StocksStocks are valued at the lower of cost and net realisable value, after making due allowance forobsolete and slow moving items.TaxationTaxation 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 inequity.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 beenenacted or substantively enacted by the balance sheet date.Deferred taxDeferred tax is recognised in respect of all timing differences that have originated but not reversed atthe balance sheet date.Timing differences arise from the inclusion of income and expenses in tax assessments in periodsdifferent from those in which they are recognised in financial statements. Deferred tax is measuredusing tax rates and laws that have been enacted or substantively enacted by the year end and that areexpected 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 probablethat they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.Hire purchase and leasing commitmentsAssets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet.Those held under hire purchase contracts are depreciated over their estimated useful lives. Thoseheld under finance leases are depreciated over their estimated useful lives or the lease term,whichever is the shorter.The interest element of these obligations is charged to profit or loss over the relevant period. Thecapital element of the future payments is treated as a liability.Pension costs and other post-retirement benefitsThe company operates a defined contribution pension scheme. Contributions payable to thecompany's pension scheme are charged to profit or loss in the period to which they relate.