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Registered number: 04215703


 








ESCAPE FITNESS LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
ESCAPE FITNESS LIMITED
 
 
COMPANY INFORMATION


Directors
Mr R Z Januszek 
Mr M L Januszek 
Mrs T C Branch 
Mr L E Januszek 
Mrs L C Januszek (resigned 1 March 2023)




Registered number
04215703



Registered office
11-14 Tresham Road
Orton Southgate

Peterborough

Cambridgeshire

PE2 6SG




Independent auditor
MHA
Chartered Accountants & Statutory Auditors

1 The Forum

Minerva Business Park

Lynch Wood

Peterborough

PE2 6FT





 
ESCAPE FITNESS LIMITED
 

CONTENTS



Page
Group strategic report
 
1 - 4
Directors' report
 
5 - 6
Independent auditor's report
 
7 - 10
Consolidated profit and loss account
 
11
Consolidated statement of comprehensive income
 
12
Consolidated balance sheet
 
13 - 14
Company balance sheet
 
15 - 16
Consolidated statement of changes in equity
 
17
Company statement of changes in equity
 
18
Consolidated statement of cash flows
 
19 - 20
Consolidated analysis of net debt
 
21
Notes to the financial statements
 
22 - 48

 
ESCAPE FITNESS LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The directors present their Strategic report on the affairs of Escape Fitness Limited and its subsidiaries (the 'Group') for the year ended 31 December 2023.

Business review
 
The principal activity of the Group during this period remains as in previous years, being that of the development and manufacture of innovative commercial fitness products with the emphasis on reducing the carbon footprint of the Escape Fitness product range wherever possible. Recognising that this can only be achieved in steps over a given period of time. 
The Group’s financial performance has suffered during the years since the pandemic. However, it should be recognised that the fitness industry, in line with the leisure industry as a whole, has also suffered during the years since Covid and this would, to some extent, have made an impact on the Group’s performance. It should also be noted that prior to the post pandemic years, the Group had returned significant growth and profit margins and therefore recent losses have been out of character.
Therefore, the Group has embarked on an in-depth analysis of Business Operations from the time immediately prior to the pandemic. Indications to date have pointed to a level of overspend that may have been unnecessary given normal Return on Investment (ROI) metrics, even though significant cost savings have been made over the past few years. The overspends that have been identified are now being scrutinised in depth, and it is apparent that savings can be made during 2025 without impacting the Group’s ability to deliver on its forecasted revenue.
In addition, and as a result of the analysis, it is recognised that embarking on a cost reduction exercise alone across the board will not be enough to support the business’s profitability and growth plans during the next twelve months and beyond. It has been identified that during this recent period of time when Group revenues and profits have reduced, the Group had embarked on a different marketing strategy employing new techniques and technologies that were not used in the past. This will now change, and the Group will revert to its original, well proven marketing strategies.
Continued investment to ensure future growth
As mentioned in the past, the Group has always invested heavily in product development, and this has always been the lifeblood of the Business. In the years since the pandemic, the level of development has been accelerated with the new Innovation Centre being used to enable faster development and testing of products in order to prepare the Group for growth and new business opportunities as the leisure industry returns to normal. 
The Group has continued its ongoing development of the new range of Octagon Evolution strength machines, incorporating unique features to enhance the user’s experience. This now includes lower cost, lightweight options under the Octagon Lite banner.   
Escape’s user training strategy is based on the MARS 2.0 digital touchscreen system, which has been further enhanced with additional features and can now be incorporated into other Escape products such as fitness frames. All at a lower cost to the operator.
 
Finally, an added improvement to the successful Octagon fitness frame range has been the Octagon Configurator, which simplifies the bespoke design process for potential customers.

Page 1

 
ESCAPE FITNESS LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Outlook

Economic uncertainty continues because of the effects of wars in Europe and new government policies in UK and US, which could affect exchange and interest rates adversely. However, opportunities do exist because of the significant improvements and additions to the Escape Fitness product range as described above. The planned product development strategies to support growth are mostly completed and on target, and prospects for the forthcoming year are looking more promising than in the past. 
Areas of specific opportunity have been identified to fuel growth, primarily due to the fact that Escape Fitness has been re-inventing itself and its product range. This now means that Escape is no longer just a supplier of accessories – it is a global supplier of a complete range of commercial fitness products.
Financial audits by the Group’s lenders have been carried out over the past few weeks confirming the facilities employed are operating as required and will continue to support the working capital requirements of the business into the new year and beyond. 

Principal risks and uncertainties
 
The management of the business and the execution of the Group's strategy remains subject to a number of risks as always, which are discussed further below. However, it is important to note that the strategic plan is evolving based on significant R&D investment ensuring that Escape Fitness continues as the market leader in the commercial fitness accessories industry. European economic conditions still remain uncertain, and sections of this territory remain difficult to penetrate, but markets further afield, including the Americas, are expanding and offsetting risk to the Business.
Raw materials and fuel costs rose during the period, since Covid. Importantly, there were massive increases in sea-freight and transport costs, which severely affected profitability even though short-term transport levies were agreed with customers. All of these are now beginning to level out to pre-Covid levels. This a significant risk factor reduction for the Business. 
Currency exchange risks have been recently reduced by strategic planning and by the Group’s key trading policies.
Competitive pressure in the UK and Europe continues mainly from cheap copies of the Group's product lines and its innovative concepts. This is expected to continue as always because of the apparent lack of investment and the continued demand for lower prices even though inflation is out of control. But now the Group has engaged the services of full time Intellectual Property (IP) professionals to aggressively protect its intellectual property. 

Page 2

 
ESCAPE FITNESS LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Financial risk management objectives and policies
 
The Group uses financial instruments such as cash, bank, invoice discount facilities, hire purchase and other loan facilities in order to raise finance for the Group's operations. The existence of these instruments exposes the Group to financial risks which are detailed below:
Price risk
Wherever possible, the Group look to pass on any increases in costs, where an increase can be foreseen and consideration is given to bulk buying at favourable prices.
Interest rate risk
The Group is exposed to interest rate fluctuations on its bank borrowings and other associated lending. The review of these facilities depends on the nature of the asset on which they are secured and management's view of the future direction of interest rates.
Credit risk
The principal credit risk for the Group arises from its trade debtors. In order to manage credit risk, the directors set limits for customers based on a combination of payment history and third party credit references. Credit limits are reviewed by the credit controller on a regular basis in conjunction with debt aging and collection history. In additional aged debtors are reviewed by the board on a monthly basis.
Liquidity risk
The Group seeks to manage financial risk by ensuring sufficient liquidity is available to meet its foreseeable needs.
Foreign exchange risk
The Group is exposed to currency exchange rate risk due to a significant proportion of its receivables and operating expenses being denominated in non-Sterling currencies. Currency exchange risks have been recently reduced by strategic planning and by the Group’s key trading policies. The net exposure of each currency is monitored and managed by matching foreign currency receipts with payments for goods and services.

Financial key performance indicators
 
The Group uses Key Performance Indicators, financial and statistical, to provide up-to-date and comprehensive reviews of the Group's overall performance on a daily, weekly and month basis. KPIs are monitored in a number of financial areas and include daily sales analysis, weekly stock analysis, monthly profit margin reporting, and cash flow forecast.

Going concern
 
Please refer to note 2.3 in the financial statements, which describes the material uncertainty related to the Group's reliance on a key supplier for operational and financial support and the risks associated with the recovery of product demand and new product implementation. These events or conditions indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern.

Page 3

 
ESCAPE FITNESS LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


This report was approved by the board and signed on its behalf.



................................................
Mr R Z Januszek
Director

Date: 5 February 2025
Page 4

 
ESCAPE FITNESS LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report and the financial statements for the year ended 31 December 2023.

Directors' responsibilities statement

The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the Group 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 for the Group's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.

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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The loss for the year, after taxation, amounted to £76,109 (2022 - loss £267,029).

Details of dividends paid can be found in note 13.

Directors

The directors who served during the year were:

Mr R Z Januszek 
Mr M L Januszek 
Mrs T C Branch 
Mr L E Januszek 
Mrs L C Januszek (resigned 1 March 2023)

Matters covered in the Group strategic report

Details concerning principal activities, business review, future outlook, principal risks and uncertainties, financial risk management objectives and policies, going concern and financial key performance indicators (KPIs) can be found in the Group Strategic Report.

Page 5

 
ESCAPE FITNESS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditor is unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditor is aware of that information.

Post balance sheet events

Post year end, the Group has sold one of the Freehold properties to the Escape Fitness Limited Retirement Benefit Scheme and are leasing it back. There have been no other significant events affecting the Group since the year end.

Auditor

Under section 487(2) of the Companies Act 2006, MHA will be deemed to have been reappointed as auditor 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier. 

This report was approved by the board and signed on its behalf.
 





................................................
Mr R Z Januszek
Director

Date: 5 February 2025

11-14 Tresham Road
Orton Southgate
Peterborough
Cambridgeshire
PE2 6SG
Page 6

 
ESCAPE FITNESS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ESCAPE FITNESS LIMITED
 

Opinion


We have audited the financial statements of Escape Fitness Limited (the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2023, which comprise the Consolidated profit and loss account, the Consolidated statement of comprehensive income, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of changes in equity, the Company statement of changes in equity, the Consolidated statement of cash flows and the notes to the financial statements, including significant accounting policiesThe 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 of the Parent Company's affairs as at 31 December 2023 and of the Group's loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our 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.


Material uncertainty related to going concern


We draw attention to Note 2.3 in the financial statements, which describes the material uncertainty related to the Group's reliance on a key supplier for operational and financial support, a net current liability position and the risks associated with the recovery of product demand and new product implementation. These events or conditions indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.


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


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


Page 7

 
ESCAPE FITNESS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ESCAPE FITNESS LIMITED (CONTINUED)


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 ReportOur 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.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Group 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 Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Group and the Parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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.


Page 8

 
ESCAPE FITNESS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ESCAPE FITNESS LIMITED (CONTINUED)


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 5, 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 Group's and the Parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or 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 Group financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

• Enquiry of management and those charged with governance around actual and potential litigation and    claims;
• Enquiry of entity staff to identify and instances of non-compliance with laws and regulations;
• Performing audit work over the risk of management override of controls, including testing of journal
          entries and other adjustments for appropriateness and reviewing accounting estimates for bias;
• Reviewing minutes of meetings of those charged with governance;
• Reviewing financial statement disclosures and testing to supporting documentation to assess compliance         with applicable laws and regulations.


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's report.
Page 9

 
ESCAPE FITNESS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ESCAPE FITNESS LIMITED (CONTINUED)


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 2006Our 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.





Ian Jacobs BA FCA (Senior statutory auditor)
for and on behalf of MHA, Statutory Auditors
Peterborough, United Kingdom

5 February 2025
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313).
Page 10

 
ESCAPE FITNESS LIMITED
 
 
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
15,332,496
19,792,689

Cost of sales
  
(9,748,314)
(13,412,212)

Gross profit
  
5,584,182
6,380,477

Administrative expenses
  
(5,144,322)
(6,271,571)

Other operating income
 5 
-
2,049

Operating profit
 6 
439,860
110,955

Interest receivable and similar income
 10 
9,539
6,744

Interest payable and similar expenses
 11 
(483,292)
(286,835)

Loss before tax
  
(33,893)
(169,136)

Taxation
 12 
(42,216)
(97,893)

Loss for the financial year
  
(76,109)
(267,029)

  

All amounts relate to continuing activities.
The notes on pages 22 to 48 form part of these financial statements.
Page 11

 
ESCAPE FITNESS LIMITED
 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£


Loss for the financial year

  

(76,109)
(267,029)

Other comprehensive income
  


Unrealised surplus on revaluation of tangible fixed assets
  
-
558,000

Exchange differences on retranslation of net assets of subsidiary undertakings
  
(56,974)
(22,861)

Other comprehensive income for the year
  
(56,974)
535,139

Total comprehensive income for the year
  
(133,083)
268,110

The notes on pages 22 to 48 form part of these financial statements.
Page 12

 
ESCAPE FITNESS LIMITED
REGISTERED NUMBER: 04215703

CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 15 
121,994
148,504

Tangible assets
 16 
2,141,085
2,252,979

  
2,263,079
2,401,483

Current assets
  

Stocks
 18 
2,255,684
3,992,985

Debtors: amounts falling due after more than one year
 19 
662,607
670,138

Debtors: amounts falling due within one year
 19 
3,237,157
3,209,113

Cash at bank and in hand
 20 
427,766
154,322

  
6,583,214
8,026,558

Creditors: amounts falling due within one year
 21 
(7,752,569)
(8,850,168)

Net current liabilities
  
 
 
(1,169,355)
 
 
(823,610)

Total assets less current liabilities
  
1,093,724
1,577,873

Creditors: amounts falling due after more than one year
 22 
(449,336)
(633,515)

Provisions for liabilities
  

Deferred taxation
 25 
(2,865)
(1,770)

Net assets
  
641,523
942,588


Capital and reserves
  

Called up share capital 
 26 
1,000
1,000

Revaluation reserve
 27 
1,235,591
1,235,591

Foreign exchange reserve
 27 
(284,179)
(227,205)

Profit and loss account
 27 
(310,889)
(66,798)

  
641,523
942,588

Page 13

 
ESCAPE FITNESS LIMITED
REGISTERED NUMBER: 04215703
    
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




................................................
Mr R Z Januszek
Director

Date: 5 February 2025

The notes on pages 22 to 48 form part of these financial statements.
Page 14

 
ESCAPE FITNESS LIMITED
REGISTERED NUMBER: 04215703

COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 15 
121,994
148,504

Tangible assets
 16 
2,111,343
2,199,499

Investments
 17 
32,614
32,614

  
2,265,951
2,380,617

Current assets
  

Stocks
 18 
1,454,646
2,432,560

Debtors: amounts falling due after more than one year
 19 
662,607
670,138

Debtors: amounts falling due within one year
 19 
4,191,289
4,124,618

Cash at bank and in hand
 20 
85,192
8,111

  
6,393,734
7,235,427

Creditors: amounts falling due within one year
 21 
(6,967,526)
(7,579,498)

Net current liabilities
  
 
 
(573,792)
 
 
(344,071)

Total assets less current liabilities
  
1,692,159
2,036,546

  

Creditors: amounts falling due after more than one year
 22 
(449,336)
(633,515)

  

Net assets
  
1,242,823
1,403,031


Capital and reserves
  

Called up share capital 
 26 
1,000
1,000

Revaluation reserve
 27 
1,235,591
1,235,591

Profit and loss account brought forward
  
166,440
454,317

Profit for the year
  
7,774
237,088

Dividends declared

  

(167,982)
(524,965)

Profit and loss account carried forward
  
6,232
166,440

  
1,242,823
1,403,031

Page 15

 
ESCAPE FITNESS LIMITED
REGISTERED NUMBER: 04215703
    
COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 


................................................
Mr R Z Januszek
Director

Date: 5 February 2025

The notes on pages 22 to 48 form part of these financial statements.
Page 16

 
ESCAPE FITNESS LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Revaluation reserve
Foreign exchange reserve
Profit and loss account
Total equity

£
£
£
£
£


At 1 January 2022
1,000
677,591
(204,344)
725,196
1,199,443


Comprehensive income for the year

Loss for the year
-
-
-
(267,029)
(267,029)

Surplus on revaluation of freehold property
-
558,000
-
-
558,000

Exchange differences on retranslation of net assets of subsidiary undertakings
-
-
(22,861)
-
(22,861)

Dividends declared
-
-
-
(524,965)
(524,965)



At 1 January 2023
1,000
1,235,591
(227,205)
(66,798)
942,588


Comprehensive income for the year

Loss for the year
-
-
-
(76,109)
(76,109)

Exchange differences on retranslation of net assets of subsidiary undertakings
-
-
(56,974)
-
(56,974)

Dividends declared
-
-
-
(167,982)
(167,982)


At 31 December 2023
1,000
1,235,591
(284,179)
(310,889)
641,523


The notes on pages 22 to 48 form part of these financial statements.
Page 17

 
ESCAPE FITNESS LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Revaluation reserve
Profit and loss account
Total equity

£
£
£
£


At 1 January 2022
1,000
677,591
454,317
1,132,908


Comprehensive income for the year

Profit for the year
-
-
237,088
237,088

Surplus on revaluation of freehold property
-
558,000
-
558,000

Dividends declared
-
-
(524,965)
(524,965)



At 1 January 2023
1,000
1,235,591
166,440
1,403,031


Comprehensive income for the year

Profit for the year
-
-
7,774
7,774

Dividends declared
-
-
(167,982)
(167,982)


At 31 December 2023
1,000
1,235,591
6,232
1,242,823


The notes on pages 22 to 48 form part of these financial statements.
Page 18

 
ESCAPE FITNESS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Loss for the financial year
(76,109)
(267,029)

Adjustments for:

Amortisation of intangible assets
101,920
107,259

Depreciation of tangible assets
110,578
165,947

(Profit)/loss on disposal of tangible assets
(472)
480

Interest paid
482,749
292,281

Interest received
(9,539)
(6,744)

Taxation charge
42,216
97,893

Decrease in stocks
1,737,301
76,392

Increase in debtors
67,921
(72,236)

(Decrease)/increase in creditors
(985,732)
411,819

Decrease in provisions
-
(587)

Corporation tax paid
(7,827)
(6,298)

Loss on foreign currency retranslation of net assets of subsidiary undertakings
(55,192)
(33,666)

HP interest paid
543
885

Net cash generated from operating activities

1,408,357
766,396


Cash flows from investing activities

Purchase of intangible fixed assets
(75,410)
(79,403)

Purchase of tangible fixed assets
(1,401)
(121,583)

Sale of tangible fixed assets
1,407
(155)

Interest received
9,539
6,744

Net cash from investing activities

(65,865)
(194,397)
Page 19

 
ESCAPE FITNESS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


2023
2022

£
£



Cash flows from financing activities

New secured loans
200,000
419,847

Repayment of loans
(427,666)
(189,892)

Repayment of other loans
(151,668)
-

Repayment of finance leases
(23,996)
-

Dividends paid
(167,982)
(524,965)

Interest paid
(482,749)
(292,281)

HP interest paid
(543)
(885)

Net cash used in financing activities
(1,054,604)
(588,176)

Net increase/(decrease) in cash and cash equivalents
287,888
(16,177)

Cash and cash equivalents at beginning of year
139,866
156,043

Cash and cash equivalents at the end of year
427,754
139,866


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
427,766
154,322

Bank overdrafts
(12)
(14,456)

427,754
139,866


The notes on pages 22 to 48 form part of these financial statements.

Page 20

 
ESCAPE FITNESS LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023






At 1 January 2023
Cash flows
New loan
Other non-cash changes
At 31 December 2023
£

£

£

£

£

Cash at bank and in hand

154,322

273,444

-

-

427,766

Bank overdrafts

(14,456)

14,444

-

-

(12)

Debt due after 1 year

(591,680)

-

-

170,467

(421,213)

Debt due within 1 year

(2,880,714)

579,334

(200,000)

(170,467)

(2,671,847)

Finance leases

(75,615)

23,996

-

-

(51,619)


(3,408,143)
891,218
(200,000)
-
(2,716,925)

The notes on pages 22 to 48 form part of these financial statements.
Page 21

 
ESCAPE FITNESS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Escape Fitness Limited ("the Company") is a private company limited by shares, and incorporated in England and Wales under the Companies Act.
The registered number and the address of the registered office is given in the Company information.
The nature of the Group and Company's operations and its principal activities are set out in the Group Strategic Report on page 1.
The functional and presentational currency of the Group and Company is pounds sterling (£) and is rounded to the nearest whole pound.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Profit and loss account in these financial statements.

The following principal accounting policies have been applied:

  
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated profit and loss account from the date on which control is obtained. They are deconsolidated from the date control ceases.

Page 22

 
ESCAPE FITNESS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.3

Going concern

These financial statements have been prepared on a going concern basis. In making their assessment, the Directors have considered all relevant information, including the annual budgets, forecasted revenues, future cash flows, the possibilities of unplanned events and the impact of significant product development initiatives that have been recently completed or are near completion.
As the Business operates in multiple territories around the world, has a diverse customer base and given the investment in R&D and ongoing gains in the new territories, such as the Middle East, together with new and innovative UK based manufacturing processes, the Directors are firmly of the opinion that this will provide a broader reach into both corporate and possibly new home fitness environments, thereby increasing revenue and profitability in the near future.
Demand for commercial fitness equipment is gradually returning to pre-pandemic levels in the key markets in which the Business operates. This recovery, alongside strong customer feedback regarding the Group's updated and rationalized product range, provides clarity and confidence for future trading prospects across all territories.
It is important to note that the current order book remains strong, providing a positive and stable base for 2025.
The Directors are aware of a material uncertainty regarding a key supplier in the Far East. The balance with this supplier has accumulated to a level exceeding standard trading terms and repayment is being made over an extended period, with the supplier’s support. This has resulted in a net current liability position. The supplier has indicated their ongoing support by agreeing to extended terms, and the Directors are confident of maintaining a positive relationship with them, which has now been ongoing for well over two decades. However, in the unlikely event that the supplier was to demand repayment in full at short notice, the Group would face challenges in meeting such an obligation.
Also, if the demand for commercial fitness equipment does not return to pre-pandemic levels as quickly as forecasted, or if there are delays in the implementation of new product ranges, then this would have a negative impact on the forecasted revenues and future cash flows. In such circumstances, the Directors would need to take steps in order to raise further funds in order to meet cash outflows. Whilst plans are in place, there is still uncertainty over how quickly these plans can be implemented.
While these circumstances represent a material uncertainty that could cast significant doubt on the Group’s ability to continue as a Going Concern, the Directors are jointly developing new product ranges with their key supplier in the Far East, as has always been the case in the past, whilst monitoring the situation on a regular basis and exploring contingency options to mitigate any potential impact.
Based on these assessments, the Directors have concluded that they can continue to adopt the Going Concern basis in preparing the annual report and accounts.

Page 23

 
ESCAPE FITNESS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

 
2.5

Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Group and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:

Sale of fitness equipment
Turnover is recognised when the risks and rewards of ownership have passed to the customer.

 
2.6

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.7

Leased assets: the Group as lessee

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Page 24

 
ESCAPE FITNESS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

  
2.8

Research and development

Research and development costs are expensed to the profit or loss account as incurred.

 
2.9

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.10

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.11

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.12

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in other creditors as a liability in the Balance sheet. The assets of the plan are held separately from the Group in independently administered funds.

Page 25

 
ESCAPE FITNESS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.13

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


Page 26

 
ESCAPE FITNESS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.14

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated profit and loss account over its useful economic life.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 The estimated useful lives range as follows:

Patents
-
Amortised over the life of the patent until its expiry date
Goodwill
-
10 years straight-line

 
2.15

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the Group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

The Group adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Group. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.

Page 27

 
ESCAPE FITNESS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.15
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on both a straight line and a reducing balance basis.

Depreciation is provided on the following basis:

Freehold property
-
4% of valued amount
Plant and machinery
-
15% reducing balance and 33% straight line
Motor vehicles
-
15% reducing balance
Office equipment
-
15% reducing balance

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.16

Revaluation of tangible fixed assets

Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

 
2.17

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.18

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. 

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.19

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Page 28

 
ESCAPE FITNESS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.20

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.21

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.22

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Group has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

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, with 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 trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the
Page 29

 
ESCAPE FITNESS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.22
Financial instruments (continued)

estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

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 the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

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

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

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

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

Page 30

 
ESCAPE FITNESS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.23

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The following are the critical estimations that the directors have made in the process of applying the Group's accounting policies and that have the most significant effect on the amounts recognised in the financial statements.
Key source of estimation uncertainty - Determining residual values and useful economic lives of tangible fixed assets
The Group depreciates tangible assets over their estimated useful lives. The estimation of the useful lives of assets is based on historic performance as well as expectations about future use and therefore requires estimates and assumptions to be applied by management. The actual lives of these assets can vary depending on a variety of factors, including technological innovation, product life cycles and maintenance programmes.
Judgement is applied by management when determining the residual values for tangible fixed assets. When determining the residual value, management aim to asses the amount that the Group would currently obtain for the disposal of the asset, if it were already of the condition expected at the end of its useful economic life. Where possible this is done with reference to external market prices.
Key source of estimation uncertainty – Recoverability of debtors
Trade and other debtors are recognised to the extent that they are judged recoverable. Management performs reviews to estimate the level of irrecoverable debt, and provisions are made specifically against invoices where recoverability is uncertain.
Management makes allowances for doubtful debts based on an assessment of the recoverability of debtors. Allowances are applied to debtors where events or changes in circumstances indicate that the carrying amounts may not be recoverable. Management specifically analyse historical bad debts when making a judgement to evaluate the adequacy of the provision for doubtful debts. Where the expectations are different from the original estimate, such differences will impact the carrying value of debtors and the charge in the profit and loss account.
Key source of estimation uncertainty – Stock obsolescence
The Group establishes a provision for obsolescent stock. When assessing the stock value, the directors consider factors such as the nature, condition and aging of the stock, as well as past experience of saleability.

Page 31

 
ESCAPE FITNESS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

4.


Turnover

The analysis of turnover by geographical market required by paragraph 68 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 has not been provided as, in the opinion of the directors, such disclosure would be seriously prejudicial to the interests of the Group.
The whole of the turnover is attributable to the principal activities of the group, and all of this turnover is derived from the sale of goods.


5.


Other operating income

2023
2022
£
£

Other operating income
-
2,049



6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Research & development charged as an expense
101,829
77,341

Exchange differences
(422,526)
341,610

Other operating lease rentals: land and buildings
361,180
345,643

(Profit)/Loss on sale of assets
(472)
480


7.


Auditor's remuneration

During the year, the Group obtained the following services from the Company's auditor:


2023
2022
£
£

Fees payable to the Group's auditors for the audit of the Group's financial statements
58,500
44,000

The audit of the Company's subsidiaries
8,000
7,000

Page 32

 
ESCAPE FITNESS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

Fees payable to the Group's auditor in respect of:

2023
2022
£
£



Taxation compliance and advisory services
20,147
7,490

Other services
33,830
35,770





8.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
2023
2022
£
£


Wages and salaries
2,660,165
2,818,582

Social security costs
270,519
293,463

Cost of defined contribution scheme
47,772
53,312

2,978,456
3,165,357


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Warehouse and distribution
13
12



Finance and administration
38
42



Sales
18
20



Manufacturing
8
9

77
83

Page 33

 
ESCAPE FITNESS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

9.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
238,405
175,528

Group contributions to defined contribution pension schemes
-
21,000

238,405
196,528


During the year retirement benefits were accruing to no directors (2022 - 5) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £69,450 (2022 - £65,004).

The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £NIL (2022 - £3,500).


10.


Interest receivable

2023
2022
£
£


Other interest receivable
9,539
6,744


11.


Interest payable and similar expenses

2023
2022
£
£


Other loan interest payable
323,182
152,956

Finance leases and hire purchase contracts
543
885

Other interest payable
159,567
132,994

483,292
286,835

Page 34

 
ESCAPE FITNESS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

12.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
-
26,328

Adjustments in respect of previous periods
-
27,594


-
53,922

Foreign tax


Foreign tax on income for the year
41,121
43,971

Total current tax
41,121
97,893

Deferred tax


Origination and reversal of timing differences
1,095
-

Total deferred tax
1,095
-


Taxation
42,216
97,893
Page 35

 
ESCAPE FITNESS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 25% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Loss on ordinary activities before tax
(33,893)
(169,136)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2022 - 19%)
(8,473)
(32,136)

Effects of:


Expenses not deductible for tax purposes
1,789
285

Capital allowances for year in excess of depreciation
17,788
18,842

Adjustments to tax charge in respect of prior periods
-
27,954

Short-term timing difference leading to an increase in taxation
1,095
-

Adjustment in research and development tax credit leading to a decrease in the tax charge
(18,330)
(67,897)

(Profit)/loss on disposal of fixed assets
(118)
1,152

Other differences leading to an increase (decrease) in the tax charge
7,344
29,342

Overseas tax paid
41,121
120,351

Total tax charge for the year
42,216
97,893


Factors that may affect future tax charges

In the Spring Budget 2021, the UK Government announced that from 1 April 2023 the corporation tax rate would increase to 25% (rather than remaining at 19%, as previously enacted). This new law was substantively enacted on 24 May 2021. For the financial year ended 31 December 2023, the current weighted averaged tax rate was 23.5%.
Deferred taxes at the balance sheet date have been measured using these enacted tax rates and reflected in these financial statements.


13.


Dividends

2023
2022
£
£


Dividends declared
167,982
524,965

Page 36

 
ESCAPE FITNESS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

14.


Parent company profit for the year

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Profit and loss account in these financial statements. The profit after tax of the parent Company for the year was £7,774 (2022 - £237,088).


15.


Intangible assets

Group and Company





Patents
Goodwill
Total

£
£
£



Cost


At 1 January 2023
505,344
231,549
736,893


Additions
75,410
-
75,410



At 31 December 2023

580,754
231,549
812,303



Amortisation


At 1 January 2023
367,461
220,928
588,389


Charge for the year on owned assets
91,299
10,621
101,920



At 31 December 2023

458,760
231,549
690,309



Net book value



At 31 December 2023
121,994
-
121,994



At 31 December 2022
137,883
10,621
148,504



Page 37

 
ESCAPE FITNESS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

16.


Tangible fixed assets

Group






Freehold property
Plant and machinery
Motor vehicles
Office equipment
Total

£
£
£
£
£



Cost or valuation


At 1 January 2023
1,798,000
2,161,897
25,155
73,171
4,058,223


Additions
-
1,401
-
-
1,401


Disposals
-
(7,663)
-
(745)
(8,408)


Exchange adjustments
-
407
(461)
(27,354)
(27,408)



At 31 December 2023

1,798,000
2,156,042
24,694
45,072
4,023,808



Depreciation


At 1 January 2023
120,000
1,624,382
10,546
50,316
1,805,244


Charge for the year on owned assets
-
91,931
3,310
11,663
106,904


Charge for the year on financed assets
-
1,335
2,339
-
3,674


Disposals
-
(7,473)
-
-
(7,473)


Exchange adjustments
-
(247)
(328)
(25,051)
(25,626)



At 31 December 2023

120,000
1,709,928
15,867
36,928
1,882,723



Net book value



At 31 December 2023
1,678,000
446,114
8,827
8,144
2,141,085



At 31 December 2022
1,678,000
537,515
14,609
22,855
2,252,979

Page 38

 
ESCAPE FITNESS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

           16.Tangible fixed assets (continued)

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2023
2022
£
£



Plant and machinery
68,388
85,938


The land and buildings were revalued at 31 December 2022 by a professional valuer on an open market for existing use basis. Land and buildings were revalued to £1,798,000 at this point.

If the land and buildings had not been included at valuation they would have been included under the historical cost convention as follows:

2023
2022
£
£

Group


Cost
1,165,875
1,165,875

Accumulated depreciation
(792,795)
(746,160)

Net book value
373,080
419,715

Page 39

 
ESCAPE FITNESS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

           16.Tangible fixed assets (continued)


Company






Freehold property
Plant and machinery
Total

£
£
£

Cost or valuation


At 1 January 2023
1,798,000
1,977,669
3,775,669


Additions
-
1,401
1,401


Disposals
-
(7,663)
(7,663)



At 31 December 2023

1,798,000
1,971,407
3,769,407



Depreciation


At 1 January 2023
120,000
1,456,170
1,576,170


Charge for the year
-
89,367
89,367


Disposals
-
(7,473)
(7,473)



At 31 December 2023

120,000
1,538,064
1,658,064



Net book value



At 31 December 2023
1,678,000
433,343
2,111,343



At 31 December 2022
1,678,000
521,499
2,199,499


The net book value of assets held under finance leases or hire purchase contracts, included within plant and machinery above, totals £63,183 (2022: £74,333).










Page 40

 
ESCAPE FITNESS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

17.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 January 2023
32,614



At 31 December 2023
32,614





Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

Escape Fitness GmbH
Overweg 21, 59494 Soest, Germany
Ordinary
100%
Escape Fitness Poland Sp.z.o.o
ul. Hrubieszowska 2, Warszawa, Poland
Ordinary
100%
Escape Fitness USA LLC
4434 Muhlhauser Road, Suite 300, West Chester, Ohio, 45011
Ordinary
100%
Escape Technologies Limited
11-14 Tresham Road, Orton Southgate, Peterborough, Cambridgeshire, PE2 6SG, UK
Ordinary
100%

All subsidiary undertakings are included in the consolidated financial statements.









Page 41

 
ESCAPE FITNESS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

18.


Stocks

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Work in progress (goods to be sold)
36,757
43,992
-
-

Finished goods and goods for resale
2,218,927
3,948,993
1,454,646
2,432,560

2,255,684
3,992,985
1,454,646
2,432,560


The difference between purchase price or production cost of stocks and their replacement cost is not material.


19.


Debtors

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Due after more than one year

Other debtors
662,607
670,138
662,607
670,138

662,607
670,138
662,607
670,138


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Due within one year

Trade debtors
1,661,797
1,970,005
1,069,568
1,249,799

Amounts owed by group undertakings
-
-
1,573,532
1,693,786

Other debtors
1,475,189
1,090,618
1,466,641
1,067,251

Prepayments and accrued income
100,171
148,490
81,548
113,782

3,237,157
3,209,113
4,191,289
4,124,618


Included within trade debtors are amounts totalling £1,324,082 (2022: £1,377,568) that are subject to an invoice discounting arrangement. The amounts received against those debtors is included within creditors falling due within one year.
Amounts owed by group undertakings are unsecured, interest free and are repayable on demand.

Page 42

 
ESCAPE FITNESS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

20.


Cash and cash equivalents

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Cash at bank and in hand
427,766
154,322
85,192
8,111

Less: bank overdrafts
(12)
(14,456)
-
-

427,754
139,866
85,192
8,111



21.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Bank overdrafts
12
14,456
-
-

Bank loans
1,713,200
2,140,866
1,713,200
2,140,866

Other loans
958,647
739,848
253,980
156,191

Payments received on account
139,563
172,772
139,563
172,772

Trade creditors
4,232,500
5,057,849
3,789,441
4,187,735

Amounts owed to group undertakings
-
-
504,687
275,446

Corporation tax
97,743
196,015
88,434
124,209

Other taxation and social security
86,708
96,672
47,317
54,224

Obligations under finance lease and hire purchase contracts
23,496
33,780
19,502
25,292

Other creditors
144,173
156,649
118,527
126,971

Accruals and deferred income
356,527
241,261
292,875
315,792

7,752,569
8,850,168
6,967,526
7,579,498


Page 43

 
ESCAPE FITNESS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

.Creditors: Amounts falling due within one year (continued)

Included in bank loans is an amount of £611,128 (2022: £448,661) relating to a debt factoring arrangement which is secured against the trade debtors to which they relate. Furthermore bank loans amounting to £1,102,072 (2022: £1,692,205) are secured against the freehold land and buildings and stock of the Group.
Included in other loans is a pension scheme loan amount to £141,410 (2022: £54,216) which is secured against the Group's intellectual property.
Also included in other loans is an amount of £395,204 (2022: £347,929) relating to a debt factoring arrangement in place for one of the subsidiaries which is secured against the trade debtors to which the relate.
Also included in other loans is an amount of £46,754 (2022: £41,905) relating to Covid funding, secured under similar terms to other financing.
Also included in other loans is an amount of £375,279 (2022: £295,798) which is secured against the Group's assets.
Obligations under finance leases and hire purchase contracts of £23,496 (2022: £33,780) are secured against the assets to which they relate.
Amounts owed to group undertakings are unsecured, interest free and are repayable on demand.


22.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Other loans
421,213
591,680
421,213
591,680

Obligations under finance leases and hire purchase contracts
28,123
41,835
28,123
41,835

449,336
633,515
449,336
633,515


Included in other loans is an amount of £210,622 (2022: £276,438) which is secured against the Group's assets.
Also included in other loans is an amount of £103,405 (2022: £154,181) relating to Covid funding, secured under similar terms to other financing.
Also included in other loans is a pension scheme loan amounting to £107,186 (2022: £161,061) which is secured against the Group's intellectual property.
Obligations under finance leases and hire purchase contracts of £28,123 (2022: £41,835) are secured against the assets to which they relate.



Page 44

 
ESCAPE FITNESS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

23.


Loans


Analysis of the maturity of loans is given below:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Amounts falling due within 1 year

Bank loans
1,713,200
2,140,866
1,713,200
2,140,866

Other loans
958,647
739,848
253,980
156,191


2,671,847
2,880,714
1,967,180
2,297,057

Amounts falling due 1-2 years

Other loans
187,606
173,074
187,606
173,074

Amounts falling due 2-5 years

Other loans
233,607
418,606
233,607
418,606

3,093,060
3,472,394
2,388,393
2,888,737



24.


Hire purchase and finance leases


Minimum lease payments under hire purchase and finance leases fall due as follows:

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Within 1 year
23,496
33,780
19,502
25,292

Between 1-5 years
28,123
41,835
28,123
41,835

51,619
75,615
47,625
67,127
Page 45

 
ESCAPE FITNESS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

25.


Deferred taxation


Group



2023
2022


£

£






At beginning of year
1,770
2,357


Charged to profit or loss
1,095
(587)



At end of year
2,865
1,770

The provision for deferred taxation is made up as follows:

Group
Group
2023
2022
£
£

Accelerated capital allowances
2,865
1,770


26.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



1,000 (2022 - 1,000) Ordinary £1 shares of £1.00 each
1,000
1,000

The Company has one class of ordinary shares.
Each ordinary share has equal voting and distribution rights, including repayment of capital in the event of winding up.


Page 46

 
ESCAPE FITNESS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

27.


Reserves

Revaluation reserve

The revaluation reserve represents the cumulative effect of revaluations of freehold buildings.

Foreign exchange reserve

The foreign exchange reserve represents translation differences arising from the translation of financial statements of the Group's foreign entities into Sterling.

Profit and loss account

The profit and loss account represents cumulative profits or losses net of dividends paid and other adjustments.


28.


Pension commitments

The Group contributes to a defined contribution scheme for its directors and employees. The assets of the scheme are held separately from those of the Group in an independently administered fund. The charge for the year is £47,772 (2022: £53,312). There were no outstanding or prepaid contributions at the Balance sheet date (2022: £Nil).


29.


Commitments under operating leases

At 31 December 2023 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Not later than 1 year
147,299
172,752
147,299
172,752

Later than 1 year and not later than 5 years
230,094
322,561
230,094
322,561

Later than 5 years
-
12,832
-
12,832

377,393
508,145
377,393
508,145

Page 47

 
ESCAPE FITNESS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

30.


Transactions with directors

During the year advances totalling £144,786 (2022: £70,043) were made to a director, of which £Nil (2022: £74,738) was repaid. At the year end £234,647 (2022: £86,793) was owed to the Group. Interest has been charged on this loan at a commercial rate totalling £3,068 (2022: £2,076). The balance is included within other debtors.
During the year advances totalling £67,378 (2022: £28,357) were made to another director, of which £48,114 (2022: £45,141) was repaid. At the year end £31,329 (2022: £11,307) was owed to the Group. Interest has been charged on this loan at a commercial rate totalling £758 (2022: £814). The balance is included within other debtors.
During the year advances totalling £19,600 (2022: £41,519) were made to another director, of which £nil (2022: £30,198) was repaid. At the year end £66,080 (2022: £45,113) was owed to the Group. Interest has been charged on this loan at a commercial rate totalling £1,367 (2022: £824). The balance is included within other debtors.
During the year advances totalling £32,918 (2022: £34,424) were made to another director, of which £Nil (2022: £16,732) was repaid. At the year end £82,399 (2022: £48,022) was owed to the Group. Interest has been charged on this loan at a commercial rate totalling £1,459 (2022: £816). The balance is included within other debtors.
During the year advances totalling £32,797 (2022: £36,112) were made to another director, of which £Nil (2022: £40,189) was repaid. At the year end £82,120 (2022: £47,906) was owed to the Group. Interest has been charged on this loan at a commercial rate totalling £1,417 (2022: £1,167). The balance is included within other debtors.


31.


Related party transactions

The Group was under the control of the directors throughout the current and previous year.
The total remuneration for key management personnel for the year, including directors, totalled £263,388 (2022: £215,680).
During the year the group loaned monies to Escape Creative LLP formerly known as Proactive Health LLP, an LLP in which the directors of Escape Fitness Limited are the members. At the year end the group was due £502,607 (2022: £510,138) from Proactive Health LLP, which is shown within other debtors.
During the year the group loaned monies to Evergreen Barbell Limited, a Company which has a common shareholder. At the year end the group was due £745,587 (2022: £539,586) from Evergreen Barbell Limited, which is shown within other debtors.
At the year end £70,503 (2022: £45,863) was owed by a shareholder and this is included within other debtors.


32.


Post balance sheet events

Post year end, the Group has sold one of the Freehold properties to the Escape Fitness Limited Retirement Benefit Scheme and are leasing it back. There have been no other significant events affecting the Group since the year end.

 
Page 48