REGISTERED NUMBER: 02029052 (England and Wales)

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2026

FOR

A & F SPRINKLERS LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Income Statement

9

Consolidated Other Comprehensive Income

10

Consolidated Balance Sheet

11

Company Balance Sheet

12

Consolidated Statement of Changes in Equity

13

Company Statement of Changes in Equity

14

Notes to the Consolidated Financial Statements

15

DIRECTORS:

J M Stansfield

Mrs L K Stansfield

D L Parker

J O Whitlock

N O'Connor

A P Paolozzi

SECRETARY:

Mrs L K Stansfield

REGISTERED OFFICE:

Unit 4, Gorrels Way

Transpennine Trading Estate

Rochdale

Lancashire

OL11 2PX

REGISTERED NUMBER:

02029052 (England and Wales)

AUDITORS:

Cresswells Accountants (UK) Limited

Chartered Accountants

and Statutory Auditors

12 Market Street

Hebden Bridge

West Yorkshire

HX7 6AD

The directors present their strategic report of the company and the group for the year ended 31st March 2026.

The principal activity of the companies continues to be that of:

A&F Sprinklers Limited - Designers and Installers of fire sprinkler protection systems, along with the maintenance and servicing of them.

A&F Sprinklers (Ireland) Limited - Installation of fire sprinklers.

Fire-Mech Fixings Limited - Manufacturers of bespoke bracketry and supply of components for fire sprinklers and other mechanical applications.

REVIEW OF BUSINESS

Installation, service and maintenance of sprinklers

Turnover increased by 51.2% compared with the previous year, while profit before tax also delivered strong growth, increasing by 61.6%. This was a major strategic focus and was achieved through comprehensive reviews of departmental performance, the supply chain, and internal processes.

Whilst our core business is warehousing and logistics, we have made strategic decisions in terms of different sectors we are engaging with.

The order book is growing and we have guaranteed main contracts jobs already secured into late 2027. Our other departments have many returning customers and works on-going and guaranteed for the medium to long term.

As ever, we are regularly monitoring our financial performance and being fluid in our decision making which has undoubtedly allowed us to continue improve and regularly analyse the business.

The prospects remain very encouraging.

Manufacture and sale of sprinklers

The company continues to grow, with turnover increasing by 27.4% compared to the previous year, alongside a 100.1% increase in net profit.

The fire sprinkler market is currently very buoyant. Thanks to our extensive stock holdings and exceptional customer service, we have strengthened relationships with existing customers while welcoming and expanding our base of new customers.

Having now operated from our integrated head office, manufacturing, and distribution facility for over two years, we continue to see the benefits of bringing everything under one roof, with efficiencies and collaboration delivering tangible improvements across the business.

We continually look to expand our stock range as well as our distribution network, working with bespoke couriers and our own fleet as well as opening in more geographical locations that we believe are an advantage to us.

Looking forward we have a considerable customer base and we will continue to provide the excellent service that we pride ourselves on, and with the addition and advancement of current employees we are hoping to add further to our customer base.

KEY PERFORMANCE INDICATORS

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

2026

2025

Change

Turnover

£61.8m

£41.1m

£20.7m

Gross Profit

£23.7m

£18.5m

£5.2m

Gross Profit Margin

38.3%

45.0%

(6.7

)

EBITDA

£8.3m

£3.8m

£4.5m

PRINCIPAL RISKS AND UNCERTAINTIES

The main risks facing the group are the competitive environment in which the group trades, but efforts are made to stay abridge of the industry and to react in a specific way when and if required.

FINANCIAL RISK MANAGEMENT

The group's operations expose it to a variety of financial risks that include the effects of credit risk, including that with cash and deposits. Customers are continually credit checked through our in-house processes.

Due to new products being sourced from overseas we also open ourselves up to currency risks. To minimise risk we hedge our currency with forward contracts.

We also closely monitor the business via internal KPI's which are reported and discussed in the directors meetings along with current developments and financial reports.

EMPLOYEE INVOLVEMENT

The group keeps its employees up to date on the matters relevant to them via regular staff meetings.

The training and development of the staff is also important to the group. All staff are given an induction when they start and their training needs are assessed and reviewed throughout the period.

ON BEHALF OF THE BOARD:

D L Parker - Director

3rd September 2026

The directors present their report with the financial statements of the company and the group for the year ended 31st March 2026.

DIVIDENDS

Interim dividends per share were paid during the year as follows:

A Ordinary £1

-

£85.15608

D Ordinary £1

-

£249.56327

B Ordinary £1

-

196.5832

C Ordinary £1

- 197.9818

The total distribution of dividends for the year ended 31st March 2026 will be £ 2,387,063 .

DIRECTORS

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

J M Stansfield

Mrs L K Stansfield

D L Parker

J O Whitlock

N O'Connor

Other changes in directors holding office are as follows:

M H Parkinson - resigned 13th November 2025

A P Paolozzi - appointed 19th September 2025

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), 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Cresswells Accountants (UK) Limited Chartered Accountants and Statutory Auditors will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

D L Parker - Director

3rd September 2026

Opinion

We have audited the financial statements of A & F Sprinklers Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31st March 2026 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 and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31st March 2026 and of the group's profit for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

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

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

Auditors' responsibilities for the audit of the financial statements

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

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

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures include the following:

-

we obtained an understanding of the legal and regulatory frameworks applicable to the company and the sector in which it operates. We determined the following laws and regulations were most significant: The Companies Act 2006, FRS 102 and Health and Safety Act.

-

we obtained an understanding of how the company is complying with those legal and regulatory frameworks by making inquiries to the management.

-

we assessed the susceptibility of the company's financial statements to material misstatement including how fraud might occur. Audit procedures performed by the audit team included:

- identifying and assessing the design effectiveness of controls management has in place to

prevent and detect fraud.

- understanding how those charged with governance considered and addressed the potential of

override of controls or other inappropriate influence over the financial reporting process.

- challenging assumptions and judgements made by management in its significant accounting

estimates.

- identifying and testing journal entries.

- assessing the extent of compliance with the relevant laws and regulations.

Because of 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.

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.

Sarah Helliwell BFP ACA FCCA FMAAT (Senior Statutory Auditor)

for and on behalf of Cresswells Accountants (UK) Limited

Chartered Accountants

and Statutory Auditors

12 Market Street

Hebden Bridge

West Yorkshire

HX7 6AD

8th September 2026

TURNOVER

3

61,813,381

41,095,657

Cost of sales

38,140,357

22,610,586

GROSS PROFIT

23,673,024

18,485,071

Administrative expenses

15,827,591

13,703,230

7,845,433

4,781,841

Other operating income

25,025

78,235

OPERATING PROFIT

5

7,870,458

4,860,076

Interest receivable and similar income

21,442

14,473

7,891,900

4,874,549

Interest payable and similar expenses

6

20,777

47,831

PROFIT BEFORE TAXATION

7,871,123

4,826,718

Tax on profit

7

1,941,660

1,057,000

PROFIT FOR THE FINANCIAL YEAR

5,929,463

3,769,718

Profit attributable to:

Owners of the parent

5,871,677

3,739,660

Non-controlling interests

57,786

30,058

5,929,463

3,769,718

PROFIT FOR THE YEAR

5,929,463

3,769,718

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

5,929,463

3,769,718

Total comprehensive income attributable to:

Owners of the parent

5,871,677

3,739,660

Non-controlling interests

57,786

30,058

5,929,463

3,769,718

FIXED ASSETS

Intangible assets

10

16,333

-

Tangible assets

11

1,415,533

1,456,299

Investments

12

-

-

1,431,866

1,456,299

CURRENT ASSETS

Stocks

13

2,397,055

2,488,125

Debtors

14

16,289,397

9,437,079

Cash at bank

4,261,570

1,904,348

22,948,022

13,829,552

CREDITORS

Amounts falling due within one year

15

13,179,762

7,557,333

NET CURRENT ASSETS

9,768,260

6,272,219

TOTAL ASSETS LESS CURRENT LIABILITIES

11,200,126

7,728,518

CREDITORS

Amounts falling due after more than one year

16

(113,965

)

(201,356

)

PROVISIONS FOR LIABILITIES

20

(257,760

)

(262,812

)

NET ASSETS

10,828,401

7,264,350

CAPITAL AND RESERVES

Called up share capital

21

11,402

11,130

Share premium

22

177,332

147,953

Retained earnings

22

10,569,126

7,084,512

SHAREHOLDERS' FUNDS

10,757,860

7,243,595

NON-CONTROLLING INTERESTS

23

70,541

20,755

TOTAL EQUITY

10,828,401

7,264,350

The financial statements were approved by the Board of Directors and authorised for issue on 3rd September 2026 and were signed on its behalf by:

D L Parker - Director

FIXED ASSETS

Intangible assets

10

-

-

Tangible assets

11

761,358

819,516

Investments

12

1,171

1,171

762,529

820,687

CURRENT ASSETS

Debtors

14

13,850,643

7,501,935

Cash at bank

4,098,305

1,761,936

17,948,948

9,263,871

CREDITORS

Amounts falling due within one year

15

10,876,282

5,158,577

NET CURRENT ASSETS

7,072,666

4,105,294

TOTAL ASSETS LESS CURRENT LIABILITIES

7,835,195

4,925,981

PROVISIONS FOR LIABILITIES

20

97,351

113,081

NET ASSETS

7,737,844

4,812,900

CAPITAL AND RESERVES

Called up share capital

21

11,402

11,130

Share premium

22

177,332

147,953

Retained earnings

22

7,549,110

4,653,817

SHAREHOLDERS' FUNDS

7,737,844

4,812,900

Company's profit for the financial year

5,282,356

3,487,391

The financial statements were approved by the Board of Directors and authorised for issue on 3rd September 2026 and were signed on its behalf by:

D L Parker - Director

Called up

share

Retained

Share

capital

earnings

premium

£

£

£

Balance at 1st April 2024

11,130

5,740,996

147,953

Changes in equity

Dividends

-

(2,396,144

)

-

Total comprehensive income

-

3,739,660

-

Balance at 31st March 2025

11,130

7,084,512

147,953

Changes in equity

Issue of share capital

272

-

29,379

Dividends

-

(2,387,063

)

-

Total comprehensive income

-

5,871,677

-

Balance at 31st March 2026

11,402

10,569,126

177,332

Non-controlling

Total

Total

interests

equity

£

£

£

Balance at 1st April 2024

5,900,079

6,697

5,906,776

Changes in equity

Dividends

(2,396,144

)

(16,000

)

(2,412,144

)

Total comprehensive income

3,739,660

30,058

3,769,718

Balance at 31st March 2025

7,243,595

20,755

7,264,350

Changes in equity

Issue of share capital

29,651

-

29,651

Dividends

(2,387,063

)

(8,000

)

(2,395,063

)

Total comprehensive income

5,871,677

57,786

5,929,463

Balance at 31st March 2026

10,757,860

70,541

10,828,401

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1st April 2024

11,130

3,562,570

147,953

3,721,653

Changes in equity

Dividends

-

(2,396,144

)

-

(2,396,144

)

Total comprehensive income

-

3,487,391

-

3,487,391

Balance at 31st March 2025

11,130

4,653,817

147,953

4,812,900

Changes in equity

Issue of share capital

272

-

29,379

29,651

Dividends

-

(2,387,063

)

-

(2,387,063

)

Total comprehensive income

-

5,282,356

-

5,282,356

Balance at 31st March 2026

11,402

7,549,110

177,332

7,737,844

1.	STATUTORY INFORMATION

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

The functional and the presentation currency for the company is considered to be Pound Sterling (£) because that is the currency of the primary economic environment in which the company operates. The financial statements have been prepared using round pounds only.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Financial Reporting Standard 102 - reduced disclosure exemptions

The group has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows.

Basis of consolidation

the consolidated financial statements incorporate the financial statements of the company and all group undertakings. These are adjusted, where appropriate, to conform to group policies. Acquisitions are accounted for under the acquisition method and goodwill on consolidation is capitalised and written off over 10 years from the year of acquisition. The results of companies acquired or disposed of are included in the group consolidated income statement after or up to the date that control passes respectively. As a consolidated group income statement is published, a separate income statement for the parent company is omitted from the group financial statements by virtue of section 408 of the Companies Act 2006.

Financial statements of the foreign subsidiaries which are included in the group consolidated financial statements where the function currency is other than Sterling, are translated using the current rate method, in which the balance sheet amounts are translated to the reporting currency using the exchange rate prevailing on the balance sheet date, while income statement amounts are translated using the period's average exchange rates.

Significant judgements and estimates

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported tor assets and liabilities as at the balance sheet date and the amounts reported for turnover and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.

(i) Valuation of long term contracts

The directors undertake a review, on a contract-by-contract basis, by reference to the stage of completion when the stage of completion, cost incurred and cost to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. When the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

The directors determine the need for provisions against ongoing long term contracts by reference to the stage of completeness of the contract and the expected future costs to complete the contract, assessed on a contract-by-contract basis.

(ii) Useful economic lives of tangible assets

The annual amortisation and depreciation charges for intangible and tangible fixed assets is sensitive to changes in the estimated useful lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.

(iii) Stock provisions

In determining the need for the impairment of stock the directors have made significant judgements as to the saleability of the stock that is being held in the company, together with the costs to complete and make that sale.

(iv) Impairment of debtors

The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the age ink profile of debtors and historical experience.

Turnover

Turnover is recognised at the fair value of consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlements and volume rebates.

Sale of goods

Turnover from the sale of goods is recognised when significant risks and rewards of ownership of the goods has been transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.

Revenue from contracts

Revenue from contracts for the provision of services is recognised by reference to the stage of completion when the stage of completion, cost incurred and cost to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. When the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

Full provision is made for losses on all contracts in the year in which the loss is first foreseen.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

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

Tangible fixed assets

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

Improvements to property

-

over 10 years

Plant and machinery

-

over 7 years

Fixtures and fittings

-

over 5 years

Motor vehicles

-

over 5 years

Computer equipment

-

over 4 years

Investments in subsidiaries

Investments in subsidiary undertakings are initially recorded at cost with consideration for any diminution in value which is expected to be permanent.

Stocks

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

Financial instruments

The company and group have chosen to adopt the Sections 11 and 12 of FRS 102 in respect of financial instruments.

(i) Financial assets

Basic financial assets, including trade and other debtors and cash and bank balances are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

The company and group have no 'Other financial assets'.

Financial assets are derecognised when (a) the contractual rights to the cashflow from the asset expire or are settled or (b) substantially all the risks and rewards of ownership of the asset are transferred to another party or (c) control ot the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

(ii) Financial liabilities

Basic financial liabilities, including trade and other creditors and hire purchase contracts, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, here the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

The company and group have no 'Other financial liabilities'.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

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.