REGISTERED NUMBER: 06835899 (England and Wales)

C F Struthers (Holdings) Limited

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements for the Year Ended 30th June 2025

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

5

Consolidated Statement of Comprehensive Income

8

Consolidated Balance Sheet

9

Company Balance Sheet

10

Consolidated Statement of Changes in Equity

11

Company Statement of Changes in Equity

12

Consolidated Cash Flow Statement

13

Notes to the Consolidated Cash Flow Statement

14

Notes to the Consolidated Financial Statements

15

DIRECTORS:

N Burton

M J Graves

SECRETARY:

M J Graves

REGISTERED OFFICE:

Millennium Works

Valletta Street

Hedon Road

Hull

East Yorkshire

HU9 5NP

REGISTERED NUMBER:

06835899 (England and Wales)

AUDITORS:

Smailes Goldie

Chartered Accountants

Statutory Auditor

Regent's Court

Princess Street

Hull

East Yorkshire

HU2 8BA

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

PRINCIPAL ACTIVITIES

The principal activities of the group during the period are the marketing, design, supply, project management delivery and commissioning of waste heat recovery, boilers, dryers and pressure systems associated with the worldwide oil and gas and steelmaking sectors, in addition to waste to energy in UK.

REVIEW OF BUSINESS

The Financial Statements include the trading period of 1st July 2024 to 30th June 2025.

Satisfactory increase in business activity with good results from its offshore activities.

The business continues to produce a first-class product, which is now widely acknowledged as being the best solution available Worldwide. Struthers CWHRU (Circular Waste Heat Recovery Unit) continues to be favoured and in the later part of the period was awarded further High-Profile projects based upon previous project performance and in particular the Technically Advanced product and UK build quality.

Continued Research and Development has formed a large part of the business focus during this period. The Group's first of a kind Waste to Energy Project being the main area of activity. The Group has seen a large market for small scale projects of this type.

The Group has invested £1.1m of its own working capital to develop and construct a multi-million-pound Waste to Energy Project using one of the Group's patented innovations. This prototype reference site has proved to be a great success. Early feedback suggests a very healthy market exists and on that basis the Group is very well positioned to prosper and enjoy the benefit of the substantial investment.

This level of expenditure on the project is reflected in the resulting for the period.

The Group has continued with subcontract fabrication and whilst Turnover increased in this sector margins were down due to ongoing uplift in employment cost and competitive pricing.

Moving forward the Directors are confident of an uplift in both turnover and margin. The business already having strong order book with increased margins forecast.

Large offshore Waste Heat Recovery Projects for Blue Chip companies will boost the future years trading back in line with normal results.

Further recruitment is expected in both technical and workshop-based trades. The Group's commitment to training continues with 100% success rate in apprenticeships.

The business continues to operate its strict Quality Policy in line with its accreditations together with further continuation in maintaining its ASME U and S stamp accreditation.

The Directors and Managers of the business continue their commitment to Health and Safety.

GOING CONCERN

High level of optimism reported by the Directors for the forthcoming period, well placed on Offshore Projects together with the land based WTe project opportunities and traditional fabrication. The Group is now well placed with further excellent referenced projects to move forward with high degree of confidence.

PRINCIPAL RISKS AND UNCERTAINTIES

Directors are confident that the continued diversification strategy will ensure that any risk be minimised.

KEY PERFORMANCE INDICATORS

The Directors report regular monitoring of its business sectors and improvements as required are implemented to mitigate issues as they arise.

FINANCIAL RISK MANAGEMENT

Finances are monitored daily/weekly with cash flow prediction and strong credit control in hand to ensure financial stability.

ON BEHALF OF THE BOARD:

Director

13th August 2026

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

DIVIDENDS

The total distribution of dividends for the year ended 30th June 2025 was £263,000.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

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

N Burton

M J Graves

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

ON BEHALF OF THE BOARD:

N Burton - Director

13th August 2026

Opinion

We have audited the financial statements of C F Struthers (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30th June 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 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 30th June 2025 and of the group's loss 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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation. An understanding of these laws and regulations and the extent of compliance was obtained through discussion with management and inspecting legal and regulatory correspondence.

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 and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;

- reading the minutes of meetings of those charged with governance;

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

- reviewing correspondence with HMRC, relevant regulators and the company's legal advisors.

Due to the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission, or misrepresentation.

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.

Peter Dearing BSc FCCA (Senior Statutory Auditor)

for and on behalf of Smailes Goldie

Chartered Accountants

Statutory Auditor

Regent's Court

Princess Street

Hull

East Yorkshire

HU2 8BA

13th August 2026

TURNOVER

3

8,652,798

8,283,952

Cost of sales

7,050,647

5,745,278

GROSS PROFIT

1,602,151

2,538,674

Distribution costs

182,241

220,100

Administrative expenses

1,359,974

1,320,858

1,542,215

1,540,958

59,936

997,716

Other operating income

(1,500

)

-

OPERATING PROFIT

5

58,436

997,716

Interest receivable and similar income

12,571

6,095

71,007

1,003,811

Interest payable and similar expenses

6

108,384

117,927

(LOSS)/PROFIT BEFORE TAXATION

(37,377

)

885,884

Tax on (loss)/profit

7

(7,873

)

(284,753

)

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(29,504

)

1,170,637

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(29,504

)

1,170,637

(Loss)/profit attributable to:

Owners of the parent

(29,504

)

1,170,637

Total comprehensive income attributable to:

Owners of the parent

(29,504

)

1,170,637

FIXED ASSETS

Intangible assets

10

299,180

359,015

Tangible assets

11

3,789,529

3,833,531

Investments

12

-

-

4,088,709

4,192,546

CURRENT ASSETS

Stocks

13

1,287,613

1,332,793

Debtors

14

2,468,423

3,485,405

Cash at bank and in hand

2,936,429

2,013,125

6,692,465

6,831,323

CREDITORS

Amounts falling due within one year

15

3,652,571

3,455,813

NET CURRENT ASSETS

3,039,894

3,375,510

TOTAL ASSETS LESS CURRENT LIABILITIES

7,128,603

7,568,056

CREDITORS

Amounts falling due after more than one year

16

(1,147,301

)

(1,286,377

)

PROVISIONS FOR LIABILITIES

20

(145,075

)

(152,948

)

NET ASSETS

5,836,227

6,128,731

CAPITAL AND RESERVES

Called up share capital

21

60,001

60,001

Share premium

22

540,000

540,000

Revaluation reserve

22

1,987,169

1,987,169

Retained earnings

22

3,249,057

3,541,561

SHAREHOLDERS' FUNDS

5,836,227

6,128,731

The financial statements were approved by the Board of Directors and authorised for issue on 13th August 2026 and were signed on its behalf by:

N Burton - Director

FIXED ASSETS

Intangible assets

10

-

-

Tangible assets

11

-

-

Investments

12

1,200,986

1,200,986

1,200,986

1,200,986

CURRENT ASSETS

Debtors

14

527,000

527,000

CREDITORS

Amounts falling due within one year

15

1,080,192

1,080,192

NET CURRENT LIABILITIES

(553,192

)

(553,192

)

TOTAL ASSETS LESS CURRENT LIABILITIES

647,794

647,794

CAPITAL AND RESERVES

Called up share capital

21

60,001

60,001

Share premium

540,000

540,000

Retained earnings

47,793

47,793

SHAREHOLDERS' FUNDS

647,794

647,794

Company's profit for the financial year

263,000

117,000

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Directors and authorised for issue on 13th August 2026 and were signed on its behalf by:

N Burton - Director

Called up

share

Retained

Share

Revaluation

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1st July 2023

60,001

2,487,924

540,000

1,987,169

5,075,094

Changes in equity

Dividends

-

(117,000

)

-

-

(117,000

)

Total comprehensive income

-

1,170,637

-

-

1,170,637

Balance at 30th June 2024

60,001

3,541,561

540,000

1,987,169

6,128,731

Changes in equity

Dividends

-

(263,000

)

-

-

(263,000

)

Total comprehensive income

-

(29,504

)

-

-

(29,504

)

Balance at 30th June 2025

60,001

3,249,057

540,000

1,987,169

5,836,227

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1st July 2023

60,001

47,793

540,000

647,794

Changes in equity

Dividends

-

(117,000

)

-

(117,000

)

Total comprehensive income

-

117,000

-

117,000

Balance at 30th June 2024

60,001

47,793

540,000

647,794

Changes in equity

Dividends

-

(263,000

)

-

(263,000

)

Total comprehensive income

-

263,000

-

263,000

Balance at 30th June 2025

60,001

47,793

540,000

647,794

Cash flows from operating activities

Cash generated from operations

1

1,428,856

1,922,345

Interest paid

(103,409

)

(111,256

)

Interest element of hire purchase payments paid

(4,975

)

(6,671

)

Tax paid

34,106

88,474

Net cash from operating activities

1,354,578

1,892,892

Cash flows from investing activities

Purchase of tangible fixed assets

(56,739

)

(131,546

)

Sale of tangible fixed assets

13,500

34,592

Interest received

12,571

6,095

Net cash from investing activities

(30,668

)

(90,859

)

Cash flows from financing activities

Loan repayments in year

(103,332

)

(103,334

)

Capital repayments in year

(34,274

)

15,270

Equity dividends paid

(263,000

)

(117,000

)

Net cash from financing activities

(400,606

)

(205,064

)

Increase in cash and cash equivalents

923,304

1,596,969

Cash and cash equivalents at beginning of year

2

2,013,125

416,156

Cash and cash equivalents at end of year

2

2,936,429

2,013,125

1.	RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2025

2024

£

£

(Loss)/profit before taxation

(37,377

)

885,884

Depreciation charges

145,575

151,542

Loss/(profit) on disposal of fixed assets

1,500

(14,638

)

Finance costs

108,384

117,927

Finance income

(12,571

)

(6,095

)

205,511

1,134,620

Decrease in stocks

45,180

119,182

Decrease/(increase) in trade and other debtors

982,876

(1,696,238

)

Increase in trade and other creditors

195,289

2,364,781

Cash generated from operations

1,428,856

1,922,345

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 30th June 2025

30/6/25

1/7/24

£

£

Cash and cash equivalents

2,936,429

2,013,125

Year ended 30th June 2024

30/6/24

1/7/23

£

£

Cash and cash equivalents

2,013,125

416,156

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/7/24

Cash flow

At 30/6/25

£

£

£

Net cash

Cash at bank and in hand

2,013,125

923,304

2,936,429

2,013,125

923,304

2,936,429

Debt

Finance leases

(80,616

)

34,274

(46,342

)

Debts falling due within 1 year

(103,333

)

-

(103,333

)

Debts falling due after 1 year

(1,239,999

)

103,332

(1,136,667

)

(1,423,948

)

137,606

(1,286,342

)

Total

589,177

1,060,910

1,650,087

1.	STATUTORY INFORMATION

C F Struthers (Holdings) Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared in accordance with applicable accounting standards including Financial Reporting Standards 102 "The Financial Reporting Standard Applicable in the UK and Republic of Ireland" (FRS 102) and the Companies Act 2006. The financial statements have been prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Going concern

The financial statements have been prepared on a going concern basis which the directors consider appropriate.The directors are confident that the company's relations with its customers and suppliers, and its current trading, leave the company well placed to manage its business risk successfully.

Basis of consolidation

The consolidated financial statements include the financial statements of the company and all of its subsidiary undertakings made up to 30th June 2025. The results of companies acquired in the period are included from the effective date of acquiring control.

Significant judgements and estimates

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year include:

In respect of long term contracts there is inevitably some uncertainty on the anticipated costs to completion. However, only in those cases where, in the directors opinion, those can be estimated reliably is any attributable profit accounted for.

Turnover

Revenue represents sales to outside customers, net of VAT and trade discounts, in the ordinary course of business for goods supplied as a principle and for services provided.

Sales of products are recognised when the significant risks and rewards of ownership are transferred to the customer and they have a legally binding obligation to settle under any terms of the contract.

In the case of long term contracts providing that the outcome can be assessed with reasonable certainty, the revenues and costs on such contracts are recognised based on overall contract profitability, costs incurred to date and estimated to complete, or stage of completion where more appropriate. Where the outcome cannot be measured reliably, contract costs are recognised as an expense in the period in which they are incurred and contract turnover is recognised to the extent of costs incurred that it is probable will be recoverable.

Full provision is made for any estimated losses on completion of contracts having regard for the overall substance of the arrangements.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2021, is being amortised evenly over its estimated useful life of ten years.

Goodwill on consolidation represents the difference between the consideration paid and the fair value of the net assets 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.

Other patents are being amortised evenly over their estimated useful life of ten years.

Tangible fixed assets

Tangible fixed assets are stated at cost or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:

Freehold property

- 2.5% on cost

Improvement to leasehold property

- 20% on cost

Plant and machinery etc

- 10% on cost

Fixtures and fittings

- 10% - 33.33% on cost

Motor Vehicles

- 25% on cost

Freehold property is valued by the directors using information available from professional valuations.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

Contract work in progress is included in debtors stated at net realisable value. Cumulative turnover (i.e. the total turnover recorded in respect of the contract in the profit and loss accounts of all accounting periods since inception of the contract) is compared with total payments on account. If turnover exceeds payments on account an "amount recoverable on contracts" is established and separately disclosed within debtors. If payments on account are greater than turnover to date, the excess is classified within creditors.

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.

Deferred tax

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

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

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

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Foreign currency

Foreign currency transactions are initially recognised by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction.

Monetary assets and liabilities denominated in a foreign currency at the balance sheet date are translated using the closing rate.