Company registration number 11582610 (England and Wales)
ASB LEISURE LIMITED GROUP
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
ASB LEISURE LIMITED GROUP
COMPANY INFORMATION
Director
Mr A J Baker
Company number
11582610
Registered office
Beaumont House
172 Southgate Street
Gloucester
Gloucestershire
GL1 2EZ
Auditor
Griffiths Marshall
Beaumont House
172 Southgate Street
Gloucester
GL1 2EZ
ASB LEISURE LIMITED GROUP
CONTENTS
Page
Strategic report
1
Director's report
2 - 3
Independent auditor's report
4 - 6
Profit and loss account
7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 27
ASB LEISURE LIMITED GROUP
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2023
- 1 -

The director presents the strategic report for the year ended 31 July 2023.

Review of the business

The company's main activity is that of the sale of caravans and motor homes. There are two main locations within Gloucestershire where trade is carried out.

 

The group has a healthy gross profit of £2.9 million (2022: £3.4 million) and produces a good return on capital employed, relative to the industry.

Other performance indicators

Financial risk management

The company's financial instruments comprise cash at bank, bank and other short term borrowings for purchase of vehicles which is quickly repaid from financing arrangements between customers and external finance providers. This reduces the risk to Pearman Briggs as sales of caravans are rarely on credit.

 

It is the company's policy to finance its operation through a mixture of cash and borrowings and to review periodically the mix of these instruments with regard to the projected cash flow requirements of the company and an acceptable level of risk exposure.

On behalf of the board

Mr A J Baker
Director
8 April 2024
ASB LEISURE LIMITED GROUP
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 JULY 2023
- 2 -

The director presents his annual report and financial statements for the year ended 31 July 2023.

Principal activities

The principal activity of the company and group continued to be that of the sale of caravans.

Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £73,292. The director does not recommend payment of a further dividend.

Director

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

Mr A J Baker
Statement of director's responsibilities

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

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

 

 

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

ASB LEISURE LIMITED GROUP
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 3 -
On behalf of the board
Mr A J Baker
Director
8 April 2024
ASB LEISURE LIMITED GROUP
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ASB LEISURE LIMITED GROUP
- 4 -
Opinion

We have audited the financial statements of ASB Leisure Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 July 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

 

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

 

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

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

ASB LEISURE LIMITED GROUP
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ASB LEISURE LIMITED GROUP
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the director is responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the parent company or to cease operations, or has no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

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

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.

We gained an understanding of the legal and regulatory framework applicable to ASB Leisure Limited and the industry in which it operates and, considered the risk of acts by Management and directors of ASB Leisure Limited which were contrary to applicable laws and regulations, including fraud. These included but were not limited to compliance with the Companies Act 2006 and Employment Law. We made enquiries of the Directors to obtain further understanding of risks of non-compliance.

 

We focused on laws and regulations that could give rise to a material misstatement in the financial statements. Our tests included, but were not limited to:

 

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

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

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

Use of our report

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

Stephen Humphries (Senior Statutory Auditor)
For and on behalf of Griffiths Marshall
8 April 2024
Chartered Accountants
Statutory Auditor
Beaumont House
172 Southgate Street
Gloucester
GL1 2EZ
ASB LEISURE LIMITED GROUP
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 JULY 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
23,047,497
22,418,104
Cost of sales
(20,146,278)
(18,934,063)
Gross profit
2,901,219
3,484,041
Administrative expenses
(1,720,841)
(1,194,987)
Other operating income
15,756
455
Operating profit
4
1,196,134
2,289,509
Interest receivable and similar income
7
(12,529)
22,420
Interest payable and similar expenses
8
-
0
(6,580)
Profit before taxation
1,183,605
2,305,349
Tax on profit
9
(299,930)
(356,355)
Profit for the financial year
24
883,675
1,948,994
Profit for the financial year is all attributable to the owner of the parent company.
ASB LEISURE LIMITED GROUP
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JULY 2023
- 8 -
2023
2022
£
£
Profit for the year
883,675
1,948,994
Other comprehensive income
-
-
Total comprehensive income for the year
883,675
1,948,994
Total comprehensive income for the year is all attributable to the owners of the parent company.
ASB LEISURE LIMITED GROUP
GROUP BALANCE SHEET
AS AT
31 JULY 2023
31 July 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
303,059
154,702
Investment property
12
704,114
704,114
1,007,173
858,816
Current assets
Stocks
15
4,941,996
2,589,705
Debtors
16
777,388
1,085,071
Cash at bank and in hand
1,908,140
1,744,300
7,627,524
5,419,076
Creditors: amounts falling due within one year
17
(3,987,025)
(2,311,243)
Net current assets
3,640,499
3,107,833
Total assets less current liabilities
4,647,672
3,966,649
Creditors: amounts falling due after more than one year
18
-
(3,721)
Provisions for liabilities
Deferred tax liability
21
26,179
24,819
(26,179)
(24,819)
Net assets
4,621,493
3,938,109
Capital and reserves
Called up share capital
23
500
500
Profit and loss reserves
24
4,620,993
3,937,609
Total equity
4,621,493
3,938,109

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved and signed by the director and authorised for issue on 8 April 2024
08 April 2024
Mr A J Baker
Director
Company registration number 11582610 (England and Wales)
ASB LEISURE LIMITED GROUP
COMPANY BALANCE SHEET
AS AT 31 JULY 2023
31 July 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investment property
12
704,114
704,114
Investments
13
500
500
704,614
704,614
Current assets
Debtors
16
39,841
-
0
Cash at bank and in hand
98,517
84,599
138,358
84,599
Creditors: amounts falling due within one year
17
(13,728)
(21,381)
Net current assets
124,630
63,218
Net assets
829,244
767,832
Capital and reserves
Called up share capital
23
500
500
Profit and loss reserves
24
828,744
767,332
Total equity
829,244
767,832

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £134,704 (2022 - £791,501 profit).

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

The financial statements were approved and signed by the director and authorised for issue on 8 April 2024
08 April 2024
Mr A J Baker
Director
Company registration number 11582610 (England and Wales)
ASB LEISURE LIMITED GROUP
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2023
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 August 2021
500
2,150,907
2,151,407
Year ended 31 July 2022:
Profit and total comprehensive income
-
1,948,994
1,948,994
Dividends
10
-
(162,292)
(162,292)
Balance at 31 July 2022
500
3,937,609
3,938,109
Year ended 31 July 2023:
Profit and total comprehensive income
-
883,675
883,675
Dividends
10
-
(200,292)
(200,292)
Balance at 31 July 2023
500
4,620,993
4,621,493
ASB LEISURE LIMITED GROUP
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2023
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 August 2021
500
52,123
52,623
Year ended 31 July 2022:
Profit and total comprehensive income for the year
-
791,501
791,501
Dividends
10
-
(76,292)
(76,292)
Balance at 31 July 2022
500
767,332
767,832
Year ended 31 July 2023:
Profit and total comprehensive income
-
134,704
134,704
Dividends
10
-
(73,292)
(73,292)
Balance at 31 July 2023
500
828,744
829,244
ASB LEISURE LIMITED GROUP
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JULY 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
602,790
198,698
Interest paid
-
0
(6,580)
Income taxes paid
(385,510)
(305,770)
Net cash inflow/(outflow) from operating activities
217,280
(113,652)
Investing activities
Purchase of tangible fixed assets
(234,929)
(69,763)
Proceeds from disposal of tangible fixed assets
-
31,250
Interest received
9,471
420
Dividends received
(22,000)
22,000
Net cash used in investing activities
(247,458)
(16,093)
Financing activities
Repayment of borrowings
401,634
225,286
Payment of finance leases obligations
(7,324)
-
Dividends paid to equity shareholders
(200,292)
(162,292)
Net cash generated from financing activities
194,018
62,994
Net increase/(decrease) in cash and cash equivalents
163,840
(66,751)
Cash and cash equivalents at beginning of year
1,744,300
1,811,051
Cash and cash equivalents at end of year
1,908,140
1,744,300
ASB LEISURE LIMITED GROUP
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
- 14 -
1
Accounting policies
Company information

ASB Leisure Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is .

 

The group consists of ASB Leisure Limited and all of its subsidiaries.

1.1
Accounting convention

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

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

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

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Business combinations

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

 

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

ASB LEISURE LIMITED GROUP
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 15 -
1.3
Basis of consolidation

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

 

All financial statements are made up to 31 July 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

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

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

 

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

 

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

1.4
Going concern

At the time of approving the financial statements, the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

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

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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

1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

ASB LEISURE LIMITED GROUP
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 16 -

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

Leasehold improvements
10% Straight Line
Fixtures and fittings
15% - 33% Straight Line
Motor vehicles
25% Straight Line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.7
Investment property

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

 

1.8
Fixed asset investments

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

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

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

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

 

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

 

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

 

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

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

ASB LEISURE LIMITED GROUP
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 17 -
1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.10
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.11
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

ASB LEISURE LIMITED GROUP
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 18 -
1.12
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

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

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

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

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

ASB LEISURE LIMITED GROUP
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 19 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

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

 

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

Derecognition of financial liabilities

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

1.13
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.14
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

ASB LEISURE LIMITED GROUP
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 20 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.15
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.16
Retirement benefits

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

1.17
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

ASB LEISURE LIMITED GROUP
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 21 -
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
23,047,497
22,418,104
2023
2022
£
£
Turnover analysed by geographical market
23,047,497
22,418,104
2023
2022
£
£
Other revenue
Interest income
9,471
420
Dividends received
(22,000)
22,000
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
86,572
47,089
Profit on disposal of tangible fixed assets
-
(4,103)
Release of negative goodwill
-
(382,018)
Operating lease charges
85,100
84,800
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
-
-
Audit of the financial statements of the company's subsidiaries
19,650
5,000
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
36
40
1
1
ASB LEISURE LIMITED GROUP
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
6
Employees
(Continued)
- 22 -

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
971,322
928,537
-
0
-
0
Social security costs
13,589
14,628
-
-
Pension costs
59,981
60,889
-
0
-
0
1,044,892
1,004,054
-
0
-
0
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
9,471
420
8
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
-
6,612
Other interest on financial liabilities
-
(32)
Total finance costs
-
0
6,580
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
298,586
358,559
Adjustments in respect of prior periods
(16)
-
0
Total current tax
298,570
358,559
Deferred tax
Origination and reversal of timing differences
1,360
(2,204)
Total tax charge
299,930
356,355
ASB LEISURE LIMITED GROUP
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
9
Taxation
(Continued)
- 23 -

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

2023
2022
£
£
Profit before taxation
1,183,605
2,305,349
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
295,901
438,016
Tax effect of expenses that are not deductible in determining taxable profit
21,643
(5,143)
Effect of change in corporation tax rate
(52,748)
-
Permanent capital allowances in excess of depreciation
(3,226)
(6,935)
Adjustments in respect of financial assets
-
0
(72,583)
Deferred tax adjustments in respect of prior years
1,360
3,000
Dividend income
37,000
-
Taxation charge
299,930
356,355
10
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
73,292
76,292
11
Tangible fixed assets
Group
Leasehold improvements
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 August 2022
-
0
74,726
208,763
283,489
Additions
152,748
11,602
70,579
234,929
At 31 July 2023
152,748
86,328
279,342
518,418
Depreciation and impairment
At 1 August 2022
-
0
60,573
68,214
128,787
Depreciation charged in the year
15,275
3,473
67,824
86,572
At 31 July 2023
15,275
64,046
136,038
215,359
Carrying amount
At 31 July 2023
137,473
22,282
143,304
303,059
At 31 July 2022
-
0
14,153
140,549
154,702
ASB LEISURE LIMITED GROUP
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
11
Tangible fixed assets
(Continued)
- 24 -
The company had no tangible fixed assets at 31 July 2023 or 31 July 2022.
12
Investment property
Group
Company
2023
2023
£
£
Fair value
At 1 August 2022 and 31 July 2023
704,114
704,114
13
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
500
500
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 August 2022 and 31 July 2023
500
Carrying amount
At 31 July 2023
500
At 31 July 2022
500
14
Subsidiaries

Details of the company's subsidiaries at 31 July 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Cotswold Edge Leisure Vehicles Limited
England & Wales
Ordinary
100.00
Pearman Briggs Leisure Limited
England & Wales
Ordinary
100.00
15
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
4,941,996
2,589,705
-
0
-
0
ASB LEISURE LIMITED GROUP
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 25 -
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
170,669
432,766
-
0
-
0
Other debtors
145,210
47,713
39,841
-
0
Prepayments and accrued income
461,509
604,592
-
0
-
0
777,388
1,085,071
39,841
-
17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Obligations under finance leases
20
3,721
7,324
-
0
-
0
Other borrowings
19
867,257
465,623
-
0
-
0
Trade creditors
2,802,566
1,216,605
-
0
-
0
Corporation tax payable
138,586
225,526
11,398
9,843
Other taxation and social security
106,338
330,855
-
-
Other creditors
46,360
21,969
-
0
10,158
Accruals and deferred income
22,197
43,341
2,330
1,380
3,987,025
2,311,243
13,728
21,381
18
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Obligations under finance leases
20
-
0
3,721
-
0
-
0
19
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Other loans
867,257
465,623
-
0
-
0
Payable within one year
867,257
465,623
-
0
-
0
ASB LEISURE LIMITED GROUP
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 26 -
20
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
3,721
7,324
-
0
-
0
In two to five years
-
0
3,721
-
0
-
0
3,721
11,045
-
-
21
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
26,179
24,819
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 August 2022
24,819
-
Charge to profit or loss
1,360
-
Liability at 31 July 2023
26,179
-
22
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
59,981
60,889

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

ASB LEISURE LIMITED GROUP
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 27 -
23
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A of £1 each
499
499
499
499
Ordinary B of £1 each
1
1
1
1
500
500
500
500
24
Reserves
25
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
883,675
1,948,994
Adjustments for:
Taxation charged
299,930
356,355
Finance costs
-
0
6,580
Investment income
12,529
(22,420)
Gain on disposal of tangible fixed assets
-
(4,103)
Depreciation and impairment of tangible fixed assets
86,572
47,089
Increase in provisions
-
3,000
Movements in working capital:
(Increase)/decrease in stocks
(2,352,291)
87,080
Decrease/(increase) in debtors
307,683
(788,912)
Increase/(decrease) in creditors
1,364,691
(1,052,947)
Cash generated from operations
602,789
198,968
26
Analysis of changes in net funds - group
1 August 2022
Cash flows
31 July 2023
£
£
£
Cash at bank and in hand
1,744,300
163,840
1,908,140
Borrowings excluding overdrafts
(465,623)
(401,634)
(867,257)
Obligations under finance leases
(11,045)
7,324
(3,721)
1,267,632
(230,470)
1,037,162
2023-07-312022-08-01falseCCH SoftwareCCH Accounts Production 2023.200Mr A J Baker11582610bus:Consolidated2022-08-012023-07-31115826102022-08-012023-07-3111582610bus:Director12022-08-012023-07-3111582610bus:RegisteredOffice2022-08-012023-07-31115826102023-07-3111582610bus:Consolidated2021-08-012022-07-31115826102021-08-012022-07-3111582610bus:Consolidated2023-07-3111582610bus:Consolidated2022-07-3111582610core:LeaseholdImprovementsbus:Consolidated2023-07-3111582610core:FurnitureFittingsbus:Consolidated2023-07-3111582610core:MotorVehiclesbus:Consolidated2023-07-3111582610core:LeaseholdImprovementsbus:Consolidated2022-07-3111582610core:FurnitureFittingsbus:Consolidated2022-07-3111582610core:MotorVehiclesbus:Consolidated2022-07-31115826102022-07-3111582610core:ShareCapitalbus:Consolidated2023-07-3111582610core:ShareCapitalbus:Consolidated2022-07-3111582610core:ShareCapital2023-07-3111582610core:ShareCapital2022-07-3111582610core:RetainedEarningsAccumulatedLosses2023-07-3111582610core:ShareCapitalbus:Consolidated2021-07-3111582610core:RetainedEarningsAccumulatedLossesbus:Consolidated2021-07-3111582610core:RetainedEarningsAccumulatedLossesbus:Consolidated2022-07-3111582610core:RetainedEarningsAccumulatedLossesbus:Consolidated2023-07-3111582610core:ShareCapital2021-07-3111582610core:RetainedEarningsAccumulatedLosses2021-07-3111582610core:RetainedEarningsAccumulatedLosses2022-07-3111582610core:LeaseholdImprovements2022-08-012023-07-3111582610core:FurnitureFittings2022-08-012023-07-3111582610core:MotorVehicles2022-08-012023-07-3111582610core:UKTaxbus:Consolidated2022-08-012023-07-3111582610core:UKTaxbus:Consolidated2021-08-012022-07-3111582610bus:Consolidated12022-08-012023-07-3111582610bus:Consolidated12021-08-012022-07-3111582610core:LeaseholdImprovementsbus:Consolidated2022-07-3111582610core:FurnitureFittingsbus:Consolidated2022-07-3111582610core:MotorVehiclesbus:Consolidated2022-07-3111582610bus:Consolidated2022-07-3111582610core:LeaseholdImprovementsbus:Consolidated2022-08-012023-07-3111582610core:FurnitureFittingsbus:Consolidated2022-08-012023-07-3111582610core:MotorVehiclesbus:Consolidated2022-08-012023-07-3111582610core:Subsidiary12022-08-012023-07-3111582610core:Subsidiary22022-08-012023-07-3111582610core:CurrentFinancialInstruments2023-07-3111582610core:CurrentFinancialInstruments2022-07-3111582610core:CurrentFinancialInstrumentsbus:Consolidated2023-07-3111582610core:CurrentFinancialInstrumentsbus:Consolidated2022-07-3111582610core:Non-currentFinancialInstrumentsbus:Consolidated2023-07-3111582610core:Non-currentFinancialInstrumentsbus:Consolidated2022-07-3111582610core:Non-currentFinancialInstruments2023-07-3111582610core:Non-currentFinancialInstruments2022-07-3111582610core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2023-07-3111582610core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2022-07-3111582610core:CurrentFinancialInstrumentscore:WithinOneYear2023-07-3111582610core:CurrentFinancialInstrumentscore:WithinOneYear2022-07-3111582610core:WithinOneYearbus:Consolidated2023-07-3111582610core:WithinOneYearbus:Consolidated2022-07-3111582610core:WithinOneYear2023-07-3111582610core:WithinOneYear2022-07-3111582610core:BetweenTwoFiveYearsbus:Consolidated2023-07-3111582610core:BetweenTwoFiveYearsbus:Consolidated2022-07-3111582610core:BetweenTwoFiveYears2023-07-3111582610core:BetweenTwoFiveYears2022-07-3111582610bus:PrivateLimitedCompanyLtd2022-08-012023-07-3111582610bus:FRS1022022-08-012023-07-3111582610bus:Audited2022-08-012023-07-3111582610bus:ConsolidatedGroupCompanyAccounts2022-08-012023-07-3111582610bus:FullAccounts2022-08-012023-07-31xbrli:purexbrli:sharesiso4217:GBP