REGISTERED NUMBER: 02473100 (England and Wales)

Group Strategic Report, Report of the Directors and

Audited Consolidated Financial Statements

for the Year Ended 31 March 2026

for

M C Stennett & Sons (Holdings) Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

to

7

Consolidated Statement of Comprehensive Income

8

Consolidated Balance Sheet

9

Company Balance Sheet

10

Consolidated Statement of Changes in Equity

11

Company Statement of Changes in Equity

12

Consolidated Cash Flow Statement

13

Notes to the Consolidated Cash Flow Statement

14

to

15

Notes to the Consolidated Financial Statements

16

to

30

DIRECTORS:

Mr M C Stennett

Mrs G M Stennett

Mr C Stennett

Mr F Stennett

SECRETARY:

Mrs G M Stennett

REGISTERED OFFICE:

The Coach House

Park Farm

Fornham St Genevieve

Bury St Edmunds

Suffolk

IP28 6TS

REGISTERED NUMBER:

02473100 (England and Wales)

AUDITORS:

Knights Lowe Limited

Eldo House

Kempson Way

Suffolk Business Park

Bury St Edmunds

Suffolk

IP32 7AR

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

PRINCIPAL ACTIVITIES AND REVIEW OF BUSINESS

The principal activities of the group during the year were those of road haulage, storage and allied support services. The group is also involved in farming and property letting through its partnership interest (joint venture). In addition, the group has a 30.6% interest in a related company, J R Stennett (Holdings) Ltd which is principally involved in agricultural plant hire and arable farming.

The directors are satisfied with both the trading performance of the company during the year to 31st March 2026 and the financial position as at that date given the trading conditions.

The group's gross profit shows a gross profit margin of 12.3% (2025 : 13.4%).

Elsewhere within the group, gross profit / (loss) on farming activities has decreased with -32.3% being achieved compared to a margin of -8.7% in 2025. Net income from lettings has increased by 6.9% in the year (2025: increase of 0.5%).

The group has remained profitable and it has achieved a post-tax return on capital employed of 3.1% (: 4.8%)which the directors consider is satisfactory in difficult market conditions.

PRINCIPAL RISKS AND UNCERTAINTIES

The group's financial and commercial risks are kept under regular review by the directors and senior management. Policies are in place to ensure such risks are minimised primarily through safe working practices, regular risk assessments and the maintenance and regular review of commercial insurance cover.

FUTURE DEVELOPMENTS

The directors aim to continue the trend to growth, in particular growing the group's capital value and where appropriate, extending and rationalising investments consistent with overall business objectives.

ON BEHALF OF THE BOARD:

Mr F Stennett - Director

23 September 2026

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

DIVIDENDS

No dividends are proposed in respect of the year to 31 March 2026 and none have been paid in the year.

DIRECTORS

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

Mr M C Stennett

Mrs G M Stennett

Mr C Stennett

Mr F Stennett

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

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

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Knights Lowe Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr F Stennett - Director

23 September 2026

Opinion

We have audited the financial statements of M C Stennett & Sons (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2026 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 March 2026 and of the group's profit for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the company through discussions with the director and other management, and from our commercial knowledge and experience of the companies operating sector;

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

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

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

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

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

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias;

- investigated the rationale behind significant or unusual transactions;

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;

- reading the minutes of meetings of those charged with governance;

- enquiring of management as to actual and potential litigation and claims;

- reviewing correspondence with HMRC, relevant regulators including the Environment Agency and the company's legal advisors;

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or 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.

James Knights BSc ACA (Senior Statutory Auditor)

for and on behalf of Knights Lowe Limited

Eldo House

Kempson Way

Suffolk Business Park

Bury St Edmunds

Suffolk

IP32 7AR

23 September 2026

TURNOVER

6,587,119

6,756,274

Cost of sales

5,773,688

5,850,878

GROSS PROFIT

813,431

905,396

Administrative expenses

668,583

566,412

144,848

338,984

Other operating income

185,837

251,023

OPERATING PROFIT

4

330,685

590,007

Income from interest in associated undertakings

5

46,297

(26,454

)

Income from other participating interests

6

(26,277

)

12,973

Interest receivable and similar income

32

932

20,052

(12,549

)

350,737

577,458

Interest payable and similar expenses

7

14,276

21,872

PROFIT BEFORE TAXATION

336,461

555,586

Tax on profit

8

62,585

146,190

PROFIT FOR THE FINANCIAL YEAR

273,876

409,396

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

273,876

409,396

Profit attributable to:

Owners of the parent

273,876

409,396

Total comprehensive income attributable to:

Owners of the parent

273,876

409,396

FIXED ASSETS

Tangible assets

10

2,492,311

2,622,853

Investments

11

Interest in joint venture

Share of gross assets

5,592,991

4,931,683

5,592,991

4,931,683

Interest in associate

524,396

478,099

Investment property

12

735,000

735,000

9,344,698

8,767,635

CURRENT ASSETS

Stocks

13

31,831

82,589

Debtors

14

1,401,852

1,393,878

Cash at bank and in hand

316,495

576,374

1,750,178

2,052,841

CREDITORS

Amounts falling due within one year

15

1,480,268

1,437,049

NET CURRENT ASSETS

269,910

615,792

TOTAL ASSETS LESS CURRENT LIABILITIES

9,614,608

9,383,427

PROVISIONS FOR LIABILITIES

18

734,141

776,836

NET ASSETS

8,880,467

8,606,591

CAPITAL AND RESERVES

Called up share capital

19

1,000

1,000

Share premium

20

208,072

208,072

Fair value reserve

20

431,640

431,640

Retained earnings

20

8,239,755

7,965,879

SHAREHOLDERS' FUNDS

8,880,467

8,606,591

The financial statements were approved by the Board of Directors and authorised for issue on 23 September 2026 and were signed on its behalf by:

Mr F Stennett - Director

FIXED ASSETS

Tangible assets

10

-

-

Investments

11

6,012,648

5,351,340

Investment property

12

735,000

735,000

6,747,648

6,086,340

CURRENT ASSETS

Debtors

14

200,000

368,803

Cash at bank

59,060

117,095

259,060

485,898

CREDITORS

Amounts falling due within one year

15

1,999,796

1,681,512

NET CURRENT LIABILITIES

(1,740,736

)

(1,195,614

)

TOTAL ASSETS LESS CURRENT LIABILITIES

5,006,912

4,890,726

PROVISIONS FOR LIABILITIES

18

143,880

143,880

NET ASSETS

4,863,032

4,746,846

CAPITAL AND RESERVES

Called up share capital

19

1,000

1,000

Merger reserve

20

258,482

258,482

Fair value reserve

20

431,640

431,640

Retained earnings

20

4,171,910

4,055,724

SHAREHOLDERS' FUNDS

4,863,032

4,746,846

Company's profit for the financial year

116,186

177,523

The financial statements were approved by the Board of Directors and authorised for issue on 23 September 2026 and were signed on its behalf by:

Mr F Stennett - Director

Called up

Fair

share

Retained

Share

value

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1 April 2024

1,000

7,454,979

208,072

533,144

8,197,195

Changes in equity

Total comprehensive income

-

510,900

-

(101,504

)

409,396

Balance at 31 March 2025

1,000

7,965,879

208,072

431,640

8,606,591

Changes in equity

Total comprehensive income

-

273,876

-

-

273,876

Balance at 31 March 2026

1,000

8,239,755

208,072

431,640

8,880,467

Called up

Fair

share

Retained

Merger

value

Total

capital

earnings

reserve

reserve

equity

£

£

£

£

£

Balance at 1 April 2024

1,000

3,776,697

258,482

533,144

4,569,323

Changes in equity

Total comprehensive income

-

279,027

-

(101,504

)

177,523

Balance at 31 March 2025

1,000

4,055,724

258,482

431,640

4,746,846

Changes in equity

Total comprehensive income

-

116,186

-

-

116,186

Balance at 31 March 2026

1,000

4,171,910

258,482

431,640

4,863,032

Cash flows from operating activities

Cash generated from operations

1

1,136,434

1,076,473

Interest paid

(2,637

)

(2,089

)

Interest element of hire purchase payments paid

(11,639

)

(19,783

)

Tax paid

(99,698

)

(17,855

)

Net cash from operating activities

1,022,460

1,036,746

Cash flows from investing activities

Purchase of tangible fixed assets

(484,922

)

(828,937

)

Purchase of fixed asset investments

(707,605

)

(195,018

)

Sale of tangible fixed assets

6,648

22,500

Sale of investment property

-

323,420

Interest received

32

932

Dividends received

20,020

(13,481

)

Net cash from investing activities

(1,165,827

)

(690,584

)

Cash flows from financing activities

Capital repayments in year

(116,512

)

(248,485

)

Net cash from financing activities

(116,512

)

(248,485

)

(Decrease)/increase in cash and cash equivalents

(259,879

)

97,677

Cash and cash equivalents at beginning of year

2

576,374

478,697

Cash and cash equivalents at end of year

2

316,495

576,374

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

2026

2025

£

£

Profit before taxation

336,461

555,586

Depreciation charges

609,813

615,251

Profit on disposal of fixed assets

(996

)

(66,296

)

Finance costs

14,276

21,872

Finance income

(20,052

)

12,549

939,502

1,138,962

Decrease in stocks

50,758

42,620

Increase in trade and other debtors

(7,974

)

(123,808

)

Increase in trade and other creditors

154,148

18,699

Cash generated from operations

1,136,434

1,076,473

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 March 2026

31.3.26

1.4.25

£

£

Cash and cash equivalents

316,495

576,374

Year ended 31 March 2025

31.3.25

1.4.24

£

£

Cash and cash equivalents

576,374

478,697

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.25

Cash flow

At 31.3.26

£

£

£

Net cash

Cash at bank and in hand

576,374

(259,879

)

316,495

576,374

(259,879

)

316,495

Debt

Finance leases

(129,598

)

116,512

(13,086

)

(129,598

)

116,512

(13,086

)

Total

446,776

(143,367

)

303,409

4.	MATERIAL TRANSACTIONS NOT RESULTING IN A MOVEMENT OF CASH

The Group's share of loss from Genevieve Farms of £26,277 (2025: £12,973 profit) is accounted for by way of an addition to the Genevieve Farms fixed asset investment account.

1.	STATUTORY INFORMATION

M C Stennett & Sons (Holdings) Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

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

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.

Basis of consolidation

The financial statements contain information about M C Stennett & Sons (Holdings) Ltd as a group and are prepared in accordance with FRS 102 and drawn up to 31 March each year. The results of subsidiaries acquired or sold are consolidated from or to the date control passes to or from the group.

The groups interest in its associate and joint venture is accounted for under the equity accounting method in accordance with FRS 102 section 14 (Associates) and section 15 (Joint Ventures).

Significant judgements and estimates

In the application of the group's accounting policies, which are described below, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimated and underlying assumptions are reviewed on an ongoing basis. Revision to accounting estimates are recognised in the period in which the estimate is revised if revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Critical judgements and key sources of estimation uncertainty in applying the group's accounting policies

The following are critical judgements including those involving estimations, that the directors have made in the process of applying the group's accounting policies and that have the most significant effect on the amounts recognised in the financial statements.

Depreciation of tangible fixed assets

Tangible fixed assets are recognised at cost and depreciated on the basis appropriate to charge to the profit and loss the economic consumption of those assets during the accounting period. The charge is calculated as described below and is based on the directors knowledge of the reduction in the residual value of tractor units and trailers on average over the investment cycle of each class of asset. The rates of depreciation are kept under review such that assets are written down to residual value at the end of the economic lives of the assets.

Revaluation of investment properties

The group holds an investment property at fair value, with changes in fair value being recognised in the profit ad loss account. The Directors have determined fair value based on the expected open market value for the location and nature of the property comparable to other known sales or potential sales in the region.

Turnover and revenue recognition

Turnover represents the total value, excluding value added tax, of services provided to customers which fall within the company's ordinary activities.

Haulage income is recognised upon completion of the underlying work. Work in progress at the accounting date is insignificant and no allowance is made.

Storage income is recognised in accordance with the terms of the underlying contracts. Where contracts straddle the accounting date income is neither accrued nor deferred unless the amounts are material in relation to total storage income. Where amounts are material, income is accrued or deferred so as to recognise revenue on a constant basis over the contract period.

Tangible fixed assets

Tangible assets with a useful economic life of over two years held for the company's trade are capitalised at cost and depreciated in accordance with the policy below. An annual impairment review is completed for all material tangible fixed assets and provision is made where economic value is deemed to be permanently less than depreciated cost.

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

Leasehold improvements

- 10 - 25% on cost

Plant and machinery

- 10 - 33% on cost

Motor vehicles

- 20 - 25% on reducing balance

Depreciation is not provided on specific assets where residual value is greater than depreciated cost.

Investment property and other fixed asset investments

In accordance with section 16 of FRS 102, investment property held to earn rental income and/or capital appreciation is included in the balance sheet at fair value where such value can be measured reliably without undue cost or effort on an ongoing basis. Fair value adjustments are taken to the profit and loss account. In that no depreciation is charged, this is a departure from the requirements of the Companies Act 2006. In the directors opinion to charge depreciation (a measure of consumption) would not produce a true and fair view given that the property is held for investment and, it is considered the amount of the charge is not material in the context of the group financial statements.

The group's other participating interest, the partnership interest in Genevieve Farms, is stated at cost plus the accumulated share of profits and losses since acquisition. Amounts transferred to the partnership from the company are treated as equity in nature. This treatment is in accordance with the requirements of Financial Reporting Standard 102 (equity method option). The profit share and tax charge are included in the Groups profit and loss account so as to produce a revenue statement showing a true and fair view.

Stocks

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

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred taxation

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet and depreciated over their estimated useful lives. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce constant periodic rates of charge on the net obligations outstanding in each period.

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

Pension costs and other post-retirement benefits

The group makes contributions to a defined contribution scheme on behalf of its employees. The assets of the scheme are held independently from those of the group. The pension costs charged in the financial statements represent the contributions payable by the group during the year.