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Registered number: 07034815










BROADOAK SYSTEMS LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
BROADOAK SYSTEMS LIMITED
 

COMPANY INFORMATION


Directors
B D Amott 
D K Amott 
J F Broderick 
S C Heap 




Registered number
07034815



Registered office
Egginton Road
Hilton

Derby

Derbyshire

DE65 5FJ




Independent auditors
PKF Smith Cooper Audit Limited
Statutory Auditors

Prospect House

1 Prospect Place

Pride Park

Derby

DE24 8HG





 
BROADOAK SYSTEMS LIMITED
 

CONTENTS



Page
Group strategic report
1
Directors' report
2 - 3
Independent auditors' report
4 - 7
Consolidated statement of comprehensive income
8
Consolidated balance sheet
9
Company balance sheet
10
Consolidated statement of changes in equity
11
Company statement of changes in equity
12
Consolidated statement of cash flows
13
Consolidated analysis of net debt
14
Notes to the financial statements
15 - 28


 
BROADOAK SYSTEMS LIMITED
 

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The Directors present their strategic report on the Group for the year ended 31 December 2023. 
The Group deals solely in UK manufactured new and used motorhomes and touring caravans as well as providing servicing, repair work and sale of parts. 

Business review
 
We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the uncertainties we face. 
The board of directors' policies concerning product stock and unit profitability have been successful throughout the year and into 2024. As a consequence, the company has continued to generate acceptable profit and a strong order book in what is perceived to be worsening national market conditions. 

Principal risks and uncertainties
 
As for many businesses of our size, the business environment in which we operate remains challenging and over recent years the motorhomes and caravan market has become increasingly more competitive, and is always subject to the level and fluctuations of consumer spending in the economy.
With these risks in mind, we are aware that any plans for the future development of the business may be subject to unforeseen future events outside of our control.
Liquidity risk
The objective of the Group in managing liquidity risk is to ensure that it can meet its financial obligations as and when they fall due. The Group expects to meet its financial obligations through operating cash flows. In the event that the operating cash flows would not cover all the financial obligations the Group has credit facilities available. The Group is in a position to meet its commitments and obligations as they come due.
Interest rate risk
The Group utilises stocking loan facilities and, where applicable, overdraft facilities to support its working capital whose tenure depends on the nature of the asset and management's view of the future direction of interest rate.

Financial key performance indicators
 
Our KPIs include turnover and gross profit margin.

Other key performance indicators
 
Other key performance indicators include the turnover of staff and customer retention. 


This report was approved by the board on 25 September 2024 and signed on its behalf.



B D Amott
Director

Page 1

 
BROADOAK SYSTEMS LIMITED
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

Directors' responsibilities statement

The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:


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

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.

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

Results and dividends

The profit for the year, after taxation, amounted to £559,135 (2022 - £1,108,763).

During the year the Group paid dividends totalling £235,000 (2022: 235,000).

Directors

The directors who served during the year were:

B D Amott 
D K Amott 
J F Broderick 
S C Heap 

Future developments

There are no likely significant future developments in the Group's business. 

Financial instruments

The Group's operations expose it to a variety of financial risks that include the effects of changes in debt market prices, credit risk and liquidity risk. The Group has a risk management programme that seeks to limit the adverse effects on the financial performance of the Group by monitoring levels of debt finance and finance costs. The Group has implemented policies that require appropriate credit checks before a sale is made. The Group maintains a stocking loan facility to ensure the Group has sufficient funds for its operations.

Page 2

 
BROADOAK SYSTEMS LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Qualifying third party indemnity provisions

The Group maintains liability insurance for it's directors which is a qualifying third party indemnity provision for
the purpose of the Companies Act 2006.

Disclosure of information to auditors

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

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

Post balance sheet events

There have been no significant events affecting the Group since the year end.

Auditors

Under section 487(2) of the Companies Act 2006PKF Smith Cooper Audit Limited will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

This report was approved by the board on 25 September 2024 and signed on its behalf.
 





B D Amott
Director

Page 3

 
BROADOAK SYSTEMS LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BROADOAK SYSTEMS LIMITED
 

Opinion


We have audited the financial statements of Broadoak Systems Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2023, which comprise the Consolidated statement of comprehensive income, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of cash flows, the Consolidated statement of changes in equity, the Company statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


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


Basis for opinion


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


Conclusions relating to going concern


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


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


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


Page 4

 
BROADOAK SYSTEMS LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BROADOAK SYSTEMS LIMITED (CONTINUED)


Other information


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


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Group strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Directors' report.


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


adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 2, 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 Group's and the parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 5

 
BROADOAK SYSTEMS LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BROADOAK SYSTEMS LIMITED (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

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


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the Group and industry, we identified that the principal risk of fraud or non
compliance with laws and regulations related to:
•  management bias in respect of accounting estimates and judgements made;
•  management override of control;
•  posting of unusual journals or transactions;
•  cash based transactions;

We focused on those area that could give rise to a material misstatement in the Group financial statements.
Our procedures included, but were not limited to:
•  Enquiry of management and those charged with governance around actual and potential litigation and
 claims, including instances of non-compliance with laws and regulations and fraud;
•  Reviewing minutes of meetings of those charged with governance where available;
•  Reviewing legal expenditure in the year to identify instances of non-compliance with laws and regulations
 and fraud;
•  Reviewing financial statement disclosures and testing to supporting documentation to assess compliance
 with applicable laws and regulations;
•  Performing audit work over the risk of management override of controls, including testing of journal
 entries and other adjustments for appropriateness, evaluating the business rationale of significant
 transactions outside the normal course of business and reviewing accounting estimates for bias.


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


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


Use of our report
 

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


Page 6

 
BROADOAK SYSTEMS LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BROADOAK SYSTEMS LIMITED (CONTINUED)





Lucy Robinson (Senior statutory auditor)
for and on behalf of
PKF Smith Cooper Audit Limited
Statutory Auditors
Prospect House
1 Prospect Place
Pride Park
Derby
DE24 8HG

25 September 2024
Page 7

 
BROADOAK SYSTEMS LIMITED
 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
34,812,180
33,585,078

Cost of sales
  
(30,389,997)
(28,682,084)

Gross profit
  
4,422,183
4,902,994

Administrative expenses
  
(3,313,841)
(3,270,196)

Other operating income
 5 
-
147

Operating profit
 6 
1,108,342
1,632,945

Interest payable and similar expenses
 10 
(345,510)
(242,947)

Profit before taxation
  
762,832
1,389,998

Tax on profit
 11 
(203,697)
(281,235)

Profit for the financial year
  
559,135
1,108,763

Profit for the year attributable to:
  

Owners of the parent Company
  
559,135
1,108,763

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 15 to 28 form part of these financial statements.

Page 8

 
BROADOAK SYSTEMS LIMITED
REGISTERED NUMBER: 07034815

CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible fixed assets
 14 
-
70,779

Tangible fixed assets
 15 
636,618
553,037

  
636,618
623,816

Current assets
  

Stocks
 17 
10,550,985
8,230,666

Debtors: amounts falling due within one year
 18 
986,285
664,499

Cash at bank and in hand
 19 
694,438
564,680

  
12,231,708
9,459,845

Creditors: amounts falling due within one year
 20 
(10,359,919)
(7,924,847)

Net current assets
  
 
 
1,871,789
 
 
1,534,998

Total assets less current liabilities
  
2,508,407
2,158,814

Provisions for liabilities
  

Deferred taxation
 22 
(48,547)
(43,068)

Other provisions
 23 
(61,145)
(41,166)

Net assets
  
2,398,715
2,074,580


Capital and reserves
  

Called up share capital 
 24 
104
104

Share premium account
 25 
2,368
2,368

Profit and loss account
 25 
2,396,243
2,072,108

Equity attributable to owners of the parent Company
  
2,398,715
2,074,580


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 25 September 2024.




B D Amott
Director

The notes on pages 15 to 28 form part of these financial statements.

Page 9

 
BROADOAK SYSTEMS LIMITED
REGISTERED NUMBER: 07034815

COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Investments
 16 
1,224,557
1,224,557

  
1,224,557
1,224,557

Current assets
  

Debtors: amounts falling due within one year
 18 
100
100

  
100
100

Creditors: amounts falling due within one year
 20 
(1,222,185)
(1,222,185)

Net current liabilities
  
 
 
(1,222,085)
 
 
(1,222,085)

Total assets less current liabilities
  
2,472
2,472

  

  

Net assets
  
2,472
2,472


Capital and reserves
  

Called up share capital 
 24 
104
104

Share premium account
 25 
2,368
2,368

Profit for the year
  
235,000
235,000

Other changes in the profit and loss account

  

(235,000)
(235,000)

  
 
 
2,472
 
 
2,472


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 25 September 2024.


B D Amott
Director

The notes on pages 15 to 28 form part of these financial statements.

Page 10

 
BROADOAK SYSTEMS LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Share premium account
Profit and loss account
Equity attributable to owners of parent Company
Total equity

£
£
£
£
£


At 1 January 2022
104
2,368
1,198,345
1,200,817
1,200,817


Comprehensive income for the year

Profit for the year
-
-
1,108,763
1,108,763
1,108,763


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(235,000)
(235,000)
(235,000)



At 1 January 2023
104
2,368
2,072,108
2,074,580
2,074,580


Comprehensive income for the year

Profit for the year
-
-
559,135
559,135
559,135


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(235,000)
(235,000)
(235,000)


At 31 December 2023
104
2,368
2,396,243
2,398,715
2,398,715


The notes on pages 15 to 28 form part of these financial statements.

Page 11

 
BROADOAK SYSTEMS LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Share premium account
Profit and loss account
Total equity

£
£
£
£


At 1 January 2022
104
2,368
-
2,472


Comprehensive income for the year

Profit for the year
-
-
235,000
235,000


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(235,000)
(235,000)



At 1 January 2023
104
2,368
-
2,472


Comprehensive income for the year

Profit for the year
-
-
235,000
235,000


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(235,000)
(235,000)


At 31 December 2023
104
2,368
-
2,472


The notes on pages 15 to 28 form part of these financial statements.

Page 12

 
BROADOAK SYSTEMS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
559,135
1,108,763

Adjustments for:

Amortisation of intangible assets
70,779
70,779

Depreciation of tangible assets
64,241
49,200

Government grants
-
(147)

Interest paid
345,510
242,947

Taxation charge
203,697
281,235

(Increase) in stocks
(2,320,319)
(1,194,404)

(Increase) in debtors
(321,786)
(207,482)

Increase in creditors
191,272
7,774

Increase in provisions
19,979
-

Corporation tax (paid)
(283,664)
(280,064)

Net cash generated from operating activities

(1,471,156)
78,601


Cash flows from investing activities

Purchase of tangible fixed assets
(147,822)
(120,138)

Government grants received
-
147

HP interest paid
2,270
(134)

Net cash from investing activities

(145,552)
(120,125)

Cash flows from financing activities

Repayment of loans
-
(12,651)

Repayment of/new finance leases
(2,270)
(782)

Movements on invoice discounting
2,331,516
-

Dividends paid
(235,000)
(235,000)

Interest paid
(347,780)
(242,813)

Net cash used in financing activities
1,746,466
(491,246)

Net increase/(decrease) in cash and cash equivalents
129,758
(532,770)

Cash and cash equivalents at beginning of year
564,680
1,097,450

Cash and cash equivalents at the end of year
694,438
564,680


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
694,438
564,680


The notes on pages 15 to 28 form part of these financial statements.

Page 13

 
BROADOAK SYSTEMS LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023




At 1 January 2023
Cash flows
At 31 December 2023
£

£

£

Cash at bank and in hand

564,680

129,758

694,438

Debt due within 1 year

(6,652,522)

(2,333,772)

(8,986,294)

Finance leases

(2,270)

2,270

-


(6,090,112)
(2,201,744)
(8,291,856)

The notes on pages 15 to 28 form part of these financial statements.

Page 14

 
BROADOAK SYSTEMS LIMITED
 

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

1.


General information

Broadoak Systems Limited is a private company limited by shares incorporated in England, United Kingdom.  The address of the registered office is given in the company information page.  The Company's registered number is 07034815.
The nature of the Group's operations and principal activities are the sale of motorhomes and touring caravans.  The Company principal activity is that of holding company. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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

The Group's functional and presentational currency is GBP.  The financial statements are rounded to the nearest £. 

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

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Going concern

The directors have reviewed their forecasts and consider that they have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. The Group therefore continues to adopt the going concern basis in preparing its financial statements.

Page 15

 
BROADOAK SYSTEMS LIMITED
 

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

2.Accounting policies (continued)

 
2.3

Revenue

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

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Group has transferred the significant risks and rewards of ownership to the buyer;
the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue is recognised when goods are dispatched.
Rental Income
Rental income is recognised when it becomes receivable and in the period to which it relates.

 
2.4

Operating leases: the Group as lessee

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

 
2.5

Leased assets: the Group as lessee

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

 
2.6

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Consolidated statement of comprehensive income in the same period as the related expenditure.

 
2.7

Finance costs

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

Page 16

 
BROADOAK SYSTEMS LIMITED
 

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

2.Accounting policies (continued)

 
2.8

Pensions

Defined contribution pension plan

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

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

 
2.9

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

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

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

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

 
2.10

Intangible assets

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated Statement of Comprehensive Income over its useful economic life.

 
2.11

Tangible fixed assets

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

Page 17

 
BROADOAK SYSTEMS LIMITED
 

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

2.Accounting policies (continued)


2.11
Tangible fixed assets (continued)

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

Depreciation is provided on the following basis:

Leasehold Improvements
-
2.5% to 5% straight line.
Plant and machinery
-
15% reducing balance
Motor vehicles
-
25% reducing balance.

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

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

 
2.12

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.13

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to
its present location and condition.
Cost is calculated based on purchase price of caravans and motorhomes with parts and consumables being valued using average cost. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

 
2.14

Debtors

Short-term debtors are measured at transaction price, less any impairment. 

 
2.15

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. 
In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.16

Creditors

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

 
2.17

Financial instruments

The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Page 18

 
BROADOAK SYSTEMS LIMITED
 

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

2.Accounting policies (continued)

 
2.18

Dividends

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


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

There have been no significant judgements and estimates made in the preparation of these financial statements. 


4.


Turnover

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


2023
2022
£
£

Sale of goods
34,551,577
33,303,546

Rent receivable
136,174
134,318

Commissions receivable
124,429
147,214

34,812,180
33,585,078


All turnover arose within the United Kingdom.


5.


Other operating income

2023
2022
£
£

Government grants receivable
-
147



6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Depreciation
60,960
49,200

Defined contribution pension cost
51,441
43,144

Other operating lease rentals
191,560
167,198

Government grants
-
(147)

Amortisation
70,779
70,779

Page 19

 
BROADOAK SYSTEMS LIMITED
 

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

7.


Auditors' remuneration

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


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
13,000
12,000


8.


Employees

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


Group
Group
2023
2022
£
£


Wages and salaries
1,748,986
1,834,328

Social security costs
192,173
210,288

Cost of defined contribution scheme
51,441
43,144

1,992,600
2,087,760


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


        2023
        2022
            No.
            No.







Management and administration
18
17



Sales
22
23



Production
30
35

70
75

The Company has no employees other than the directors, who did not receive any remuneration (2022 - £NIL)

9.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
162,188
170,704

Group contributions to defined contribution pension schemes
12,570
12,131

174,758
182,835


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

Page 20

 
BROADOAK SYSTEMS LIMITED
 

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

10.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
347,780
242,813

Finance leases and hire purchase contracts
(2,270)
134

345,510
242,947


11.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
198,218
286,117

Adjustments in respect of previous periods
-
46

Total current tax
198,218
286,163

Deferred tax


Origination and reversal of timing differences
5,479
(4,928)


Taxation on profit on ordinary activities
203,697
281,235

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 23.52% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
762,832
1,389,998


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.52% (2022 - 19%)
179,418
264,100

Effects of:


Non-tax deductible amortisation of goodwill and impairment
16,654
13,448

Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
922
-

Remeasurement of deferred tax for changes in tax rates
324
(1,183)

Fixed asset differences
6,379
4,870

Total tax charge for the year
203,697
281,235

Page 21

 
BROADOAK SYSTEMS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
11.Taxation (continued)


Factors that may affect future tax charges

There are no factors that would affect the future tax charge.


12.


Dividends

2023
2022
£
£


Equity dividends
235,000
235,000


13.


Parent company profit for the year

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements. The profit after tax of the parent Company for the year was £235,000 (2022 - £235,000).


14.


Intangible assets

Group 





Goodwill

£



Cost


At 1 January 2023
884,738



At 31 December 2023

884,738



Amortisation


At 1 January 2023
813,959


Charge for the year on owned assets
70,779



At 31 December 2023

884,738



Net book value



At 31 December 2023
-



At 31 December 2022
70,779



Page 22

 
BROADOAK SYSTEMS LIMITED
 

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

15.


Tangible fixed assets

Group






Leasehold Improvements
Plant and machinery
Motor vehicles
Total

£
£
£
£



Cost 


At 1 January 2023
704,622
427,335
68,577
1,200,534


Additions
-
125,654
22,168
147,822



At 31 December 2023

704,622
552,989
90,745
1,348,356



Depreciation


At 1 January 2023
338,491
251,088
57,918
647,497


Charge for the year on owned assets
25,490
33,720
5,031
64,241



At 31 December 2023

363,981
284,808
62,949
711,738



Net book value



At 31 December 2023
340,641
268,181
27,796
636,618



At 31 December 2022
366,131
176,247
10,659
553,037


16.


Fixed asset investments

Group












Company





Investments in subsidiary companies

£



Cost or valuation


At 1 January 2023
1,224,557



At 31 December 2023
1,224,557




Page 23

 
BROADOAK SYSTEMS LIMITED
 

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

Subsidiary undertaking


The following was a subsidiary undertaking of the Company:

Name

Registered office

Class of shares

Holding

Don Amott Leisure Limited
Egginton Road Hilton, Derby DE65 5FJ
Ordinary
100%


17.


Stocks

Group
Group
2023
2022
£
£

Finished goods and goods for resale
10,550,985
8,230,666


The carrying value of stocks are stated net of impairment losses totalling £NIL (2022 - £66,000).


18.


Debtors

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Trade debtors
508,295
253,690
-
-

Other debtors
211,582
213,838
100
100

Prepayments and accrued income
266,408
196,971
-
-

986,285
664,499
100
100



19.


Cash and cash equivalents

Group
Group
2023
2022
£
£

Cash at bank and in hand
694,438
564,680


Page 24

 
BROADOAK SYSTEMS LIMITED
 

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

20.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Other loans
1,200,000
1,200,000
1,200,000
1,200,000

Stocking loan
7,786,294
5,452,522
-
-

Trade creditors
47,331
201,242
-
-

Corporation tax
198,461
286,163
-
-

Other taxation and social security
38,605
24,339
-
-

Obligations under finance lease and hire purchase contracts
-
2,270
-
-

Other creditors
926,468
741,018
22,185
22,185

Accruals and deferred income
162,760
17,293
-
-

10,359,919
7,924,847
1,222,185
1,222,185


Other loans relate to a loan from Don Amott Parks Limited, a company under common control.  The loan is secured by a fixed and floating charge over the assets of the Group.  The original terms of the loan have been amended by the lender and the loan is repayable on demand. 
In addition there is a joint and several corporate cross guarantee and indemnity of Don Amott Leisure Limited and Broadoak Systems Limited in the favour of the stock funding loan.
Finance leases and hire purchase contracts are secured against the assets to which they relate.
The stocking loans are secured by way of a fixed and floating charge over all of the assets of Don Amott Leisure and Broadoak Systems Limited. 


21.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

Group
Group
2023
2022
£
£

Within one year
-
2,270


22.


Deferred taxation

Page 25

 
BROADOAK SYSTEMS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
22.Deferred taxation (continued)


Group



2023


£






At beginning of year
(43,068)


Charged to profit or loss
(5,479)



At end of year
(48,547)

Company


2023






At end of year
-



Group
Group
2023
2022
£
£

Accelerated capital allowances
(55,709)
(43,068)

Short term timing differences
7,162
-

(48,547)
(43,068)


The amount of the net reversal of deferred tax expected to occur next year is relating to the reversal of
existing timing differences on tangible fixed assets is considered to be immaterial.


23.


Provisions


Group



Warranty provision

£





At 1 January 2023
41,166


Charged to profit or loss
19,979



At 31 December 2023
61,145

Page 26

 
BROADOAK SYSTEMS LIMITED
 

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

           23.Provisions (continued)


24.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



80 (2022 - 80) Ordinary shares of £1.00 each
80
80
24 (2022 - 24) Ordinary B shares of £1.00 each
24
24

104

104



25.


Reserves

Share premium account

Includes any premiums received on issue of share capital and is non-distributable. Any transaction costs associated with the issuing of shares are deducted from share premium. 

Profit and loss account

Includes all current and prior period distributable retained profits and losses. 


26.


Pension commitments

The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable to the fund and amounted to £51,441 (2022: £43,144). No contributions were payable to the fund at the balance sheet date (2022: £-).


27.


Commitments under operating leases

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


Group
Group
2023
2022
£
£

Not later than 1 year
194,880
194,880

Later than 1 year and not later than 5 years
779,520
779,520

Later than 5 years
2,533,440
2,728,320

3,507,840
3,702,720

28.Directors' personal guarantees

D Amott has provided a personal guarantee of £400,000 to the Group's bankers in relation to the Group's overdraft facility.

Page 27

 
BROADOAK SYSTEMS LIMITED
 

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

29.


Related party transactions


2023
2022
£
£

Sales to companies under common control
26,465
6,703
Purchases from companies under common control
112,483
5,543
Amounts due from companies under common control
38,867
65,796
Amounts due to companies under common control
106,595
34,673
Amounts due from shareholder of parent company
43,079
263,889

The Company has relied on the exemption available under FRS 102 from reporting transactions with group companies which are wholly owned.
The Directors consider there to be no employees that are regarded as key management.
Amounts due to companies under common control and participators are interest free and repayable on demand.


30.


Controlling party

The ultimate controlling party is D Amott by virtue of his controlling interest in the equity shares of the company.

Page 28