Company registration number 13177398 (England and Wales)
SWD GROUP HOLDINGS LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
SWD GROUP HOLDINGS LTD
COMPANY INFORMATION
Director
Mr S Hussain
Company number
13177398
Registered office
Unit 25
Mount Street
Bradford
BD4 8TA
Auditor
AMS Accountants Corporate Ltd
Chartered Accountants
Statutory Auditors
Floor 2
9 Portland Street
Manchester
M1 3BE
SWD GROUP HOLDINGS LTD
CONTENTS
Page
Strategic report
1 - 3
Director's report
4 - 6
Independent auditor's report
7 - 9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 34
SWD GROUP HOLDINGS LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The director presents the strategic report for the year ended 31 March 2024.

Review of the business

The primary activity of the company involves wholesale distribution and cash-and-carry services for foodstuffs and packaging. The company serves a diverse clientele, including catering establishments, retail outlets, quick service restaurants, and private consumers.

The results for the year which are set out in the profit and loss account show turnover of £82,093,507 (2023 - £79,021,025) and an operating profit of £5,078,358 (2023 - £4,373,274).

At 31 March 2024 the Group had net assets of £25,759,133 (2023 - £21,814,054).

Despite challenges posed by the economy including inflation, political instability, and global issues affecting the food wholesale market, the company has proactively adopted a delivery model. This strategic shift has led to the acquisition of numerous new customers and a positive outlook for consistent turnover in the coming year. The company remains optimistic about its growth prospects and has implemented several technological advancements to support this growth. The directors consider the performance for the year end and the financial position at the year end to be satisfactory and in line with expectations.

Principal risks and uncertainties

The Group has clear leadership at director level and has continued to strengthen its management team.

 

Risks to the business at a strategic and operational level are regularly considered and their impact mitigated.

 

Principal risks and uncertainties are noted as :

Credit Risk:

The Company effectively mitigates credit risk by generally limiting any credit terms to customers.

Liquidity Risk:

Careful fund management, involving the strategic movement of funds between accounts and inter-company transactions, ensures liquidity readiness when needed.

Foreign Currency Risk:

Exchange rate risks are diligently managed through negotiations and agreements in Sterling, demonstrating the company's commitment to financial stability.

Key performance indicators

Turnover, gross profit, and net profit after taxation are key performance indicators that reflect the company's robust financial performance.

 

Turnover     £82.1m        (2023: £79.0m)

Gross profit    12.7%        (2023: 13.9%)

Net profit    £3.9m        (2023: £3.2m)

EBITDA     £7.1m        (2023: £6m)

The director expresses confidence in the company's ability to navigate economic uncertainties and maintain successful trading.

SWD GROUP HOLDINGS LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Other performance indicators

The senior management team also consider the impact of the group on key non financial performance indicators; staff, health, safety, sustainability and environment.

Staff:

The Company is dedicated to fostering a content and well-trained workforce, recognising employees as invaluable assets. An equal opportunities policy ensures fair treatment for all employees, contributing to a balanced and positive work environment.

 

Health and Safety:

Prioritising the well-being of its workforce, the company closely monitors incident rates and implements preventative measures to maintain a safe working environment.

 

Environmental Regulation:

Commitment to operating at the highest standards involves compliance with energy and food-related environmental regulations. Guided by a sustainable energy policy, the company actively minimises its environmental impact through efficient use of recyclable materials and energy, in compliance with relevant legislation.

Other information and explanations

Company Board Objectives

Risk Management:

At SWD Group Holdings Limited, a comprehensive risk management framework, overseen by the director, identifies, monitors, and mitigates risks across the group. Policies are in place to implement strategies, as detailed in the principal risks and uncertainties section.

 

Staff Involvement:

Valuing staff as the forefront of the business, the company prioritises excellent customer service and interaction. A commitment to fair and transparent management, along with an equal opportunities policy, ensures employees are treated equitably. Investment in employee development remains a key business priority.

 

Customer and Supplier Relationships:

Customer relationships are the cornerstone of the business, essential for sustained growth and success. The company maintains enduring relationships with suppliers, focusing on developing quality, sustainable supply chains. A positive supplier payment policy ensures adherence to contractual and legal obligations.

 

SWD GROUP HOLDINGS LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -

Community and Environment:

Actively engaging in community initiatives and environmental responsibility, the company sponsors sports teams, the local NHS Trust, and contributes to charitable causes, while remaining dedicated to reducing its carbon footprint. Recent initiatives include the introduction of electric fleet vehicles, solar energy adoption at key sites, and ongoing upgrades to energy-efficient equipment.

 

Carbon Reporting and the Environment:

Aligning with the United Nations' Sustainable Development Goals, the group prioritises sustainability with a vision to conduct business responsibly. Initiatives include encouraging eco-friendly commuting, transitioning to electric vehicles, incorporating renewable energy sources, and consistently upgrading facilities for energy efficiency. Staff actively participate in energy conservation efforts. The company purchases 100% green energy and is committed to reaching net zero.

This positive outlook and commitment to excellence underscore the company's resilience, adaptability, and responsible business practices.

Promoting the success of the company

The Director considers that he has acted in ways that he believes in good faith to be the most likely to promote the success of the Group for the benefit of its shareholders and employees in decisions made during the year ended 31st March 2024.

 

We recognise our employees as one of our most important assets and we aim to be a responsible employer in our approach to their pay and benefits. We actively encourage employee progression and development within the organisation. Communication channels have been promoted both collectively and individually with regular dialogue and individual 1-2-1’s. The workforce has been exceptional in their commitment and their engagement is commendable of which we are extremely grateful.

 

Caring for our customers is fundamental to the success of our business and we endeavour to support them with innovative product, good quality, service and value for money. Our main objective being to give our customers a seamless journey’.

 

We aim to act responsibly and fairly in our engagement with suppliers, bankers, insurers and regulatory bodies. We have and always do work closely with our suppliers to make sure they are paid in accordance with their agreed terms.

 

As Director, the intention is always to behave responsibly and to ensure that the business operates in a responsible manner, adhering to high standards of business conduct and good governance. I recognise that the maintenance of our good reputation, founded on responsible behaviour is fundamental to our continuing ability to achieve profitable growth for the benefit of all stakeholders in the future.

On behalf of the board

Mr S Hussain
Director
21 August 2024
SWD GROUP HOLDINGS LTD
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -

The director presents his annual report and financial statements for the year ended 31 March 2024.

Principal activities

The principal activity of the group during the year is that of food wholesalers and distributors.

Results and dividends

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

No ordinary dividends were paid. 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 S Hussain
Auditor

The auditor, AMS Accountants Corporate Ltd, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Energy and carbon report

As the group has consumed more than 40,000 kWh of energy in this reporting period, it is required to report on its emissions, energy consumption or energy efficiency activities.

2024
2023
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
- Gas combustion
430,328
1,032,599
- Electricity purchased
2,841,269
2,748,596
- Fuel consumed for transport
2,963,372
2,812,519
6,234,969
6,593,714
2024
2023
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
32.62
78.27
- Fuel consumed for owned transport
224.62
213.19
257.24
291.46
Scope 2 - indirect emissions
- Electricity purchased
155.13
150.07
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the group
15.38
14.21
Total gross emissions
427.75
455.74
Intensity ratio
Tonnes Co2e per full-time employee
1.80
2.08
SWD GROUP HOLDINGS LTD
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 5 -
Quantification and reporting methodology

The group has followed the 2019 HM Government Environmental Reporting Guidelines. The group has also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting

Intensity measurement

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per full-time employee, the recommended ratio for the sector.

Measures taken to improve energy efficiency

The group have a number of ways which they try to reduce their emissions and carbon footprint which are detailed as follows:

 

- Smart meters are installed to monitor electricity readings and energy usage each day to identify any anomalies

- Staff are encouraged to switch off monitors and printers when not in use, and not kept in standby mode.

- Sensor lights have been installed in a number of locations, and are being rolled out throughout all sites.

- All lightbulbs have been replaced with LED bulbs which are more efficient

- A number of vehicles owned by the company have been replaced with fully electric vehicles.

- Solar panels have been installed to reduce consumption of non-renewable energy

- Seals on doors and refrigeration units have been replaced to retain temperatures and reduce energy consumption.

 

During 2024 we offset 24,000 CO2 emissions or 24 tonnes via our solar panels.

 

We are also looking into further ways to reduce carbon impact in subsequent years.

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.

SWD GROUP HOLDINGS LTD
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 6 -
On behalf of the board
Mr S Hussain
Director
21 August 2024
SWD GROUP HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SWD GROUP HOLDINGS LTD
- 7 -
Opinion

We have audited the financial statements of SWD Group Holdings Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise 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:

SWD GROUP HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SWD GROUP HOLDINGS LTD
- 8 -
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.

Based on our understanding of the company and industry, we identified that the principal risks of non -compliance with laws and regulations related to pensions legislation, UK tax legislation and UK employment legislation, and we considered the extent to which non- compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to increase revenue or manipulate expenditure and management bias in accounting estimates. Audit procedures performed by the audit engagement team included:

 

•    Discussions with management, including consideration of known or suspected instances of non- compliance with laws and regulation and fraud;

•    Review of the financial statement disclosures to underlying supporting documentation;

•    Challenging assumptions and judgements made by management in their significant accounting estimates;

•    Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations or posted by senior management.

 

There are inherent limitations in the audit procedures described above and the further removed non- compliance with laws and regulations is from the events and transaction reflected in the financial statements, the less likely we would become aware of it. Also, 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 or intentional misrepresentations, or through collusion.

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.

SWD GROUP HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SWD GROUP HOLDINGS LTD
- 9 -

Use of our report

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

Mr David Clegg BFP FCA (Senior Statutory Auditor)
For and on behalf of AMS Accountants Corporate Ltd
21 August 2024
Chartered Accountants
Statutory Auditor
Chartered Accountants
Floor 2
9 Portland Street
Manchester
M1 3BE
SWD GROUP HOLDINGS LTD
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
2024
2023
as restated
Notes
£
£
Turnover
3
82,093,507
79,021,025
Cost of sales
(71,674,080)
(68,040,372)
Gross profit
10,419,427
10,980,653
Administrative expenses
(5,341,069)
(6,625,708)
Other operating income
-
18,329
Operating profit
4
5,078,358
4,373,274
Interest receivable and similar income
8
485,475
11,248
Interest payable and similar expenses
9
(8,558)
(6,238)
Profit before taxation
5,555,275
4,378,284
Tax on profit
10
(1,610,196)
(1,141,592)
Profit for the financial year
26
3,945,079
3,236,692
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
SWD GROUP HOLDINGS LTD
GROUP BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 11 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Goodwill
11
4,186,000
4,784,000
Tangible assets
12
17,399,678
18,584,741
Investment property
13
1,779,389
1,256,331
23,365,067
24,625,072
Current assets
Stocks
17
6,298,905
5,184,577
Debtors
18
1,458,922
497,996
Cash at bank and in hand
12,539,129
9,498,684
20,296,956
15,181,257
Creditors: amounts falling due within one year
19
(9,601,325)
(9,631,694)
Net current assets
10,695,631
5,549,563
Total assets less current liabilities
34,060,698
30,174,635
Creditors: amounts falling due after more than one year
20
(7,935,541)
(8,109,841)
Provisions for liabilities
Deferred tax liability
22
366,024
250,740
(366,024)
(250,740)
Net assets
25,759,133
21,814,054
Capital and reserves
Called up share capital
24
113
113
Share premium account
25
16,293,459
16,293,459
Profit and loss reserves
26
9,465,561
5,520,482
Total equity
25,759,133
21,814,054
The financial statements were approved and signed by the director and authorised for issue on 21 August 2024
21 August 2024
Mr S Hussain
Director
Company registration number 13177398 (England and Wales)
SWD GROUP HOLDINGS LTD
COMPANY BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 12 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Investments
14
300
300
Current assets
Debtors
18
6,577,803
5,146,340
Cash at bank and in hand
6,607,258
2,974,861
13,185,061
8,121,201
Creditors: amounts falling due within one year
19
(2,039,239)
(2,437)
Net current assets
11,145,822
8,118,764
Total assets less current liabilities
11,146,122
8,119,064
Creditors: amounts falling due after more than one year
20
(7,935,541)
(8,109,841)
Net assets
3,210,581
9,223
Capital and reserves
Called up share capital
24
113
113
Profit and loss reserves
26
3,210,468
9,110
Total equity
3,210,581
9,223

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 £3,201,357 (2023 - £9,110 profit).

The financial statements were approved and signed by the director and authorised for issue on 21 August 2024
21 August 2024
Mr S Hussain
Director
Company registration number 13177398 (England and Wales)
SWD GROUP HOLDINGS LTD
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
As restated for the period ended 31 March 2023:
Balance at 1 April 2022
113
16,293,459
2,283,790
18,577,362
Year ended 31 March 2023:
Profit and total comprehensive income
-
-
3,236,692
3,236,692
Balance at 31 March 2023
113
16,293,459
5,520,482
21,814,054
Year ended 31 March 2024:
Profit and total comprehensive income
-
-
3,945,079
3,945,079
Balance at 31 March 2024
113
16,293,459
9,465,561
25,759,133
SWD GROUP HOLDINGS LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 14 -
Share capital
Profit and loss reserves
Total
£
£
£
As restated for the period ended 31 March 2023:
Balance at 1 April 2022
113
-
0
113
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
9,110
9,110
Balance at 31 March 2023
113
9,110
9,223
Year ended 31 March 2024:
Profit and total comprehensive income
-
3,201,358
3,201,358
Balance at 31 March 2024
113
3,210,468
3,210,581
SWD GROUP HOLDINGS LTD
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 15 -
2024
2023
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
3,969,312
4,322,095
Interest paid
(8,558)
(6,238)
Income taxes paid
(915,109)
(507,009)
Net cash inflow from operating activities
3,045,645
3,808,848
Investing activities
Purchase of tangible fixed assets
(683,568)
(4,177,975)
Proceeds from disposal of tangible fixed assets
715,951
51,495
Purchase of investment property
(523,058)
(1,256,331)
Interest received
485,475
11,248
Net cash used in investing activities
(5,200)
(5,371,563)
Net increase/(decrease) in cash and cash equivalents
3,040,445
(1,562,715)
Cash and cash equivalents at beginning of year
7,998,684
9,561,399
Cash and cash equivalents at end of year
11,039,129
7,998,684
Relating to:
Cash at bank and in hand
12,539,129
9,498,684
Bank overdrafts included in creditors payable within one year
(1,500,000)
(1,500,000)
SWD GROUP HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
1
Accounting policies
Company information

SWD Group Holdings Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Unit 25, Mount Street, Bradford, BD4 8TA.

 

The group consists of SWD Group Holdings Ltd 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.

SWD GROUP HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company SWD Group Holdings Ltd 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 March 2024. 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.

Revenue from transport services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably.

SWD GROUP HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 18 -

Revenue from rent of the property is recognised at the end of each month on an accruals basis in line with the relevant rental agreement.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.7
Tangible fixed assets

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

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

Freehold land and buildings
2% straight line basis
Leasehold land and buildings
over the term of the lease
Plant and equipment
10% straight line basis
Computers
25% straight line basis
Motor vehicles
25% straight line basis

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.

1.8
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.

1.9
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.

SWD GROUP HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 19 -

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.

1.10
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.

SWD GROUP HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 20 -
1.11
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.

1.12
Cash and cash equivalents

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

1.13
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.

SWD GROUP HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 21 -
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.

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.

SWD GROUP HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 22 -
Derecognition of financial liabilities

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

1.14
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.

1.15
Taxation

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

Current tax

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

Deferred tax

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

 

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

1.16
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.

1.17
Retirement benefits

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

1.18
Leases

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

SWD GROUP HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 23 -
1.19

Subsidiary undertakings exempt from audit

Under Section 479a of the Companies Act 2006 available to subsidiary undertakings, the company provides a guarantee in respect of the below subsidiary undertakings claiming exemption from audit.

 

Adams Foodservice Trading Ltd (13204158)

Eve Transport Ltd (13204184)

Eden Assets Ltd (13242555)

Genesis Properties (Yorkshire) Ltd (14086422)

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.

 

The directors do not consider that there are any critical judgements or sources of estimation uncertainty requiring disclosure during the current or prior period.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Goodwill

The group acquired Seafresh partnership in the year ended 31 March 2022 for a consideration of £5,980,000, with an expected useful economic life of 10 years. This is reviewed annually by the directors with an impairment review carried out via a value in use calculation. The value in use calculation requires the entity to estimate the future cash flows expected to arise from the cash generating unit and a suitable discount rate in order to calculate present value. The carrying amount of goodwill at the balance sheet date is £4,186,000 (2023- £4,784,000) and no impairment was required to be recognised.

Investment Property Valuation

The fair value of investment properties is based on property valuations by the directors which are derived from a number of assumptions and the general strength of the property market and the wider economy. Significant changes to any of these factors may affect the fair value of the properties either in a negative or positive manner. The directors are satisfied at the year end that the market value of the investment properties remains appropriate.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Wholesale and distribution of food
82,093,507
79,021,025
SWD GROUP HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
3
Turnover and other revenue
(Continued)
- 24 -
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
82,093,507
79,021,025
2024
2023
£
£
Other revenue
Interest income
485,475
11,248
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
1,155,313
1,056,356
Profit on disposal of tangible fixed assets
(2,633)
(26,238)
Amortisation of intangible assets
598,000
598,000
5
Auditor's remuneration
2024
2023
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
30,000
30,000
6
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Director
1
1
1
1
Direct and administration
236
218
-
-
Total
237
219
1
1
SWD GROUP HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
6
Employees
(Continued)
- 25 -

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
5,528,720
4,897,589
-
0
-
0
Social security costs
421,540
408,136
-
-
Pension costs
69,751
400,321
-
0
-
0
6,020,011
5,706,046
-
0
-
0
7
Director's remuneration
2024
2023
£
£
Remuneration for qualifying services
44,284
12,570
Company pension contributions to defined contribution schemes
309
-
44,593
12,570
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
338,542
-
0
Other interest income
146,933
11,248
Total income
485,475
11,248
9
Interest payable and similar expenses
2024
2023
£
£
Other interest
8,558
6,238
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
1,494,955
916,933
Adjustments in respect of prior periods
(43)
104,711
Total current tax
1,494,912
1,021,644
SWD GROUP HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
10
Taxation
2024
2023
£
£
(Continued)
- 26 -
Deferred tax
Origination and reversal of timing differences
115,284
119,948
Total tax charge
1,610,196
1,141,592

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:

2024
2023
£
£
Profit before taxation
5,555,275
4,378,284
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
1,388,819
831,874
Tax effect of expenses that are not deductible in determining taxable profit
-
0
269,716
Adjustments in respect of prior years
(43)
-
0
Permanent capital allowances in excess of depreciation
221,420
(63,765)
Under/(over) provided in prior years
-
0
103,767
Taxation charge
1,610,196
1,141,592

The standard rate of tax applied to corporation and deferred taxation balances is 25% (2022 - 19%). The applicable tax rate has changed following the substantive enactment of the Finance Act 2021.

11
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 April 2023 and 31 March 2024
5,980,000
Amortisation and impairment
At 1 April 2023
1,196,000
Amortisation charged for the year
598,000
At 31 March 2024
1,794,000
Carrying amount
At 31 March 2024
4,186,000
At 31 March 2023
4,784,000
The company had no intangible fixed assets at 31 March 2024 or 31 March 2023.
SWD GROUP HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
11
Intangible fixed assets
(Continued)
- 27 -
12
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Plant and equipment
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 April 2023
11,148,702
3,397,743
3,863,845
700,056
1,328,487
20,438,833
Additions
52,350
-
0
272,511
65,331
293,376
683,568
Disposals
(731,010)
-
0
-
0
-
0
(42,212)
(773,222)
At 31 March 2024
10,470,042
3,397,743
4,136,356
765,387
1,579,651
20,349,179
Depreciation and impairment
At 1 April 2023
453,365
19,454
734,510
307,628
339,135
1,854,092
Depreciation charged in the year
263,190
9,727
400,418
181,027
300,951
1,155,313
Eliminated in respect of disposals
(36,413)
-
0
-
0
-
0
(23,491)
(59,904)
At 31 March 2024
680,142
29,181
1,134,928
488,655
616,595
2,949,501
Carrying amount
At 31 March 2024
9,789,900
3,368,562
3,001,428
276,732
963,056
17,399,678
At 31 March 2023
10,695,337
3,378,289
3,129,335
392,428
989,352
18,584,741
The company had no tangible fixed assets at 31 March 2024 or 31 March 2023.
13
Investment property
Group
Company
2024
2024
£
£
Fair value
At 1 April 2023 and 31 March 2024
1,256,331
-
Additions through external acquisition
523,058
-
At 31 March 2024
1,779,389
-

Investment property comprises of a warehouse and office space. For the addition in the year, the fair value of the investment property has been arrived at on the basis of the purchase completion statement which is considered to be at open market value.

 

For the property purchased during the prior year, the fair value of the investment property has been arrived at on the basis of a valuation carried out at the balance sheet date by the directors. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.

SWD GROUP HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 28 -
14
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
15
-
-
300
300
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2023 and 31 March 2024
300
Carrying amount
At 31 March 2024
300
At 31 March 2023
300
15
Subsidiaries

Details of the company's subsidiaries at 31 March 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Adams Foodservice Trading Ltd
UK
Ordinary
100.00
Eve Transport Ltd
UK
Ordinary
100.00
Eden Assets Ltd
UK
Ordinary
100.00
Genesis Properties (Yorkshire) Ltd
UK
Ordinary
100.00
16
Financial instruments
Group
Company
2024
2023
2024
2023
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
1,300,769
274,457
n/a
n/a
Carrying amount of financial liabilities
Measured at amortised cost
15,607,555
16,332,420
n/a
n/a
17
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
6,298,905
5,184,577
-
0
-
0
SWD GROUP HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 29 -
18
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
277,068
45,638
-
0
-
0
Amounts owed by group undertakings
-
-
5,578,607
4,978,615
Other debtors
1,023,701
307,968
999,196
167,725
Prepayments and accrued income
158,153
144,390
-
0
-
0
1,458,922
497,996
6,577,803
5,146,340
19
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
21
1,500,000
1,500,000
-
0
-
0
Trade creditors
4,947,757
5,865,652
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
2,000,300
300
Corporation tax payable
1,607,685
1,027,882
38,939
2,137
Other taxation and social security
321,626
381,233
-
-
Other creditors
136,860
63,908
-
0
-
0
Accruals and deferred income
1,087,397
793,019
-
0
-
0
9,601,325
9,631,694
2,039,239
2,437
20
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
£
£
£
£
Other creditors
7,935,541
8,109,841
7,935,541
8,109,841
21
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank overdrafts
1,500,000
1,500,000
-
0
-
0
Payable within one year
1,500,000
1,500,000
-
0
-
0
SWD GROUP HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
21
Loans and overdrafts
(Continued)
- 30 -

The banking facilities of the company are secured by way of fixed and floating charges in favour of Lloyds Bank PLC as follows:

 

Cross guarantee and debenture between SWD Group Holdings Ltd, Adams Foodservice Trading Ltd, Eve Transport Ltd, Eden Assets Ltd and Genesis Properties (Yorkshire) Ltd, dated 6th January 2023.

22
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
366,024
250,740
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 April 2023
250,740
-
Charge to profit or loss
115,284
-
Liability at 31 March 2024
366,024
-
23
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
69,751
400,321

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.

SWD GROUP HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 31 -
24
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
8
8
8
8
Ordinary B shares of £1 each
8
8
8
8
Ordinary C shares of £1 each
8
8
8
8
Ordinary D shares of £1 each
8
8
8
8
Ordinary E shares of £1 each
8
8
8
8
Ordinary F shares of £1 each
8
8
8
8
Ordinary G shares of £1 each
8
8
8
8
Ordinary H shares of £1 each
8
8
8
8
Ordinary I shares of £1 each
8
8
8
8
Ordinary J shares of £1 each
8
8
8
8
Ordinary K shares of £1 each
8
8
8
8
Ordinary L shares of £1 each
8
8
8
8
Ordinary M shares of £1 each
17
17
17
17
113
113
113
113

Each class of share issued is non-redeemable and ranks equally in terms of voting right and rights to participate in all approved dividend distributions for that class of share. Each class of share has equal rights to participate in any capital distribution on winding up.

25
Share premium account
Group
Company
2024
2023
2024
2023
£
£
£
£
At the beginning and end of the year
16,293,459
16,293,459
-
0
-
0
26
Profit and loss reserves
Group
Company
2024
2023
2024
2023
as restated
as restated
£
£
£
£
At the beginning of the year
5,515,515
2,283,790
9,110
-
Prior year adjustment
4,967
-
-
-
As restated
5,520,482
2,283,790
9,110
-
Profit for the year
3,945,079
3,236,692
3,201,358
9,110
At the end of the year
9,465,561
5,520,482
3,210,468
9,110
SWD GROUP HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 32 -
27
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2024
2023
£
£
Aggregate compensation
481,147
503,405
Other information

The company has taken advantage of FRS 102, section 33.1A available for transactions with wholly owned subsidiaries, and has chosen not to disclose related party transactions within the group.

28
Controlling party

No individual shareholder has control of the company.

29
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
3,945,079
3,236,692
Adjustments for:
Taxation charged
1,610,196
1,141,592
Finance costs
8,558
6,238
Investment income
(485,475)
(11,248)
Gain on disposal of tangible fixed assets
(2,633)
(26,238)
Amortisation and impairment of intangible assets
598,000
598,000
Depreciation and impairment of tangible fixed assets
1,155,313
1,056,356
Movements in working capital:
Increase in stocks
(1,114,328)
(1,729,893)
Increase in debtors
(962,212)
(30,772)
(Decrease)/increase in creditors
(783,186)
81,368
Cash generated from operations
3,969,312
4,322,095
30
Analysis of changes in net funds - group
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
9,498,684
3,040,445
12,539,129
Bank overdrafts
(1,500,000)
-
(1,500,000)
7,998,684
3,040,445
11,039,129
31
Prior period adjustment
SWD GROUP HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
31
Prior period adjustment
(Continued)
- 33 -
Changes to the balance sheet - group
As previously reported
Adjustment
As restated at 31 Mar 2023
£
£
£
Fixed assets
Tangible assets
18,627,774
(43,033)
18,584,741
Current assets
Debtors due within one year
449,996
48,000
497,996
Net assets
21,809,087
4,967
21,814,054
Capital and reserves
Profit and loss reserves
5,515,515
4,967
5,520,482
Changes to the profit and loss account - group
As previously reported
Adjustment
As restated
Period ended 31 March 2023
£
£
£
Cost of sales
(68,045,339)
4,967
(68,040,372)
Reconciliation of changes in equity - group
1 April
31 March
2022
2023
Notes
£
£
Adjustments to prior year
Motor vehicle grants
1
-
4,967
Equity as previously reported
18,577,362
21,809,087
Equity as adjusted
18,577,362
21,814,054
Analysis of the effect upon equity
Profit and loss reserves
-
4,967
Reconciliation of changes in profit for the previous financial period
2023
Notes
£
Adjustments to prior year
Motor vehicle grants
1
4,967
Profit as previously reported
3,231,725
Profit as adjusted
3,236,692
Reconciliation of changes in equity - company
The prior period adjustments do not give rise to any effect upon equity.
SWD GROUP HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
31
Prior period adjustment
(Continued)
- 34 -
Reconciliation of changes in profit for the previous financial period
2023
£
Adjustments to prior year
Total adjustments
-
Profit as previously reported
9,110
Profit as adjusted
9,110
Notes to reconciliation

Motor vehicles grant

An adjustment has been made to the prior year financial statements in respect of grants received totalling £48,000 as a contribution towards the cost of 3 motor vehicles.

 

The impact of this adjustment has been to reduce the cost of motor vehicles brought forward by £48,000 and reduce the depreciation charge for the prior year by £4,967.

 

Correspondingly, this has had the impact of improving the balance sheet position of the prior year by £4,967.

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