Company Registration No. 08045652 (England and Wales)
THE WARREN HOLDING COMPANY LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
THE WARREN HOLDING COMPANY LIMITED
COMPANY INFORMATION
Directors
DJ Bryan
EM Fitzmaurice
JB Moran
Secretary
DJ Bryan
Company number
08045652
Registered office
The Warren Golf and Country Club
Woodham Walter
Nr Danbury
Chelmsford
Essex
CM9 6RW
Auditor
Rickard Luckin Limited
1st Floor
County House
100 New London Road
Chelmsford
CM2 0RG
THE WARREN HOLDING COMPANY LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 32
THE WARREN HOLDING COMPANY LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 1 -
The directors present the Group Strategic Report for The Warren Holding Company Limited ("the company") and its subsidiary undertakings (collectively "the group") for the year ended 30 April 2024.
Review of the business
The company through its subsidiary entities The Warren Golf & Country Club Limited, The Warren Golf Number 1 Limited and The Warren Lodge Park Limited provides a variety of golf and leisure facilities.
The Warren Golf & Country Club Limited incorporates the Rose Barn function suite, clubhouse bar and restaurant, pro shop and 18-hole golf course. The core revenue streams are wedding income and membership subscriptions. Wedding trade over this period has grown and is showing a positive upward trend for the coming year. Golf membership retention has remained high and we continue to attract new members by maintaining investment in our golf course product.
The Warren Golf Number 1 Limited runs two 9-hole golf course, Bunsay and Badgers golf clubs with public green fees being the core to its business. Limited ancillary spends come from food and beverage income.
The Warren Lodge Park Limited's business activity is the operation of the estate’s lodge park, health club and the generation of ground rents from lodge owners. Gym Membership continues to grow as we consolidate our strong position within this competitive market place.
The Warren Estate businesses and brands that sit with in it, give it a unique level of mixed seasonal income streams. This achieves the management’s objective for the estate to maximise contribution across all months of the year.
Details of the business activity in the post year end period is covered in the going concern and post balance sheet events section in the Directors' Report.
Principal risks and uncertainties
The group’s operations are exposed to a variety of financial risks of which competition from other venues, new government associated costs to the hospitality business, pressures of the cost of living, UK recession, inflationary costs, stock risk and working capital management are considered to be risks by the directors. The group has in place a risk management program that seeks to limit their adverse effects on the financial performance of the group.
Competition from other golf clubs
Management conducts an ongoing and realistic competitor analysis to ensure the Warren Estate remains highly competitive with the quality of the course and club facilities that are provided by neighbouring courses and venues.
Stock risk
The group's exposure to stock risk is in respect obsolescence, over-stocking and over-valuation. The directors consider that the group has robust procedures in place, which are regularly reviewed, to mitigate stock risk both of golf stock. Stock levels are monitored against historic sales performance and sales forecasts to identify any stock items that are potentially obsolete, over-stocked or over-valued, with steps taken to mitigate the effect on the group. Where necessary, provision is made to cover obsolete, excess or over-valued stock.
Working capital management risk
Working capital is critical to the success of the business and the continued growth of the business. The group manages working capital by the use of detailed forecasts and budgets to ensure cash from sales provides sufficient liquidity to pay suppliers and to ensure stock levels can be sustained to deliver the wide range of products expected by customers.
Key performance indicators
The financial key performance indicators of the group are those that communicate the financial performance and strength of the group as a whole and these are:
2024 2023
Turnover £4,061,999 £4,449,641
Turnover (excluding lodge sales) £3,786,746 £3,362,098
Gross Profit % 76.9% 69.4%
EBITDA £893,383 £1,151,012
THE WARREN HOLDING COMPANY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -
Going concern and post balance sheet events
The level of membership within the company remains consistent and green fee income continues to grow as we continue to invest in our golf courses and improve the playing conditions and course management.
Weddings and events have a strong forward book of bookings for both 2025 and 2026. This has led to an increase in food and beverage turnover and the stability of the business.
The health club (Warren Active) has seen membership continue to grow and lodge rentals demand remains stable. Lodge ground rents and services provided remain consistent to prior year.
The company has taken the necessary health and safety measures in line with the Government and England Golf’s guidelines and recommendation, to protect our employees, members and customers. Guidelines are continuously monitored, and changes reflected where necessary
The financial forecast for the next twelve months from the approval of the financial statements indicate trading remains profitable and the cash balance over this period is forecast to remain positive. The forecast is based on conservative assumptions throughout the year and the forward book of events continues to grow. The group has the continued support of the shareholders.
DJ Bryan
Director
28 January 2025
THE WARREN HOLDING COMPANY LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 3 -
The directors present their annual report and financial statements for the year ended 30 April 2024.
Principal activities
The principal activity of the group continued to be that of running a golf and country club, hosting events including weddings, operating a gymnasium, and the management of a lodge park including the sale of lodges.
Results and dividends
The results for the year are set out on page 9.
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
DJ Bryan
EM Fitzmaurice
JB Moran
Auditor
Rickard Luckin Limited were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of directors' responsibilities
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Strategic report
Ttruehe group has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of financial risk disclosures.
THE WARREN HOLDING COMPANY LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 4 -
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
DJ Bryan
Director
28 January 2025
THE WARREN HOLDING COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THE WARREN HOLDING COMPANY LIMITED
- 5 -
Opinion
We have audited the financial statements of The Warren Holding Company 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 balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the group's and the parent company's affairs as at 30 April 2024 and of the group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
The information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
The strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
THE WARREN HOLDING COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THE WARREN HOLDING COMPANY LIMITED
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Capability of the audit in detecting irregularity, including fraud
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: general commercial and sector experience; through verbal and written communications with those charged with governance and other management and via inspection of the group's regulatory and legal correspondence.
We discussed with those charged with governance and other management the policies and procedures regarding compliance with laws and regulations.
We communicated identified laws and regulations to our team and remained alert to any indicators of non-compliance throughout the audit, we also specifically considered where and how fraud may occur within the group.
The potential effect of these laws and regulations on the financial statements varies considerably.
Firstly, the parent company and group is subject to laws and regulations that directly affect the financial statements, including: the company’s constitution; relevant financial reporting standards; company law; tax legislation and distributable profits legislation and we assess the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
THE WARREN HOLDING COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THE WARREN HOLDING COMPANY LIMITED
- 7 -
Secondly the parent company and group is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on the amounts or disclosures in the financial statements, for instance through the imposition of fines and penalties, or through losses arising from litigations. We identified the following areas as those most likely to have such an affect: operating licences as a wedding venue in addition to other relevant event permits; supply of alcohol licencing; employment legislation; health and safety legislation; trade legislation; data protection legislation; and anti-bribery and anti-corruption legislation.
ISAs (UK) limit the required procedures to identify non-compliance with these laws and regulations, and no procedures over and above those already noted are required. These limited procedures did not identify any actual or suspected non-compliance with laws and regulations that could have a material impact on the financial statements.
In relation to fraud, we performed the following specific procedures in addition to those already noted:
Challenging assumptions made by management in its significant accounting estimates in particular: impairment of goodwill, depreciation and amortisation;
Identifying and testing journal entries, in particular any entries posted with unusual nominal ledger account combinations, journal entries crediting any revenue account, and journal entries posted by senior management;
Performing analytical procedures to identify unexpected movements in account balances which may be indicative of fraud;
Ensuring that testing undertaken on both the performance statement, and the Balance Sheet includes a number of items selected on a random basis;
Discussions with management; and
Reviewing board minutes.
These procedures did not identify any actual or suspected fraudulent irregularity that could have a material impact on the financial statements.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with ISAs (UK). For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the procedures that we are required to undertake would identify it. In addition, as with any audit, there remains a high risk of non-detection of irregularities, as these might involve collusion, forgery, intentional omissions, misrepresentation, or the override of internal controls. We are not responsible for preventing non-compliance with laws and regulations or fraud, and cannot be expected to detect non-compliance with all laws and regulations or every incidence of fraud.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
THE WARREN HOLDING COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THE WARREN HOLDING COMPANY LIMITED
- 8 -
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.
Amit Popat (Senior Statutory Auditor)
For and on behalf of Rickard Luckin Limited
28 January 2025
Chartered Accountants
Statutory Auditor
1st Floor
County House
100 New London Road
Chelmsford
Essex
CM2 0RG
THE WARREN HOLDING COMPANY LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024
- 9 -
2024
2023
as restated
Notes
£
£
Turnover
3
4,061,999
4,449,641
Cost of sales
(939,946)
(1,360,738)
Gross profit
3,122,053
3,088,903
Administrative expenses
(2,728,888)
(2,579,606)
Other operating income
-
179,698
Operating profit
4
393,165
688,995
Interest receivable and similar income
7
21,077
Interest payable and similar expenses
8
(150,727)
(135,972)
Profit before taxation
263,515
553,023
Tax on profit
9
3,629
(116,442)
Profit for the financial year
23
267,144
436,581
Profit for the financial year is all attributable to the owners of the parent company.
THE WARREN HOLDING COMPANY LIMITED
GROUP BALANCE SHEET
AS AT 30 APRIL 2024
30 April 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
10
224,801
252,301
Tangible assets
11
6,207,555
6,524,034
6,432,356
6,776,335
Current assets
Stocks
14
142,887
214,579
Debtors
15
1,344,179
767,165
Cash at bank and in hand
662,030
475,058
2,149,096
1,456,802
Creditors: amounts falling due within one year
16
(1,883,319)
(3,349,025)
Net current assets/(liabilities)
265,777
(1,892,223)
Total assets less current liabilities
6,698,133
4,884,112
Creditors: amounts falling due after more than one year
17
(1,697,169)
(88,144)
Provisions for liabilities
Deferred tax liability
20
25,231
87,379
(25,231)
(87,379)
Net assets
4,975,733
4,708,589
Capital and reserves
Called up share capital
22
36,337
36,337
Share premium account
23
457,849
457,849
Profit and loss reserves
23
4,481,547
4,214,403
Total equity
4,975,733
4,708,589
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 28 January 2025 and are signed on its behalf by:
28 January 2025
DJ Bryan
Director
Company registration number 08045652 (England and Wales)
THE WARREN HOLDING COMPANY LIMITED
COMPANY BALANCE SHEET
AS AT 30 APRIL 2024
30 April 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
12
2,000,300
2,000,300
Current assets
Debtors falling due after more than one year
15
750,000
Debtors falling due within one year
15
2,051,712
3,493,583
Cash at bank and in hand
51,477
30,552
2,853,189
3,524,135
Creditors: amounts falling due within one year
16
(1,225,405)
(3,372,071)
Net current assets
1,627,784
152,064
Total assets less current liabilities
3,628,084
2,152,364
Creditors: amounts falling due after more than one year
17
(1,590,000)
-
Net assets
2,038,084
2,152,364
Capital and reserves
Called up share capital
22
36,337
36,337
Share premium account
23
457,849
457,849
Profit and loss reserves
23
1,543,898
1,658,178
Total equity
2,038,084
2,152,364
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £114,280 (2023 - £256,660 loss).
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 28 January 2025 and are signed on its behalf by:
28 January 2025
DJ Bryan
Director
Company registration number 08045652 (England and Wales)
THE WARREN HOLDING COMPANY LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 12 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 May 2022
36,337
457,849
3,777,822
4,272,008
Year ended 30 April 2023:
Profit and total comprehensive income
-
-
436,581
436,581
Balance at 30 April 2023
36,337
457,849
4,214,403
4,708,589
Year ended 30 April 2024:
Profit and total comprehensive income
-
-
267,144
267,144
Balance at 30 April 2024
36,337
457,849
4,481,547
4,975,733
THE WARREN HOLDING COMPANY LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 13 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 May 2022
36,337
457,849
1,914,838
2,409,024
Year ended 30 April 2023:
Loss and total comprehensive income for the year
-
-
(256,660)
(256,660)
Balance at 30 April 2023
36,337
457,849
1,658,178
2,152,364
Year ended 30 April 2024:
Profit and total comprehensive income
-
-
(114,280)
(114,280)
Balance at 30 April 2024
36,337
457,849
1,543,898
2,038,084
THE WARREN HOLDING COMPANY LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
683,738
1,002,000
Interest paid
(150,727)
(135,972)
Income taxes paid
(210,525)
(143,510)
Net cash inflow from operating activities
322,486
722,518
Investing activities
Purchase of tangible fixed assets
(131,292)
(423,619)
Proceeds from disposal of tangible fixed assets
64,718
-
Interest received
21,077
Net cash used in investing activities
(45,497)
(423,619)
Financing activities
Proceeds from borrowings
785,000
-
Repayment of borrowings
(681,501)
(399,999)
Transfer of borrowings to company under common influence
(112,500)
Payment of finance leases obligations
(81,016)
(66,661)
Net cash used in financing activities
(90,017)
(466,660)
Net increase/(decrease) in cash and cash equivalents
186,972
(167,761)
Cash and cash equivalents at beginning of year
475,058
642,819
Cash and cash equivalents at end of year
662,030
475,058
THE WARREN HOLDING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 15 -
1
Accounting policies
Company information
The Warren Holding Company Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is The Warren Golf and Country Club, Woodham Walter, Nr Danbury, Chelmsford, Essex, CM9 6RW.
The group consists of The Warren Holding Company Limited and all of its subsidiaries.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where this company is 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:
1.2
Business combinations
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
THE WARREN HOLDING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 16 -
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company The Warren Holding Company 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 30 April 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
1.4
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.
1.5
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of lodges is recognised when the significant risks and rewards of ownership of the lodges have passed to the buyer, which is on completion, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of services is recognised in accordance with lease terms as earned.
Membership income is spread over the period to which it relates.
1.6
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life. The directors consider that amortising the goodwill over 20 years best reflects the period over which the company will benefit from the membership fees received from the acquired membership which resulted in the goodwill and is supported by the underlying revenue stream received.
1.7
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.
THE WARREN HOLDING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 17 -
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
Over 50 years straight line (land is not depreciated)
Plant and equipment
Over 3-15 years straight line
Fixtures and fittings
3-15 years
Other fixed assets
Over 5-50 years straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
1.8
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.
1.9
Impairment of fixed assets
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). 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.
THE WARREN HOLDING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 18 -
1.10
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.11
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.12
Financial instruments
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
THE WARREN HOLDING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 19 -
Basic financial liabilities
Basic financial liabilities, including creditors, loans from fellow group companies and shareholders 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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
1.13
Equity instruments
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
1.14
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
THE WARREN HOLDING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 20 -
1.15
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.
1.16
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.17
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.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.18
Restatement of profit and loss account
The comparative results in the profit and loss account have been restated to gross up cost of sales and administrative expenditure costs that had been net against turnover. The directors feel this is necessary in order for the financial statements to show a true and fair view. The effect of this adjustment is to increase turnover by £18,834, and to increase costs of sales and administrative expenditure by £10,081 and £8,753 respectively for the year ended 30 April 2023.
THE WARREN HOLDING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 21 -
2
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Assessment of goodwill for the group
Goodwill is assessed for impairment annually. The recoverable amount of cash generating units is higher of value in use and fair value less cost to sell. The calculation involves use of significant estimates and assumptions which includes fee income used to calculate projected future cash flows, risk-adjusted discount rate, future economic and market conditions. For the current year the directors concluded that no impairment provision was necessary.
Carrying value of investments
Judgement is required in assessing the underlying value of the investments which is based on its value in use. Any adverse change in estimates used in the calculation of the value in use leading to a reduction in the underlying value would lead to further impairment. For the current year the directors concluded that no further impairment provision was necessary.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Useful life of intangible and tangible fixed assets
Management review the useful life of fixed assets at the end of each reporting period. There is a certain level of judgement and estimation over this life and therefore the carrying value of the assets and the depreciation charge recognised within the financial statements.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Retail sales and green fees
511,619
405,995
Operating income from lodges
799,501
998,714
Bar, restaurant, and function income
1,438,455
1,079,884
Golf and gym memberships sales
1,037,171
877,505
Lodge sales
275,253
1,087,543
4,061,999
4,449,641
THE WARREN HOLDING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
3
Turnover and other revenue
(Continued)
- 22 -
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
4,061,999
4,449,641
2024
2023
£
£
Other revenue
Interest income
21,077
-
Insurance proceeds
-
179,698
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Fees payable to the group's auditor for the audit of the group's financial statements
14,783
3,750
Depreciation of owned tangible fixed assets
399,475
367,422
Depreciation of tangible fixed assets held under finance leases
73,243
67,095
Profit on disposal of tangible fixed assets
(4,125)
(3,490)
Amortisation of intangible assets
27,500
27,500
Operating lease charges
19,415
2,252
The amortisation of intangible assets is included within administration expenses.
5
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
Food, beverage and kitchen
29
26
-
-
Cleaning
9
10
-
-
Greens and maintenance
9
9
-
-
Pro-shop
5
5
-
-
Warren active
5
5
-
-
Administration
10
10
-
-
Total
67
65
THE WARREN HOLDING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
5
Employees
(Continued)
- 23 -
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
1,335,765
1,199,173
Social security costs
94,848
82,269
-
-
Pension costs
34,709
29,940
1,465,322
1,311,382
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
198,454
190,104
Company pension contributions to defined contribution schemes
9,923
9,412
208,377
199,516
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
2,327
Other interest income
18,750
-
Total income
21,077
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
39,074
21,146
Interest payable on shareholder loans
102,558
101,274
Other interest on financial liabilities
1,937
-
Interest on finance leases and hire purchase contracts
7,158
13,552
Total finance costs
150,727
135,972
THE WARREN HOLDING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 24 -
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
98,519
130,525
Adjustments in respect of prior periods
3,592
Total current tax
98,519
134,117
Deferred tax
Origination and reversal of timing differences
(62,148)
(17,675)
Tax losses carried forward
(40,000)
Total deferred tax
(102,148)
(17,675)
Total tax (credit)/charge
(3,629)
116,442
The actual (credit)/charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
263,515
553,023
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.49%)
65,879
107,784
Tax effect of expenses that are not deductible in determining taxable profit
4,384
15,140
Tax effect of income not taxable in determining taxable profit
(680)
Unutilised tax losses carried forward
(40,000)
Change in unrecognised deferred tax assets
(75,694)
1,847
Adjustments in respect of prior years
3,592
Effect of change in corporation tax rate
(844)
-
Permanent capital allowances in excess of depreciation
-
(11,241)
Depreciation on assets not qualifying for tax allowances
35,771
-
Amortisation on assets not qualifying for tax allowances
6,875
Taxation (credit)/charge
(3,629)
116,442
THE WARREN HOLDING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 25 -
10
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 May 2023 and 30 April 2024
559,939
Amortisation and impairment
At 1 May 2023
307,638
Amortisation charged for the year
27,500
At 30 April 2024
335,138
Carrying amount
At 30 April 2024
224,801
At 30 April 2023
252,301
The company had no intangible fixed assets at 30 April 2024 or 30 April 2023.
11
Tangible fixed assets
Group
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Other fixed assets
Total
£
£
£
£
£
Cost
At 1 May 2023
5,029,621
837,058
1,497,267
1,917,012
9,280,958
Additions
27,351
152,091
25,053
12,337
216,832
Disposals
(60,593)
(16,490)
(77,083)
At 30 April 2024
4,996,379
972,659
1,522,320
1,929,349
9,420,707
Depreciation and impairment
At 1 May 2023
712,917
628,545
760,782
654,680
2,756,924
Depreciation charged in the year
143,083
85,006
144,055
100,574
472,718
Eliminated in respect of disposals
(16,490)
(16,490)
At 30 April 2024
856,000
697,061
904,837
755,254
3,213,152
Carrying amount
At 30 April 2024
4,140,379
275,598
617,483
1,174,095
6,207,555
At 30 April 2023
4,316,704
208,513
736,485
1,262,332
6,524,034
The company had no tangible fixed assets at 30 April 2024 or 30 April 2023.
THE WARREN HOLDING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
11
Tangible fixed assets
(Continued)
- 26 -
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 equipment
114,250
74,481
Fixtures and fittings
27,472
114,250
101,953
-
-
Included within land and buildings are assets under construction of £nil (2023: £198,938).
12
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
13
2,000,300
2,000,300
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 May 2023 and 30 April 2024
2,000,300
Carrying amount
At 30 April 2024
2,000,300
At 30 April 2023
2,000,300
13
Subsidiaries
Details of the company's subsidiaries at 30 April 2024 are as follows:
Name of undertaking
Registered office
Company reg no.
Class of
% Held
shares held
Direct
The Warren Golf & Country Club Limited
The Warren Golf And Country Club Limited, Woodham Walter, Maldon, Essex, CM9 6RW
08044305
Ordinary
100.00
The Warren Golf Number 1 Limited
The Warren Golf And Country Club Limited, Woodham Walter, Maldon, Essex, CM9 6RW
08045346
Ordinary
100.00
The Warren Lodge Park Limited
The Warren Golf And Country Club Limited, Woodham Walter, Maldon, Essex, CM9 6RW
08045057
Ordinary
100.00
THE WARREN HOLDING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
13
Subsidiaries
(Continued)
- 27 -
For the financial year ended 30 April 2024 The Warren Holding Company Limited has given a parent guarantee to each subsidiary noted above, exempting each of the subsidiaries from the requirement to have an audit by virtue of S479c of Companies Act 2006.
Results of each subsidiary are included within the consolidated financial statements.
14
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Work in progress
41,862
131,254
-
-
Finished goods and goods for resale
101,025
83,325
142,887
214,579
-
-
15
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
47,300
79,155
Unpaid share capital
423,676
423,676
423,676
423,676
Amounts owed by group undertakings
-
-
1,627,080
2,890,009
Other debtors
3,001
189,280
956
179,898
Prepayments and accrued income
80,202
75,054
554,179
767,165
2,051,712
3,493,583
Deferred tax asset (note 20)
40,000
594,179
767,165
2,051,712
3,493,583
Amounts falling due after more than one year:
Amount owed by related parties
750,000
750,000
Total debtors
1,344,179
767,165
2,801,712
3,493,583
THE WARREN HOLDING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 28 -
16
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance leases
18
54,321
68,172
Other borrowings
19
300,000
1,899,001
300,000
1,899,001
Trade creditors
196,586
247,272
Amounts owed to group undertakings
913,200
1,461,325
Corporation tax payable
18,519
130,525
Other taxation and social security
117,364
103,188
-
-
Deferred income
297,110
109,826
Other creditors
705,515
560,405
Accruals and deferred income
193,904
230,636
12,205
11,745
1,883,319
3,349,025
1,225,405
3,372,071
Included in other borrowings are secured shareholder loans of £300,000 (2023: £1,899,001). The shareholder loans are secured by a fixed and floating charge over the freehold properties owned by the company.
Net obligations under finance lease and hire purchase contracts are secured by fixed charges on the assets concerned.
17
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance leases
18
71,669
53,294
Other borrowings
19
1,590,000
1,590,000
Other creditors
35,500
34,850
1,697,169
88,144
1,590,000
-
Included in other borrowings are secured shareholder loans of £1,590,000 (2023: £nil). The shareholder loans are secured by a fixed and floating charge over the freehold properties owned by the company.
Net obligations under finance lease and hire purchase contracts are secured by fixed charges on the assets concerned.
THE WARREN HOLDING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 29 -
18
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
63,311
78,389
In two to five years
84,841
62,592
148,152
140,981
-
-
Less: future finance charges
(22,162)
(19,515)
125,990
121,466
Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is five years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
19
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Loans from related parties
1,890,000
1,899,001
1,890,000
1,899,001
Payable within one year
300,000
1,899,001
300,000
1,899,001
Payable after one year
1,590,000
1,590,000
The loans from related parties are secured by a fixed and floating charge over the freehold properties owned by the company.
The loans from related parties were refinanced on 22 December 2023. The new terms of the loans include interest payable at the Bank of England base rate plus 2.25% per annum and minimum repayments of £150,000 every six months starting July 2024 over the subsequent 30 months to July 2026.
20
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
25,231
87,379
-
-
Tax losses
-
-
40,000
-
25,231
87,379
40,000
-
THE WARREN HOLDING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
20
Deferred taxation
(Continued)
- 30 -
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 May 2023
87,379
-
Credit to profit or loss
(102,148)
-
Asset at 30 April 2024
(14,769)
-
The deferred tax liabilities and deferred tax assets set out above are expected to reverse after 12 months and relate to accelerated capital allowances and tax losses carried forward respectively.
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
34,709
29,940
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.
Contributions totalling £7,660 (2023: £6,747) were payable to the fund at the year end and are included in creditors.
22
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and not fully paid
Ordinary A shares of 1p each
3,633,724
3,633,724
36,337
36,337
The company has one class of ordinary share, with each fully paid up share carrying one vote and no right to fixed income.
Included within debtors is unpaid share capital of £423,676 (2023: £423,676).
23
Reserves
Profit and loss reserves
Company
The company had distributable profit and loss reserves of £1,543,898 (2023: £1,658,178) as at 30 April 2024.
THE WARREN HOLDING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 31 -
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
2,288
2,288
-
-
Between two and five years
763
3,051
-
-
3,051
5,339
-
-
25
Related party transactions
The company has taken advantage of the exemption available in FRS 102 to not disclose transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member.
Company
At the balance sheet date, the company owed £913,200 (2023: £1,461,325) to its subsidiary undertakings and was owed £1,627,080 (2023: £2,890,009) by its subsidiary undertakings.
At the balance sheet date, the company was owed £750,000 (2023: £22,198) by a company under common influence.
During the year, the company incurred interest of £102,558 (2023: £100,367) on shareholder loans.
Group
During the year, the group received income of £75,148 (2023: £42,324) from a company under common influence.
During the year, the group was charged £122,829 (2023: £160,532) by a company under common influence.
26
Controlling party
The directors do not consider there to be a single controlling party.
THE WARREN HOLDING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 32 -
27
Cash generated from group operations
2024
2023
£
£
Profit after taxation
267,144
436,581
Adjustments for:
Taxation (credited)/charged
(3,629)
116,442
Finance costs
150,727
135,972
Investment income
(21,077)
Gain on disposal of tangible fixed assets
(4,125)
-
Amortisation and impairment of intangible assets
27,500
27,500
Depreciation and impairment of tangible fixed assets
472,718
434,517
Movements in working capital:
Decrease in stocks
71,692
11,851
Increase in debtors
(537,014)
(62,853)
Increase/(decrease) in creditors
259,802
(98,010)
Cash generated from operations
683,738
1,002,000
28
Analysis of changes in net debt - group
1 May 2023
Cash flows
New finance leases
30 April 2024
£
£
£
£
Cash at bank and in hand
475,058
186,972
-
662,030
Borrowings excluding overdrafts
(1,899,001)
9,001
-
(1,890,000)
Obligations under finance leases
(121,466)
81,016
(85,540)
(125,990)
(1,545,409)
276,989
(85,540)
(1,353,960)
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