Investments in associatesInvestments in associate undertakings are recognised at cost.TaxationTaxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that itrelates 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 bythe balance sheet date.Deferred taxDeferred 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 theyare recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantivelyenacted 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 recoveredagainst 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 purchasecontracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated usefullives or the lease term, whichever is the shorter.The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the futurepayments is treated as a liability.Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.Pension costs and other post-retirement benefitsThe company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are chargedto profit or loss in the period to which they relate.