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Registered number: 00249950









EASTERN COUNTIES LAUNDRIES LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

 
EASTERN COUNTIES LAUNDRIES LIMITED
 
 
COMPANY INFORMATION


Directors
K J Bueggeln (appointed 1 September 2022)
O T Moore 
T W Moore 
W M D Moore (resigned 14 January 2024)




Registered number
00249950



Registered office
28 Robjohns Road
Widford Industrial Estate

Chelmsford

Essex

CM1 3AF




Independent auditors
Donald Reid Limited
Chartered Accountants and Statutory Auditors

Prince Albert House

18a/20 King Street

Maidenhead

Berkshire

SL6 1EF





 
EASTERN COUNTIES LAUNDRIES LIMITED
 

CONTENTS



Page
Strategic Report
1 - 2
Directors' Report
3 - 4
Independent Auditors' Report
5 - 8
Statement of Comprehensive Income
9
Balance Sheet
10
Statement of Changes in Equity
11 - 12
Statement of Cash Flows
13 - 14
Analysis of Net Debt
15
Notes to the Financial Statements
16 - 36


 
EASTERN COUNTIES LAUNDRIES LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023

Introduction
 
The principal activity of the company continues to be the provision of linen and workwear rental and laundry services into London and throughout the South-East of the UK. These services are delivered 24/7 to satisfy the customer needs.

Business review
 
During this latest year ended 31 March 2023, it has been encouraging to see the level of sales recovery particularly whilst the company has remained affected by the global pandemic. 
The company has managed to navigate these challenges and retain market position and provided a healthy platform for growth in the underlying medium to long term strategy.
The current financial reporting period is 1 April 2022 to 31 March 2023 with the previous period, being a 6-month period thus comparatives are not entirely comparable. 
Turnover for the year stands at £20.2m and the company has worked hard to mitigate the effect of the National Living Wage (NLW) and COVID on company costs. Gross Profit is now £3m providing a pre-tax profit of £0.38m.
During this period of reporting, the effects of Covid-19 were significantly reduced compared to the previous reporting period. However, the underlying effects of the pandemic and now a cost-of-living crisis can be seen within the reporting period.
The operating environment is still significantly more difficult than pre-COVID, with the sourcing of all key resources, including recruitment, engagement and retention of staff, proving challenging. Alongside these sourcing challenges, cost inflation has played its part in the profitability of the business in the year.

Page 1

 
EASTERN COUNTIES LAUNDRIES LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023

Principal risks and uncertainties
 
The principal trading risks facing the business are the sourcing of textiles, a suitable workforce, continuing cost pressures and a further cost of living crisis impacting our customer demand.
Due to the nature of the financial instruments used by the company, there is no real exposure to price risk fluctuations. The company’s approach to managing other risks applicable to the financial instruments concerned is as set out below.
The company’s principal financial instruments and working capital components comprise bank balances, bank overdrafts (when needed and appropriate), trade debtors, trade creditors, loans to the company and finance lease agreements. The main purpose of the instruments is to raise funds for the company’s operations and expansion and to provide ongoing working capital.
The company has in place the following measures in order to manage financial risks arising from these financial instruments:
 •In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of  
  funding and flexibility through the use of bank loans and overdrafts, again where needed and appropriate, and 
  finance at floating rates of interest.
 •In respect of loans, these comprise loans from financial institutions. The interest rate on the loans are variable 
  and the company manages the liquidity risk by ensuring there are sufficient funds to meet the repayments as 
  they fall due. The current volatility in terms of open market interest rates is monitored closely in the context of 
  its impact on the company finance arrangements.
 •The company uses finance leases to assist in the purchase of some fixed assets. The liquidity risk is managed 
  in the same manner as for the loans above.
 •Trade debtors are managed in terms of credit and cash flow risk, by regularly reviewing credit terms given to 
  customers and strict controls over the collection procedure.
 •Trade creditor liquidity risk is managed in the same way as the loans above and is constantly monitored.

Financial key performance indicators
 
The company uses real time KPI monitoring across both its sites as well as having an appropriate set of commercial, operational, compliance and financial related KPIs for monthly management review. Turnover and gross margin, being the main KPI's, are disclosed under Introduction above.

Other key performance indicators
 
There are no other key performance indicators other than those already disclosed above.


This report was approved by the board on 5 February 2024 and signed on its behalf.



K J Bueggeln
Director

Page 2

 
EASTERN COUNTIES LAUNDRIES LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023

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

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments 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 transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The profit for the year, after taxation, amounted to £379,385 (2022 - loss £812,113).

Dividends of £nil (2022: £nil) were paid in the year. However dividends in specie of £824,000 were declared in the year in relation to property transfers which took place in the year to the parent company, Moore Bros Holdings Limited.

Directors

The directors who served during the year were:

K J Bueggeln (appointed 1 September 2022)
O T Moore 
T W Moore 
W M D Moore (resigned 14 January 2024)

Page 3

 
EASTERN COUNTIES LAUNDRIES LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023

Future developments

The company is reliant upon hospitality within the region it serves and believes demand will remain despite the current cost of living crisis. 
The board of directors remain confident about the future. The business has two modern and flexible facilities, which in turn provide a strong platform to quickly adapt to market requirements and so there is a reasonable optimism about the return to, and growth beyond, historic levels of trade and performance over the coming years.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

After year end, a registration of a fixed charge occurred on 21 June 2023 between the company and Together Commercial Finance Limited, who now holds security over the freehold property known as 31 Robjohns Road, Chelmsford, CM1 3AF.
After year end, Eastern Counties Laundries Limited was still in the process of selling a property to Moore Bros Holdings Limited at its current market value. 
A portion of the 30 West Street, Coggeshall CO6 1NS property is still currently in the process of being sold. The carrying value is £350k at March 2023 and is included in Investment Property. At the signing date of these accounts, the sale has not yet been finalised.
During the year, Eastern Counties Laundries Limited invested costs of approximately £0.5mil which is included in Tangible fixed assets above, and a further £0.3mil has been invested after year end into expanding its factory facility at 31 Robjohns Road in Chelmsford, with it being completed in May 2023. To support this expansion of operations the company obtained a loan facility of £1.5mil in June 2023.

Auditors

The auditorsDonald Reid Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 5 February 2024 and signed on its behalf.
 





K J Bueggeln
Director

Page 4

 
EASTERN COUNTIES LAUNDRIES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EASTERN COUNTIES LAUNDRIES LIMITED
 

Opinion


We have audited the financial statements of Eastern Counties Laundries Limited (the 'Company') for the year ended 31 March 2023, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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:


give a true and fair view of the state of the Company's affairs as at 31 March 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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.


Page 5

 
EASTERN COUNTIES LAUNDRIES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EASTERN COUNTIES LAUNDRIES LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Opinion 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 Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report 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 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:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the 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.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, 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.


Page 6

 
EASTERN COUNTIES LAUNDRIES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EASTERN COUNTIES LAUNDRIES LIMITED (CONTINUED)


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 an Auditors' 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:

• enquiring of management concerning actual and potential litigation claims;
• performing analytical procedures to identify any unusual results that may indicate risks of material
          misstatement due to fraud;
• reading minutes of meetings;
• assessing any management override of controls by testing journal entries and other adjustments and
          reviewing accounting estimates for indications of potential bias;
• evaluating any transactions that are unusual or outside the normal course of business; and
• maintaining alert to any fraud risks throughout the audit. 
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


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 Auditors' Report.


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.


Page 7

 
EASTERN COUNTIES LAUNDRIES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EASTERN COUNTIES LAUNDRIES LIMITED (CONTINUED)





Daniel Reid FCA (Senior Statutory Auditor)
  
for and on behalf of
Donald Reid Limited
 
Chartered Accountants and Statutory Auditors
  
Prince Albert House
18a/20 King Street
Maidenhead
Berkshire
SL6 1EF

5 February 2024
Page 8

 
EASTERN COUNTIES LAUNDRIES LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023

1 April 2022 - 31 March 2023
1 October 2021 - 31 March 2022
Note
£
£

  

Turnover
 4 
20,206,931
7,336,658

Cost of sales
  
(17,233,206)
(6,770,322)

Gross profit
  
2,973,725
566,336

Distribution costs
  
(210,140)
(110,829)

Administrative expenses
  
(2,282,401)
(1,403,848)

Other operating income
 5 
114,055
72,086

Fair value movements
 16 
(115,000)
90,000

Operating profit/(loss)
 6 
480,239
(786,255)

Interest receivable and similar income
 10 
1,115
240

Interest payable and similar expenses
 11 
(101,969)
(26,098)

Profit/(loss) before tax
  
379,385
(812,113)

Profit/(loss) for the financial year
  
379,385
(812,113)

Other comprehensive income for the year
  

Unrealised (deficit)/surplus on revaluation of tangible fixed assets
  
(126,590)
751,677

Other comprehensive income for the year
  
(126,590)
751,677

Total comprehensive income for the year
  
252,795
(60,436)

The notes on pages 16 to 36 form part of these financial statements.

Page 9

 
EASTERN COUNTIES LAUNDRIES LIMITED
REGISTERED NUMBER: 00249950

BALANCE SHEET
AS AT 31 MARCH 2023

As restated
2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 14 
10,388,449
8,491,463

Investments
 15 
6,810
11,810

Investment property
 16 
785,000
1,575,000

  
11,180,259
10,078,273

Current assets
  

Debtors: amounts falling due within one year
 17 
3,130,415
2,327,431

Cash at bank and in hand
 18 
662,567
903,428

  
3,792,982
3,230,859

Creditors: amounts falling due within one year
 19 
(6,384,352)
(4,301,119)

Net current liabilities
  
 
 
(2,591,370)
 
 
(1,070,260)

Total assets less current liabilities
  
8,588,889
9,008,013

Creditors: amounts falling due after more than one year
 20 
(1,338,981)
(1,186,900)

  

Net assets
  
7,249,908
7,821,113


Capital and reserves
  

Called up share capital 
 25 
12,209
12,209

Revaluation reserve
 26 
1,909,205
2,187,398

Capital redemption reserve
 26 
34,811
34,811

Other reserves
 26 
210,000
210,000

Profit and loss account
 26 
5,083,683
5,376,695

  
7,249,908
7,821,113


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 5 February 2024.


K J Bueggeln
Director

The notes on pages 16 to 36 form part of these financial statements.

Page 10

 

 
EASTERN COUNTIES LAUNDRIES LIMITED


 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023



Called up share capital
Capital redemption reserve
Revaluation reserve
Other reserves
Profit and loss account
Total equity


£
£
£
£
£
£


At 1 April 2022
12,209
34,811
2,187,398
210,000
5,376,695
7,821,113



Comprehensive income for the year


Profit for the year

-
-
-
-
379,385
379,385


Deficit on revaluation of freehold property
-
-
(126,590)
-
-
(126,590)


Revaluation realisation of tangible assets
-
-
(151,603)
-
151,603
-



Other comprehensive income for the year
-
-
(278,193)
-
151,603
(126,590)



Total comprehensive income for the year
-
-
(278,193)
-
530,988
252,795



Contributions by and distributions to owners


Dividends in specie
-
-
-
-
(824,000)
(824,000)



At 31 March 2023
12,209
34,811
1,909,205
210,000
5,083,683
7,249,908



The notes on pages 16 to 36 form part of these financial statements.

Page 11

 

 
EASTERN COUNTIES LAUNDRIES LIMITED


 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2022



Called up share capital
Capital redemption reserve
Revaluation reserve
Other reserves
Profit and loss account
Total equity


£
£
£
£
£
£


At 1 October 2021
12,209
34,811
4,262,171
210,000
3,362,358
7,881,549



Comprehensive income for the period


Loss for the period

-
-
-
-
(812,113)
(812,113)


Surplus on revaluation of freehold property
-
-
751,677
-
-
751,677


Revaluation realisation of tangible assets (as restated)
-
-
(2,826,450)
-
2,826,450
-



Other comprehensive income for the period
-
-
(2,074,773)
-
2,826,450
751,677



Total comprehensive income for the period
-
-
(2,074,773)
-
2,014,337
(60,436)



At 31 March 2022 (as restated)
12,209
34,811
2,187,398
210,000
5,376,695
7,821,113



The notes on pages 16 to 36 form part of these financial statements.

Page 12

 
EASTERN COUNTIES LAUNDRIES LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023


 

2023
2022
£
£

 


Cash flows from operating activities

Profit/(loss) for the financial year
379,385
(812,113)

Adjustments for:

Depreciation of tangible assets
1,662,298
779,362

Loss on disposal of tangible assets
(5,191)
(10,000)

Interest paid
101,969
26,098

Interest received
(1,115)
(240)

Decrease in stocks
-
25,961

(Increase)/decrease in debtors
(920,720)
433,719

Decrease in amounts owed by groups
-
4,585

Increase in creditors
534,834
313,644

Increase in amounts owed to groups
713,063
4,157

Net fair value losses/(gains) recognised in P&L
115,000
(90,000)

Net cash generated from operating activities

2,579,523
675,173


Cash flows from investing activities

Purchase of tangible fixed assets
(3,832,775)
(846,750)

Sale of tangible fixed assets
5,191
10,000

Interest received
1,115
240

Net cash from investing activities

(3,826,469)
(836,510)

Cash flows from financing activities

Repayment of loans
(276,400)
(139,321)

Repayment of/new finance leases
399,489
(10,056)

Movements on invoice discounting
984,965
(117,736)

Interest paid
(101,969)
(26,098)

Net cash used in financing activities
1,006,085
(293,211)

Net (decrease) in cash and cash equivalents
(240,861)
(454,548)

Cash and cash equivalents at beginning of year
903,428
1,357,976

Cash and cash equivalents at the end of year
662,567
903,428

Page 13

 
EASTERN COUNTIES LAUNDRIES LIMITED
 

STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023


2023
2022

£
£


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
662,567
903,428

662,567
903,428


The notes on pages 16 to 36 form part of these financial statements.

Page 14

 
EASTERN COUNTIES LAUNDRIES LIMITED
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 MARCH 2023





At 1 April 2022
Cash flows
New finance leases
At 31 March 2023
£

£

£

£

Cash at bank and in hand

903,428

(240,861)

-

662,567

Debt due after 1 year

(835,201)

274,592

-

(560,609)

Debt due within 1 year

(280,414)

1,808

-

(278,606)

Finance leases

(651,421)

265,475

(709,000)

(1,094,946)


(863,608)
301,014
(709,000)
(1,271,594)

The notes on pages 16 to 36 form part of these financial statements.

Page 15

 
EASTERN COUNTIES LAUNDRIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

1.


General information

The company is a private company limited by shares, incorporated in the United Kingdom and registered in England and Wales. The address of the registered office is 28 Robjohns Road, Widford Industrial Estate, Chelmsford, Essex, United Kingdom, CM1 3AF and the company number is 00249950.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Exemption from preparing consolidated financial statements

The Company is exempt from the requirement to prepare consolidated financial statements as all of its subsidiaries are required to be excluded from consolidation by section 402 of the Companies Act 2006.

 
2.3

Going concern

Management have considered that the consequences of the past accounting periods and the post balance sheet period and have determined that following appropriate sales pricing and review of labour and other costs, that the going concern is the most appropriate basis for the preparation of the financial statements. This is further supported by the strong net asset position of £7.2mil.

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

The services predominantly include the rental of washed linen and garments. 

Page 16

 
EASTERN COUNTIES LAUNDRIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.5

Operating leases: the Company as lessee

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

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.6

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.7

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.8

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.9

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

Page 17

 
EASTERN COUNTIES LAUNDRIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.10

Taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.11

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold property
-
2%
Motor vehicles
-
20%
Plant and machinery
-
13%
to 25%
Commercial vehicles
-
25%
Fixtures and fittings
-
50%
Computer equipment
-
33%
Linen
-
50%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Assets under construction are not depreciated.

Page 18

 
EASTERN COUNTIES LAUNDRIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.12

Revaluation of tangible fixed assets

Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

  
2.13

Impairment of fixed assets and goodwill

Assets that are subject to depreciation or amortisation are assessed at each balance sheet date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of the asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cashflows (CGUs). Non-financial assets that have been previously impaired are reviewed at each balance sheet date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.

 
2.14

Investment property

Investment property is carried at fair value determined annually by external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.

 
2.15

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted Company shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Statement of Comprehensive Income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

 
2.16

Associates and joint ventures

Associates and Joint Ventures are held at cost less impairment.

Page 19

 
EASTERN COUNTIES LAUNDRIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.17

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.18

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.19

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.20

Holiday pay accrual

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the balance sheet date.

 
2.21

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

Financial instruments are recognised in the Company's Balance Sheet when the Company becomes party to the contractual provisions of the instrument.

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

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash
Page 20

 
EASTERN COUNTIES LAUNDRIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)


2.21
Financial instruments (continued)

equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

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

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the
Page 21

 
EASTERN COUNTIES LAUNDRIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)


2.21
Financial instruments (continued)

derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

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

 
2.22

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

Valuation of properties: we apply estimation and judgement in determining our fair values of properties held within Tangible Assets at revalued amounts and those held within Investment Property at fair value at year end. Management make use of experts in establishing a true market value.
Useful lives: for the different classes of Tangible Assets, management establish useful lives based on our estimates of the period that the assets will be able to be utilised for. Linen is expensed over its useful economic life, which has been determined to be two years. These estimates are based on past operational experience and considered in light of industry competitors. All Tangible Asset useful lives are reviewed periodically for appropriateness.

Page 22

 
EASTERN COUNTIES LAUNDRIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Rendering of services
20,206,931
7,336,658

20,206,931
7,336,658


All turnover arose within the United Kingdom.


5.


Other operating income

2023
2022
£
£

Net rents receivable
114,055
72,086

114,055
72,086



6.


Operating profit/(loss)

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

2023
2022
£
£

Other operating lease rentals
16,691
13,811

Depreciation of tangible assets
1,662,298
779,363


7.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
15,000
15,000

Page 23

 
EASTERN COUNTIES LAUNDRIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

8.


Employees

Staff costs, including directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
5,963,667
2,375,044

Social security costs
576,736
221,683

Cost of defined contribution scheme
123,488
51,478

6,663,891
2,648,205


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Production staff
165
132



Distribution staff
50
35



Administrative staff
25
25



Management staff
4
4

244
196


9.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
217,297
79,073

Company contributions to defined contribution pension schemes
22,410
11,205

239,707
90,278


During the year retirement benefits were accruing to 2 directors (2022 - 2) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £81,611 (2022 - £41,141).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £21,088 (2022 - £10,554).

Page 24

 
EASTERN COUNTIES LAUNDRIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

10.


Interest receivable

2023
2022
£
£


Other interest receivable
1,115
240

1,115
240


11.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
56,413
26,098

Finance leases and hire purchase contracts
45,556
-

101,969
26,098

Page 25

 
EASTERN COUNTIES LAUNDRIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

12.


Taxation



Factors affecting tax charge for the year/period

The tax assessed for the year/period is lower than (2022 - higher than) the standard rate of corporation tax in the UK of 25% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit/(loss) on ordinary activities before tax
379,385
(812,113)


Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2022 - 19%)
94,846
(154,301)

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
29,247
(1,762)

Capital allowances for year/period in excess of depreciation
(921,003)
(489,304)

Increase or decrease in pension fund prepayment leading to an increase (decrease) in tax
431
209

Changes in provisions leading to an increase (decrease) in the tax charge
(32,988)
51,790

Unrelieved tax losses carried forward
829,467
593,414

Other differences leading to an increase (decrease) in the tax charge
-
(46)

Total tax charge for the year/period
-
-

At the end of the period the company has a total of £8,517,532 taxable losses carried forward.


13.


Dividends

2023
2022
£
£


Dividends in specie (properties disposed)
824,000
-

824,000
-

Page 26

 


 
EASTERN COUNTIES LAUNDRIES LIMITED


 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023


14.


Tangible fixed assets






Freehold property
Motor vehicles
Plant and machinery
Commercial vehicles
Fixtures and fittings
Assets under construction
Computer equipment
Linen
Total

£
£
£
£
£
£
£
£
£



Cost or valuation


At 1 April 2022
5,764,881
57,479
4,155,888
640,897
5,306
-
12,885
1,488,250
12,125,586


Additions
23,496
165,114
589,726
420,919
449
533,109
121,754
1,978,208
3,832,775


Disposals
(149,000)
-
(12,340)
-
-
-
-
(440,460)
(601,800)


Revaluations
(239,377)
-
-
-
-
-
-
-
(239,377)



At 31 March 2023

5,400,000
222,593
4,733,274
1,061,816
5,755
533,109
134,639
3,025,998
15,117,184



Depreciation


At 1 April 2022
-
1,948
2,527,854
509,895
3,589
-
9,875
580,961
3,634,122


Charge for the year on owned assets
114,885
-
463,856
112,269
1,651
-
15,189
933,284
1,641,134


Charge for the year on financed assets
-
21,164
-
-
-
-
-
-
21,164


Disposals
(2,098)
-
(12,340)
-
-
-
-
(440,460)
(454,898)


On revalued assets
(112,787)
-
-
-
-
-
-
-
(112,787)



At 31 March 2023

-
23,112
2,979,370
622,164
5,240
-
25,064
1,073,785
4,728,735



Net book value



At 31 March 2023
5,400,000
199,481
1,753,904
439,652
515
533,109
109,575
1,952,213
10,388,449
Page 27

 


 
EASTERN COUNTIES LAUNDRIES LIMITED


 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

           14.Tangible fixed assets (continued)




At 31 March 2022
5,764,881
55,531
1,628,034
131,002
1,717
-
3,010
907,289
8,491,464

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:







2023
2022

Land and buildings
52,971
52,971

Plant and machinery
-
789,929

Motor vehicles
98,892
55,531

Commercial vehicles
13,546
68,447

165,410
966,878

Page 28

 
EASTERN COUNTIES LAUNDRIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
Tangible fixed assets (continued)
Freehold Property at 31 March 2023 has a carrying amount of £3,490,795 at cost with the revaluation portion being £1,909,205 based on the 31 March 2023 valuation. Thus a total of £5,400,000. 
The 31 March 2023 valuations were made by an independent valuer, being Nicholas Percival RICS, on an open market value for existing use basis.
If the Freehold Property had been accounted for under the historic cost accounting rules, the properties would have been measured as follows:
-31 March 2023: Historic cost of £4,673,915 and accumulated depreciation of £1,183,120
-31 March 2022: Historic cost of £4,651,323 and accumulated depreciation of £1,089,721


15.


Fixed asset investments





Investments in subsidiary companies
Investments in associates
Total

£
£
£



Cost or valuation


At 1 April 2022
5,000
6,810
11,810


Disposals
(5,000)
-
(5,000)



At 31 March 2023
-
6,810
6,810





Subsidiary undertakings

Eastern Counties Laundries Limited is a designated member of Moore Bros 1815 LLP, having 66% control. Moore Bros 1815 LLP is a limited liability partnership incorporated in the United Kingdom and registered in England and Wales. The registered address is Middlebrough House, 16 Middlebrough, Colchester, Essex, CO1 1QT and the registered number is OC355032. Moore Bros 1815 LLP had no profit or share capital and reserves at 31 March 2023 and is a dormant entity.
During the year, Eastern Counties Laundries Limited sold its 5,000 shares (100% shareholding) in County Linen Service Limited. This company is also dormant.


Participating interests


The Brilliant Laundry Group Limited was in liquidation at year end and has been dissolved at the point of signing these accounts. The entity had a registered address at Staverton Court, Staverton, Cheltenham, GL51 OUX. The entity had 30,000 £1 Ordinary A Shares and 2 £1 Ordinary C Shares. Eastern Counties Laundries Limited held 50% of its Ordinary C shares. In the year ended 31 December 2020 (the last year of which accounts have been filed), the company made a profit after tax of £21,581 and had aggregate capital and reserves of £193,627.
More Laundries Limited has a registered address of 28 Robjohns Road, Widford Industrial Estate, Chelmsford, Essex, United Kingdom, CM1 3AF. Eastern Counties Laundries Limited holds 25% of its Ordinary shares. It has £100 aggregate capital and reserves and is a dormant entity.

Page 29

 
EASTERN COUNTIES LAUNDRIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

16.


Investment property


Freehold investment property
Long term leasehold investment property
Total

£
£
£



Valuation


At 1 April 2022
1,100,000
475,000
1,575,000


Disposals
(675,000)
-
(675,000)


Deficit on revaluation
(75,000)
(40,000)
(115,000)



At 31 March 2023
350,000
435,000
785,000

The 31 March 2023 valuations were made by an independent valuer, being Nicholas Percival RICS, on an open market value for existing use basis.



At 31 March 2023



If the Investment properties had been accounted for under the historic cost accounting rules, the properties would have been measured as follows:

2023
2022
£
£


Historic cost
-
6,992

-
6,992

Page 30

 
EASTERN COUNTIES LAUNDRIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

17.


Debtors

2023
2022
£
£


Trade debtors
2,648,949
1,900,606

Other debtors
20,002
263,097

Prepayments and accrued income
461,464
163,728

3,130,415
2,327,431



18.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
662,567
903,428

662,567
903,428


Page 31

 
EASTERN COUNTIES LAUNDRIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

19.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank loans
278,606
280,414

Trade creditors
2,322,159
1,748,455

Amounts owed to group undertakings
717,220
4,157

Other taxation and social security
615,320
633,016

Obligations under finance lease and hire purchase contracts
316,574
299,722

Invoice discounting creditor
867,229
-

Other creditors
627,347
596,050

Accruals and deferred income
639,897
739,305

6,384,352
4,301,119


Obligations under finance leases and hire purchase contracts are secured over the assets concerned. The carrying values of which are disclosed above in note 14.
HSBC Bank PLC holds the following security:
A fixed charge over Book Debts and a floating charge over all other assets dated 30th October 1986.
A first legal charge dated 22nd June 2004 over Freehold property known as Land & Buildings on west side of Robjohns Road, Chelmsford.
A debenture including Fixed Charge over all present freehold property and leasehold property; First Fixed Charge over book and other debt, chattels, goodwill and uncalled capital, both present and future; and First Floating Charge over all assets and undertaking both present and future dated 15th June 2004.


20.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Bank loans
560,609
835,201

Net obligations under finance leases and hire purchase contracts
778,372
351,699

1,338,981
1,186,900


Obligations under finance leases and hire purchase contracts are secured over the assets concerned. The carrying values of which are disclosed above in note 14.
Bank loans and overdrafts are secured by legal charges over freehold property. Refer to note 19 above.

Page 32

 
EASTERN COUNTIES LAUNDRIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

21.


Loans


Analysis of the maturity of loans is given below:


2023
2022
£
£

Amounts falling due within one year

Bank loans
278,606
280,414


278,606
280,414

Amounts falling due 1-2 years

Bank loans
283,452
282,727


283,452
282,727

Amounts falling due 2-5 years

Bank loans
277,157
552,474


277,157
552,474


839,215
1,115,615


The loans relate to two HSBC loans. £666,667 at 31 March 2023 (2022: £866,667) relating to a Coronavirus Business Loan which has no interest charged for the first year, but is interest bearing thereafter at a rate of 3.99% per annum over the Bank of England Base Rate. The other £172,548 (2022: £248,948) relates to a Flexible Business Loan which charges interest at 2.85% per annum. Repayments are made monthly on both loans.


22.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

2023
2022
£
£


Within one year
316,574
299,722

Between 1-5 years
778,372
351,699

1,094,946
651,421

Page 33

 
EASTERN COUNTIES LAUNDRIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

23.


Financial instruments

2023
2022
£
£

Financial assets


Financial assets measured at amortised cost
3,331,518
3,067,131


Financial liabilities


Other financial liabilities measured at amortised cost
7,108,013
4,855,003


Financial assets measured at amortised cost comprise of cash, trade debtors and other debtors.


Financial liabilities measured at amortised cost comprise of bank loans, trade creditors, leases, accruals, other creditors, invoice discounting creditor and amounts owed to group undertakings.


24.


Deferred taxation

2023
2022
£
£
Accelerated capital allowances

(640,363)

(559,552)
 
Tax losses carried forward

638,088

558,150
 
Pension surplus

2,275

1,402
 
-

-
 


25.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



12,209 (2022 - 12,209) Ordinary A shares of £1.00 each
12,209
12,209


Page 34

 
EASTERN COUNTIES LAUNDRIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

26.


Reserves

Revaluation reserve

This reserve records the value of asset revaluations recognised in other comprehensive income.

Capital redemption reserve

This reserve records the nominal value of shares repurchased by the company.

Other reserves

This reserve records the value of fair movements on assets recognised through the profit and loss account.

Profit and loss account

Includes all current and prior period retained earnings.


27.


Prior year adjustment

Following the revaluation of Freehold Property in the current year, it was noted that the revaluation realisation amount released into retained earnings in 2022 was overstated by £1,089,721. As material, the directors have corrected this as a prior period adjustment. This has a nil impact on Equity and is a disclosure correction.
Therefore, the Statement of Financial Position and Statement of Changes in Equity are all impacted. This restatement has no impact on tax. 


28.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £123,488 (2022 - £51,478) . Contributions totalling £28,503 (2022 - £20,751) were payable to the fund at the balance sheet date and are included in accruals.


29.


Commitments under operating leases

At 31 March 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
1,099
14,489

Later than 1 year and not later than 5 years
-
1,099

1,099
15,588

Page 35

 
EASTERN COUNTIES LAUNDRIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

30.


Related party transactions

Related party transactions in the year relate to directors remuneration which has been disclosed in note 9 above as well as amounts due to and from directors and group companies. Amounts owed by group undertakings were £Nil (2022: £Nil) and amounts owed to group undertakings were £717,220 (2022: £4,157). Loan amounts owed to directors are included in other creditors and amount to £484,417 (2022: £538,555). Loans receivable from directors which are included in other debtors amount to £Nil (2022: £1,034). These loans bear no interest and are repayable on demand. 
Eastern Counties Laundries Limited sold its 100% shareholding in County Linen Service Limited to Moore Bros Holdings Limited on 13 January 2023 as part of a group restructure. Properties have also been sold at market value to the parent (Moore Bros Holdings Limited), resulting in the dividends in specie declared.


31.


Post balance sheet events

After year end, a registration of a fixed charge occurred on 21 June 2023 between the company and Together Commercial Finance Limited, who now holds security over the freehold property known as 31 Robjohns Road, Chelmsford, CM1 3AF.
After year end, Eastern Counties Laundries Limited was still in the process of selling a property to Moore Bros Holdings Limited at its current market value. 
A portion of the 30 West Street, Coggeshall CO6 1NS property is still currently in the process of being sold. The carrying value is £350k at March 2023 and is included in Investment Property. At the signing date of these accounts, the sale has not yet been finalised.
During the year, Eastern Counties Laundries Limited invested costs of approximately £0.5mil which is included in Tangible fixed assets above, and a further £0.3mil has been invested after year end into expanding its factory facility at 31 Robjohns Road in Chelmsford, with it being completed in May 2023. To support this expansion of operations the company obtained a loan facility of £1.5mil in June 2023.


32.


Controlling party

Moore Bros Holdings Limited is the immediate and ultimate parent company, with Mr T W Moore remaining the ultimate controlling party due to him having 100% shareholding in Moore Bros Holdings Limited. Mr T W Moore sold 25% of his shareholding in Moore Bros Holdings Limited to Mr O T Moore on 3 January 2024.

Copies of the consolidated financial statements of Moore Bros Holdings Limited can be obtained from 28 Robjohns Road, Chelmsford, England, CM1 3AF


 
Page 36