI has been deployed to automate routine administrative processes, improve the speed and accuracy of data processing and support employees in delivering more efficient customer solutions. The directors view AI as an important strategic investment that will enable the Group to improve productivity, enhance decision-making and support sustainable growth, whilst allowing employees to focus on higher value-added activities.

Looking ahead to 2026, the directors remain cautiously optimistic. Whilst inflationary pressures have eased and interest rates are expected to continue their gradual decline, geopolitical uncertainty remains a significant consideration. Ongoing conflicts in Ukraine and the Middle East, together with continued trade tensions between major global economies, have the potential to disrupt international supply chains and impact freight markets. In addition, UK businesses continue to face increased employment costs arising from higher National Insurance contributions and increases to the National Minimum Wage.

The group remains focused on sustainable growth, operational excellence and delivering high levels of customer service. Through continued investment in technology, people and customer relationships, the directors believe the group is well positioned to capitalise on future opportunities, increase market share and deliver long-term value for its stakeholders.

ON BEHALF OF THE BOARD:

R J Lawford - Director

6 August 2026

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

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of freight forwarding.

DIVIDENDS

The total interim distribution of dividends for the year ended 31 December 2025 were £145,000.

DIRECTORS

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

C G Smith

R J Lawford

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

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

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

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

ON BEHALF OF THE BOARD:

R J Lawford - Director

6 August 2026

Opinion

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

In our opinion the financial statements:

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

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

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

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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.

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 directors and other management, and from our commercial knowledge and sector experience;

- We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements, including the Companies Act 2006 and taxation legislation. The company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on the financial statements, for instance through the imposition of fines, penalties or litigation such as employment, environmental, health and safety and building regulations;

- We asses the external compliance with the laws and regulations identified above through making enquiries of management 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.

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

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 any 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 statements disclosures to underlying supporting documentation

- Enquiring of management as to actual and potential litigation and claims;

- Reviewing correspondence with HMRC and relevant regulators websites for notice of any breaches; and

- Review of relevant legal or professional costs within the accounting records for any evidence of previously undetected or unreported instances of non-compliance.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from the 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 directors and other management and the inspection of regulatory and legal correspondence, if any.

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 Smedley (Senior Statutory Auditor)

for and on behalf of Richard Smedley Limited

Chartered Accountants & Registered Auditors

Richmond House

Lawnswood Business Park

Redvers Close

Leeds

West Yorkshire

LS16 6QY

13 August 2026

TURNOVER

3

35,780,836

31,098,682

Cost of sales

31,988,253

27,724,052

GROSS PROFIT

3,792,583

3,374,630

Administrative expenses

2,901,078

2,947,946

891,505

426,684

Other operating income

4

32

14,787

OPERATING PROFIT

6

891,537

441,471

Interest receivable and similar income

7

97,159

128,694

988,696

570,165

Interest payable and similar expenses

8

108

3,274

PROFIT BEFORE TAXATION

988,588

566,891

Tax on profit

9

264,881

136,877

PROFIT FOR THE FINANCIAL YEAR

723,707

430,014

Profit attributable to:

Owners of the parent

697,408

474,318

Non-controlling interests

26,299

(44,304

)

723,707

430,014

PROFIT FOR THE YEAR

723,707

430,014

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

723,707

430,014

Total comprehensive income attributable to:

Owners of the parent

697,408

474,318

Non-controlling interests

26,299

(44,304

)

723,707

430,014

FIXED ASSETS

Tangible assets

12

360,349

326,802

Investments

13

-

-

360,349

326,802

CURRENT ASSETS

Debtors

14

4,361,536

3,569,235

Cash at bank and in hand

4,649,981

4,563,721

9,011,517

8,132,956

CREDITORS

Amounts falling due within one year

15

4,574,508

4,243,617

NET CURRENT ASSETS

4,437,009

3,889,339

TOTAL ASSETS LESS CURRENT LIABILITIES

4,797,358

4,216,141

PROVISIONS FOR LIABILITIES

18

46,899

44,389

NET ASSETS

4,750,459

4,171,752

CAPITAL AND RESERVES

Called up share capital

19

21,315

21,315

Capital redemption reserve

20

10,719

10,719

Retained earnings

20

4,736,427

4,184,019

SHAREHOLDERS' FUNDS

4,768,461

4,216,053

NON-CONTROLLING INTERESTS

(18,002

)

(44,301

)

TOTAL EQUITY

4,750,459

4,171,752

The financial statements were approved by the Board of Directors and authorised for issue on 6 August 2026 and were signed on its behalf by:

R J Lawford - Director

FIXED ASSETS

Tangible assets

12

322,043

282,967

Investments

13

9

8

322,052

282,975

CURRENT ASSETS

Debtors

14

4,225,262

3,761,666

Cash at bank and in hand

4,503,246

4,569,285

8,728,508

8,330,951

CREDITORS

Amounts falling due within one year

15

4,162,162

4,231,532

NET CURRENT ASSETS

4,566,346

4,099,419

TOTAL ASSETS LESS CURRENT LIABILITIES

4,888,398

4,382,394

PROVISIONS FOR LIABILITIES

18

37,323

33,430

NET ASSETS

4,851,075

4,348,964

CAPITAL AND RESERVES

Called up share capital

19

21,315

21,315

Capital redemption reserve

20

10,719

10,719

Retained earnings

20

4,819,041

4,316,930

SHAREHOLDERS' FUNDS

4,851,075

4,348,964

Company's profit for the financial year

647,111

607,228

The financial statements were approved by the Board of Directors and authorised for issue on 6 August 2026 and were signed on its behalf by:

R J Lawford - Director

Called up

Capital

share

Retained

redemption

capital

earnings

reserve

£

£

£

Balance at 1 January 2024

21,315

3,819,701

10,719

Changes in equity

Dividends

-

(110,000

)

-

Total comprehensive income

-

474,318

-

Balance at 31 December 2024

21,315

4,184,019

10,719

Changes in equity

Dividends

-

(145,000

)

-

Total comprehensive income

-

697,408

-

Balance at 31 December 2025

21,315

4,736,427

10,719

Non-controlling

Total

Total

interests

equity

£

£

£

Balance at 1 January 2024

3,851,735

-

3,851,735

Changes in equity

Increase in share capital

-

3

3

Dividends

(110,000

)

-

(110,000

)

Total comprehensive income

474,318

(44,304

)

430,014

Balance at 31 December 2024

4,216,053

(44,301

)

4,171,752

Changes in equity

Dividends

(145,000

)

-

(145,000

)

Total comprehensive income

697,408

26,299

723,707

Balance at 31 December 2025

4,768,461

(18,002

)

4,750,459

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2024

21,315

3,819,702

10,719

3,851,736

Changes in equity

Dividends

-

(110,000

)

-

(110,000

)

Total comprehensive income

-

607,228

-

607,228

Balance at 31 December 2024

21,315

4,316,930

10,719

4,348,964

Changes in equity

Dividends

-

(145,000

)

-

(145,000

)

Total comprehensive income

-

647,111

-

647,111

Balance at 31 December 2025

21,315

4,819,041

10,719

4,851,075

Cash flows from operating activities

Cash generated from operations

1

521,227

661,867

Interest paid

(108

)

(3,274

)

Tax paid

(249,890

)

(305,536

)

Net cash from operating activities

271,229

353,057

Cash flows from investing activities

Purchase of tangible fixed assets

(150,128

)

(276,159

)

Sale of tangible fixed assets

13,000

39,694

Interest received

97,159

128,694

Net cash from investing activities

(39,969

)

(107,771

)

Cash flows from financing activities

Capital repayments in year

-

(5,061

)

Share issue

-

3

Equity dividends paid

(145,000

)

(110,000

)

Net cash from financing activities

(145,000

)

(115,058

)

Increase in cash and cash equivalents

86,260

130,228

Cash and cash equivalents at beginning of year

2

4,563,721

4,433,493

Cash and cash equivalents at end of year

2

4,649,981

4,563,721

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

31.12.25

31.12.24

£

£

Profit before taxation

988,588

566,891

Depreciation charges

116,581

89,197

(Profit)/loss on disposal of fixed assets

(13,000

)

74

Finance costs

108

3,274

Finance income

(97,159

)

(128,694

)

995,118

530,742

Increase in trade and other debtors

(792,301

)

(1,238,173

)

Increase in trade and other creditors

318,410

1,369,298

Cash generated from operations

521,227

661,867

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2025

31.12.25

1.1.25

£

£

Cash and cash equivalents

4,649,981

4,563,721

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

4,563,721

4,433,493

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.25

Cash flow

At 31.12.25

£

£

£

Net cash

Cash at bank and in hand

4,563,721

86,260

4,649,981

4,563,721

86,260

4,649,981

Total

4,563,721

86,260

4,649,981

1.	STATUTORY INFORMATION

Future Forwarding Company Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements are presented in Sterling (£).

Going concern

After reviewing the company's forecasts and projections, the directors are confident the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

The directors recognise the principal risks and uncertainties which are currently affecting the business and have considered the extent to which they may materialise.

Consequently the company has implemented procedures and policies which will mitigate the risks as much as possible and ensure the company continues to trade throughout these uncertain economic conditions.

In considering the uncertainties ahead, the directors acknowledge that whilst operating results may deteriorate, the company is very well financially resourced, with excellent liquidity, and with the support of its banks and funding, it is well placed to withstand the effects of economic downturn.

Significant judgements and estimates

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Useful life of assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimate useful economic lives and residual values of the assets. The useful economic lives and residual vales are re-assessed annually. No changes to useful economic lives or residual values have been determined necessary this year. Details of depreciation rates can be found in note 2 and the deprecation charge.

Turnover

Rendering of Services

Turnover represents amounts receivable in respect of freight forwarding and fulfilment, stated exclusive of Value Added Tax.

Revenue on import, shipments are recognised on ETA (estimated time of arrival) at destination port/airport.

Revenue on export, shipments remain recognised on ETD (estimated time of departure) from origin port/airport.

Tangible fixed assets

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

Short leasehold

-

20% on cost

Fixtures & equipment

-

25% on cost

Motor vehicles

-

25% on cost

Financial instruments

All financial assets and financial liabilities are initially measured at transaction price (including transactions costs), except for those financial assets classified as fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of future payments discounted at a market rate of interest similar to debt interest.

Financial assets are derecognised when, and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the company transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the company, despite having retained some significant risks and rewards of ownership, has transferred control of the asset to another party and the other party has the practical ability to seel the asset in its entirety to an unrelated third party and is able to to exercise that ability unilaterally and without needing to impose additional restrictions on the the transfer.

Financial liabilities are derecognised only when the obligation specified in the contracts is discharged, cancelled or expires.

Derivative instruments

The company uses forward foreign currency contracts to reduce exposure to foreign exchange rates.

Derivative financial instruments are initially measured at fair value on the date on which a derivative contract is entered into and are subsequently measured at fair value through profit or loss. Derivatives are carried as assets when the fair value is positive and as liabilities when the fair value is negative.

Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash at banks and in hand and short term deposits with an original maturity date of three months or less. For the purpose of the cash flow statement, cash and cash equivalents consist of cash and cash equivalents as defined above, net of outstanding bank overdrafts.

Short-term debtors and creditors

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the income statement in other operating expenses.

Taxation

Taxation for the year 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.