GOING CONCERNThe Directors have addressed the COVID-19 risk.The economic impact on the business due to the Coronavirus Pandemic is subject to an unprecedented level of uncertainty with the full range of possible effects unknown. Management accounts have been reviewed for the period following the balance sheet date, paying attention to the prospective cash position in a variety of scenarios.Whilst there is evidence to suggest the negative balance sheet position will continue, the use of the going concern isconsidered appropriate as the largest shareholder continues to provide financial support to the Company and has agreed to continue to do so for the foreseeable future, enabling the Company to meet all its third-party obligations as they fall due. This is considered appropriate as taking into account the intentions and means of the ultimate controlling party.As such, the financial statements have been prepared on a going concern basis which forecasts that the Company willbe able to meet its financial obligations for a period of at least 12 months from the date of this financial report.INVESTMENTS IN SUBSIDIARIESThe investment in subsidiaries is initially measured at cost and subsequently measured at cost less any accumulatedimpairment losses. The investment is assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.FINANCIAL INSTRUMENTSThe company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'OtherFinancial Instruments Issues' of FRS 102 to all of its financial instruments.Financial instruments are recognised in the company's balance sheet when the company becomes party to thecontractual provisions 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 ASSETSBasic financial assets, which include debtors and cash and bank balances, are initially measured at transaction priceincluding transaction costs and are subsequently carried at amortised cost using the effective interest method unlessthe arrangement constitutes a financing transaction, where the transaction is measured at the present value of thefuture receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.CLASSIFICATION OF FINANCIAL LIABILITIESFinancial liabilities and equity instruments are classified according to the substance of the contractual arrangementsentered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.BASIC FINANCIAL LIABILITIESBasic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference sharesthat are classified as debt, 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 cost, 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.TAXATIONTaxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss, 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 TAXDeferred tax is recognised in respect of all timing differences that have originated but not reversed at the balancesheet 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 willbe recovered against the reversal of deferred tax liabilities or other future taxable profits.HIRE PURCHASE AND LEASING COMMITMENTSRentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.CASH AT BANK AND IN HANDCash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, othershort-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.EMPLOYEE BENEFITSThe costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.Termination benefits are recognised immediately as an expense when the company is demonstrably committed toterminate the employment of an employee or to provide termination benefits.LEASERentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.EQUITY INSTRUMENTSEquity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividendspayable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.DERIVATIVESDerivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequentlyremeasured to fair value at each reporting end date. The resulting gain or loss is recognized in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fairvalue is recognised as a financial liability.