Company registration number 00198641 (England and Wales)
TOYE GROUP HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
TOYE GROUP HOLDINGS LIMITED
COMPANY INFORMATION
Directors
C Toye
F Toye
Company number
00198641
Registered office
Regalia House
Newtown Road
Bedworth
Warwickshire
United Kingdom
CV12 8QR
Auditor
Azets Audit Services
2 Regan Way
Chetwynd Business Park
Chilwell
Nottingham
United Kingdom
NG9 6RZ
TOYE GROUP 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 - 30
TOYE GROUP HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2023
- 1 -

The directors present the strategic report for the year ended 30 June 2023.

Business Review

The Directors are pleased to report a significant improvement in performance during the year, with a 20% increase in turnover and 12% increase in gross profit. Relationships with key customers and suppliers remain healthy and the order book continues to grow. The Directors continue to explore their options to ensure the Group is able to return to profitability.

 

Results

The results for the year are set out in the profit and loss account on page 8.

 

Turnover for the year amounted to £5,180,899 (2022: £4,316,541) on which the group has made a loss after taxation of £640,430 (2022 - Loss of £766,053).

 

Net assets as at 30 June 2023 were £516,992 (2022: net assets of £1,081,422).

Risk and Uncertainties

As with all companies, we face risks and uncertainties that could impact on the achievement of our strategic objectives. The Board are constantly assessing the potential risks to the business, and planning or implementing effective responses to these.

 

Reliance on foreign suppliers

In order to maintain competitiveness it is necessary to source some product and components from overseas. Consequently the Group is subject to the risks associated with international trade such as inflation, currency fluctuations, foreign laws and changing government policies.

 

We try to ensure that we are not dependent on any one supplier or concentration of suppliers in a particular geographical area, and regularly visit our suppliers to maintain a good working relationship, and to ensure the quality of their production and working conditions.

Development and performance


Quality of product and service

The Group recognises that a high quality of product and service is essential to maintaining our reputation and increasing our sales. We continually monitor our operations for consistency in performance in execution, quality control and service. Training is provided at all levels to ensure that the Company’s high standards are maintained.

 

Dependence on key personnel

Our craftspeople are uniquely skilled, as are our sales and service personnel who have to acquire a great depth of knowledge to be able to effectively respond to customer enquiries.

 

The Board is aware of the need to ensure continuity of skills and knowledge in the business. The Group is involved in apprenticeship programs for both production and service disciplines.

TOYE GROUP HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 2 -

Key performance indicators

 

The directors of the Group assess performance with reference to turnover, gross profit and gross margin.

 

 

The Directors are pleased with the improved performance during 2023.

 

Going Concern

During the year the Group made a loss after taxation of £640,430 and has net assets as at 30 June 2023 of £516,992.

 

In assessing the appropriateness of the going concern assumption the Directors have reviewed detailed profit and cash flow forecasts for a period of at least 12 months from the date of sign off of these financial statements, considering all reasonably foreseeable potential scenarios and uncertainties in relation to revenue and expenditure. The Directors continue to manage debtor and creditor payments closely as required to minimise any adverse cashflow impact to the Group.

 

Positively, the Directors successfully refinanced the Group’s primary debt facility after the year end and this funding facility is now repayable in August 2025. The Directors also remain in negotiations with HMRC to agree upon a suitable time to pay arrangement in respect of PAYE & VAT arrears.

 

Whilst performance remains in line with expectations, given the ongoing impact of the challenging economic environment on both customers and supply chains, the Directors have concluded that there is a material uncertainty in respect of going concern. The Directors however remain satisfied that the market opportunities and the pipeline of orders remains sufficiently strong, in addition to potential restructuring options available, to enable the business to continue in operational existence for at least 12 months from sign off of these financial statements. As such the financial statements have been prepared on the going concern basis.

On behalf of the board

C Toye
Director
8 February 2024
TOYE GROUP HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2023
- 3 -

The directors present their annual report and financial statements for the year ended 30 June 2023.

Principal activities

The principal activity of the Company continued to be that of a holding Company. The principal activity of the Group continued to be that of marketing, selling, supply chain management and distribution, manufacturing as appropriate and procurement of identity products. This includes the manufacturing and sale of regalia (fraternal, civil and military), weaving of ribbons and narrow fabrics, ties and neckwear, screen printed products, flags, leisure wear, trophies, awards, medals, badges, cufflinks, buttons, jewellery, gold and silverware, cutlery, glassware, uniform headdress, commemorative issues and limited editions.

Results and dividends

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

No ordinary dividends were paid. 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:

T Lyle
(Resigned 7 August 2023)
C Toye
F Toye
B Toye
(Resigned 22 November 2022)
Auditor

The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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.

On behalf of the board
C Toye
Director
8 February 2024
TOYE GROUP HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2023
- 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.

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

We have audited the financial statements of Toye Group Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2023 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.

Material uncertainty 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.

 

We draw attention to Note 1.4 in the financial statements, which indicates that the Group has made a loss after taxation of £640,430 and has net liabilities as at 30 June 2023 of £102,008, in addition to a deficit of £2,353,055 on it’s profit and loss reserve.

 

The Group’s ongoing liquidity is managed through thorough close monitoring of debtor and creditor repayments. The Directors also remain in negotiations with HMRC to agree upon a suitable time to pay arrangement in respect of PAYE & VAT arrears.

 

These events or conditions, along with other matters as set forth in Note 1.4, indicate that a material uncertainty exists that may cast significant doubt on the Group’s ability to continue as a going concern.

 

Our opinion is not modified in respect of this matter.

 

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.

TOYE GROUP HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TOYE GROUP HOLDINGS LIMITED
- 6 -

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

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.

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.

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

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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.

Mr Mitesh Thakrar (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
8 February 2024
Chartered Accountants
Statutory Auditor
2 Regan Way
Chetwynd Business Park
Chilwell
Nottingham
United Kingdom
NG9 6RZ
TOYE GROUP HOLDINGS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
5,180,899
4,316,541
Cost of sales
(2,713,769)
(2,115,065)
Gross profit
2,467,130
2,201,476
Administrative expenses
(2,954,435)
(2,850,780)
Other operating income
-
22,188
Operating loss
4
(487,305)
(627,116)
Interest payable and similar expenses
7
(152,660)
(138,937)
Loss before taxation
(639,965)
(766,053)
Tax on loss
8
(465)
-
0
Loss for the financial year
24
(640,430)
(766,053)
Loss for the financial year is all attributable to the owners of the parent company.

The notes on pages 15 to 30 form part of these financial statements.

TOYE GROUP HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2023
- 9 -
2023
2022
£
£
Loss for the year
(640,430)
(766,053)
Other comprehensive income
Revaluation of tangible fixed assets
76,000
76,000
Tax relating to other comprehensive income
-
0
(19,000)
Other comprehensive income for the year
76,000
57,000
Total comprehensive income for the year
(564,430)
(709,053)
Total comprehensive income for the year is all attributable to the owners of the parent company.

The notes on pages 15 to 30 form part of these financial statements.

TOYE GROUP HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
30 JUNE 2023
30 June 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
9
3,914,036
3,973,195
Current assets
Stocks
12
805,329
923,048
Debtors
13
786,415
672,426
Cash at bank and in hand
56,230
82,844
1,647,974
1,678,318
Creditors: amounts falling due within one year
14
(4,056,140)
(1,946,634)
Net current liabilities
(2,408,166)
(268,316)
Total assets less current liabilities
1,505,870
3,704,879
Creditors: amounts falling due after more than one year
15
(207,516)
(1,842,095)
Provisions for liabilities
Deferred tax liability
18
781,362
781,362
(781,362)
(781,362)
Net assets
516,992
1,081,422
Capital and reserves
Called up share capital
20
561,938
561,938
Share premium account
21
2,677
2,677
Revaluation reserve
22
2,305,369
2,286,729
Capital redemption reserve
23
63
63
Profit and loss reserves
24
(2,353,055)
(1,769,985)
Total equity
516,992
1,081,422

The notes on pages 15 to 30 form part of these financial statements.

The financial statements were approved by the board of directors and authorised for issue on 8 February 2024 and are signed on its behalf by:
08 February 2024
C Toye
Director
TOYE GROUP HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 30 JUNE 2023
30 June 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
9
3,825,000
3,925,000
Investments
10
4,007
4,007
3,829,007
3,929,007
Current assets
-
-
Creditors: amounts falling due within one year
14
(2,148,188)
(2,148,188)
Net current liabilities
(2,148,188)
(2,148,188)
Total assets less current liabilities
1,680,819
1,780,819
Provisions for liabilities
Deferred tax liability
18
781,362
781,362
(781,362)
(781,362)
Net assets
899,457
999,457
Capital and reserves
Called up share capital
20
561,938
561,938
Share premium account
21
2,677
2,677
Revaluation reserve
22
2,305,369
2,286,729
Capital redemption reserve
23
63
63
Profit and loss reserves
24
(1,970,590)
(1,851,950)
Total equity
899,457
999,457

The notes on pages 15 to 30 form part of these financial statements.

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £176,000 (2022 - £768,033 loss).

The financial statements were approved by the board of directors and authorised for issue on 8 February 2024 and are signed on its behalf by:
08 February 2024
C Toye
Director
Company Registration No. 00198641
TOYE GROUP HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
- 12 -
Share capital
Share premium account
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
£
£
£
£
£
£
Balance at 1 July 2021
561,938
2,677
2,287,089
63
(1,061,292)
1,790,475
Year ended 30 June 2022:
Loss for the year
-
-
-
-
(766,053)
(766,053)
Other comprehensive income:
Revaluation of tangible fixed assets
-
-
76,000
-
-
76,000
Tax relating to other comprehensive income
-
-
(19,000)
-
-
0
(19,000)
Total comprehensive income
-
-
57,000
-
(766,053)
(709,053)
Transfers
-
-
(57,360)
-
57,360
-
Balance at 30 June 2022
561,938
2,677
2,286,729
63
(1,769,985)
1,081,422
Year ended 30 June 2023:
Loss for the year
-
-
-
-
(640,430)
(640,430)
Other comprehensive income:
Revaluation of tangible fixed assets
-
-
76,000
-
-
76,000
Total comprehensive income
-
-
76,000
-
(640,430)
(564,430)
Transfers
-
-
(57,360)
-
57,360
-
Balance at 30 June 2023
561,938
2,677
2,305,369
63
(2,353,055)
516,992

The notes on pages 15 to 30 form part of these financial statements.

TOYE GROUP HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
- 13 -
Share capital
Share premium account
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
£
£
£
£
£
£
Balance at 1 July 2021
561,938
2,677
2,287,089
63
(1,141,277)
1,710,490
Year ended 30 June 2022:
Loss for the year
-
-
-
-
(768,033)
(768,033)
Other comprehensive income:
Revaluation of tangible fixed assets
-
-
76,000
-
-
76,000
Tax relating to other comprehensive income
-
-
(19,000)
-
-
0
(19,000)
Total comprehensive income
-
-
57,000
-
(768,033)
(711,033)
Transfers
-
-
(57,360)
-
57,360
-
Balance at 30 June 2022
561,938
2,677
2,286,729
63
(1,851,950)
999,457
Year ended 30 June 2023:
Profit for the year
-
-
-
-
(176,000)
(176,000)
Other comprehensive income:
Revaluation of tangible fixed assets
-
-
76,000
-
-
76,000
Total comprehensive income
-
-
76,000
-
(176,000)
(100,000)
Transfers
-
-
(57,360)
-
57,360
-
Balance at 30 June 2023
561,938
2,677
2,305,369
63
(1,970,590)
899,457

The notes on pages 15 to 30 form part of these financial statements.

TOYE GROUP HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
29
53,171
(600,064)
Interest paid
(152,660)
(138,937)
Income taxes paid
(465)
-
0
Net cash outflow from operating activities
(99,954)
(739,001)
Investing activities
Purchase of tangible fixed assets
(59,269)
(25,055)
Proceeds from disposal of tangible fixed assets
-
17,001
Net cash used in investing activities
(59,269)
(8,054)
Financing activities
Repayment of borrowings
105,280
436,870
Repayment of bank loans
(10,600)
-
Payment of finance leases obligations
37,929
2,960
Net cash generated from financing activities
132,609
439,830
Net decrease in cash and cash equivalents
(26,614)
(307,225)
Cash and cash equivalents at beginning of year
82,844
390,069
Cash and cash equivalents at end of year
56,230
82,844

The notes on pages 15 to 30 form part of these financial statements.

TOYE GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
- 15 -
1
Accounting policies
Company information

Toye Group Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Regalia House, Newtown Road, Bedworth, Warwickshire, United Kingdom, CV12 8QR.

 

The group consists of Toye Group Holdings Limited and all of its subsidiaries.

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. The principal accounting policies adopted are set out below.

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.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Toye Group Holdings 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 30 June 2023. 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.

TOYE GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 16 -
1.4
Going concern

During the year the Group made a loss after taxation of £640,430 and has net assets as at 30 June 2023 of £516,992.

 

In assessing the appropriateness of the going concern assumption the Directors have reviewed detailed profit and cash flow forecasts for a period of at least 12 months from the date of sign off of these financial statements, considering all reasonably foreseeable potential scenarios and uncertainties in relation to revenue and expenditure. The Directors continue to manage debtor and creditor payments closely as required to minimise any adverse cashflow impact to the Group.

 

Positively, the Directors successfully refinanced the Group’s primary debt facility after the year end and this funding facility is now repayable in August 2025. The Directors also remain in negotiations with HMRC to agree upon a suitable time to pay arrangement in respect of PAYE & VAT arrears.

 

Whilst performance remains in line with expectations, given the ongoing impact of the challenging economic environment on both customers and supply chains, the Directors have concluded that there is a material uncertainty in respect of going concern. The Directors however remain satisfied that the market opportunities and the pipeline of orders remains sufficiently strong, in addition to potential restructuring options available, to enable the business to continue in operational existence for at least 12 months from sign off of these financial statements. As such the financial statements have been prepared on the going concern basis.

1.5
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.

1.6
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
Over 50 years
Plant and equipment
15% straight line
Fixtures and fittings
10/20% straight line
Computers
25% straight line
Motor vehicles
25% 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.

1.7
Fixed asset investments

In the parent company financial statements, investments in subsidiaries 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.

TOYE GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 17 -
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.

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.

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.

1.11
Financial instruments

The group only has financial instruments that are classed as 'Basic 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, with 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 and amounts due from group undertakings are initially measured at transaction price and are subsequently carried at amortised cost using the effective interest method 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. 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.

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.

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.

TOYE GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 18 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and are initially recognised at transaction price and 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.

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.

1.14
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.

TOYE GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 19 -
1.15
Retirement benefits

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

1.16
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.

1.17
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.

Key sources of estimation uncertainty
Revaluation of freehold land and buildings

Freehold land and buildings are carried at valuation in the financial statements. The valuation is reviewed annually by the directors with periodic valuation by external proessional valuers. Valuations were most recently conducted by a RICS certified property valuation specialist, Allsop LLP, on 10 May 2023. The process of assessing the carrying value of the freehold land and buildings inherently involves a signficant element of estimation arising from factors such as demand for development opportunities, market place trading conditions and performance by the group. The directors have assessed that the fair value of the freehold land and buildings has reduced from £3.8m at 30 June 2022 to £3m at 30 June 2023.

 

 

 

 

3
Turnover

An analysis of the group's turnover is as follows:

TOYE GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
3
Turnover
(Continued)
- 20 -
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
4,118,957
3,159,799
Rest of Europe
153,742
58,107
Rest of World
908,200
1,098,635
5,180,899
4,316,541
4
Operating loss
2023
2022
£
£
Operating loss for the year is stated after charging/(crediting):
Exchange gains
(24,931)
(15,178)
Depreciation of owned tangible fixed assets
188,286
216,612
Depreciation of tangible fixed assets held under finance leases
6,142
8,250
Profit on disposal of tangible fixed assets
-
(12,612)

 

5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
3,000
2,700
Audit of the financial statements of the company's subsidiaries
29,660
23,900
32,660
26,600
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
83
80
4
4
TOYE GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
6
Employees
(Continued)
- 21 -

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
2,028,077
1,858,025
-
0
266,745
Social security costs
190,840
191,552
-
27,709
Pension costs
50,173
41,174
-
0
6,615
2,269,090
2,090,751
-
0
301,069
7
Interest payable and similar expenses
2023
2022
£
£
Other interest on financial liabilities
152,509
142,915
Interest on finance leases and hire purchase contracts
151
(3,978)
Total finance costs
152,660
138,937
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
465
-
0

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

2023
2022
£
£
Loss before taxation
(639,965)
(766,053)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
(159,991)
(145,550)
Tax effect of expenses that are not deductible in determining taxable profit
350
285
Change in unrecognised deferred tax assets
178,501
174,017
Effect of change in corporation tax rate
(31,242)
(41,764)
Permanent capital allowances in excess of depreciation
(1,593)
(1,428)
Depreciation on assets not qualifying for tax allowances
14,440
14,440
Taxation charge
465
-
TOYE GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
8
Taxation
(Continued)
- 22 -

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:

2023
2022
£
£
Deferred tax arising on:
Revaluation of property
-
19,000

The group has tax losses to carry forward of £6,951,596 (2022: £6,451,596).

9
Tangible fixed assets
Group
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost or valuation
At 1 July 2022
3,800,000
1,389,261
180,443
144,442
82,486
5,596,632
Additions
-
0
32,110
-
0
-
0
27,159
59,269
At 30 June 2023
3,800,000
1,421,371
180,443
144,442
109,645
5,655,901
Depreciation and impairment
At 1 July 2022
-
0
1,270,768
158,336
144,441
49,892
1,623,437
Depreciation charged in the year
76,000
101,159
5,508
-
0
11,761
194,428
Revaluation
(76,000)
-
0
-
0
-
0
-
0
(76,000)
At 30 June 2023
-
0
1,371,927
163,844
144,441
61,653
1,741,865
Carrying amount
At 30 June 2023
3,800,000
49,444
16,599
1
47,992
3,914,036
At 30 June 2022
3,800,000
118,493
22,107
1
32,594
3,973,195
TOYE GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
9
Tangible fixed assets
(Continued)
- 23 -
Company
Freehold land and buildings
Plant and equipment
Total
£
£
£
Cost or valuation
At 1 July 2022 and 30 June 2023
3,800,000
513,324
4,313,324
Depreciation and impairment
At 1 July 2022
-
0
388,324
388,324
Depreciation charged in the year
76,000
100,000
176,000
Revaluation
(76,000)
-
0
(76,000)
At 30 June 2023
-
0
488,324
488,324
Carrying amount
At 30 June 2023
3,800,000
25,000
3,825,000
At 30 June 2022
3,800,000
125,000
3,925,000

The net carrying value of group tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts. The depreciation charge in respect of such assets amounted to £12,950 (2022 - £8,250) for the year.

Group
Company
2023
2022
2023
2022
£
£
£
£
Plant and equipment
24,235
-
0
-
0
-
0
Motor vehicles
43,566
23,983
-
0
-
0
67,801
23,983
-
-

At the year end the directors assessed the fair value of the land and buildings at £3,800,000 based on their experience of current realisable values and open offers received from potential purchasers.

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

TOYE GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
9
Tangible fixed assets
(Continued)
- 24 -
Freehold land and buildings
2023
2022
£
£
Group
Cost
1,170,000
1,170,000
Accumulated depreciation
(470,700)
(461,471)
Carrying value
699,300
708,529
Company
Cost
1,170,000
1,170,000
Accumulated depreciation
(470,700)
(461,471)
Carrying value
699,300
708,529
10
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
11
-
0
-
0
4,007
4,007
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 July 2022 and 30 June 2023
4,007
Carrying amount
At 30 June 2023
4,007
At 30 June 2022
4,007
11
Subsidiaries

The principal trading subsidiary undertaking during 2022 was Toye, Kenning and Spencer Limited, a company registered in England and principally trading within the United Kingdom.

 

Details of the company's subsidiaries at 30 June 2023 are as follows:

TOYE GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
11
Subsidiaries
(Continued)
- 25 -
Name of undertaking
Class of
% Held
shares held
Direct
Indirect
E Aynsley Andrews Limited
Ordinary
100.00
-
Great Occasions Ltd
Ordinary
100.00
-
H.W. Miller Ltd
Ordinary
100.00
-
TOYE & Company Limited
Ordinary
100.00
-
TOYE Kenning & Spencer (Birmingham) Limited
Ordinary
-
100.00
TOYE Kenning & Spencer (London) Limited
Ordinary
-
99.99
Benton and Johnson
Ordinary
100.00
-
Chas C. Stadden
Ordinary
100.00
-
Cornelia James Neckwear
Ordinary
99.99
0.01
E Dent & Company (Horologists)
Ordinary
99.99
0.01
Jackson and Froggatt
Ordinary
100.00
-
John Taylor (Silversmiths) Limited
Ordinary
100.00
-
John Taylor Poston & Co
Ordinary
100.00
-
KJD Jewellers
Ordinary
100.00
-
London Badge and Button Company
Ordinary
100.00
-
POBJOY (Estreham) Limited
Ordinary
100.00
-
The Regalia Shop Ltd
Ordinary
100.00
-
TOYE & Co USA
Ordinary
100.00
-
TOYE Kenning & Spencer (Bedworth) Limited
Ordinary
-
100.00
TOYE Kenning & Spencer Limited
Ordinary
100.00
-
Weston Cap
Ordinary
100.00
-
George Kenning & Sons Limited
Ordinary
-
100.00

The registered office address of all subsidiaries is Regalia House, Newtown Road, Bedworth, Warwickshire, CV12 8QR.

The company also owns the entire preference share capital of E. Dent & Company (Horologists) Limited and Cornelia James Neckwear Limited.

12
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
373,895
231,106
-
-
Work in progress
3,342
363,970
-
-
Finished goods and goods for resale
428,092
327,972
-
0
-
0
805,329
923,048
-
-
TOYE GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 26 -
13
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
631,884
596,261
-
0
-
0
Other debtors
30,258
26,149
-
0
-
0
Prepayments and accrued income
124,273
50,016
-
0
-
0
786,415
672,426
-
-

Other debtors includes amounts owed from company directors totalling £10,857 (2022: £nil).

14
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
16
10,000
50,000
-
0
-
0
Obligations under finance leases
17
51,833
9,924
-
0
-
0
Trade creditors
335,291
182,002
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
2,148,188
2,148,188
Other taxation and social security
1,543,790
1,267,892
-
-
Other creditors
2,044,120
329,513
-
0
-
0
Accruals and deferred income
71,106
107,303
-
0
-
0
4,056,140
1,946,634
2,148,188
2,148,188
15
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
16
29,400
-
0
-
0
-
0
Obligations under finance leases
17
-
0
3,980
-
0
-
0
Other borrowings
16
-
0
1,469,269
-
0
-
0
Other taxation and social security
178,116
368,846
-
0
-
0
207,516
1,842,095
-
-
TOYE GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 27 -
16
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
39,400
50,000
-
0
-
0
Other loans
-
0
1,469,269
-
0
-
0
39,400
1,519,269
-
-
Payable within one year
10,000
50,000
-
0
-
0
Payable after one year
29,400
1,469,269
-
0
-
0

Included within other creditors (due under one year) is £1,585,407 (2022 - £1,469,269 due after more than one year) secured with a Guarantee from C Toye, F Toye and a corporate guarantee by the company, and a debenture incorporating a first legal charge over the freehold properties and all present and future assets of the company in favour of Ortus Secured Finance. Interest is charged at 0.8% per month and the loan is repayable in September 2023.

 

17
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
51,833
9,924
-
0
-
0
In two to five years
-
0
3,980
-
0
-
0
51,833
13,904
-
-

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.

18
Deferred taxation

Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2023
2022
Group
£
£
Revaluations
781,362
781,362
TOYE GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
18
Deferred taxation
(Continued)
- 28 -
Liabilities
Liabilities
2023
2022
Company
£
£
Revaluations
781,362
781,362
There were no deferred tax movements in the year.

The deferred tax liability set out above is expected to reverse after more than 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

19
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
50,173
41,174

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.

20
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 25p each
2,247,750
2,247,750
561,938
561,938
21
Share premium account
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning and end of the year
2,677
2,677
2,677
2,677
22
Revaluation reserve
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning of the year
2,286,729
2,287,089
2,286,729
2,287,089
Revaluation surplus arising in the year
76,000
76,000
76,000
76,000
Deferred tax on revaluation of tangible assets
-
(19,000)
-
(19,000)
Transfer to retained earnings
(57,360)
(57,360)
(57,360)
(57,360)
At the end of the year
2,305,369
2,286,729
2,305,369
2,286,729
TOYE GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 29 -
23
Capital redemption reserve
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning and end of the year
63
63
63
63
24
Profit and loss reserves
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning of the year
(1,769,985)
(1,061,292)
(1,851,950)
(1,141,277)
Loss for the year
(640,430)
(766,053)
(176,000)
(768,033)
Transfer from revaluation reserve
57,360
57,360
57,360
57,360
At the end of the year
(2,353,055)
(1,769,985)
(1,970,590)
(1,851,950)
25
Operating lease commitments

 

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
2023
2022
2023
2022
£
£
£
£
Within one year
2,506
24,250
-
-
2,506
24,250
-
-
26
Related party transactions
Transactions with related parties

Services amounting to £24,000 (2021: £24,000) have been provided by City & Merchant Limited, a company in which T Lyle is a director. T Lyle was a director of Toye Group Holdings Limited at the time these transactions were entered into.

27
Controlling party

The ultimate controlling party is Mr C Toye.

TOYE GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 30 -
28
Contingent liability

The Directors are in the process of disclosing to HMRC errors made in respect of governmental support provided during the Covid-19 pandemic which has led to unintentional overclaims of grant income within the period. In the view of the Directors these errors are a direct consequence of conflicting information and advice received at the time regarding the processing of furlough claims. Additionally, it has been identified that VAT has historically been underdeclared on certain intergroup transactions. All known liabilities have been provided within these financial statements, however at the date of approving these financial statements it is uncertain as to whether HMRC will apply fines or penalties in respect of this voluntary disclosure. Any such charges can therefore not be estimated reliably and as such a provision has not been included within these financial statements.

29
Cash generated from/(absorbed by) group operations
2023
2022
£
£
Loss for the year after tax
(640,430)
(766,053)
Adjustments for:
Taxation charged
465
-
0
Finance costs
152,660
138,937
Gain on disposal of tangible fixed assets
-
(12,612)
Depreciation and impairment of tangible fixed assets
194,428
224,862
Movements in working capital:
Decrease/(increase) in stocks
117,719
(173,727)
(Increase)/decrease in debtors
(103,131)
87,239
Increase/(decrease) in creditors
331,460
(98,710)
Cash generated from/(absorbed by) operations
53,171
(600,064)
2023-06-302022-07-01falseCCH SoftwareCCH Accounts Production 2023.300T LyleC ToyeF ToyeB ToyeN Haynesfalse00198641bus:Consolidated2022-07-012023-06-30001986412022-07-012023-06-3000198641bus:Director22022-07-012023-06-3000198641bus:Director32022-07-012023-06-3000198641bus:Director12022-07-012023-06-3000198641bus:Director42022-07-012023-06-3000198641bus:CompanySecretary12022-07-012023-06-3000198641bus:RegisteredOffice2022-07-012023-06-3000198641bus:Consolidated2023-06-30001986412023-06-3000198641bus:Consolidated2021-07-012022-06-30001986412021-07-012022-06-3000198641core:RevaluationReservebus:Consolidated2021-07-012022-06-3000198641core:RevenueReservesInvestmentFundsOnlybus:Consolidated2021-07-012022-06-3000198641core:RevaluationReserve2021-07-012022-06-3000198641core:RetainedEarningsAccumulatedLosses2021-07-012022-06-3000198641bus:Consolidated2022-06-30001986412022-06-3000198641core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2023-06-3000198641core:PlantMachinerybus:Consolidated2023-06-3000198641core:FurnitureFittingsbus:Consolidated2023-06-3000198641core:ComputerEquipmentbus:Consolidated2023-06-3000198641core:MotorVehiclesbus:Consolidated2023-06-3000198641core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2022-06-3000198641core:PlantMachinerybus:Consolidated2022-06-3000198641core:FurnitureFittingsbus:Consolidated2022-06-3000198641core:ComputerEquipmentbus:Consolidated2022-06-3000198641core:MotorVehiclesbus:Consolidated2022-06-3000198641core:LandBuildingscore:OwnedOrFreeholdAssets2023-06-3000198641core:PlantMachinery2023-06-3000198641core:LandBuildingscore:OwnedOrFreeholdAssets2022-06-3000198641core:PlantMachinery2022-06-3000198641core:ShareCapitalbus:Consolidated2023-06-3000198641core:ShareCapitalbus:Consolidated2022-06-3000198641core:SharePremiumbus:Consolidated2023-06-3000198641core:SharePremiumbus:Consolidated2022-06-3000198641core:RevaluationReservebus:Consolidated2023-06-3000198641core:RevaluationReservebus:Consolidated2022-06-3000198641core:CapitalRedemptionReservebus:Consolidated2023-06-3000198641core:CapitalRedemptionReservebus:Consolidated2022-06-3000198641core:ShareCapital2023-06-3000198641core:ShareCapital2022-06-3000198641core:SharePremium2023-06-3000198641core:SharePremium2022-06-3000198641core:RevaluationReserve2023-06-3000198641core:RevaluationReserve2022-06-3000198641core:CapitalRedemptionReserve2023-06-3000198641core:CapitalRedemptionReserve2022-06-3000198641core:RetainedEarningsAccumulatedLosses2023-06-3000198641core:ShareCapitalbus:Consolidated2021-06-3000198641core:SharePremiumbus:Consolidated2021-06-3000198641core:CapitalRedemptionReservebus:Consolidated2021-06-3000198641core:RetainedEarningsAccumulatedLossesbus:Consolidated2021-06-3000198641core:RetainedEarningsAccumulatedLossesbus:Consolidated2022-06-3000198641core:RetainedEarningsAccumulatedLossesbus:Consolidated2023-06-3000198641core:ShareCapital2021-06-3000198641core:SharePremium2021-06-3000198641core:RevaluationReserve2021-06-3000198641core:CapitalRedemptionReserve2021-06-3000198641core:RetainedEarningsAccumulatedLosses2021-06-3000198641core:RetainedEarningsAccumulatedLosses2022-06-3000198641core:RevaluationReservebus:Consolidated2022-06-3000198641core:RevaluationReserve2022-06-3000198641bus:Consolidated2021-06-3000198641core:LandBuildingscore:OwnedOrFreeholdAssets2022-07-012023-06-3000198641core:PlantMachinery2022-07-012023-06-3000198641core:FurnitureFittings2022-07-012023-06-3000198641core:ComputerEquipment2022-07-012023-06-3000198641core:MotorVehicles2022-07-012023-06-3000198641core:UKTaxbus:Consolidated2022-07-012023-06-3000198641core:UKTaxbus:Consolidated2021-07-012022-06-3000198641core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2022-06-3000198641core:PlantMachinerybus:Consolidated2022-06-3000198641core:FurnitureFittingsbus:Consolidated2022-06-3000198641core:ComputerEquipmentbus:Consolidated2022-06-3000198641core:MotorVehiclesbus:Consolidated2022-06-3000198641bus:Consolidated2022-06-3000198641core:LandBuildingscore:OwnedOrFreeholdAssets2022-06-3000198641core:PlantMachinery2022-06-30001986412022-06-3000198641core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2022-07-012023-06-3000198641core:PlantMachinerybus:Consolidated2022-07-012023-06-3000198641core:FurnitureFittingsbus:Consolidated2022-07-012023-06-3000198641core:ComputerEquipmentbus:Consolidated2022-07-012023-06-3000198641core:MotorVehiclesbus:Consolidated2022-07-012023-06-3000198641core:MotorVehicles2023-06-3000198641core:MotorVehicles2022-06-3000198641core:Subsidiary12022-07-012023-06-3000198641core:Subsidiary22022-07-012023-06-3000198641core:Subsidiary32022-07-012023-06-3000198641core:Subsidiary42022-07-012023-06-3000198641core:Subsidiary52022-07-012023-06-3000198641core:Subsidiary62022-07-012023-06-3000198641core:Subsidiary72022-07-012023-06-3000198641core:Subsidiary82022-07-012023-06-3000198641core:Subsidiary92022-07-012023-06-3000198641core:Subsidiary102022-07-012023-06-3000198641core:Subsidiary112022-07-012023-06-3000198641core:Subsidiary122022-07-012023-06-3000198641core:Subsidiary132022-07-012023-06-3000198641core:Subsidiary142022-07-012023-06-3000198641core:Subsidiary152022-07-012023-06-3000198641core:Subsidiary162022-07-012023-06-3000198641core:Subsidiary172022-07-012023-06-3000198641core:Subsidiary182022-07-012023-06-3000198641core:Subsidiary192022-07-012023-06-3000198641core:Subsidiary202022-07-012023-06-3000198641core:Subsidiary212022-07-012023-06-3000198641core:Subsidiary222022-07-012023-06-3000198641core:CurrentFinancialInstruments2023-06-3000198641core:CurrentFinancialInstruments2022-06-3000198641core:CurrentFinancialInstrumentsbus:Consolidated2023-06-3000198641core:CurrentFinancialInstrumentsbus:Consolidated2022-06-3000198641core:WithinOneYearbus:Consolidated2023-06-3000198641core:WithinOneYearbus:Consolidated2022-06-3000198641core:CurrentFinancialInstrumentscore:WithinOneYear2023-06-3000198641core:CurrentFinancialInstrumentscore:WithinOneYear2022-06-3000198641core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2023-06-3000198641core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2022-06-3000198641core:Non-currentFinancialInstrumentscore:AfterOneYear2023-06-3000198641core:Non-currentFinancialInstrumentscore:AfterOneYear2022-06-3000198641core:Non-currentFinancialInstrumentsbus:Consolidated2023-06-3000198641core:Non-currentFinancialInstrumentsbus:Consolidated2022-06-3000198641core:Non-currentFinancialInstruments2023-06-3000198641core:Non-currentFinancialInstruments2022-06-3000198641core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2023-06-3000198641core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2022-06-3000198641core:WithinOneYear2023-06-3000198641core:WithinOneYear2022-06-3000198641core:BetweenTwoFiveYearsbus:Consolidated2023-06-3000198641core:BetweenTwoFiveYearsbus:Consolidated2022-06-3000198641core:BetweenTwoFiveYears2023-06-3000198641core:BetweenTwoFiveYears2022-06-3000198641bus:PrivateLimitedCompanyLtd2022-07-012023-06-3000198641bus:FRS1022022-07-012023-06-3000198641bus:Audited2022-07-012023-06-3000198641bus:ConsolidatedGroupCompanyAccounts2022-07-012023-06-3000198641bus:FullAccounts2022-07-012023-06-30xbrli:purexbrli:sharesiso4217:GBP