REGISTERED NUMBER: 09469129 (England and Wales)

HELIUM MIRACLE 157 LIMITED

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

5

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

Consolidated Cash Flow Statement

15

Notes to the Consolidated Cash Flow Statement

16

Notes to the Consolidated Financial Statements

17

DIRECTORS:

R M Jones

Mrs S J Jones

REGISTERED OFFICE:

232 Hall Street

Warrington

Cheshire

WA1 2BW

REGISTERED NUMBER:

09469129 (England and Wales)

AUDITORS:

Murray Smith LLP

Chartered Accountants

Statutory Auditors

Darland House

44 Winnington Hill

Northwich

Cheshire

CW8 1AU

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

Principle Activities and Future Developments

Helium Miracle 157 Ltd throughout 2025 and in line with the Business strategic plan, continued with the two main strands to the Business.

-

Evolution Childcare Group - Our Corporate group of Nurseries, dedicated to providing outstanding Childcare for Children aged 6 weeks to 5 years

-

Evolution childcare Franchise - Our hand selected group of franchisees, dedicated to mirroring our ethos and delivering outstanding outcomes for children and their families.

Evolution Childcare currently operates from 5 Corporate Branches, 2 UK Franchise Branches and 1 International branch in China.

Our primary focus is on the children in everything we provide and do, and this has been designed through putting the eyes of the child at the heart of our facilities.

Each child's sense of curiosity is ignited from the onset with our beautiful, brightly coloured settings, the fully age and stage appropriate resources and the equipment all suitably sourced at their own height. This enables them to discover, learn and stimulate their individual interests as they develop their sense of independence and self-learning whilst continually developing in a safe, secure, and loving environment. The success of this ethos has been seen in the accolades and awards the group have won such as 'training and development of the Year' '5 Most inspirational in the Sector', Ofsted Outstanding and Winner of the Nursery Group Recognition Award. In 2025 we added Winners of the Lux Life Private Education Awards and daynurseries.co.uk top 20 Nursery Group awards voted by Parents which makes this extremely rewarding to our team.

Evolution Childcare have invested into our own bespoke e-learning programme to ensure the Evolution team continue to embed our policies, procedures, and practises into everything they do. This online e-learning further advances Evolutions already robust safeguarding and child protection processes not just at the point of recruitment and the first 3 months probationary period, but for the entire period of employment and advancement in personal development within the Company. Having our own platform has enabled specific training to be quickly delivered to our team to Mirror the EYFS updates in the Sector such as Behaviour Management, Special Educational Needs and Safeguarding.

The Economic backdrop has remained challenging this year with high levels of wage inflation, an increasing cost of living and ongoing challenges in the employment market such of lack of available staff members looking for jobs. The Larger National Groups have made it increasingly difficult for us to employ as they have increased local wages significantly above the minimum wage to entice qualified staff to them which has had a knock on to the wages we would normally pay for these positions and those of our career ladder to ensure we are competitive. Staff are no longer looking for full time contracts but instead favouring part time roles and using the benefit system to enable them to work part time and have a better work/life balance. This is challenging as our ethos is on loyal and long serving team members for our children and families to bond with.

Staffing continues to be a tremendous challenge in 2025 and will continue to be a Sector problem in the coming years, with many practitioners leaving the sector due to the Cost of living crisis or simply entering the sector younger and more inexperienced. For this reason we have enhanced our staff packages with many personal touches to assist practitioners in remaining in the industry that they are passionate about and our training both inhouse and external that we provide has been enhanced.

In addition we continue to see a significant rise in Staff Mental Health challenges and have been robustly training our Management team to recognise Mental health signs and symptoms in infancy to support our team as early as possible and have budgeted counselling support for those in need.

Principle Risks and Uncertainties

The principal risks associated with the business are:

Macroeconomic Factors

In the Current environment with increases in Interest Rates, inflation, National Insurance rises and wage increases, there is a risk that fees do not rise in line with costs, resulting in pressure on margins. Evolution Childcare have full control over the price we set for the outstanding service we provide. We continually monitor competition to ensure that pricing remains in line with the market but also is adequate to allow the group to attract and retain full staffing teams and never relying on bank staff to fill staff voids. We do not have control over the funding rates set by the department of Education and that passed on by Local Authorities however we feel confident from Sector advisories that lessons have been learned and that the Sector can adequately support Government funded places now and the promised additional places offered in the future.

Reputational Risk and Ofsted

Evolution Childcare reputations are protected with robust systems, audits and procedures which are closely monitored and regularly reviewed. Evolution is incredibly proud of its reputation and continues to train, develop, empower, and reward all its staff with this in mind.

Evolution have been scored an inspiring 10 out of 10 score voted and commented on by Parents for Parents via the daynurseries.co.uk forums. An achievement the Directors are exceptionally proud of. Two of our settings The Abbey and Blackbrook for the third year running 2023, 2024 and now 2025 were voted in the top 20 Nurseries in the UK which is a credit to the dedicated and hard working teams.

Business Interruption

Evolution have contingency plans in place for most situations and our team are all trained to manage these. We have an in-house maintenance team who manage our premises daily and weekly with thorough building audits and assessments, however where a situation is unable to be planned for in advance for such as the closure of a building unfit for purpose, due to extreme external facts such as flooding, then we have extensive insurance policies in place to cover extreme circumstances and protect the financial viability of the businesses.

Staffing continues to remain our greatest challenge as the rise in living wage continues to put pressure on an already fragmented career option. We continue to suffer the consequences of the limited staff force entering the sector as a minimum wage option, the expectations on the role and the responsibility of job in hand.

Performance of the Business

The performance of the business is reviewed regularly. Monthly management accounts and KPI's are produced and compared month by month, in comparison to other years and to budgets. Cash flow forecasting and overhead spend analysis is also carried out on a monthly basis.

The Directors have invested into Survey Monkey QR code feedback to receive direct feedback from, Parent show rounds, Parent Starters, Staff Interviews, Staff Starters and Staff Leavers. This feedback is crucial to enable us to engage our Staff and Parents opinions, likes, dislikes, comments and compliments and feed this back to our Management team to make positive changes and ensure the culture of Evolution is embedded into our practice.

The Directors are confident that the regular analysis of the KPI's allows excellent and reliable management of the business.

Property Investment

As Evolution Childcare operates out of our Helium Miracle Property portfolio it is essential that our Properties are well maintained, continually refurbed and invested in. 2023 brought the start of our Building Schedule of Works focussing on Kalgarth Grange and Willows Nursery Schools. This programme of works will be ongoing and will continue into 2026.

Employment of Disabled Persons

Evolution gives full consideration to applications for employment by disabled persons where the candidate's ability and skills are appropriate for the job. Evolution Childcare employs individuals with special requirements which are catered and supported for.

Employee Involvement

The experience of the long serving team members continues to be an asset to the Company. Evolution encourages and is committed to the personal development of all our employees and alongside our own internal staff training e-learning portal, we commit to providing opportunities for continued training and career progression within the business. We continually reward our long serving staff with Annual rewards on their anniversary of 5 years and above.

The Directors would like to thank each and every one of our team for their continued support and loyalty to the business, without which it would not be possible to achieve our goals and growth planned for the Business.

ON BEHALF OF THE BOARD:

Mrs S J Jones - Director

24 September 2026

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

DIVIDENDS

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

DIRECTORS

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

R M Jones

Mrs S J Jones

Other changes in directors holding office are as follows:

M Bou Tayeh ceased to be a director after 31 December 2025 but prior to the date of this 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;

-	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, Murray Smith LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mrs S J Jones - Director

24 September 2026

Opinion

We have audited the financial statements of Helium Miracle 157 Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2025 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, 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 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 five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the 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:

The audit procedures designed to identify irregularities included:

-

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

-

Enquiry of company staff with responsibilities for tax and compliance matters to identify any instances of non-compliance with laws and regulations;

-

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.

There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, intentional misrepresentations or through collusion.

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.

Steven Williams (Senior Statutory Auditor)

for and on behalf of Murray Smith LLP

Chartered Accountants

Statutory Auditors

Darland House

44 Winnington Hill

Northwich

Cheshire

CW8 1AU

24 September 2026

TURNOVER

4

4,045,305

3,268,383

Cost of sales

2,344,788

2,039,914

GROSS PROFIT

1,700,517

1,228,469

Administrative expenses

1,162,814

1,413,536

537,703

(185,067

)

Other operating income

943

2,600

OPERATING PROFIT/(LOSS)

6

538,646

(182,467

)

Interest payable and similar expenses

7

76,403

105,437

PROFIT/(LOSS) BEFORE TAXATION

462,243

(287,904

)

Tax on profit/(loss)

8

134,988

33,494

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

327,255

(321,398

)

Profit/(loss) attributable to:

Owners of the parent

327,255

(321,398

)

PROFIT/(LOSS) FOR THE YEAR

327,255

(321,398

)

OTHER COMPREHENSIVE INCOME

Revaluation of freehold property

(32,000

)

1,170,000

Income tax relating to other comprehensive income

(45,246

)

(268,500

)

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

(77,246

)

901,500

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

250,009

580,102

Total comprehensive income attributable to:

Owners of the parent

250,009

580,102

FIXED ASSETS

Intangible assets

11

-

-

Tangible assets

12

5,510,975

5,668,238

Investments

13

-

-

Investment property

14

-

125,000

5,510,975

5,793,238

CURRENT ASSETS

Debtors

15

1,623,137

1,255,780

Cash at bank and in hand

407,439

183,218

2,030,576

1,438,998

CREDITORS

Amounts falling due within one year

16

654,261

472,165

NET CURRENT ASSETS

1,376,315

966,833

TOTAL ASSETS LESS CURRENT LIABILITIES

6,887,290

6,760,071

CREDITORS

Amounts falling due after more than one year

17

(1,073,123

)

(1,214,713

)

PROVISIONS FOR LIABILITIES

21

(634,243

)

(615,443

)

NET ASSETS

5,179,924

4,929,915

CAPITAL AND RESERVES

Called up share capital

22

24,407

24,407

Share premium

23

1,345,693

1,345,693

Revaluation reserve

23

3,017,962

3,095,208

Other reserves

23

73,835

73,835

Profit and loss account

23

718,027

390,772

SHAREHOLDERS' FUNDS

5,179,924

4,929,915

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:

Mrs S J Jones - Director

FIXED ASSETS

Intangible assets

11

-

-

Tangible assets

12

-

-

Investments

13

4,289,200

4,289,200

Investment property

14

-

-

4,289,200

4,289,200

CURRENT ASSETS

Debtors

15

1,988,809

1,706,475

Cash at bank

5

50,209

1,988,814

1,756,684

CREDITORS

Amounts falling due within one year

16

619,426

387,296

NET CURRENT ASSETS

1,369,388

1,369,388

TOTAL ASSETS LESS CURRENT LIABILITIES

5,658,588

5,658,588

CAPITAL AND RESERVES

Called up share capital

22

24,407

24,407

Share premium

23

1,345,693

1,345,693

Other reserves

23

4,269,000

4,269,000

Profit and loss account

23

19,488

19,488

SHAREHOLDERS' FUNDS

5,658,588

5,658,588

Company's profit for the financial year

-

63,000

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:

Mrs S J Jones - Director

Called up

Profit

share

and loss

Share

capital

account

premium

£

£

£

Balance at 1 January 2024

24,407

365,999

1,345,693

Changes in equity

Dividends

-

(63,000

)

-

Total comprehensive income

-

87,773

-

Balance at 31 December 2024

24,407

390,772

1,345,693

Changes in equity

Total comprehensive income

-

327,255

-

Balance at 31 December 2025

24,407

718,027

1,345,693

Revaluation

Other

Total

reserve

reserves

equity

£

£

£

Balance at 1 January 2024

2,193,708

483,006

4,412,813

Changes in equity

Dividends

-

-

(63,000

)

Total comprehensive income

901,500

(409,171

)

580,102

Balance at 31 December 2024

3,095,208

73,835

4,929,915

Changes in equity

Total comprehensive income

(77,246

)

-

250,009

Balance at 31 December 2025

3,017,962

73,835

5,179,924

Called up

Profit

share

and loss

Share

Other

Total

capital

account

premium

reserves

equity

£

£

£

£

£

Balance at 1 January 2024

24,407

19,488

1,345,693

3,950,000

5,339,588

Changes in equity

Dividends

-

(63,000

)

-

-

(63,000

)

Total comprehensive income

-

63,000

-

319,000

382,000

Balance at 31 December 2024

24,407

19,488

1,345,693

4,269,000

5,658,588

Changes in equity

Balance at 31 December 2025

24,407

19,488

1,345,693

4,269,000

5,658,588

Cash flows from operating activities

Cash generated from operations

1

375,609

252,544

Interest paid

(76,403

)

(105,437

)

Tax paid

(65,032

)

(30,076

)

Net cash from operating activities

234,174

117,031

Cash flows from investing activities

Purchase of tangible fixed assets

-

(189

)

Sale of investment property

125,000

166,667

Net cash from investing activities

125,000

166,478

Cash flows from financing activities

Loan repayments in year

(135,014

)

(126,448

)

Amount introduced by directors

50,640

44,100

Amount withdrawn by directors

(50,579

)

(44,821

)

Equity dividends paid

-

(63,000

)

Net cash from financing activities

(134,953

)

(190,169

)

Increase in cash and cash equivalents

224,221

93,340

Cash and cash equivalents at beginning of year

2

183,218

89,878

Cash and cash equivalents at end of year

2

407,439

183,218

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

2025

2024

£

£

Profit/(loss) before taxation

462,243

(287,904

)

Depreciation charges

125,263

516,423

Finance costs

76,403

105,437

663,909

333,956

Increase in trade and other debtors

(367,357

)

(134,282

)

Increase in trade and other creditors

79,057

52,870

Cash generated from operations

375,609

252,544

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

407,439

183,218

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

183,218

89,878

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

183,218

224,221

407,439

183,218

224,221

407,439

Debt

Debts falling due within 1 year

(126,449

)

(6,576

)

(133,025

)

Debts falling due after 1 year

(548,653

)

141,590

(407,063

)

(675,102

)

135,014

(540,088

)

Total

(491,884

)

359,235

(132,649

)

1.	STATUTORY INFORMATION

Helium Miracle 157 Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

2.	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 presentation currency is £ sterling.

Basis of consolidation

The Group financial statements consolidate the results of the Company and its subsidiary undertakings. The results of subsidiaries acquired are consolidated for the periods from which control passes to the Group. Acquisitions are accounted for under the acquisition method.

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.

Significant judgements and estimates

The Group continually reviews its approach to estimations and judgements within the financial statements with a view to mitigate material misstatements. Historical experience along with other factors are used to create prudent accounting policies. Combining these policies with informed forecasts of the Group's future, enables fair and consistent assumptions and estimates to be concluded.

Significant provisions are monitored by management and best estimates are maintained in accordance with any legal or contractual requirements.

Turnover

Turnover represents the value of services provided in the year, excluding value added tax.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2015, is being amortised evenly over its estimated useful life of ten years.

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.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property

-

2% on cost

Improvements to property

-

25% on cost and 4% on cost

Fixtures and fittings

-

25% on cost

Freehold property is included at fair value at the date of the most recent valuation, less any subsequent accumulated depreciation. Gains are recognised in other comprehensive income and accumulated in the revaluation reserve. Deferred taxation is provided on these gains at the rate expected to apply when the property is sold.

Government grants

Grants are included in the profit and loss account on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown on the balance sheet. Where income is received in advance of meeting any performance-related conditions there is not unconditional entitlement to the income and its recognition is deferred and included in creditors as deferred income until the performance-related conditions are met. Where entitlement occurs before income is received, the income is accrued.

Investment property

Investment property is included at fair value. Gains are recognised in the income statement. Deferred taxation is provided on these gains at the rate expected to apply when the property is sold.

Financial instruments

Basic financial assets and liabilities are initially recognised at the transaction price unless the arrangement constitutes a financing transaction where the transaction is measured at the present value of the future payments discounted at a market rate of interest.

Such assets and liabilities are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss.

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.

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.