Company registration number 06299941 (England and Wales)
CLEGG HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
CLEGG HOLDINGS LIMITED
COMPANY INFORMATION
Directors
K Anderson
S M Giltrap
S J Blackburn
T S Richmond
Secretary
G J Russell
Company number
06299941
Registered office
Bishops House
42 High Pavement
The Lace Market
Nottingham
NG1 1HN
Auditor
UHY Hacker Young
14 Park Row
Nottingham
NG1 6GR
Solicitors
Browne Jacobson
Mowbray House
Castle Meadow Road
Nottingham
NG2 1BJ
CLEGG HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 6
Independent auditor's report
7 - 10
Group statement of comprehensive income
11
Group balance sheet
12 - 13
Company balance sheet
14
Group statement of changes in equity
15
Company statement of changes in equity
16
Group statement of cash flows
17
Notes to the financial statements
18 - 36
CLEGG HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

 

Principal activity

The principal activity of the company is that of a parent company of a group of companies engaged in the construction industry.

Business Review

2023 saw a 3.71% decrease in turnover (2022: 56.76% increase). Profit before tax decreased from £1,352,276 to £520,196.

 

The group’s performance is centred around its two main operating companies, Clegg Construction Limited and Clegg Food Projects Limited.

 

Within Clegg Construction Limited, strong trading through 2023 was held back by the completion of remaining fixed-price contracts secured in earlier years which had been affected by external factors that exerted unavoidable pressures on the cost of work and supply chain resources.

 

These final challenging projects had a cost base from 2020 and included student accommodation, care and residential projects which had been affected by market pressures throughout, including subcontractor failures.

 

However, with a focus on negotiated and repeat business tendering, along with selective supply-chain procurement, the business has generated a pipeline of well-performing contracts trading through 2023, 2024 and extending into 2025.

 

This pipeline of projects has been secured from a number of sectors providing resilience in the supply of work and funding streams; defence, education, residential, care, leisure and commercial with values ranging from £5m to £35m.

 

Within Clegg Food Projects Limited the previous year benefitted from some historic final account settlements, and therefore the directors considered the 2023 performance to be at normalised levels.

 

Capital spend within the food and drink sector remained buoyant throughout the year with continued strong demand from new and existing clients. The company continues to enjoy a market leading position within the sector.

Principal risks and uncertainties

The company and its subsidiary companies aim to minimise risks and uncertainties to the level of the market place in which it operates and achieve this through internal controls and review procedures.

The company and its subsidiary companies make sales and applications for payment on normal credit terms and manage related risks through its credit control procedures. The company does not hedge interest payments on any of its borrowings.

Key performance Indicators

The directors use a range of key performance indicators to evaluate the performance of the business. Of these, the level of sales and gross profit are the key factors. There was an overall increase in gross profit margin compared with the prior year at 3.6% of sales (2022: 3.5%).

CLEGG HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Future developments

Trading conditions have continued to improve within Clegg Construction Limited which has allowed negotiation and tendering of new work to be secured and delivered at increased profitably into 2024 and 2025.

 

Clegg Food Projects Limited has seen continued strong investment in the food and drink sectors, driven by innovation, the drive for more sustainable and processes and new product development.

 

Across the group, 95% of the 2024 forecast revenue and around 80% of the rolling 12-month forecast is secured, which gives the directors confidence around the forthcoming trading period.

Section 172 statement

As required by Section 172 of the Companies Act, a Director of a company must act in the way he or she considers, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole, and in doing so have regard, amongst other matters, to:

 

The Company's engagement with its stakeholders and consideration of their respective interests is as follows:

Employees

The directors ensured all employees were aware of the objectives and results of the company through presentations and meetings. It has also been their focus to provide a positive work environment for all employees with opportunities for all to grow and achieve their potential.

Customer and suppliers

The group collaborates with a variety of customers and our success depends on having the resources and skills necessary to guarantee a superior service level and product quality. The group has a longstanding relationship with local and international suppliers ensuring conformance of quality, cost competiveness and sourcing guarantee.

Community and environment

Clegg Holdings and its subsidiaries are important job contributors in our regions and invest in solutions to reduce our impact on the environment.

By order of the board

G J Russell
Secretary
13 September 2024
CLEGG HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

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

Results and dividends

The results for the year are set out on page 11.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

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

K Anderson
S M Giltrap
S J Blackburn
T S Richmond
Qualifying third party indemnity provisions

The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

Auditor

The auditor, UHY Hacker Young, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Energy and carbon report

The UK Government's Streamline Energy and Carbon Reporting (SECR) policy was implemented on 1 April 2019, this is the fourth time adoption of disclosures on energy and carbon. The table below represents the Group's energy use and associated greenhouse gas (GHG) emissions from electricity and fuel in the UK for the year ended 31 December 2023. The data covers all of the subsidiaries.

2023
2022
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
2,737,727
2,223,124
CLEGG HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
2023
2022
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
23.00
24.00
- Fuel consumed for owned transport
111.00
108.00
134.00
132.00
Scope 2 - indirect emissions
- Electricity purchased
180.00
100.00
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the group
296.00
272.00
Total gross emissions
610.00
504.00
Intensity ratio
Tonnes CO2e per £m turnover
3.83
3.04
Quantification and reporting methodology

The boundaries of this report are based on operational control. We report our emissions with reference to the latest Greenhouse Gas Protocol Corporate Accounting and Reporting Standard (GHG Protocol). In accordance with the 2018 Regulations, the energy use and associated greenhouse gas emissions are for those within the UK only that come under the operational control boundary. The 2023 UK Government GHG Conversion Factors for Company Reporting published by the UK Department for Environment Food & Rural Affairs (DEFRA) are used to convert energy use in our operations to emissions of CO2e. Carbon emission factors for purchased electricity calculated according to the ‘location-based grid average’ method.

 

This reflects the average emission of the grid where the energy consumption occurs. Data sources include billing, invoices and the Group’s internal systems. For the Cambridge and London offices, utilities are included in the rent, so benchmarking based on floor area against industry benchmarks has been used to provide estimated energy consumption at these sites. The Nottingham site is shared between all 3 companies so the energy use at this site is split evenly between them. For transport data where actual usage data (e.g. litres) was unavailable conversions were made using average fuel consumption factors to estimate the usage.

Intensity measurement

We have chosen to report our gross emissions against £m turnover. The value for the intensity ratio was 3.83 tCO2e per £m turnover (2022: 3.04).

CLEGG HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
Measures taken to improve energy efficiency

We are committed to responsible energy management and will practice energy efficiency throughout our organisation, wherever it is cost effective. We recognise that climate change is one of the most serious environmental challenges currently threatening the global community and we understand we have a role to play in reducing greenhouse gas emissions.

 

Energy efficiency actions taken in 2023 include:

• Further upgrades for LED & PIR light systems for the main office in Nottingham;

• Review of supply chain to commit to carbon reduction initiatives and become more sustainable;

• Increase the use of TEAMs meetings to help reduce emissions and energy use;

• Encourage the use of public transport where practicable;

• Encourage car share where practicable; and

• Introduce software systems across the Group, which reduces the need for paper and storage requirements.

Statement of directors' responsibilities

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

 

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

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the 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. They are 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.

CLEGG HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
By order of the board
G J Russell
Secretary
13 September 2024
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CLEGG HOLDINGS LIMITED
- 7 -
Opinion

We have audited the financial statements of Clegg Holdings Limted (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

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

 

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

INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CLEGG HOLDINGS LIMITED
- 8 -

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

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 directors' report.

 

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

Responsibilities of directors

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

INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CLEGG HOLDINGS LIMITED
- 9 -
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 the industry in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to the acts by the company, which were contrary to applicable laws and regulations including fraud, 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 and The Building Regulations 2010.

 

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 inflated revenue on the long term construction contracts and recognition of the profit on this work.

Audit procedures performed included:

 

 

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 transactions 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.

INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CLEGG HOLDINGS LIMITED
- 10 -

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.

Chris McKain (Senior Statutory Auditor)
For and on behalf of UHY Hacker Young
13 September 2024
Chartered Accountants
Statutory Auditor
CLEGG HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
2023
2022
Notes
£
£
Turnover
3
159,281,311
165,424,620
Cost of sales
(153,766,946)
(159,791,877)
Gross profit
5,514,365
5,632,743
Administrative expenses
(5,187,161)
(4,441,569)
Other operating income
223,351
216,864
Operating profit
4
550,555
1,408,038
Interest receivable and similar income
8
90,128
4,473
Interest payable and similar expenses
9
(176,016)
(60,235)
Amounts written off tangible fixed assets
10
(46,370)
-
Fair value gains on investment properties
14
101,899
-
0
Profit before taxation
520,196
1,352,276
Tax on profit
11
226,499
(190,431)
Profit for the financial year
26
746,695
1,161,845
Other comprehensive income
Revaluation of tangible fixed assets
73,606
-
0
Total comprehensive income for the year
820,301
1,161,845
Total comprehensive income for the year is all attributable to the owners of the parent company.

The Profit and Loss Account has been prepared on the basis that all operations are continuing operations.

CLEGG HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
13
1,525,021
1,536,125
Investment properties
14
3,515,000
2,330,000
5,040,021
3,866,125
Current assets
Stocks
18
-
1,083,101
Debtors
19
37,043,557
30,421,766
Cash at bank and in hand
3,769,056
6,811,273
40,812,613
38,316,140
Creditors: amounts falling due within one year
20
(40,294,091)
(36,801,124)
Net current assets
518,522
1,515,016
Total assets less current liabilities
5,558,543
5,381,141
Creditors: amounts falling due after more than one year
21
(1,026,310)
(1,185,596)
Provisions for liabilities
Deferred tax liability
(150,976)
(127,014)
Net assets
4,381,257
4,068,531
Capital and reserves
Called up share capital
25
4,796
4,796
Share premium account
26
3,635
3,635
Revaluation reserve
26
73,606
-
0
Capital redemption reserve
26
274
274
Own shares
26
(412,819)
(412,819)
Other reserve
26
(3,416,042)
(2,908,468)
Profit and loss reserves
26
8,127,807
7,381,113
Total equity
4,381,257
4,068,531
CLEGG HOLDINGS LIMITED
GROUP BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2023
31 December 2023
- 13 -
The financial statements were approved by the board of directors and authorised for issue on 13 September 2024 and are signed on its behalf by:
13 September 2024
K Anderson
Director
CLEGG HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 14 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
15
9,351,541
9,351,541
Current assets
Debtors
19
206,964
2,715,613
Cash at bank and in hand
-
0
1,926
206,964
2,717,539
Creditors: amounts falling due within one year
20
(8,858,479)
(11,828,677)
Net current liabilities
(8,651,515)
(9,111,138)
Net assets
700,026
240,403
Capital and reserves
Called up share capital
25
4,796
4,796
Share premium account
26
3,635
3,635
Capital redemption reserve
26
274
274
Own shares
26
(412,819)
(412,819)
Other reserve
26
(3,416,042)
(2,908,468)
Profit and loss reserves
26
4,520,182
3,552,985
Total equity
700,026
240,403

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 £967,197 (2022 - £1,000,001 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 by the board of directors and authorised for issue on 13 September 2024 and are signed on its behalf by:
13 September 2024
K Anderson
Director
Company Registration No. 06299941
CLEGG HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
Share capital
Share premium account
Revaluation reserve
Capital redemption reserve
Own shares
Other reserve
Profit and loss reserves
Total
£
£
£
£
£
£
£
£
Balance at 1 January 2022
4,796
3,635
-
0
274
(412,819)
(1,610,395)
6,219,268
4,204,759
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
-
-
-
-
1,161,845
1,161,845
Voluntary contributions to Employee Ownership Trust
-
-
-
-
(1,298,073)
-
(1,298,073)
Balance at 31 December 2022
4,796
3,635
-
0
274
(412,819)
(2,908,468)
7,381,113
4,068,531
Year ended 31 December 2023:
Profit for the year
-
-
-
-
-
-
746,695
746,695
Other comprehensive income:
Revaluation of tangible fixed assets
-
-
73,606
-
-
-
-
73,606
Total comprehensive income for the year
-
-
73,606
-
-
-
746,695
820,301
Voluntary contributions to Employee Ownership Trust
-
-
-
-
(507,574)
-
(507,574)
Balance at 31 December 2023
4,796
3,635
73,606
274
(412,819)
(3,416,042)
8,127,808
4,381,258
CLEGG HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
Share capital
Share premium account
Capital redemption reserve
Own shares
Other reserves
Profit and loss reserves
Total
£
£
£
£
£
£
£
Balance at 1 January 2022
4,796
3,635
274
(412,819)
(1,610,395)
2,552,984
538,475
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
-
-
-
1,000,001
1,000,001
Voluntary contributions to Employee Ownership Trust
-
-
-
-
(1,298,073)
-
(1,298,073)
Balance at 31 December 2022
4,796
3,635
274
(412,819)
(2,908,468)
3,552,985
240,403
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
-
-
-
967,197
967,197
Voluntary contributions to Employee Ownership Trust
-
-
-
-
(507,574)
-
(507,574)
Balance at 31 December 2023
4,796
3,635
274
(412,819)
(3,416,042)
4,520,182
700,026
CLEGG HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
31
(2,164,531)
355,234
Interest paid
(176,016)
(60,235)
Income taxes (paid)/refunded
(94,651)
124,426
Net cash (outflow)/inflow from operating activities
(2,435,198)
419,425
Investing activities
Purchase of tangible fixed assets
(32,366)
(90,850)
Proceeds on disposal of tangible fixed assets
2,079
26,819
Interest received
90,128
4,473
Net cash generated from/(used in) investing activities
59,841
(59,558)
Financing activities
Contribution to Employee Ownership Trust
(507,574)
(1,298,073)
Repayment of bank loans
(159,286)
(159,286)
Payment of finance leases obligations
-
(15,744)
Net cash used in financing activities
(666,860)
(1,473,103)
Net decrease in cash and cash equivalents
(3,042,217)
(1,113,236)
Cash and cash equivalents at beginning of year
6,811,273
7,924,509
Cash and cash equivalents at end of year
3,769,056
6,811,273
CLEGG HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
1
Accounting policies
Company information

Clegg Holdings Limted (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Bishops House, 42 High Pavement, The Lace Market, Nottingham, NG1 1HN.

 

The group consists of Clegg Holdings Limted 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 investment properties to fair value. The principal accounting policies adopted are set out below.

In preparing the separate financial statements of the company, advantage has been taken of the following disclosure exemptions available in FRS 102:

1.2
Basis of consolidation

The consolidated financial statements incorporate those of Clegg Holdings Limited and all of its subsidiaries. The results of subsidiaries are consolidated for the periods from the date on which control passed. Business combinations are accounted for under the purchase method.

1.3
Going concern

The directors continue to closely monitor the cash position on current construction projects measured against project budgets and forecasts, which are also regularly reviewed as part of the monitoring of on - site project performance. Final account negotiations are also closely monitored and scrutinised on a regular basis along with working capital requirements.

 

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

CLEGG HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
1.4
Turnover

Revenue comprises of the value of contracting work executed during the year plus the invoiced value of other sales. The value of contracted work is based on measured valuations, incorporating profit earned to the valuation date, taking into account cost to completion and any anticipated losses.

 

The amount by which recorded revenue on uncompleted contracts is in excess of payments on account is classified as amounts recoverable on contracts and separately disclosed in debtors.

 

Cash received on account of contracts is deducted from amounts recoverable on contracts. Such amounts which have been received and exceed amounts recoverable are included in creditors.

 

Rental income is accounted for on a receivable basis under the terms of ongoing leases.

1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, or valuation for freehold properties, 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 buildings
8 to 50 years
Plant and equipment
3 to 5 years
Fixtures and fittings
4 years
Computers
4 years
Motor vehicles
4 years

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.

Properties whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is usually considered to be their market value.

 

Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in profit or loss or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such gains and loss are recognised in profit or loss.

1.6
Investment properties

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.

CLEGG HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -

Properties held in stock have been transferred to investment properties within the year as the directors believe this better reflects their use as properties held for the purpose to earn rentals and/or for capital appreciation.

1.7
Fixed asset investments

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

1.8
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).

1.9
Cash and cash equivalents

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

1.10
Financial instruments

The 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.

Basic financial assets and liabilities

Basic financial assets and liabilities, which include debtors, creditors and cash and bank balances, are initially measured at transaction price. Financial assets or liabilities classified as receivable within one year are not amortised.

1.11
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. 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.

 

CLEGG HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required

 

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.

 

Clegg Employee Ownership Trust operates for the benefit of the employees. Further detail can be found in note 26.

1.13
Retirement benefits

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

1.14
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease.

CLEGG HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
2
Judgements and key sources of estimation uncertainty

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

 

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

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Long term contracts

The group uses the percentage-of-completion method in accounting for its construction contracts. Use of the percentage of completion method requires the group to estimate the construction performed to date as a proportion of the total construction to be performed. The estimation of the revenue and profit recognition by reference to the stage of completion can involve considerable judgement around future margins. The percentage of completion is determined using stage valuations provided by third party chartered surveyors and therefore provides an independent reliable valuation.

 

The group reviews these estimates and assumptions as each contract progresses. To the extent that the amounts receivable on the contracts are different to the amounts recorded such differences will impact revenue and cost of sales in the period in which such determination is made.

Investment properties

The directors consider that the investment properties are held at their fair value and no impairment is required. Whilst there is a level of judgement involved with the valuation, the current value of the properties is based on independent valuations. These valuation are considered to be a true reflection of the value of the properties as assets held for the purposes of receiving rental income.

Recoverability of retentions

The retentions held due from customers in respect of long term construction contracts are included within trade debtors. Retention balances are regularly reviewed by the directors to assess their recoverability. Whilst the retention balances recognised at the year end are all considered to be recoverable, there is a degree of judgement regarding the customer's ability to pay.

Ongoing long term contract claims

A small number of contracts have ongoing claims against the subcontractors and or the customer, whilst legal advice has been taken on the majority of these claims there is still a degree of judgement on the recoverability of these claims. The directors believe the claims recognised as at the year end to be fully recoverable.

Employee Ownership Trust Contributions

It is considered that any contributions to the Clegg Employee Ownership Trust ("Clegg EOT"), are voluntary. Therefore, there is no legal obligation to accrue the future funding.

CLEGG HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
3
Turnover

An analysis of the group's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Contract revenue arising on construction contracts
159,281,311
165,424,620

The whole of turnover is attributable to activity within the United Kingdom.

4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
68,754
73,356
Profit on disposal of tangible fixed assets
(127)
(3,547)
Amortisation of intangible assets
-
144,591
Operating lease charges
290,562
237,862
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
6,250
6,000
Audit of the financial statements of the company's subsidiaries
51,750
48,500
58,000
54,500
For other services
Taxation compliance services
10,500
10,000
All other non-audit services
-
3,500
10,500
13,500
CLEGG HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Building
86
87
-
-
Admin
34
35
5
5
Total
120
122
5
5

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
7,837,132
7,522,664
-
0
-
0
Social security costs
1,003,397
1,001,660
-
-
Pension costs
548,867
488,103
-
0
-
0
9,389,396
9,012,427
-
0
-
0
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
535,702
525,847
Company pension contributions to defined contribution schemes
12,545
44,248
548,247
570,095
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
210,525
190,013
CLEGG HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
7
Directors' remuneration
(Continued)
- 25 -

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2022 - 3).

8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
90,128
4,473
9
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
143,037
58,786
Interest on finance leases and hire purchase contracts
-
1,449
Other interest
32,979
-
Total finance costs
176,016
60,235
10
Amounts written off investments
2023
2022
£
£
Revaluation of tangible fixed assets
(46,370)
-
11
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
(66,429)
186,875
Adjustments in respect of prior periods
(185,013)
144
Total current tax
(251,442)
187,019
Deferred tax
Origination and reversal of timing differences
24,943
3,412
Total tax (credit)/charge
(226,499)
190,431
CLEGG HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
11
Taxation
(Continued)
- 26 -

The actual (credit)/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
520,196
1,352,276
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
122,350
256,932
Tax effect of expenses that are not deductible in determining taxable profit
35,715
6,741
Adjustments in respect of prior years
(185,013)
144
Group relief
-
0
547
Research and development tax credit
(250,000)
(100,000)
Deferred tax adjustments in respect of prior years
21,928
173
Non-deductible amortisation of goodwill
-
0
27,470
Deferred tax not recognised
21,345
-
0
Other adjustments
8,674
(1,576)
Remeasurement of deferred tax for changes in tax rates
(1,498)
-
Taxation (credit)/charge
(226,499)
190,431

The prior year adjustments predominantly relates to research and development claims.

12
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 January 2023 and 31 December 2023
3,002,591
Amortisation and impairment
At 1 January 2023 and 31 December 2023
3,002,591
Carrying amount
At 31 December 2023
-
0
At 31 December 2022
-
0
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.
CLEGG HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
13
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
£
Cost or valuation
At 1 January 2023
1,680,460
35,477
183,540
13,921
204,013
17,320
2,134,731
Additions
-
0
-
0
10,086
-
0
17,880
4,400
32,366
Disposals
-
0
-
0
-
0
-
0
(2,037)
-
0
(2,037)
Revaluation
(270,460)
-
0
-
0
-
0
-
0
-
0
(270,460)
At 31 December 2023
1,410,000
35,477
193,626
13,921
219,856
21,720
1,894,600
Depreciation and impairment
At 1 January 2023
295,063
35,477
102,708
10,959
151,873
2,526
598,606
Depreciation charged in the year
14,595
-
0
26,388
1,067
22,374
4,330
68,754
Eliminated in respect of disposals
-
0
-
0
-
0
-
0
(85)
-
0
(85)
Revaluation
(297,696)
-
0
-
0
-
0
-
0
-
0
(297,696)
At 31 December 2023
11,962
35,477
129,096
12,026
174,162
6,856
369,579
Carrying amount
At 31 December 2023
1,398,038
-
0
64,530
1,895
45,694
14,864
1,525,021
At 31 December 2022
1,385,397
-
0
80,832
2,962
52,140
14,794
1,536,125
The company had no tangible fixed assets at 31 December 2023 or 31 December 2022.
CLEGG HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -

The Bishop's House property was valued at £1,000,000 on 14 September 2023 by independent valuers, Knight Frank, who are not connected with the company. The valuation conforms to International Valuation Standards.

 

The Bloomsgrove Road property was valued at £410,000 on 4 December 2023 by independent valuers, Knight Frank, who are not connected with the company. The valuation conforms to International Valuation Standards.

 

Land and buildings are carried at valuation. If land and buildings were measured using the cost model, the carrying amounts would have been approximately £478,976 (2022 - £482,136), being cost £777,199 (2022 - £777,199) and depreciation £298,223 (2022 - £295,063).

14
Investment property
Group
Company
2023
2023
£
£
Fair value
At 1 January 2023
2,330,000
-
Transfers from inventories
1,083,101
-
Net gains through fair value adjustments
101,899
-
At 31 December 2023
3,515,000
-

The fair value of the investment property at £2,330,000 was carried out at 4 March 2020 by Colliers International Chartered Surveyors, who are not connected with the company. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.

 

After transfer of the properties from inventories (note 18) they were valued at £1,185,000 in September 2023 by Knight Frank, who are not connected with the group. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.

 

The directors consider the valuation of the investment property continues to remain reasonable.

15
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
16
-
0
-
0
9,351,541
9,351,541
CLEGG HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
16
Subsidiaries

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

Name of undertaking
Address
Nature of business
Class of
% Held
shares held
Direct
Indirect
Clegg Accommodation Solutions Limited
England and Wales
Builders and civil engineering contractors
Ordinary
-
100.00
Clegg Construction Limited
England and Wales
Builders and civil engineering contractors
Ordinary
-
100.00
Clegg EBT Limited
England and Wales
Dormant
Ordinary
100.00
-
Clegg Food Projects Limited
England and Wales
Builders and civil engineering contractors
Ordinary
-
100.00
Clegg Group Limited
England and Wales
Builders and civil engineering contractors
Ordinary
-
100.00
Clegg Small Projects Limited
England and Wales
Builders and civil engineering contractors
Ordinary
-
100.00
Clegg Special Projects Limited
England and Wales
Dormant
Ordinary
-
100.00
D E Clegg Holdings Limited
England and Wales
Holding Company
Ordinary
100.00
-
J.W.Engineering Limited
England and Wales
Structural engineering
Ordinary
-
100.00
Nottsview Limited
England and Wales
Builders and civil engineering contractors
Ordinary
100.00
-
Nutbrook Developments Limited
England and Wales
Dormant
Ordinary
-
100.00
Kew Medical Limited
England and Wales
Property investment and development
Ordinary
-
100.00
Castlegate 608 Limited
England and Wales
Dormant
Ordinary
100.00
-

Registered office addresses (all UK unless otherwise indicated):

1
Bishops House, 42 High Pavement, The Lace Market, Nottingham, NG1 1HN
17
Financial instruments
Group
Company
2023
2022
2023
2022
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
21,332,669
17,076,024
n/a
n/a
Carrying amount of financial liabilities
Measured at amortised cost
34,455,805
32,012,870
n/a
n/a

Financial asset debt instruments measured at amortised cost represents trade debtors, amounts owed by related parties, amounts owed by the shareholders and other debtors.

 

Financial liabilities measured at amortised cost represents bank loans, trade creditors, other creditors and accruals.

CLEGG HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
18
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Properties held for sale
-
0
1,083,101
-
0
-
0

The properties held for sale have been transferred to investment properties (note 14) as the directors believe that this better reflects their ongoing use.

19
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
18,589,924
16,019,925
-
0
-
0
Gross amounts owed by contract customers
15,514,174
13,196,641
-
0
-
0
Corporation tax recoverable
176,014
89,336
-
0
-
0
Amounts owed by group undertakings
-
-
-
2,715,613
Other debtors
2,742,747
1,056,100
206,964
-
0
Prepayments and accrued income
20,698
58,783
-
0
-
0
37,043,557
30,420,785
206,964
2,715,613
Amounts falling due after more than one year:
Deferred tax asset (note 23)
-
0
981
-
0
-
0
Total debtors
37,043,557
30,421,766
206,964
2,715,613

Included within group trade debtors is an amount of £2,812,221 (2022 - £2,621,297) relating to retentions due over 1 year.

CLEGG HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
20
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
22
159,286
159,286
-
0
-
0
Trade creditors
30,679,552
28,430,508
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
8,858,479
11,828,013
Corporation tax payable
5,478
349,160
-
0
664
Other taxation and social security
6,859,118
5,624,691
-
-
Other creditors
2,410,713
2,108,490
-
0
-
0
Accruals and deferred income
179,944
128,989
-
0
-
0
40,294,091
36,801,124
8,858,479
11,828,677

Included within group other creditors is an amount of £1,418,379 (2022 - £1,234,241) relating to supply chain finance.

21
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
22
1,026,310
1,185,596
-
0
-
0

For details of securities over bank and other loans, see note 22.

Amounts included above which fall due after five years are as follows:
Payable by instalments
484,641
568,927
-
-
22
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
1,185,596
1,344,882
-
0
-
0
Payable within one year
159,286
159,286
-
0
-
0
Payable after one year
1,026,310
1,185,596
-
0
-
0
CLEGG HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
22
Loans and overdrafts
(Continued)
- 32 -

The total amount of outstanding loans at the year end was £1,185,596 (2022 - £1,344,882). The full loan is secured over properties held by the group. Part of these loans £279,525 (2022 - £354,525) are also secured by way of cross guarantees over the assets of Clegg Holdings Limited group of companies. There are two loans which attract interest at a rate of 2.25% being £279,525 (2022 - £354,525) and 3.2% being £906,071 (2022 - £990,357) above LIBOR. The loans are repayable in full by 2026 and 2025 respectively.

 

The 3.2% loan repayable in 2025 was repaid in full in June 2024.

23
Deferred taxation

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

Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Group
£
£
£
£
Accelerated capital allowances
65,500
70,671
-
581
Tax losses
-
-
-
400
Revaluations
85,476
56,343
-
-
150,976
127,014
-
981
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
126,033
-
Charge to profit or loss
24,943
-
Liability at 31 December 2023
150,976
-

The deferred tax liability set out above relating to accelerated capital allowances is expected to reverse within 12 months.

CLEGG HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 33 -
24
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
548,867
488,103

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. At the balance sheet, there are pension contributions due of £70,710 (2022 - £76,478).

25
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
4,796
4,796
4,796
4,796

The ordinary shares have full voting, dividend and capital distribution rights and are not redeemable.

26
Reserves
Share premium

Includes the premium on issue of equity shares, net of any issue costs.

Revaluation reserve

The revaluation reserve arose on revaluations of properties.

Capital redemption reserve

The capital redemption reserve contains the nominal value of own shares that have been acquired by the company and cancelled.

Own shares

The value of own shares represents the consideration paid on behalf of the Clegg Employee Benefit Trust ("Clegg EBT") (which is both sponsored by and ultimately controlled by Clegg Holdings Limited) to acquire shares of Clegg Holdings Limited. These shares are held by the Trust for the main purpose of fulfilling employee share options that have been granted under the rules of the Enterprise Management Incentive scheme.

Other reserves

During the year, voluntary contributions were made to the Clegg Employee Ownership Trust ("Clegg EOT"). The value in other reserves represents the cash and other costs paid by the group for the purchase of the shares in Clegg Holdings Limited, by the Clegg EOT. Similarly, voluntary cash contributions have been made post year end of £nil (2022: £507,574). The group has a commercial obligation to fund future deferred payments, providing sufficient funding and reserves are available to do so.

CLEGG HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
26
Reserves
(Continued)
- 34 -
Profit and loss reserves

Profit and loss account represents cumulative profit or losses, net of dividends paid and other adjustments.

Distributable reserves at 31 December 2023 in respect of the Group totals £4,298,946 (2022 - £4,059,826). Distributable reserves at 31 December 2023 in respect of the Company totals £691,321 (2022 - £231,968). This takes into account the balances included in the Profit and loss reserve, Own shares reserve and the Other reserve.

27
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
235,217
113,683
-
-
Between two and five years
273,772
119,058
-
-
508,989
232,741
-
-
Lessor

The operating leases wholly represents leases to third parties. The leases are negotiated with various terms in terms of length and break clause.

At the reporting end date the group had contracted with tenants for the following minimum lease payments:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
170,516
170,516
-
-
Between two and five years
617,564
639,064
-
-
In over five years
1,075,529
1,224,552
-
-
1,863,609
2,034,132
-
-
CLEGG HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 35 -
28
Related party transactions

Key Management Personnel

Key Management personnel are deemed to be the directors of the group and the directors of the subsidiary companies. The total combined remuneration paid to key management personnel for the year was £1,433,351 (2022 - £1,345,817).

 

Related Parties

During the year £1,050,383 of the loan due to the Group from Clegg Developments Limited was repaid, and a further £180,000 was written off. Clegg Developments Limited is a company with a common director.

 

The group has taken advantage of the exemption available under section 1AC.35 of FRS 102, from disclosing transactions entered into between two or more wholly-owned members of the group.

29
Controlling party

Clegg Holdings Limited is now controlled by Clegg Employee Ownership Trust, see note 26.

30
Directors' transactions

During the year T S Richmond, a director of Clegg Holdings Limited, carried out consultancy work for the group. Total fees charged amounted to £14,000 (2022 - £16,330).

31
Cash (absorbed by)/generated from group operations
2023
2022
£
£
Profit for the year after tax
746,695
1,161,845
Adjustments for:
Taxation (credited)/charged
(226,499)
190,431
Finance costs
176,016
60,235
Investment income
(90,128)
(4,473)
Gain on disposal of tangible fixed assets
(127)
(3,547)
Fair value gain on investment properties
(101,899)
-
0
Amortisation and impairment of intangible assets
-
144,591
Depreciation and impairment of tangible fixed assets
68,754
73,356
Other gains and losses
46,370
-
Movements in working capital:
Increase in debtors
(6,536,094)
(6,208,649)
Increase in creditors
3,752,381
4,941,445
Cash (absorbed by)/generated from operations
(2,164,531)
355,234
CLEGG HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 36 -
32
Analysis of changes in net funds - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
6,811,273
(3,042,217)
3,769,056
Borrowings excluding overdrafts
(1,344,882)
159,286
(1,185,596)
5,466,391
(2,882,931)
2,583,460
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