IRIS Accounts Production v23.3.1.45 09288660 Board of Directors 28.2.23 1.3.22 28.2.23 28.2.23 true true false true true false false false true false Ordinary A 0.01000 Ordinary B 0.01000 Ordinary C 0.01000 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureutr:tonnesutr:kWh092886602022-02-28092886602023-02-28092886602022-03-012023-02-28092886602021-02-28092886602021-03-012022-02-28092886602022-02-2809288660ns10:Originalns15:EnglandWales2022-03-012023-02-2809288660ns14:PoundSterlingns10:Original2022-03-012023-02-2809288660ns10:Originalns10:Director12022-03-012023-02-2809288660ns10:Original2022-03-012023-02-2809288660ns10:Originalns10:Consolidated2023-02-2809288660ns10:Original2023-02-2809288660ns10:Originalns10:ConsolidatedGroupCompanyAccounts2022-03-012023-02-2809288660ns10:Originalns10:PrivateLimitedCompanyLtd2022-03-012023-02-2809288660ns10:Originalns10:Consolidatedns10:FRS1022022-03-012023-02-2809288660ns10:Originalns10:Consolidatedns10:Audited2022-03-012023-02-2809288660ns10:Originalns10:SmallCompaniesRegimeForDirectorsReport2022-03-012023-02-2809288660ns10:SmallCompaniesRegimeForAccountsns10:Original2022-03-012023-02-2809288660ns10:Originalns10:Consolidatedns10:LargeMedium-sizedCompaniesRegimeForDirectorsReport2022-03-012023-02-2809288660ns10:LargeMedium-sizedCompaniesRegimeForAccountsns10:Originalns10:Consolidated2022-03-012023-02-2809288660ns10:Originalns10:FullAccounts2022-03-012023-02-2809288660ns10:Original12022-03-012023-02-2809288660ns10:OrdinaryShareClass3ns10:Original2022-03-012023-02-2809288660ns10:Originalns10:OrdinaryShareClass42022-03-012023-02-2809288660ns10:Originalns10:OrdinaryShareClass52022-03-012023-02-2809288660ns10:Originalns10:Consolidated2022-03-012023-02-2809288660ns10:Originalns10:Director22022-03-012023-02-2809288660ns10:CompanySecretary1ns10:Original2022-03-012023-02-2809288660ns10:Originalns10:CompanySecretary22022-03-012023-02-2809288660ns10:Originalns10:RegisteredOffice2022-03-012023-02-2809288660ns10:Originalns10:Consolidated2021-03-012022-02-2809288660ns10:Original2022-02-2809288660ns10:Originalns5:CurrentFinancialInstruments2023-02-2809288660ns10:Originalns5:CurrentFinancialInstruments2022-02-2809288660ns5:ShareCapitalns10:Original2023-02-2809288660ns5:ShareCapitalns10:Original2022-02-2809288660ns10:Originalns5:SharePremium2023-02-2809288660ns10:Originalns5:SharePremium2022-02-2809288660ns10:Originalns5:CapitalRedemptionReserve2023-02-2809288660ns10:Originalns5:CapitalRedemptionReserve2022-02-2809288660ns10:Originalns5:FurtherSpecificReserve1ComponentTotalEquity2023-02-2809288660ns10:Originalns5:FurtherSpecificReserve1ComponentTotalEquity2022-02-2809288660ns10:Originalns5:RetainedEarningsAccumulatedLosses2023-02-2809288660ns10:Originalns5:RetainedEarningsAccumulatedLosses2022-02-2809288660ns5:ShareCapitalns10:Original2021-02-2809288660ns10:Originalns5:RetainedEarningsAccumulatedLosses2021-02-2809288660ns10:Originalns5:SharePremium2021-02-2809288660ns10:Originalns5:RetainedEarningsAccumulatedLosses2021-03-012022-02-2809288660ns10:Originalns5:RetainedEarningsAccumulatedLosses2022-03-012023-02-2809288660ns10:Originalns5:CapitalRedemptionReserve2021-02-2809288660ns10:Originalns5:FurtherSpecificReserve1ComponentTotalEquity2021-02-2809288660ns10:Original2021-02-2809288660ns10:Original2021-03-012022-02-2809288660ns10:Originalns5:CapitalRedemptionReserve2021-03-012022-02-2809288660ns10:Originalns5:FurtherSpecificReserve1ComponentTotalEquity2021-03-012022-02-2809288660ns10:Originalns5:CapitalRedemptionReserve2022-03-012023-02-2809288660ns10:Originalns5:FurtherSpecificReserve1ComponentTotalEquity2022-03-012023-02-2809288660ns10:Originalns5:NetGoodwill2022-03-012023-02-2809288660ns5:IntangibleAssetsOtherThanGoodwillns10:Original2022-03-012023-02-2809288660ns10:Originalns5:LeaseholdImprovements2022-03-012023-02-2809288660ns10:Originalns5:PlantMachinery2022-03-012023-02-2809288660ns10:Originalns5:FurnitureFittings2022-03-012023-02-2809288660ns10:Originalns5:MotorVehicles2022-03-012023-02-2809288660ns10:Originalns5:ComputerEquipment2022-03-012023-02-2809288660ns10:Originalns5:ComputerEquipment2022-02-2809288660ns10:Originalns5:ComputerEquipment2023-02-2809288660ns10:Originalns5:ComputerEquipment2022-02-2809288660ns10:Originalns5:CostValuation2022-02-2809288660ns10:Originalns5:CurrentFinancialInstrumentsns5:WithinOneYear2023-02-2809288660ns10:Originalns5:CurrentFinancialInstrumentsns5:WithinOneYear2022-02-2809288660ns10:Originalns5:WithinOneYear2023-02-2809288660ns10:Originalns5:WithinOneYear2022-02-2809288660ns5:BetweenOneFiveYearsns10:Original2023-02-2809288660ns5:BetweenOneFiveYearsns10:Original2022-02-2809288660ns10:Originalns5:AllPeriods2023-02-2809288660ns10:Originalns5:AllPeriods2022-02-2809288660ns5:AcceleratedTaxDepreciationDeferredTaxns10:Original2023-02-2809288660ns5:AcceleratedTaxDepreciationDeferredTaxns10:Original2022-02-2809288660ns10:Originalns5:DeferredTaxation2022-02-2809288660ns10:Originalns5:DeferredTaxation2022-03-012023-02-2809288660ns10:Originalns5:DeferredTaxation2023-02-2809288660ns10:OrdinaryShareClass3ns10:Original2023-02-2809288660ns10:Originalns10:OrdinaryShareClass42023-02-2809288660ns10:Originalns10:OrdinaryShareClass52023-02-28
REGISTERED NUMBER: 09288660 (England and Wales)














Group Strategic Report,

Report of the Directors and

Consolidated Financial Statements

for the Year Ended 28 February 2023

for

Pentagon Sport (Cheshire) Ltd

Pentagon Sport (Cheshire) Ltd (Registered number: 09288660)






Contents of the Consolidated Financial Statements
for the Year Ended 28 February 2023




Page

Company Information 1

Group Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 5

Consolidated Profit and Loss Account 9

Consolidated Other Comprehensive Income 10

Consolidated Balance Sheet 11

Company Balance Sheet 12

Consolidated Statement of Changes in Equity 13

Company Statement of Changes in Equity 14

Consolidated Cash Flow Statement 15

Notes to the Consolidated Cash Flow Statement 16

Notes to the Consolidated Financial Statements 17


Pentagon Sport (Cheshire) Ltd

Company Information
for the Year Ended 28 February 2023







DIRECTORS: M R Bischof
A Snell





SECRETARIES: Mrs K Snell
Mrs S J Bischof





REGISTERED OFFICE: Ebenezer House
Ryecroft
Newcastle-under-Lyme
Staffordshire
ST5 2BE





REGISTERED NUMBER: 09288660 (England and Wales)





AUDITORS: Thompson Wright Limited
Chartered Accountants
and Statutory Auditors
Ebenezer House
Ryecroft
Newcastle under Lyme
Staffordshire
ST5 2BE

Pentagon Sport (Cheshire) Ltd (Registered number: 09288660)

Group Strategic Report
for the Year Ended 28 February 2023

The directors present their strategic report of the company and the group for the year ended 28 February 2023.

REVIEW OF BUSINESS
Pentagon Sport (Cheshire) Limited have been committed to improving the structure and integrity of the business to create a stable foundation for us to grow. We have been concentrating on our people and investing into; new talent, training and management. We have created opportunities for senior managers to undertake both in house and external training courses to improve their key skills and drive the business forward.

This investment has been rewarded with a strong financial performance this year. Our business has grown from £10,825,619 turnover with a gross profit of 36.78% and a net profit of 10.02% to a turnover of £14,955,712 with a gross profit of 43.33% and a net profit of 14.82%.

We have also heavily invested in our manufacturing department to promote innovation and development of our in house product production. We have made capital purchases on several new machines, redesigned the layout and invested in lean six sigma manufacturing training for many of the strategic managers. This has allowed us to our increase our turnover in the manufacturing centre and use the additional capacity to take on the manufacturing for third party companies.

The board is very happy with the performance of the business and have set us targets for FY2024 to continue to grow the business in our core markets, move into new markets which align to our key skill set and to drive down cost through efficiencies and partnerships with our supply chain.

We are looking to improve our FY24 performance to 45% GP and 16% NP and are track to do so to date.

Our future investments will see us invest more into our manufacturing department, continue investing into our people and manage our pipeline and forecasting more effectively to react better to growth.

It is a fundamental objective to maintain a sustainable growth plan, and the group has taken the time during the year to focus on a wider spread of market sectors.

KEY PERFORMANCE INDICATORS
The key performance indicator detailed above is recognised as an integral part of monitoring the business, along with gross margin and net margin.

2023 2022
Turnover growth 38.15% 49.87%
Gross profit 43.33% 36.78%
Net profit 14.82% 10.02%

It is the responsibility of the commercial team to regularly monitor and review these figures and report the results and any corrective actions to the board.

The company continue to invest in research and development expenditure to develop the internal systems of the business.

The directors are happy with the company's performance against those indicators, especially during the challenges presented during recent times.


Pentagon Sport (Cheshire) Ltd (Registered number: 09288660)

Group Strategic Report
for the Year Ended 28 February 2023

PRINCIPAL RISKS AND UNCERTAINTIES
There are certain risks, which could materially and adversely impact the company's results compared to expectation. A summary of the key risks is set out below. This is not an exhaustive list of the factors that could adversely impact company profitability.

FINANCIAL INSTRUMENTS
The group uses various financial instruments; these include cash and various items, such as trade debtors and trade creditors, that arise directly from its operations.

The existence of these financial instruments exposes the company to several financial risks which are described in more detail below.

The main risks arising from the group's financial instruments are categorised as market risk, credit risk and liquidity risk. The directors review and agree policies for managing these risks and they are summarised below.

MARKET RISK
The directors are constantly monitoring both the quality and price of the products it acquires and the range of goods it supplies to minimise the market risk.

CREDIT RISK
To counteract the risk of bad debts the business has increased the use of credit checking and monitoring facilities to assess the risk to the group. If a significant risk is identified then a further review is made and where appropriate protective actions are undertaken.

LIQUIDITY RISK
The business has a very strong relationship with its bank. The group has the facilities available to meet its needs on an ongoing basis. These facilities are reviewed on a regular basis, by both the bank and the management, and are in accordance with the needs of the group.

FUTURE DEVELOPMENTS
The directors are keen to expand the core business, through organic sustainable growth, supply chain partnerships, and through strategic acquisition opportunities.

The business has a continued re-investment programme replacing equipment with newer technology to enable the group to compete in increasingly competitive markets, which is constantly reviewed in line with business opportunities.

ON BEHALF OF THE BOARD:





M R Bischof - Director


30 November 2023

Pentagon Sport (Cheshire) Ltd (Registered number: 09288660)

Report of the Directors
for the Year Ended 28 February 2023

The directors present their report with the financial statements of the company and the group for the year ended 28 February 2023.

PRINCIPAL ACTIVITY
The principal activity of the group in the year under review was that of providing playground equipment and installation.

DIVIDENDS
The total distribution of dividends for the year ended 28 February 2023 will be £ 1,134,603 .

DIRECTORS
The directors shown below have held office during the whole of the period from 1 March 2022 to the date of this report.

M R Bischof
A Snell

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS
The auditors, Thompson Wright Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





M R Bischof - Director


30 November 2023

Report of the Independent Auditors to the Members of
Pentagon Sport (Cheshire) Ltd

Qualified opinion
We have audited the financial statements of Pentagon Sport (Cheshire) Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 28 February 2023 which comprise the Consolidated Profit and Loss Account, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of 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).

We express a qualified opinion on the accompanying financial statements of the Company. Because of the significance of the matters described in the Basis for qualified opinion section of our report, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an unqualified audit opinion on these financial statements.

Basis for qualified opinion
We were not appointed as auditors of Pentagon Sport Ltd until after 28 February 2022 and thus did not observe the counting of physical stock at the beginning of the year. We were unable to satisfy ourselves by alternative means concerning the stock quantities held at 28 February 2022 which are stated in the balance sheet at £934,672. We were also unable to audit the opening balances for year due to the reasons given above.

As a result of this matter, we were unable to determine whether any adjustments might have been found necessary in respect of recorded or unrecorded stock, and the elements making up the profit and loss account and statement of changes in equity.

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

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

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

Other information
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:
- the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

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 its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Report of the Independent Auditors to the Members of
Pentagon Sport (Cheshire) Ltd


Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 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 group's and 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.

Report of the Independent Auditors to the Members of
Pentagon Sport (Cheshire) Ltd


Auditors' 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 a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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:

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of playground equipment and installation.

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment and health and safety legislation and FSC and PEFC compliance;

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

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

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

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

- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries to identify unusual transactions;
- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
- investigated the rationale behind significant or unusual transactions.

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

- agreeing financial statement disclosures to underlying supporting documentation;
- reading the minutes of meetings of those charged with governance;
- enquiring of management as to actual and potential litigation and claims; and
- reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the company's legal advisors.

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.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Report of the Independent Auditors to the Members of
Pentagon Sport (Cheshire) Ltd


Other matters which we are required to address
In the previous period the directors of the company took advantage of audit exemption under s477 of the Companies Act. Therefore the prior period financial statements were not subject to audit.

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 a Report of the Auditors 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.




Richard Thompson BA (Hons) FCA Dip PFS (Senior Statutory Auditor)
for and on behalf of Thompson Wright Limited
Chartered Accountants
and Statutory Auditors
Ebenezer House
Ryecroft
Newcastle under Lyme
Staffordshire
ST5 2BE

30 November 2023

Pentagon Sport (Cheshire) Ltd (Registered number: 09288660)

Consolidated Profit and Loss Account
for the Year Ended 28 February 2023

2023 2022
Notes £    £   

TURNOVER 3 14,955,712 10,825,619

Cost of sales 8,475,328 6,843,556
GROSS PROFIT 6,480,384 3,982,063

Administrative expenses 5,377,583 3,757,650
1,102,801 224,413

Other operating income 1,120,990 866,445
OPERATING PROFIT 5 2,223,791 1,090,858

Interest receivable and similar income 3,040 746
2,226,831 1,091,604

Interest payable and similar expenses 6 10,768 6,755
PROFIT BEFORE TAXATION 2,216,063 1,084,849

Tax on profit 7 337,696 81,618
PROFIT FOR THE FINANCIAL YEAR 1,878,367 1,003,231
Profit attributable to:
Owners of the parent 1,878,367 1,003,231

Pentagon Sport (Cheshire) Ltd (Registered number: 09288660)

Consolidated Other Comprehensive Income
for the Year Ended 28 February 2023

2023 2022
Notes £    £   

PROFIT FOR THE YEAR 1,878,367 1,003,231


OTHER COMPREHENSIVE INCOME
Purchase of own shares (76,588 ) -
Income tax relating to other comprehensive
income

-

-
OTHER COMPREHENSIVE INCOME FOR THE YEAR,
NET OF INCOME TAX

(76,588

)

-
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 1,801,779 1,003,231

Total comprehensive income attributable to:
Owners of the parent 1,801,779 1,003,231

Pentagon Sport (Cheshire) Ltd (Registered number: 09288660)

Consolidated Balance Sheet
28 February 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 10 281,614 428,922
Tangible assets 11 983,704 962,725
Investments 12 - -
1,265,318 1,391,647

CURRENT ASSETS
Stocks 13 668,424 934,672
Debtors 14 4,257,118 4,063,923
Cash at bank 2,879,971 2,168,860
7,805,513 7,167,455
CREDITORS
Amounts falling due within one year 15 2,845,933 3,013,755
NET CURRENT ASSETS 4,959,580 4,153,700
TOTAL ASSETS LESS CURRENT LIABILITIES 6,224,898 5,545,347

CREDITORS
Amounts falling due after more than one year 16 (280,400 ) (320,541 )

PROVISIONS FOR LIABILITIES 20 (229,444 ) (176,928 )
NET ASSETS 5,715,054 5,047,878

CAPITAL AND RESERVES
Called up share capital 21 200 206
Share premium 22 1,091,902 1,091,902
Capital redemption reserve 22 6 -
Other reserves 22 34,032 34,032
Retained earnings 22 4,588,914 3,921,738
SHAREHOLDERS' FUNDS 5,715,054 5,047,878

The financial statements were approved by the Board of Directors and authorised for issue on 30 November 2023 and were signed on its behalf by:





M R Bischof - Director


Pentagon Sport (Cheshire) Ltd (Registered number: 09288660)

Company Balance Sheet
28 February 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 10 - -
Tangible assets 11 25,037 21,676
Investments 12 2,211,645 2,211,645
2,236,682 2,233,321

CURRENT ASSETS
Debtors 14 2,835,114 2,988,787
Cash at bank 347,088 575,116
3,182,202 3,563,903
CREDITORS
Amounts falling due within one year 15 247,891 196,102
NET CURRENT ASSETS 2,934,311 3,367,801
TOTAL ASSETS LESS CURRENT LIABILITIES 5,170,993 5,601,122

PROVISIONS FOR LIABILITIES 20 6,259 4,118
NET ASSETS 5,164,734 5,597,004

CAPITAL AND RESERVES
Called up share capital 21 100 106
Share premium 1,091,902 1,091,902
Capital redemption reserve 6 -
Other reserves 34,032 34,032
Retained earnings 4,038,694 4,470,964
SHAREHOLDERS' FUNDS 5,164,734 5,597,004

Company's profit for the financial year 778,921 937,466

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

The financial statements were approved by the Board of Directors and authorised for issue on 30 November 2023 and were signed on its behalf by:





M R Bischof - Director


Pentagon Sport (Cheshire) Ltd (Registered number: 09288660)

Consolidated Statement of Changes in Equity
for the Year Ended 28 February 2023

Called up
share Retained Share
capital earnings premium
£    £    £   
Balance at 1 March 2021 206 3,397,907 1,091,902

Changes in equity
Dividends - (479,400 ) -
Total comprehensive income - 1,003,231 -
Balance at 28 February 2022 206 3,921,738 1,091,902

Changes in equity
Reduction in share capital (6 ) - -
Dividends - (1,134,603 ) -
Total comprehensive income - 1,801,779 -
Balance at 28 February 2023 200 4,588,914 1,091,902
Capital
redemption Other Total
reserve reserves equity
£    £    £   
Balance at 1 March 2021 - 34,032 4,524,047

Changes in equity
Dividends - - (479,400 )
Total comprehensive income - - 1,003,231
Balance at 28 February 2022 - 34,032 5,047,878

Changes in equity
Reduction in share capital 6 - -
Dividends - - (1,134,603 )
Total comprehensive income - - 1,801,779
Balance at 28 February 2023 6 34,032 5,715,054

Pentagon Sport (Cheshire) Ltd (Registered number: 09288660)

Company Statement of Changes in Equity
for the Year Ended 28 February 2023

Called up
share Retained Share
capital earnings premium
£    £    £   
Balance at 1 March 2021 106 4,012,898 1,091,902

Changes in equity
Dividends - (479,400 ) -
Total comprehensive income - 937,466 -
Balance at 28 February 2022 106 4,470,964 1,091,902

Changes in equity
Reduction in share capital (6 ) - -
Dividends - (1,134,603 ) -
Total comprehensive income - 702,333 -
Balance at 28 February 2023 100 4,038,694 1,091,902
Capital
redemption Other Total
reserve reserves equity
£    £    £   
Balance at 1 March 2021 - 34,032 5,138,938

Changes in equity
Dividends - - (479,400 )
Total comprehensive income - - 937,466
Balance at 28 February 2022 - 34,032 5,597,004

Changes in equity
Reduction in share capital 6 - -
Dividends - - (1,134,603 )
Total comprehensive income - - 702,333
Balance at 28 February 2023 6 34,032 5,164,734

Pentagon Sport (Cheshire) Ltd (Registered number: 09288660)

Consolidated Cash Flow Statement
for the Year Ended 28 February 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 2,258,142 1,669,199
Interest paid (7,808 ) (5,850 )
Interest element of hire purchase payments paid (2,960 ) (905 )
Government grants 3,000 17,625
Tax paid (43,771 ) (204,104 )
Net cash from operating activities 2,206,603 1,475,965

Cash flows from investing activities
Purchase of tangible fixed assets (289,057 ) (525,609 )
Sale of tangible fixed assets 16,707 1,000
Interest received 3,040 746
Net cash from investing activities (269,310 ) (523,863 )

Cash flows from financing activities
Loan repayments in year (50,000 ) -
Purchase of own shares (76,588 ) -
Capital repayments in year 27,234 155,628
Amount introduced by directors 7,775 -
Equity dividends paid (1,134,603 ) (479,400 )
Net cash from financing activities (1,226,182 ) (323,772 )

Increase in cash and cash equivalents 711,111 628,330
Cash and cash equivalents at beginning of year 2 2,168,860 1,540,530

Cash and cash equivalents at end of year 2 2,879,971 2,168,860

Pentagon Sport (Cheshire) Ltd (Registered number: 09288660)

Notes to the Consolidated Cash Flow Statement
for the Year Ended 28 February 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
2023 2022
£    £   
Profit before taxation 2,216,063 1,084,849
Depreciation charges 388,941 317,405
Loss/(profit) on disposal of fixed assets 9,738 (240 )
Government grants (3,000 ) (17,625 )
Finance costs 10,768 6,755
Finance income (3,040 ) (746 )
2,619,470 1,390,398
Decrease/(increase) in stocks 266,248 (518,455 )
Increase in trade and other debtors (112,570 ) (950,545 )
(Decrease)/increase in trade and other creditors (515,006 ) 1,747,801
Cash generated from operations 2,258,142 1,669,199

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 28 February 2023
28.2.23 1.3.22
£    £   
Cash and cash equivalents 2,879,971 2,168,860
Year ended 28 February 2022
28.2.22 1.3.21
£    £   
Cash and cash equivalents 2,168,860 1,540,530


3. ANALYSIS OF CHANGES IN NET FUNDS

Other
non-cash
At 1.3.22 Cash flow changes At 28.2.23
£    £    £    £   
Net cash
Cash at bank 2,168,860 711,111 2,879,971
2,168,860 711,111 2,879,971
Debt
Finance leases (155,628 ) 51,611 (78,845 ) (182,862 )
Debts falling due
within 1 year (50,000 ) - - (50,000 )
Debts falling due
after 1 year (200,000 ) 50,000 - (150,000 )
(405,628 ) 101,611 (78,845 ) (382,862 )
Total 1,763,232 812,722 (78,845 ) 2,497,109

Pentagon Sport (Cheshire) Ltd (Registered number: 09288660)

Notes to the Consolidated Financial Statements
for the Year Ended 28 February 2023

1. STATUTORY INFORMATION

Pentagon Sport (Cheshire) Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements have been prepared on a going concern basis which assumes the Group will have sufficient funds to continue to pay its debts as and when they fall due and thus continue to trade. The directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future based on its forecasts and projections. In making their assessment, the directors have considered a period of at least 12 months from the date of signing these financial statements.

Basis of consolidation
The group accounts consolidate the accounts of the group and its subsidiary at 28 February. All companies have coterminous year ends. All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation.

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Significant judgements and estimates
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believe to be reasonable under the circumstances.

Critical accounting estimates and assumptions

The company makes estimates and assumptions concerning the future. The resulting account estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

Useful economic life of tangible assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The usual economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover represents net invoiced sales of goods and services, excluding value added tax.

Revenue is recognised as the company becomes entitled to consideration for the goods and services supplied.

Turnover is attributable to the principle activity of the company which is carried out entirely within the United Kingdom.

All turnover is derived from UK customers.

Pentagon Sport (Cheshire) Ltd (Registered number: 09288660)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 28 February 2023

2. ACCOUNTING POLICIES - continued

Goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 2014, is being amortised evenly over its estimated useful life of ten years.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Improvements to property - 10% on cost
Plant and machinery - 20% on cost
Fixtures and fittings - 20% on cost
Motor vehicles - 20% on cost
Computer equipment - 33% on cost and 20% on cost

Stocks
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Profit and Loss Account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

Pentagon Sport (Cheshire) Ltd (Registered number: 09288660)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 28 February 2023

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the group.

An analysis of turnover by class of business is given below:

2023 2022
£    £   
Licensing fees 789,087 627,620
Supply & Installation 12,815,865 9,771,266
Materials 125,772 123,231
Repairs 85,034 49,810
Web shop orders 1,013,693 71,224
Other 126,261 182,468
14,955,712 10,825,619

4. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 3,839,114 2,200,292
Social security costs 378,735 215,926
Other pension costs 205,142 135,153
4,422,991 2,551,371

The average number of employees during the year was as follows:
2023 2022

Office staff 63 47
Warehouse staff 14 9
Installation staff 39 19
116 75

The average number of employees by undertakings that were proportionately consolidated during the year was 116 (2022 - 75 ) .

2023 2022
£    £   
Directors' remuneration 196,308 119,444
Directors' pension contributions to money purchase schemes 3,678 24,093

5. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2023 2022
£    £   
Hire of plant and machinery 220,302 334,867
Other operating leases 317,484 223,545
Depreciation - owned assets 197,113 156,802
Depreciation - assets on hire purchase contracts 44,520 13,295
Loss/(profit) on disposal of fixed assets 9,738 (240 )
Goodwill amortisation 147,308 147,308
Foreign exchange differences 3,627 (257 )
Auditors remuneration 21,000 -

Pentagon Sport (Cheshire) Ltd (Registered number: 09288660)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 28 February 2023

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank loan interest 7,808 5,850
Hire purchase 2,960 905
10,768 6,755

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 284,215 43,770
Prior year tax adjustment 965 (46,682 )
Total current tax 285,180 (2,912 )

Deferred tax 52,516 84,530
Tax on profit 337,696 81,618

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit before tax 2,216,063 1,084,849
Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2022 -
19 %)

421,052

206,121

Effects of:
Expenses not deductible for tax purposes 32,080 30,520
Depreciation in excess of capital allowances 41,991 3,801
Adjustments to tax charge in respect of previous periods 965 (49,335 )
R&D deduction (158,392 ) (109,489 )
Total tax charge 337,696 81,618

Tax effects relating to effects of other comprehensive income

2023
Gross Tax Net
£    £    £   
Purchase of own shares (76,588 ) - (76,588 )

8. INDIVIDUAL PROFIT AND LOSS ACCOUNT

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.


Pentagon Sport (Cheshire) Ltd (Registered number: 09288660)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 28 February 2023

9. DIVIDENDS
2023 2022
£    £   
Ordinary A shares of 1p each
Interim 213,329 149,400
Ordinary B shares of 1p each
Interim 213,328 330,000
Ordinary C shares of 1p each
Interim 314,162 -
Ordinary D shares of 1p each
Interim 314,162 -
Ordinary E shares of 1p each
Interim 8,880 -
Ordinary F shares of 1p each
Interim 8,880 -
Ordinary G shares of 1p each
Interim 10,579 -
Ordinary H shares of 1p each
Interim 10,579 -
Ordinary I shares of 1p each
Interim 40,704 -
1,134,603 479,400

10. INTANGIBLE FIXED ASSETS

Group
Goodwill
£   
COST
At 1 March 2022
and 28 February 2023 1,473,075
AMORTISATION
At 1 March 2022 1,044,153
Amortisation for year 147,308
At 28 February 2023 1,191,461
NET BOOK VALUE
At 28 February 2023 281,614
At 28 February 2022 428,922

Pentagon Sport (Cheshire) Ltd (Registered number: 09288660)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 28 February 2023

11. TANGIBLE FIXED ASSETS

Group
Improvements Fixtures
to Plant and and
property machinery fittings
£    £    £   
COST
At 1 March 2022 281,343 618,138 312,464
Additions - 31,673 74,751
Disposals - - -
At 28 February 2023 281,343 649,811 387,215
DEPRECIATION
At 1 March 2022 49,267 172,252 219,147
Charge for year 28,135 122,964 40,657
Eliminated on disposal - - -
At 28 February 2023 77,402 295,216 259,804
NET BOOK VALUE
At 28 February 2023 203,941 354,595 127,411
At 28 February 2022 232,076 445,886 93,317

Motor Computer
vehicles equipment Totals
£    £    £   
COST
At 1 March 2022 177,496 30,768 1,420,209
Additions 173,895 8,738 289,057
Disposals (27,500 ) (583 ) (28,083 )
At 28 February 2023 323,891 38,923 1,681,183
DEPRECIATION
At 1 March 2022 7,726 9,092 457,484
Charge for year 44,820 5,057 241,633
Eliminated on disposal (1,375 ) (263 ) (1,638 )
At 28 February 2023 51,171 13,886 697,479
NET BOOK VALUE
At 28 February 2023 272,720 25,037 983,704
At 28 February 2022 169,770 21,676 962,725

Pentagon Sport (Cheshire) Ltd (Registered number: 09288660)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 28 February 2023

11. TANGIBLE FIXED ASSETS - continued

Group

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Plant and Motor
machinery vehicles Totals
£    £    £   
COST
At 1 March 2022 46,200 173,930 220,130
Additions - 78,845 78,845
Disposals - (27,500 ) (27,500 )
At 28 February 2023 46,200 225,275 271,475
DEPRECIATION
At 1 March 2022 7,700 5,595 13,295
Charge for year 9,240 35,280 44,520
Eliminated on disposal - (1,375 ) (1,375 )
At 28 February 2023 16,940 39,500 56,440
NET BOOK VALUE
At 28 February 2023 29,260 185,775 215,035
At 28 February 2022 38,500 168,335 206,835

Company
Computer
equipment
£   
COST
At 1 March 2022 30,768
Additions 8,738
Disposals (583 )
At 28 February 2023 38,923
DEPRECIATION
At 1 March 2022 9,092
Charge for year 5,057
Eliminated on disposal (263 )
At 28 February 2023 13,886
NET BOOK VALUE
At 28 February 2023 25,037
At 28 February 2022 21,676

Pentagon Sport (Cheshire) Ltd (Registered number: 09288660)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 28 February 2023

12. FIXED ASSET INVESTMENTS

Company
Shares in
group
undertakings
£   
COST
At 1 March 2022
and 28 February 2023 2,211,645
NET BOOK VALUE
At 28 February 2023 2,211,645
At 28 February 2022 2,211,645


13. STOCKS

Group
2023 2022
£    £   
Stocks 630,122 558,133
Work-in-progress 38,302 376,539
668,424 934,672

14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Trade debtors 1,807,322 1,846,087 273,517 202,469
Amounts owed by group undertakings - - 420,016 705,250
Other debtors 150,456 497 - -
Tax recoverable - S455 513,596 425,196 513,596 425,196
Directors' current accounts 1,589,165 1,596,940 1,589,165 1,596,940
Prepayments 196,579 195,203 38,820 58,932
4,257,118 4,063,923 2,835,114 2,988,787

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Bank loans and overdrafts (see note 17) 50,000 50,000 - -
Hire purchase contracts (see note 18) 52,462 35,087 - -
Trade creditors 829,050 1,093,391 16,421 40,602
Tax 372,615 42,806 88,401 42,806
Social security and other taxes 131,855 97,248 21,028 19,604
VAT 456,571 222,703 95,990 78,083
Other creditors 236,691 1,088,512 12,779 11,007
Accruals and deferred income 716,689 384,008 13,272 4,000
2,845,933 3,013,755 247,891 196,102

Pentagon Sport (Cheshire) Ltd (Registered number: 09288660)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 28 February 2023

16. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Group
2023 2022
£    £   
Bank loans (see note 17) 150,000 200,000
Hire purchase contracts (see note 18) 130,400 120,541
280,400 320,541

17. LOANS

An analysis of the maturity of loans is given below:

Group
2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank loans 50,000 50,000
Amounts falling due between one and two years:
Bank loans - 1-2 years 50,000 50,000
Amounts falling due between two and five years:
Bank loans - 2-5 years 100,000 150,000

18. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group
Hire purchase contracts
2023 2022
£    £   
Net obligations repayable:
Within one year 52,462 35,087
Between one and five years 130,400 120,541
182,862 155,628

Group
Non-cancellable operating leases
2023 2022
£    £   
Within one year 328,298 242,905
Between one and five years 379,168 456,945
707,466 699,850

Pentagon Sport (Cheshire) Ltd (Registered number: 09288660)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 28 February 2023

18. LEASING AGREEMENTS - continued

Company
Non-cancellable operating leases
2023 2022
£    £   
Within one year 36,030 48,818
Between one and five years 3,701 39,731
39,731 88,549

19. SECURED DEBTS

The following secured debts are included within creditors:

Group
2023 2022
£    £   
Hire purchase contracts 182,862 155,628

Hire purchase creditors are secured on the related fixed assets.

20. PROVISIONS FOR LIABILITIES

Group Company
2023 2022 2023 2022
£    £    £    £   
Deferred tax
Accelerated capital allowances 229,444 176,928 6,259 4,118

Group
Deferred
tax
£   
Balance at 1 March 2022 176,928
Provided during year 52,516
Balance at 28 February 2023 229,444

Company
Deferred
tax
£   
Balance at 1 March 2022 4,118
Provided during year 2,141
Balance at 28 February 2023 6,259

Pentagon Sport (Cheshire) Ltd (Registered number: 09288660)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 28 February 2023

21. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
2,182 Ordinary A 1p 22 100
2,182 Ordinary B 1p 22 6
2,182 Ordinary C 1p 22 -
2,182 Ordinary D 1p 22 -
319 Ordinary G 1p 3 -
319 Ordinary H 1p 3 -
638 Ordinary I 1p 6 -
100 106

22. RESERVES

Group
Capital
Retained Share redemption Other
earnings premium reserve reserves Totals
£    £    £    £    £   

At 1 March 2022 3,921,738 1,091,902 - 34,032 5,047,672
Profit for the year 1,878,367 1,878,367
Dividends (1,134,603 ) (1,134,603 )
Purchase of own shares (76,588 ) - - - (76,588 )
Reduction of share capital - - 6 - 6
At 28 February 2023 4,588,914 1,091,902 6 34,032 5,714,854

On the 1st December 2022, the company purchased 107 Ordinary E shares from Mr U Hamid and 107 F Shares from Mrs K Hamid. On the 2nd December 2022, the company purchased a further 424 Ordinary E shares from Mr U Hamid.

23. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the years ended 28 February 2023 and 28 February 2022:

2023 2022
£    £   
A Snell
Balance outstanding at start of year 833,919 833,919
Amounts repaid - -
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 833,919 833,919

M R Bischof
Balance outstanding at start of year 746,375 746,375
Amounts repaid - -
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 746,375 746,375

Pentagon Sport (Cheshire) Ltd (Registered number: 09288660)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 28 February 2023

24. RELATED PARTY DISCLOSURES

Pentagon Sport (South) Limited

The company is related due to both shareholders Andrew Snell & Michael Bischof also being shareholders in Pentagon Sport (South) Limited.


During the year, the company received management charges from Pentagon Sport (South) Ltd of £1,376,812 (2022: £1,006,954). At the year end, £273,472 (2022: £202,424) was due from the related party.

25. PRIOR YEAR UNAUDITED

In the previous accounting period, the directors of the company took advantage of audit exemption under s477 of the Companies Act. Therefore the prior period financial statements were not subject to audit.