Company registration number 02125100 (England and Wales)
SKILLS LEISURE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
SKILLS LEISURE LIMITED
COMPANY INFORMATION
Directors
Mr S C R Skill
Mr N S A Skill
Mr P H Hallam
Company number
02125100
Registered office
White House
Wollaton Street
Nottingham
NG1 5GF
Auditor
RWB CA Limited t/a RWB Chartered Accountants
Northgate House
North Gate
New Basford
Nottingham
NG7 7BG
Business address
Belgrave Road
Bulwell
Nottingham
NG6 8LY
SKILLS LEISURE LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Group statement of comprehensive income
9
Group statement of financial position
10 - 11
Company statement of financial position
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 34
SKILLS LEISURE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 1 -

The directors present the strategic report for the year ended 30 April 2024.

Review of the business

The business has gradually recovered from the economic downturn due to the Coronavirus Pandemic. Month by month the Turnover has grown and the results are meeting the Directors expectations.

Principal risks and uncertainties

Shortage drivers / staff

The principal risk has been the shortage of drivers, the Company policy of training new drivers in its own Driving School to date has provided us with the additional drivers to cover the extra work load.

Costs - wages, fuel, and NI

Our senior team carefully monitor all fluctuations of costs particularly associated with fuel, wage, and NI.

This data is fed to our sales team who maintain constant contact with our clients to update, negotiate and flex prices on an ongoing basis. Thus far clients have mostly accepted increases which is somewhat contrary to pre-COVID times, and we have renegotiated significant increases on several contracts whilst handing back those that do not meet our revenue requirements. This is part of an ongoing SMT process of drilling down into all cost and operational elements to ensure each piece of work is priced to deliver optimal results and returns.

Development and performance

Throughout the pandemic HSBC, the company bankers remained fully supportive and have continued to support now that trading level have returned to normal. The holiday division is now performing well demonstrating and the Directors would like to thank our passengers for their support throughout this period.

The Directors have subsequently been successful in securing new contract private hire work with a major cruise company and Kuoni Holidays. The NEC contract continues to grow as exhibitions return to the NEC. The Company continues to operate school and college and the major colleges are delighted with the results.

The return of our private hire customer base has been pleasing and shows the strength of the brands. We continue to work with National Express who have reported their revenues have returned to pre pandemic levels. A new five year contract has been signed with National Express.

At the end of the period the Company net assets stand at £655,237 (2023: £588,763).

Drivers’ wages were 28.1% of turnover (2023: 26.7%). The Company continues to review salary levels periodically to ensure retention of key staff.

 

Key performance indicators

2024              2023

 

Turnover                        £19,971,333     £18,347,209

Staff                        232              234

Gross profit margin                18.49%             16.02%

Drivers wages as percentage of turnover         28.1%     26.7%

Return on capital employed            5.09%     (0.02)%

Material uncertainty related to going concern

We draw attention to note 1.2 in the financial statements, which notes that at the year end the Group has net current liabilities of £2,019,198 (2023 £2,470,975). This includes obligations under bank loans and finance leases of £1,776,198, which are all on a structured repayment basis. As explained in Note 1.2, the Directors believe that the Company and Group will continue to grow both turnover and profitability and thus it remains appropriate to prepare the accounts on a going concern basis.

SKILLS LEISURE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -

On behalf of the board

Mr S C R Skill
Director
20 January 2025
SKILLS LEISURE 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.

Results and dividends

Dividends paid for the year are £105,600.

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 C R Skill
Mr N S A Skill
Mr P H Hallam
Financial instruments

The Group continues to expand its coach operations. The company continues to invest in vehicles to meet the demand of its customers. They have been financed on fixed interest contracts to reduce exposure to interest rate increase. Diesel prices continue to be volatile.

Future developments

Continued expansion of private hire activity remains a key objective and development of new customers.,Coach and infrastructure investment levels will be provided to support this strategy.

Auditor

The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.

Statement of directors' responsibilities

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

 

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

 

 

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

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

SKILLS LEISURE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 4 -
Disclosure of information in the strategic report

The company has chosen in accordance with Section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 to set out in the company's strategic report information required by schedule 7 of the Large and Medium-sized Companies and Group (Accounts and Reports) Regulations 2008.

On behalf of the board
Mr S C R Skill
Director
20 January 2025
SKILLS LEISURE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SKILLS LEISURE LIMITED
- 5 -

Qualified Opinion

We have audited the financial statements of Skills Leisure Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2024 which comprise the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, except for the effects of the matter described in the basis for qualified opinion section, the financial statements:

· give a true and fair view of the state of the Parent Company’s affairs as at 30 April 2024 and of the group’s profit/loss for the year then ended;

· have been properly prepared in accordance with United Kingdom Generally Accepted Accounting · Practice; and

· have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for qualified opinion

Accrued income includes a balance of £300,833 which should not have been recorded within these financial statements. The accounting records indicate that this income relates to post year end trading activities and management have not made this correction. If this adjustment had been made, the total impact would have been a decrease of £300,833 to prepayments and accrued income and shareholder’s equity, and charge to profit and loss of £300,833.

Material uncertainty related to Going Concern

We draw attention to note 1.2 in the financial statements, which explains the level of group and company financial liabilities and the need to ensure continuance of future profits in order to meet the structured repayments as they fall due. As stated in note 1.2 this indicates the existence of a material uncertainty in connection with the Parent Company and Group’s ability to continue as a going concern. Our audit opinion is not modified in respect of this matter.

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.

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.

As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning accrued income within the financial statements. We have concluded that where the other information refers to this, it may be materially misstated for the same reason.

SKILLS LEISURE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SKILLS LEISURE LIMITED
- 6 -

Opinions on other matters prescribed by the Companies Act 2006

Except for the possible effects of the matter described in the basis or qualified opinion section of our report, 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.

Matters on which we are required to report by exception

Except for the matter described in the basis for qualified opinion section of our report, in light of the knowledge and understanding of the Group and the Parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and 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:

· returns adequate for our audit have not been received from branches not visited by us; or the 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

· the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Directors' Report and from the requirement to prepare a Strategic Report.

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement set out on page 4, 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 Group the Parent Company or to cease operations, or have no realistic alternative but to do so.

SKILLS LEISURE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SKILLS LEISURE LIMITED
- 7 -
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 Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these 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:

Our objectives are to obtain reasonable assurance about whether the group 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 group financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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:

· We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our experience through discussion with the Officers and other management (as required by auditing standards)

· We had regard to laws and regulations in areas that directly affect the financial statements including financial reporting (including related trade union legislation) taxation legislation and operators’ licences. We considered that extent of compliance with those laws and regulations as part of our procedures on the related financial statement items.

· Except for any known or possible non-compliance, and as required by auditing standards, our work in respect of these was limited to enquiry of the Officers.

· We communicated identified relevant laws and regulations to the business throughout our audit team and remained vigilant to any indications of non-compliance throughout the audit.

· We addressed the risk of fraud through management override of controls, by testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

SKILLS LEISURE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SKILLS LEISURE LIMITED
- 8 -

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

· 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. 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.

· Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control.

· Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

· Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the company to cease to continue as a going concern.

· Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the company to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the company audit. We remain solely responsible for our audit opinion.

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

Use of our report

This report is made solely to the Parent 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 Parent Company’s members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Parent Company and the Parent Company’s members, as a body, for our audit work, for this report, or for the opinions we have formed.

Neil Coupland FCA (Senior Statutory Auditor)
For and on behalf of RWB CA Limited t/a RWB Chartered Accountants, Statutory Auditor
Chartered Accountants
Northgate House
North Gate
New Basford
Nottingham
NG7 7BG
23 January 2025
SKILLS LEISURE LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
19,971,333
18,347,209
Cost of sales
(16,278,185)
(15,407,534)
Gross profit
3,693,148
2,939,675
Administrative expenses
(3,448,365)
(1,940,167)
Other operating expenses
-
(1,000,000)
Operating profit/(loss)
4
244,783
(492)
Interest receivable and similar income
8
-
0
145
Interest payable and similar expenses
9
(225,731)
(251,216)
Profit/(loss) before taxation
19,052
(251,563)
Tax on profit/(loss)
10
(77,515)
347,246
(Loss)/profit for the financial year
24
(58,463)
95,683
(Loss)/profit for the financial year is attributable to:
- Owners of the parent company
(104,110)
(98,338)
- Non-controlling interests
45,647
194,021
(58,463)
95,683
Total comprehensive income for the year is attributable to:
- Owners of the parent company
(104,110)
(98,338)
- Non-controlling interests
45,647
194,021
(58,463)
95,683
SKILLS LEISURE LIMITED
GROUP STATEMENT OF FINANCIAL POSITION
AS AT
30 APRIL 2024
30 April 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
11
1,182,500
1,664,635
Tangible assets
12
5,529,813
3,714,782
Investments
13
113,861
113,861
6,826,174
5,493,278
Current assets
Stocks
15
405,827
369,363
Debtors
16
2,857,355
2,760,248
Cash at bank and in hand
1,256,199
335,581
4,519,381
3,465,192
Creditors: amounts falling due within one year
17
(6,538,877)
(5,936,167)
Net current liabilities
(2,019,496)
(2,470,975)
Total assets less current liabilities
4,806,678
3,022,303
Creditors: amounts falling due after more than one year
18
(4,322,470)
(2,450,987)
Provisions for liabilities
Deferred tax liability
21
280,389
203,434
(280,389)
(203,434)
Net assets
203,819
367,882
Capital and reserves
Called up share capital
23
10,000
10,000
Share premium account
24
66,842
66,842
Capital redemption reserve
24
882,349
882,349
Profit and loss reserves
24
(1,042,464)
(898,754)
Equity attributable to owners of the parent company
(83,273)
60,437
Non-controlling interests
287,092
307,445
Total equity
203,819
367,882
SKILLS LEISURE LIMITED
GROUP STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT
30 APRIL 2024
30 April 2024
- 11 -

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 20 January 2025 and are signed on its behalf by:
20 January 2025
Mr S C R Skill
Director
Company registration number 02125100 (England and Wales)
SKILLS LEISURE LIMITED
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 30 APRIL 2024
30 April 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
11
257,144
342,858
Tangible assets
12
340,517
95,383
Investments
13
771,431
771,431
1,369,092
1,209,672
Current assets
Debtors
16
4,707,040
2,635,896
Cash at bank and in hand
10,666
13,727
4,717,706
2,649,623
Creditors: amounts falling due within one year
17
(5,163,674)
(3,218,947)
Net current liabilities
(445,968)
(569,324)
Total assets less current liabilities
923,124
640,348
Creditors: amounts falling due after more than one year
18
(267,887)
(51,585)
Net assets
655,237
588,763
Capital and reserves
Called up share capital
23
10,000
10,000
Profit and loss reserves
24
645,237
578,763
Total equity
655,237
588,763

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 £66,474 (2023 - £137,095 loss).

The financial statements were approved by the board of directors and authorised for issue on 20 January 2025 and are signed on its behalf by:
20 January 2025
Mr S C R Skill
Director
Company Registration No. 02125100
SKILLS LEISURE LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 13 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
£
Balance at 1 May 2022
10,000
66,842
882,349
(757,816)
201,375
179,424
380,799
Year ended 30 April 2023:
Profit and total comprehensive income
-
-
-
(98,338)
(98,338)
194,021
95,683
Dividends
-
-
-
(42,600)
(42,600)
(66,000)
(108,600)
Balance at 30 April 2023
10,000
66,842
882,349
(898,754)
60,437
307,445
367,882
Year ended 30 April 2024:
Loss and total comprehensive income
-
-
-
(104,110)
(104,110)
45,647
(58,463)
Dividends
-
-
-
(39,600)
(39,600)
(66,000)
(105,600)
Balance at 30 April 2024
10,000
66,842
882,349
(1,042,464)
(83,273)
287,092
203,819
SKILLS LEISURE LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 14 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 May 2022
10,000
715,858
725,858
Year ended 30 April 2023:
Loss and total comprehensive income for the year
-
(137,095)
(137,095)
Balance at 30 April 2023
10,000
578,763
588,763
Year ended 30 April 2024:
Profit and total comprehensive income
-
66,474
66,474
Balance at 30 April 2024
10,000
645,237
655,237
SKILLS LEISURE LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024
- 15 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
1,674,958
919,503
Interest paid
(225,731)
(251,216)
Income taxes refunded
-
0
43,193
Net cash inflow from operating activities
1,449,227
711,480
Investing activities
Purchase of tangible fixed assets
(3,746,292)
(1,118,659)
Proceeds from disposal of tangible fixed assets
964,327
1,670,277
Interest received
-
0
145
Net cash (used in)/generated from investing activities
(2,781,965)
551,763
Financing activities
Repayment of bank loans
(640,000)
(600,000)
Payment of finance leases obligations
2,997,666
(757,730)
Dividends paid to equity shareholders
(39,600)
(42,600)
Dividends paid to non-controlling interests
(66,000)
(66,000)
Net cash generated from/(used in) financing activities
2,252,066
(1,466,330)
Net increase/(decrease) in cash and cash equivalents
919,328
(203,087)
Cash and cash equivalents at beginning of year
289,817
492,904
Cash and cash equivalents at end of year
1,209,145
289,817
Relating to:
Cash at bank and in hand
1,256,199
335,581
Bank overdrafts included in creditors payable within one year
(47,054)
(45,764)
SKILLS LEISURE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 16 -
1
Accounting policies
Company information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is White House, Clarendon Street, Nottingham, NG1 5GF. The Company is that of a coach operator.

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 consolidated financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

A separate profit and loss account for the company has not been included in the group accounts. The realised profit for the year for the company is £66,474 (2023: (£137,095)).

 

Qualifying subsidiaries have taken advantage of reduced disclosure in their individual accounts relating to financial instruments and related party transactions.

1.2
Going concern

The Directors believe that the Group’s financial statements should be prepared on a going concern basis and have considered a period of twelve months from the date of the approval of these financial statements.

The Company and its wider group have returned to operational profitability following the losses incurred during the Covid-19 pandemic, and Group results and forecasts for the current year indicate strong growth for pre-tax profits through to December 2024. However, as at the year end the Group accounts of Skills Leisure Limited show net current liabilities of £2,019,496 which include obligations under bank loans and finance leases totalling £1,776,198. These liabilities, together with the long-term finance creditors, are all on a structured repayment basis and group forecasts indicate expectations of future profit growth to enable the group to meet these obligations as they fall due. In addition to this, the Company holds significant group creditors which are repayable on demand and therefore the Company is reliant on the other group entities in respect of this continued support.

It is the director’s opinion that, having reviewed the management information, the future forecasts and the improved profitability of the Group for the year to date, there is reasonable expectation that the Group will continue to grow both turnover and profitability and thus be able to meet the future structured repayments as they fall due. Accordingly, these accounts have been prepared on a going concern basis.

SKILLS LEISURE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 17 -
1.3
Turnover

Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for services rendered, stated net of discounts and of Value Added Tax.

Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that expenses recognised are recoverable.

1.4
Intangible fixed assets - goodwill

Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business.

 

Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight line basis over its useful life. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed ten years. The recognised goodwill is being amortised between 7-10 years on a straight- line basis.

 

 

1.5
Intangible fixed assets other than goodwill

Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at a revalued amount, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses.

 

Intangible assets acquired as part of a business combination are recorded at the fair value at the acquisition date.

Amortisation 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:

Domain name
20% straight line
Patents, trademarks and licences
20% straight line
Customer list
20% straight line

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

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.

 

Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

 

An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in capital and reserves, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in capital and reserves in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in capital and reserves in respect of that asset, the excess shall be recognised in profit or loss.

SKILLS LEISURE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 18 -

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:

Long leasehold property
Straight line over the life of the lease
Plant and machinery
10/20% straight line
Fixtures,  fittings and equipment
10/20% reducing balance, or 5/20% straight line
Motor vehicles
10/20% straight line

If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates.

1.7
Fixed asset investments

Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses. Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.

1.8
Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

 

When it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.

 

For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

1.9
Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stocks to their present location and condition.

SKILLS LEISURE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 19 -
1.10
Financial instruments

A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument.

 

Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 

Debt instruments are subsequently measured at amortised cost.

 

Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment.

 

Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 

Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.

 

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately.

 

For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets or either assessed individually or grouped on the basis of similar credit risk characteristics.

 

Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

1.11
Taxation

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves. In this case, tax is recognised in other comprehensive income or directly in capital and reserves, respectively.

Current tax

Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

SKILLS LEISURE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 20 -
1.12
Employee benefits

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.

 

When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised in finance costs in profit or loss in the period in which it arises.

1.13
Leases

Assets held under finance leases are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset.

 

Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

1.14
Government grants

Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received.

 

Government grants are recognised using the accrual model and the performance model.

 

Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable.

 

Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset.

 

Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.

1.15
Foreign exchange

Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to profit or loss.

1.16

Debtors and creditors receivable / payable within one year

Debtors and creditor with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in administrative expenses.

SKILLS LEISURE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 21 -
2
Judgements and key sources of estimation uncertainty

The directors make estimates and assumptions concerning the future, they are also required to exercise judgement in the process of applying the company's accounting policies. 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 estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

 

In preparing these financial statements, the directors have made the following judgements:

 

Impairment of non-current assets. The company assesses the impairment of property, plant and equipment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Factors considered important that could trigger an impairment review include the following:

 

1)    Significant underperformance relative to historical or projected future operating results;

 

2)    Significant changes in the use of the acquired assets or the business strategy, and

 

3)    Significant negative industry or economic trends.

 

The following are the company's key sources of estimation uncertainty:

Depreciation and residual values

The directors have reviewed the asset lives and associated residual values of all fixed asset classes and have concluded that asset lives and residual values are appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projects disposal values.

Recoverability of trade debtors

Trade and other receivables are recognised to the extent that they are judged recoverable. Management reviews are performed to estimate the level of reserves required for irrecoverable debt. Provisions are made specifically against invoices where recoverability is uncertain. Management makes allowance for doubtful debts based on an assessment of the recoverability of debtors. Allowances are applied to debtors where events or changes in circumstances indicate that the carrying amounts may not be recoverable. Management specifically analyse historical bad debts, customer creditworthiness, current economic trends and changes in customer payment terms when making a judgment to evaluate the adequacy of the provision for doubtful debts. Where the expectation is different from the original estimate, such difference will impact the carrying value of debtors and the charge in the profit and loss account.

Provisions

A provision is recognised when the company has a present legal or constructive obligation as a result of a past event for which it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. The nature and type of risks for these provisions differ and management's judgment is applied regarding the nature and extent of obligations in deciding if an outflow of resources is probable or not.

Taxation

There are many transactions and calculations for which the ultimate tax determination is uncertain. The company recognises liabilities for anticipated tax issues based on estimates of whether additional taxes will be due.

SKILLS LEISURE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 22 -
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Rendering of services
19,971,333
18,347,209
2024
2023
£
£
Other revenue
Interest income
-
145

The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.

4
Operating profit/(loss)
2024
2023
£
£
Operating profit/(loss) for the year is stated after charging:
Depreciation of owned tangible fixed assets
783,922
794,767
Loss on disposal of tangible fixed assets
183,012
113,579
Amortisation of intangible assets
482,135
400,984
Operating lease charges
1,326,807
1,171,151
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
11,000
10,000
Audit of the financial statements of the company's subsidiaries
21,004
15,150
32,004
25,150
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
Drivers
205
205
149
149
Management/admin
29
29
29
29
Total
234
234
178
178
SKILLS LEISURE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
6
Employees
(Continued)
- 23 -

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
6,040,624
5,329,844
3,739,473
3,135,917
Social security costs
546,713
470,130
340,614
279,894
Pension costs
159,522
129,354
116,775
89,440
6,746,859
5,929,328
4,196,862
3,505,251
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
19,200
19,200
Company pension contributions to defined contribution schemes
55,000
40,000
74,200
59,200

The number of directors who accrued benefits under company pension during the year was 2 (2023: 2).

8
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
-
145
9
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
-
129,850
Interest on finance leases and hire purchase contracts
225,731
121,366
Total finance costs
225,731
251,216
10
Taxation
2024
2023
£
£
Deferred tax
Origination and reversal of timing differences
77,515
(347,246)
SKILLS LEISURE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
10
Taxation
(Continued)
- 24 -

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

2024
2023
£
£
Profit/(loss) before taxation
19,052
(251,563)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 19.00% (2023: 19.00%)
3,620
(47,797)
Unutilised tax losses carried forward
(645,518)
(601,384)
Group relief
24,481
25,978
Permanent capital allowances in excess of depreciation
694,932
275,957
Taxation charge/(credit)
77,515
(347,246)
11
Intangible fixed assets
Group
Goodwill
Domain name
Patents, trademarks and licences
Customer list
Total
£
£
£
£
£
Cost
At 1 May 2023
4,816,526
392,795
409,272
124,611
5,743,204
Disposals
(48,874)
-
0
-
0
-
0
(48,874)
At 30 April 2024
4,767,652
392,795
409,272
124,611
5,694,330
Amortisation and impairment
At 1 May 2023
3,151,891
392,795
409,272
124,611
4,078,569
Amortisation charged for the year
482,135
-
0
-
0
-
0
482,135
Disposals
(48,874)
-
0
-
0
-
0
(48,874)
At 30 April 2024
3,585,152
392,795
409,272
124,611
4,511,830
Carrying amount
At 30 April 2024
1,182,500
-
0
-
0
-
0
1,182,500
At 30 April 2023
1,664,635
-
0
-
0
-
0
1,664,635
SKILLS LEISURE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
11
Intangible fixed assets
(Continued)
- 25 -
Company
Goodwill
£
Cost
At 1 May 2023 and 30 April 2024
600,000
Amortisation and impairment
At 1 May 2023
257,142
Amortisation charged for the year
85,714
At 30 April 2024
342,856
Carrying amount
At 30 April 2024
257,144
At 30 April 2023
342,858

More information on impairment movements in the year is given in note .

12
Tangible fixed assets
Group
Long leasehold property
Plant and machinery
Fixtures,  fittings and equipment
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 May 2023
80,218
157,884
671,420
11,839,693
12,749,215
Additions
-
0
66,889
22,725
3,656,678
3,746,292
Disposals
-
0
(140,277)
-
0
(4,407,419)
(4,547,696)
At 30 April 2024
80,218
84,496
694,145
11,088,952
11,947,811
Depreciation and impairment
At 1 May 2023
80,218
127,856
497,540
8,328,819
9,034,433
Depreciation charged in the year
-
0
8,602
72,035
703,285
783,922
Eliminated in respect of disposals
-
0
(122,748)
-
0
(3,277,609)
(3,400,357)
At 30 April 2024
80,218
13,710
569,575
5,754,495
6,417,998
Carrying amount
At 30 April 2024
-
0
70,786
124,570
5,334,457
5,529,813
At 30 April 2023
-
0
30,028
173,880
3,510,874
3,714,782
SKILLS LEISURE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
12
Tangible fixed assets
(Continued)
- 26 -
Company
Fixtures,  fittings and equipment
Motor vehicles
Total
£
£
£
Cost or valuation
At 1 May 2023
133,238
-
0
133,238
Additions
17,925
297,500
315,425
At 30 April 2024
151,163
297,500
448,663
Depreciation and impairment
At 1 May 2023
37,855
-
0
37,855
Depreciation charged in the year
20,707
49,584
70,291
At 30 April 2024
58,562
49,584
108,146
Carrying amount
At 30 April 2024
92,601
247,916
340,517
At 30 April 2023
95,383
-
0
95,383

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
£
£
£
£
Plant and machinery
125,459
-
0
-
0
-
0
Motor vehicles
3,939,378
1,782,464
-
0
-
0
4,064,837
1,782,464
-
-
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
10,000
10,000
771,431
771,431
Listed investments
2,506
2,506
-
0
-
0
Unlisted investments
101,355
101,355
-
0
-
0
113,861
113,861
771,431
771,431

Listed investments included above:

Market value if different from carrying amount
1,244
1,244
-
-
SKILLS LEISURE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
13
Fixed asset investments
(Continued)
- 27 -
Movements in fixed asset investments
Group
Shares in subsidiaries
Other investments
Total
£
£
£
Cost or valuation
At 1 May 2023 and 30 April 2024
10,000
103,861
113,861
Carrying amount
At 30 April 2024
10,000
103,861
113,861
At 30 April 2023
10,000
103,861
113,861
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 May 2023 and 30 April 2024
771,431
Carrying amount
At 30 April 2024
771,431
At 30 April 2023
771,431
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
Indirect
Skills Motor Coaches Limited
Belgrave Business Park, Belgrave Road, Bulwell, Nottingham, NG6 8LY
Ordinary
59.51
59.51
Skills Travel Limited
White House, Clarendon Street, Nottingham, NG1 5GF
Ordinary
100.00
100.00
Nottingham City Coaches Limited
The Holiday Center, Belgrave Road, Bulwell, Nottingham, Nottinghamshire, NG6 8LY
Ordinary
10.00
63.56
Silverdale Tours (Nottingham) Limited
White House, Clarendon Street, Nottingham, NG1 5GF
Ordinary
1.00
63.56
Apartair Travel Limited
C/O Skills Holidays, Belgrave Road, Bulwell, Nottingham, NG6 8LY
Ordinary
-
59.50
Skills and Wardle Sports Tours Limited
White House, Clarendon Street, Nottingham, NG1 5GF
Ordinary
-
59.51
SKILLS LEISURE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
14
Subsidiaries
(Continued)
- 28 -

All of the above subsidiaries are included in the consolidation of the group accounts with the exception of the bottom two which are excluded as they are dormant.

 

By virtue of section 479A of the Companies Act 2006 the subsidiary Nottingham City Coaches Limited is exempt from requiring an audit. As a result of this exemption Skills Leisure Limited has guaranteed the debtors of this company.

 

All subsidiaries included in the consolidated accounts have been audited with the exemption of the above mentioned company.

 

The aggregate amount of capital and reserves and the results of the undertakings not included in the consolidation for the last relevant financial year were as follows:-

 

Apartair Travel Limited capital and reserves - £9,883

Skills and Wardle Sports Tours Limited capital and reserves - £1

15
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
405,827
369,363
-
0
-
0
16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,379,664
1,121,671
-
0
-
0
Corporation tax recoverable
142,842
142,842
-
0
-
0
Amounts owed by group undertakings
-
-
4,693,904
2,596,245
Other debtors
383,656
522,461
4,367
39,651
Prepayments and accrued income
948,649
970,171
8,769
-
0
2,854,811
2,757,145
4,707,040
2,635,896
Amounts falling due after more than one year:
Deferred tax asset (note 21)
2,544
3,104
-
0
-
0
Total debtors
2,857,355
2,760,249
4,707,040
2,635,896

The amounts owed by Group undertakings are interest free and repayable on demand.

SKILLS LEISURE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 29 -
17
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
19
687,054
685,764
-
0
-
0
Obligations under finance leases
20
1,089,144
602,961
66,060
26,867
Trade creditors
1,101,667
1,215,179
280,072
189,407
Amounts owed to group undertakings
-
0
-
0
4,766,618
2,982,632
Other taxation and social security
127,334
289,688
-
-
Deferred income
1,471,897
1,361,355
-
0
-
0
Other creditors
1,488,896
1,133,525
-
0
-
0
Accruals and deferred income
572,885
647,695
50,924
20,041
6,538,877
5,936,167
5,163,674
3,218,947

The bank hold the following security: First fixed charge over book and other debts, chattels, goodwill and uncalled capital, both present and future and first floating charge over all assets and undertakings both present and future dated 27 April 2006. Composite company unlimited multilateral guarantee dated 26 April 2006 given by Skills Motor Coaches Limited, Nottingham City Coaches Limited, Skills Leisure Limited, Skills Travel Limited, McEwens Coaches Limited, Apartair Travel Limited and Silverdale Tours (Nottingham) Limited.

Finance lease and hire purchase contracts are secured on the assets concerned.

 

As at 30 April 2024 the creditors due in under 1 year which are secured total £2,548,941 (2023: £1,929,824) for the group and £66,060 (2023: £26,867) for the parent company.

 

A bank loan of £1.73m is repayable in instalments and is due to be repaid by July 2026. Interest is charged at 3.99% above base rate. A bank loan totalling 1.2m is repayable in instalments and is due to be repaid in June 2027. Interest is charged at 3.99% above base rate.

 

The obligations under finance leases are all repayable within the next 5 years and the interest rate depends on the individual agreements.

 

The amounts owed to Group undertakings are interest free and repayable on demand.

 

Included in bank loans and overdrafts are invoice factoring liabilities totalling £772,743 (2023: £641,099). These are secured on the debtors to which they relate.

18
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
19
1,053,333
1,693,333
-
0
-
0
Obligations under finance leases
20
3,269,137
757,654
267,887
51,585
4,322,470
2,450,987
267,887
51,585
SKILLS LEISURE 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)
- 30 -

The bank hold the following security: First fixed charge over book and other debts, chattels, goodwill and uncalled capital, both present and future and first floating charge over all assets and undertakings both present and future dated 27 April 2006. Composite company unlimited multilateral guarantee dated 26 April 2006 given by Skills Motor Coaches Limited, Nottingham City Coaches Limited, Skills Leisure Limited, Skills Travel Limited, McEwens Coaches Limited, Apartair Travel Limited and Silverdale Tours (Nottingham) Limited.

Finance lease and hire purchase contracts are secured on the assets concerned.

 

As at 30 April 2024 the creditors due in more than 1 year which are secured total £4,322,470 (2023: £2,450,987) for the group and £267,887 (2023: £51,595) for the company.

 

A bank loan of £1.73m is repayable in instalments and is due to be repaid by July 2026. Interest is charged at 3.99% above base rate. A bank loan totalling 1.2m is repayable in instalments and is due to be repaid in June 2027. Interest is charged at 3.99% above base rate.

 

The obligations under finance leases are all repayable within the next 5 years and the interest rate depends on the individual agreements.

 

Finance and hire purchase contracts are secured on the assets concerned.

 

19
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
1,693,333
2,333,333
-
0
-
0
Bank overdrafts
47,054
45,764
-
0
-
0
1,740,387
2,379,097
-
-
Payable within one year
687,054
685,764
-
0
-
0
Payable after one year
1,053,333
1,693,333
-
0
-
0
20
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
1,089,144
602,961
66,060
26,867
In two to five years
3,269,137
757,654
267,887
51,585
4,358,281
1,360,615
333,947
78,452

All hire purchase contracts are secured on the asset to which they relate.

SKILLS LEISURE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 31 -
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
280,389
203,434
2,544
3,104
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 May 2023
200,330
-
Charge to profit or loss
77,515
-
Liability at 30 April 2024
277,845
-
22
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
159,522
129,354

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

At the year end £23,398 (2023: £21,140) of pension contributions were unpaid and included in creditors.

23
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
10,000
10,000
10,000
10,000

Ordinary shares have full voting rights and participating rights.

SKILLS LEISURE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 32 -
24
Reserves
Share premium

This reserve records the amount above the nominal value received for shares sold, less transaction costs.

Other reserves

The bought forward other reserves arose on consolidation in 2008 and are not considered to be distributable. The additional movement in the other reserves arose from the share premium of one of the subsidiaries and not considered distributable.

Profit and loss reserves

This reserve records retained earnings and accumulated losses.

25
Financial commitments, guarantees and contingent liabilities

The company is required in the ordinary course of business by QBE European Operations to procure bonds in favour of the insurance company. Such bonds are normally given by the company's bankers who require the company to indemnify the bank against potential liabilities. The total of such bonds in force at 30 April 2024 was £1,000,000 (2023: £600,000).

 

The Company receives claims against it's third party managed insurance pot in relation to it's motor fleet. At the year end, the Company has recognised £207,750 (2023: £235,369) of accruals in relation to potential future pay-outs of these claims. The aggregate estimated value of pay-outs in relation to ongoing claims at the year end was £343,672 (2023: £392,281).

26
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
1,329,705
1,633,624
-
-
Between two and five years
1,779,090
3,108,795
-
-
3,108,795
4,742,419
-
-
27
Capital commitments

At the end of the period, the company has capital commitments contracted for but not provided in these financial statements.

Group
Company
2024
2023
2024
2023
£
£
£
£
Acquisition of tangible fixed assets
942,500
-
-
-
SKILLS LEISURE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 33 -
28
Related party transactions

The Group

 

At 30 April 2024 the Group owed £90,172 (2023: £17,133) from Laver Holidays Limited, owed £42,676 (2023: £40,100) to Laver Motorcoach Charter Limited and owed £93,196 (2023: (£32,570) from McEwens Coaches Limited. These Companies all have directors in common with the Group.

 

The Group was owed £Nil (2023: £127,879) from and £200,895 (2023: £Nil) to Skills Transport Solutions Limited, a Company with directors in common with the Group.

 

Dividends of £76,200 (2023: £81,600) were paid to directors. No amounts remained outstanding at the year-end (2023: £Nil).

 

Mr S.C.R. Skill is also a partner of Higson & Co (Nottingham) Limited. Chartered Accountants, who provide a consultancy service. At 30th April 2024 the Group were owed £Nil (2023: £Nil) and professional services supplied during the period amounted to £15,130 (2023: £13,750) excluding VAT.


During the year amounts were paid to the Director’s private pension scheme of £55,000 (2023: £40,000) and at 30 April 2024 £Nil (2023: £Nil) was owed to this.

 

Included in investments is £59,340 (2023: £59,340) that was an investment in a project that is connected to one of the directors.

The Company

 

At 30th April 2024 the Parent Company was owed £2,657,275 (2023: £1,332,182) by group companies which are not wholly owned in the group.


At 30th April 2024 the Parent Company owed £4,766,618 (2023: £2,982,632) to group companies which are not wholly owned in the group.

 

The amounts owed by group companies and to group companies are interest free and repayable on demand.

 

During the year the Parent Company received management charge income of £1,195,600 (2023: £2,114,372) from group companies.

 

At 30 April 2024 the Company was owed £2,000 (2023: £2,000) from Laver Holidays Limited, owed £2,000 (2023: £2,000) from Laver Motorcoach Charter Limited and owed £45 (2023: £45) from McEwens Coaches Limited, all Companies with directors in common with the Parent.

 

Mr S.C.R. Skill is also a partner of Higson & Co (Nottingham) Limited. Chartered Accountants, who provide a consultancy service. At 30th April 2024 the Company were owed £Nil (2023: £Nil) and professional services supplied during the period amounted to £5,325 (2023: £4,480) excluding VAT.

SKILLS LEISURE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 34 -
29
Directors' transactions

All loans are due on demand, unsecured and interest free.

 

Year ended 30 April 2024
Description
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Mr S C R Skill
1,193
20,675
20,576
1,292
Mr N S A Skill
38,965
103,321
108,445
33,841
Mr P R Hallam
5,756
58,800
63,800
756
45,914
182,796
192,821
35,889
Year ended 30 April 2023
Description
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Mr S C R Skill
3,649
24,950
27,406
1,193
Mr N S A Skill
5,349
115,771
82,161
38,965
Mr P R Hallam
5,756
62,300
62,300
5,756
14,754
203,027
171,867
45,914
30
Controlling party

S C R Skill and N S A Skill jointly control the company by way of equal shareholding and control on a day to day basis.

31
Analysis of changes in net debt - group
1 May 2023
Cash flows
30 April 2024
£
£
£
Cash at bank and in hand
335,581
920,618
1,256,199
Bank overdrafts
(45,764)
(1,290)
(47,054)
289,817
919,328
1,209,145
Borrowings excluding overdrafts
(2,333,333)
640,000
(1,693,333)
Obligations under finance leases
(1,360,615)
(2,997,666)
(4,358,281)
(3,404,131)
(1,438,338)
(4,842,469)
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