Company registration number 05409600 (England and Wales)
The Boarding Company Limited
Annual Report and Financial Statements
For the year ended 30 April 2024
The Boarding Company Limited
Contents
Page
Company information
1
Strategic report
2 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 24
The Boarding Company Limited
Company Information
- 1 -
Directors
P McNamara
M A J Pyne-Gilbert
N Callender
T Chappell
(Appointed 1 February 2024)
N McNamara
(Appointed 1 February 2024)
Company number
05409600
Registered office
Base Camp
1 Rhodes Way
Watford
Hertfordshire
WD24 4YW
Auditor
Gilberts Chartered Accountants
Pendragon House
65 London Road
St Albans
Hertfordshire
AL1 1LJ
The Boarding Company Limited
Strategic Report
For the year ended 30 April 2024
- 2 -

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

Principal activities

The principal activities of the business continued to be that of the retail sale of sports goods.

Review of the business

Our core snow business has performed well during the year with sales growth of 15% YOY. There was continued pressure on pricing due to market conditions, particularly with the arrival of European discounters in the market, however sales have remained strong. Overall our snow sector contributed over £0.8m to net profit and we expect to build on this performance in the coming year with the added bonus of improved consumer confidence combined with optimum conditions in key ski areas which is currently driving record sales levels.

We were aiming to make our secondary outdoor business profitable in 23/24 however the continuing challenges in the market made this impossible. Whilst performance improved in 23/24 in terms of core profitability and strategic departments, overall performance was dragged down by significant under-performance in some departments; particularly run and swim. As a result, we have now closed a number of these departments and clearance of this stock at significant discounts has resulted in the outdoor sector contributing a net loss of £240k before central overheads. We continue to streamline our offer to focus on the most profitable departments and to reduce our costs to service these. We expect this department to make a positive contribution to profit from 24/25 onwards following our efforts to refocus on a more technical, mountaineering offer.

In 23/24 we have continued to invest in future proofing the business and building in maximum agility to adapt to a changing market. In particular we have invested in:

The company retains a strong balance sheet and is supported by a related party company (Absolute Management Services Limited) as required to meet financial obligations as they fall due.

Principal risks and uncertainties

The principal risks and uncertainty for TBCL for the coming year are as follows:

The Boarding Company Limited
Strategic Report (Continued)
For the year ended 30 April 2024
- 3 -
Future Developments

We are confident that we can capitalise on our market leading position in snowboarding and to replicate this success in other areas of the snow offer. Whilst our focus will remain on the snow market, where our core capabilities are, we will continue to complement this offer with a curated range in the outdoor market to achieve supplementary profitable growth in this area.

On behalf of the board

N Callender
Director
30 January 2025
The Boarding Company Limited
Directors' Report
For the year ended 30 April 2024
- 4 -

The directors present their annual report and financial statements for the year ended 30 April 2024.

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 final dividend.

Directors

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

P McNamara
M A J Pyne-Gilbert
P A Joseph
(Resigned 5 March 2024)
N Callender
T Chappell
(Appointed 1 February 2024)
N McNamara
(Appointed 1 February 2024)
Auditor

Gilberts Chartered Accountants were appointed as auditor to the company 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 company and of the profit or loss of the company 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 company’s transactions and disclose with reasonable accuracy at any time the financial position of the 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 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 company’s auditor 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 company’s auditor 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.

The Boarding Company Limited
Directors' Report (Continued)
For the year ended 30 April 2024
- 5 -
On behalf of the board
N Callender
Director
30 January 2025
The Boarding Company Limited
Independent Auditor's Report
To the Members of The Boarding Company Limited
- 6 -

Qualified opinion on financial statements

We have audited the financial statements of The Boarding Company Limited (the 'company') for the year ended 30 April 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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 of our report, the financial statements:

Basis for qualified opinion

We were not appointed as auditor of the company until after 28 February 2022 and thus did not observe the counting of physical inventories at the end of the 2022 accounting period. We were unable to satisfy ourselves by alternative means concerning the inventory quantities held at 28 February 2022, which are included as the opening stock value in the 2023 period by using other audit procedures. Consequently we were unable to determine whether any adjustment to this amount was necessary.

 

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 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 qualified 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 company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

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

Other information

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

 

As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning the inventory quantities of £4.3m held at 28 February 2022. We have concluded that where the other information refers to the inventory balance or related balances such as cost of sales, it may be materially misstated for the same reason.

The Boarding Company Limited
Independent Auditor's Report
To the Members of The Boarding Company Limited (Continued)
- 7 -

Opinions on other matters prescribed by the Companies Act 2006

Except for the possible effects of the matter described in the basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of our audit:

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 the light of the knowledge and understanding of the 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.

 

Arising solely from the limitation on the scope of our work relating to inventory, referred to above:

• we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and

• we were unable to determine whether adequate accounting records have been kept.

 

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

 

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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 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.

Explanations as to what extent the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed in our approach below:
We obtained an understanding of the legal and regulatory requirements applicable to the company and considered that the most significant are the Companies Act 2006, UK financial reporting standards as issued by the Financial Reporting Council and UK taxation legislation.
We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.
The Boarding Company Limited
Independent Auditor's Report
To the Members of The Boarding Company Limited (Continued)
- 8 -
We enquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations. There are inherent limitations in the audit procedures noted above, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.
Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance, miscellaneous receipts and payments testing, journal entry testing, analytical procedures and obtaining additional corroborative evidence as required. In doing so we evaluate whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
We recognise 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 or intentional misrepresentations, or through collusion.
We communicated relevant key laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud and non-compliance with laws and regulations throughout the audit.
We did not identify any audit matters relating to irregularities, including 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.

Use of our report

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

Luke Parker ACA (Senior Statutory Auditor)
For and on behalf of Gilberts Chartered Accountants, Statutory Auditor
Pendragon House
65 London Road
St Albans
Hertfordshire
AL1 1LJ
31 January 2025
The Boarding Company Limited
Statement of Comprehensive Income
For the year ended 30 April 2024
- 9 -
Year
Period
ended
ended
30 April
30 April
2024
2023
Notes
£
£
Turnover
3
11,827,212
13,279,484
Cost of sales
(8,267,778)
(8,994,973)
Gross profit
3,559,434
4,284,511
Distribution costs
(799,665)
(1,199,381)
Administrative expenses
(3,503,671)
(4,021,415)
Other operating income
48,340
12,813
Operating loss
6
(695,562)
(923,472)
Interest receivable and similar income
7
5,749
8,164
Interest payable and similar expenses
8
(94,497)
(96,306)
Loss before taxation
(784,310)
(1,011,614)
Tax on loss
9
-
0
10,649
Loss for the financial year
(784,310)
(1,000,965)

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

The Boarding Company Limited
Balance Sheet
As at 30 April 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
11
305,134
211,947
Tangible assets
12
138,475
148,302
443,609
360,249
Current assets
Stocks
13
3,787,467
5,113,986
Debtors
14
446,863
378,893
Cash at bank and in hand
35,068
58,385
4,269,398
5,551,264
Creditors: amounts falling due within one year
15
(2,634,293)
(2,730,095)
Net current assets
1,635,105
2,821,169
Total assets less current liabilities
2,078,714
3,181,418
Creditors: amounts falling due after more than one year
16
(484,025)
(717,361)
Provisions for liabilities
Provisions
18
49,549
135,068
(49,549)
(135,068)
Net assets
1,545,140
2,328,989
Capital and reserves
Called up share capital
21
10,550
10,089
Profit and loss reserves
1,534,590
2,318,900
Total equity
1,545,140
2,328,989
The financial statements were approved by the board of directors and authorised for issue on 30 January 2025 and are signed on its behalf by:
N Callender
Director
Company Registration No. 05409600
The Boarding Company Limited
Statement of Changes in Equity
For the year ended 30 April 2024
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 March 2022
10,089
3,319,865
3,329,954
Period ended 30 April 2023:
Loss and total comprehensive income
-
(1,000,965)
(1,000,965)
Balance at 30 April 2023
10,089
2,318,900
2,328,989
Year ended 30 April 2024:
Loss and total comprehensive income
-
(784,310)
(784,310)
Issue of share capital
21
461
-
461
Balance at 30 April 2024
10,550
1,534,590
1,545,140
The Boarding Company Limited
Statement of Cash Flows
For the year ended 30 April 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
25
671,333
(1,698,731)
Interest paid
(94,497)
(96,306)
Income taxes paid
-
0
(10,649)
Net cash inflow/(outflow) from operating activities
576,836
(1,805,686)
Investing activities
Purchase of intangible assets
(119,171)
(211,770)
Purchase of tangible fixed assets
(18,536)
(28,826)
Proceeds from disposal of tangible fixed assets
1,735
4,446
Interest received
5,749
8,164
Net cash used in investing activities
(130,223)
(227,986)
Financing activities
Net procceds/(repayments) of bank loans
(508,333)
759,027
Net cash (used in)/generated from financing activities
(508,333)
759,027
Net decrease in cash and cash equivalents
(61,720)
(1,274,645)
Cash and cash equivalents at beginning of year
32,706
1,307,351
Cash and cash equivalents at end of year
(29,014)
32,706
Relating to:
Cash at bank and in hand
35,068
58,385
Bank overdrafts included in creditors payable within one year
(64,082)
(25,679)
The Boarding Company Limited
Notes to the Financial Statements
For the year ended 30 April 2024
- 13 -
1
Accounting policies
Company information

The Boarding Company Limited is a private company limited by shares incorporated in England and Wales. The registered office is Base Camp, 1 Rhodes Way, Watford, Hertfordshire, WD24 4YW.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

These financial statements are prepared on the going concern basis. The directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future after assessing the principal risks faced by the company.

 

Absolute Management Services Limited a company under common control, and its sole shareholder have both provided a letter of support to the company. This support is included in the director’s assessment of funding requirements. As a result the directors expect all funding requirements to be met and the company has the necessary funding to continue trading and meet its liabilities as they fall due for at least twelve months from the date of approval of the financial statements and the use of the going concern basis is appropriate.

1.3
Turnover

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

1.4
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.

1.5
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

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:

Trademark
10% straight line
Website Development
12.5% straight line
Rithum
12.5% straight line
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.

The Boarding Company Limited
Notes to the Financial Statements (Continued)
For the year ended 30 April 2024
1
Accounting policies
(Continued)
- 14 -

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:

Equipment
10% 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 credited or charged to profit or loss.

1.7
Impairment of fixed assets

At each reporting period end date, the company 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).

1.8
Stocks

Stocks are stated at the lower of the direct purchase costs and the estimated selling price less costs to complete and sell. A provision is made against slow moving items or stock which has become outdated at the end of the season.

1.9
Financial instruments

The company has elected to apply the provisions of Section 11 and Section 12 of FRS 102 to all of its financial instruments.

 

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

 

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price 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 fair value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

 

Basic financial liabilities

Basic financial liabilities, which include trade and other payables and bank loans, are initially measured at transaction price and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present fair value of the future receipts discounted at a market rate of interest.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

The Boarding Company Limited
Notes to the Financial Statements (Continued)
For the year ended 30 April 2024
1
Accounting policies
(Continued)
- 15 -
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.

 

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. Deferred tax assets and liabilities are offset when the company has 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.

1.11
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

Stock provision is included where the recoverable value is less than the cost price.

 

Returns provision is included to estimate the items that are likely to be returned in the two week period after the year end that relates to sales occurring in the year.

1.12
Retirement benefits

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

1.13
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

The Boarding Company Limited
Notes to the Financial Statements (Continued)
For the year ended 30 April 2024
- 16 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’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.

Amortisation

Amortisation is recognising the initial costs over the useful economic life of an asset. The new website costs include the internally generated expenses and external expenses incurred during the development phase of the website, prior to its launch. The useful economic life of such an asset requires judgement to determine. The directors decided the useful economic life could not be reliably determined so as stated in FRS 102 guidance a useful economic life of 10 years will be used.

Stock Provision

A stock provision is required to account for slow moving and obsolete stock. Determining which product lines should be considered in the calculation is judgemental. The stock provision also includes the difference between net realisable value of the stock and the purchase price, only where the net realisable value is less than initial purchase price. This occurs when the sales price of a stock line is discounted heavily accordingly to internal policy to avoid holding slow moving and obsolete stock. The internal policy on discounts includes judgement in determining which lines this should apply to.

Returns Provision

The returns provision is an estimate of the expected returns that will happen post year end relating to sales that have transacted pre year end. This is calculated by reviewing the provision in the 14 day period following the year end and providing for the gross profit margin on the returns based on actuals.

 

3
Turnover and other revenue
2024
2023
£
£
Other revenue
Interest income
5,749
8,164
The Boarding Company Limited
Notes to the Financial Statements (Continued)
For the year ended 30 April 2024
- 17 -
4
Employees

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

2024
2023
Number
Number
Directors
3
3
Warehouse and Admin staff
45
45
Total
48
48

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
1,449,743
1,424,720
Social security costs
135,797
124,296
Pension costs
30,633
28,188
1,616,173
1,577,204
5
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
146,867
170,332
Company pension contributions to defined contribution schemes
8,513
-
155,380
170,332

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 0 (2023 - 1).

6
Operating loss
2024
2023
Operating loss for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
567
(136)
Fees payable to the company's auditor for the audit of the company's financial statements
18,000
19,250
Depreciation of owned tangible fixed assets
26,594
24,808
Loss on disposal of tangible fixed assets
34
-
Amortisation of intangible assets
25,984
25
Impairment of stocks recognised or reversed
118,028
50,000
The Boarding Company Limited
Notes to the Financial Statements (Continued)
For the year ended 30 April 2024
- 18 -
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
5,749
8,164
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
5,749
8,164
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
94,497
96,306
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
-
0
(10,649)

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

2024
2023
£
£
Loss before taxation
(784,310)
(1,011,614)
Expected tax credit based on the standard rate of corporation tax in the UK of 19.00% (2023: 19.00%)
(149,019)
(192,207)
Tax effect of expenses that are not deductible in determining taxable profit
147,339
-
0
Unutilised tax losses carried forward
149
182,846
Permanent capital allowances in excess of depreciation
1,531
(1,288)
Taxation charge/(credit) for the year
-
(10,649)
The Boarding Company Limited
Notes to the Financial Statements (Continued)
For the year ended 30 April 2024
- 19 -
10
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2024
2023
Notes
£
£
In respect of:
Stocks
13
118,028
50,000
Recognised in:
Cost of sales
118,028
50,000

The above impairments relate to obsolete stock lines and stock lines where the net realisable value is less than the cost price.

11
Intangible fixed assets
Goodwill
Trademark
Website Development
Rithum
Total
£
£
£
£
£
Cost
At 1 May 2023
50,000
420
211,600
-
262,020
Additions
-
0
-
0
19,541
99,630
119,171
At 30 April 2024
50,000
420
231,141
99,630
381,191
Amortisation and impairment
At 1 May 2023
50,000
73
-
0
-
50,073
Amortisation charged for the year
-
0
42
25,942
-
25,984
At 30 April 2024
50,000
115
25,942
-
76,057
Carrying amount
At 30 April 2024
-
0
305
205,199
99,630
305,134
At 30 April 2023
-
0
347
211,600
-
211,947

 

The Boarding Company Limited
Notes to the Financial Statements (Continued)
For the year ended 30 April 2024
- 20 -
12
Tangible fixed assets
Equipment
£
Cost
At 1 May 2023
516,360
Additions
18,536
Disposals
(1,803)
At 30 April 2024
533,093
Depreciation and impairment
At 1 May 2023
368,058
Depreciation charged in the year
26,594
Eliminated in respect of disposals
(34)
At 30 April 2024
394,618
Carrying amount
At 30 April 2024
138,475
At 30 April 2023
148,302
13
Stocks
2024
2023
£
£
Finished goods and goods for resale
3,787,467
5,113,986
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
255,759
162,053
Corporation tax recoverable
10,649
10,649
Other debtors
-
0
14,908
Prepayments and accrued income
180,455
191,283
446,863
378,893
The Boarding Company Limited
Notes to the Financial Statements (Continued)
For the year ended 30 April 2024
- 21 -
15
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
17
297,418
534,012
Trade creditors
1,464,069
1,211,509
Taxation and social security
420,214
308,577
Deferred income
19
-
0
17,244
Other creditors
412,250
596,661
Accruals and deferred income
40,342
62,092
2,634,293
2,730,095
16
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
17
484,025
717,361
17
Loans and overdrafts
2024
2023
£
£
Bank loans
717,361
1,225,694
Bank overdrafts
64,082
25,679
781,443
1,251,373
Payable within one year
297,418
534,012
Payable after one year
484,025
717,361

The long-term loans are secured by fixed charges over all present freehold and leasehold property; 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 undertaking both present and future dated 15 June 2010.

At the year end, no loans repayment schedule exceeded five years. The interest rate on the loans are between 3.25%-4.65% plus base rate pa.

The Boarding Company Limited
Notes to the Financial Statements (Continued)
For the year ended 30 April 2024
- 22 -
18
Provisions for liabilities
2024
2023
£
£
Stock provision
34,412
105,738
Returns and Sales provision
15,137
29,330
49,549
135,068
Movements on provisions:
Stock provision
Returns and Sales provision
Total
£
£
£
Additional provisions in the year
34,412
15,137
49,549
19
Deferred income
2024
2023
£
£
Other deferred income
-
17,244
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
30,633
28,188

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

21
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
1,055,016
1,008,878
10,550
10,089
22
Deferred taxation

As at the balance sheet date the company had deferred tax assets of £432,023 (2023 - £203,511 ), calculated at a corporation tax rate of 25% (2023 - 25%). The deferred tax assets are mainly in relation to tax losses carried forward and are not included in the financial statements because recovery is uncertain. The deferred tax assets may be recovered against future profits from the same trade.

The Boarding Company Limited
Notes to the Financial Statements (Continued)
For the year ended 30 April 2024
- 23 -
23
Operating lease commitments

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
250,000
190,000
Between two and five years
750,000
760,000
1,000,000
950,000
24
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with a company under common control:

Sales
Sales
Purchases
Purchases
2024
2023
2024
2023
£
£
£
£
247 Surf Ltd
-
10,117
-
121,403
Nancy Callender Ltd
-
-
20,000
13,026
E P Joseph Ltd
-
0
-
0
-
3,228
2024
2023
Amounts due to related parties
£
£
Absolute Management Limited
379,039
437,695
The Boarding Company Limited
Notes to the Financial Statements (Continued)
For the year ended 30 April 2024
- 24 -
25
Cash generated from/(absorbed by) operations
2024
2023
£
£
Loss after taxation
(783,849)
(1,000,965)
Adjustments for:
Taxation charged/(credited)
-
0
(10,649)
Finance costs
94,497
96,306
Investment income
(5,749)
(8,164)
Loss on disposal of tangible fixed assets
34
-
Amortisation and impairment of intangible assets
25,984
25
Depreciation and impairment of tangible fixed assets
26,594
24,808
(Decrease)/increase in provisions
(85,519)
135,068
Movements in working capital:
Decrease/(increase) in stocks
1,326,519
(833,672)
Increase in debtors
(67,970)
(149,333)
Increase in creditors
158,036
30,601
(Decrease)/increase in deferred income
(17,244)
17,244
Cash generated from/(absorbed by) operations
671,333
(1,698,731)
26
Analysis of changes in net debt
1 May 2023
Cash flows
30 April 2024
£
£
£
Cash at bank and in hand
58,385
(23,317)
35,068
Bank overdrafts
(25,679)
(38,403)
(64,082)
32,706
(61,720)
(29,014)
Borrowings excluding overdrafts
(1,225,694)
508,333
(717,361)
(1,192,988)
446,613
(746,375)
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