Allgood Holdings Limited - Limited company accounts 18.2

REGISTERED NUMBER: 00360355 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2017

FOR

ALLGOOD HOLDINGS LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Income Statement

8

Other Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Notes to the Financial Statements

12

DIRECTORS:

A M Carter-Clout

G P Shirville

REGISTERED OFFICE:

63/83 Brearley Steeet

Birmingham

West Midlands

B19 3NT

REGISTERED NUMBER:

00360355 (England and Wales)

AUDITORS:

Rochesters Audit Services Limited

Statutory Auditors

No 3 Caroline Court

13 Caroline Street

St Pauls Square

Birmingham

West Midlands

B3 1TR

The directors present their strategic report along with the financial statements of the company for the year ended 30

November 2017.

The directors aim to present a balanced and comprehensive review of the development and performance of the business

during the year and its position at the year end. The report is consistent with the size and nature of the business.

ACTIVITIES AND STRATEGY

The company is a non-trading holding company for Allgood Plc and is the intermediate parent of the Allgood group.

The company aims to continue its support of the Allgood Plc group and raise income from its properties and its

participating interest in Key Technologies International Limited.

BUSINESS PERFORMANCE

The results and financial position of the company are detailed in the financial statements. During the year the company

received rental income from group subsidiaries and dividends from its associate.

The operating loss increased slightly to £392,000 (2016: £339,000) due to increased pension costs, however a total

comprehensive profit of £5.6m was made compared to a loss of £2.4 million in 2016. The profit was attributable to an

actuarial gain of £5.9m, net of associated deferred tax (2016: £2.3m actuarial loss), resulting in a change from a pension

liability to an asset at the year end. The gain was due to improvements in gilts yields, reduced mortality rates and a

small reduction in predicted inflation rates. The gain has reduced the ongoing deficit funding contributions payable by

the company but it remains committed to the pension scheme and continues to meet its current commitments to the

scheme.

PRINCIPAL RISKS AND UNCERTAINTIES

The company has identified its exposure to movements in the pension liability as a principal risk and uncertainty. The

company's pension scheme Allgood Holdings Limited Pension and Life Assurance Scheme ("the scheme") faces similar

risks to other UK defined benefit schemes, including low investment returns, high inflation, increases in life expectancy

and regulatory changes, which may mean the pension scheme becomes more of a financial burden.

The last Actuarial Valuation as at 31 March 2017 provides certainty over scheme funding until the next valuation due

as at 31 March 2020. If the conclusion of this next valuation shows a movement from a pension surplus to a deficit,

contributions to fund the change may have to rise, diverting cash resources from investment in the future operations of

the group's business.

The pension surplus is calculated as the value of assets less liabilities and is influenced by the level of contributions

paid by the company. There are a number of factors that can affect liabilities, including expected investment return at

the valuation date, which have shown improvement since the 2014 valuation. If lower future investment return is

assumed this will reduce the scheme assets and the surplus, potentially returning it to a deficit and liability. The

Trustees and the company regularly review investment performance and an investment strategy has been implemented

to mitigate the impact of any increases in liabilities. This ensures there is a reasonable balance between risk and return.

Whilst the current surplus has enabled the company to benefit from reduced deficit funding contributions, the

company's current cash resource also provide some protection against the impact of potential changes in the funding

position of the scheme. The funding liabilities also include a buffer against future negative experience, as current

legislation requires the calculation of liabilities to be on a prudent basis.

The directors do not consider there to be any other risks or uncertainties affecting the company that are material to the

assessment of its loss or financial position.

EVENTS SINCE THE END OF THE YEAR

There are no events since the end of the year of relevance to this report.

ON BEHALF OF THE BOARD:

G P Shirville - Director

16 July 2018

The directors present their report with the financial statements of the company for the year ended 30 November 2017.

DIVIDENDS

Dividends paid to the ultimate parent, Carterville Limited for the year ended 30 November 2017 was £20,000 (2016:

£2,000,000).

DIRECTORS

The directors shown below have held office during the whole of the period from 1 December 2016 to the date of this

report.

A M Carter-Clout

G P Shirville

DISCLOSURE IN THE STRATEGIC REPORT

The directors' report has been prepared in accordance with the provisions applicable to companies entitled to the small

companies exemption. The company, therefore, has taken the small companies exemption to not prepare a strategic

report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the 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), including Financial Reporting Standard 102 'The

Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 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 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. They 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 company'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 company's

auditors are aware of that information.

AUDITORS

The auditors, Rochesters Audit Services Limited, will be proposed for re-appointment at the forthcoming Annual

General Meeting.

ON BEHALF OF THE BOARD:

G P Shirville - Director

16 July 2018

Opinion

We have audited the financial statements of Allgood Holdings Limited (the 'company') for the year ended

30 November 2017 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of

Changes in Equity and 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 company's affairs as at 30 November 2017 and of its loss 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 company 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to

you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information in the

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 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, 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.

Opinion 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 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 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 company and its environment obtained in the course of the audit,

we have not identified material misstatements in the 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, or returns adequate for our audit have not been received from branches not visited by us; or

-	the 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 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 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.

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.

Peter Hewston (Senior Statutory Auditor)

for and on behalf of Rochesters Audit Services Limited

Statutory Auditors

No 3 Caroline Court

13 Caroline Street

St Pauls Square

Birmingham

West Midlands

B3 1TR

16 July 2018

TURNOVER

-

-

Administrative expenses

469,030

416,255

(469,030

)

(416,255

)

Other operating income

76,800

76,800

OPERATING LOSS

4

(392,230

)

(339,455

)

Income from participating interests

99,490

89,249

(292,740

)

(250,206

)

Amounts written off investments

5

7

108

(292,747

)

(250,314

)

Other finance costs

14

137,000

74,000

LOSS BEFORE TAXATION

(429,747

)

(324,314

)

Tax on loss

6

-

(8,424

)

LOSS FOR THE FINANCIAL YEAR

(429,747

)

(315,890

)

LOSS FOR THE YEAR

(429,747

)

(315,890

)

OTHER COMPREHENSIVE INCOME/(LOSS)

Transfers from capital distribution

reserve

106,309

101,247

Actuarial gain/(loss) on pension

liability

7,268,000

(2,811,000

)

Income tax relating to components of other comprehensive income/(loss)

(1,393,330

)

490,550

OTHER COMPREHENSIVE INCOME/(LOSS) FOR THE YEAR, NET OF INCOME TAX

5,980,979

(2,219,203

)

TOTAL COMPREHENSIVE INCOME/(LOSS) FOR THE YEAR

5,551,232

(2,535,093

)

FIXED ASSETS

Tangible assets

8

829,329

696,378

Investments

9

3,806,863

3,700,561

4,636,192

4,396,939

CURRENT ASSETS

Debtors

10

1,500

1,299

Cash at bank

4,023,638

4,509,403

4,025,138

4,510,702

CREDITORS

Amounts falling due within one year

11

2,341,254

2,181,127

NET CURRENT ASSETS

1,683,884

2,329,575

TOTAL ASSETS LESS CURRENT LIABILITIES

6,320,076

6,726,514

PENSION ASSET/(LIABILITY)

14

2,140,020

(3,797,650

)

NET ASSETS

8,460,096

2,928,864

CAPITAL AND RESERVES

Called up share capital

12

201,667

201,667

Revaluation reserve

13

447,198

447,198

Capital redemption reserve

13

106,140

106,140

Capital distribution reserve

13

(908,846

)

(1,015,155

)

Retained earnings

13

8,613,937

3,189,014

SHAREHOLDERS' FUNDS

8,460,096

2,928,864

The financial statements were approved by the Board of Directors on 16 July 2018 and were signed on its behalf by:

G P Shirville - Director

Called up

share

Retained

Revaluation

capital

earnings

reserve

£

£

£

Balance at 1 December 2015

201,667

7,825,354

338,068

Changes in equity

Dividends

-

(2,000,000

)

-

Total comprehensive loss

-

(2,636,340

)

109,130

Balance at 30 November 2016

201,667

3,189,014

447,198

Changes in equity

Dividends

-

(20,000

)

-

Total comprehensive income

-

5,444,923

-

Balance at 30 November 2017

201,667

8,613,937

447,198

Capital

Capital

redemption

distribution

Total

reserve

reserve

equity

£

£

£

Balance at 1 December 2015

106,140

(1,116,402

)

7,354,827

Changes in equity

Dividends

-

-

(2,000,000

)

Total comprehensive loss

-

101,247

(2,425,963

)

Balance at 30 November 2016

106,140

(1,015,155

)

2,928,864

Changes in equity

Dividends

-

-

(20,000

)

Total comprehensive income

-

106,309

5,551,232

Balance at 30 November 2017

106,140

(908,846

)

8,460,096

1.	STATUTORY INFORMATION

Allgood Holdings 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 Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 (FRS 102)

"The Financial Reporting Standard applicable in the UK and Republic of Ireland", issued by the Financial

Reporting Council and the Companies Act 2006. The financial statements have been prepared under the

historical cost convention, modified to include certain items at fair value, where required by FRS 102.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial

statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of

Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirements of Section 11 Financial Instruments paragraphs 11.41(b), 11.41(c), 11.41(e), 11.41(f), 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

•

the requirement of Section 33 Related Party Disclosures paragraph 33.7.

The results of the company are consolidated in the ultimate parent's financial statements and these can be

obtained from Companies House, Crown Way, Cardiff, CF14 3UZ.

Preparation of consolidated financial statements

The financial statements contain information about Allgood Holdings Limited as an individual company and do

not contain consolidated financial information as the parent of a group. The company is exempt under Section

400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its

subsidiary undertakings are included by full consolidation in the consolidated financial statements of its parent,

Carterville Limited, registered in England and Wales.

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.

Significant judgements and estimates

In the application of the company's accounting policies the directors are required to make judgements, estimates

and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other

sources. The estimates and associated 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 revision and future periods if the revision effects both current and future periods.

In preparing these financial statements, the directors have made the following judgements:

The company reviews the carrying value of all assets for indications of impairment at each period. If indicators

of impairment exist, the carrying value of the asset is subject to further testing to determine whether its carrying

value exceeds its recoverable amount. This process will usually involve the estimation of future cash flows

which are likely to be generated by the asset.

Significant judgements and estimates - continued

A provision is recognised when the company has a present legal or constructive obligation as a result of a past

event for which it is probable that an outflow of resources will be required to settle the obligation and the

amount can be reliably estimated. If the effect is material, provisions are determined by discounting the

expected future cash flows at a rate that reflects the time value of money and the risk specific to the liability.

Whether a present obligation is probable or not requires judgement. The nature and type of risks for these

provisions differ and management's judgement is applied regarding the nature and extent of obligations in

deciding if an outflow of resources is probable or not.

The directors have reviewed the asset lives and associated residual values of all fixed assets classes. In

re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance

programmes are taken into account. Residual value assessments consider issues such as future market

conditions, the remaining life of the asset and projects disposal values.

In preparing these accounts the directors have made the following significant estimates:

The financial statements include a net defined benefit pension scheme liability, which comprise of expected

future liabilities in excess of the scheme assets. The liabilities represent costs expected to be incurred in making

pension payments to current and past employees who are members of the scheme.

The valuation of the pension scheme liability is determined on an actuarial basis using the Projected Unit

Method. Assumptions are also made about mortality of the beneficiaries of the pension scheme and future rates

of inflation. The assumptions underlying this calculation are disclosed in note 14.

Significant changes to the assumptions underlying these calculations over the next financial year could result in

significant changes to the carrying value of the pension scheme liability.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property

-

2% on cost of buildings/revalued amount

Long leasehold

-

Over the life of the lease

The directors have adopted a policy of revaluation with regards to Freehold Property.

Freehold property is carried at its revalued amount, being fair value at the date of valuation less subsequent

losses arising from impairment reviews. Revaluations are performed by professional qualified valuers with

sufficient regularity to ensure the carrying amount does not differ materially from those that would be

determined using fair values at the end of each accounting period.

Any revaluation increase in the carrying amount of freehold property is recognised in other comprehensive

income and included in a revaluation reserve in equity, except to the extent that it reverses a revaluation

decrease of the same asset previously recognised in the profit and loss account, in which case the increase is

credited to the profit and loss to the extent that the previous decrease is expended. Decreases that offset

previous increases of the same asset are charged in other comprehensive income and debited against the

revaluation reserve in equity; decreases exceeding the balance in the revaluation reserve relating to an asset are

recognised in profit or loss.

A valuation of freehold property was performed as at 30 November 2016 by Aitchison Raffety Property

Consultants, who are external valuers. The basis of valuation was fair value as defined by RICS Valuation -

Professional Standards.

Financial instruments

(i) Cash and cash equivalents

Cash and cash equivalents are basic financial instruments and include cash in hand, deposits held at call with

banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts.

(ii) Financial assets and liabilities

All financial assets and liabilities are recognised when the company becomes party to the contractual provisions

of the instrument.

Financial liabilities and equity instruments are classified according to the substance of the contractual

arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets

of the company after deducting all its liabilities.

All financial assets and liabilities are initially measured at transaction price (including transaction costs), except

for those financial assets classified as at fair value through profit and loss, which are initially measured at fair

value unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing

transaction, the financial asset or liability is measured at the present value of the future payments discounted at a

market rate of interest for a similar debt instrument.

Financial assets and liabilities are only offset at the balance sheet date when, and only when there exists a

legally enforceable right to set off the recognised amounts and the company intends either to settle on a net

basis, or to realise the asset and settle the liability simultaneously.

Debt instruments that have no stated interest rate and are classified as payable or receivable within one year are

initially measured at an undiscounted amount of the cash or other consideration expected to be paid or received,

net of impairment. Other debt instruments not meeting these conditions are measured at fair value through

profit and loss.

Commitments to make or receive loans which meet the conditions mentioned above are measure at cost less

impairment.

Financial assets are derecognised when and only when the contractual rights to the cash flows for the financial

asset expire or are settled, when the company transfers to another party substantially all the risks and rewards of

ownership of the financial asset, or the company, despite having retained some, but not all, significant risks and

rewards of ownership, has transferred control of the asset to another party.

Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled

or expires.

(iii) Investments

In the company balance sheet, investments in subsidiaries and associates are measured at cost less impairment.

Investments in non-puttable ordinary shares, which are publicly traded, are measured at fair value through profit

and loss. Where fair value cannot be measured reliably, investments are measured at cost less impairment.

(iv) Equity instruments

Equity instruments issued by the company are recorded at the fair value of cash or other resources received or

receivable, net of direct issue costs.

Financial instruments - continued

(v) Fair value measurement

The best evidence of fair value is a quoted price for an identical asset on an active market. When quoted prices

are unavailable, the price of a recent transaction for an identical asset provides evidence of fair value as long as

there has not been a significant changes in economic circumstances or a significant lapse of time since the

transaction took place. If the market is not active and recent transactions of an identical asset on their own are

not a good estimate of fair value, the fair value is estimated using a valuation technique.

Current and deferred taxation

Taxation 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 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 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.

Foreign currencies

Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are reported at the

rates of exchange prevailing at that balance sheet date. Transactions in foreign currencies are recorded at the

rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the

operating result.

Pension costs and other post-retirement benefits

The company operates a defined benefit pension scheme which is now closed to future accrual.

For the defined benefit scheme the amounts charged to operating profit are the costs arising from employee

services rendered during the period and the cost of plan introductions, benefit changes, settlements and

curtailments. They are included as part of staff costs. The net interest cost on the net defined benefit liability is

charged to profit and loss and included in finance costs. Remeasurement comprising actuarial gains and losses

and the return on scheme assets (excluding amounts included in net interest on the net defined benefit liability)

are recognised immediately in Other Comprehensive Income.

The defined benefit scheme is funded, with the assets of the scheme held separately from those of the company,

in separate Trustee administered funds. Pension scheme assets are measured at fair value and liabilities are

measured on an actuarial basis using the Projected Unit Method. The actuarial valuations are obtained at least

triennially and are updated at each Balance Sheet date.

Impairment of assets

Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet

date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss.

For financial assets carried at amortised costs, the amount of an impairment is the difference between the asset's

carrying amount and the present value of estimated future cash flows, discounted at the financial asset's original

effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset's

carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at

the reporting date.

Where indicators exist for the decrease in impairment loss, and the decrease can be related objectively to an

event occuring after the impairment was recognised, the prior impairment loss is tested to determine reversal.

An impairment loss is reversed on an individual impaired financial asset to the extent that the revised

recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment

been recognised.

3.	EMPLOYEES AND DIRECTORS

2017

2016

£

£

Wages and salaries

100,000

100,000

Social security costs

12,845

13,571

Other pension costs

285,795

164,657

398,640

278,228

The average number of employees during the year was as follows:

2017

2016

Administration

2

2

2017

2016

£

£

Directors' remuneration

100,000

108,163

4.	OPERATING LOSS

The operating loss is stated after charging:

2017

2016

£

£

Depreciation - owned assets

12,376

682

5.

AMOUNTS WRITTEN OFF INVESTMENTS

2017

2016

£

£

Loss/(gain) in movement in

fair value of investments

7

108