Company registration number 03353538 (England and Wales)
JOHN WADE (HOLDINGS) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
JOHN WADE (HOLDINGS) LIMITED
COMPANY INFORMATION
Directors
Mr J Wade
Mr B D Whitley
Mr P W Monkhouse
Secretary
Mr J Wade
Company number
03353538
Registered office
Howe Hills Farm
Morden
Sedgefield
Cleveland
TS21 2HF
Auditor
Allen Sykes Limited
5 Henson Close
South Church Enterprise Park
Bishop Auckland
Co Durham
DL14 6WA
JOHN WADE (HOLDINGS) LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 9
Statement of income and retained earnings
10
Statement of financial position
11 - 12
Statement of cash flows
13
Notes to the financial statements
14 - 25
JOHN WADE (HOLDINGS) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2023
- 1 -

The directors present the strategic report for the year ended 31 May 2023. The principal activity of the company during the year was that of a holding company.

Business Review & Key Performance Indicators

I aim to present a balanced and comprehensive review of the development and performance of the business during the year and its position at the end of the year. My review is consistent with the size, structure and operations of our business.

 

The company is a holding company which provided management services to its subsidiary companies until they were sold during the year to Ashcourt Group Limited. The company also manages a substantial portfolio of land and property assets through farming and property development.

 

I consider that the key financial performance indicators are those that communicate the financial performance and strength of the company as a whole, these being operating profit and balance sheet strength as defined by the total of shareholders' funds.

 

The operating performance produced a profit of £176,804 compared to £373,643 in 2022. Group dividends and a profit on the sale of the subsidiary companies resulted in a profit after taxation of £15,997,944. Shareholders' funds have increased significantly, due to the above sale to £24,611,653 (2022 - £9,176,709).

Business Risks & Future Development

The business environment in general continues to remain challenging with increased regulation imposing a significant burden on all businesses of this size.

 

With the risks and uncertainties in mind, I am aware that any plans for the future development of the business may be subject to unforeseen future events outside the company's control.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

JOHN WADE (HOLDINGS) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 2 -

On behalf of the board

Mr J Wade
Director
6 December 2023
JOHN WADE (HOLDINGS) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2023
- 3 -

The directors present their annual report and financial statements for the year ended 31 May 2023.

Principal activities

The principal activity of the company continued to be that of a holding company.

Results and dividends

The results for the year are set out on page 10.

Ordinary dividends were paid amounting to £563,000. The directors do not recommend payment of a further dividend.

Directors

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

Mr J Wade
Mr B D Whitley
Mr P W Monkhouse
Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of the directors' performance review and assessment of the risks and future development of the company.

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 company’s auditor 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 company’s auditor is aware of that information.

On behalf of the board
Mr J Wade
Director
6 December 2023
JOHN WADE (HOLDINGS) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MAY 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 company and of the profit or loss of the company 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 company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

JOHN WADE (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF JOHN WADE (HOLDINGS) LIMITED
- 5 -
Opinion

We have audited the financial statements of John Wade (Holdings) Limited (the 'company') for the year ended 31 May 2023 which comprise the statement of income and retained earnings, the statement of financial position, the 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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

JOHN WADE (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF JOHN WADE (HOLDINGS) LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the 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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

JOHN WADE (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF JOHN WADE (HOLDINGS) LIMITED
- 7 -

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

 

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

To address the risk of fraud through management bias and override of controls, we:

JOHN WADE (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF JOHN WADE (HOLDINGS) LIMITED
- 8 -

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

 

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

 

 

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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

Use of our report

This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.

JOHN WADE (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF JOHN WADE (HOLDINGS) LIMITED
- 9 -
Philip W Lamb FCA
Senior Statutory Auditor
For and on behalf of Allen Sykes Limited
6 December 2023
Chartered Accountants
Statutory Auditor
5 Henson Close
South Church Enterprise Park
Bishop Auckland
Co Durham
DL14 6WA
JOHN WADE (HOLDINGS) LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 MAY 2023
- 10 -
2023
2022
Notes
£
£
Turnover
3
1,050,922
972,255
Administrative expenses
(1,179,000)
(915,892)
Other operating income
304,882
317,280
Operating profit
4
176,804
373,643
Interest receivable and similar income
8
1,722,716
200,600
Gains and losses on disposal of investments
9
14,140,000
748,742
Profit before taxation
16,039,520
1,322,985
Tax on profit
10
(41,576)
(140,613)
Profit for the financial year
15,997,944
1,182,372
Retained earnings brought forward
9,166,709
8,244,337
Dividends
11
(563,000)
(260,000)
Retained earnings carried forward
24,601,653
9,166,709

The income statement has been prepared on the basis that all operations are continuing operations.

JOHN WADE (HOLDINGS) LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 MAY 2023
31 May 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
1,569,475
1,681,162
Investment property
13
6,625,335
6,591,507
Investments
14
200
10,000
8,195,010
8,282,669
Current assets
Stocks
17
6,594
4,475
Debtors
18
15,078,476
31,984
Cash at bank and in hand
2,325,700
3,320,748
17,410,770
3,357,207
Creditors: amounts falling due within one year
19
(804,500)
(2,315,116)
Net current assets
16,606,270
1,042,091
Total assets less current liabilities
24,801,280
9,324,760
Provisions for liabilities
Deferred tax liability
20
189,627
148,051
(189,627)
(148,051)
Net assets
24,611,653
9,176,709
Capital and reserves
Called up share capital
22
9,535
9,535
Capital redemption reserve
465
465
Profit and loss reserves
24,601,653
9,166,709
Total equity
24,611,653
9,176,709
JOHN WADE (HOLDINGS) LIMITED
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT
31 MAY 2023
31 May 2023
- 12 -
The financial statements were approved by the board of directors and authorised for issue on 6 December 2023 and are signed on its behalf by:
Mr J Wade
Director
Company Registration No. 03353538
JOHN WADE (HOLDINGS) LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
25
(16,049,124)
904,301
Income taxes paid
-
0
(55,448)
Net cash (outflow)/inflow from operating activities
(16,049,124)
848,853
Investing activities
Purchase of tangible fixed assets
(402,612)
(117,100)
Proceeds from disposal of tangible fixed assets
1,031,000
-
0
Purchase of investment property
(33,828)
(14,000)
Proceeds from disposal of subsidiaries
14,150,000
-
0
Proceeds from disposal of associates
(200)
-
0
Granting of loans
(850,000)
-
0
Interest received
22,716
600
Dividends received
1,700,000
200,000
Net cash generated from investing activities
15,617,076
69,500
Financing activities
Dividends paid
(563,000)
(260,000)
Net cash used in financing activities
(563,000)
(260,000)
Net (decrease)/increase in cash and cash equivalents
(995,048)
658,353
Cash and cash equivalents at beginning of year
3,320,748
2,662,395
Cash and cash equivalents at end of year
2,325,700
3,320,748
JOHN WADE (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
- 14 -
1
Accounting policies
Company information

John Wade (Holdings) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Howe Hills Farm, Morden, Sedgefield, Cleveland, TS21 2HF.

1.1
Accounting convention

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

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

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

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

Investment income comprises dividends, interest and rental income and is accounted for on a receivable basis.

1.4
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 property
2% straight line
Plant and machinery
10% straight line & 20% reducing balance
Motor vehicles
20% reducing balance
JOHN WADE (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 15 -

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 credited or charged to profit or loss.

Land is not depreciated.

1.5
Investment property

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

1.6
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

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

1.7
Impairment of fixed assets

At each reporting period end date, the company 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.

1.8
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.

1.9
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.

1.10
Financial instruments

The company 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 company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

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.

JOHN WADE (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 16 -
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 company 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 company after deducting all of its liabilities.

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.

 

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.

JOHN WADE (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 17 -
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 company’s contractual obligations expire or are discharged or cancelled.

1.11
Equity instruments

Equity instruments issued by the company 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 company.

1.12
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 income statement 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 company’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.

1.13
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.

1.14
Retirement benefits

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

1.15
Leases

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.

JOHN WADE (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 18 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’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.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Rendering of services
129,826
49,830
Grazing fees
21,096
22,425
Management charges receivable
900,000
900,000
1,050,922
972,255
2023
2022
£
£
Other revenue
Interest income
22,716
600
Dividends received
1,700,000
200,000
Rental income arising from investment properties
304,736
317,130
Other operating income
146
150
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Depreciation of owned tangible fixed assets
46,832
22,731
Profit on disposal of tangible fixed assets
(563,533)
-
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 company
2,670
3,300
JOHN WADE (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 19 -
6
Employees

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

2023
2022
Number
Number
Management staff
4
4

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
1,153,118
640,409
Social security costs
159,689
87,744
Pension costs
66,989
43,316
1,379,796
771,469
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
1,139,743
629,118
Company pension contributions to defined contribution schemes
66,211
42,643
1,205,954
671,761

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022 - 2).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
490,218
454,443
JOHN WADE (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 20 -
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
22,716
600
Income from fixed asset investments
Income from shares in group undertakings
1,700,000
200,000
Total income
1,722,716
200,600
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
22,716
600
9
Fair value gains and losses
2023
2022
£
£
Changes in the fair value of investment properties
-
748,742
Gains and losses on disposals of subsidiaries
14,140,000
-
14,140,000
748,742
10
Taxation
2023
2022
£
£
Deferred tax
Origination and reversal of timing differences
41,576
140,613
JOHN WADE (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
10
Taxation
(Continued)
- 21 -

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

2023
2022
£
£
Profit before taxation
16,039,520
1,322,985
Expected tax charge based on the standard rate of corporation tax in the UK of 20.00% (2022: 19.00%)
3,207,904
251,367
Tax effect of expenses that are not deductible in determining taxable profit
26,978
-
0
Gains not taxable
(2,875,562)
-
0
Group relief
-
0
(74,336)
Permanent capital allowances in excess of depreciation
6,434
-
0
Depreciation on assets not qualifying for tax allowances
-
0
1,582
Effect of revaluations of investment property
15,822
-
0
Dividend income
(340,000)
(38,000)
Taxation charge for the year
41,576
140,613
11
Dividends
2023
2022
£
£
Final paid
563,000
260,000
JOHN WADE (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 22 -
12
Tangible fixed assets
Freehold property
Plant and machinery
Motor vehicles
Total
£
£
£
£
Cost
At 1 June 2022
1,817,577
33,301
52,000
1,902,878
Additions
15,517
279,512
107,583
402,612
Disposals
(460,000)
(7,467)
-
0
(467,467)
At 31 May 2023
1,373,094
305,346
159,583
1,838,023
Depreciation and impairment
At 1 June 2022
182,927
30,122
8,667
221,716
Depreciation charged in the year
10,400
18,801
17,631
46,832
At 31 May 2023
193,327
48,923
26,298
268,548
Carrying amount
At 31 May 2023
1,179,767
256,423
133,285
1,569,475
At 31 May 2022
1,634,650
3,179
43,333
1,681,162

Included in freehold land and buildings is £849,736 in respect of freehold land.

13
Investment property
2023
£
Fair value
At 1 June 2022
6,591,507
Additions
33,828
At 31 May 2023
6,625,335

The fair value of the investment property was assessed by the directors based on rental yield and insurance valuations.

14
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
15
-
0
10,000
Investments in associates
16
200
-
0
200
10,000
JOHN WADE (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
14
Fixed asset investments
(Continued)
- 23 -
Movements in fixed asset investments
Shares in subsidiaries and associates
£
Cost or valuation
At 1 June 2022
10,000
Additions
200
Disposals
(10,000)
At 31 May 2023
200
Carrying amount
At 31 May 2023
200
At 31 May 2022
10,000
15
Subsidiaries

The company sold its ordinary shares in both Stonegrave Aggregates Limited and John Wade (Haulage) Limited (both wholly owned subsidiaries in the previous year) in the year leaving no shares held in subsidiary companies at the year end.

16
Associates

At 31 May 2023, the company held 50% of the ordinary shares of both its associate companies, Enterprise House Darlington Limited and Enterprise House Darlington Management Company Limited (both being registered at 108 Newgate Street, Bishop Auckland, Co Durham, DL14 7EQ).

17
Stocks
2023
2022
£
£
Raw materials and consumables
6,594
4,475
18
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
21,428
13,052
Other debtors
15,033,731
240
Prepayments and accrued income
23,317
18,692
15,078,476
31,984
JOHN WADE (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 24 -
19
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
77,305
17,952
Amounts owed to group undertakings
-
0
2,219,996
Taxation and social security
42,210
47,210
Other creditors
15,708
8,969
Accruals and deferred income
669,277
20,989
804,500
2,315,116
20
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
63,188
5,790
Investment property
126,439
142,261
189,627
148,051
2023
Movements in the year:
£
Liability at 1 June 2022
148,051
Charge to profit or loss
41,576
Liability at 31 May 2023
189,627
21
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
66,989
43,316

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.

22
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
9,535
9,535
9,535
9,535
JOHN WADE (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
22
Share capital
(Continued)
- 25 -
23
Events after the reporting date

The company paid a dividend totalling £450,000 on 27 July 2023 and £600,000 on 13 September 2023.

24
Related party transactions

Included in turnover are sales totalling £21,096 made to Stonegrave Aggregates Limited. Also included in turnover are management charges receivable of £600.000 and £300,000 from Stongrave Aggregates Limited and John Wade (Haulage) Limited respectively. Included in interest receivable and similar income are dividends receivable of £1,700,000 from Stonegrave Aggregates Limited.

 

Stonegrave Aggregates Limited and John Wade (Haulage) Limited were wholly owned subsidiaries of John Wade (Holdings) Limited until 31 May 2023.

25
Cash (absorbed by)/generated from operations
2023
2022
£
£
Profit for the year after tax
15,997,944
1,182,372
Adjustments for:
Taxation charged
41,576
140,613
Investment income
(1,722,716)
(200,600)
Gain on disposal of tangible fixed assets
(563,533)
-
Fair value gain on investment properties
-
0
(748,742)
Depreciation and impairment of tangible fixed assets
46,832
22,731
Other gains and losses
(14,140,000)
-
Movements in working capital:
Increase in stocks
(2,119)
(3,684)
Increase in debtors
(14,196,492)
(2,689)
(Decrease)/increase in creditors
(1,510,616)
514,300
Cash (absorbed by)/generated from operations
(16,049,124)
904,301
26
Analysis of changes in net funds
1 June 2022
Cash flows
31 May 2023
£
£
£
Cash at bank and in hand
3,320,748
(995,048)
2,325,700
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