Company registration number 09921473 (England and Wales)
THE HARRY LEVY GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
THE HARRY LEVY GROUP LIMITED
COMPANY INFORMATION
Directors
H J Levy
M Levy
N Levy
Company number
09921473
Registered office
Unit 6
Patricia Way
Pysons Road Industrial Estate
Broadstairs
Kent
United Kingdom
CT10 2LE
Auditor
Azets Audit Services
Laurel House
173 Chorley New Road
Bolton
United Kingdom
BL1 4QZ
THE HARRY LEVY GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 33
THE HARRY LEVY GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 1 -
The directors present the strategic report for the year ended 30 April 2024.
Fair review of the business
In May 2023, the group purchased the freehold property and trade of a coastal arcade in Thornton-Cleveleys. The acquisition was financed by a bank loan which is being repaid over 2 years. Group turnover rose by 3% during the year, turnover from new arcade additions during this & the prior year supporting a drop in sales of imported machines.
Principal risks and uncertainties
The principal risks and uncertainties associated with the business have always been the general UK economy, changes in disposable income and the weather during key trading periods.
The group’s exposure to financial risk is managed as follows:-
Liquidity and cashflow risk
The group finances its operations through the generation of cash from operating activities and manages its cash requirements using cash flow forecasts and annual budgets.
Credit risk
All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are reviewed on a regular basis and provision is made for doubtful debts when required.
Interest rate risk
The group is exposed to cash flow interest rate risk on floating rate bank overdrafts and loans.
Foreign Currency Risk
The principal foreign currency exposure arises from trading with overseas companies. This exposure may be hedged in order to fix the cost, via the use of foreign exchange forward contracts.
Key performance indicators
The group’s key financial and other performance indicators during the year were as follows:
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THE HARRY LEVY GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -
Promoting the success of the company
Section 172 of the Companies Act 2006 requires Directors to consider the interests of stakeholders in their decision-making. This statement outlines how the Directors adhere to the matters set out in Section 172 while fulfilling their roles.
Our responsibilities extend to our employees, customers, suppliers, local communities and the environment. We engage with our stakeholders in various ways, including:
Employees
Our employees are key to our future success and we are committed to investing in recruitment, training and development and staff welfare. The group's policy is to consult and discuss with employees, through information bulletins, staff councils and at meetings, matters likely to affect employees' interests to maintain strong relations and effective communication.
The group supports the employment of disabled people wherever reasonably possible. Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
The Employee Assistance Programme, which provides support for our employees’ mental and physical well-being, is actively promoted to all our staff.
Customers
Our commitment to customer satisfaction is paramount, whether that be in respect of our business customers, arcade partners or the general public. We collaborate closely with our customers, understanding their unique needs and preferences, and endeavour to provide an enthralling product offering and exceptional service quality.
Suppliers
We have a long-standing relationship with all of our major suppliers and they play a key part in enabling us to deliver quality products and services to our customers. By promoting sustainability and adherence to high standards, we work with our suppliers to develop and source the best products and services for our customers.
Local Communities
We recognise our responsibilities towards the communities where we operate & actively contribute to their welfare and growth as far as possible.
Environment
We are committed to reducing our carbon footprint, conserving natural resources, and promoting environmental sustainability throughout our operations.
By prioritizing the interests of our stakeholders and engaging with them proactively, we aim to foster trust, create shared value, and drive sustainable growth for the benefit of all.
H J Levy
Director
30 October 2024
THE HARRY LEVY GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 3 -
The directors present their annual report and financial statements for the year ended 30 April 2024.
Principal activities
The principal activity of the group was that of the manufacture, distribution and operation of amusement and gaming machines, and the operation of arcades.
The principal activity of the company was that of a holding company and property investment company.
Results and dividends
The results for the year are set out on page 8.
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:
H J Levy
M Levy
N Levy
Auditor
The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Energy and carbon report
The group operates below the thresholds for carbon and energy reporting on an individual component basis and therefore is exempt from disclosing a carbon and energy report.
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:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
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.
THE HARRY LEVY GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 4 -
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.
Going concern
The financial statements are prepared under the going concern basis. The directors have a reasonable expectation that the group has adequate resources to continue in operational existence for a period of 12 months from the date of approval of these financial statements. Accordingly, they continue to adopt the going concern basis in preparing these financial statements.
On behalf of the board
H J Levy
Director
30 October 2024
THE HARRY LEVY GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THE HARRY LEVY GROUP LIMITED
- 5 -
Opinion
We have audited the financial statements of The Harry Levy Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2024 which comprise the group statement of comprehensive, 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 cashflows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 the parent company's affairs as at 30 April 2024 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.
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.
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:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
THE HARRY LEVY GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THE HARRY LEVY GROUP LIMITED
- 6 -
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:
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, 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.
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.
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.
THE HARRY LEVY GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THE HARRY LEVY GROUP LIMITED
- 7 -
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the entity through enquiry and inspection;
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 bias and 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 indicators of potential 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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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.
Graham Rigby (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
30 October 2024
Chartered Accountants
Statutory Auditor
Laurel House
173 Chorley New Road
Bolton
United Kingdom
BL1 4QZ
THE HARRY LEVY GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
36,645,863
35,433,836
Cost of sales
(26,699,368)
(25,804,422)
Gross profit
9,946,495
9,629,414
Distribution costs
(410,826)
(406,240)
Administrative expenses
(7,338,515)
(7,078,885)
Other operating income
237,956
246,074
Operating profit
4
2,435,110
2,390,363
Interest receivable and similar income
47,220
17,064
Interest payable and similar expenses
8
(200,029)
(143,141)
Fair value gains and losses on investment properties
12
165,000
400,000
Profit before taxation
2,447,301
2,664,286
Tax on profit
9
(493,748)
(604,493)
Profit for the financial year
26
1,953,553
2,059,793
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
THE HARRY LEVY GROUP LIMITED
GROUP BALANCE SHEET
AS AT
30 APRIL 2024
30 April 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
10
308,191
397,639
Tangible assets
11
12,198,539
10,702,942
Investment property
12
3,945,000
3,780,000
16,451,730
14,880,581
Current assets
Stocks
15
7,685,942
5,248,034
Debtors
16
6,957,584
8,979,135
Cash at bank and in hand
4,782,395
3,147,695
19,425,921
17,374,864
Creditors: amounts falling due within one year
17
(13,368,577)
(11,491,494)
Net current assets
6,057,344
5,883,370
Total assets less current liabilities
22,509,074
20,763,951
Creditors: amounts falling due after more than one year
18
(2,099,260)
(2,604,897)
Provisions for liabilities
Provisions
21
973,876
973,876
Deferred tax liability
23
955,930
658,723
(1,929,806)
(1,632,599)
Net assets
18,480,008
16,526,455
Capital and reserves
Called up share capital
25
1,249,900
1,249,900
Capital redemption reserve
26
766,694
766,694
Profit and loss reserves
26
16,463,414
14,509,861
Total equity
18,480,008
16,526,455
The financial statements were approved by the board of directors and authorised for issue on 30 October 2024 and are signed on its behalf by:
30 October 2024
H J Levy
Director
Company registration number 09921473 (England and Wales)
THE HARRY LEVY GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 30 APRIL 2024
30 April 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
560,000
560,000
Investment property
12
3,945,000
3,780,000
Investments
13
3,784,396
3,784,396
8,289,396
8,124,396
Current assets
Debtors
16
2,682,421
3,150,617
Cash at bank and in hand
1,027,994
271,477
3,710,415
3,422,094
Creditors: amounts falling due within one year
17
(55,154)
(28,909)
Net current assets
3,655,261
3,393,185
Total assets less current liabilities
11,944,657
11,517,581
Creditors: amounts falling due after more than one year
18
(1,574,574)
(1,574,574)
Provisions for liabilities
Deferred tax liability
23
303,648
337,669
(303,648)
(337,669)
Net assets
10,066,435
9,605,338
Capital and reserves
Called up share capital
25
1,249,900
1,249,900
Capital redemption reserve
26
766,694
766,694
Profit and loss reserves
26
8,049,841
7,588,744
Total equity
10,066,435
9,605,338
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 £461,097 (2023 - £551,338 profit).
The financial statements were approved by the board of directors and authorised for issue on 30 October 2024 and are signed on its behalf by:
30 October 2024
H J Levy
Director
Company registration number 09921473 (England and Wales)
THE HARRY LEVY GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 11 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 May 2022
1,249,900
766,694
12,450,068
14,466,662
Year ended 30 April 2023:
Profit and total comprehensive income
-
-
2,059,793
2,059,793
Balance at 30 April 2023
1,249,900
766,694
14,509,861
16,526,455
Year ended 30 April 2024:
Profit and total comprehensive income
-
-
1,953,553
1,953,553
Balance at 30 April 2024
1,249,900
766,694
16,463,414
18,480,008
THE HARRY LEVY GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 12 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 May 2022
1,249,900
766,694
7,037,406
9,054,000
Year ended 30 April 2023:
Profit and total comprehensive income for the year
-
-
551,338
551,338
Balance at 30 April 2023
1,249,900
766,694
7,588,744
9,605,338
Year ended 30 April 2024:
Profit and total comprehensive income
-
-
461,097
461,097
Balance at 30 April 2024
1,249,900
766,694
8,049,841
10,066,435
THE HARRY LEVY GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
31
6,368,733
6,178,275
Interest paid
(200,029)
(143,141)
Net cash inflow from operating activities
6,168,704
6,035,134
Investing activities
Purchase of intangible assets
(80,000)
-
Purchase of tangible fixed assets
(4,546,456)
(5,800,066)
Proceeds from disposal of tangible fixed assets
211,947
271,282
Interest received
47,220
17,064
Net cash used in investing activities
(4,367,289)
(5,511,720)
Financing activities
Net movement in bank and other loans
(158,099)
(1,312,852)
Payment of finance leases obligations
(8,616)
(42,855)
Net cash used in financing activities
(166,715)
(1,355,707)
Net increase/(decrease) in cash and cash equivalents
1,634,700
(832,293)
Cash and cash equivalents at beginning of year
3,147,695
3,979,988
Cash and cash equivalents at end of year
4,782,395
3,147,695
THE HARRY LEVY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 14 -
1
Accounting policies
Company information
The Harry Levy Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Unit 6, Patricia Way, Pysons Road Industrial Estate, Broadstairs, Kent, United Kingdom, CT10 2LE.
The group consists of The Harry Levy Group Limited and all of its subsidiaries.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of investment properties. The principal accounting policies adopted are set out below.
1.2
Basis of consolidation
The consolidated financial statements incorporate those of The Harry Levy Group Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.
All financial statements are made up to 30 April 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
1.3
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.
1.4
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from the provision of services is recognised when the service has been provided, the amount of revenue can be reliably measured and it is probable that the economic benefits associated with the
transaction will flow to the entity.
THE HARRY LEVY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 15 -
1.5
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is between 5 and 10 years.
1.6
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
not depreciated
Leasehold land and buildings
straight line over the remaining lease term
Amusement machines
2 to 8 years straight line
Plant, equipment, fixtures and fittings
4 to 8 years straight line
Computer equipment
4 years straight line
Motor vehicles
4 years straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
The company does not charge depreciation on its freehold property on the basis that the residual value of the property is so high that any annual depreciation would be immaterial.
1.7
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is measured using the fair value model and stated at its fair value as at the reporting end date. The surplus or deficit on revaluation is recognised in the profit and loss account.
1.8
Fixed asset investments
Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.9
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).
Recoverable amount is the higher of fair value less costs to sell and value in use.
1.10
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Work in progress and finished goods include labour and attributable overheads.
THE HARRY LEVY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 16 -
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss.
1.11
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
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 company's cash management.
1.12
Financial instruments
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Impairment of financial assets
Financial assets are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
THE HARRY LEVY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 17 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
1.13
Equity instruments
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
1.14
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
THE HARRY LEVY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 18 -
1.15
Provisions
Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
1.16
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.17
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.18
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
1.19
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.20
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
THE HARRY LEVY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 19 -
2
Judgements and key sources of estimation uncertainty
Preparation of the financial statements requires management to make significant judgements and estimates. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The items in the financial statements where these judgements and estimates have been made include:
Critical estimates
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Useful economic lives of tangible assets
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic life and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical conditions of the assets. See note 11 for the carrying amount of the tangible assets and note 1.6 for the estimated useful economic lives for each class of asset.
Provisions for doubtful debts
The directors have reviewed the trading balances owing to the company from its customers and made adequate provisions for any debts where it is considered probable that the amount will not be recovered. The amounts would otherwise have been recognised in trade debtors.
Stock provisions
The company sells stock that is subject to changing consumer demands. As a result it is necessary to consider the recoverability of the cost of stock and the associated provision required. When calculating the stock provision, management considers the condition of the stock, as well as applying assumptions around the saleability of stock held.
Useful economic lives of intangible assets
Intangible assets are deemed to have a finite life and are amortised over its expected useful life on a systematic basis. The annual amortisation charge for intangible assets is therefore sensitive to change in the estimated useful economic life. See Note 10 for the carrying amount of the intangible assets and Note 1.5 for details on the expected useful life of each intangible asset.
Fair value of Investment Property
Investment properties are held at fair value based on the directors' best estimates.
3
Turnover and other revenue
An analysis of the group's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Sale of goods
16,562,621
19,207,807
Other sales
20,083,242
16,226,029
36,645,863
35,433,836
THE HARRY LEVY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
3
Turnover and other revenue
(Continued)
- 20 -
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
35,044,062
32,235,305
Europe
1,321,769
2,770,011
Rest of the world
280,032
428,520
36,645,863
35,433,836
2024
2023
£
£
Other revenue
Interest income
47,220
17,064
Grants received
-
4,250
Net rents received
237,956
237,354
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange gains
(34,285)
(91,800)
Government grants
-
(4,250)
Depreciation of owned tangible fixed assets
2,834,941
2,234,820
Depreciation of tangible fixed assets held under finance leases
5,146
70,471
Profit on disposal of tangible fixed assets
(1,175)
(17,446)
Amortisation of intangible assets
169,448
162,115
Operating lease charges
1,358,618
1,190,136
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
4,250
4,125
Audit of the financial statements of the company's subsidiaries
40,750
39,325
45,000
43,450
THE HARRY LEVY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 21 -
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
235,338
228,799
Company pension contributions to defined contribution schemes
1,347
1,321
236,685
230,120
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
153,784
151,126
During the year retirement benefits were accruing to 3 directors (2023: 3) in respect of defined contribution pension schemes.
7
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Directors
3
3
3
3
Staff
253
233
-
-
Total
256
236
3
3
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
6,174,522
5,601,460
Social security costs
537,799
494,771
-
-
Pension costs
150,805
139,927
6,863,126
6,236,158
THE HARRY LEVY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 22 -
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
185,676
139,130
Other interest on financial liabilities
13,723
3,381
Interest on finance leases and hire purchase contracts
630
630
Total finance costs
200,029
143,141
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
196,541
Deferred tax
Origination and reversal of timing differences
401,335
570,445
Adjustment in respect of prior periods
(104,128)
34,048
Total deferred tax
297,207
604,493
Total tax charge
493,748
604,493
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
2,447,301
2,664,286
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.49%)
611,825
519,269
Tax effect of expenses that are not deductible in determining taxable profit
6,429
3,640
Tax effect of income not taxable in determining taxable profit
(77,960)
Gains not taxable
(41,250)
Effect of change in corporation tax rate
-
103,627
Permanent capital allowances in excess of depreciation
-
100,000
Depreciation on assets not qualifying for tax allowances
15,336
47,040
Amortisation on assets not qualifying for tax allowances
36,905
27,342
Other permanent differences
3,263
1,800
Under/(over) provided in prior years
(104,128)
34,048
Deferred tax adjustments in respect of prior years
(10)
Superdeduction for capital allowances
(34,011)
(154,313)
Marginal relief
(611)
Taxation charge
493,748
604,493
THE HARRY LEVY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 23 -
10
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 May 2023
1,621,445
Additions
80,000
At 30 April 2024
1,701,445
Amortisation and impairment
At 1 May 2023
1,223,806
Amortisation charged for the year
169,448
At 30 April 2024
1,393,254
Carrying amount
At 30 April 2024
308,191
At 30 April 2023
397,639
The company had no intangible fixed assets at 30 April 2024 or 30 April 2023.
THE HARRY LEVY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 24 -
11
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Amusement machines
Plant, equipment, fixtures and fittings
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 May 2023
1,859,564
3,215,248
15,302,908
1,671,998
581,928
416,814
23,048,460
Additions
1,415,263
51,943
2,675,020
140,962
60,573
202,695
4,546,456
Disposals
(29,130)
(864,680)
(893,810)
At 30 April 2024
3,274,827
3,238,061
17,113,248
1,812,960
642,501
619,509
26,701,106
Depreciation and impairment
At 1 May 2023
2,920
419,813
10,337,343
983,070
465,418
136,954
12,345,518
Depreciation charged in the year
1,341
563,705
1,928,562
188,906
46,997
110,576
2,840,087
Eliminated in respect of disposals
(29,130)
(653,908)
(683,038)
At 30 April 2024
4,261
954,388
11,611,997
1,171,976
512,415
247,530
14,502,567
Carrying amount
At 30 April 2024
3,270,566
2,283,673
5,501,251
640,984
130,086
371,979
12,198,539
At 30 April 2023
1,856,644
2,795,435
4,965,565
688,928
116,510
279,860
10,702,942
THE HARRY LEVY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 25 -
Company
Freehold land and buildings
£
Cost
At 1 May 2023 and 30 April 2024
560,000
Depreciation and impairment
At 1 May 2023 and 30 April 2024
Carrying amount
At 30 April 2024
560,000
At 30 April 2023
560,000
Group
Company
2024
2023
2024
2023
£
£
£
£
Motor vehicles
5,667
10,813
The net carrying value of tangible fixed assets held under finance leases or hire purchase contracts, included above, are £5,667 (2023: £10,813). Depreciation charged in the year for assets held under finance leases or hire purchase contracts amounted to £5,146 (2023: £70,471).
12
Investment property
Group
Company
2024
2024
£
£
Fair value
At 1 May 2023
3,780,000
3,780,000
Net gains or losses through fair value adjustments
165,000
165,000
At 30 April 2024
3,945,000
3,945,000
The fair value of the investment property has been arrived at on the basis of a valuation carried out on 16 July 2024 by Kemsley LLP 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.
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
3,784,396
3,784,396
THE HARRY LEVY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
13
Fixed asset investments
(Continued)
- 26 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 May 2023 and 30 April 2024
3,784,396
Carrying amount
At 30 April 2024
3,784,396
At 30 April 2023
3,784,396
14
Subsidiaries
Details of the company's subsidiaries at 30 April 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Crown Leisure Limited
UK
Ordinary
100.00
Deith Leisure Limited
UK
Ordinary
100.00
Harry Levy Amusement Contractor Limited
UK
Ordinary
100.00
15
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
1,521,159
1,270,938
-
-
Work in progress
122,921
129,505
-
-
Finished goods and goods for resale
6,041,862
3,847,591
7,685,942
5,248,034
-
-
An impairment charge of £46,777 (2023: charge of £38,812) was recognised in cost of sales against stock during the year.
THE HARRY LEVY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 27 -
16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
5,532,908
7,553,805
36,241
12,928
Amounts owed by group undertakings
-
-
2,607,479
3,107,479
Other debtors
38,175
155,551
1,999
1,999
Prepayments and accrued income
1,386,501
1,269,779
36,702
28,211
6,957,584
8,979,135
2,682,421
3,150,617
An impairment credit £193,229 (2023: loss of £53,200) was recognised in administrative expenses against trade debtors during the year.
17
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
19
1,071,649
725,266
Obligations under finance leases
20
1,142
8,602
-
-
Trade creditors
9,801,265
8,401,055
150
Corporation tax payable
196,541
10,047
Other taxation and social security
790,155
1,050,550
-
-
Other creditors
241,880
198,439
6,500
6,500
Accruals and deferred income
1,265,945
1,107,582
38,607
22,259
13,368,577
11,491,494
55,154
28,909
The bank overdraft is secured by fixed and floating charges over the assets of the subsidiary companies.
Bank loans are secured by fixed and floating charges over the property and assets of the subsidiary companies.
18
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
19
524,686
1,029,167
Obligations under finance leases
20
1,156
Other borrowings
19
1,567,581
1,567,582
1,567,581
1,567,582
Other creditors
6,993
6,992
6,993
6,992
2,099,260
2,604,897
1,574,574
1,574,574
THE HARRY LEVY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
18
Creditors: amounts falling due after more than one year
(Continued)
- 28 -
Bank loans are secured by fixed and floating charges over the property and assets of the subsidiary companies.
19
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
1,596,335
1,754,433
Preference shares
1,567,581
1,567,582
1,567,581
1,567,582
3,163,916
3,322,015
1,567,581
1,567,582
Payable within one year
1,071,649
725,266
Payable after one year
2,092,267
2,596,749
1,567,581
1,567,582
The bank overdraft is secured by fixed and floating charges over the assets of the subsidiary companies.
Bank loans are secured by fixed and floating charges over the property and assets of the subsidiary companies.
Bank loans are repayable in monthly instalments.
During the year the group entered into a loan for £1,000,000, secured by a guarantee from the ultimate parent company, and also over the property for which it was taken out. Interest is charged at a floating rate with a margin of 3%. Of this amount £567,168 is outstanding at the year end.
20
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
1,142
8,602
In two to five years
1,156
1,142
9,758
-
-
Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
THE HARRY LEVY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 29 -
21
Provisions for liabilities
Group
Company
2024
2023
2024
2023
£
£
£
£
Dilapidations
973,876
973,876
-
-
Movements on provisions:
Dilapidations
Group
£
At 1 May 2023 and 30 April 2024
973,876
The dilapidations provisions are based on the directors' best estimate of the expected costs required at the end of each lease.
22
Share-based payment transactions
On 22 July 2016 the company implemented an executive share option scheme in respect of which options were granted for the subscription of 1,600 Ordinary B shares. At the year end none of these share options had been exercised or forfeited and the full number granted remained outstanding.
23
Deferred taxation
Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
897,879
907,609
Tax losses
(292)
(465,401)
Investment property uplift
303,648
337,669
Short term timing differences
(245,305)
(121,154)
955,930
658,723
Liabilities
Liabilities
2024
2023
Company
£
£
Investment property uplift
303,648
337,669
THE HARRY LEVY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
23
Deferred taxation
(Continued)
- 30 -
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 May 2023
658,723
337,669
Charge/(credit) to profit or loss
297,207
(34,021)
Liability at 30 April 2024
955,930
303,648
24
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
150,805
139,927
Defined contribution pension schemes are operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund. Amounts owing to the fund at the year end totalled £18,359 (2023: £17,539).
THE HARRY LEVY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 31 -
25
Share capital
Group and company
Issued and fully paid
2024
2023
92,228 Ordinary A shares of £1 each
92,228
92,228
400 Ordinary C shares of £1 each
400
400
63,750 Ordinary D shares of £1 each
63,750
63,750
63,750 Ordinary E shares of £1 each
63,750
63,750
51,000 Ordinary F shares of £1 each
51,000
51,000
25,500 Ordinary G shares of £1 each
25,500
25,500
25,500 Ordinary H shares of £1 each
25,500
25,500
227,693 Ordinary I shares of £1 each
227,693
227,693
227,693 Ordinary J shares of £1 each
227,693
227,693
92,500 Ordinary K shares of £1 each
92,500
92,500
143,693 Ordinary L shares of £1 each
143,693
143,693
118,000 Ordinary M shares of £1 each
118,000
118,000
118,000 Ordinary N shares of £1 each
118,000
118,000
193 Ordinary O shares of £1 each
193
193
1,249,900
1,249,900
Issued and fully paid
1,567,581 Preference shares of £1 each
1,567,581
1,567,581
The Ordinary A, D, E, F, G, H, J, K, L, M, N and O shares have full voting rights.
The 400 Ordinary C shares have 4% of the voting rights in aggregate, with other classes of Ordinary share ranking pari passu over the remaining 96%.
All the Ordinary shares have equal rights as regards to dividends.
The Preference shares have no voting rights and have a preferential cumulative dividend of 0.0001% per annum of the nominal value.
On a return of capital or on liquidation the net assets of the company are to be applied first in paying the preference share holders.
The company may at any time redeem all or any number of the Preference shares then outstanding by serving notice of such redemption upon the holders of the Preference shares specifying a date upon which redemption is to take place. The holders of the Preference shares shall be entitled at any time by service of a prior notice to the company to require redemption on the date specified in such notice of all or any number of Preference shares.
The Preference shares have been classified as financial liabilities in accordance with the requirements of the Financial Reporting Standard 102.
26
Reserves
Capital redemption reserve
The capital redemption reserve arose during the year from the purchase of own share capital and the redemption of preference shares and records the nominal value of those shares.
Profit and loss reserves
The profit and loss account includes all current and prior period retained profits and losses.
THE HARRY LEVY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 32 -
27
Financial commitments, guarantees and contingent liabilities
At the year end, the group has entered into a forward contract to manage foreign exchange risk. The group is committed to $500,000 USD at a rate of 1.186 which matures on 16 October 2024.
28
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
2024
2023
2024
2023
£
£
£
£
Within one year
1,354,080
1,192,823
-
-
Between two and five years
3,318,087
3,402,592
-
-
In over five years
1,725,288
2,289,431
-
-
6,397,455
6,884,846
-
-
29
Related party transactions
The company has taken advantage of the exemption under FRS 102 Section 33 (Paragraph 33.1A) from disclosing intra group transactions with wholly owned subsidiaries within the grouptrue.
Amounts paid to key management who are not directors was £166,101 (2023: £177,931).
At the balance sheet date, amounts owed by the company to the directors was £6,500 (2023: £6,500).
30
Controlling party
The ultimate controlling party is H J Levy by virtue of his position as trustee in a number of trusts which together hold the majority of shares in the The Harry Levy Group Limited.
THE HARRY LEVY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 33 -
31
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
1,953,553
2,059,793
Adjustments for:
Taxation charged
493,748
604,493
Finance costs
200,029
143,141
Investment income
(47,220)
(17,064)
Gain on disposal of tangible fixed assets
(1,175)
(17,446)
Fair value gain on investment properties
(165,000)
(400,000)
Amortisation and impairment of intangible assets
169,448
162,115
Depreciation and impairment of tangible fixed assets
2,840,087
2,305,291
Movements in working capital:
Increase in stocks
(2,437,908)
(784,476)
Decrease in debtors
2,021,551
1,182,810
Increase in creditors
1,341,620
939,618
Cash generated from operations
6,368,733
6,178,275
32
Analysis of changes in net funds/(debt) - group
1 May 2023
Cash flows
30 April 2024
£
£
£
Cash at bank and in hand
3,147,695
1,634,700
4,782,395
Borrowings excluding overdrafts
(3,322,015)
158,099
(3,163,916)
Obligations under finance leases
(9,758)
8,616
(1,142)
(184,078)
1,801,415
1,617,337
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