Company registration number 09819947 (England and Wales)
WHITCOTT HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
WHITCOTT HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Mr S Fraser
Mr P. Fraser
Secretary
Mrs S. Fraser
Company number
09819947
Registered office
Lombard House
Whitehouse Business Centre
Lovetofts Drive
IPSWICH
Suffolk
IP1 5SF
Auditor
BG Audit LLP
Statutory Auditors
7 Three Rivers Business Park
Felixstowe Road, Foxhall
IPSWICH
IP10 0BF
Business address
Lombard House
Whitehouse Business Centre
Lovetofts Drive
IPSWICH
Suffolk
IP1 5SF
WHITCOTT HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
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
Company statement of cash flows
14
Notes to the financial statements
15 - 31
WHITCOTT HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 1 -

The directors present the strategic report for the year ended 31 May 2024.

Fair review of the business

Turnover in the year was £27,797,888. Overall gross profit for the year was 21.02%.

 

The Group continued to maintain a strong and varied customer base throughout the year through its commitment to service.

 

The Group continues to carefully manage its own cost base and improve operating efficiencies, to remain cost-effective and competitive in the market.

 

Deep-Sea Ocean Freight bookings during the early part of the year increased as freight rates stabilised. However, safety concerns in the Red Sea caused carriers to route vessels away from the Suez Canal to the longer route around the Southern tip of Africa, increasing transit times and costs and subduing volumes.

 

Container haulage availability remained stable during the year, improving service to our clients.

 

Domestic traffic also remained stable throughout the year, as did UK-Ireland and Ireland-UK traffic.

 

The Directors are confident that the Group remains well placed to take advantage of any upturn in trade.

 

The parent company did not trade during the year.

Principal risks and uncertainties

Although inflation declined during the year, relatively high interest rates continued to dampen consumer demand, although we continue to operate efficiently and profitably. Several quite significant transport-based businesses failed during the year, presenting risks, as well as opportunities to our business. We remain watchful of our client’s and supplier’s financial performance to avoid being adversely affected by any failures.

 

Pressure on driver recruitment and retention remains and the Group continues to benchmark remuneration and benefits to maintain a content and committed workforce.

 

Fuel cost volatility will always be a risk to the business and the Group operates a surcharge mechanism to cope with this volatility.

Development and performance

The Directors are satisfied that the Group continues to develop customer loyalty through quality of service and to grow the Group organically within its core activities of shipping & forwarding, warehousing and distribution, whilst also seeking to continuously improve the utilisation of equipment and facilities and to provide innovative solutions for our customers.

Key performance indicators

The Directors are satisfied that customer service and satisfaction and key performance indicators, continue to be at or above the industry standard.

 

The Directors do not consider turnover, in itself, to be a key performance indicator, however, the key financial highlights are as follows:

 

Turnover growth        £309,766

Gross profit        £5,842,801

Net Profit before tax %    2.89%

WHITCOTT HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 2 -
Section 172 (1) statement

Section 172 of the Companies Act 2006 requires a director of a Group to act in the way he or she considers, in good faith, would most likely promote the success of the Group for the benefit of its members as a whole. In doing this section 172 requires Directors to have regard to, amongst other matters, the:

 

(a) likely consequences of any decisions in the long-term;

(b) interests of the Group’s employees;

(c) need to foster the Group’s business relationships with suppliers, customers and others;

(d) impact of the Group’s operations on the community and environment;

(e) desirability of the Group maintaining a reputation for high standards of business conduct; and

(f) need to act fairly as between members of the Group.

 

In discharging their section 172 duties the Directors have regard to the factors set out above. By considering the Group’s purpose, vision and values together with its strategic priorities and having a process in place for decision-making, the Directors aim to make sure that their decisions are consistent and appropriate in all circumstances.

 

Board meetings, where the Directors consider the Group’s activities and make decisions are held regularly. As a part of those meetings the Directors receive information on issues relevant to section 172 matters when making decisions. For example, the views of and the impact of the Group’s activities on its stakeholders are an important consideration for the Directors when making relevant decisions. Also, during the year the Directors continued discussions on a three-year business plan that considers the importance of the Group’s employees and their interests.

On behalf of the board

Mr S Fraser
Director
17 December 2024
WHITCOTT HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 3 -

The directors present their annual report and financial statements for the year ended 31 May 2024.

Principal activities

The principal activity of Whitcott Holdings Limited continued to be that of a holding company.

 

The principal activity of Lombard Shipping plc continued to be that of international logistics providers.

 

The principal activity of Lombard Shipping Limited, an Irish-registered Company, continued to be that of Sea and Coastal Water transport.

Directors

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

Mr S Fraser
Mr P. Fraser
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.

Post reporting date events

No significant events have occurred between 31 May 2024 and the date of authorisation of these financial statements.

Auditor

In accordance with the company's articles, a resolution proposing that BG Audit LLP be reappointed as auditor of the group will be put at a General Meeting.

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.

On behalf of the board
Mr S Fraser
Director
17 December 2024
WHITCOTT HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MAY 2024
- 4 -

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

 

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

 

 

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

WHITCOTT HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WHITCOTT HOLDINGS LIMITED
- 5 -
Opinion

We have audited the financial statements of Whitcott Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 May 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

 

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

 

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

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

WHITCOTT HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WHITCOTT HOLDINGS 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:

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.

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 risks of non-compliance with laws and regulations related to the company’s vehicle operating licence requirements for its transport business, and considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that impact directly on the preparation of the financial statements including the Companies Act, and UK tax legislation.

 

We considered managements incentives and opportunities for fraudulent adjustments to the financial statements including override of controls and determined that the principal risks were related to inappropriate journal entries or fraudulent transactions that would result in the manipulation of profits.

 

Audit procedures included:

  1. Making enquiries of management for known or suspected instances of fraud or non-compliance with laws and regulations.

  2. Consideration of management’s procedures for detecting and preventing fraud, including controls.

  3. Reviewing journal entries to identify material or unusual transactions.

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.

WHITCOTT HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WHITCOTT HOLDINGS LIMITED
- 7 -

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

Use of our report

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

Roger Beaton F.C.A. (Senior Statutory Auditor)
For and on behalf of BG Audit LLP
17 December 2024
Statutory Auditor
7 Three Rivers Business Park
Felixstowe Road, Foxhall
IPSWICH
IP10 0BF
WHITCOTT HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
27,797,888
27,488,122
Cost of sales
(21,955,087)
(22,125,319)
Gross profit
5,842,801
5,362,803
Administrative expenses
(5,037,377)
(4,920,448)
Other operating income
-
4,800
Operating profit
4
805,424
447,155
Interest receivable and similar income
8
19,905
1,229
Interest payable and similar expenses
9
(22,604)
(31,492)
Profit before taxation
802,725
416,892
Tax on profit
10
(183,790)
(118,969)
Profit for the financial year
618,935
297,923
Profit for the financial year is attributable to:
- Owners of the parent company
589,324
283,743
- Non-controlling interests
29,611
14,180
618,935
297,923
Total comprehensive income for the year is attributable to:
- Owners of the parent company
589,324
283,743
- Non-controlling interests
29,611
14,180
618,935
297,923

The profit and loss account has been prepared on the basis that all operations are continuing operations.

WHITCOTT HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
31 MAY 2024
31 May 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
2,113,158
2,128,174
Investments
13
55,000
50,000
2,168,158
2,178,174
Current assets
Debtors
16
4,386,166
4,391,023
Cash at bank and in hand
1,840,252
1,245,451
6,226,418
5,636,474
Creditors: amounts falling due within one year
17
(4,879,436)
(4,838,216)
Net current assets
1,346,982
798,258
Total assets less current liabilities
3,515,140
2,976,432
Creditors: amounts falling due after more than one year
18
(41,241)
(256,202)
Provisions for liabilities
20
(444,795)
(310,061)
Net assets
3,029,104
2,410,169
Capital and reserves
Called up share capital
23
100
100
Other reserves
99,900
99,900
Profit and loss reserves
2,891,518
2,302,194
Equity attributable to owners of the parent company
2,991,518
2,402,194
Non-controlling interests
37,586
7,975
3,029,104
2,410,169
The financial statements were approved by the board of directors and authorised for issue on 17 December 2024 and are signed on its behalf by:
17 December 2024
Mr S Fraser
Director
WHITCOTT HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 MAY 2024
31 May 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
13
55,172
50,172
Current assets
Debtors
16
300,000
-
0
Cash at bank and in hand
194,970
200,000
494,970
200,000
Creditors: amounts falling due within one year
17
(72)
(72)
Net current assets
494,898
199,928
Net assets
550,070
250,100
Capital and reserves
Called up share capital
23
100
100
Profit and loss reserves
549,970
250,000
Total equity
550,070
250,100

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 £299,970 (2023 - £80,000 profit).

The financial statements were approved by the board of directors and authorised for issue on 17 December 2024 and are signed on its behalf by:
17 December 2024
Mr S Fraser
Director
Company registration number 09819947 (England and Wales)
WHITCOTT HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024
- 11 -
Share capital
Other reserves
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
Balance at 1 June 2022
100
99,900
2,098,451
2,198,451
(6,205)
2,192,246
Year ended 31 May 2023:
Profit and total comprehensive income for the year
-
-
283,743
283,743
14,180
297,923
Dividends
11
-
-
(80,000)
(80,000)
-
(80,000)
Balance at 31 May 2023
100
99,900
2,302,194
2,402,194
7,975
2,410,169
Year ended 31 May 2024:
Profit and total comprehensive income for the year
-
-
589,324
589,324
29,611
618,935
Balance at 31 May 2024
100
99,900
2,891,518
2,991,518
37,586
3,029,104
WHITCOTT HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 June 2022
100
250,000
250,100
Year ended 31 May 2023:
Profit and total comprehensive income for the year
-
80,000
80,000
Dividends
11
-
(80,000)
(80,000)
Balance at 31 May 2023
100
250,000
250,100
Year ended 31 May 2024:
Profit and total comprehensive income for the year
-
299,970
299,970
Balance at 31 May 2024
100
549,970
550,070
WHITCOTT HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
1,404,362
533,581
Interest paid
(22,604)
(31,492)
Income taxes paid
(92,171)
(85,037)
Net cash inflow from operating activities
1,289,587
417,052
Investing activities
Purchase of tangible fixed assets
(356,425)
(91,116)
Proceeds from disposal of tangible fixed assets
111,933
52,551
Purchase of fixed asset investments
(5,000)
-
Interest received
19,905
1,229
Net cash used in investing activities
(229,587)
(37,336)
Financing activities
Payment of finance leases obligations
(307,111)
(206,297)
Dividends paid to equity shareholders
-
0
(80,000)
Net cash used in financing activities
(307,111)
(286,297)
Net increase in cash and cash equivalents
752,889
93,419
Cash and cash equivalents at beginning of year
1,087,363
993,944
Cash and cash equivalents at end of year
1,840,252
1,087,363
Relating to:
Cash at bank and in hand
1,840,252
1,245,451
Bank overdrafts included in creditors payable within one year
-
(158,088)
WHITCOTT HOLDINGS LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
29
(300,030)
-
Investing activities
Purchase of fixed asset investments
(5,000)
-
0
Dividends received
300,000
80,000
Net cash generated from investing activities
295,000
80,000
Financing activities
Dividends paid to equity shareholders
-
(80,000)
Net cash used in financing activities
-
(80,000)
Net (decrease)/increase in cash and cash equivalents
(5,030)
-
Cash and cash equivalents at beginning of year
200,000
200,000
Cash and cash equivalents at end of year
194,970
200,000
WHITCOTT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
- 15 -
1
Accounting policies
Company information

Whitcott Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Lombard House, Whitehouse Business Centre, Lovetofts Drive, IPSWICH, Suffolk, IP1 5SF.

 

The group consists of Whitcott Holdings 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. The principal accounting policies adopted are set out below.

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

 

All financial statements are made up to 31 May 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.

1.2
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.

1.3
Turnover

Turnover represents amounts receivable for services net of VAT and trade discounts. Turnover is recognised on the delivery of those services, which is on completion of the shipping or transport operation.

1.4
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:

Leasehold land and buildings
2-10 years straight line or straight line over the life of the lease
Plant and equipment
20% straight line and 20% reducing balance
Fixtures and fittings
20% straight line
Computer equipment
10-33% straight line
Motor vehicles
20% reducing balance
WHITCOTT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 16 -

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

1.5
Fixed asset investments

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

 

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

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

1.6
Impairment of fixed assets

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

 

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

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

 

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

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

1.7
Cash and cash equivalents

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

WHITCOTT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 17 -
1.8
Financial instruments

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

 

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

 

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

Basic financial assets

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

Other financial assets

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

Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

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

Classification of financial liabilities

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

WHITCOTT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 18 -
Basic financial liabilities

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

 

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

 

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

Other financial liabilities

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

 

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

Derecognition of financial liabilities

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

1.9
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.

1.10
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.

WHITCOTT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 19 -
1.11
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.

1.12
Employee benefits

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

 

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

 

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

1.13
Retirement benefits

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

1.14
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.

1.15
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.

1.16
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.

WHITCOTT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 20 -
2
Judgements and key sources of estimation uncertainty

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

 

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

3
Turnover and other revenue

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

2024
2023
£
£
Turnover analysed by class of business
Sales
27,797,888
27,488,122
2024
2023
£
£
Turnover analysed by geographical market
UK
12,778,544
10,819,167
Europe
7,908,191
12,240,931
Rest of World
7,111,153
4,428,024
27,797,888
27,488,122
2024
2023
£
£
Other revenue
Interest income
19,905
1,229
Grants received
-
4,800
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses
49,556
51,967
Government grants
-
(4,800)
Depreciation of owned tangible fixed assets
273,524
197,167
Depreciation of tangible fixed assets held under finance leases
41,300
128,361
Loss/(profit) on disposal of tangible fixed assets
18,033
(13,032)
Operating lease charges
1,398,888
1,270,556
WHITCOTT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 21 -
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
3,250
2,750
Audit of the financial statements of the company's subsidiaries
25,588
14,000
28,838
16,750
For other services
All other non-audit services
3,250
2,750
6
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Office (including management)
7
7
-
-
Operations
60
59
-
-
Warehouse and drivers
50
48
-
-
117
114
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
5,108,039
4,873,872
-
0
-
0
Social security costs
489,002
469,342
-
-
Pension costs
152,494
128,183
-
0
-
0
5,749,535
5,471,397
-
0
-
0
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
221,413
156,748
WHITCOTT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
7
Directors' remuneration
(Continued)
- 22 -
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
113,295
-
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
19,905
1,229
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
19,905
1,229
9
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Interest on finance leases and hire purchase contracts
9,806
19,263
Other interest
12,798
12,229
Total finance costs
22,604
31,492
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
139,199
92,171
Deferred tax
Origination and reversal of timing differences
44,591
26,798
Total tax charge
183,790
118,969
WHITCOTT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
10
Taxation
(Continued)
- 23 -

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

2024
2023
£
£
Profit before taxation
802,725
416,892
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.00%)
200,681
83,378
Tax effect of expenses that are not deductible in determining taxable profit
1,270
790
Effect of change in corporation tax rate
(20,815)
31,854
Depreciation on assets not qualifying for tax allowances
4,999
4,136
Other non-reversing timing differences
(2,345)
346
Capital allowances at enhanced rate
-
0
(1,535)
Taxation charge
183,790
118,969
11
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Interim paid
-
80,000
WHITCOTT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 24 -
12
Tangible fixed assets
Group
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 June 2023
1,052,866
1,657,188
445,320
230,063
1,997,526
5,382,963
Additions
-
0
132,202
35,316
9,301
252,955
429,774
Disposals
-
0
(45,250)
-
0
-
0
(247,827)
(293,077)
At 31 May 2024
1,052,866
1,744,140
480,636
239,364
2,002,654
5,519,660
Depreciation and impairment
At 1 June 2023
75,436
1,357,764
345,118
192,950
1,283,521
3,254,789
Depreciation charged in the year
15,929
72,055
56,296
15,714
154,830
314,824
Eliminated in respect of disposals
-
0
(40,058)
-
0
-
0
(123,053)
(163,111)
At 31 May 2024
91,365
1,389,761
401,414
208,664
1,315,298
3,406,502
Carrying amount
At 31 May 2024
961,501
354,379
79,222
30,700
687,356
2,113,158
At 31 May 2023
977,430
299,424
100,202
37,113
714,005
2,128,174
The company had no tangible fixed assets at 31 May 2024 or 31 May 2023.

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2024
2023
2024
2023
£
£
£
£
Motor vehicles
216,184
505,064
-
0
-
0
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
172
172
Unlisted investments
55,000
25,000
55,000
25,000
Loans
-
0
25,000
-
0
25,000
55,000
50,000
55,172
50,172
WHITCOTT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
13
Fixed asset investments
(Continued)
- 25 -
Movements in fixed asset investments
Group
Investments
Loans
Total
£
£
£
Cost or valuation
At 1 June 2023
25,000
25,000
50,000
Additions
30,000
-
30,000
Disposals
-
(25,000)
(25,000)
At 31 May 2024
55,000
-
55,000
Carrying amount
At 31 May 2024
55,000
-
55,000
At 31 May 2023
25,000
25,000
50,000
Movements in fixed asset investments
Company
Shares in subsidiaries
Other investments
Loans
Total
£
£
£
£
Cost or valuation
At 1 June 2023
172
25,000
25,000
50,172
Additions
-
30,000
-
30,000
Disposals
-
-
(25,000)
(25,000)
At 31 May 2024
172
55,000
-
55,172
Carrying amount
At 31 May 2024
172
55,000
-
55,172
At 31 May 2023
172
25,000
25,000
50,172
14
Subsidiaries

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

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Lombard Shipping plc
Lombard House, Whitehouse Business Centre, Lovetofts Drive, Ipswich, Suffolk IP1 5SF
Ordinary
100.00
Lombard Shipping Limited
Unit 6 Damastown Avenue, Damastown Industrial Park, Damastown, Dublin 13
Ordinary
80.00
WHITCOTT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 26 -
15
Financial instruments
Group
Company
2024
2023
2024
2023
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
4,022,802
3,813,335
300,000
25,000
Equity instruments measured at cost less impairment
55,000
25,000
55,000
25,000
Carrying amount of financial liabilities
Measured at amortised cost
4,628,388
4,815,153
72
72
16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
4,019,880
3,769,583
-
0
-
0
Amounts owed by group undertakings
-
-
300,000
-
Other debtors
79,672
347,657
-
0
-
0
Prepayments and accrued income
273,060
242,272
-
0
-
0
4,372,612
4,359,512
300,000
-
Deferred tax asset (note 21)
13,554
31,511
-
0
-
0
4,386,166
4,391,023
300,000
-

Included in trade debtors is £1,232,568 (2023: £1,027,630) relating to amounts outstanding on an invoice discounting agreement.

17
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
-
0
158,088
-
0
-
0
Obligations under finance leases
19
91,128
268,321
-
0
-
0
Trade creditors
3,840,772
3,612,405
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
72
72
Corporation tax payable
139,199
92,171
-
0
-
0
Other taxation and social security
153,090
187,094
-
-
Other creditors
257,113
250,926
-
0
-
0
Accruals and deferred income
398,134
269,211
-
0
-
0
4,879,436
4,838,216
72
72

The bank overdraft is secured by fixed and floating charge over the assets of the company.

 

Net obligations under hire purchase contracts are secured on the assets concerned.

WHITCOTT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 27 -
18
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance leases
19
41,241
97,810
-
0
-
0
Other creditors
-
0
158,392
-
0
-
0
41,241
256,202
-
-

Net obligations under hire purchase contracts are secured on the assets concerned. Other creditors are secured against the leasehold property.

19
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
91,128
268,321
-
0
-
0
In two to five years
41,241
97,810
-
0
-
0
132,369
366,131
-
-

Finance lease payments represent rentals payable by the company 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. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

20
Provisions for liabilities
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Dilapidation provision
262,800
154,700
-
-
Deferred tax liabilities
21
181,995
155,361
-
0
-
0
444,795
310,061
-
0
-
0
Movements on provisions apart from deferred tax liabilities:
Group
£
At 1 June 2023
154,700
Additional provisions in the year
108,100
At 31 May 2024
262,800
WHITCOTT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 28 -
21
Deferred taxation

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

Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Group
£
£
£
£
Accelerated capital allowances
181,995
155,361
-
-
Tax losses
-
-
13,554
31,511
181,995
155,361
13,554
31,511
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 June 2023
123,850
-
Charge to profit or loss
44,591
-
Liability at 31 May 2024
168,441
-

The net deferred tax liability expected to reverse in the year ended 31st May 2025 is estimated at £35,883. This primarily relates to the reversal of timing differences on acquired tangible assets and capital allowances through depreciation, offset by expected tax deductions when payments are made to utilise provisions.

22
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
152,494
128,183

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

23
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
95
95
95
95
Ordinary B shares of £1 each
5
5
5
5
100
100
100
100
WHITCOTT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
23
Share capital
(Continued)
- 29 -

There are two classes of ordinary shares. There are no restrictions on the distribution of dividends and the repayment of capital.

24
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
720,432
611,376
-
-
Between two and five years
1,131,777
1,042,695
-
-
1,852,209
1,654,071
-
-

In addition to the above the company has commitments over 5 years relating to a lease entered into in July 2019. The term of the lease is 125 years and rent of £34,000 is payable per annum (subject to review). The rent review will be carried out on the 10th anniversary of the term and every 10 years thereafter.

25
Capital commitments

Amounts contracted for but not provided in the financial statements:

Group
Company
2024
2023
2024
2023
£
£
£
£
Acquisition of tangible fixed assets
40,906
-
-
-
26
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2024
2023
£
£
Aggregate compensation
644,639
524,926
Other information
WHITCOTT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
26
Related party transactions
(Continued)
- 30 -

During the year the company paid rent of £133,000 (2023: £138,833) to Lombard Shipping Executive Pension Scheme. S Fraser is a trustee of Lombard Shipping Executive Pension Scheme.

 

Included in other creditors at the year end is £158,392 (2023: £312,473) owed to Lombard Shipping Executive Pension Scheme. Interest of £8,745 (2023: £12,939) has been paid to the Lombard Shipping Executive Pension Scheme.

 

During the year dividends of £Nil (2023: £80,000) were paid to a director and his wife.

 

At the year end the company was owed £462,821 (2023: £625,291) by its fellow subsidiary who is not wholly owned within the Group.

 

The company is exempt from disclosing other related party transactions as they are with group companies that are wholly owned within the group.

27
Controlling party

The ultimate controlling party is Mr S. Fraser, the majority shareholder of Whitcott Holdings Limited.

28
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
618,935
297,923
Adjustments for:
Taxation charged
183,790
118,969
Finance costs
22,604
31,492
Investment income
(19,905)
(1,229)
Loss/(gain) on disposal of tangible fixed assets
18,033
(13,032)
Depreciation and impairment of tangible fixed assets
314,824
325,528
Increase in provisions
108,100
6,100
Movements in working capital:
(Increase)/decrease in debtors
(13,100)
589,080
Increase/(decrease) in creditors
171,081
(821,250)
Cash generated from operations
1,404,362
533,581

The group has acquired tangible assets under finance leases. £73,349 (2023: £46,750) has been capitalised as the cost of the asset.

WHITCOTT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 31 -
29
Cash absorbed by operations - company
2024
2023
£
£
Profit for the year after tax
299,970
80,000
Adjustments for:
Investment income
(300,000)
(80,000)
Movements in working capital:
Increase in debtors
(300,000)
-
Cash absorbed by operations
(300,030)
-
30
Analysis of changes in net funds - group
1 June 2023
Cash flows
New finance leases
31 May 2024
£
£
£
£
Cash at bank and in hand
1,245,451
594,801
-
1,840,252
Bank overdrafts
(158,088)
158,088
-
-
0
1,087,363
752,889
-
1,840,252
Obligations under finance leases
(366,131)
307,111
(73,349)
(132,369)
721,232
1,060,000
(73,349)
1,707,883
31
Analysis of changes in net funds - company
1 June 2023
Cash flows
31 May 2024
£
£
£
Cash at bank and in hand
200,000
(5,030)
194,970
2024-05-312023-06-01falsefalseCCH SoftwareCCH Accounts Production 2024.310Mr S FraserMr P. FraserMrs S. 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