Company Registration No. 09741016 (England and Wales)
ELLISDON HOLDINGS LIMITED
ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
ELLISDON HOLDINGS LIMITED
COMPANY INFORMATION
Directors
G J Ellisdon
A R T Ellisdon
Company number
09741016
Registered office
Riverside House
14 Prospect Place
Welwyn
Herts
AL6 9EN
Auditor
Mercer & Hole LLP
72 London Road
St Albans
Hertfordshire
AL1 1NS
ELLISDON HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 33
ELLISDON HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 1 -

The directors present the strategic report for the year ended 31 December 2022.

Review of the business

2022 was another difficult year for all retail businesses due to events outside the control of the directors, e.g. the war in Ukraine, but the directors are pleased to report a group operating profit for the year of £1m from a Turnover of £15.3m.

 

Turnover didn’t reach the level experienced pre Covid, but it showed that retail was recovering to near pre Covid levels. Turnover was affected by customers still unsure about the economic situation following Covid and the war in Ukraine. The war also affected logistics and the delays in stock arriving from overseas affected turnover as the products were not available or they arrived late and out of season.

 

Further investment into the company’s digital offering continued in 2022 (and into 2023) along with other sales channels such as Next via their website and other Market Place providers have helped to increase Turnover.

 

The company also continued to invest in its Freehold Properties, with a further £2.4m being spent on the company’s headquarters in Gt Gaddesden, Hertfordshire.

Principal risks and uncertainties

The principal risks and uncertainties facing the company are summarised below and these are formally reviewed each month when the Board meets. Updates in terms of emerging risks or significant actions undertaken are addressed as and when required at Board meetings. The principal risks are determined through an evaluation of likelihood of occurrence and potential impact. Management also review specific strategic, operational, financial and compliance risks throughout the year.

Competitive pressures

The economic environment during 2022 was greatly affected by the war in Ukraine, and the company was exposed, just as many other retailers and business sectors. The company provides a discretionary purchase opportunity, so when a war affects economic confidence there is the pressure to maintain sales. The war also affected delivery times and the cost of products. The company has largely been able to maintain turnover and remain competitive by offering good quality products at good value for money.

We pride ourselves on the quality of the products and service we offer and on the evolving product range which has diversified into non-leather goods as further accessory ranges.

Recruitment, development or retention of talented people

We constantly measure the retention of talent within our company, this is of paramount importance to us. We actively seek to engage employees by focusing on training and development, customer service and relationships, leadership, social responsibility and communications.

Significant failure or inefficiencies in our systems and infrastructure

Ongoing review of our IT infrastructure and cyber security procedures include regular tests of our systems. We continually improve workflows and operational efficiencies and provide increased capacity and investment in capability. Continued investment is being made in the company's IT infrastructure and website, with extra consideration to improve the company's web offering to help mitigate current economic challenges of store closures. The company has integrated a new ERP system encompassing stock, logistics, sales, procurement and accounting in March 2023.

Long term evolution of our brand and products

We continue to plan for the future, exploring new avenues of development for our products, including non-leather, for the benefit of our customers. We pride ourselves on the quality of the Osprey London brand, and are constantly seeking new ways to improve on the high-quality products and customer service we provide.

ELLISDON HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -
Key performance indicators

The directors consider that turnover, gross margin and administrative costs as a proportion of sales to be the most reliable and important indicators for measuring the company’s performance and all are reviewed on a monthly basis at Board meetings. The directors consider the achieved revenue of £15.3m to be a satisfactory result considering the war in Ukraine and the hangover from COVID-19.

The Board monitor KPI’s regularly, from week to week and reacts as required. Sales from all channels are monitored daily along with cash flows.

The gross margin has been maintained at 58% despite the increase in the cost of product due to the impact of rising costs due to the war in Ukraine. Overall, the directors are happy with the margins being achieved.

Future developments

Store closures have occurred in 2023, but only loss-making stores have been closed so an overall benefit to the company. New leases are about to be signed on our sites at Gunwharf Quays, Portsmouth, York, Braintree, Chesire Oaks, Clarks Village at Street, Bridgend, and Ashford. The directors are always looking for new store locations but only if the returns from such are favourable.

The current trading position is challenging with the continuation of the war in Ukraine and the current cost of living crisis. That said, the directors are still looking to increase revenues by increasing the product offering, improvements have been made in the online experience and website increasing the number of products available, and the company continues to look for licensing opportunities for the OSPREY London brand.

The company’s, products are now fully integrated into the Next website and negotiations are ongoing with other significant retailers to incorporate product onto their online offerings allowing the company to expand without having to make significant investments into traditional stores.

The directors are very optimistic about the future of the business.

On behalf of the board

G J Ellisdon
Director
10 October 2023
ELLISDON HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 3 -

The directors present their annual report and financial statements for the year ended 31 December 2022.

Principal activities

The principal activity of the company was that of a holding company of its subsidiary, Graeme Ellisdon Limited. Its principal activity was that of the retail of luxury leather and lifestyle goods.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £340,000. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

G J Ellisdon
A R T Ellisdon
Research and development

The group undertakes research and development upgrading and improving their website in order to improve their online offering to customers.

Auditor

The company’s auditor, Mercer & Hole, incorporated on 1 October 2022 to become Mercer & Hole LLP. The directors have consented to treating the incorporation of Mercer & Hole LLP as a continuation of the existing audit arrangement and in accordance with the company’s articles, a resolution proposing that Mercer & Hole LLP be reappointed as auditor of the company will be put at a General Meeting.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
G J Ellisdon
Director
10 October 2023
2023-10-10
ELLISDON HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 4 -

The directors are responsible for preparing the Annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

ELLISDON HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ELLISDON HOLDINGS LIMITED
- 5 -
Opinion

We have audited the financial statements of Ellisdon Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2022 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including 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:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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

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 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:

ELLISDON HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ELLISDON HOLDINGS LIMITED
- 6 -
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 their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 is 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 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's 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 an auditor's report 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.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Based on our understanding of the group and industry, we identified that the principal risks of non-compliance with laws and regulations related to breaches under General Data Protection Regulations and we considered the extent to which non-compliance may have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act and tax legislation.

We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements and the financial report (including the risk of override of controls), and determined that the principle risks were related to posting inappropriate entries including journals to overstate revenue or understate expenditure, and management bias in accounting estimates.

Audit procedures performed by the engagement team included:

ELLISDON HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ELLISDON HOLDINGS LIMITED
- 7 -

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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 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.

Paul Maberly FCA (Senior Statutory Auditor)
For and on behalf of Mercer & Hole LLP
10 October 2023
Chartered Accountants
Statutory Auditor
72 London Road
St Albans
Hertfordshire
AL1 1NS
ELLISDON HOLDINGS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 8 -
2022
2021
Notes
£
£
Turnover
3
15,308,022
13,189,809
Cost of sales
(6,462,414)
(5,499,924)
Gross profit
8,845,608
7,689,885
Administrative expenses
(7,958,644)
(6,040,052)
Other operating income
196,150
871,891
Operating profit
4
1,083,114
2,521,724
Interest receivable and similar income
7
1,655
119
Interest payable and similar expenses
8
(205,069)
(140,995)
Impairment of Freehold Property
11
(1,187,262)
-
0
(Loss)/profit before taxation
(307,562)
2,380,848
Tax on (loss)/profit
9
83,854
(119,626)
(Loss)/profit for the financial year
26
(223,708)
2,261,222
(Loss)/profit for the financial year is all attributable to the owners of the parent company.
ELLISDON HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022
- 9 -
2022
2021
£
£
(Loss)/profit for the year
(223,708)
2,261,222
Other comprehensive income
Tax relating to other comprehensive income
-
0
(76,520)
Total comprehensive income for the year
(223,708)
2,184,702
Total comprehensive income for the year is all attributable to the owners of the parent company.
ELLISDON HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2022
31 December 2022
- 10 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
11
14,259,195
13,447,491
Investment properties
12
2,138,000
2,138,000
16,397,195
15,585,491
Current assets
Stocks
15
3,016,410
3,099,607
Debtors
16
1,372,489
1,281,023
Cash at bank and in hand
2,199,389
3,412,386
6,588,288
7,793,016
Creditors: amounts falling due within one year
17
(7,925,629)
(7,096,230)
Net current (liabilities)/assets
(1,337,341)
696,786
Total assets less current liabilities
15,059,854
16,282,277
Creditors: amounts falling due after more than one year
18
(4,797,250)
(5,084,540)
Provisions for liabilities
21
(407,619)
(779,044)
Net assets
9,854,985
10,418,693
Capital and reserves
Called up share capital
25
20,000
20,000
Revaluation reserve
26
2,242,021
2,242,021
Merger reserve
26
102
102
Profit and loss reserves
26
7,592,862
8,156,570
Total equity
9,854,985
10,418,693
The financial statements were approved by the board of directors and authorised for issue on 10 October 2023 and are signed on its behalf by:
10 October 2023
G J Ellisdon
A R T Ellisdon
Director
Director
ELLISDON HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2022
31 December 2022
- 11 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
11
13,309,817
12,105,711
Investment property
12
2,138,000
2,138,000
Investments
13
19,900
19,900
15,467,717
14,263,611
Current assets
Debtors
16
6,092
-
0
Cash at bank and in hand
500,000
500,000
506,092
500,000
Creditors: amounts falling due within one year
17
(11,903,544)
(10,288,904)
Net current liabilities
(11,397,452)
(9,788,904)
Total assets less current liabilities
4,070,265
4,474,707
Creditors: amounts falling due after more than one year
18
(3,548,328)
(3,673,973)
Provisions for liabilities
Deferred tax liability
22
107,619
409,044
(107,619)
(409,044)
Net assets
414,318
391,690
Capital and reserves
Called up share capital
25
20,000
20,000
Revaluation reserve
26
351,480
351,480
Profit and loss reserves
26
42,838
20,210
Total equity
414,318
391,690

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £362,628 (2021 - £432,784 profit).

The financial statements were approved by the board of directors and authorised for issue on 10 October 2023 and are signed on its behalf by:
10 October 2023
G J Ellisdon
A R T Ellisdon
Director
Director
Company registration number 09741016 (England and Wales)
ELLISDON HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 12 -
Share capital
Revaluation reserve
Merger reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2021
20,000
2,318,541
102
6,265,348
8,603,991
Year ended 31 December 2021:
Profit for the year
-
-
-
2,261,222
2,261,222
Other comprehensive income:
Tax relating to other comprehensive income
-
(76,520)
-
-
0
(76,520)
Total comprehensive income for the year
-
(76,520)
-
2,261,222
2,184,702
Dividends
10
-
-
-
(370,000)
(370,000)
Balance at 31 December 2021
20,000
2,242,021
102
8,156,570
10,418,693
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
-
-
(223,708)
(223,708)
Dividends
10
-
-
-
(340,000)
(340,000)
Balance at 31 December 2022
20,000
2,242,021
102
7,592,862
9,854,985
ELLISDON HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 13 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2021
20,000
428,000
(42,575)
405,425
Year ended 31 December 2021:
Profit for the year
-
-
432,785
432,785
Other comprehensive income:
Tax relating to other comprehensive income
-
(76,520)
-
0
(76,520)
Total comprehensive income
-
(76,520)
432,785
356,265
Dividends
10
-
-
(370,000)
(370,000)
Balance at 31 December 2021
20,000
351,480
20,210
391,690
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
362,628
362,628
Dividends
10
-
-
(340,000)
(340,000)
Balance at 31 December 2022
20,000
351,480
42,838
414,318
ELLISDON HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 14 -
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
31
2,046,366
4,047,933
Interest paid
(205,069)
(140,995)
Income taxes refunded/(paid)
105,333
(179,045)
Net cash inflow from operating activities
1,946,630
3,727,893
Investing activities
Purchase of tangible fixed assets
(2,492,868)
(2,411,631)
Proceeds from disposal of tangible fixed assets
-
7,740
Repayment of loans
(6,092)
-
Interest received
1,655
119
Net cash used in investing activities
(2,497,305)
(2,403,772)
Financing activities
Proceeds from new bank loans
-
500,000
Repayment of bank loans
(302,300)
(183,232)
Payment of finance leases obligations
(18,416)
(23,049)
Dividends paid to equity shareholders
(340,000)
(370,000)
Net cash used in financing activities
(660,716)
(76,281)
Net (decrease)/increase in cash and cash equivalents
(1,211,391)
1,247,840
Cash and cash equivalents at beginning of year
3,410,780
2,162,940
Cash and cash equivalents at end of year
2,199,389
3,410,780
Relating to:
Cash at bank and in hand
2,199,389
3,412,386
Bank overdrafts included in creditors payable within one year
-
(1,606)
ELLISDON HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 15 -
1
Accounting policies
Company information

Ellisdon Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Riverside House, 14 Prospect Place, Welwyn, Herts, AL6 9EN.

 

The group consists of Ellisdon Holdings Limited and its subsidiary, Graeme Ellisdon Limited.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

The consolidated financial statements incorporate those of Ellisdon Holdings Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries previously acquired are consolidated using the merger accounting method. Their results are presented as if the group had always existed.

 

All financial statements are made up to 31 December 2022. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

ELLISDON HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 16 -
1.2
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company and group has adequate resources to continue in operational existence for the foreseeable future. In making this assessment, the directors have considered trading levels since the year end as well as forecasts prepared for 2023 and 2024. Cash flow forecasts indicate sufficient headroom through to December 2024. Based on these directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
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 trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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 dispatch 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 or to be incurred in respect of the transaction can be measured reliably.

1.4
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation 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:

Freehold land and buildings
50 years straight line
Leasehold improvements
10 years straight line or over the term of the lease
Fixtures and fittings
20% straight line
Computers
20% straight line
Motor vehicles
20% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

The directors are of the opinion that residual value of freehold property is the same as the fair value, which is the carrying value and therefore no depreciation has been provided for.

1.6
Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

ELLISDON HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 17 -
1.7
Fixed asset investments

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.8
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.9
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.10
Cash and cash equivalents

Cash and cash equivalents are basic financial assets 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. Bank overdrafts are shown within borrowings in current liabilities.

ELLISDON HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 18 -
1.11
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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 group after deducting all of its liabilities.

ELLISDON HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 19 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.12
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.13
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

ELLISDON HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 20 -
1.14
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.15
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.16
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.17
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.18
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.

ELLISDON HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 21 -
1.19
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Freehold property valuation

Freehold properties are held at their fair value. Management engagement suitably qualified experts to provide them with an estimate of the fair value of each property which is based on a number of factors including the experts knowledge of the local property markets. Management review the basis of the estimations on a frequent basis and if there are indications that there have been significant changes to the underlying assumptions previous applied, updated valuations are obtained.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Stock provisions

Provision is made for slow-moving, damaged and obsolete stock items, In assessing the level of provision required management review stock items on a line by line basis to assess age, movement and obsolescence. Management then use their knowledge and experience to assess and estimate the level of provision required in order to write down particular line items to the lower of cost and net realisable value.

3
Turnover and other revenue
2022
2021
£
£
Turnover analysed by class of business
Luxury leather and lifestyle goods
15,289,912
13,172,909
Licensing
18,110
16,900
15,308,022
13,189,809
ELLISDON HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
3
Turnover and other revenue
(Continued)
- 22 -
2022
2021
£
£
Other revenue
Interest income
1,655
119
Royalty income
1,085
9,623
Grants received
-
691,476
Rental income arising from investment properties
-
165,092

Turnover has arisen wholly from sales in the United Kingdom.

4
Operating profit
2022
2021
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses
7,360
16,386
Research and development costs
26,396
4,608
Government grants
-
(691,476)
Depreciation of owned tangible fixed assets
206,536
292,952
Depreciation of tangible fixed assets held under finance leases
37,253
17,055
Impairment of owned tangible fixed assets
1,187,262
-
Loss/(profit) on disposal of tangible fixed assets
305,645
(4,226)
Amortisation of intangible assets
-
6,952
Operating lease charges
1,390,528
407,203
5
Auditor's remuneration
2022
2021
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company's subsidiaries
37,200
27,500

The parent company's audit fees are borne by its subsidiary, Graeme Ellisdon Limited.

ELLISDON HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 23 -
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2022
2021
2022
2021
Number
Number
Number
Number
Administration
54
45
2
2
Retail
91
78
-
-
Total
145
123
2
2

Their aggregate remuneration comprised:

Group
Company
2022
2021
2022
2021
£
£
£
£
Wages and salaries
2,319,319
1,935,898
-
0
-
0
Social security costs
183,578
156,484
-
-
Pension costs
54,424
124,099
-
0
-
0
2,557,321
2,216,481
-
0
-
0
7
Interest receivable and similar income
2022
2021
£
£
Interest income
Interest on bank deposits
1,655
119
8
Interest payable and similar expenses
2022
2021
£
£
Interest on bank overdrafts and loans
187,521
137,829
Other interest on financial liabilities
10,461
-
Interest on finance leases and hire purchase contracts
7,087
3,166
Total finance costs
205,069
140,995
9
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
200,943
383,889
Adjustments in respect of prior periods
-
0
(55,349)
Total current tax
200,943
328,540
ELLISDON HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
9
Taxation
2022
2021
£
£
(Continued)
- 24 -
Deferred tax
Origination and reversal of timing differences
12,019
81,299
Changes in tax rates
-
0
(33,198)
Adjustment in respect of prior periods
-
0
(257,015)
Impairment of Freehold Property
(296,816)
-
0
Total deferred tax
(284,797)
(208,914)
Total tax (credit)/charge
(83,854)
119,626

An increase in the UK corporation tax rate from 19% to 25% (effective from 1 April 2023) was substantively enacted on 10 June 2021. The increase in the rate will apply to companies with profits over £250k. Also announced in the Budget on 3 March 2021 was the introduction of small profits rate of 19% to apply to profits under £50k with a tapered rate to apply on profits above this threshold but under £250k. Deferred tax has been provided at 25% as that is the rate that was substantially enacted at the balance sheet date.

The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:

2022
2021
£
£
(Loss)/profit before taxation
(307,562)
2,380,848
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
(58,437)
452,361
Adjustments in respect of prior years
-
0
(312,624)
Effect of change in corporation tax rate
(71,236)
(32,938)
Permanent capital allowances in excess of depreciation
17,969
(16,009)
Depreciation on assets not qualifying for tax allowances
27,850
28,836
Taxation (credit)/charge
(83,854)
119,626

In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

2022
2021
£
£
Deferred tax arising on:
Revaluation of property
-
76,520
ELLISDON HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 25 -
10
Dividends
2022
2021
Recognised as distributions to equity holders:
£
£
Interim paid
340,000
370,000
11
Tangible fixed assets
Group
Freehold land and buildings
Leasehold improvements
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost or valuation
At 1 January 2022
11,927,398
2,948,422
508,819
288,381
154,911
15,827,931
Additions
2,409,864
15,092
53,312
-
0
70,132
2,548,400
Disposals
-
0
(1,162,633)
(29,794)
(31,426)
-
0
(1,223,853)
At 31 December 2022
14,337,262
1,800,881
532,337
256,955
225,043
17,152,478
Depreciation and impairment
At 1 January 2022
-
0
1,818,952
205,716
284,592
71,180
2,380,440
Depreciation charged in the year
-
0
130,426
74,247
2,840
36,276
243,789
Impairment losses
1,187,262
-
0
-
0
-
0
-
0
1,187,262
Eliminated in respect of disposals
-
0
(863,315)
(23,467)
(31,426)
-
0
(918,208)
At 31 December 2022
1,187,262
1,086,063
256,496
256,006
107,456
2,893,283
Carrying amount
At 31 December 2022
13,150,000
714,818
275,841
949
117,587
14,259,195
At 31 December 2021
11,927,398
1,129,470
303,103
3,789
83,731
13,447,491
ELLISDON HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
11
Tangible fixed assets
(Continued)
- 26 -
Company
Freehold land and buildings
Fixtures and fittings
Total
£
£
£
Cost or valuation
At 1 January 2022
11,927,398
269,307
12,196,705
Additions
2,409,864
38,135
2,447,999
At 31 December 2022
14,337,262
307,442
14,644,704
Depreciation and impairment
At 1 January 2022
-
0
90,994
90,994
Depreciation charged in the year
-
0
56,631
56,631
Impairment losses
1,187,262
-
0
1,187,262
At 31 December 2022
1,187,262
147,625
1,334,887
Carrying amount
At 31 December 2022
13,150,000
159,817
13,309,817
At 31 December 2021
11,927,398
178,313
12,105,711

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2022
2021
2022
2021
£
£
£
£
Fixtures and fittings
3,199
9,598
-
0
-
0
Motor vehicles
114,167
166,576
-
0
-
0
117,366
176,174
-
-

Land and buildings with a carrying amount of £1,750,000 were revalued at 7 August 2017 by Brown and Lee Chartered Surveyors. Land and buildings with a carrying amount of £11,110,000 were valued on 8 March 2023 by Savills (UK). The firms are independent valuers not connected with the company and were made on the basis of fair value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties.

The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:

2022
2021
£
£
Group and company
Cost
14,085,192
11,663,300
ELLISDON HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 27 -
12
Investment property
Group
Company
2022
2022
£
£
Fair value
At 1 January 2022 and 31 December 2022
2,138,000
2,138,000

The fair value of the investment property has been arrived at on the basis of a valuation carried out at 1 August 2018 by an external valuer, Colliers International Valuation UK LLP, who are not connected with the company. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.

13
Fixed asset investments
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
19,900
19,900
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2022 and 31 December 2022
19,900
Carrying amount
At 31 December 2022
19,900
At 31 December 2021
19,900
14
Subsidiaries

Details of the company's subsidiaries at 31 December 2022 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Graeme Ellisdon Limited
Riverside House, 14 Prospect Place, Welwyn, Hertfordshire AL6 9EN
Ordinary
100.00
15
Stocks
Group
Company
2022
2021
2022
2021
£
£
£
£
Finished goods and goods for resale
3,016,410
3,099,607
-
0
-
0
ELLISDON HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 28 -
16
Debtors
Group
Company
2022
2021
2022
2021
Amounts falling due within one year:
£
£
£
£
Trade debtors
788,906
701,267
-
0
-
0
Other debtors
185,439
66,479
6,092
-
0
Prepayments and accrued income
186,213
284,678
-
0
-
0
1,160,558
1,052,424
6,092
-
Amounts falling due after more than one year:
Deferred tax asset (note 22)
211,931
228,599
-
0
-
0
Total debtors
1,372,489
1,281,023
6,092
-
17
Creditors: amounts falling due within one year
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Bank loans and overdrafts
19
292,382
322,824
131,085
177,999
Obligations under finance leases
20
48,672
46,915
-
0
-
0
Trade creditors
2,980,333
2,770,741
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
11,673,292
10,037,313
Corporation tax payable
582,317
276,081
41,430
14,592
Other taxation and social security
2,895,953
2,834,887
-
-
Deferred income
23
49,185
49,185
-
0
-
0
Other creditors
375,766
242,282
53,737
55,000
Accruals
701,021
553,315
4,000
4,000
7,925,629
7,096,230
11,903,544
10,288,904

Bank loans are secured by way of a fixed and floating charge over the assets of the company. Finance leases are secured over the asset to which the lease relates.

18
Creditors: amounts falling due after more than one year
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Bank loans and overdrafts
19
4,572,086
4,845,550
3,548,328
3,673,973
Obligations under finance leases
20
79,979
44,620
-
0
-
0
Deferred income
23
145,185
194,370
-
0
-
0
4,797,250
5,084,540
3,548,328
3,673,973
ELLISDON HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
18
Creditors: amounts falling due after more than one year
(Continued)
- 29 -

Bank loans are secured by way of a fixed and floating charge over the assets of the company. Finance leases are secured over the asset to which the lease relates.

Amounts included above which fall due after five years are as follows:
Payable by instalments
652,104
628,755
-
-
19
Loans and overdrafts
Group
Company
2022
2021
2022
2021
£
£
£
£
Bank loans
4,864,468
5,166,768
3,679,413
3,851,972
Bank overdrafts
-
0
1,606
-
0
-
0
4,864,468
5,168,374
3,679,413
3,851,972
Payable within one year
292,382
322,824
131,085
177,999
Payable after one year
4,572,086
4,845,550
3,548,328
3,673,973

The long-term loans are secured by fixed and floating charges over the assets of the group.

20
Finance lease obligations
Group
Company
2022
2021
2022
2021
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
48,672
46,915
-
0
-
0
In two to five years
79,979
44,620
-
0
-
0
128,651
91,535
-
-

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

21
Provisions for liabilities
Group
Company
2022
2021
2022
2021
£
£
£
£
Dilapidations
300,000
370,000
-
-
ELLISDON HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
21
Provisions for liabilities
(Continued)
- 30 -
Movements on provisions:
Dilapidations
Group
£
At 1 January 2022
370,000
Utilisation of provision
(70,000)
At 31 December 2022
300,000
22
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
Assets
Assets
2022
2021
2022
2021
Group
£
£
£
£
Accelerated/(decelerated) capital allowances
85,604
90,213
211,931
228,599
Revaluations
22,015
318,831
-
-
107,619
409,044
211,931
228,599
Liabilities
Liabilities
Assets
Assets
2022
2021
2022
2021
Company
£
£
£
£
Accelerated/(decelerated) capital allowances
85,604
90,213
-
-
Revaluations
22,015
318,831
-
-
107,619
409,044
-
-
Group
Company
2022
2022
Movements in the year:
£
£
Liability at 1 January 2022
180,445
409,044
Credit to profit or loss
(284,757)
(301,425)
Liability/(Asset) at 31 December 2022
(104,312)
107,619

The deferred tax balances set out above are not expected to reverse fully within the next 12 months and relate to capital allowances and revalued freehold properties.

ELLISDON HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 31 -
23
Deferred income
Group
Company
2022
2021
2022
2021
£
£
£
£
Other deferred income
194,370
243,555
-
-

Deferred income is included in the financial statements as follows:

Current liabilities
49,185
49,185
-
0
-
0
Non-current liabilities
145,185
194,370
-
0
-
0
194,370
243,555
-
-

Deferred income relates to contributions the group receives from landlords towards fit-out costs of new stores. These have been accounted for as lease incentives and are spread over the term of the lease.

24
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
54,424
124,099

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

25
Share capital
Group and company
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
20,000
20,000
20,000
20,000
26
Reserves
Revaluation reserve

This reserve represents increases in the fair value of land and buildings, net of any attributable deferred tax and depreciation. It is not distributable.

Merger reserve

Merger reserve represents the difference between the nominal value of the shares issued by the parent company in exchange for the nominal value of the shares received in its subsidiary and arises only on consolidation as the company has chosen to adopt merger accounting. It is not distributable.

Profit and loss reserves

Profit and loss reserves includes all current and prior period retained profits and losses after taxation and dividends and is distributable.

ELLISDON HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 32 -
27
Financial commitments, guarantees and contingent liabilities

The company's subsidiary, Graeme Ellisdon Limited has provided a limited guarantee of £5m in favour of the company in respect of bank borrowings. Ellisdon Holdings Limited in return, has provided an unlimited guarantee in favour of its subsidiary, Graeme Ellisdon Limited in respect of bank borrowings.

28
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2022
2021
2022
2021
£
£
£
£
Within one year
958,599
1,155,899
-
26,000
Between two and five years
2,209,761
2,347,567
-
15,173
3,168,360
3,503,466
-
41,173
Lessor

The operating leases represent leases to third parties. The leases are negotiated over terms of between 3 and 5 years and rentals are either fixed or incrementally increase over the lease term. The lessees do not have an option to purchase the property at the expiry of the lease period.

At the reporting end date the group had contracted with tenants for the following minimum lease payments:

Group
Company
2022
2021
2022
2021
£
£
£
£
Within one year
76,318
86,200
76,318
86,200
Between two and five years
100,750
115,833
100,750
115,833
177,068
202,033
177,068
202,033
29
Related party transactions
Transactions with related parties

Included within other debtors is an amount of £4,257 due from (2021: £3,180 due to) the directors.

Other information

The company has taken advantage of the exemptions available in FRS102 paragraph 33.1A not to disclose transactions with wholly owned members of the group.

30
Directors' transactions

Dividends totalling £340,000 (2021: £370,000) were paid in the year in respect of shares held by the company's directors.

ELLISDON HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 33 -
31
Cash generated from group operations
2022
2021
£
£
(Loss)/profit for the year after tax
(223,708)
2,261,222
Adjustments for:
Taxation (credited)/charged
(83,854)
119,626
Finance costs
205,069
140,995
Investment income
(1,655)
(119)
Loss/(gain) on disposal of tangible fixed assets
305,645
(4,226)
Fair value loss on investment properties
1,187,262
-
0
Amortisation and impairment of intangible assets
-
6,952
Depreciation and impairment of tangible fixed assets
243,789
310,007
Decrease in provisions
(70,000)
-
Movements in working capital:
Decrease in stocks
83,197
287,213
Increase in debtors
(102,042)
(173,885)
Increase in creditors
551,848
1,149,333
Decrease in deferred income
(49,185)
(49,185)
Cash generated from operations
2,046,366
4,047,933
32
Analysis of changes in net debt - group
1 January 2022
Cash flows
New finance leases
31 December 2022
£
£
£
£
Cash at bank and in hand
3,412,386
(1,212,997)
-
2,199,389
Bank overdrafts
(1,606)
1,606
-
-
0
3,410,780
(1,211,391)
-
2,199,389
Borrowings excluding overdrafts
(5,166,768)
302,300
-
(4,864,468)
Obligations under finance leases
(91,535)
18,416
(55,532)
(128,651)
(1,847,523)
(890,675)
(55,532)
(2,793,730)
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