Company registration number 13208919 (England and Wales)
EVERLAST (GROUP) HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
EVERLAST (GROUP) HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Mr M D Hunter
Mr J L Cross
Mr C H Bott
Mr M A Buttree
Company number
13208919
Registered office
The School House
Parkfield Terrace
Stanningley
Pudsey
West Yorkshire
LS28 6BS
Auditor
Azets Audit Services Limited
Triune Court
Monks Cross Drive
York
YO32 9GZ
EVERLAST (GROUP) HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Group statement of comprehensive income
7
Group balance sheet
8
Company balance sheet
9
Group statement of changes in equity
10
Company statement of changes in equity
11
Group statement of cash flows
12
Notes to the financial statements
13 - 31
EVERLAST (GROUP) HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 1 -

The directors present the strategic report for the year ended 31 May 2024.

Review of the business

Everlast Group Holdings Limited (EGHL) is purely a holding company and has three main trading subsidiaries with principal activities of Roofing, Scaffolding and Cladding.

 

The results for the period show a gross profit of £15,241,253 and pre-tax profits of £5,231,911.

 

Whilst Turnover was down (6.5%), the Group exited the financial year with a strong order book with a number of contracts delayed impacting the fourth quarter.

 

Overall, the directors are satisfied with the results of the company for the period given the economic environment and are very confident that activity levels will continue in the foreseable future.

Principal risks and uncertainties

The key business risks and uncertainties affecting the group are considered to relate to competition from other contractors and economic conditions of the construction industry in general. The business has traded successfully through a few years of economic turbulence and continues to develop and evolve. It maintains strong relationships with key customers and suppliers, and has strong support structures throughout.

 

The group does not actively use financial instruments as part of its financial risk management. It is exposed to the usual risk and cash flow risk associated with selling on credit and manages this through credit control procedures. The nature of its financial instruments means that they are not subject to a price risk or liquidity risk.

Key performance indicators

The performance of the business is constantly monitored to the following Financial Performance Indicators. Gross Profit Margin - in total, and by each business division and segment.

 

Across its business categories, Gross Margins were consistent with performance in 2023, and continued to meet the expectations of the Directors.

 

The performance in the financial year was strong given the wider economic challenges, demonstrating the division's strength in planning and delivering multiple projects across all sectors.

 

Administrative expenses as a percentage of turnover for 2024 were 20.8%.

 

Aged Debtors are measured on an average basis. With reference to Trade Debtors, days outstanding were 47.

 

Profit and loss, balance sheet and cash flow are all monitored through the year by comparison to forecasts and prior year performance.

 

The Directors are pleased with the Group's net asset position, £9,942,045, at the Balance Sheet Date.

 

On behalf of the board

Mr M A Buttree
Director
22 January 2025
EVERLAST (GROUP) HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 2 -

The directors present their annual report and financial statements for the year ended 31 May 2024.

Principal activities

The principal activity of the company continued to be that of a holding company.

 

The principal activity of the group continued to be that of roofing, rail works, scaffolding, facades and cladding contractors.

Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £1,169,916. The directors do not recommend payment of a further dividend.

Directors

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

Mr M D Hunter
Mr J L Cross
Mr C H Bott
Mr M A Buttree
Auditor

The auditor, Azets Audit Services Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of disclosure to auditor

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

On behalf of the board
Mr M A Buttree
Director
22 January 2025
EVERLAST (GROUP) HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MAY 2024
- 3 -

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

 

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

 

 

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

EVERLAST (GROUP) HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF EVERLAST (GROUP) HOLDINGS LIMITED
- 4 -
Opinion

We have audited the financial statements of Everlast (Group) Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 May 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

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

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

EVERLAST (GROUP) HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EVERLAST (GROUP) HOLDINGS LIMITED
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

EVERLAST (GROUP) HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EVERLAST (GROUP) HOLDINGS LIMITED
- 6 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Use of our report

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

Chris Woodroffe (Senior Statutory Auditor)
For and on behalf of Azets Audit Services Limited
22 January 2025
Chartered Accountants
Statutory Auditor
Triune Court
Monks Cross Drive
York
YO32 9GZ
EVERLAST (GROUP) HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
46,229,431
49,443,336
Cost of sales
(30,988,178)
(35,131,988)
Gross profit
15,241,253
14,311,348
Administrative expenses
(9,594,828)
(8,174,513)
Other operating income
83,336
104,846
Operating profit
4
5,729,761
6,241,681
Interest receivable and similar income
8
2,271
6,889
Interest payable and similar expenses
9
(500,121)
(225,233)
Profit before taxation
5,231,911
6,023,337
Tax on profit
10
(1,593,410)
(1,325,211)
Profit for the financial year
3,638,501
4,698,126
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
EVERLAST (GROUP) HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
31 MAY 2024
31 May 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
12
2,628,856
3,071,218
Other intangible assets
12
5,814
8,847
Total intangible assets
2,634,670
3,080,065
Tangible assets
13
1,194,081
603,272
3,828,751
3,683,337
Current assets
Stocks
16
710,868
295,256
Debtors
17
13,827,714
10,900,375
Cash at bank and in hand
7,735,510
9,126,908
22,274,092
20,322,539
Creditors: amounts falling due within one year
18
(14,594,764)
(13,124,280)
Net current assets
7,679,328
7,198,259
Total assets less current liabilities
11,508,079
10,881,596
Creditors: amounts falling due after more than one year
19
(1,414,034)
(3,361,136)
Provisions for liabilities
Deferred tax liability
23
152,000
47,000
(152,000)
(47,000)
Net assets
9,942,045
7,473,460
Capital and reserves
Called up share capital
25
95
95
Capital redemption reserve
5
5
Profit and loss reserves
9,941,945
7,473,360
Total equity
9,942,045
7,473,460
The financial statements were approved by the board of directors and authorised for issue on 22 January 2025 and are signed on its behalf by:
22 January 2025
Mr M A Buttree
Director
Company registration number 13208919 (England and Wales)
EVERLAST (GROUP) HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 MAY 2024
31 May 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
14
13,065,000
13,065,000
Current assets
Debtors
17
2,955,016
2,287,607
Cash at bank and in hand
16,030
22,883
2,971,046
2,310,490
Creditors: amounts falling due within one year
18
(14,544,496)
(12,027,522)
Net current liabilities
(11,573,450)
(9,717,032)
Total assets less current liabilities
1,491,550
3,347,968
Creditors: amounts falling due after more than one year
19
(1,283,500)
(3,162,500)
Net assets
208,050
185,468
Capital and reserves
Called up share capital
25
95
95
Capital redemption reserve
5
5
Profit and loss reserves
207,950
185,368
Total equity
208,050
185,468

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the period was £1,192,498 (2023 - £1,610,875 profit).

The financial statements were approved by the board of directors and authorised for issue on 22 January 2025 and are signed on its behalf by:
22 January 2025
Mr M A Buttree
Director
Company registration number 13208919 (England and Wales)
EVERLAST (GROUP) HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024
- 10 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 June 2022
100
-
0
4,352,741
4,352,841
Year ended 31 May 2023:
Profit and total comprehensive income
-
-
4,698,126
4,698,126
Dividends
11
-
-
(927,507)
(927,507)
Reduction of shares
25
(5)
-
(650,000)
(650,005)
Other movements
-
5
-
5
Balance at 31 May 2023
95
5
7,473,360
7,473,460
Year ended 31 May 2024:
Profit and total comprehensive income
-
-
3,638,501
3,638,501
Dividends
11
-
-
(1,169,916)
(1,169,916)
Balance at 31 May 2024
95
5
9,941,945
9,942,045
EVERLAST (GROUP) HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024
- 11 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 June 2022
100
-
0
152,000
152,100
Year ended 31 May 2023:
Profit and total comprehensive income for the year
-
-
1,610,875
1,610,875
Dividends
11
-
-
(927,507)
(927,507)
Reduction of shares
25
(5)
-
(650,000)
(650,005)
Other movements
-
5
-
5
Balance at 31 May 2023
95
5
185,368
185,468
Year ended 31 May 2024:
Profit and total comprehensive income
-
-
1,192,498
1,192,498
Dividends
11
-
-
(1,169,916)
(1,169,916)
Balance at 31 May 2024
95
5
207,950
208,050
EVERLAST (GROUP) HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
4,146,046
560,102
Interest paid
(500,121)
(225,233)
Income taxes paid
(1,298,073)
(1,107,791)
Net cash inflow/(outflow) from operating activities
2,347,852
(772,922)
Investing activities
Purchase of intangible assets
-
(9,100)
Purchase of tangible fixed assets
(889,762)
(164,889)
Proceeds from disposal of tangible fixed assets
38,211
7,324
Interest received
2,271
6,889
Net cash used in investing activities
(849,280)
(159,776)
Financing activities
Redemption of shares
-
0
(650,000)
Proceeds from new bank loans
-
5,500,000
Repayment of bank loans
(1,650,000)
(687,500)
Payment of finance leases obligations
(70,054)
(62,388)
Dividends paid to equity shareholders
(1,169,916)
(927,507)
Net cash (used in)/generated from financing activities
(2,889,970)
3,172,605
Net (decrease)/increase in cash and cash equivalents
(1,391,398)
2,239,907
Cash and cash equivalents at beginning of year
9,126,908
6,887,001
Cash and cash equivalents at end of year
7,735,510
9,126,908
EVERLAST (GROUP) HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
- 13 -
1
Accounting policies
Company information

Everlast (Group) Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is The School House, Parkfield Terrace, Stanningley, Pudsey, West Yorkshire, LS28 6BS.

 

The group consists of Everlast (Group) Holdings Limited and all of its subsidiaries.

1.1
Accounting convention

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

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £1.

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

The company has taken advantage of the disclosure exemptions of Section 33.1A of FRS102 which permits it to not present details of its transactions with members of the group where relevant group companies are all wholly owned.

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

 

EVERLAST (GROUP) HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 14 -
1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Everlast (Group) Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 May 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for roofing, rail works, scaffolding and construction services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from contracts for the provision of roofing and construction services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

EVERLAST (GROUP) HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 15 -
1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.7
Intangible fixed assets other than goodwill

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

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Software
33.5% straight line

True and fair override on hive-up of a former subsidiary undertaking Everlast Waterproofing (North West) Limited.

 

The trade and net assets were transferred at their net book value on 28 February 2006. The cost of the company's investment in that subsidiary undertaking reflected the underlying fair value of its net assets and goodwill at the time of acquisition. As a result of this transfer, the carrying value of the company's investment in that subsidiary undertaking exceeded its net realisable value. The Companies Act 2006 requires that the investment is written down accordingly and that the amount be charged as a loss to the company's profit and loss account. However, the directors consider that, as there has been no overall loss to the group, it would fail to give a true and fair view to charge the diminution to the company's profit and loss account and it should instead be allocated to goodwill and the identifiable net assets transferred so as to recognise in the company's individual balance sheet the effective cost of those net assets and goodwill. The effect on the company's balance sheet of this departure was to recognise goodwill of £1,428,314.

 

This goodwill is amortised over its useful economic life of 20 years, being the expected useful life at the date of the merger. At the balance sheet date this goodwill has a remaining life of 1.75 years.

EVERLAST (GROUP) HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 16 -
1.8
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and equipment
Straight line over 6 years
Fixtures and fittings
Straight line over 3-5 years
Motor vehicles
Straight line over 5 years

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.9
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.10
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

EVERLAST (GROUP) HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 17 -
1.11
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and stock is calculated using the FIFO method.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.12
Construction contracts

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

 

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

 

Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.

The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.

1.13
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.14
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

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

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

EVERLAST (GROUP) HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 18 -
Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities

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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

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

Derecognition of financial liabilities

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

EVERLAST (GROUP) HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 19 -
1.15
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.16
Taxation

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

Current tax

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

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.17
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.18
Retirement benefits

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

EVERLAST (GROUP) HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 20 -
1.19
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.20
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

EVERLAST (GROUP) HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 21 -
Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Depreciation

The depreciation policy has been set according to managements experience of the useful lives of a typical asset in each category, something which is reviewed annually. It is not considered practical to use a per unit basis to allocate depreciation without undue cost and therefore amounts are charged annually. The depreciation charge during the period was £282,245 which the directors feel is a fair reflection of the benefits derived from the consumption of the tangible fixed assets in use during the period.

Long term contracts

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

 

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

 

Where the outcome of a construction contract cannot be estimated reliably, contract costs are recognised as expenses in the period in which they are incurred and contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable.

Bad and doubtful debt provision

Outstanding trade debtor balances are reviewed on a line by line basis by management to identify possible amounts where a provision is required. Management closely manage the collection of trade debtors and therefore are able to identify balances where there is uncertainty about its recoverability, and determine what provision is required (if any).

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Roofing
30,109,598
36,827,126
Scaffolding
4,845,990
3,555,413
Cladding and Facades
11,273,843
9,060,797
46,229,431
49,443,336
2024
2023
£
£
Other revenue
Interest income
2,271
6,889
Grants received
12,816
17,366
EVERLAST (GROUP) HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 22 -
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses/(gains)
69
(109)
Government grants
(12,816)
(17,366)
Depreciation of owned tangible fixed assets
213,349
194,779
Depreciation of tangible fixed assets held under finance leases
68,896
30,590
Profit on disposal of tangible fixed assets
(21,503)
(3,297)
Amortisation of intangible assets
445,395
442,615
Operating lease charges
424,952
361,869
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
1,800
1,700
Audit of the financial statements of the company's subsidiaries
37,000
34,900
38,800
36,600
6
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Directors
10
4
4
4
Admin and support
74
67
-
-
Roofers and scaffolders
27
27
-
-
Total
111
98
4
4

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
3,488,182
3,279,484
-
0
-
0
Social security costs
428,190
429,770
-
-
Pension costs
165,775
169,213
-
0
-
0
4,082,147
3,878,467
-
0
-
0
EVERLAST (GROUP) HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 23 -
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
44,308
41,991
Company pension contributions to defined contribution schemes
64,241
17,455
108,549
59,446

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 8 (2023 - 2).

8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
2,271
6,889
9
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
395,987
208,425
Interest on finance leases and hire purchase contracts
24,905
16,808
Other interest
79,229
-
Total finance costs
500,121
225,233
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
1,475,912
1,327,311
Adjustments in respect of prior periods
12,498
-
0
Total current tax
1,488,410
1,327,311
Deferred tax
Origination and reversal of timing differences
105,000
(2,100)
Total tax charge
1,593,410
1,325,211
EVERLAST (GROUP) HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
10
Taxation
(Continued)
- 24 -

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

2024
2023
£
£
Profit before taxation
5,231,911
6,023,337
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.00%)
1,307,978
1,204,667
Tax effect of expenses that are not deductible in determining taxable profit
186,960
52,361
Amortisation on assets not qualifying for tax allowances
110,591
531
Under/(over) provided in prior years
12,498
-
0
Other
(24,617)
67,652
Taxation charge
1,593,410
1,325,211
11
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Interim paid
1,169,916
927,507
EVERLAST (GROUP) HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 25 -
12
Intangible fixed assets
Group
Goodwill
Software
Total
£
£
£
Cost
At 1 June 2023 and 31 May 2024
5,137,771
9,100
5,146,871
Amortisation and impairment
At 1 June 2023
2,066,553
253
2,066,806
Amortisation charged for the year
442,362
3,033
445,395
At 31 May 2024
2,508,915
3,286
2,512,201
Carrying amount
At 31 May 2024
2,628,856
5,814
2,634,670
At 31 May 2023
3,071,218
8,847
3,080,065
The company had no intangible fixed assets at 31 May 2024 or 31 May 2023.
13
Tangible fixed assets
Group
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 June 2023
860,780
548,633
657,662
2,067,075
Additions
545,457
278,248
66,057
889,762
Disposals
-
0
-
0
(78,497)
(78,497)
At 31 May 2024
1,406,237
826,881
645,222
2,878,340
Depreciation and impairment
At 1 June 2023
737,462
266,446
459,895
1,463,803
Depreciation charged in the year
83,277
115,732
83,236
282,245
Eliminated in respect of disposals
-
0
-
0
(61,789)
(61,789)
At 31 May 2024
820,739
382,178
481,342
1,684,259
Carrying amount
At 31 May 2024
585,498
444,703
163,880
1,194,081
At 31 May 2023
123,318
282,187
197,767
603,272
The company had no tangible fixed assets at 31 May 2024 or 31 May 2023.
EVERLAST (GROUP) HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
13
Tangible fixed assets
(Continued)
- 26 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2024
2023
2024
2023
£
£
£
£
Fixtures and fittings
213,009
220,632
-
0
-
0
Motor vehicles
17,396
84,012
-
0
-
0
230,405
304,644
-
-
14
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
13,065,000
13,065,000
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 June 2023 and 31 May 2024
13,065,000
Carrying amount
At 31 May 2024
13,065,000
At 31 May 2023
13,065,000
15
Subsidiaries

Details of the company's subsidiaries at 31 May 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Everlast (Group) Limited
England & Wales
Ordinary
100.00
-
Everlast Waterproofing Limited
England & Wales
Ordinary
-
100.00
Everlast Rail Limited
England & Wales
Ordinary
-
100.00
Everlast Scaffolding Limited
England & Wales
Ordinary
-
100.00
Everlast Specialist Surveys Limited
England & Wales
Ordinary
-
100.00
Under One Roofing Consultants Limited
England & Wales
Ordinary
-
100.00
Everlast Liquid Applied Limited
England & Wales
Ordinary
-
100.00
Everlast Facilities Management Limited
England & Wales
Ordinary
-
100.00
EVERLAST (GROUP) HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
15
Subsidiaries
(Continued)
- 27 -

The registered office address of each of the above subsidiaries is the same as the registered office address for this company.

Everlast (Group) Holdings Limited has, in accordance with S479C of the Companies Act 2006, provided a guarantee over the liabilities of its subsidiaries Everlast Specialist Surveys Limited (company registration number 04687441; registered in England & Wales) and Under One Roofing Consultants Limited (company registration number 13251145; registered in England & Wales) which permits the subsidiaries to not obtain an audit of its individual financial statements for the period ended 31 May 2024, in accordance with the exemptions conferred by S479A Companies Act 2006. The registered office of the subsidiaries is The School House, Parkfield Terrace, Stanningly, Pudsey, LS28 6BS.

16
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
10,692
10,692
-
-
Work in progress
700,176
284,564
-
-
710,868
295,256
-
-
17
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
8,646,181
6,240,532
-
0
-
0
Gross amounts owed by contract customers
4,989,512
4,379,551
-
0
-
0
Unpaid share capital
100
100
100
100
Corporation tax recoverable
-
0
3,633
-
0
-
0
Amounts owed by group undertakings
-
-
2,954,916
2,287,507
Other debtors
117,559
214,060
-
0
-
0
Prepayments and accrued income
37,862
25,999
-
0
-
0
13,791,214
10,863,875
2,955,016
2,287,607
Deferred tax asset (note 23)
31,000
31,000
-
0
-
0
13,822,214
10,894,875
2,955,016
2,287,607
Amounts falling due after more than one year:
Deferred tax asset (note 23)
5,500
5,500
-
0
-
0
Total debtors
13,827,714
10,900,375
2,955,016
2,287,607
EVERLAST (GROUP) HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 28 -
18
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
20
1,879,000
1,650,000
1,879,000
1,650,000
Obligations under finance leases
21
69,101
71,053
-
0
-
0
Trade creditors
5,714,832
3,826,580
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
12,645,367
10,352,908
Corporation tax payable
1,488,767
1,302,063
-
0
-
0
Other taxation and social security
1,260,988
1,184,545
-
-
Government grants
22
13,003
25,819
-
0
-
0
Other creditors
408,719
344,289
-
0
-
0
Accruals and deferred income
3,760,354
4,719,931
20,129
24,614
14,594,764
13,124,280
14,544,496
12,027,522

Obligations under finance leases are secured by the assets to which they relate.

19
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
20
1,283,500
3,162,500
1,283,500
3,162,500
Obligations under finance leases
21
130,534
198,636
-
0
-
0
1,414,034
3,361,136
1,283,500
3,162,500

Obligations under finance leases are secured by the assets to which they relate.

20
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
3,162,500
4,812,500
3,162,500
4,812,500
Payable within one year
1,879,000
1,650,000
1,879,000
1,650,000
Payable after one year
1,283,500
3,162,500
1,283,500
3,162,500

The loan is for a period of three years at an interest rate of 4.5% plus BoE base rate.

EVERLAST (GROUP) HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 29 -
21
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
85,440
93,189
-
0
-
0
In two to five years
147,217
233,629
-
0
-
0
232,657
326,818
-
-
Less: future finance charges
(33,022)
(57,129)
-
0
-
0
199,635
269,689
-
0
-
0

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

22
Government grants
Group
Company
2024
2023
2024
2023
£
£
£
£
Arising from government grants
13,003
25,819
-
-

The deferred income relates to the Leeds City Council 'Leeds Clean Air Zone Large grant'. The company has received £80,000 to purchase vehicles which must enter a clean air zone 5-7 days per week and the grant is to be released against the use of the assets.

23
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Group
£
£
£
£
Accelerated capital allowances
152,000
47,000
36,500
36,500
The company has no deferred tax assets or liabilities.
EVERLAST (GROUP) HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
23
Deferred taxation
(Continued)
- 30 -
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 June 2023
10,500
-
Charge to profit or loss
105,000
-
Liability at 31 May 2024
115,500
-

The deferred tax set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

24
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
165,775
169,213

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

25
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and not fully paid
Ordinary shares of £1 each
95
95
95
95
26
Operating lease commitments
Lessee

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

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
379,538
187,187
-
-
Between two and five years
1,011,849
909,757
-
-
In over five years
623,346
798,976
-
-
2,014,733
1,895,920
-
-
EVERLAST (GROUP) HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 31 -
27
Controlling party

In the opinion of the directors there is no controlling party.

 

28
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
3,638,501
4,698,126
Adjustments for:
Taxation charged
1,593,410
1,325,211
Finance costs
500,121
225,233
Investment income
(2,271)
(6,889)
Gain on disposal of tangible fixed assets
(21,503)
(3,297)
Amortisation and impairment of intangible assets
445,395
442,615
Depreciation and impairment of tangible fixed assets
282,245
225,369
Movements in working capital:
(Increase)/decrease in stocks
(415,612)
16,054
(Increase)/decrease in debtors
(2,930,972)
2,283,124
Increase/(decrease) in creditors
1,069,548
(8,632,628)
Decrease in deferred income
(12,816)
(12,816)
Cash generated from operations
4,146,046
560,102
29
Analysis of changes in net funds - group
1 June 2023
Cash flows
31 May 2024
£
£
£
Cash at bank and in hand
9,126,908
(1,391,398)
7,735,510
Borrowings excluding overdrafts
(4,812,500)
1,650,000
(3,162,500)
Obligations under finance leases
(269,689)
70,054
(199,635)
4,044,719
328,656
4,373,375
2024-05-312023-06-01falseCCH SoftwareCCH Accounts Production 2024.210Mr M D HunterMr J L CrossMr C H BottMr M A Buttreefalsefalse13208919bus:Consolidated2023-06-012024-05-31132089192023-06-012024-05-3113208919bus:Director12023-06-012024-05-3113208919bus:Director22023-06-012024-05-3113208919bus:Director32023-06-012024-05-3113208919bus:Director42023-06-012024-05-3113208919bus:RegisteredOffice2023-06-012024-05-3113208919bus:Consolidated2024-05-31132089192024-05-3113208919bus:Consolidated2022-06-012023-05-31132089192022-06-012023-05-3113208919core:Goodwillbus:Consolidated2024-05-3113208919core:Goodwillbus:Consolidated2023-05-3113208919core:OtherResidualIntangibleAssetsbus:Consolidated2024-05-3113208919core:OtherResidualIntangibleAssetsbus:Consolidated2023-05-3113208919core:ComputerSoftwarebus:Consolidated2024-05-3113208919core:ComputerSoftwarebus:Consolidated2023-05-3113208919bus:Consolidated2023-05-3113208919core:PlantMachinerybus:Consolidated2024-05-3113208919core:FurnitureFittingsbus:Consolidated2024-05-3113208919core:MotorVehiclesbus:Consolidated2024-05-3113208919core:PlantMachinerybus:Consolidated2023-05-3113208919core:FurnitureFittingsbus:Consolidated2023-05-3113208919core:MotorVehiclesbus:Consolidated2023-05-31132089192023-05-3113208919core:ShareCapitalbus:Consolidated2024-05-3113208919core:ShareCapitalbus:Consolidated2023-05-3113208919core:CapitalRedemptionReservebus:Consolidated2024-05-3113208919core:CapitalRedemptionReservebus:Consolidated2023-05-3113208919core:ShareCapital2024-05-3113208919core:ShareCapital2023-05-3113208919core:CapitalRedemptionReserve2024-05-3113208919core:CapitalRedemptionReserve2023-05-3113208919core:RetainedEarningsAccumulatedLosses2024-05-3113208919core:ShareCapitalbus:Consolidated2022-05-3113208919core:CapitalRedemptionReservebus:Consolidated2022-05-3113208919core:RetainedEarningsAccumulatedLossesbus:Consolidated2022-05-3113208919core:RetainedEarningsAccumulatedLossesbus:Consolidated2023-05-3113208919core:RetainedEarningsAccumulatedLossesbus:Consolidated2024-05-3113208919core:ShareCapital2022-05-3113208919core:CapitalRedemptionReserve2022-05-3113208919core:RetainedEarningsAccumulatedLosses2022-05-3113208919core:RetainedEarningsAccumulatedLosses2023-05-3113208919bus:Consolidated2022-05-3113208919core:Goodwill2023-06-012024-05-3113208919core:IntangibleAssetsOtherThanGoodwill2023-06-012024-05-3113208919core:ComputerSoftware2023-06-012024-05-3113208919core:PlantMachinery2023-06-012024-05-3113208919core:FurnitureFittings2023-06-012024-05-3113208919core:MotorVehicles2023-06-012024-05-3113208919core:UKTaxbus:Consolidated2023-06-012024-05-3113208919core:UKTaxbus:Consolidated2022-06-012023-05-3113208919bus:Consolidated12023-06-012024-05-3113208919bus:Consolidated12022-06-012023-05-3113208919bus:Consolidated22023-06-012024-05-3113208919bus:Consolidated22022-06-012023-05-3113208919bus:Consolidated32023-06-012024-05-3113208919bus:Consolidated32022-06-012023-05-3113208919core:Goodwillbus:Consolidated2023-05-3113208919core:ComputerSoftwarebus:Consolidated2023-05-3113208919bus:Consolidated2023-05-3113208919core:Goodwillbus:Consolidated2023-06-012024-05-3113208919core:ComputerSoftwarebus:Consolidated2023-06-012024-05-3113208919core:PlantMachinerybus:Consolidated2023-05-3113208919core:FurnitureFittingsbus:Consolidated2023-05-3113208919core:MotorVehiclesbus:Consolidated2023-05-3113208919core:PlantMachinerybus:Consolidated2023-06-012024-05-3113208919core:FurnitureFittingsbus:Consolidated2023-06-012024-05-3113208919core:MotorVehiclesbus:Consolidated2023-06-012024-05-3113208919core:FurnitureFittings2024-05-3113208919core:FurnitureFittings2023-05-3113208919core:MotorVehicles2024-05-3113208919core:MotorVehicles2023-05-3113208919core:Subsidiary12023-06-012024-05-3113208919core:Subsidiary22023-06-012024-05-3113208919core:Subsidiary32023-06-012024-05-3113208919core:Subsidiary42023-06-012024-05-3113208919core:Subsidiary52023-06-012024-05-3113208919core:Subsidiary62023-06-012024-05-3113208919core:Subsidiary72023-06-012024-05-3113208919core:Subsidiary82023-06-012024-05-311320891912023-06-012024-05-3113208919core:CurrentFinancialInstrumentsbus:Consolidated2024-05-3113208919core:CurrentFinancialInstrumentsbus:Consolidated2023-05-3113208919core:CurrentFinancialInstruments2024-05-3113208919core:CurrentFinancialInstruments2023-05-3113208919core:Non-currentFinancialInstrumentsbus:Consolidated2024-05-3113208919core:Non-currentFinancialInstrumentsbus:Consolidated2023-05-3113208919core:Non-currentFinancialInstruments2024-05-3113208919core:Non-currentFinancialInstruments2023-05-3113208919core:WithinOneYearbus:Consolidated2024-05-3113208919core:WithinOneYearbus:Consolidated2023-05-3113208919core:CurrentFinancialInstrumentscore:WithinOneYear2024-05-3113208919core:CurrentFinancialInstrumentscore:WithinOneYear2023-05-3113208919core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2024-05-3113208919core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2023-05-3113208919core:Non-currentFinancialInstrumentscore:AfterOneYear2024-05-3113208919core:Non-currentFinancialInstrumentscore:AfterOneYear2023-05-3113208919core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2024-05-3113208919core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2023-05-3113208919core:WithinOneYear2024-05-3113208919core:WithinOneYear2023-05-3113208919core:BetweenTwoFiveYearsbus:Consolidated2024-05-3113208919core:BetweenTwoFiveYearsbus:Consolidated2023-05-3113208919core:BetweenTwoFiveYears2024-05-3113208919core:BetweenTwoFiveYears2023-05-3113208919bus:PrivateLimitedCompanyLtd2023-06-012024-05-3113208919bus:FRS1022023-06-012024-05-3113208919bus:Audited2023-06-012024-05-3113208919bus:ConsolidatedGroupCompanyAccounts2023-06-012024-05-3113208919bus:FullAccounts2023-06-012024-05-31xbrli:purexbrli:sharesiso4217:GBP