REGISTERED NUMBER: 04968449 (England and Wales)

Group Strategic Report,

Report of the Directors and

Consolidated Financial Statements

for the Year Ended 31 December 2025

for

SUTTON PARK HOLDINGS LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

7

Consolidated Statement of Comprehensive Income

11

Consolidated Balance Sheet

12

Company Balance Sheet

13

Consolidated Statement of Changes in Equity

14

Company Statement of Changes in Equity

15

Consolidated Cash Flow Statement

16

Notes to the Consolidated Cash Flow Statement

17

Notes to the Consolidated Financial Statements

18

Directors:

D Fulton

J L Shannon

C Thomas

M P Yarwood

Secretary:

J L Shannon

Registered office:

37 Lichfield Street

Burton On Trent

Staffordshire

DE14 3RH

Registered number:

04968449 (England and Wales)

Auditors:

S&W Audit

Pall Mall

1 Pollen Square

59 King Street

Manchester

M2 4PD

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

Review of business

The principal activity has remained that of a privately owned car dealership group, with this company being the holding company and trading via Sutton Park Motor Company Limited.

Sutton Park Motor Company Limited is a privately owned Motor Dealer Group with 7 locations across the Midlands, representing 3 brands.

The business remains financially stable and predominantly self-funded, reflecting strong underlying foundations and prudent financial management.

However, trading conditions in this sector continue to be challenging, particularly due to the government-mandated transition to electric vehicles.

While this shift is a regulatory necessity, public resistance to adopting electric vehicles has slowed progress and created financial difficulty across the industry.

The Directors remain confident in the stability of the business moving forward, which allows for consideration should future opportunities arise and well-positioned to navigate ongoing change.

Principal risks and uncertainties

The principal risks and uncertainties are considered to be:

a) GENERAL ECONOMIC CONDITIONS

The group and company operate in a retail environment and are therefore reliant on consumer spending.

The economic conditions are still uncertain and as a result, the directors have adapted the business over the previous 12 months, and will continue to monitor economic conditions and further government announcements in these areas to mitigate the impact on the group and company.

b) MANUFACTURER RELATIONSHIPS AND SUPPLY

The group relies on the strength of its relationships with the vehicle manufacturers to deliver a significant component of group trading. Changes in the strategy of those key manufacturers could materially impact the group's results. Linked to this the group is reliant on new vehicle products from its franchise partners and therefore there are risks regarding available, quality and pricing of new products set by the manufacturers. It is in the manufacturers best interests to be competitive in this area and therefore the risk is considered low, and is offset by other core areas such as used vehicles sales, parts sales and service work.

c) USED VEHICLE PRICES

Used vehicles price movements can present a significant risk in the event that the market price moves rapidly between the point of purchase and point of sale of a used vehicle which impacts anticipated margins. Used vehicles stocks are regularly monitored with a focus on stock turn to reduce the length of time that used vehicles are in stock, and review prices to ensure they remain competitive to achieve this.

d) COMPETITION AND PEOPLE

The market is highly competitive with various alternatives that customers can look to. The company is proud of its reputation for customer service, quality and value to mitigate this risk.This reputation is due to investment in people and training over the years, to reinforce the Sutton Park brand. The group undertakes regular reviews of remuneration and packages to ensure that it attracts and retains its best people.

Section 172(1) statement

The directors confirm that they have acted in a way that they considered to be in good faith, and to promote the success of the group for the benefit of its members as a whole, and in doing so have had regard (amongst other matters) to the issues below:

- the likely consequences of any decisions in the long term

- the interests of the group's employees

- the need to foster the group's business relationships with suppliers, customers and others

- the impact of the group's operations on the community and the environment

- the desirability of the group maintaining a reputation for high standards of business conduct

- the need to act fairly as between members of the group

Key performance indicators

The directors consider that the key performance indicators are as follows:

2025

2024

Turnover

£146,334,513

£149,378,133

Gross profit

£4,601,323

£5,088,081

Gross margin

3.14%

3.41%

Return on capital employed

2.65%

6.91%

On behalf of the board:

C Thomas - Director

16 July 2026

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

Principal activity

The principal activity of the group in the year under review was that of a car dealership group.

Dividends

The total distribution of dividends for the year ended 31 December 2025 will be £nil (2024 - £110,500)

Future developments

The directors consider that the business will be well placed to take advantage of any future opportunities which may present themselves.

Directors

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

D Fulton

J L Shannon

C Thomas

M P Yarwood

Financial instruments

The group uses various financial instruments including loans, overdrafts, cash and various items such as trade debtors and trade creditors that arise directly from operations. The group does not use derivative financial instruments.

The existence of these financial instruments exposes the group to a number of financial risks, which are described in more detail below:

a) Liquidity risk

The group makes efforts to manage the financial risk by the monitoring of cashflow to ensure that the group is able to meet its foreseeable debts as they fall due and the invest any cash assets profitably.

b) Interest rate risk

The group sometimes uses bank borrowings to finance its operations during peak periods. Due to the limited use of this facility the directors do not deem it necessary to hedge against interest rate fluctuations. Bank loans are taken out at market rates considered to be affordable by the directors.

c) Credit risk

The group's financial assets are cash and trade debtors. The credit risk associated with cash is minimal. To manage credit risk with trade debtors the directors have implemented processes to ensure receipt of cleared funds for vehicle sales before the vehicle is released. Other trade debtors require approved credit in advance which is supported by references and payment is required within the group's credit terms.

Engagement with employees

Why is it important to engage

Ways to engage

Stakeholders' key interests

Engagement between our employees and our customers is the primary method by which we are able to exhibit the Sutton Park brand. Our employees are fundamental in delivering the customer experience and the key to business success

Recognition and reward environment, regular training and apprenticeship programmes

Career progression, remuneration and benefits, training and development, employee interaction and well-being

Engagement with suppliers, customers and others

Why is it important to engage

Ways to engage

Stakeholders' key interests

Engagement with our supply chain ensures that we are able to supply our customers with the models and aftersales products they desire whilst maintaining supply security as far as possible.

Regular supplier meetings to build upon long term relationships, product updates, corporate image maintenance and infrastructure support

Logistical efficiencies, cost efficiencies, maintenance of quality product supply and good workings relationship

Engagement with our customers enables us to understand our customers' need, deliver relevant products and aftersales services in order to retain existing customers and attract new ones

Brand TV and radio advertising, face to face, telephone, website, social media and satisfaction surveys

Availability of range and aftersales services together with convenience, reliability and trust

Statement of corporate governance arrangements

The group and company is exempt from the disclosure requirements in this area.

Streamlined energy and carbon reporting

This section includes our mandatory reporting of energy and greenhouse gas emissions for the period 1 January 2025 to 31 December 2025, pursuant to the Companies (Directors' Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018, implementing the government's Streamlined Energy and Carbon Reporting (SECR) policy.

Our methodology to calculate our greenhouse gas emissions is based on the 'Environmental Reporting Guidelines: Including streamlined energy and carbon reporting guidance (March 2019)', using DESNZ's 2024 and 2025 conversion factors as applicable. In some cases, consumption has been extrapolated from available data or direct comparison made to a comparable period.

We report using a financial control approach to define our organisational boundary. We have reported all material emission sources required by the regulations for which we deem ourselves to be responsible and have maintained records of all source data and calculations.

During the reporting period, no energy efficiency actions have been taken. The table below includes total energy consumption (reported as kWh) and greenhouse gas emissions for the sources required by the regulations, along with our intensity ratio.

01/01/2025 - 31/12/2025

01/01/2024 - 31/12/2024

Total Energy Consumption - Used for Emissions Calculation (kWh)

1,472,831

1,687,071

Gas Combustion Emissions, Scope 1 (tCO2e)

97.8

111.2

Purchased Electricity Emissions, Scope 2 (tCO2e)

103.9

113.0

Vehicle Fuel Combustion Emissions, Scope 1 (tCO2e)

74.0

111.6

Vehicle Fuel Combustion Emissions, Scope 2 (tCO2e)

2.3

4.3

Vehicle Fuel Combustion Emissions, Scope 3 (tCO2e)

1.7

2.4

Total Gross Reported Emissions (tCO2e)

279.8

342.6

Turnover (£m)

146.3

149.4

Intensity Ratio: Turnover (tCO2e / £m)

1.9

2.3

Disclosure in the strategic report

The directors' review of the business and, and their considerations of the risks and uncertainties surrounding the business, may be found in the Strategic Report.

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;

-	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 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.

On behalf of the board:

C Thomas - Director

16 July 2026

Opinion

We have audited the financial statements of Sutton Park Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 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 31 December 2025 and of the group's profit for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the report of the directors, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the report of the directors. 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. 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 course of 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 six, 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.

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:

We obtained a general understanding of the company's legal and regulatory framework through enquiry of management concerning their understanding of relevant laws and regulations, the entity's policies and procedures regarding compliance, and how they identify, evaluate and account for litigation cliams. We also drew on our existing understanding of the company's industry and regulation.

We understand that the company complies with the framework through outsourcing accounts preparation and tax compliance to external experts.

In the context of the audit, we considered those laws and regulations which determine the form and content of the financial statements, which are central to the company's ability to conduct its business, and where there is a risk that failure to comply could result in material penalties. We identified the following laws and regulations as being of significance in the context of the company:

- The Companies Act 2006 and FRS 102 in respect of the preparation and presentation of the financial statements

- UK taxation law

The senior statutory auditor led a discussion with senior members of the engagement team regarding the susceptibility of the entity's financial statements to material misstatement including how fraud might occur. The areas identified in this discussion were:

- Manipulation of financial statements, especially via bonus related income and associated debtor and stock valuations, via fraudulent entries.

These areas were communicated to the other members of the engagement team not present at the discussion.

The procedures we carried out to gain evidence in the above areas included:

- Substantive work on material areas affecting profits;

- Performing extended substantive testing on revenue streams, with a focus on occurrence of bonus income. We sampled a number of vehicle sales and tested the bonuses earned on these sale.

- Challenging assumptions and judgements made by management in its significant accounting estimates, in particular stock provision by reviewing after date sales of used vehicles and the CAP guide.

- Testing journal entries using data analytic software , focusing particularly on postings to unexpected or unusual accounts and those posted at unusual times

- Assessing the extent of compliance with applicable laws and regulations.

Overall, the senior statutory auditor was satisfied that the engagement team collectively had the appropriate competence and capabilities to identify or recognise irregularities.

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.

Antony Sassen FCA (Senior Statutory Auditor)

for and on behalf of S&W Audit

Pall Mall

1 Pollen Square

59 King Street

Manchester

M2 4PD

17 July 2026

Turnover

4

146,334,513

149,378,133

Cost of sales

(141,733,190

)

(144,290,052

)

Gross profit

4,601,323

5,088,081

Administrative expenses

(4,155,009

)

(3,941,185

)

Operating profit

6

446,314

1,146,896

Interest receivable and similar income

149

22,773

446,463

1,169,669

Interest payable and similar expenses

7

(259,508

)

(312,894

)

Profit before taxation

186,955

856,775

Tax on profit

8

(43,837

)

(275,345

)

Profit for the financial year

143,118

581,430

Other comprehensive income

-

-

Total comprehensive income for the year

143,118

581,430

Profit attributable to:

Owners of the parent

143,118

581,430

Total comprehensive income attributable to:

Owners of the parent

143,118

581,430

Fixed assets

Tangible assets

11

13,395,804

13,470,000

Investments

12

-

-

Investment property

13

-

-

13,395,804

13,470,000

Current assets

Stocks

14

24,225,933

20,028,313

Debtors

15

4,513,281

4,924,857

Cash in hand

3,849

2,627

28,743,063

24,955,797

Creditors

Amounts falling due within one year

16

25,305,765

21,725,949

Net current assets

3,437,298

3,229,848

Total assets less current liabilities

16,833,102

16,699,848

Provisions for liabilities

20

1,004,030

1,013,894

Net assets

15,829,072

15,685,954

Capital and reserves

Called up share capital

21

1,000

1,000

Revaluation reserve

22

4,273,894

4,273,894

Retained earnings

22

11,554,178

11,411,060

Shareholders' funds

15,829,072

15,685,954

The financial statements were approved by the Board of Directors and authorised for issue on 16 July 2026 and were signed on its behalf by:

C Thomas - Director

Fixed assets

Tangible assets

11

-

-

Investments

12

1,000

1,000

Investment property

13

12,600,000

12,600,000

12,601,000

12,601,000

Current assets

Debtors

15

338,405

603,467

Cash at bank

105,924

124,179

444,329

727,646

Creditors

Amounts falling due within one year

16

2,797

192,444

Net current assets

441,532

535,202

Total assets less current liabilities

13,042,532

13,136,202

Provisions for liabilities

20

830,030

825,894

Net assets

12,212,502

12,310,308

Capital and reserves

Called up share capital

21

1,000

1,000

Retained earnings

22

12,211,502

12,309,308

Shareholders' funds

12,212,502

12,310,308

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

(97,806

)

459,400

The financial statements were approved by the Board of Directors and authorised for issue on 16 July 2026 and were signed on its behalf by:

C Thomas - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2024

1,000

10,940,130

4,273,894

15,215,024

Changes in equity

Dividends

-

(110,500

)

-

(110,500

)

Total comprehensive income

-

581,430

-

581,430

Balance at 31 December 2024

1,000

11,411,060

4,273,894

15,685,954

Changes in equity

Total comprehensive income

-

143,118

-

143,118

Balance at 31 December 2025

1,000

11,554,178

4,273,894

15,829,072

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2024

1,000

11,960,408

11,961,408

Changes in equity

Dividends

-

(110,500

)

(110,500

)

Total comprehensive income

-

459,400

459,400

Balance at 31 December 2024

1,000

12,309,308

12,310,308

Changes in equity

Total comprehensive income

-

(97,806

)

(97,806

)

Balance at 31 December 2025

1,000

12,211,502

12,212,502

Cash flows from operating activities

Cash generated from operations

1

1,745,115

(212,178

)

Interest paid

(259,508

)

(312,894

)

Tax paid

(220,503

)

(197,610

)

Net cash from operating activities

1,265,104

(722,682

)

Cash flows from investing activities

Purchase of tangible fixed assets

(92,546

)

(288,895

)

Interest received

149

22,773

Net cash from investing activities

(92,397

)

(266,122

)

Cash flows from financing activities

Amount introduced by directors

25,179

136,250

Amount withdrawn by directors

(40,731

)

(246,250

)

Equity dividends paid

-

(110,500

)

Net cash from financing activities

(15,552

)

(220,500

)

Increase/(decrease) in cash and cash equivalents

1,157,155

(1,209,304

)

Cash and cash equivalents at beginning of year

2

(1,252,688

)

(43,384

)

Cash and cash equivalents at end of year

2

(95,533

)

(1,252,688

)

1.	Reconciliation of profit before taxation to cash generated from operations

2025

2024

£

£

Profit before taxation

186,955

856,775

Depreciation charges

166,741

125,970

Finance costs

259,508

312,894

Finance income

(149

)

(22,773

)

613,055

1,272,866

Increase in stocks

(4,197,620

)

(3,627,536

)

Decrease/(increase) in trade and other debtors

410,872

(1,857,181

)

Increase in trade and other creditors

4,918,808

3,999,673

Cash generated from operations

1,745,115

(212,178

)

2.	Cash and cash equivalents

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

Year ended 31 December 2025

31/12/25

1/1/25

£

£

Cash and cash equivalents

3,849

2,627

Bank overdrafts

(99,382

)

(1,255,315

)

(95,533

)

(1,252,688

)

Year ended 31 December 2024

31/12/24

1/1/24

£

£

Cash and cash equivalents

2,627

3,141

Bank overdrafts

(1,255,315

)

(46,525

)

(1,252,688

)

(43,384

)

3.	Analysis of changes in net debt

At 1/1/25

Cash flow

At 31/12/25

£

£

£

Net cash

Cash at bank and in hand

2,627

1,222

3,849

Bank overdrafts

(1,255,315

)

1,155,933

(99,382

)

(1,252,688

)

1,157,155

(95,533

)

Total

(1,252,688

)

1,157,155

(95,533

)

1.	Statutory information

Sutton Park Holdings is a private company, limited by shares, registered in England and Wales. The company's registered office address is 37 Lichfield Street, Burton on Trent, Staffordshire, DE14 3RH.

There is no single principal place of business.

The presentation currency of the financial statements is Pound Sterling (£),

The principal activity of the group in the year under review was that of garage proprietors.

The principal activity of the company was that of a holding company.

2.	Statement of compliance

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.

3.	Accounting policies

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

The directors have assessed and concluded that the group and company have adequate resources to meet their debts as they fall due for the period of 12 months after the approval of these financial statements.

Basis of preparation of financial statements

The preparation of the financial statements in compliance with FRS 102 require the use of certain critical accounting estimates. It also requires management to exercise judgment, in applying the company's accounting policies (see judgements in applying accounting policies and key sources of estimation uncertainty).

Basis of consolidation

The consolidated financial statements present the results of group and its own subsidiary ("The Group") as they formed a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.

The consolidated financial statements incorporate the results of business combinations using the purchase method, In the Statements of Financial Position, the acquiree's indentifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.