Acorah Software Products - Accounts Production 16.1.300 false true 30 June 2023 1 July 2022 false 21 November 2024 true 1 July 2023 30 June 2024 30 June 2024 09395915 Mr M P Towers iso4217:GBP iso4217:EUR iso4217:USD xbrli:shares xbrli:pure xbrli:pure 09395915 frs-core:CurrentFinancialInstruments frs-core:WithinOneYear 2023-06-30 09395915 frs-core:CurrentFinancialInstruments frs-core:WithinOneYear 2024-06-30 09395915 frs-core:Non-currentFinancialInstruments frs-core:BetweenOneFiveYears 2024-06-30 09395915 frs-core:Non-currentFinancialInstruments frs-core:MoreThanFiveYears 2024-06-30 09395915 2023-06-30 09395915 2024-06-30 09395915 2023-07-01 2024-06-30 09395915 frs-core:CurrentFinancialInstruments 2024-06-30 09395915 frs-core:Non-currentFinancialInstruments 2024-06-30 09395915 frs-core:BetweenOneFiveYears 2024-06-30 09395915 frs-core:ComputerEquipment 2024-06-30 09395915 frs-core:ComputerEquipment 2023-07-01 2024-06-30 09395915 frs-core:ComputerEquipment 2023-06-30 09395915 frs-core:FurnitureFittings 2024-06-30 09395915 frs-core:FurnitureFittings 2023-07-01 2024-06-30 09395915 frs-core:FurnitureFittings 2023-06-30 09395915 frs-core:LandBuildings frs-core:OwnedOrFreeholdAssets 2024-06-30 09395915 frs-core:LandBuildings frs-core:OwnedOrFreeholdAssets 2023-07-01 2024-06-30 09395915 frs-core:LandBuildings frs-core:OwnedOrFreeholdAssets 2023-06-30 09395915 frs-core:MotorVehicles 2024-06-30 09395915 frs-core:MotorVehicles 2023-07-01 2024-06-30 09395915 frs-core:MotorVehicles 2023-06-30 09395915 frs-core:PlantMachinery 2024-06-30 09395915 frs-core:PlantMachinery 2023-07-01 2024-06-30 09395915 frs-core:PlantMachinery 2023-06-30 09395915 frs-core:WithinOneYear 2024-06-30 09395915 frs-core:SharePremium 2024-06-30 09395915 frs-core:ShareCapital 2024-06-30 09395915 frs-core:RetainedEarningsAccumulatedLosses 2023-07-01 2024-06-30 09395915 frs-core:RetainedEarningsAccumulatedLosses 2024-06-30 09395915 frs-bus:PrivateLimitedCompanyLtd 2023-07-01 2024-06-30 09395915 frs-bus:FullAccounts 2023-07-01 2024-06-30 09395915 frs-bus:MediumEntities 2023-07-01 2024-06-30 09395915 frs-bus:Audited 2023-07-01 2024-06-30 09395915 frs-bus:Medium-sizedCompaniesRegimeForAccounts 2023-07-01 2024-06-30 09395915 frs-bus:Medium-sizedCompaniesRegimeForDirectorsReport 2023-07-01 2024-06-30 09395915 frs-core:DeferredTaxation 2023-07-01 2024-06-30 09395915 frs-core:DeferredTaxation 2023-06-30 09395915 frs-core:DeferredTaxation 2024-06-30 09395915 frs-bus:Director1 2023-07-01 2024-06-30 09395915 1 2023-07-01 2024-06-30 09395915 2 2023-07-01 2024-06-30 09395915 frs-countries:EnglandWales 2023-07-01 2024-06-30 09395915 frs-core:CurrentFinancialInstruments frs-core:WithinOneYear 2023-06-30 09395915 frs-core:Non-currentFinancialInstruments frs-core:BetweenOneFiveYears 2023-06-30 09395915 frs-core:Non-currentFinancialInstruments frs-core:MoreThanFiveYears 2023-06-30 09395915 2022-06-30 09395915 2023-06-30 09395915 2022-07-01 2023-06-30 09395915 frs-core:CurrentFinancialInstruments 2023-06-30 09395915 frs-core:Non-currentFinancialInstruments 2023-06-30 09395915 frs-core:BetweenOneFiveYears 2023-06-30 09395915 frs-core:WithinOneYear 2023-06-30 09395915 frs-core:SharePremium 2022-06-30 09395915 frs-core:SharePremium 2023-06-30 09395915 frs-core:ShareCapital 2022-06-30 09395915 frs-core:ShareCapital 2023-06-30 09395915 frs-core:RetainedEarningsAccumulatedLosses 2022-07-01 2023-06-30 09395915 frs-core:RetainedEarningsAccumulatedLosses frs-core:PreviouslyStatedAmount 2022-06-30 09395915 frs-core:RetainedEarningsAccumulatedLosses 2023-06-30 09395915 1 2022-07-01 2023-06-30 09395915 2 2022-07-01 2023-06-30
Registered number: 09395915
Club Towers Limited
Strategic Report, Director's Report and
Financial Statements
For The Year Ended 30 June 2024
Contents
Page
Strategic Report 1
Director's Report 2—3
Independent Auditor's Report 4—7
Profit and Loss Account 8
Statement of Comprehensive Income 9
Balance Sheet 10
Statement of Changes in Equity 11
Cash Flow Statement 12
Notes to the Cash Flow Statement 13
Notes to the Financial Statements 14—20
Page 1
Strategic Report
The director presents his strategic report for the year ended 30 June 2024.
Review of the Business
Club Towers Limited was established in 2015 in Bedfordshire.  It operates a health and racquets club that offers its members a high-end package of gym, group exercise classes, swimming, spa, tennis and squash facilities, coupled with a strong social element.  
Club Towers Limited is committed to offering members the very best health and racquets club experience and therefore we operate a cap on our membership numbers to ensure that the Club does not feel too busy and that members are able to access facilities even at peak times.
Principal Risks and Uncertainties
Liquidity Risk
The Company closed the year with cash reserves of £2.03M.  The Director is confident that this more than adequate to fund the ongoing working capital of the Company for the foreseeable future.
Competition
The Company operates in a competitive market place; however, it seeks to mitigate this risk by providing a unique, high end package and investing in maintaining and upgrading its faciliities as required to maintain its premium status.
Key Performance Indicators
2024
2023
Gross Profit percentage
90.45%
87.75%
Net Profit percentage
17.04%
17.35%
The financial position of the Compay remains strong and the Company is well placed to take advantage of business opportunities as they arise.  The director looks forward to the future with confidence.
On behalf of the board
Mr M P Towers
Director
21/11/2024
Page 1
Page 2
Director's Report
The director presents his report and the financial statements for the year ended 30 June 2024.
Principal Activity
The company's principal activity continues to be that of the operation of a health and racquet sports club.
Future Developments
The Company is currently exploring opportunities for expansion.  It recently purchased some additionial land adjacent to its current site with a view to possibly expanding and adding to its existing facilities.
Dividends
Dividends of £4,500 were distributed in the year ended 30 June 2024.
Directors
The director who held office during the year were as follows:
Mr M P Towers
Statement of Director's Responsibilities
The director is responsible for preparing the Strategic Report, the Director's Report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director 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 the financial statements the director is required to: 
  • select suitable accounting policies 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 company will continue in business.
The director is 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. He is 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.
The director is responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Statement of Disclosure of Information to Auditors
In the case of each director in office at the date the Director's Report is approved: 
  • so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware; and
  • they have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information.
Page 2
Page 3
Independent Auditors
The auditors, Ad Valorem Audit Services Limited, have indicated their willingness to continue in office and a resolution concerning their re-appointment will be proposed at the Annual General Meeting.
On behalf of the board
Mr M P Towers
Director
21/11/2024
Page 3
Page 4
Independent Auditor's Report
Opinion
We have audited the financial statements of Club Towers Limited for the year ended 30 June 2024 which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes of Equity, Cash Flow Statement and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".
In our opinion the financial statements:
  • give a true and fair view of the state of the company's affairs as at 30 June 2024 and of its profit/(loss) for the year then ended;
  • have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
  • have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for 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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions Relating to Going Concern
In auditing the financial statements, we have concluded that the director's 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 entity's ability to continue as a going concern for a period of at least 12 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.
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.
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Opinions on Other Matters Prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
  • the information given in the Strategic Report and Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
  • the Strategic Report and Director's Report have been prepared in accordance with applicable legal requirements.
Page 4
Page 5
Matters on Which We Are Required to Report by Exception
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 or the Director's 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, or returns adequate for our audit have not been received from branches not visited by us; or
  • the financial statements are not in agreement with the accounting records or returns; or
  • certain disclosures of director's remuneration specified by law are not made; or
  • we have not received all the information and explanations we require for our audit.
Responsibilities of Directors
As explained more fully in the Director's Responsibilities Statement set out on page 3, the director is 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 director 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 director is 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.
Page 5
Page 6
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: 
In our process of identifying fraud risks we assessed events or conditions that indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud ("fraud risk factors") to determine how fraud risks are relevant to our audit. Based on the auditing standards we addressed two fraud risks that were relevant to our audit, in relation to revenue recognition and management override of controls. Based upon our analysis of fraud risk factors, we have not identified any additional fraud risks.
Our audit procedures included an evaluation of the design, implementation as well as the operating effectiveness of internal controls relevant to mitigate these risks. We also performed substantive audit procedures, including detailed testing of high-risk journal entries and procedures to satisfy ourselves that revenue has been properly recognised in the financial statements in accordance with financial reporting standards and the Company's accounting policies. Through these procedures, we did not identify any material actual or suspected incidences of fraud.
We have evaluated facts and circumstances in order to assess laws and regulations relevant to the Company. We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general and sector experience, through discussion with the Directors and other management (as required by auditing standards) and discussed with the Directors and other management the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.
The potential effect of these laws and regulations on the financial statements varies considerably.  Firstly, the Company is subject to laws and regulations that directly affect the financial statements including taxation and financial reporting (including related company legislation) and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
Secondly, the Company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect:
- Employment legislation, reflecting the Company's workforce
- Health and safety regulation, reflecting the Company's production, distribution and operating processes
- Data privacy, reflecting the Company's management of personal and corporate data.
Auditing standards limit the required audit procedures to identify non-compliance with these regulations to enquiry of the Directors and other management and inspection of regulatory and legal correspondence, if any.  Through these procedures we did not identify any material actual or suspected non-compliance in any of the above areas.
We note that our audit is not primarily designed to detect non-compliance with laws and regulations and the Directors and other management are responsible for such internal control as the Directors and other management of the Company determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to errors or fraud, including compliance with laws and regulations.  Additionally, owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website 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 that 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.
Page 6
Page 7
Zubair Arshad FCCA (Senior Statutory Auditor)
for and on behalf of Ad Valorem Audit Services Limited , Statutory Auditor
21/11/2024
Ad Valorem Audit Services Limited
Chartered Certified Accountants
2 Manor Farm Court, Old Wolverton Road
Milton Keynes
Buckinghamshire
MK12 5NN
Page 7
Page 8
Profit and Loss Account
2024 2023
Notes £ £
TURNOVER 3,490,156 3,146,194
Cost of sales (333,169 ) (385,310 )
GROSS PROFIT 3,156,987 2,760,884
Administrative expenses (2,377,781 ) (1,925,102 )
OPERATING PROFIT 3 779,206 835,782
Loss on disposal of fixed assets (22,958 ) (2,145 )
Other interest receivable and similar income 8 61,266 17,320
Interest payable and similar charges 9 (98,026 ) (82,006 )
PROFIT BEFORE TAXATION 719,488 768,951
Tax on Profit 10 (125,688 ) (223,143 )
PROFIT AFTER TAXATION BEING PROFIT FOR THE FINANCIAL YEAR 593,800 545,808
The notes on pages 13 to 20 form part of these financial statements.
Page 8
Page 9
Statement of Comprehensive Income
2024 2023
£ £
PROFIT FOR THE FINANCIAL YEAR 593,800 545,808
OTHER COMPREHENSIVE INCOME FOR THE YEAR - -
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 593,800 545,808
Page 9
Page 10
Balance Sheet
Registered number: 09395915
2024 2023
Notes £ £ £ £
FIXED ASSETS
Tangible Assets 11 9,297,711 8,860,971
9,297,711 8,860,971
CURRENT ASSETS
Stocks 12 5,945 5,505
Debtors 13 73,682 103,118
Cash at bank and in hand 2,028,619 1,911,756
2,108,246 2,020,379
Creditors: Amounts Falling Due Within One Year 14 (2,762,946 ) (2,807,069 )
NET CURRENT ASSETS (LIABILITIES) (654,700 ) (786,690 )
TOTAL ASSETS LESS CURRENT LIABILITIES 8,643,011 8,074,281
Creditors: Amounts Falling Due After More Than One Year 15 (1,088,424 ) (1,096,190 )
PROVISIONS FOR LIABILITIES
Deferred Taxation (438,500 ) (451,407 )
NET ASSETS 7,116,087 6,526,684
CAPITAL AND RESERVES
Called up share capital 19 1,294 1,191
Share premium account 4,999,684 4,999,684
Profit and Loss Account 2,115,109 1,525,809
SHAREHOLDERS' FUNDS 7,116,087 6,526,684
On behalf of the board
Mr M P Towers
Director
21/11/2024
The notes on pages 13 to 20 form part of these financial statements.
Page 10
Page 11
Statement of Changes in Equity
Share Capital Share Premium Profit and Loss Account Total
£ £ £ £
As at 1 July 2022 1,191 4,999,684 980,001 5,980,876
Profit for the year and total comprehensive income - - 545,808 545,808
As at 30 June 2023 and 1 July 2023 1,191 4,999,684 1,525,809 6,526,684
Profit for the year and total comprehensive income - - 593,800 593,800
Dividends paid - - (4,500) (4,500)
Arising on shares issued during the period 103 - - 103
As at 30 June 2024 1,294 4,999,684 2,115,109 7,116,087
Page 11
Page 12
Cash Flow Statement
2024 2023
Notes £ £
Cash flows from operating activities
Net cash generated from operations 1 738,993 976,763
Interest paid (98,026 ) (82,006 )
Tax paid (79,681 ) (5,525 )
Net cash generated from operating activities 561,286 889,232
Cash flows from investing activities
Purchase of tangible assets (516,608 ) (246,662 )
Proceeds from disposal of tangible assets 9,920 5,000
Interest received 61,266 17,320
Net cash used in investing activities (445,422 ) (224,342 )
Cash flows from financing activities
Proceeds from issue of share capital 103 -
Equity dividends paid (4,500 ) -
Repayment of bank borrowings (96,372 ) (99,743 )
Repayment of finance leases 131,092 11,549
Amount withdrawn by directors (29,324) (18,096)
Net cash generated from/(used in) financing activities 999 (106,290 )
Increase in cash and cash equivalents 116,863 558,600
Cash and cash equivalents at beginning of year 2 1,911,756 1,353,156
Cash and cash equivalents at end of year 2 2,028,619 1,911,756
Page 12
Page 13
Notes to the Cash Flow Statement
1. Reconciliation of profit for the financial year to cash generated from operations
2024 2023
£ £
Profit for the financial year 593,800 545,808
Adjustments for:
Tax on profit 125,688 223,143
Interest expense 98,026 82,006
Interest income (61,266 ) (17,320 )
Depreciation of tangible assets 46,990 40,608
Loss on disposal of tangible assets 22,958 2,145
Movements in working capital:
Increase in stocks (440 ) (400 )
Decrease/(increase) in trade and other debtors 29,436 (20,434 )
(Decrease)/increase in trade and other creditors (116,199 ) 121,207
Net cash generated from operations 738,993 976,763
2. Cash and cash equivalents
Cash and cash equivalents, as stated in the Statement of Cash Flows, relates to the following items in the Balance Sheet:
2024 2023
£ £
Cash at bank and in hand 2,028,619 1,911,756
3. Analysis of changes in net funds
As at 1 July 2023 Cash flows As at 30 June 2024
£ £ £
Cash at bank and in hand 1,911,756 116,863 2,028,619
Finance leases (22,200) (131,092) (153,292)
Debts falling due within one year (111,960 ) (10,650) (122,610 )
Debts falling due after more than one year (1,083,504) 107,022 (976,482)
694,092 82,143 776,235
Page 13
Page 14
Notes to the Financial Statements
1. General Information
Club Towers Limited is a private company, limited by shares, incorporated in England & Wales, registered number 09395915 . The registered office is Park House Village Road, Bromham, Bedford, MK43 8HX.
2. Accounting Policies
2.1. Basis of Preparation of Financial Statements
The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland'' and the Companies Act 2006.
2.2. Significant judgements and estimations
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The estimated residual value of the freehold property is considered to be in excess of the cost recorded in the financial statements and so depreciation is not provided.  There is an inevitable degree of judgement involved in reaching the estimate of the useful life of the property and the future value at the end of that life.
The directors do not consider there to be any critical accounting judgements.
2.3. Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.
Revenue Recognition
Revenue primarily represents sales of services provided in the period and non refundable joining fees received during the period, exclusive of value added tax. Turnover is the total of membership subscriptions, joining fee income, cafe lounge sales, different types of training and coaching fees.
Membership subscriptions are received in advance of the month to which they relate to and recognised as soon as it is received. 
2.4. Tangible Fixed Assets and Depreciation
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
Plant & Machinery 25% reducing balance
Motor Vehicles 20% reducing balance
Fixtures & Fittings 10% reducing balance
Computer Equipment 33% reducing balance
Freehold Property
Due to the ongoing maintenance of the Freehold Property, the residual value of the building is deemed to be a least equal to the cost recorded in the financial statements.  There is therefore no charge for depreciation included in the financial statements.
The land on which the building is situated is not depreciated.
2.5. Leasing and Hire Purchase Contracts
Assets obtained under finance leases are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts 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 the creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to profit and loss account as incurred.
Page 14
Page 15
2.6. Stocks and Work in Progress
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.
Cost is determined using the first-in, first-out method. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.
At the end of each reporting period stocks are assessed for impairment. If an item of stock is impaired, the identified stock is reduced to its selling price less costs to complete and sell and an impairment charge is recognised in the profit and loss account. Where a reversal of the impairment is required the impairment charge is reversed, up to the original impairment loss, and is recognised as a credit in the profit and loss account.
2.7. Cash and Cash Equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks, other short-term highly liquid investments that mature in no more than three months from the date of acquisition and are readily convertible to a known amount of cash with insignificant risk of change in value, and bank overdrafts.
2.8. Financial Instruments
Basic financial assets, which include debtors and cash and bank balances, are intially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement consitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.  Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors,  bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.  Financial liabilities classified as payable within one year are not amortised.
Deirvative financial instruments are initially recorded at cost and thereafter at fair value with changes recongised in the income statement.
2.9. Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and 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 end of the reporting period.
Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period 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 assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Current or deferred tax for the year is recognised in profit or loss, except when they related to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax is also recognised in other comprehensive income or directly in equity respectively.
2.10. Pensions
The company operates a defined pension contribution scheme. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme.
Page 15
Page 16
3. Operating Profit
The operating profit is stated after charging:
2024 2023
£ £
Bad debts - 1,541
Depreciation of tangible fixed assets 46,990 40,608
4. Auditor's Remuneration
Remuneration received by the company's auditors and their associates during the year was as follows:
2024 2023
£ £
Audit Services
Audit of the company's financial statements 9,500 7,100
5. Staff Costs
Staff costs, including directors' remuneration, were as follows:
2024 2023
£ £
Wages and salaries 1,253,192 1,040,530
Social security costs 88,828 71,689
Other pension costs 29,112 23,666
1,371,132 1,135,885
6. Average Number of Employees
Average number of employees, including directors, during the year was as follows:
2024 2023
Office and administration 3 3
Sales, marketing and distribution 5 5
Operations 53 52
Maintenance 6 7
67 67
7. Director's remuneration
2024 2023
£ £
Emoluments 8,116 7,595
8. Interest Receivable and Similar Income
2024 2023
£ £
Bank interest receivable 60,977 17,320
Other interest receivable 289 -
61,266 17,320
Page 16
Page 17
9. Interest Payable and Similar Charges
2024 2023
£ £
Bank loans and overdrafts 62,325 80,083
Finance charges payable under finance leases and hire purchase contracts 5,489 1,923
Other finance charges 30,212 -
98,026 82,006
10. Tax on Profit
The tax charge on the profit for the year was as follows:
Tax Rate 2024 2023
2024 2023 £ £
Current tax
UK Corporation Tax 25.0% 25.0% 138,595 64,881
Deferred Tax
Deferred taxation (12,907 ) 158,262
Total tax charge for the period 125,688 223,143
The actual charge for the year can be reconciled to the expected charge for the year based on the profit and the standard rate of corporation tax as follows:
2024 2023
£ £
Profit before tax 719,488 768,951
Tax on profit at 25% (UK standard rate) 179,872 192,238
Goodwill/depreciation not allowed for tax 17,487 10,688
Expenses not deductible for tax purposes 1,359 413
Tax losses utilised - (27,180 )
Capital allowances (60,123 ) (97,020 )
Difference in tax rates - (14,258 )
Total tax charge for the period 138,595 64,881
11. Tangible Assets
Land & Property
Freehold Plant & Machinery Motor Vehicles Fixtures & Fittings
£ £ £ £
Cost
As at 1 July 2023 8,597,323 505,611 34,380 152,079
Additions 425,551 66,829 - 21,735
Disposals - (44,454 ) - -
As at 30 June 2024 9,022,874 527,986 34,380 173,814
Depreciation
As at 1 July 2023 - 343,066 5,157 95,697
...CONTINUED
Page 17
Page 18
Provided during the period - 27,396 5,845 7,812
Disposals - (11,576 ) - -
As at 30 June 2024 - 358,886 11,002 103,509
Net Book Value
As at 30 June 2024 9,022,874 169,100 23,378 70,305
As at 1 July 2023 8,597,323 162,545 29,223 56,382
Computer Equipment Total
£ £
Cost
As at 1 July 2023 50,624 9,340,017
Additions 2,493 516,608
Disposals - (44,454 )
As at 30 June 2024 53,117 9,812,171
Depreciation
As at 1 July 2023 35,126 479,046
Provided during the period 5,937 46,990
Disposals - (11,576 )
As at 30 June 2024 41,063 514,460
Net Book Value
As at 30 June 2024 12,054 9,297,711
As at 1 July 2023 15,498 8,860,971
12. Stocks
2024 2023
£ £
Stock 5,945 5,505
13. Debtors
2024 2023
£ £
Due within one year
Trade debtors - 13,021
Prepayments and accrued income 60,923 57,006
Other debtors 12,759 33,091
73,682 103,118
Page 18
Page 19
14. Creditors: Amounts Falling Due Within One Year
2024 2023
£ £
Net obligations under finance lease and hire purchase contracts 41,350 9,514
Trade creditors 135,065 295,061
Bank loans and overdrafts 122,610 111,960
Corporation tax 118,691 59,777
Other taxes and social security 41,326 19,364
VAT 190,352 138,643
Other creditors 57,018 13,927
Accruals and deferred income 28,195 101,160
Director's loan account 2,028,339 2,057,663
2,762,946 2,807,069
15. Creditors: Amounts Falling Due After More Than One Year
2024 2023
£ £
Net obligations under finance lease and hire purchase contracts 111,942 12,686
Bank loans 976,482 1,083,504
1,088,424 1,096,190
Of the creditors falling due after more than one year the following amounts are due after more than five years.
2024 2023
£ £
Bank loans 456,620 581,080
Of the creditors the following amounts are secured.
2024 2023
£ £
Net obligations under finance lease and hire purchase contracts 153,292 22,200
Bank loans and overdrafts 1,099,092 1,195,464
The bank loans are secured by way of a legal mortgage and debenture incorporating a fixed and floating charge over the assets and undertakings of the company.
Obligations held under hire purchase are secured on the assets concerned.
16. Loans
An analysis of the maturity of loans is given below:
2024 2023
£ £
Amounts falling due within one year or on demand:
Bank loans 122,610 111,960
2024 2023
£ £
Amounts falling due between one and five years:
Bank loans 519,862 502,424
Page 19
Page 20
2024 2023
£ £
Amounts falling due after more than five years:
Bank loans 456,620 581,080
17. Obligations Under Finance Leases and Hire Purchase
2024 2023
£ £
The future minimum finance lease payments are as follows:
Not later than one year 41,350 9,514
Later than one year and not later than five years 111,942 12,686
153,292 22,200
153,292 22,200
18. Provisions for Liabilities
Deferred Tax Total
£ £
As at 1 July 2023 451,407 451,407
Utilised (12,907 ) (12,907)
Balance at 30 June 2024 438,500 438,500
19. Share Capital
2024 2023
£ £
Allotted, Called up and fully paid 1,294 1,191
Called Up Share Capital
Allotted, issued and fully paid:
At the year end 30th June 2023 there were 10,238 Ordinary shares and 1,666 Ordinary B shares, nominal value 10 pence allotted, issued and fully paid.
During the year ending 30th June 2024, 238 Ordinary B shares were reclassified as Ordinary shares and 1,031 Ordinary B shares, nominal value 10 pence were issued.
At the year end 30th June 2024, 10476 10 pence Ordinary shares and 2459 10 pence Ordinary B shares were allotted, issued and fully paid.
20. Dividends
2024 2023
£ £
On equity shares:
Final dividend paid 4,500 -
21. Related Party Disclosures
The director is considered to the controlling party due to his controlling shareholding.
Included in creditors is an amount of £2,028,339 (2023: £2,057,663) due to Mr M P Towers, the sole director. Interest has been charged on the directors loan balance during the year of £30,000 (2023: £25,520). There are no set repayment terms regarding the directors loan.
Page 20