Directors Report 1

Directors' report for the year ended 31 December 2017

The Directors present their Annual report and the audited financial statements for the year ended 31 December 2017.
Future developments An indication of future developments of the business is included in the Strategic report on page 4.
Directors of the Company The Directors who held office during the year were as follows: F.M. Elkins K. Griffin (resigned 27 February 2018) A.R. Williams (appointed 11 July 2017) The following directors were appointed after the year end: S. Harris (appointed II May 2018) TP Directors Ltd - Director (appointed II May 2018) Directors' liabilities The Company made qualifying third party indemnity provisions for the benefits of its Directors during the year, which remain in force at the date of this report. This is a qualifying provision for the purposes of the Companies Act 2006.
Going concern The Directors have a reasonable expectation that the Company has the resources to continue in operational existence tbr the twelve months from the date of signing these financial statements. Thus it continues to adopt the going concern assumption in preparing the annual financial statements. Further details regarding the going concern basis can be found in note 2 to the financial statements.
Dividends Interim dividends of ?1,500,000 (?29 per ordinary share) (2016: ?nil; ?nil per ordinary share) was paid during the year. The Directors do not recommend payment of a final dividend (2016: ?nil)
Employees Details of the Company's policies on disabled employees and employee consultation are given in the Strategic report on page 16.
Modern slavery The Group will not accept slavery or human trafficking and works with suppliers and colleagues to ensure positive steps are taken to ensure that slavery has no place in the business or supply chain. If issues are identified, investigations and remedial actions will be taken. No instances of slavery or human trafficking have been identified.
The Group's approach to this issue is set out in greater detail in the Travis Perkins plc Annual Report, which does not form part of this report.

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Rudridge Limited
Directors' report for the year ended 31 December 2017 (continued)
Disclosure of information to the auditors Each of the persons who is a Director at the date of approval of this report confirms that:
?so far as the Director is aware, there is no relevant audit information of which the Company's auditor is unaware; and
?the Director has taken steps that they ought to have taken as a Director in order to make themselves aware of any relevant audit information and to establish that the Company's auditors are aware of that information.
This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act 2006.
Reappointment of auditors The auditors, KPMG LLP, have indicated their willingness to continue in office and a resolution concerning their reappointment will be proposed at the Annual General Meeting. Approved by thetBoard on 13j.&.. and signed on its behalf by:

A.R. Williams Director

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Rudridge Limited
Strategic report for the year ended 31 December 2017

The Directors present their Strategic report for the year ended 31 December 2017.
Principal activities The Company is a wholly owned subsidiary of Travis Perkins plc, the ultimate parent company. The principal activity of the Company is the marketing and distribution of civils and drainage solutions to the building trade and construction industry.
Review of the business Rudridge has worked hard through another challenging period with increasingly tough competition. However the impressive track record of providing first-class customer service and the strong working relationships with an extremely loyal customer base has enabled the company to continue to drive business forward and is reflected in this period's financial performance. The Directors believe that by continuing to focus on these key elements of their success will allow the business to continue.
Turnover for the period was ?54.4m (2016: ?74.9m). The Company made an operating profit of ?2.2m (2016: ?3.6m) and profit after tax was ?1.7m (2016: ?2.8m). The balance sheet on page 21 of the financial statements shows the Company's net assets increased by ?0.2m to ?7.5m (2016: ?7.3m).
There have been no events since the balance sheet date which materially affect the position of the Company.
Key performance indicators ('KPIs') The Travis Perkins plc group (the "Group") manages its operations on a divisional basis. For this reason, the Company's Directors believe that further key performance indicators for the Company are not necessary or appropriate for an understanding of the development, performance or position of the business. The performance of the Contracts division of Travis Perkins plc, which includes the Company, is discussed in the Group's Annual Report, which does not form part of this report.
Future developments The Directors expect the Company to continue to trade in a similar manner for the foreseeable future.

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Rudridge Limited Strategic report for the year ended 31 December 2017 (continued) Principal risks and uncertainties The Company operates in markets and an industry which by their nature are subject to a number of inherent gross risks. The Company is able to mitigate those risks by adopting different strategies and by maintaining a strong system of internal control. However, regardless of the approach that is taken, the Company has to accept a certain level of risk in order to generate suitable returns for shareholders and for that reason the risk management process is closely aligned to the Company's strategy.
The Group has a risk reporting framework that ensures it has visibility of the Company's key risks, the potential impacts on the Company and how and to what extent those risks are mitigated. As part of its risk management process, the principal risks stated in the risk register are reviewed, challenged and updated by the Group Board and monitored throughout the year. The Company maintains a separate risk register. The Group's risk register is used to determine strategies adopted by the Group's various businesses to mitigate the identified risks and are embedded in their operating plans.
In common with most large organisations the Company is subject to general commercial risks; for example, political and economic developments, changes in the cost of goods for resale, increased competition in its markets and the threat of emerging and disruptive competitors, material failures in the supply chain, failure to secure supply of goods for resale on competitive terms, cyber-security breaches and failure of the IT infrastructure.
The risk environment in which the Company operates does not remain static. During the year, the Directors have reviewed the principal risks and and have concluded that as the nature of the business and the environment in which it operates remain broadly the same, the principal risks it faces are largely unchanged. However, some previously identified risks in respect of business transformation have considerable overlap and so they have been combined, whilst the Directors have also concluded that with so many stakeholders interacting with operations, health and safety risk should be described separately from other legislative risk. Finally, the resolution of some of the tax disputes with HMRC means that the Board no longer believes that this area represents a principal risk.
The nature of risk is that its scope and potential impact will change over time. As such the list below should not be regarded as a comprehensive statement of all potential risks and uncertainties that may manifest themselves in the future. Additional risks and uncertainties that are not presently known to the Directors, or which they currently deem immaterial, could also have an adverse effect on the Company's future operating results, financial condition or prospects.
The table below sets out, in no particular order, the current principal risks that are considered by the Board to be material, their potential impacts and the factors that mitigate them. The inherent risk (before the operation of control) is stated for each risk area together with an indication of the current trend for that risk. These key risks have been determined for the Group and are considered applicable to the Company.

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Rudridge Limited
Strategic report for the year ended 31 December 2017 (continued)

Risk Description Impact The Group sells and distributes Adverse effect building materials through a on financial number of channels. The number results. of outlets and channels where building materials can be purchased continues to grow with new competitors also entering the market. These new entrants may operate business models which differ significantly from the traditional merchanting and retail and online formats from which the Group operates and may take market share.
At the same time, customer purchasing habits are evolving with increasing online transactions. Customers' preference for purchasing materials through a range of supply channels and not just through the Group's traditional competitors may affect the Group's performance and adversely impact the profitability of branch based operations.
Increasing price transparency could lead to a perception that the Group is less price competitive leading to downward pressure on price and margins. Risk Mitigation Changes to market practice are tracked on an on-going basis and reported to the Board each month.
The Group is building multi-channel capabilities that complement its existing operations and provide its customers with the opportunity to transact with the Group through channels that best suit their needs.
The Group's strategy allows it to use sites flexibly. Alternative space utilisation models are possible, including maintaining smaller stores and implanting additional services into existing branches.
The development of new, innovative and competitive supply solutions is a key strength of the Group. It works closely with customers and suppliers on a programme of continuous improvement designed to improve its customer proposition.
Pricing strategies across the Group are regularly reviewed and where necessary refined to ensure they remain competitive. Inherent Risk, Level and Trend Changing Customer and Competitor Landscape
Inherent Risk: High Trend: Static

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Rudridge Limited
Strategic report for the year ended 31 December 2017 (continued)
Risk Description The ability to recruit, retain and motivate suitably qualified staff is an important driver of the Group's overall performance. The Group may also be exposed to skills shortages in certain areas which can result in salary cost pressures.
The strength of the Group's customer proposition is underpinned by the quality of people working throughout the Group, particularly in customer facing roles. Many of them have worked for Travis Perkins for some considerable time, during which they have gained valuable product & customer knowledge and expertise.
The Group faces competition for the best people from other organisations. Ensuring the retention, proper development of employees and the succession plans for key positions is important if the Group is not to suffer an adverse effect on its prospects.
The Group's reward and recognition systems are actively managed to ensure high levels of employee engagement.
A wide range of training programmes are in place to encourage staff development, whilst management development programmes are available to those identified for more senior positions.
Salaries and other benefits are benchmarked regularly to ensure that the Group remains competitive and the Group operates incentive structures to ensure that high performing colleagues are adequately rewarded and retained. Inherent Risk, Level and Trend Colleague recruitment, retention and succession plans do not deliver the required skills and experience
Inherent Risk: Low Trend: Static Impact Risk Mitigation inability to The Group's employment policies develop and and practices are kept under execute regular review. development and succession plans. Staff engagement and turnover by job type is reported to the Competitive Executive Committee regularly disadvantage. and to the Board. Succession plans
positions within the Group and these are reviewed annually.

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Rudridge Limited
Strategic report for the year ended 31 December 2017 (continued)
Risk Description The Group is the largest customer to a number of its suppliers. In some cases, those suppliers are large enough to cause significant supply difficulties to the Group if they are unable to meet their supply obligations due to either economic or operational factors.
Alternative sourcing may be available, but the volumes required and the time it may take those suppliers to increase production could result in significant stock-outs for some considerable time leading to poor customer service.
The Group has increased the sourcing of products from overseas factories. This has increased the Group's exposure to sourcing, quality, trading, warranty and currency issues, which again may lead to an adverse impact on customer service.
Manufacturers of building materials sold by the Group may also look to sell their products directly to end customers in the future diminishing the role of distributors such as merchanting and retail distribution businesses. Risk Mitigation Making decent returns is one of the Group's cornerstones which requires it to treat both customers and suppliers fairly. The commercial and financial teams have established strong relationships with the Group's key suppliers and work closely with them to ensure contracts that are beneficial to both parties and the continuity of quality materials.
To spread the risk where possible contracts exist with more than one supplier for key products.
The Group has made a significant investment in its Far East infrastructure to support its direct sourcing operation which allows the development of own brand products, thereby reducing the reliance on branded suppliers.
Comprehensive checks are undertaken on the factories producing products and the quality and the suitability of those products before they are shipped to the UK. Inherent Risk, Level and Trend Supplier dependency, relationships and disintermediation leading to adverse impacts on ranging and price
Inherent Risk: Medium Trend: Static Impact Adverse effect on financial results.
Adverse effect on reputation.

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Rudridge Limited
Strategic report for the year ended 31 December 2017 (continued)
Inherent Risk, Level and Trend Risk Description Impact Unsafe practices Keeping our colleagues, Adverse effect result in harm to customers, suppliers and the publicon financial colleagues, safe is a cornerstone of the results. customers, suppliers business. The Group operates over or the public two thousand sites, many with Adverse effect complex and busy yards. It also on reputation. Inherent Risk: ? operates one of the largest vehicle Medium fleets in the UK, distributing heavy Trend: Reducing and bulky materials. Poorly implemented safety practices could
which would damage the company's reputation and could impact trading performance. Adverse effect on financial results.

The Group operates a number of different businesses in the UK which operate in different but complementary channels. As the Group's markets continue to develop, it is investing to enhance its existing businesses and also to develop new propositions to better serve its customers.
While the Group operates a disciplined capital allocation process, there is a risk that it may be over-investing in channels which may decline or that it may not be allocating sufficient capital to new propositions resulting in sub-optimal returns on capital. Risk Mitigation The Group continues to challenge its thinking and approach to improving its safety performance through its now well established 'Stay Safe' brand.
Stay Safe performance is reviewed at all Plc Board Meetings, by the Executive Committee and during the Group's regular Divisional leadership meetings.
Incidents are monitored, investigated and corrective action taken to reduce the likelihood of similar incidents in future.
De-risking the Group's operations, improving health and safety awareness and implementing improved ways of working are at the forefront of the Group's activities. Further information on progress made during 2017 can be found in the Health and Safety report. Return on capital is one of the Group's key performance indicators. Responsibility for identifying and implementing opportunities to expand, improve or modify the Group's operations rests with each of the divisional boards, with capital being deployed or re-deployed by the Group to those projects expected to achieve the best return on capital.
Major projects are kept under review to monitor progress and ensure the deployment of capital remains appropriate.
Post implementation reviews are undertaken of all major projects and returns are monitored on an ongoing basis to ensure that the expected returns are achieved, but also to allow the Group to modify its capital allocation when appropriate. The Group allocates capital inefficiently or under invests in advantaged businesses and does not achieve desired returns
Inherent Risk: Medium Trend: Static Page 9
Rudridge Limited
Strategic report for the year ended 31 December 2017 (continued)

Risk Description Impact The Group undertakes a variety of Adverse effect projects throughout its business in on financial order to generate returns for its results. shareholders. These projects are intended to transform the Group's Adverse effect core IT systems, to develop its on shareholder supply chain operations and its value. branch and store networks and to materially improve performance in certain businesses which have underperformed in recent years. The Group also undertakes acquisition and disposal activity to optimise its portfolio of businesses.
By their nature, such strategic projects are often complicated, interlinked and may result in a high level of change and require considerable resource to deliver them. As a result, the expected benefits and the costs of implementation of each project may deviate from those anticipated at their outset.

Inherent Risk, Level and Trend Business transformation projects, turnaround projects and M&A activity fail to deliver the expected benefits, cost more or take longer to implement than anticipated
Inherent Risk: Medium Trend: Static Risk Mitigation All potentially significant projects are subject to detailed investigation, assessment and approval prior to commencement.
Dedicated teams, including financial resource, are allocated to each project, with additional expertise being brought into the Group to supplement existing resource when necessary.
All strategic projects are closely monitored by the Executive Committee with regular reporting to the Board. Page 10
Rudridge Limited
Strategic report for the year ended 31 December 2017 (continued)
Risk Description Impact The Group's products are sold to Adverse effect businesses, tradesmen and retail on financial customers for a broad range of end results. uses in the built environment. The Group's markets are cyclical in nature and the performance of those markets is affected by general economic conditions and a number of specific drivers of construction, RMI and DIY activity, including mortgage availability and affordability, housing transactions and the timing and nature of government activity to stimulate activity, net disposable income, house price inflation, consumer confidence, interest rates and unemployment.
A significant downturn in economic conditions or alternatively major uncertainty about the future outlook could affect the levels of construction activity in the Group's markets and the confidence levels of the Group's customers, which could reduce their propensity to purchase products and services from the Group's businesses. Risk Mitigation The Board conducts an annual review of strategy, which includes an assessment of likely competitor activity, market forecasts and possible future trends in products, channels of distribution and customer behaviour.
The Group maintains a comprehensive tracking system for lead indicators that influence the market for the consumption of building materials in the UK.
Significant events including those in the supply chain that may affect the Group are monitored by the Executive Committee and reported to the Board monthly by the Group CEO.
Should market conditions deteriorate then the Board has a range of options dependent upon the severity of the change. Historically these have included amending the Group's trading stance, cost reduction, lowering capital investment and cutting the dividend. Inherent Risk, Level and Trend Market conditions leading to demand uncertainty
Inherent Risk: High Trend: Increasing

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Rud ridge Limited
Strategic report for the year ended 31 December 2017 (continued)
Inherent Risk, Risk Description Impact The result of the UK vote to leave Adverse effect the European Union has caused on financial considerable market uncertainty. results. This has made the economic outlook more difficult to predict in the short term and has resulted in a significant volatility in the value of sterling against the principal currencies used by the Group to pay for imported goods. Risk Mitigation It is still too early to determine the full impact of the decision to leave, but the Board is closely monitoring market conditions and will react accordingly.
The Board has already taken steps to reduce some costs, but is carefully balancing the current needs of the business against what may or may not occur in the future. Level and Trend Uncertainty caused by the UKs decision to leave the European Union
Inherent Risk: High Trend: Increasing Future trading relationships with foreign markets have yet to be determined and these may result in higher tariffs or duties on imports of construction products as well as extended lead times on imported supplies or result in the need to source some products elsewhere. The construction industry and the distribution and logistics markets employ a significant number of non-UK nationals and the UK may become a less attractive place for them to work resulting in labour shortages and consequent salary cost pressures.
The effect on the Group's operations is unlikely to become clear until the UK's future trading relationships are determined.
The Group continues to invest in the business where those investments are expected to realise acceptable returns, but it is prepared to reduce activity levels should market conditions so dictate.
Where the cost of goods increases due to the exchange rate deteriorating or additional tariffs and duties, the Group will seek to pass those price increases through to its customers, but its ability to do so will depend upon market conditions at the time.
The processes in place around the recruitment and retention of people are set out in the principal risk pertaining to such matters.

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Rud ridge Limited
Strategic report for the year ended 31 December 2017 (continued)
Impact Adverse effect on financial condition. Risk Description The Group is required by law to maintain a minimum funding level in relation to its on-going obligations to provide current and future pensions for members of its defined benefit pension schemes.
The level of contributions required from the Group to meet the benefits promised in the final salary schemes will vary depending upon the funding position of those schemes. Risk Mitigation All the Group's final salary pension schemes are closed to new members, although they remain open to accrual. Since 2015 individual employee contribution rates have been more closely linked to the cost of accrual which has resulted in the current service contribution of the Group being capped.
For the Travis Perkins scheme, pensionable salary inflation has been capped at 3% per annum. Inherent Risk, Level and Trend Defined benefit pension scheme funding requirements could increase
Inherent Risk: Medium Trend: Static While the Group has taken actions to manage the future cost, the cash funding of pension obligations could increase significantly due to a number of factors including poor performance of the pension fund investments, falling corporate bond and gilt yields and increasing longevity of pension scheme members.
The schemes' investment policies are kept under regular review by the trustees in conjunction with the Group to ensure asset portfolios produce the desired level of return within an acceptable risk profile.
In 2017 an investment de-risking plan established in 2015 was completed with hedging strategies designed to limit the Schemes' exposure to inflation and interest rate fluctuations being put in place.
Notwithstanding this the Group remains exposcd to movements in member longevity, the value of pension scheme investments and falling corporate bond and gilt rates.
The Group has agreed deficit reduction payment plans for each of its defined benefit pension schemes with the Trustees of the schemes. The repayment plans will remain in place until the next actuarial valuation, when in conjunction with the Scheme Trustees they will be reassessed to take into account the circumstances at the time.

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Rudridge Limited
Strategic report for the year ended 31 December 2017 (continued)

Risk Mitigation The strategic demands of the business, the resources available to IT, the performance levels of key systems and IT security are kept under review by the Executive Committee with responsibility for monitoring and maintaining cyber security delegated to a data security committee.
Investments in best of breed solutions are made that continually adapt to mitigate the risk associated with the most advanced threats.
Cyber security controls are in place to protect IT systems and data including firewalls, virus protection and penetration testing. A programme of risk oriented reviews is undertaken to ensure the level of control around IT systems remains robust.
An IT disaster recovery plan exists together with a business continuity plan. Arrangements are in place for alternative data sites for both trade and consumer businesses. Off-site back-up routines are in place.

Inherent Risk, Level and Trend Data security
Inherent Risk: Medium Trend: Increasing

Risk Description Impact Incidents of sophisticated Adverse effect cyber-crime represent a significant on financial and increasing threat to all results. businesses including the Group. A major breach of system security Adverse effect could result in system disruption toon the Group's both customer facing and financial reputation. systems and / or the theft and misuse of confidential data with consequential impacts on the Group's reputation or ability to trade. Page 14
Rudridge Limited
Strategic report for the year ended 31 December 2017 (continued)
Risk Description The Group is subject to a broad range of existing and evolving governance, environmental, health and safety and other laws, regulations, standards and best practices which affect the way the Group operates and give rise to significant compliance costs, potential legal liability exposure for non-compliance and potential limitations on the development of the Group's operations. Risk Mitigation The Group's legal team is responsible for monitoring changes to laws and regulations that affect the business.
The Group has policies in place that set out the ways employees and suppliers are expected to conduct themselves. Those expectations are widely disseminated using a range of methods to ensure colleagues and suppliers understand their responsibilities to comply with the law and other regulations affecting the Group at all times.
The Board and the Executive Committee regularly monitor compliance with laws and regulations.
The Group operates a whistleblowing process that allows the anonymous reporting of non-compliance with health and safety, environmental, bribery and other laws and regulations. Inherent Risk, Level and Trend The changing regulatory framework, including GDPR and new building regulations, increase the risk of non-compliance and fines
Inherent Risk: Medium Trend: Static Impact Adverse effect on the Company's reputation.
Adverse effect on branch operations.
Adverse effect on financial performance.

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Rudridge Limited
Strategic report for the year ended 31 December 2017 (continued)

Corporate responsibility Environmental matters The Travis Perkins plc group recognises the importance of its environmental responsibilities, monitors its impact on the environment, and designs and implements policies to reduce any damage that might be caused by the Group's activities.
The Company operates in accordance with group policies, which are described in the Group's Annual Report, which does not form part of this report. Initiatives designed to minimise the Company's impact on the environment include improving energy use efficiency, reducing the amount of CO2 emissions and minimising the consumption of water and the production of waste (both hazardous and non-hazardous).
Company employees Details of the number of employees and related costs can be found in note 8 to the financial statements.
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled every effort is made to ensure that their employment with the Company continues and that appropriate training is arranged. It is the policy of the Company that the training, career development and promotion of disabled persons should, as far as possible, be identical with that of other employees.
The Company's employment policies have been designed to meet the needs of its business, and follow best practice whilst complying with both current and anticipated legislation. Applied consistently throughout the Company they provide a fair framework within which employees work.
The Company is firmly committed to?ensuring that the manner in which it employs staff is fair and equitable. Its equal opportunities policy is designed to ensure that no person or group of individuals will be treated less favourably because of their race, colour, ethnic origin, gender or sexual orientation, age or disability.
The Company maintains a policy of regular consultation and discussion with its employees on a wide range of issues that are likely to affect their interests and ensure that all employees are aware of the financial and economic performance of their business units and of the Company as a whole.
With branches throughout the United Kingdom, the Company recognises its role in and responsibilities towards local communities. Branches are encouraged to support their local communities through involvement in local affairs, such as by sponsoring organisations or donating materials to projects. Approved by the Board on 31.03..1i. and signed on its behalf by:

A.R. Williams Director

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Rudridge Limited
Statement of Directors' responsibilities
The Directors are responsible for preparing the Strategic report, the Directors report 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 UK accounting standards and applicable law (UK Generally Accepted Accounting Practice) including FRS 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; ?state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; ?assess the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and ?use the going concern basis of accounting unless they the either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so. 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 responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the company and to prevent and detect fraud and other irregularities.

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Independent Auditor's Report to the Members of Rudridge Limited
Opinion We have audited the financial statements of Rudridge Limited ('the Company') for the year ended 31 December 2017, which comprise the profit and loss account and total comprehensive income, balance sheet, statement of changes in equity, and related notes, including the accounting policies in note 2. In our opinion the financial statements: ?give a true and fair view of the state of the Company's affairs as at 31 December 2017 and of its profit for the year then ended; ?have been properly prepared in accordance with UK accounting standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland; 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 are described below. We have fulfilled our other ethical responsibilities under, and are independent of the company in ac,cordance with, UK ethical requirements including the FRC Ethical Standard. We believe that the audit evidence we have obtained is a sufficient and appropriate, basis for our opinion.
Going concern We are required to report to you if we have concluded that the use of the going concern basis of accounting is inappropriate or there is an undisclosed material uncertainty that may cast significant doubt over the use of that basis for a period of at least twelve months from the date of approval of the financial statements. We have nothing to report in these respects.
Strategic report and directors' report The Directors are responsible for the strategic report and the Directors' report. Our opinion on the financial statements does not cover those reports and we do not express an audit opinion thereon. Our responsibility is to read the Strategic report and the Directors' report and, in doing so, consider whether, based on our financial statements audit work, the information therein is materially misstated or inconsistent with the financial statements or our audit knowledge. Based solely on that work: ?we have not identified material misstatements in the Strategic report and the Directors' report; ?in our opinion the information given in those reports for the financial year is consistent with the financial statements; and ?in our opinion those reports have been prepared in accordance with the Companies Act 2006.
Matters on which we are required to report by exception Under the Companies Act 2006, we are required 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. We have nothing to report in these respects.
Directors' responsibilities As explained more fully in their statement set out on page 17, the Directors are responsible for: the preparation of the financial statements and for being satisfied that they give a true and fair view, such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error; 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 they either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so. Page 18
Independent Auditor's Report to the Members of Rudridge Limited (continued)
Auditor's responsibilities 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 our opinion in an auditor's report. Reasonable assurance is a high level of assurance, but does not 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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements. A fuller description of our responsibilities is provided on the FRC's website at WWW.frc.org.uk/auditorsresponsibilities.
The purpose of our audit work and to whom we owe our responsibilities 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 an auditor's report 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.

Greg Watts (Senior Statutory Auditor) For and on behalf of KPMG LLP, Statutory Auditor Chartered Accountants,
One Snowhill Snow Hill Queensway Birmingham B4 6GH
Date

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Rudridge Limited
Profit and loss account and total comprehensive income for the year ended 31 2017-12-01 00:00:00 Sheet1 Page 20
Rudridge Limited