REGISTERED NUMBER: 05716587 (England and Wales)

Strategic Report,

Report of the Directors and

Financial Statements

for the Year Ended 31 December 2025

for

Impact Productions (Milton Keynes)

Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Directors' Responsibilities Statement

6

Report of the Independent Auditors

7

Income Statement

10

Other Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Cash Flow Statement

14

Notes to the Cash Flow Statement

15

Notes to the Financial Statements

17

DIRECTORS:

J P Mason

K Saunders

REGISTERED OFFICE:

The Stable Yard

25-33 Vicarage Road

Stony Stratford

Milton Keynes

Buckinghamshire

MK11 1BN

REGISTERED NUMBER:

05716587 (England and Wales)

AUDITORS:

bk plus Audit Limited

Azzurri House

Walsall Business Park

Aldridge

Walsall

West Midlands

WS9 0RB

The directors present their strategic report for the year ended 31 December 2025.

REVIEW OF BUSINESS

Incorporated over 20 years ago, Impact Productions (Milton Keynes) Ltd trading as IPS has established a strong reputation within the UK events industry, providing trade hire equipment, technical production support, and staging and structural solutions. The company has continued to deliver high-quality services to a wide range of clients and remains a trusted partner in delivering successful live events.

During the year, IPS continued to strengthen its service offering, secured further long-term contracts, and maintained trusted relationships with clients across the UK.

The development of the company's new headquarters was completed during the year, providing purpose-built office and warehouse facilities and increased operational capacity. Alongside this, the company has continued to make internal improvements aimed at increasing the utilisation of its hire assets and improving overall operational efficiency.

The Directors are satisfied with the progress achieved during the year and remain focused on improving the efficiency and utilisation of the company's existing asset base, strengthening core operations and pursuing opportunities for continued growth.

PRINCIPAL RISKS AND UNCERTAINTIES

The company has a formal risk management framework in place to identify, monitor and mitigate risks which could affect its operations.

Economic risks

The demand for live events remains closely linked to consumer spending and sponsorship levels. A downturn in the economy could result in fewer or smaller events. IPS mitigates this through maintaining a diversified client base across different types of events, securing longer-term contracts where possible and monitoring market trends closely.

Operational risks

The delivery of live events requires the coordination of equipment, suppliers, contractors, venues and internal teams. Equipment failure, technical issues, transport delays or staffing shortages could disrupt delivery. These risks are managed through continued investment in reliable equipment, detailed event planning, strong supplier relationships and appropriate contingency procedures. During the year, the company has also continued to improve its internal processes, with a particular focus on improving hire asset utilisation and overall operational efficiency.

Financial risks

The company is exposed to fluctuations in demand, seasonal trading patterns and changes in the costs of equipment, maintenance and transportation. IPS manages these risks through regular monitoring of cash flow and financial performance, maintaining appropriate reserves, managing supplier arrangements and maintaining appropriate insurance cover.

Regulatory and legal risks

IPS manages regulatory and legal risks through established compliance procedures, regular staff training and the use of professional advisers where appropriate to ensure contracts, policies and processes remain up to date.

Human resources and management risks

The recruitment and retention of appropriately skilled employees remains important to the company's ability to maintain operational capacity and service levels. IPS continues to invest in staff training and development and seeks to maintain a positive working environment which supports employee retention and the recruitment of new talent.

ENVIRONMENT, SOCIAL AND GOVERNANCE (ESG)

IPS is committed to minimising its environmental impact. During the year, the company continued to invest in energy-efficient equipment and vehicles designed to reduce fuel consumption. The company’s new headquarters was completed during the year, providing modern, purpose-built facilities, with consideration given to energy efficiency and sustainability as part of its development.

Recycling and waste reduction initiatives have continued across the business, alongside a focus on the efficient use of resources and the use of sustainable materials and suppliers where appropriate. The Directors remain committed to improving environmental performance and will continue to consider opportunities to reduce energy consumption and waste.

The company recognises that its people are central to its continued success. IPS has continued to invest in training and development to build specialist skills across the workforce, alongside maintaining a strong focus on health and safety through regular reviews and training. The company continues to support employee wellbeing and maintains its commitment to fair recruitment, equal opportunity and an inclusive working environment.

IPS continues to maintain appropriate governance arrangements to support the ongoing development of the business. The Board regularly reviews compliance and risk management and ensures that appropriate procedures are maintained across health and safety, employment law and environmental regulation. Responsibilities within the management team are clearly defined, with changes in legislation and industry standards monitored to ensure continued compliance.

FUTURE DEVELOPMENTS

Looking forward, IPS expects to benefit from the additional capacity and improved facilities provided by its newly completed headquarters. A key focus for the business will be on improving the utilisation of its existing hire asset base, supported by continued improvements to internal processes and operational efficiencies.

The company will continue to invest in equipment where required to support its service offering and future growth, while increased marketing activity will seek to strengthen market share and improve awareness of the full range of services offered by IPS. Staff training and development will also remain a priority, supporting improved efficiency and service delivery.

With its expanded facilities, continued focus on asset utilisation and operational improvements, and an experienced team, IPS is well positioned to support continued growth and take advantage of future opportunities.

FINANCIAL PERFORMANCE

IPS delivered a strong financial performance in the year ended 31 December 2025, achieving turnover of £9.99mi and a strong gross profit margin of 64% despite inflation to subcontractor and logistics costs.

The company also achieved a strong operating profit margin of 20%.

Key financial indicators during the year were as follows:

2025

2024

£

£

Turnover

9.99mi

9.88mi

Profit before taxation

1.23mi

1.64mi

Shareholders' funds

15.7mi

14.49mi

ON BEHALF OF THE BOARD:

J P Mason - Director

24 September 2026

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of production services.

DIVIDENDS

The total distribution of dividends for the year ended 31 December 2025 is £200,572.

The profit before tax for the year is £1,232,815.

EVENTS SINCE THE END OF THE YEAR

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

DIRECTORS

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

J P Mason

K Saunders

FINANCIAL INSTRUMENTS

Credit risk

The company is exposed to credit risk primarily through trade receivables. Credit risk arises from the possibility that customers or other counterparties may fail to settle amounts due to the company, resulting in financial loss. The directors monitor credit risk by reviewing outstanding receivables regularly and setting internal credit limits for customers. A provision is made for expected credit losses where necessary, in line with the company's accounting policies.

Liquidity risk

The company is primarily exposed through its repayment obligations on the bank loan and hire purchases. Liquidity risk arises from the risk that the company may not have sufficient funds available to meet its financial obligations as they fall due. The company manages this risk by preparing detailed cash flow forecasts, monitoring repayment schedules, and maintaining available borrowing facilities. Directors review reports regularly to ensure liquidity is sufficient.

DONATIONS AND EXPENDITURE

Charitable donations in the year were £2,637.

DISCLOSURE IN THE STRATEGIC REPORT

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Sch. 7 to the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 (SI 2008/410) to be contained in the directors' report. It has done so in respect of future developments.

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.

AUDITORS

The auditors, bk plus Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

J P Mason - Director

24 September 2026

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). 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;

-	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.

Opinion

We have audited the financial statements of Impact Productions (Milton Keynes) Limited (the 'company') for the year ended 31 December 2025 which comprise the Income Statement, Other 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 December 2025 and of its 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 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.

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 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 Strategic Report, the Report of the Directors and the Directors' Responsibilities Statement, 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 Directors' Responsibilities Statement 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 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:

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.

From the preliminary stages of the audit, we ensure our understanding of the entity is up to date. This includes, but is not limited to, current knowledge of their activities, the business and control environments, and their compliance with the applicable legal and regulatory frameworks. This information supports our risk identification and the subsequent design of audit procedures to mitigate those risk; ensuring that the audit evidence obtained is sufficient and appropriate to support our opinion.

In response to the risks identified, specific to this entity, we designed procedures which included, but were not limited to:

" Enquiry of management and those charged with governance around actual and potential litigation and claims;

" Reviewing minutes of meetings of those charged with governance, where available;

" Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

" Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.

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.

Keval Dattani ACA (Senior Statutory Auditor)

for and on behalf of bk plus Audit Limited

Azzurri House

Walsall Business Park

Aldridge

Walsall

West Midlands

WS9 0RB

24 September 2026

TURNOVER

3

9,987,703

9,881,371

Cost of sales

3,628,184

3,354,185

GROSS PROFIT

6,359,519

6,527,186

Distribution costs

409,677

343,277

Administrative expenses

3,939,368

3,905,089

4,349,045

4,248,366

2,010,474

2,278,820

Other operating income

6,700

15,882

OPERATING PROFIT

5

2,017,174

2,294,702

Interest receivable and similar income

5,935

19,308

2,023,109

2,314,010

Interest payable and similar expenses

7

790,294

675,715

PROFIT BEFORE TAXATION

1,232,815

1,638,295

Tax on profit

8

500,900

406,079

PROFIT FOR THE FINANCIAL YEAR

731,915

1,232,216

PROFIT FOR THE YEAR

731,915

1,232,216

OTHER COMPREHENSIVE INCOME

PPE Revaluation

684,152

-

Income tax relating to other comprehensive income

(171,038

)

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

513,114

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,245,029

1,232,216

FIXED ASSETS

Tangible assets

10

30,585,053

24,593,440

CURRENT ASSETS

Debtors

11

1,721,575

1,990,402

Cash at bank

760,349

883,900

2,481,924

2,874,302

CREDITORS

Amounts falling due within one year

12

7,767,153

3,341,708

NET CURRENT LIABILITIES

(5,285,229

)

(467,406

)

TOTAL ASSETS LESS CURRENT LIABILITIES

25,299,824

24,126,034

CREDITORS

Amounts falling due after more than one year

13

(5,274,367

)

(5,816,973

)

PROVISIONS FOR LIABILITIES

17

(4,319,054

)

(3,818,153

)

NET ASSETS

15,706,403

14,490,908

CAPITAL AND RESERVES

Called up share capital

18

120

120

Share premium

20,008

20,008

Revaluation reserve

2,078,182

1,724,199

Retained earnings

13,608,093

12,746,581

SHAREHOLDERS' FUNDS

15,706,403

14,490,908

The financial statements were approved by the Board of Directors and authorised for issue on 24 September 2026 and were signed on its behalf by:

J P Mason - Director

Called up

share

Retained

Share

Revaluation

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1 January 2024

120

9,249,893

20,008

4,140,795

13,410,816

Changes in equity

Dividends

-

(152,124

)

-

-

(152,124

)

Total comprehensive income

-

3,648,812

-

(2,416,596

)

1,232,216

Balance at 31 December 2024

120

12,746,581

20,008

1,724,199

14,490,908

Changes in equity

Dividends

-

(200,572

)

-

-

(200,572

)

Total comprehensive income

-

1,062,084

-

353,983

1,416,067

Balance at 31 December 2025

120

13,608,093

20,008

2,078,182

15,706,403

Cash flows from operating activities

Cash generated from operations

1

4,429,878

4,948,367

Interest paid

(488,295

)

(495,463

)

Interest element of hire purchase payments paid

(225,448

)

(149,362

)

Finance costs paid

(76,551

)

(30,890

)

Net cash from operating activities

3,639,584

4,272,652

Cash flows from investing activities

Purchase of tangible fixed assets

(9,190,366

)

(5,159,342

)

Sale of tangible fixed assets

208,939

4,423,575

Interest received

5,935

19,308

Net cash from investing activities

(8,975,492

)

(716,459

)

Cash flows from financing activities

New loans in year

4,592,658

-

Loan repayments in year

(150,000

)

(2,798,838

)

Capital repayments in year

962,433

(976,924

)

Amount introduced by directors

35,950

582

Amount withdrawn by directors

(28,112

)

(6,471

)

Equity dividends paid

(200,572

)

(152,124

)

Net cash from financing activities

5,212,357

(3,933,775

)

Decrease in cash and cash equivalents

(123,551

)

(377,582

)

Cash and cash equivalents at beginning of year

2

883,900

1,261,482

Cash and cash equivalents at end of year

2

760,349

883,900

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

2025

2024

£

£

Profit before taxation

1,232,815

1,638,295

Depreciation charges

2,347,731

2,098,489

Loss on disposal of fixed assets

152,927

337,626

Finance costs

790,294

675,715

Finance income

(5,935

)

(19,308

)

4,517,832

4,730,817

Decrease/(increase) in trade and other debtors

300,201

(509,742

)

(Decrease)/increase in trade and other creditors

(388,155

)

727,292

Cash generated from operations

4,429,878

4,948,367

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

760,349

883,900

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

883,900

1,261,482

3.	ANALYSIS OF CHANGES IN NET DEBT

Other

non-cash

At 1.1.25

Cash flow

changes

At 31.12.25

£

£

£

£

Net cash

Cash at bank

883,900

(123,551

)

760,349

883,900

(123,551

)

760,349

Debt

Finance leases

(2,960,132

)

(962,433

)

-

(2,749,256

)

Debts falling due

within 1 year

(150,000

)

(4,742,658

)

-

(4,892,658

)

Debts falling due

after 1 year

(4,037,888

)

300,000

-

(3,737,888

)

(7,148,020

)

(5,405,091

)

-

(11,379,802

)

Total

(6,264,120

)

(5,528,642

)

-

(10,619,453

)

1.	STATUTORY INFORMATION

Impact Productions (Milton Keynes) 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 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.

The company has prepared the financial statements in accordance with the provisions applicable to companies subject to the medium-sized companies regime.

Turnover

Turnover represents amounts receivable for the provision of hire and production services in the ordinary course of business and is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Hire income is recognised over the period of the hire to which it relates. Production service income is recognised as the services are provided. Where amounts are invoiced in advance of the relevant hire or service period, these are recognised as deferred income and released to turnover over the period to which they relate. Where services have been provided but have not been invoiced at the reporting date, the income earned is recognised as accrued income.

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.

Freehold property

-

in accordance with the property

Plant & machinery

-

14% on reducing balance

Fixtures and fittings

-

3 years, 25% on cost and 25% on reducing balance

Motor vehicles

-

25% on cost and 25% on reducing balance

Computer equipment

-

3 years and 25% on reducing balance

Plant and machinery are stated at revalued amounts, being fair value at the date of revaluation less any subsequent accumulated depreciation and impairment losses.

Revaluations are performed internally by the company’s asset management team with sufficient regularity to ensure that the carrying amount does not differ materially from fair value at the reporting date.

Fair value is determined using a combination of valuation approaches, including market prices for similar assets where available and other recognised valuation techniques where appropriate, based on management’s judgement and supported by observable market data where possible.

Increases in carrying amount arising from revaluation are recognised in other comprehensive income and accumulated in the revaluation reserve.

Depreciation on revalued plant and machinery is charged to profit or loss on a straight-line basis over the assets’ estimated useful lives.

Each year, an amount equal to the additional depreciation arising from the revalued element of the asset is transferred from the revaluation reserve to retained earnings. On disposal, any remaining revaluation surplus relating to the asset is transferred directly to retained earnings.

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indications that those assets have suffered impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Financial instruments

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provision of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic Financial Assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised costs using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is a contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors and loans from related companies are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised costs, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Taxation

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

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.