Grand Hotel (St. Annes) Limited - Limited company accounts 20.1

REGISTERED NUMBER: 02829190 (England and Wales)

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements for the Year Ended 30 September 2021

for

Grand Hotel (St. Annes) Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Consolidated Income Statement

7

Consolidated Other 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

Notes to the Consolidated Financial Statements

15

DIRECTORS:

Mr R J Webb

Mrs A J Webb

Mr S Webb

Mr T Webb

SECRETARY:

Mrs A J Webb

REGISTERED OFFICE:

South Promenade

Lytham St Annes

Lancashire

FY8 1NB

REGISTERED NUMBER:

02829190 (England and Wales)

AUDITORS:

Ashworth Treasure Limited

Statutory Auditors

17-19 Park Street

Lytham

Lancashire

FY8 5LU

The directors present their strategic report of the company and the group for the year ended 30 September 2021.

REVIEW OF BUSINESS

The results for the year and financial position are shown in the annexed financial statements.

The group trades as exclusive hotels, restaurants and SPA in both St Annes and Grasmere.

The hotels, like all businesses, have suffered the effects of the Covid pandemic. They have shifted strategy by scaling down reinvestment, whilst maintaining standards of quality and service.

The group turnover for the year was £3,155,976 (2020 - £3,073,582). Profits before tax were £1,095,337 (2020 - £362,926). Even though the group had forced closures through the Covid Pandemic its overall turnover and profit has increased. The group has taken advantage of the government grants available to them.

The group continues to invest in fixed assets and refurbishment. The directors are still of the opinion that the properties should be well maintained and regularly updated. The main drive on expenditure will be to maximise the hotel guest experience. The group maintains a very strong balance sheet position at the end of the year.

The directors are happy with the group's current position and are confident that the quality reputation of their hotels will produce good results in the forthcoming years.

PRINCIPAL RISKS AND UNCERTAINTIES

Sales income streams are constantly shifting. With the onset of Covid and subsequent cancellations, the hotels have reduced the deposits required to improve any future exposure risk. Current marketing strategy includes adaptation to a more uncertain future along with changes in the customer base and their future requirements

Future plans are to encourage growth especially in the private sector providing a much stronger focus on bedroom and guest service standards together with a high quality dining experience.

ON BEHALF OF THE BOARD:

Mrs A J Webb - Secretary

4 March 2022

The directors present their report with the financial statements of the company and the group for the year ended 30 September 2021.

DIVIDENDS

Total dividends paid in the year amounted to £184,000.

FUTURE DEVELOPMENTS

The results for 2021 were extremely positive in light of the Covid pandemic. The Management team are expecting cost increases in many areas due to the current economic climate and are planning with this in mind.

The directors are holding back on any excessive expenditure and driving to increase sales to manage this risk.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 October 2020 to the date of this report.

Mr R J Webb

Mrs A J Webb

Mr S Webb

Mr T Webb

DISCLOSURE IN THE STRATEGIC REPORT

The strategic report on the preceding page provides information regarding the performance, developments, and risks

and uncertainties of the group.

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, Ashworth Treasure Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mrs A J Webb - Secretary

4 March 2022

Opinion

We have audited the financial statements of Grand Hotel (St. Annes) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2021 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 30 September 2021 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 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 and regulations;

- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the business 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 legislation such as licensing laws, waste disposal regulations, Companies Act, taxation legislation, environmental and health and safety legislation etc.

- 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 maintained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to 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;and

- 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 journals to identify unusual transactions;

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

- 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;

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

- reviewing correspondence with HMRC etc

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

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.

Victoria Reynolds (Senior Statutory Auditor)

for and on behalf of Ashworth Treasure Limited

Statutory Auditors

17-19 Park Street

Lytham

Lancashire

FY8 5LU

4 March 2022

TURNOVER

3,155,976

3,073,582

Cost of sales

380,992

482,325

GROSS PROFIT

2,774,984

2,591,257

Administrative expenses

2,190,512

2,365,001

584,472

226,256

Other operating income

620,400

277,854

OPERATING PROFIT

5

1,204,872

504,110

Interest receivable and similar income

6,195

6,155

1,211,067

510,265

Interest payable and similar expenses

6

115,730

147,339

PROFIT BEFORE TAXATION

1,095,337

362,926

Tax on profit

7

208,127

72,730

PROFIT FOR THE FINANCIAL YEAR

887,210

290,196

Profit attributable to:

Owners of the parent

887,210

290,196

PROFIT FOR THE YEAR

887,210

290,196

OTHER COMPREHENSIVE INCOME

Property revaluation

-

(435,543

)

Deferred tax on property revaluation

-

82,753

Income tax relating to components of other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

-

(352,790

)

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

887,210

(62,594

)

Total comprehensive income attributable to:

Owners of the parent

887,210

(62,594

)

FIXED ASSETS

Intangible assets

10

-

-

Tangible assets

11

10,720,158

10,960,395

Investments

12

-

-

10,720,158

10,960,395

CURRENT ASSETS

Stocks

13

54,703

63,094

Debtors

14

320,934

198,570

Cash at bank and in hand

1,033,810

248,417

1,409,447

510,081

CREDITORS

Amounts falling due within one year

15

1,268,716

958,726

NET CURRENT ASSETS/(LIABILITIES)

140,731

(448,645

)

TOTAL ASSETS LESS CURRENT LIABILITIES

10,860,889

10,511,750

CREDITORS

Amounts falling due after more than one year

16

(5,212,215

)

(5,538,465

)

PROVISIONS FOR LIABILITIES

20

(685,746

)

(713,567

)

NET ASSETS

4,962,928

4,259,718

CAPITAL AND RESERVES

Called up share capital

21

1,000

1,000

Revaluation reserve

22

2,344,606

2,344,606

Retained earnings

22

2,617,322

1,914,112

SHAREHOLDERS' FUNDS

4,962,928

4,259,718

The financial statements were approved by the Board of Directors and authorised for issue on 4 March 2022 and were signed on its behalf by:

Mr R J Webb - Director

FIXED ASSETS

Intangible assets

10

-

-

Tangible assets

11

7,211,793

7,338,412

Investments

12

1,000

1,000

7,212,793

7,339,412

CURRENT ASSETS

Stocks

13

35,770

42,608

Debtors

14

1,290,884

1,757,310

Cash at bank and in hand

1,012,601

114,684

2,339,255

1,914,602

CREDITORS

Amounts falling due within one year

15

845,988

660,367

NET CURRENT ASSETS

1,493,267

1,254,235

TOTAL ASSETS LESS CURRENT LIABILITIES

8,706,060

8,593,647

CREDITORS

Amounts falling due after more than one year

16

(3,393,509

)

(3,640,991

)

PROVISIONS FOR LIABILITIES

20

(493,872

)

(508,196

)

NET ASSETS

4,818,679

4,444,460

CAPITAL AND RESERVES

Called up share capital

21

1,000

1,000

Revaluation reserve

22

1,748,514

1,748,514

Retained earnings

22

3,069,165

2,694,946

SHAREHOLDERS' FUNDS

4,818,679

4,444,460

Company's profit for the financial year

558,219

197,684

The financial statements were approved by the Board of Directors and authorised for issue on 4 March 2022 and were signed on its behalf by:

Mr R J Webb - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 October 2019

1,000

1,873,916

2,697,396

4,572,312

Changes in equity

Dividends

-

(250,000

)

-

(250,000

)

Total comprehensive income

-

290,196

(352,790

)

(62,594

)

Balance at 30 September 2020

1,000

1,914,112

2,344,606

4,259,718

Changes in equity

Dividends

-

(184,000

)

-

(184,000

)

Total comprehensive income

-

887,210

-

887,210

Balance at 30 September 2021

1,000

2,617,322

2,344,606

4,962,928

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 October 2019

1,000

2,747,262

2,526,222

5,274,484

Changes in equity

Dividends

-

(250,000

)

-

(250,000

)

Total comprehensive income

-

197,684

(777,708

)

(580,024

)

Balance at 30 September 2020

1,000

2,694,946

1,748,514

4,444,460

Changes in equity

Dividends

-

(184,000

)

-

(184,000

)

Total comprehensive income

-

558,219

-

558,219

Balance at 30 September 2021

1,000

3,069,165

1,748,514

4,818,679

Cash flows from operating activities

Cash generated from operations

1

1,501,513

739,651

Interest paid

(114,154

)

(147,339

)

Finance costs paid

(1,576

)

-

Tax paid

(142,813

)

(10,000

)

Net cash from operating activities

1,242,970

582,312

Cash flows from investing activities

Purchase of tangible fixed assets

(47,668

)

(18,698

)

Interest received

6,195

6,155

Net cash from investing activities

(41,473

)

(12,543

)

Cash flows from financing activities

New loans in year

335,012

-

Loan repayments in year

(510,853

)

(167,506

)

Amount introduced by directors

184,188

268,041

Amount withdrawn by directors

(240,451

)

(202,739

)

Equity dividends paid

(184,000

)

(250,000

)

Net cash from financing activities

(416,104

)

(352,204

)

Increase in cash and cash equivalents

785,393

217,565

Cash and cash equivalents at beginning of year

2

248,417

30,852

Cash and cash equivalents at end of year

2

1,033,810

248,417

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

2021

2020

£

£

Profit before taxation

1,095,337

362,926

Depreciation charges

287,905

338,385

Finance costs

115,730

147,339

Finance income

(6,195

)

(6,155

)

1,492,777

842,495

Decrease/(increase) in stocks

8,391

(3,593

)

(Increase)/decrease in trade and other debtors

(65,597

)

113,475

Increase/(decrease) in trade and other creditors

65,942

(212,726

)

Cash generated from operations

1,501,513

739,651

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 30 September 2021

30.9.21

1.10.20

£

£

Cash and cash equivalents

1,033,810

248,417

Year ended 30 September 2020

30.9.20

1.10.19

£

£

Cash and cash equivalents

248,417

30,852

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.10.20

Cash flow

At 30.9.21

£

£

£

Net cash

Cash at bank and in hand

248,417

785,393

1,033,810

248,417

785,393

1,033,810

Debt

Debts falling due within 1 year

(167,502

)

(150,409

)

(317,911

)

Debts falling due after 1 year

(5,538,465

)

326,250

(5,212,215

)

(5,705,967

)

175,841

(5,530,126

)

Total

(5,457,550

)

961,234

(4,496,316

)

1.	STATUTORY INFORMATION

Grand Hotel (St. Annes) 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.	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.

Basis of consolidation

The group accounts consolidate the accounts of Grand Hotel (St. Annes) Limited and its subsidiary undertaking The Grand @ Grasmere Limited.

Unless otherwise stated, the acquisition method of accounting has been adopted. Under this method, the results of subsidiary undertakings acquired or disposed of in the year are included in the consolidated profit and loss account from the date on which control passed.

Significant judgements and estimates

In the application of the group's accounting policies, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily available from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

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

The key judgements and sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below:

Estimated useful lives and residual values of fixed assets

Depreciation of tangible fixed assets has been based on estimated useful lives and residual values deemed appropriate by the directors. Estimated useful lives are reviewed annually and revised as appropriate. Revisions take into account estimated useful lives used by other companies operating in the sector and actual asset lives and residual values, as evidenced by disposals during current and prior accounting periods.

Impairment of non-financial assets

Non-financial assets include goodwill, investments and tangible fixed assets. The group assesses at each reporting date whether there is an indication that the carrying amount of an asset may not be recoverable. If there is such an indication then the group estimates the recoverable amount of the asset using the information available at that date. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. If the recoverable amount is less than the carrying amount, the carrying amount of an asset is impaired and it is reduced to its recoverable amount through an impairment in the statement of comprehensive income.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2015, was amortised evenly over its estimated useful life of five years. Goodwill has been fully amortised.

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 the cost less estimated residual value of each asset over its estimated useful life.

Fixtures and fittings

-

20% on reducing balance and 10% on cost

Freehold land and buildings in the parent company are initially stated at cost and subsequently at valuation. Fixtures and fittings are stated at cost less depreciation. Cost represents purchase price together with any incidental costs of acquisition.

Assets that have been revalued are subject to subsequent revaluations performed with sufficient regularity such that the carrying amount does not differ materially from the fair value at the balance sheet date. The valuations are performed by a qualified external valuer.

Stocks

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

Financial instruments

The following assets and liabilities are classified as financial instruments - investments in subsidiaries, trade debtors, trade creditors, bank loans, other loans and inter-group balances.

Investments in subsidiary undertakings are measured at cost less impairment.

Bank loans are initially measured at the present value of future payments, discounted at a market rate of interest, and subsequently at amortised cost using the effective interest method.

Inter-group balances (being repayable on demand), trade debtors, trade creditors and other loans are measured at the undiscounted amount of cash or other consideration expected to be paid or received.

Financial assets are assessed at the end of each reporting period for objective evidence of impairment and if applicable recognised as appropriate.

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.

Pension costs and other post-retirement benefits

The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.