Henbury Engineering Limited - Limited company accounts 23.1

REGISTERED NUMBER: 10633736 (England and Wales)

Group Strategic Report,

Report of the Directors and

Consolidated Financial Statements

for the Year Ended 30 September 2022

for

Henbury Engineering Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Profit and loss account

10

Consolidated Other Comprehensive Income

11

Consolidated Balance Sheet

12

Company Balance Sheet

13

Consolidated Statement of Changes in Equity

14

Company Statement of Changes in Equity

15

Consolidated Cash Flow Statement

16

Notes to the Consolidated Cash Flow Statement

17

Notes to the Consolidated Financial Statements

18

DIRECTORS:

P R Morgan

J Fowler

J Dudley-Toole

REGISTERED OFFICE:

Hall Lane Works

Elton

Sandbach

Cheshire

CW11 3TU

REGISTERED NUMBER:

10633736 (England and Wales)

AUDITORS:

Thompson Wright Limited

Chartered Accountants

and Statutory Auditors

Ebenezer House

Ryecroft

Newcastle under Lyme

Staffordshire

ST5 2BE

The directors present their strategic report of the company and the group for the year ended 30 September 2022.

REVIEW OF BUSINESS

The prior years investment in automation and growth in new sectors has maintained the company profit despite working through the Pandemic.

Investment in the development of new products and processes continues to be a key focus for the business as it starts to work with new customers and new sectors.

Energy and raw material prices continue to cause inflationary pressure demonstrated in the reduced performance of the business.

Newfield is in regular contact with all customers to mitigate the effect of inflation on the business.

The turnover has been driven by the introduction of several new key customers, operating in alternate markets including medical and the Ministry of Defence, the increased capacity from the investment in capital equipment has allowed the business to offer a shortened lead time and increase in its gross profit levels.

Newfield's expectations and forecasts demonstrate a continuation of this trend throughout 2023 and 2024.

The business continues to invest at a similar level to prior years in Research and Development to further improve the product and process offerings. The alignment of roles and responsibilities in the prior years has allowed the business to make more informed and efficient decisions ultimately driving the profitability in the business forward.

Key performance indicators are turnover, gross margin, and operating profit which can be calculated from the financial statements.

- Gross margin: 34.3% (2021: 34.5%)

- Operating profit: 2.28% (2021: 0.65%)

PRINCIPAL RISKS AND UNCERTAINTIES

The directors have identified the key risks faced by the group to be market risk, financial risk, credit risk and exchange rate risk.

The directors are constantly monitoring both the quality and price of the products it acquires and the range of goods it supplies, to minimise the market risk.

The group seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably.

The group's policy throughout the year has been to maintain liquid funds at the bank and avoid incurring overdraft interest whilst also funding the repayment of finance lease and loan obligations.

To achieve short term flexibility, the group operates an invoice discounting facility and hire purchase facilities, which means that it is exposed to interest rate risk.

Where the group has had to undertake short term borrowings, the company's exposure to interest rate fluctuations on its borrowings is managed by the use of fixed and floating facilities. It is the group's policy to minimise the amount of borrowings at floating rates of interest.

The maturity of borrowings is set out in notes 15 and 16 to the financial statements.

The principal credit risk arises from its trade debtors.

In order to manage credit risk, the directors set limits for its customers based on a combination of payment history and third party credit references. Where available credit insurance is also taken out. Credit limits are reviewed by the credit controller on a regular basis in conjunction with debt ageing and collection history.

During 2022, credit risk exposure was spread over a large number of customers.

FUTURE DEVELOPMENTS

Looking to the future, the directors want to maintain appropriate investment levels in the company to maintain and secure the company's position in the market. The directors closely monitor the market place to ensure that the company can deliver the best products at the best prices.

ON BEHALF OF THE BOARD:

J Dudley-Toole - Director

29 June 2023

The directors present their report with the financial statements of the company and the group for the year ended 30 September 2022.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of steel fabricators.

DIVIDENDS

No dividends will be distributed for the year ended 30 September 2022.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 October 2021 to the date of this report.

P R Morgan

J Fowler

J Dudley-Toole

DISCLOSURE IN THE STRATEGIC REPORT

Future developments and principal risks and uncertainties are disclosed in the strategic report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulation.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have prepared the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland", 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 of the profit or loss of the company for that period. In preparing the financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;

- state whether applicable United Kingdom Accounting Standards, comprising FRS 102, have been followed, subject to any material departures disclosed and explained in the financial statements;

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

- 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 transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006.

The directors are also responsible for safeguarding the assets of the company 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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

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

ON BEHALF OF THE BOARD:

J Dudley-Toole - Director

29 June 2023

Opinion

We have audited the financial statements of Henbury Engineering Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2022 which comprise the Consolidated Profit and loss account, 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 2022 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 four, 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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 directors and other management, and from our commercial knowledge and experience.

- 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 and health and safety legislation and FSC and PEFC compliance;

- 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; 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 journal entries 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;

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

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

- reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, 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.

Jeremy Bostock BA BFP FCA (Senior Statutory Auditor)

for and on behalf of Thompson Wright Limited

Chartered Accountants

and Statutory Auditors

Ebenezer House

Ryecroft

Newcastle under Lyme

Staffordshire

ST5 2BE

29 June 2023

TURNOVER

3

11,914,759

8,989,898

Cost of sales

7,831,302

5,887,778

GROSS PROFIT

4,083,457

3,102,120

Administrative expenses

3,756,931

3,216,433

326,526

(114,313

)

Other operating income

-

227,508

OPERATING PROFIT

5

326,526

113,195

Interest receivable and similar income

-

33,407

326,526

146,602

Interest payable and similar expenses

6

358,869

345,451

LOSS BEFORE TAXATION

(32,343

)

(198,849

)

Tax on loss

7

(281,238

)

(317,135

)

PROFIT FOR THE FINANCIAL YEAR

248,895

118,286

Profit attributable to:

Owners of the parent

248,895

118,286

PROFIT FOR THE YEAR

248,895

118,286

OTHER COMPREHENSIVE INCOME

Purchase of own shares

-

(35,175

)

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

-

(35,175

)

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

248,895

83,111

Total comprehensive income attributable to:

Owners of the parent

248,895

83,111

FIXED ASSETS

Intangible assets

9

(755,066

)

(801,827

)

Tangible assets

10

2,535,663

2,699,021

Investments

11

-

-

1,780,597

1,897,194

CURRENT ASSETS

Stocks

12

1,920,154

1,832,539

Debtors

13

3,454,612

3,133,055

Cash at bank and in hand

736,588

73,289

6,111,354

5,038,883

CREDITORS

Amounts falling due within one year

14

5,920,870

5,142,894

NET CURRENT ASSETS/(LIABILITIES)

190,484

(104,011

)

TOTAL ASSETS LESS CURRENT LIABILITIES

1,971,081

1,793,183

CREDITORS

Amounts falling due after more than one year

15

(1,191,818

)

(1,269,380

)

PROVISIONS FOR LIABILITIES

19

(61,068

)

(54,503

)

NET ASSETS

718,195

469,300

CAPITAL AND RESERVES

Called up share capital

20

120

120

Capital redemption reserve

21

30

30

Retained earnings

21

718,045

469,150

SHAREHOLDERS' FUNDS

718,195

469,300

The financial statements were approved by the Board of Directors and authorised for issue on 29 June 2023 and were signed on its behalf by:

J Dudley-Toole - Director

FIXED ASSETS

Intangible assets

9

-

-

Tangible assets

10

-

-

Investments

11

4,750,000

4,750,000

4,750,000

4,750,000

CURRENT ASSETS

Debtors

13

70

70

CREDITORS

Amounts falling due within one year

14

4,748,695

4,748,695

NET CURRENT LIABILITIES

(4,748,625

)

(4,748,625

)

TOTAL ASSETS LESS CURRENT LIABILITIES

1,375

1,375

CAPITAL AND RESERVES

Called up share capital

20

120

120

Capital redemption reserve

21

30

30

Retained earnings

21

1,225

1,225

SHAREHOLDERS' FUNDS

1,375

1,375

Company's profit for the financial year

-

36,400

The financial statements were approved by the Board of Directors and authorised for issue on 29 June 2023 and were signed on its behalf by:

J Dudley-Toole - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 October 2020

150

386,039

-

386,189

Changes in equity

Reduction in share capital

(30

)

-

30

-

Total comprehensive income

-

83,111

-

83,111

Balance at 30 September 2021

120

469,150

30

469,300

Changes in equity

Total comprehensive income

-

248,895

-

248,895

Balance at 30 September 2022

120

718,045

30

718,195

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 October 2020

150

-

-

150

Changes in equity

Reduction in share capital

(30

)

-

30

-

Total comprehensive income

-

1,225

-

1,225

Balance at 30 September 2021

120

1,225

30

1,375

Changes in equity

Balance at 30 September 2022

120

1,225

30

1,375

Cash flows from operating activities

Cash generated from operations

1

957,754

(548,675

)

Interest paid

(244,467

)

(193,565

)

Interest element of hire purchase payments paid

(114,402

)

(151,886

)

Tax paid

317,135

109,215

Net cash from operating activities

916,020

(784,911

)

Cash flows from investing activities

Purchase of intangible fixed assets

-

(450

)

Purchase of tangible fixed assets

(356,541

)

(196,773

)

Sale of tangible fixed assets

-

13,123

Interest received

-

33,407

Net cash from investing activities

(356,541

)

(150,693

)

Cash flows from financing activities

Loan repayments in year

(78,357

)

(18,286

)

Invoice discounting facility

326,097

1,437,810

Capital repayments in year

(143,920

)

(591,104

)

Share buyback

-

(35,175

)

Net cash from financing activities

103,820

793,245

Increase/(decrease) in cash and cash equivalents

663,299

(142,359

)

Cash and cash equivalents at beginning of year

2

73,289

215,648

Cash and cash equivalents at end of year

2

736,588

73,289

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

2022

2021

£

£

Loss before taxation

(32,343

)

(198,849

)

Depreciation charges

473,137

446,177

Profit on disposal of fixed assets

-

(13,121

)

Finance costs

358,869

345,451

Finance income

-

(33,407

)

799,663

546,251

Increase in stocks

(87,615

)

(986,211

)

Increase in trade and other debtors

(350,889

)

(1,106,586

)

Increase in trade and other creditors

596,595

997,871

Cash generated from operations

957,754

(548,675

)

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 2022

30.9.22

1.10.21

£

£

Cash and cash equivalents

736,588

73,289

Year ended 30 September 2021

30.9.21

1.10.20

£

£

Cash and cash equivalents

73,289

215,648

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.10.21

Cash flow

At 30.9.22

£

£

£

Net cash

Cash at bank and in hand

73,289

663,299

736,588

73,289

663,299

736,588

Debt

Finance leases

(1,728,855

)

143,920

(1,584,935

)

Debts falling due within 1 year

(2,083,684

)

(333,292

)

(2,416,976

)

Debts falling due after 1 year

(153,979

)

85,553

(68,426

)

(3,966,518

)

(103,819

)

(4,070,337

)

Total

(3,893,229

)

559,480

(3,333,749

)

1.	STATUTORY INFORMATION

Henbury Engineering 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.

After making enquiries, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future, being the 12 month period from the date of these accounts being approved, given the impact of the Coronavirus upon the economy, and therefore the financial statements have been prepared on a going concern basis.

Basis of consolidation

The consolidated financial statements incorporate the financial statements of the company and all subsidiary undertakings, together with the group's shares of the net assets and results of associated undertakings and joint ventures. The financial statements of all group companies are adjusted, where necessary, to ensure the use of consistent accounting policies. Acquisitions are accounted for under the acquisition method. The results of companies acquired or disposed of are included in the group profit and loss account from or up to the date that control passes respectively.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Significant judgements and estimates

The company makes significant judgements and estimates concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying value of assets and liabilities are detailed below.

Impairment of debtors

Management makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the progress and stage reached of individual cases.

Stock provision

The company sells products which are subject to changing customer demands and product degradation. As a result it is necessary to consider the recoverability of the cost of stocks and the associated provisioning necessary. When calculating the stock provision, management considers the nature and condition of the stock as well as reviewing sales and purchase history.

Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account any trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on despatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred in respect of the transaction can be measured reliably.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2018, is being amortised evenly over its estimated useful life of twenty years.

The amortisation write off period has been deemed appropriate by the directors.

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.

Computer software is being amortised evenly over its estimated useful life of nil years.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Computer software - over 2 -15 years

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Plant and machinery

-

over 1 to 20 years and 50 years

Fixtures and fittings

-

over 2 to 15 years

Motor vehicles

-

over 4 to 5 years

Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met . Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable . A grant received before the recognition criteria are satisfied is recognised as a liability.

Covid-19 related grants are Government grants receivable in light of the ongoing Covid-19 pandemic. The amounts principally reflect grants receivable under the Coronavirus Job Retention Scheme ("CJRS"). Under CJRS, grant income may be claimed in respect of certain costs to the company of furloughed employees.