Company registration number 07732922 (England and Wales)
ALLANDALE INVESTMENTS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
ALLANDALE INVESTMENTS LIMITED
COMPANY INFORMATION
Director
A Mann
(Appointed 2 October 2023)
Secretary
A M Higgins
Company number
07732922
Registered office
79 Wayland Avenue
Brighton
UK
BN1 5JL
Auditor
Bright Grahame Murray
Emperor's Gate
114a Cromwell Road
Kensington
London
SW7 4AG
ALLANDALE INVESTMENTS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3 - 4
Independent auditor's report
5 - 8
Group statement of comprehensive income
9
Group balance sheet
10
Group statement of changes in equity
11
Company balance sheet
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 33
ALLANDALE INVESTMENTS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 1 -

The director presents the strategic report for the year ended 31 December 2022.

 

Principal activity

 

The principal activity of the company is that of an investment holding. Its results are driven by its investment in Mach 1 Couriers Limited ('Mach 1'), whose principal activity is that of the provision of courier related services.

 

Key Performance Indicators:

 

The Key Performance Indicators of the business are its Revenue and EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation), which are described in the review of the financial summary below:

 

            Revenue (£m)        EBITDA (£m)

2020            14.5            1.1

2021            16.7            1.8

2022            14.0            0.8

 

Business Review:

 

The principal activity of Mach 1 during the year was to provide a complete range of courier related services, including Sameday, Overnight, International and Temperature Controlled distribution, servicing a wide range of companies in London. Fundamental to its overall offering is the continuation of its well established Sameday delivery service, which continues to prioritise the use of sustainable vehicles, such as electric cargo-bikes, where possible.

In 2022, the business encountered significant macroeconomic and political headwinds as a result of events such as the prolonged war in Ukraine, the resulting rises to the cost of living and strike action taken by trade unions, especially those impacting services operating in London, which is the company’s primary place of business.

Despite these market challenges faced in 2022, the business continued to position itself as a leading urban logistics provider for time critical deliveries, gaining traction with new customers of a larger scale compared to prior years.

On 22 February 2023 (after the period end), the entire share capital of Mach 1 was acquired by CitySprint (UK) Limited and is now part DPDgroup which is itself owned by GeoPost SA part of Group La Poste.

The sale demonstrated the strength of Absolutely’s business, and its position as a leading operator in the London courier market. As a part of the DPDgroup and together with CitySprint, the UK’s leading same day delivery service, the business will be exceptionally well placed to deliver on the expectations and requirements of its existing and new customers.

Principal Risks:

 

Mach 1's activities expose it to some business risks, the most significant being the competitive industry in which it operates. However, the acquisition should help reduce this risk, given its national geographic coverage scale and service offering. The principal business risks, which are predominantly external, are summarised below.

 

Market Environment:

 

Mach 1 operates in a very competitive market therefore can be exposed to some of the risks relating to market pricing and the wider external economic environment which can impact client demand.

 

These risks are mitigated by an experienced team with focus on maintaining great service, competitive pricing and having strong financial disciplines to ensure the client base has a good credit history with counter measures in place.

ALLANDALE INVESTMENTS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -

Customer Churn:

 

There will always be client churn in the sector in which Mach 1 operates though this is mitigated by targeted, and strategic, new business wins. There may be potential opportunities to focus on further new business from potential distressed operations, following the impact of recent economic turmoil.

 

Liquidity Risk:

 

The company and group are disciplined and mitigates liquidity risk by managing cash generation through its operations and applying internal cash collection targets. Strong cash and cost management enables the correct levels of funding for investment back into the business.

In February 2023 and on the sale of the business to CitySprint, the business repaid its bank loans following the provision of an intercompany loan. It is therefore not reliant on its ability to repay third-party debt.

 

Credit Risk:

 

The group's principal financial assets are bank balances and cash, trade and other receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. The group also ensures that bank balances are controlled in order that sufficient funds are available to meet the business needs and has no significant concentration of credit risk, with exposure spread over a number of well-established customers with good credit history.

 

Employment Policy:

 

Mach 1 is an equal opportunities employer and is committed to working towards non-discriminatory employment and practices that advocate diversity. At the onset of 2022, the business completed a pay review across its colleague base and identified increases against a new target, which have been implemented from January 2022, to ensure that it now operates as a London Living Wage employer. Promotion and development from within are actively encouraged.

On behalf of the board

A Mann
Director
13 December 2023
ALLANDALE INVESTMENTS LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 3 -

The director presents his annual report and financial statements for the year ended 31 December 2022.

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid during the year. The director does not recommend payment of a final dividend.

Director

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

P J A Hansen
(Resigned 11 October 2023)
A Mann
(Appointed 2 October 2023)
Post reporting date events

On 23 February 2023, the company sold it investment in Mach 1 Couriers Limited to CitySprint (UK) Limited, a business owned by DPD UK, which is itself owned by GeoPost SA, part of the Group La Poste.

Auditor

The auditor, Bright Grahame Murray, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of director's responsibilities

The director is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

 

 

The director is 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. He is 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.

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.

ALLANDALE INVESTMENTS LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 4 -
Going concern

The director continues to adopt the going concern basis of accounting in preparing the financial statements. Although the group and the company have net liabilities, the company sold its investment in Mach 1 Couriers Limited in February 2023 realising gross consideration of £7.8m. Therefore the director continues to adopt the going concern basis of accounting in preparing these financial statements.

On behalf of the board
A Mann
Director
13 December 2023
ALLANDALE INVESTMENTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ALLANDALE INVESTMENTS LIMITED
- 5 -
Opinion

We have audited the financial statements of Allandale Investments Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2022 which comprise 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 director's 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 director 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 director is 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:

ALLANDALE INVESTMENTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ALLANDALE INVESTMENTS 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 director's 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 director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the parent company or to cease operations, or has 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.

ALLANDALE INVESTMENTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ALLANDALE INVESTMENTS LIMITED
- 7 -

In identifying and addressing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

 

 

 

 

 

 

 

 

Due 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, 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 fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with 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.

ALLANDALE INVESTMENTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ALLANDALE INVESTMENTS LIMITED
- 8 -

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 Davis (Senior Statutory Auditor)
For and on behalf of Bright Grahame Murray
Chartered Accountants
Statutory Auditor
Emperor's Gate
114a Cromwell Road
London
SW7 4AG
23 December 2023
ALLANDALE INVESTMENTS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022
- 9 -
2022
2021
Notes
£
£
Turnover
4
14,000,959
16,700,315
Cost of sales
(8,571,427)
(9,536,338)
Gross profit
5,429,532
7,163,977
Administrative expenses
(5,572,926)
(6,498,781)
Other operating income
21,000
21,000
Exceptional item
3
(421,413)
(93,423)
Operating (loss)/profit
7
(543,807)
592,773
Interest receivable and similar income
8
12,250
882
Interest payable and similar expenses
10
(220,608)
(224,836)
Amounts written off investments
9
620,000
-
(Loss)/profit before taxation
(132,165)
368,819
Tax on (loss)/profit
11
(86,623)
(259,938)
(Loss)/profit for the financial year
(218,788)
108,881
(Loss)/profit for the financial year is attributable to:
- Owners of the parent company
(239,880)
(124,389)
- Non-controlling interests
21,092
233,270
(218,788)
108,881
Total comprehensive income for the year is attributable to:
- Owners of the parent company
(239,880)
(124,389)
- Non-controlling interests
21,092
233,270
(218,788)
108,881
ALLANDALE INVESTMENTS LIMITED
GROUP BALANCE SHEET
AS AT 31 DECEMBER 2022
31 December 2022
- 10 -
2022
2021
Notes
£
£
£
£
Fixed assets
Goodwill
12
4,213,044
4,845,347
Other intangible assets
12
-
0
3,408
Total intangible assets
4,213,044
4,848,755
Tangible assets
13
621,041
577,600
Investments
14
-
0
2
4,834,085
5,426,357
Current assets
Debtors
16
2,497,285
3,067,460
Cash at bank and in hand
460,095
1,353,007
2,957,380
4,420,467
Creditors: amounts falling due within one year
17
(3,100,983)
(2,554,213)
Net current (liabilities)/assets
(143,603)
1,866,254
Total assets less current liabilities
4,690,482
7,292,611
Creditors: amounts falling due after more than one year
18
(8,101,678)
(10,897,307)
Provisions for liabilities
21
(511,210)
(98,922)
Net liabilities
(3,922,406)
(3,703,618)
Capital and reserves
Called up share capital
24
1
1
Profit and loss reserves
(3,848,607)
(3,608,727)
Equity attributable to owners of the parent company
(3,848,606)
(3,608,726)
Non-controlling interests
(73,800)
(94,892)
(3,922,406)
(3,703,618)
The financial statements were approved by the board of directors and authorised for issue on 13 December 2023 and are signed on its behalf by:
13 December 2023
A Mann
Director
ALLANDALE INVESTMENTS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 11 -
Share capital
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
£
£
£
£
£
Balance at 1 January 2021
1
(3,484,338)
(3,484,337)
(328,162)
(3,812,499)
Year ended 31 December 2021:
Profit and total comprehensive income
-
(124,389)
(124,389)
233,270
108,881
Balance at 31 December 2021
1
(3,608,727)
(3,608,726)
(94,892)
(3,703,618)
Year ended 31 December 2022:
Loss and total comprehensive income
-
(239,880)
(239,880)
21,092
(218,788)
Balance at 31 December 2022
1
(3,848,607)
(3,848,606)
(73,800)
(3,922,406)
ALLANDALE INVESTMENTS LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2022
31 December 2022
- 12 -
2022
2021
Notes
£
£
£
£
Fixed assets
Investments
14
6,512,528
6,512,530
Current assets
Cash at bank and in hand
34,002
555
Creditors: amounts falling due within one year
17
(793,376)
(51,077)
Net current liabilities
(759,374)
(50,522)
Total assets less current liabilities
5,753,154
6,462,008
Creditors: amounts falling due after more than one year
18
(7,011,886)
(8,055,180)
Net liabilities
(1,258,732)
(1,593,172)
Capital and reserves
Called up share capital
24
1
1
Profit and loss reserves
(1,258,733)
(1,593,173)
Total equity
(1,258,732)
(1,593,172)

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 £334,440 (2021 - £130,208 loss).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 13 December 2023 and are signed on its behalf by:
13 December 2023
A Mann
Director
Company registration number 07732922 (England and Wales)
ALLANDALE INVESTMENTS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 13 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2021
1
(1,462,965)
(1,462,964)
Year ended 31 December 2021:
Loss and total comprehensive income for the year
-
(130,208)
(130,208)
Balance at 31 December 2021
1
(1,593,173)
(1,593,172)
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
334,440
334,440
Balance at 31 December 2022
1
(1,258,733)
(1,258,732)
ALLANDALE INVESTMENTS 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
28
597,144
1,130,723
Interest paid
(220,608)
(224,836)
Income taxes paid
(292,853)
(103,016)
Net cash inflow from operating activities
83,683
802,871
Investing activities
Purchase of tangible fixed assets
(268,704)
(386,175)
Proceeds from disposal of tangible fixed assets
13,481
38,602
Proceeds from disposal of investments
620,002
-
Interest received
12,250
882
Net cash generated from/(used in) investing activities
377,029
(346,691)
Financing activities
Repayment of borrowings
(1,043,294)
138,168
Repayment of bank loans
(267,762)
(274,594)
Payment of finance leases obligations
(42,568)
(84,177)
Net cash used in financing activities
(1,353,624)
(220,603)
Net (decrease)/increase in cash and cash equivalents
(892,912)
235,577
Cash and cash equivalents at beginning of year
1,353,007
1,117,430
Cash and cash equivalents at end of year
460,095
1,353,007
ALLANDALE INVESTMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 15 -
1
Accounting policies
Company information

Allandale Investments Limited (“the company”) is a private limited company, limited by shares, domiciled and incorporated in England and Wales. The registered office is 79 Wayland Avenue, Brighton, BN1 5JL.

 

The group consists of Allandale Investments Limited and its subsidiary, Mach 1 Couriers 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 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:

 

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

ALLANDALE INVESTMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 16 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Allandale Investments Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

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.

Mach 1 Couriers Limited has been included in the group financial statements using the purchase method of accounting. Accordingly, the group profit and loss account and statement of cash flows include the results and cash flows Mach 1 Couriers Limited. The purchase consideration has been allocated to the assets and liabilities on the basis of fair value at the date of acquisition.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

As set out in the director's report, the director has assessed the risk that the company is not a going concern, with reference to its financial position and performance as discussed in the directors' report. The company sold its investment in Mach 1 Couriers Limited in February 2023 realising gross consideration of £7.8m. Furthermore the company will continue to be supported by the shareholder. As such, the director considers there to be no going concern issue.

1.5
Turnover

Revenue represents amounts derived from the provision of courier related services in the year, exclusive of Value Added Tax. Revenue is recognised in the accounting period in which the services are rendered, when the outcome of the contract can be reliably measured.

ALLANDALE INVESTMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 17 -
1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.7
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

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

Customer Databases
Over 2 to 5 years on a straight line basis
1.8
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:

Fixtures and fittings
Over 4 years on a straight line basis
Computer Equipment
Over 4 years on a straight line basis
Motor vehicles
On a 25% reducing balance basis

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.

1.9
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

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.

ALLANDALE INVESTMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 18 -

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.10
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.

1.11
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.

ALLANDALE INVESTMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 19 -
1.12
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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

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.

ALLANDALE INVESTMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 20 -
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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

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

1.13
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.

1.14
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.

ALLANDALE INVESTMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 21 -
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.

1.15
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.

1.16
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.

1.17
Retirement benefits

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

1.18
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.

ALLANDALE INVESTMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 22 -

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.

1.19
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 director is 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.

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.

Determining the useful economic lives of Intangible Fixed Assets

 

The group depreciates intangible assets over their estimated useful lives. The estimation of the useful lives of assets is based on historic performance as well as expectations about future use and therefore requires estimates and assumptions to be applied by management. The director also takes due notice of the generally accepted treatments in place within their industry when determining those useful lives.

Provision for trade debtors

 

The general economic climate has impacted businesses in numerous ways including cash flow. Customers' credit terms have been closely monitored with regular communication to support them where necessary. Provisioning for trade debtors relies upon a certain degree of estimation uncertainty however the director is satisfied that the provision in the trading subsidiary is appropriate in light of tight controls and regularly customer communication.

3
Exceptional item
2022
2021
£
£
Expenditure
Redundancy costs
1,413
93,423
Onerous lease provision
420,000
-
421,413
93,423
ALLANDALE INVESTMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 23 -
4
Turnover and other revenue
2022
2021
£
£
Turnover analysed by class of business (UK)
Provision of courier related services
14,000,959
16,700,315
2022
2021
£
£
Other significant revenue
Interest income
12,250
882
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 group and company
6,900
5,700
Audit of the financial statements of the company's subsidiaries
23,000
21,000
29,900
26,700
For other services
Taxation compliance services - parent company and subsidiary
14,430
10,945
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
Number of administrative staff
78
85
-
-
Number of management staff
2
3
-
-
Total
80
88
-
0
-
0
ALLANDALE INVESTMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
6
Employees
(Continued)
- 24 -

Their aggregate remuneration comprised:

Group
Company
2022
2021
2022
2021
£
£
£
£
Wages and salaries
2,836,817
3,264,976
-
0
-
0
Social security costs
305,085
350,704
-
-
Pension costs
59,700
60,805
-
0
-
0
3,201,602
3,676,485
-
0
-
0
7
Operating (loss)/profit
2022
2021
£
£
Operating (loss)/profit for the year is stated after charging/(crediting):
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
71,308
-
Depreciation of owned tangible fixed assets
206,568
89,468
Loss/(profit) on disposal of tangible fixed assets
5,214
(11,326)
Amortisation of intangible assets
635,711
446,029
Operating lease charges
499,745
589,475
8
Interest receivable and similar income
2022
2021
£
£
Interest income
Interest on bank deposits
-
0
697
Interest receivable from related parties
11,005
-
0
Other interest income
1,245
185
Total income
12,250
882
9
Amounts written off investments
2022
2021
£
£
Gain on disposal of investments held at fair value
620,000
-
ALLANDALE INVESTMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 25 -
10
Interest payable and similar expenses
2022
2021
£
£
Interest on bank overdrafts and loans
114,961
98,598
Other interest - related parties
103,813
113,635
Interest on finance leases and hire purchase contracts
1,834
4,056
Other interest
-
8,547
Total finance costs
220,608
224,836
11
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
97,542
231,774
Adjustments in respect of prior periods
(23,207)
(20,725)
Total current tax
74,335
211,049
Deferred tax
Origination and reversal of timing differences
12,288
48,889
Total tax charge
86,623
259,938

The actual 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
(132,165)
368,819
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
(25,111)
70,076
Tax effect of expenses that are not deductible in determining taxable profit
150,747
140,979
Tax effect of income not taxable in determining taxable profit
(3,501)
-
0
Unutilised tax losses carried forward
-
0
1,596
Amortisation on assets not qualifying for tax allowances
-
0
42,661
Other timing differences
(14,633)
8,572
Under/(over) provided in prior years
(23,207)
(20,725)
Deferred tax adjustments in respect of prior years
(817)
-
0
Deferred tax recognised at different rate
3,145
16,779
Taxation charge
86,623
259,938
ALLANDALE INVESTMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 26 -
12
Intangible fixed assets
Group
Goodwill
Customer Databases
Total
£
£
£
Cost
At 1 January 2022 and 31 December 2022
9,373,099
5,593,257
14,966,356
Amortisation and impairment
At 1 January 2022
4,527,752
5,589,849
10,117,601
Amortisation charged for the year
632,303
3,408
635,711
At 31 December 2022
5,160,055
5,593,257
10,753,312
Carrying amount
At 31 December 2022
4,213,044
-
0
4,213,044
At 31 December 2021
4,845,347
3,408
4,848,755
The company had no intangible fixed assets at 31 December 2022 or 31 December 2021.

 

13
Tangible fixed assets
Group
Fixtures and fittings
Computer Equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2022
124,324
300,516
524,803
949,643
Additions
52,931
125,650
90,123
268,704
Disposals
(8,454)
(1,665)
(34,692)
(44,811)
At 31 December 2022
168,801
424,501
580,234
1,173,536
Depreciation and impairment
At 1 January 2022
23,481
165,998
182,564
372,043
Depreciation charged in the year
42,189
62,325
102,054
206,568
Eliminated in respect of disposals
(6,340)
-
0
(19,776)
(26,116)
At 31 December 2022
59,330
228,323
264,842
552,495
Carrying amount
At 31 December 2022
109,471
196,178
315,392
621,041
At 31 December 2021
100,843
134,518
342,239
577,600
The company had no tangible fixed assets at 31 December 2022 or 31 December 2021.
ALLANDALE INVESTMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 27 -
14
Fixed asset investments
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
6,512,528
6,512,528
Unlisted investments
-
0
2
-
0
2
-
0
2
6,512,528
6,512,530
Movements in fixed asset investments
Group
Investments
£
Cost or valuation
At 1 January 2022
2
Disposals
(2)
At 31 December 2022
-
Carrying amount
At 31 December 2022
-
At 31 December 2021
2
Movements in fixed asset investments
Company
Shares in subsidiaries
Other investments
Total
£
£
£
Cost or valuation
At 1 January 2022
6,512,528
2
6,512,530
Disposals
-
(2)
(2)
At 31 December 2022
6,512,528
-
6,512,528
Carrying amount
At 31 December 2022
6,512,528
-
6,512,528
At 31 December 2021
6,512,528
2
6,512,530
15
Subsidiaries

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

Name of undertaking
Address
Nature of business
Class of
% Held
shares held
Direct
Mach 1 Couriers Limited
England & Wales
Courier service
Ordinary
73.09
ALLANDALE INVESTMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
15
Subsidiaries
(Continued)
- 28 -

Registered office addresses (all UK unless otherwise indicated):

1
23 Brownlow Mews, London, WC1N 2LA
16
Debtors
Group
Company
2022
2021
2022
2021
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,078,664
2,710,316
-
0
-
0
Corporation tax recoverable
90,392
26,016
-
0
-
0
Prepayments and accrued income
328,229
331,128
-
0
-
0
2,497,285
3,067,460
-
-

Trade debtors are stated after a provision for doubtful debts of £43,008 (2021: £172,000).

 

Prepayments include a rental deposit of £12,500 (2021: £12,500) repayable after one year.

17
Creditors: amounts falling due within one year
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Bank loans
19
1,766,377
286,601
-
0
-
0
Obligations under finance leases
20
4,931
42,702
-
0
-
0
Trade creditors
503,019
585,287
8,505
6,340
Amounts owed to group undertakings
-
0
-
0
661,005
-
0
Corporation tax payable
113,966
268,108
113,966
36,335
Other taxation and social security
468,410
685,106
-
-
Other creditors
145,277
168,867
-
0
2
Accruals and deferred income
99,003
517,542
9,900
8,400
3,100,983
2,554,213
793,376
51,077
18
Creditors: amounts falling due after more than one year
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Bank loans and overdrafts
19
1,089,792
2,837,330
-
0
-
0
Obligations under finance leases
20
-
0
4,797
-
0
-
0
Other borrowings
19
7,011,886
8,055,180
7,011,886
8,055,180
8,101,678
10,897,307
7,011,886
8,055,180
ALLANDALE INVESTMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 29 -
19
Loans and overdrafts
Group
Company
2022
2021
2022
2021
£
£
£
£
Bank loans
2,856,169
3,123,931
-
0
-
0
Loans from related parties
2,575,345
3,763,278
2,575,345
3,763,278
Other loans
4,436,541
4,291,902
4,436,541
4,291,902
9,868,055
11,179,111
7,011,886
8,055,180
Payable within one year
1,766,377
286,601
-
0
-
0
Payable after one year
8,101,678
10,892,510
7,011,886
8,055,180

Bank loans are secured by fixed charges over the assets of the company. Interest is charged at a fixed rate of 2.5% over Base Rate per annum and is being repaid on a straight line basis with annual repayments of £126,377.

 

During 2020, capital repayment holidays were agreed for a period of 12 months and the loan expiry date were additionally extended for a 12 month period. The revised loan repayment date is 24 March 2025.

 

The company refinanced an existing bank loan on 22 November 2022 for a period of 3 months. Interest is charged at 2.25% over the Base Rate per annum. This loan was repaid in full on 22 February 2023.

20
Finance lease obligations
Group
Company
2022
2021
2022
2021
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
4,931
42,702
-
0
-
0
In two to five years
-
0
4,797
-
0
-
0
4,931
47,499
-
-

Finance lease payments represent rentals payable by the company for certain motor vehicles. 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 less than 1 year. 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
Notes
£
£
£
£
Other provision
420,000
20,000
-
-
Deferred tax liabilities
23
91,210
78,922
-
0
-
0
511,210
98,922
-
0
-
0
ALLANDALE INVESTMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
21
Provisions for liabilities
(Continued)
- 30 -

The group recognised an onerous lease provision in relation to rented premises that have now been vacated and represents the best estimate of the expenditure to settle the obligation. The provision is expected to be utilised over the next two years.

Movements on provisions apart from deferred tax liabilities:
Group
£
Additional provisions in the year
420,000
22
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
59,700
60,805

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

 

Included within accruals at the balance sheet date are unpaid pension contributions of £12,950 (2021: £11,738).

 

23
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 capital allowances
92,329
83,033
-
-
Retirement benefit obligations
-
-
-
1,263
Short term timing differences
-
-
1,119
2,848
92,329
83,033
1,119
4,111
The company has no deferred tax assets or liabilities.
ALLANDALE INVESTMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
23
Deferred taxation
(Continued)
- 31 -
Group
Company
2022
2022
Movements in the year:
£
£
Liability at 1 January 2022
78,922
-
Charge to profit or loss
12,288
-
Liability at 31 December 2022
91,210
-
24
Share capital
Group and company
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary share of £1 each
1
1
1
1
25
Related party transactions

Shareholder:

 

Included in creditors falling due after more than one year are outstanding loans of £2,575,345 (2021: £3,763,278) owed to the shareholder of the parent company.

 

The initial loan from the shareholder of the parent company of £3,368,967 is interest free and repayable on demand. A further loan of £489,032 was drawn down in 2020 and attracts interest at 2% per annum. During the year, £1,189,129 of the loans was repaid.

 

Langcroft International Inc (Langcroft):

 

Included in creditors falling due after more than one year loans of £4,436,541 (2021: £4,291,902) owed to Langcroft, a company controlled by the shareholder of the parent company.

 

The initial loan from Langcroft of £4,439,017 attracts interest at 2% per annum. Further loans totalling £462,981 were drawn down in 2021 and attract interest at 2.5% per annum. During the year £17,295 of the loans was repaid.

 

G Thompson Limited (G Thompson):

 

Management fees and rent totalling £33,000 (2021: £33,000) and £150,000 (2021: £307,980) were paid to G Thompson during the year.

 

Four Seasons Ventures LLP (Four Seasons):

 

Management fees totalling £43,000 (2021: £43,000) were paid to Four Seasons during the year.

ALLANDALE INVESTMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 32 -
26
Operating lease commitments
Lessee

Lease arrangements are entered into for a period of 1 to 5 years. There are no contingent rental or purchase option clauses.

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
454,805
476,766
-
-
Between two and five years
805,542
1,641,573
-
-
In over five years
300,000
1,288,000
-
-
1,560,347
3,406,339
-
-
27
Controlling party

The ultimate controlling party is A Bazhenov.

28
Cash generated from group operations
2022
2021
£
£
(Loss)/profit for the year after tax
(218,788)
108,881
Adjustments for:
Taxation charged
86,623
259,938
Finance costs
220,608
224,836
Investment income
(12,250)
(882)
Loss/(gain) on disposal of tangible fixed assets
5,214
(11,326)
Amortisation and impairment of intangible assets
635,711
964,328
Depreciation and impairment of tangible fixed assets
206,568
126,322
Other gains and losses
(620,000)
-
Increase/(decrease) in provisions
400,000
(8,703)
Movements in working capital:
Decrease/(increase) in debtors
634,551
(411,866)
Decrease in creditors
(741,093)
(120,805)
Cash generated from operations
597,144
1,130,723
ALLANDALE INVESTMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 33 -
29
Analysis of changes in net debt - group
1 January 2022
Cash flows
31 December 2022
£
£
£
Cash at bank and in hand
1,353,007
(892,912)
460,095
Borrowings excluding overdrafts
(11,179,111)
1,311,056
(9,868,055)
Obligations under finance leases
(47,499)
42,568
(4,931)
(9,873,603)
460,712
(9,412,891)
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