REGISTERED NUMBER: 00849433 (England and Wales)

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2025

FOR

D & R GROUP PLC

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

7

Statement of Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

16

DIRECTORS:

G D Henderson

J A K Riding

SECRETARY:

G D Henderson

REGISTERED OFFICE:

Sterling House

27 Hatchlands Road

Redhill

Surrey

RH1 6RW

BUSINESS ADDRESS:

Railway Approach

Consort Road

Peckham

London

SE15 2PR

REGISTERED NUMBER:

00849433 (England and Wales)

AUDITORS:

GBJ Financial Limited

Statutory Auditor

Sterling House

27 Hatchlands Road

Redhill

Surrey

RH1 6RW

The directors present the strategic report and financial statements for the year ended 31 May 2025.

REVIEW OF BUSINESS

The principal activity of the company continued to be that of erection and hire of scaffolding equipment.

Given the current climate, the directors accept the sales performance in the year to 31 May 2025. Gross profit margins have increased to 4.21% from 3.15%, back to their 2023 levels.

Operating costs have reduced slightly in the year resulting in a lower loss before tax of £1,587,615 (2024: £1,626,489).

PRINCIPAL RISKS AND UNCERTAINTIES

The directors constantly monitor the risks and uncertainties facing the company with particular reference to the exposure on liquidity, stocks, interest rates and credit risks. They are confident that there are suitable policies in place and there are no material risks and uncertainties which have not been considered.

The company uses various financial instruments which include loans, cash and various items, such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the company's operations. The existence of these financial instruments exposes the company to a number of financial risks, which are described in more detail below.

The main risks arising from the company's financial instruments are credit risk and liquidity risk. The Directors review and agree policies for managing each of these risks which are summarised below. These policies have remained unchanged from previous years.

Credit risk

The company's principal financial assets are cash and trade debtors. The principal credit risk arises therefore from its trade debtors.

In order to manage credit risk, the directors set credit limits for customers, based on a combination of

payment history and third party credit references. These limits are reviewed by the Directors on a

regular basis in conjunction with debt aging, collection history and market awareness of the company's

customers.

Liquidity risk

The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. The company's policy throughout the year has been to achieve this objective through the day to day involvement of management in business decisions rather than through setting maximum or minimum liquidity ratios.

SECTION 172(1) STATEMENT

This section serves as our S172 statement and should be read in conjunction with the whole Strategic Report. S172 Companies Act 2006 requires directors to take into consideration the interests of stakeholders in their decision making. The directors continue to have regard to the interests of the company's employees and other stakeholders including the impact of its activities on the community, the environment and the company's reputation when making decisions. The directors consider that acting in good faith and fairly between stakeholders is most likely to promote the success of the company. Our principal stakeholders are engaged with on a regular basis.

KEY PERFORMANCE INDICATORS

Key Performance indicators

The directors use a number of measures, both financial and non-financial to monitor and benchmark the performance of the company. They regard the following as the key financial indicators of performance:

- Operating profit - measuring the profits generated by the company's operations.

- Net cash flow from operating activities - measuring the performance in translating operating profit into cash flow through management of working capital and the monitoring of debtor days and stock levels.

The key non-financial indicators are associated with the company's ability to maintain its existing customer and supplier base.

FUTURE DEVELOPMENTS

The directors will continue to grow and develop the business in the future but anticipate that business will be very competitive during the current year.

POSITION OF THE COMPANY AT THE YEAR END

The results for the year and the financial position at the year end were considered satisfactory by the directors.

ON BEHALF OF THE BOARD:

G D Henderson - Director

18 August 2026

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

DIVIDENDS

No dividends will be distributed for the year ended 31 May 2025.

DIRECTORS

G D Henderson has held office during the whole of the period from 1 June 2024 to the date of this report.

Other changes in directors holding office are as follows:

J A K Riding was appointed as a director after 31 May 2025 but prior to the date of this report.

R R Goldfinch ceased to be a director after 31 May 2025 but prior to the date of this report.

DISCLOSURE IN THE STRATEGIC REPORT

Details of items required under Schedule 7 to the Large and Medium-sized Companies and Groups (Accounts and Reports Regulations) 2008 are provided in the Strategic Report on pages 2 and 3.

DISABLED EMPLOYEES

The company gives full consideration to applications for employment from disabled persons where the requirements of the job can be adequately fulfilled by a handicapped or disabled person. Where existing employees become disabled, it is the company's policy wherever practicable to provide continuing employment under normal terms and conditions and to provide training, career development and promotion to disabled employees wherever appropriate.

ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS

The directors regularly engage with all stakeholders including customers, suppliers and other business partners. This enables the directors to enhance market focus, improve decision making and promote the long-term success of the company more effectively, and includes:

- regular engagement with major customers in support of our key account programme;

- regular meetings with major suppliers to ensure we are supporting their efforts to bring products and services to market at fair prices, with rigorous quality control and high levels of availability;

- regular contact with our bankers and professional advisers to discuss our strategy and performance;

- regular reviews with employees of their role in the business and how it contributes to the overall business performance.

STREAMLINED ENERGY AND CARBON REPORTING

Environmental Matters and Streamlined Energy and Carbon Reporting (SECR)

The company takes environmental matters seriously and continues to improve its impact on the local and wider environment.

From 1 August 2019 we are required to report under the new SECVR regulations which provides increased transparency on our energy efficiency and emissions as a business.

Reporting methodology

The information has been provided using the GHG Protocol Corporate Accounting and Reporting Standard and the 2019 UK Government Environmental Reporting Guidelines.

Energy Efficiency and Environmental Actions

The business has been looking at ways to reduce plastic usage with our customers and suppliers during the year and we have made significant progress to date in reducing usage. This is an ongoing project.

Intensity Ratio

The intensity ratio chosen was tC02e per full time employee. This was chosen as it was deemed to be the best metric which could be constantly used over time and would best reflect changes in our energy consumption, but also reflect changes in our operations.

Litres/Staff

numbers

Kwh

tC02e

% of total

2025

2024

2025

2024

2025

2024

2025

2024

Gas - total KWh Used for the year

57,127

44,988

308.79

243.18

42

35

Electricity - total KWh Used for the year

27,507

28,531

117.99

122.38

16

18

Transport - Litres used for the year

97,348

104,048

306.11

324.13

42

47

Number of staff / total C02

76

91

9.64

7.58

Tonnes of C02e per Employee

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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

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

The directors are also responsible for preparing the Strategic Report in accordance with applicable law and regulations.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

ON BEHALF OF THE BOARD:

G D Henderson - Director

18 August 2026

Opinion

We have audited the financial statements of D & R Group PLC (the 'company') for the year ended 31 May 2025 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 May 2025 and of its 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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Material uncertainty relating to going concern

In the year ended 31 May 2025 the company made losses after tax of £1,587,615 and the balance sheet had net assets of £8,730,127 at the year end date.

We draw attention to note 2 in the financial statements, which refers to the directors' assessment of the going concern of the company. At the year end date the company held cash funds of £145,908 and no assurances have been received that these funds are sufficient to maintain the company's operations for a period of at least 12 months from the date of this report.

No assurances have been received regarding the provision of financial support to the company from third parties and therefore, while the directors of the business have concluded that the company remains a going concern at the year end date and the financial statements should be prepared on this basis, despite its financial position, we have not received sufficient and appropriate evidence to support this view.

A material uncertainty therefore exists that casts significant doubt on the company's ability to continue as a going concern for a period of at least 12 months from the date when the financial statements are authorised for issue. Our opinion is not modified in respect of this matter.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

- we identified the laws and regulations applicable to the company through discussions with directors and from our knowledge and experience of the construction industry;

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment and health and safety legislation;

Additionally, we assessed the susceptibility of the company's financial statements to material misstatement, including obtaining and understanding how fraud might occur by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

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

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.

Alison Palmer (Senior Statutory Auditor)

for and on behalf of GBJ Financial Limited

Statutory Auditor

Sterling House

27 Hatchlands Road

Redhill

Surrey

RH1 6RW

18 August 2026

TURNOVER

4

4,435,449

5,028,535

Cost of sales

4,248,684

4,870,073

GROSS PROFIT

186,765

158,462

Administrative expenses

1,795,072

1,864,606

(1,608,307

)

(1,706,144

)

Other operating income

-

26,400

OPERATING LOSS

6

(1,608,307

)

(1,679,744

)

Interest receivable and similar income

20,692

62,588

(1,587,615

)

(1,617,156

)

Interest payable and similar expenses

7

-

9,333

LOSS BEFORE TAXATION

(1,587,615

)

(1,626,489

)

Tax on loss

8

(153,042

)

(251,077

)

LOSS FOR THE FINANCIAL YEAR

(1,434,573

)

(1,375,412

)

OTHER COMPREHENSIVE INCOME

Revaluation in the year

1,970,476

-

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

1,970,476

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

535,903

(1,375,412

)

FIXED ASSETS

Tangible assets

9

7,418,931

6,024,077

Investment property

10

813,136

813,136

8,232,067

6,837,213

CURRENT ASSETS

Debtors

11

1,182,491

1,104,651

Cash at bank and in hand

145,908

1,269,665

1,328,399

2,374,316

CREDITORS

Amounts falling due within one year

12

520,014

543,352

NET CURRENT ASSETS

808,385

1,830,964

TOTAL ASSETS LESS CURRENT LIABILITIES

9,040,452

8,668,177

CREDITORS

Amounts falling due after more than one year

13

(29,357

)

(69,215

)

PROVISIONS FOR LIABILITIES

15

(127,926

)

(251,696

)

NET ASSETS

8,883,169

8,347,266

CAPITAL AND RESERVES

Called up share capital

16

250,000

250,000

Revaluation reserve

17

2,213,703

186,655

Fair value reserve

17

517,323

420,853

Retained earnings

17

5,902,143

7,489,758

SHAREHOLDERS' FUNDS

8,883,169

8,347,266

The financial statements were approved by the Board of Directors and authorised for issue on 18 August 2026 and were signed on its behalf by:

G D Henderson - Director

Called up

share

Retained

Revaluation

Fair value

Total

capital

earnings

reserve

reserve

equity

£

£

£

£

£

Balance at 1 June 2023

250,000

8,865,170

186,655

420,853

9,722,678

Changes in equity

Total comprehensive income

-

(1,375,412

)

-

-

(1,375,412

)

Balance at 31 May 2024

250,000

7,489,758

186,655

420,853

8,347,266

Changes in equity

Total comprehensive income

-

(1,587,615

)

2,027,048

96,470

535,903

Balance at 31 May 2025

250,000

5,902,143

2,213,703

517,323

8,883,169

Cash flows from operating activities

Cash generated from operations

1

(1,057,177

)

(820,794

)

Interest paid

2,229

(231

)

Interest element of hire purchase payments paid

(2,229

)

(9,102

)

Net cash from operating activities

(1,057,177

)

(830,127

)

Cash flows from investing activities

Purchase of tangible fixed assets

(46,771

)

(7,489

)

Sale of tangible fixed assets

35,440

7,000

Interest received

20,692

62,588

Net cash from investing activities

9,361

62,099

Cash flows from financing activities

Loan repayments in year

-

(28,350

)

Capital repayments on HP in year

(75,941

)

(87,177

)

Net cash from financing activities

(75,941

)

(115,527

)

Decrease in cash and cash equivalents

(1,123,757

)

(883,555

)

Cash and cash equivalents at beginning of year

2

1,269,665

2,153,220

Cash and cash equivalents at end of year

2

145,908

1,269,665

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

2025

2024

£

£

Loss before taxation

(1,587,615

)

(1,626,489

)

Depreciation charges

591,723

608,925

Loss/(profit) on disposal of fixed assets

24,502

(7,000

)

Finance costs

-

9,333

Finance income

(20,692

)

(62,588

)

(992,082

)

(1,077,819

)

(Increase)/decrease in trade and other debtors

(77,840

)

408,423

Increase/(decrease) in trade and other creditors

12,745

(151,398

)

Cash generated from operations

(1,057,177

)

(820,794

)

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 May 2025

31.5.25

1.6.24

£

£

Cash and cash equivalents

145,908

1,269,665

Year ended 31 May 2024

31.5.24

1.6.23

£

£

Cash and cash equivalents

1,269,665

2,153,220

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.6.24

Cash flow

At 31.5.25

£

£

£

Net cash

Cash at bank and in hand

1,269,665

(1,123,757

)

145,908

1,269,665

(1,123,757

)

145,908

Debt

Finance leases

(136,611

)

75,941

(60,670

)

(136,611

)

75,941

(60,670

)

Total

1,133,054

(1,047,816

)

85,238

1.	STATUTORY INFORMATION

D & R Group PLC 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 Company 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 as modified by the revaluation of certain assets.

Turnover and revenue recognition

Turnover represents the amounts receivable for scaffold erection and hire services net of VAT and trade discounts.

Revenue is recognised as and when the company satisfies a performance obligation and the significant risks and rewards have been transferred to the customer. Where a contract has only been partially completed at the balance sheet date, turnover represents the fair value of the service provided to date based on the stage of completion of contract activity at the balance sheet date. Where payments are received from customers in advance of services provided, the amounts are recorded as deferred income and included as part of the debtors due within one year.

Tangible fixed assets

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

Freehold land and buildings are included in the balance sheet at their fair value in accordance with the transitional provisions under FRS 102. No depreciation is charged as it is the company's policy to revalue these assets regularly to ensure that no material differences exist between the book value and the fair value quoted in the accounts.

The depreciation policy for other classes of fixed assets in the accounts are as follows:

Leasehold property 10% straight line

Plant and machinery 3% - 12.5% straight line, depending on asset

Fixtures, fittings & equipment 10% - 20% straight line, depending on asset

Motor vehicles 25% straight line

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

Investment properties are included in the balance sheet at their fair value.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the 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.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet.

Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held

under finance leases are depreciated over their estimated useful lives.

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

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

Pension costs and other post-retirement benefits

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

Impairment of fixed assets

The need for any fixed asset impairment write-down is assessed by comparison of the carrying value of the asset against its recoverable amount.

Going concern

In preparing the financial statements the directors are required to assess the company's ability to continue to trade as a going concern for the foreseeable future.

In undertaking this assessment, the directors have given due consideration to the company's banking facilities, historical and current trading, together with the forward-looking projections. The company has prepared detailed cashflow forecasts and undertaken scenario modelling.

The directors acknowledge that the trading performance of the company for the financial year is not as successful as they had hoped, with a loss of £1,587,615 and a significant reduction in the level of cash funds available. They have reviewed the cash flow forecasts and put plans in place which they believe are sufficient to support their belief that the company will have sufficient financing in place to ensure cash flows requirements are satisfied for at least the next twelve months.. As such, the directors continue to adopt the going concern basis of accounting in preparing the annual financial statements. Consequently, the financial statements do not include any adjustments that would result if the company were unable to continue as a going concern.

The directors have also considered the impact of events in Ukraine and the wider economy, including the impact of inflation, in making this assessment.

Cash and cash equivalents

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

Finance costs

Finance costs are charged to the Statement of Comprehensive income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised when approved by the shareholders at an annual general meeting.

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Debtors

Short-term debtors are measured at the transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Provisions for liabilities

Provisions are made where an event has taken place that gives the company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.

Provisions are charged as an expense to the Statement of Comprehensive Income in the year that the company becomes aware of the obligation, and are measured at the best estimate at the Statement of Financial Position date of the expenditure to settle the obligation, taking into account relevant risk and uncertainties.

When payments are eventually made, they are charged to the provision carried in the Balance Sheet.