REGISTERED NUMBER: 09619606 (England and Wales) |
ASHLEY KING GROUP LIMITED |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2024 |
REGISTERED NUMBER: 09619606 (England and Wales) |
ASHLEY KING GROUP LIMITED |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2024 |
ASHLEY KING GROUP LIMITED (REGISTERED NUMBER: 09619606) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 | to | 4 |
Report of the Directors | 5 |
Report of the Independent Auditors | 6 | to | 9 |
Consolidated Income Statement | 10 |
Consolidated Other Comprehensive Income | 11 |
Consolidated Statement of Financial Position | 12 |
Company Statement of Financial Position | 13 |
Consolidated Statement of Changes in Equity | 14 |
Company Statement of Changes in Equity | 15 |
Consolidated Statement of Cash Flows | 16 |
Notes to the Consolidated Statement of Cash Flows | 17 |
Notes to the Consolidated Financial Statements | 18 | to | 32 |
ASHLEY KING GROUP LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 30 JUNE 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Salisbury House |
Station Road |
Cambridge |
Cambridgeshire |
CB1 2LA |
BANKERS: | HSBC Bank Plc |
8 Market Place |
Spalding |
Lincolnshire |
PE11 1SN |
ASHLEY KING GROUP LIMITED (REGISTERED NUMBER: 09619606) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 30 JUNE 2024 |
The directors present their strategic report of the company and the group for the year ended 30 June 2024. |
REVIEW OF BUSINESS |
The directors aim to present a balanced and comprehensive review of the development and performance of the business during the year and its position at the year end. The review is consistent with the size and nature of the business. |
The group's main focus of activity has been the construction and sale of new homes through the 'Ashwood Homes' brand. The group is also involved in a more diverse range of activities including both commercial and affordable housing developments. |
We consider that our key financial performance indicators are those that communicate the financial performance and strength of the group as a whole, these being revenue, gross profit and profit before tax and exceptional items. |
2024 | 2023 | 2022 | 2021 | 2020 |
Revenue | £36,515,623 | £57,837,077 | £57,636,827 | £54,710,862 | £38,113,090 |
Gross profit | £5,478,906 | £9,236,023 | £14,888,392 | £8,328,474 | £8,460,526 |
Gross profit % | 15.00% | 15.97% | 25.83% | 15.22% | 22.20% |
Profit before tax and | £2,027,250 | £5,806,804 | £11,374,519 | £5,485,634 | £5,327,706 |
exceptional items |
In the face of severely challenging economic conditions revenue and profit have decreased during the year to 30th June 2024. The principal reason for this has been the significant decrease in demand for new houses caused by interest rate rises and the increased cost of living. Despite this the group has remained profitable. |
The group's focus on high specification developments with a quality build is helping it to form an enviable reputation with high levels of customer satisfaction. The professional customer service team also plays no small part in this on-going success. |
Gross profit has decreased by £3,757,117 from £9,236,023 to £5,478,906 and a lower gross profit margin of 15.00%, down from 15.97% in 2023. Cost pressures associated with the reduced levels of demand contributed to holding the core housing gross profit margin below 20%. |
Taking these factors into account, the underlying trading performance remains very healthy. The directors are pleased considering the challenges that the last 12 months has brought and have confidence in the increased land bank to continue to deliver the group's targets. |
Profit before tax and exceptional items has decreased by £3,779,554 from £5,806,804 to £2,027,250. This reflects the stability of the business in the face of the continuing economic turbulence and uncertainties. |
In the current year, there continues to be some cost pressures in relation to material and labour costs, but due to its proactive sales approach, good cost and operational control the group has continued to achieve healthy gross profit margins. There are signs that demand levels are starting to improve, and the company is well placed to deal with this. |
Overall, the directors are pleased with the results for the year and are confident of the future. There will undoubtedly be further challenges and uncertainties, such as the longer-term impact of both Brexit and interest rate uncertainty on the housing market. The group is however in a favourable position with a significant land bank and plots with planning permission that will allow current activity to be maintained into the coming year and beyond. |
The group continues to identify new land for future development. Our flagship 1,000 home project in Holbeach is fully operational and producing completions, giving the business security for the future. There are also a number of new sites coming on stream in the next year as part of our overall 9-year supply of land. |
ASHLEY KING GROUP LIMITED (REGISTERED NUMBER: 09619606) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 30 JUNE 2024 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The main risks arising from the group's activities and the Board's policies for managing these risks are summarised below. |
Liquidity risk |
The group seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. Short term flexibility is achieved by revolving credit facilities. |
Interest rate risk |
The group finances its operations through a combination of bank borrowings, hire purchase, group loans and director financing loans. The group's exposure to interest rate fluctuations on its borrowings is managed by the use of both fixed and variable rate facilities. Interest on group loans and director financing loans is discretionary. |
Government housing policy |
Government housing policies have the ability to impact the market in both the short and long-term. Assistance to buyers through schemes such as Help to Buy have provided considerable support to buyers and following the withdrawal of the scheme and changes to stamp duty thresholds, we are monitoring the impact on our markets. We are constantly monitoring current commentary relating to future government policy and maintaining contact with current thinking through industry platforms and contacts. |
Economic conditions |
The health of the economy at local and national level, and any deterioration in it, will potentially have an impact on demand and selling prices for new homes. Revenue, profit and cash flow could be adversely affected. Current economic data is monitored to identify any potential triggers for a deterioration in market conditions, allowing the to group set build rates and plot releases as close as possible to anticipated demand levels. The group's level of gearing and cash reserves are also monitored as part of its liquidity risk assessment to ensure borrowing levels are manageable in the event of a sudden downturn. |
Impact of Brexit |
There has been a considerable degree of uncertainty with regard to Brexit over the last five years. The situation in early 2025 remains somewhat uncertain, with pressure now being felt in supply chain and logistics, resulting in increased material prices, longer lead times and most recently signs of an economy wide increase in inflation. The longer-term impact of Brexit remains uncertain, but the group manages this risk by monitoring the Government's Brexit preparations closely and assessing any potential impact on both the housing market and the company. |
Mortgage regulation |
The housing market is dependent on homeowners' ability to borrow money to buy homes. Any changes in regulations, money supply or interest rates may affect that ability with potential impact on revenue, profit and cash flow. This risk is managed by monitoring current commentary relating to finance and assessing its impact on levels of construction activity. |
Price risk |
Material and labour supply demands will vary according to overall levels of house building activity. Increased activity can lead to cost increases. |
Currency and credit risks |
Due to the nature of the financial instruments used by the group there is no exposure to currency risk and minimal exposure to credit risk with new homes being released on full payment of the asking price. |
Environmental |
The group is aware of its environmental responsibilities and of its carbon footprint and is starting to look in some detail at its impact on the community and the environment. Our fleet of company cars are all 100% electric with chargers installed at both the company's head office and the EV user's homes. |
We also continue to assess and implement new technologies in order to make the homes we build more energy efficient and lower our carbon footprint, through small changes such as using LED lights to replacing gas boilers with thermal heating pumps. |
ASHLEY KING GROUP LIMITED (REGISTERED NUMBER: 09619606) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 30 JUNE 2024 |
SECTION 172(1) STATEMENT |
The directors set out their compliance statement in accordance with S172(1) of the Companies Act 2006. |
The directors' key objective in decision making is to ensure the short and long term success of all business related activities. This promotes the sustainable growth of the business, to the benefit of all involved stakeholders, including customers and suppliers. |
Consideration is also given to the impact of any such decisions on the welfare of the group's employees, to ensure that decisions are made equitably, in their best interests. The directors are committed to providing a working environment that promotes the long term well-being of all employees, whilst enhancing their performance and potential. |
The group is mindful of its environmental and community responsibility, and sets a high standard of conduct for both employees and suppliers to follow. The directors set high standards of ethical behaviour to promote the reputation of the group both in its operating area and across the wider housebuilding industry. |
ENERGY AND EMISSIONS REPORT |
Year ended 30th June: | 2024 | 2023 |
UK energy use (kWh) | 178,757 | 225,872 |
Associated greenhouse gas emissions (tonnes CO2 equivalent). Being: | 42.3 | 54.6 |
- Scope 1 | 31.1 | 43.6 |
- Scope 2 | 11.2 | 11.0 |
Intensity ratio (tonnes CO2 per employee) | 0.7 | 0.9 |
UK energy use |
This covers the group's management and administrative functions for all entities. |
Quantification and reporting methodology |
We have followed the 2019 HM Government Environmental Reporting guidelines. We have also used the GHG Reporting Protocol - Corporate standards and have used the 2023 UK Government's conversion factors for company reporting. |
Measures taken to improve energy efficiency |
- Use of electric vehicles |
- LED office lighting with PIR controls |
- Lower travel and use of technology for both internal and external meetings |
ON BEHALF OF THE BOARD: |
ASHLEY KING GROUP LIMITED (REGISTERED NUMBER: 09619606) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 JUNE 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 30 June 2024. |
DIVIDENDS |
No dividends will be distributed for the year ended 30 June 2024. |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 July 2023 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ASHLEY KING GROUP LIMITED |
Opinion |
We have audited the financial statements of Ashley King Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, Notes to the Financial Statements, 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, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 30 June 2024 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 the 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 directors are responsible for the other information. The other information comprises the information in the Group 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. |
The other information comprises the information included in the Annual Report other than the financial |
statements and our Auditors' 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ASHLEY KING GROUP LIMITED |
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 Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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 necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ASHLEY KING GROUP LIMITED |
Auditors' 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 a Report of the Auditors 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: |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
- we identified the laws and regulations applicable to the Group and the parent Company through discussions with directors and other management, and from our commercial knowledge and experience of the housebreaking sector; |
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, and health and safety legislation; |
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting correspondence available: and |
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
We assessed the susceptibility of the Group and the parent Company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; |
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and |
To address the risk of fraud through management bias and override of controls, we; |
- performed analytical procedures to identify any unusual or unexpected relationships; |
- tested journal entries to identify unusual transactions; |
- assessed whether judgements and assumptions made in determining the accounting estimates set out in note 2 were indicative of potential bias; and |
- investigated the rationale behind significant or unusual transactions; |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- agreeing financial statement disclosures to underlying supporting documentation; |
- enquiring of management as to actual and potential litigation and claims; and |
- reviewing correspondence made available to us such as correspondence with HMRC, relevant regulators and the company's legal advisors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ASHLEY KING GROUP LIMITED |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
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 a Report of the Auditors 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. |
for and on behalf of |
Salisbury House |
Station Road |
Cambridge |
Cambridgeshire |
CB1 2LA |
ASHLEY KING GROUP LIMITED (REGISTERED NUMBER: 09619606) |
CONSOLIDATED INCOME STATEMENT |
FOR THE YEAR ENDED 30 JUNE 2024 |
2024 | 2023 |
Notes | £ | £ |
REVENUE | 3 | 36,515,623 | 57,837,077 |
Cost of sales | 31,036,717 | 48,601,054 |
GROSS PROFIT | 5,478,906 | 9,236,023 |
Administrative expenses | 2,734,949 | 3,546,975 |
2,743,957 | 5,689,048 |
Other operating income | 147,418 | 367,477 |
OPERATING PROFIT | 5 | 2,891,375 | 6,056,525 |
Loans forgiven | 6 | 15,030 | - |
Profit/loss on sale of investments | 6 | 2,747,188 | 9,426,569 |
5,653,593 | 15,483,094 |
Interest receivable and similar income | 123,227 | 775,510 |
5,776,820 | 16,258,604 |
Interest payable and similar expenses | 7 | 987,352 | 1,025,231 |
PROFIT BEFORE TAXATION | 4,789,468 | 15,233,373 |
Tax on profit | 8 | 613,399 | 1,519,802 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 4,151,481 | 13,676,111 |
Non-controlling interests | 24,588 | 37,460 |
4,176,069 | 13,713,571 |
ASHLEY KING GROUP LIMITED (REGISTERED NUMBER: 09619606) |
CONSOLIDATED OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 30 JUNE 2024 |
2024 | 2023 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 4,176,069 | 13,713,571 |
OTHER COMPREHENSIVE INCOME |
Revaluation on sale of stock intra-group | 11,152 | - |
Income tax relating to other comprehensive income |
(25,256 |
) |
- |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
(14,104 |
) |
- |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR | 4,161,965 | 13,713,571 |
Total comprehensive income attributable to: |
Owners of the parent | 4,137,377 | 13,676,111 |
Non-controlling interests | 24,588 | 37,460 |
4,161,965 | 13,713,571 |
ASHLEY KING GROUP LIMITED (REGISTERED NUMBER: 09619606) |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
30 JUNE 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 | 179,348 | 269,020 |
Property, plant and equipment | 12 | 2,371,591 | 3,517,847 |
Investments | 13 | 285,733 | 285,733 |
Investment property | 14 | 1,931,460 | 2,020,116 |
4,768,132 | 6,092,716 |
CURRENT ASSETS |
Inventories | 15 | 57,109,931 | 58,542,732 |
Debtors | 16 | 2,431,459 | 4,239,221 |
Cash at bank | 4,031,993 | 7,317,440 |
63,573,383 | 70,099,393 |
CREDITORS |
Amounts falling due within one year | 17 | 16,783,058 | 23,692,660 |
NET CURRENT ASSETS | 46,790,325 | 46,406,733 |
TOTAL ASSETS LESS CURRENT LIABILITIES | 51,558,457 | 52,499,449 |
CREDITORS |
Amounts falling due after more than one year | 18 | (1,355,354 | ) | (90,350 | ) |
PROVISIONS FOR LIABILITIES | 23 | (492,776 | ) | (860,737 | ) |
NET ASSETS | 49,710,327 | 51,548,362 |
CAPITAL AND RESERVES |
Called up share capital | 24 | 510,000 | 6,510,000 |
Revaluation reserve | 25 | 824,937 | 1,921,071 |
Merger reserve | 25 | (4,683,899 | ) | (6,852,501 | ) |
Retained earnings | 25 | 52,902,066 | 49,837,157 |
SHAREHOLDERS' FUNDS | 49,553,104 | 51,415,727 |
NON-CONTROLLING INTERESTS | 26 | 157,223 | 132,635 |
TOTAL EQUITY | 49,710,327 | 51,548,362 |
The financial statements were approved by the Board of Directors and authorised for issue on 12 February 2025 and were signed on its behalf by: |
A J King - Director |
ASHLEY KING GROUP LIMITED (REGISTERED NUMBER: 09619606) |
COMPANY STATEMENT OF FINANCIAL POSITION |
30 JUNE 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 |
Property, plant and equipment | 12 |
Investments | 13 |
Investment property | 14 |
CURRENT ASSETS |
Debtors | 16 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 17 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 24 |
Retained earnings |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 8,234,768 | 16,351,570 |
The financial statements were approved by the Board of Directors and authorised for issue on |
ASHLEY KING GROUP LIMITED (REGISTERED NUMBER: 09619606) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 JUNE 2024 |
Called up |
share | Retained | Revaluation |
capital | earnings | reserve |
£ | £ | £ |
Balance at 1 July 2022 | 6,510,000 | 30,327,889 | 4,236,032 |
Changes in equity |
Dividends | - | (60,000 | ) | - |
Total comprehensive income | - | 13,676,111 | - |
Deferred tax | - | (407,000 | ) | - |
Revaluation transfer | - | 6,300,157 | (6,300,157 | ) |
Disposal of subsidiary company | - | - | 3,985,196 |
Balance at 30 June 2023 | 6,510,000 | 49,837,157 | 1,921,071 |
Changes in equity |
Redemption of shares | (6,000,000 | ) | - | - |
Total comprehensive income | - | 3,064,909 | (1,096,134 | ) |
Balance at 30 June 2024 | 510,000 | 52,902,066 | 824,937 |
Merger | Non-controlling | Total |
reserve | Total | interests | equity |
£ | £ | £ | £ |
Balance at 1 July 2022 | 3,298,910 | 44,372,831 | 95,175 | 44,468,006 |
Changes in equity |
Dividends | - | (60,000 | ) | - | (60,000 | ) |
Total comprehensive income | - | 13,676,111 | 37,460 | 13,713,571 |
Deferred tax | - | (407,000 | ) | - | (407,000 | ) |
Disposal of subsidiary company | (10,151,411 | ) | (6,166,215 | ) | - | (6,166,215 | ) |
Balance at 30 June 2023 | (6,852,501 | ) | 51,415,727 | 132,635 | 51,548,362 |
Changes in equity |
Redemption of shares | - | (6,000,000 | ) | - | (6,000,000 | ) |
Total comprehensive income | 2,168,602 | 4,137,377 | 24,588 | 4,161,965 |
Balance at 30 June 2024 | (4,683,899 | ) | 49,553,104 | 157,223 | 49,710,327 |
ASHLEY KING GROUP LIMITED (REGISTERED NUMBER: 09619606) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 JUNE 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 July 2022 | ( |
) |
Changes in equity |
Capital contribution | - | (2,625,814 | ) | (2,625,814 | ) |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 30 June 2023 |
Changes in equity |
Redemption of shares | (6,000,000 | ) | - | (6,000,000 | ) |
Total comprehensive income | - |
Balance at 30 June 2024 |
ASHLEY KING GROUP LIMITED (REGISTERED NUMBER: 09619606) |
CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 30 JUNE 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 2,977,152 | (6,575,571 | ) |
Interest element of hire purchase payments paid | (10,511 | ) | (16,328 | ) |
Tax paid | (1,513,988 | ) | (2,803,504 | ) |
Net cash from operating activities | 1,452,653 | (9,395,403 | ) |
Cash flows from investing activities |
Purchase of tangible fixed assets | (1,775,411 | ) | (825,898 | ) |
Purchase of fixed asset investments | - | (60,733 | ) |
Sale of tangible fixed assets | 36,140 | 981,450 |
Sale of investment property | 223,993 | 414,940 |
Sale of subsidiaries | 4,875,501 | 14,139,215 |
Cash disposed with subsidiary | (11,410 | ) | (3,925 | ) |
Interest received | 123,227 | 775,510 |
Net cash from investing activities | 3,472,040 | 15,420,559 |
Cash flows from financing activities |
New capital loans in year | 7,951,933 | 22,147,188 |
Loan capital repayments | (11,552,469 | ) | (21,583,402 | ) |
Bank loan interest | (976,841 | ) | (1,008,903 | ) |
HP repayments in year | (178,583 | ) | (38,760 | ) |
Amount introduced by directors | 10,676,183 | 6,422 |
Amount withdrawn by directors | (8,130,363 | ) | (5,393,315 | ) |
Preference shares redeemed | (6,000,000 | ) | - |
Equity dividends paid | - | (60,000 | ) |
Net cash from financing activities | (8,210,140 | ) | (5,930,770 | ) |
(Decrease)/increase in cash and cash equivalents | (3,285,447 | ) | 94,386 |
Cash and cash equivalents at beginning of year | 2 | 7,317,440 | 7,223,054 |
Cash and cash equivalents at end of year | 2 | 4,031,993 | 7,317,440 |
ASHLEY KING GROUP LIMITED (REGISTERED NUMBER: 09619606) |
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 30 JUNE 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation | 4,789,468 | 15,233,373 |
Depreciation charges | 485,196 | 497,946 |
Profit on disposal of fixed assets | (30,881 | ) | (210,767 | ) |
Loss on revaluation of fixed assets | 11,152 | - |
Profit on sale of subsidiary | (2,747,188 | ) | (9,426,569 | ) |
Loan forgiven | (15,030 | ) | - |
Finance costs | 987,352 | 1,025,231 |
Finance income | (123,227 | ) | (775,510 | ) |
3,356,842 | 6,343,704 |
Decrease/(increase) in inventories | 1,131,384 | (4,573,478 | ) |
Increase in trade and other debtors | (651,665 | ) | (8,267,620 | ) |
Decrease in trade and other creditors | (859,409 | ) | (78,177 | ) |
Cash generated from operations | 2,977,152 | (6,575,571 | ) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 30 June 2024 |
30.6.24 | 1.7.23 |
£ | £ |
Cash and cash equivalents | 4,031,993 | 7,317,440 |
Year ended 30 June 2023 |
30.6.23 | 1.7.22 |
£ | £ |
Cash and cash equivalents | 7,317,440 | 7,223,054 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.7.23 | Cash flow | At 30.6.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 7,317,440 | (3,285,447 | ) | 4,031,993 |
7,317,440 | (3,285,447 | ) | 4,031,993 |
Debt |
Finance leases | (271,203 | ) | 178,583 | (92,620 | ) |
Debts falling due within 1 year | (12,608,144 | ) | 3,600,537 | (9,007,607 | ) |
(12,879,347 | ) | 3,779,120 | (9,100,227 | ) |
Total | (5,561,907 | ) | 493,673 | (5,068,234 | ) |
ASHLEY KING GROUP LIMITED (REGISTERED NUMBER: 09619606) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2024 |
1. | STATUTORY INFORMATION |
Ashley King Group Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The parent company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland': |
- | the requirements of Section 7 Statement of Cash Flows |
- |
the requirements of Section 11 Financial Instruments paragraphs 11.41(b), 11.41(c), 11.41(e), 11.41(f), 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c) |
- | the requirements of Section 12 Other Financial Instruments paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A |
These disclosures are incorporated within these consolidated financial statements. |
Basis of consolidation |
The consolidated accounts comprise those of Ashley King Group Limited and its subsidiaries for the year ended 30 June 2024. The consolidation has been accounted for using the merger accounting method with the exception of the Pinkswan Limited acquisition which was accounted for under the equity method. |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
Significant judgements and estimates |
In the application of the group's accounting policies, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. |
The key source of estimation uncertainty that has a significant effect on the amounts recognised in the financial statements is described below: |
Work in progress/cost of sales |
The group recognises costs in the profit and loss account based on the expected margin after considering the total costs for each site. |
ASHLEY KING GROUP LIMITED (REGISTERED NUMBER: 09619606) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
2. | ACCOUNTING POLICIES - continued |
Revenue |
Revenue from house sales is recognised on completion. |
Crop sales are recognised on despatch from the farm or off-site storage to the customer. |
Seasonal land income is recognised in the period to which it relates. |
Revenue from long-term construction contracts is recognised when the outcome can be reliably estimated. |
Revenue from consultancy and other services is recognised in the period to which it relates. |
Goodwill |
Goodwill is being amortised on a straight line basis over 10 years as the useful economic life cannot be reliably measured. This is because the end of the economic life of the goodwill will end only when the principal asset of the company acquired is sold. The date of a potential sale is uncertain and therefore the goodwill is amortised in accordance with FRS 102 19.23. |
Property, plant & equipment |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life to the group. |
Freehold property | - 5% on cost on certain buildings |
Plant and machinery | - 25% on cost and 20% on reducing balance |
Fixtures and fittings | - 25% on cost and 20% on reducing balance |
Motor vehicles | - 25% on cost |
Freehold property is recognised under the revaluation model. All other fixed assets are recognised at cost less accumulated depreciation and impairment losses. |
Investment property |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
Inventories |
Inventories comprise units in the course of construction and currently held for sale. Cost is measured as the cost of materials used, plus staff and other costs directly attributable to bringing the stock to its current condition. |
Raw materials and work in progress are valued at the lower of cost and fair value less costs to complete and sell after making due allowance for slow moving and obsolete items. |
Cost includes all direct expenditure and an appropriate proportion of fixed and variable overheads. |
Inventories comprises the costs of growing crops in the ground including cultivations, seed/plants, fertilisers and sprays applied as professionally valued by Brown & Co, Chartered Surveyors, at the lower of cost and fair value less costs to complete and sell. |
ASHLEY KING GROUP LIMITED (REGISTERED NUMBER: 09619606) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
Basic financial assets, including trade and other debtors and cash and bank balances are initially recognised at transaction price, 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. |
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss. |
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. |
Such assets are subsequently carried at fair value and the changes in fair value are recognised in the profit and loss account, except that investments in equity instruments that are not publically traded and whose fair values cannot be measured reliably are measured at cost less impairment. |
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. |
Basic financial liabilities, including trade and other 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. |
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. Accounts 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. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts are capitalised in the statement of financial position. Those held under hire purchase contracts are depreciated over the estimated useful lives. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
ASHLEY KING GROUP LIMITED (REGISTERED NUMBER: 09619606) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
2. | ACCOUNTING POLICIES - continued |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Fixed asset investments are stated at cost less provision for diminution in value. |
There was a re-statement of the cashflow statement comparative figures for 2023. This included the 'increase in trade and other debtors' moving from £10,285,427 to £8,267,620 and 'Bank loan interest' moving from £1,008,903 to -£1,008,903. |
3. | REVENUE |
The revenue and profit before taxation are attributable to the one principal activity of the group. |
An analysis of revenue by class of business is given below: |
2024 | 2023 |
£ | £ |
House sales | 35,791,054 | 53,522,540 |
Farming | - | 1,890,033 |
Land sales | 450,000 | 2,200,000 |
Ground maintenance | 17,243 | 9,442 |
Rent received | 141,960 | 10,710 |
Equipment hire | - | 387 |
Consultancy and other services | 115,366 | 203,965 |
36,515,623 | 57,837,077 |
4. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 1,295,096 | 1,452,885 |
Social security costs | 144,205 | 174,049 |
Other pension costs | 76,558 | 77,650 |
1,515,859 | 1,704,584 |
The average number of employees during the year was as follows: |
2024 | 2023 |
Management | 5 | 5 |
Administration | 55 | 61 |
2024 | 2023 |
£ | £ |
Directors' remuneration | 20,000 | 20,000 |
ASHLEY KING GROUP LIMITED (REGISTERED NUMBER: 09619606) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Hire of plant and machinery | 18,713 | 22,059 |
Depreciation - owned assets | 395,523 | 408,271 |
(Profit)/loss on disposal of fixed assets | (15,544 | ) | 210,767 |
Goodwill amortisation | 89,672 | 89,672 |
Auditors' remuneration | 15,126 | 12,600 |
Auditors' remuneration - audit of subsidiaries | 26,003 | 22,760 |
6. | EXCEPTIONAL ITEMS |
2024 | 2023 |
£ | £ |
Loans forgiven | 15,030 | - |
Profit/loss on sale of investments | 2,747,188 | 9,426,569 |
2,762,218 | 9,426,569 |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Bank loan interest | 966,743 | 742,317 |
Interest on taxation | 9,197 | 39,787 |
Mortgage interest | - | 167,249 |
Interest payable | - | 17 |
CBILS interest paid | 901 | 59,533 |
Hire purchase interest | 10,511 | 16,328 |
987,352 | 1,025,231 |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax | 583,100 | 1,363,827 |
Adjustment re previous years | 16,516 | (30 | ) |
Total current tax | 599,616 | 1,363,797 |
Deferred tax | 13,783 | 156,005 |
Tax on profit | 613,399 | 1,519,802 |
ASHLEY KING GROUP LIMITED (REGISTERED NUMBER: 09619606) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
8. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax | 4,789,468 | 15,233,373 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 20.495 %) |
1,197,367 |
3,122,080 |
Effects of: |
Expenses not deductible for tax purposes | 612,979 | 110,546 |
Capital allowances in excess of depreciation | (8,255 | ) | - |
Depreciation in excess of capital allowances | - | 115,839 |
Adjustments to tax charge in respect of previous periods | 16,516 | (30 | ) |
Losses not utilised | 9,033 | 7,204 |
Other | (27,027 | ) | 50,470 |
Chargeable gain | 35,418 | 56,305 |
Profit on sale of investment | (1,218,875 | ) | (1,931,975 | ) |
Change in tax rate | - | (10,637 | ) |
Loan forgiven | (3,757 | ) | - |
Total tax charge | 613,399 | 1,519,802 |
Tax effects relating to effects of other comprehensive income |
2024 |
Gross | Tax | Net |
£ | £ | £ |
Revaluation on sale of stock intra-group | 11,152 | - | 11,152 |
9. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
10. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Ordinary A shares of £1 each |
Interim | - | 60,000 |
ASHLEY KING GROUP LIMITED (REGISTERED NUMBER: 09619606) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
11. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 July 2023 |
and 30 June 2024 | 896,724 |
AMORTISATION |
At 1 July 2023 | 627,704 |
Amortisation for year | 89,672 |
At 30 June 2024 | 717,376 |
NET BOOK VALUE |
At 30 June 2024 | 179,348 |
At 30 June 2023 | 269,020 |
12. | PROPERTY, PLANT AND EQUIPMENT |
Group |
Fixtures |
Freehold | Plant and | and | Motor |
property | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST OR VALUATION |
At 1 July 2023 | 252,223 | 3,420,388 | 146,290 | 555,165 | 4,374,066 |
Additions | - | 1,702,398 | 25,277 | 47,736 | 1,775,411 |
Disposals | (2,505,548 | ) | - | - | (73,363 | ) | (2,578,911 | ) |
Reclassification/transfer | 2,505,548 | (2,505,548 | ) | - | - | - |
At 30 June 2024 | 252,223 | 2,617,238 | 171,567 | 529,538 | 3,570,566 |
DEPRECIATION |
At 1 July 2023 | 37,611 | 385,272 | 134,821 | 298,515 | 856,219 |
Charge for year | 12,611 | 243,417 | 13,562 | 125,933 | 395,523 |
Eliminated on disposal | - | - | - | (52,767 | ) | (52,767 | ) |
At 30 June 2024 | 50,222 | 628,689 | 148,383 | 371,681 | 1,198,975 |
NET BOOK VALUE |
At 30 June 2024 | 202,001 | 1,988,549 | 23,184 | 157,857 | 2,371,591 |
At 30 June 2023 | 214,612 | 3,035,116 | 11,469 | 256,650 | 3,517,847 |
Cost or valuation at 30 June 2024 is represented by: |
Fixtures |
Freehold | Plant and | and | Motor |
property | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
Cost | 252,223 | 2,617,238 | 171,567 | 529,538 | 3,570,566 |
The directors do not deem the valuation of freehold property to be materially different from depreciated cost. |
Included within plant and machinery and motor vehicles are assets with a net book value of £170,625 (2023 - £228,116) that are held under hire purchase agreements. |
ASHLEY KING GROUP LIMITED (REGISTERED NUMBER: 09619606) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
13. | FIXED ASSET INVESTMENTS |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Shares in group undertakings | - | - |
Other investments not loans | 60,733 | 60,733 |
Other loans | 225,000 | 225,000 |
285,733 | 285,733 |
Additional information is as follows: |
Group |
Unlisted |
investments |
£ |
COST |
At 1 July 2023 |
and 30 June 2024 | 60,733 |
NET BOOK VALUE |
At 30 June 2024 | 60,733 |
At 30 June 2023 | 60,733 |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 July 2023 |
Additions |
Disposals | ( |
) |
At 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
At 30 June 2023 |
Group |
Other |
loans |
£ |
At 1 July 2023 |
and 30 June 2024 | 225,000 |
Company |
Other |
loans |
£ |
At 1 July 2023 |
and 30 June 2024 |
ASHLEY KING GROUP LIMITED (REGISTERED NUMBER: 09619606) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
13. | FIXED ASSET INVESTMENTS - continued |
The company has the following subsidiary undertakings: |
Subsidiaries |
Name | Shares held |
Type | % |
Wilderness Resources Limited*** | Ordinary | 100 |
Ashley King (Developments) Limited** | Ordinary | 100 |
Ashwood Homes Limited | Ordinary | 99 |
Preference | 100 |
Gold Duck Limited* | Ordinary | 100 |
Pinkswan Limited* | Ordinary | 100 |
King Group (East Anglia) Limited* | Ordinary | 100 |
Tallsteed Limited*** | Ordinary | 100 |
Saxondune Limited*** | Ordinary | 100 |
Courtscreen Limited*** | Ordinary | 100 |
Gateway South Management Limited* | Ordinary | 60 |
King Bros. (Butchers) Limited* | Ordinary | 100 |
Tudor Homes (Anglia) Limited* | Ordinary | 100 |
Sub-subsidiaries |
Name | Shares held |
Type | % |
Ashwood Homes Contracting Limited* | Ordinary | 99 |
All of the above companies have their registered office at 1 Goodison Road, Lincs Gateway Business Park, Spalding, Lincolnshire, England, PE12 6FY. |
Moulton Seas End Farm was sold during the year for £5,012,011 to an external buyer. |
Viewcliff Limited, Helmguard Limited and Marbleshield Limited were dissolved during the year. |
* These companies have taken advantage of s479A of the Companies Act 2006 to dispense with the need to have an audit. In order to qualify for this exemption, Ashley King Group Limited has provided a guarantee under this section of the Act. |
** This company is exempt from audit as it is dormant under s480 of the Companies Act 2006. |
*** These companies were dissolved after the statement of financial position date. |
14. | INVESTMENT PROPERTY |
Group |
Total |
£ |
FAIR VALUE |
At 1 July 2023 | 2,020,116 |
Disposals | (208,656 | ) |
Reclassification/transfer | 120,000 |
At 30 June 2024 | 1,931,460 |
NET BOOK VALUE |
At 30 June 2024 | 1,931,460 |
At 30 June 2023 | 2,020,116 |
Included in fair value of investment property is freehold land of £1,645,025 (2023 - £1,853,681) which is not depreciated. |
ASHLEY KING GROUP LIMITED (REGISTERED NUMBER: 09619606) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
14. | INVESTMENT PROPERTY - continued |
Group |
Investment property was subject to valuation by the director who is not a qualified valuer. The valuation is on an open market basis and the methods and assumptions used to ascertain the fair value are set out below. |
The valuation was prepared having regard to the market based evidence for similar properties sold in the local area, subject to occupational leases where applicable. This included reference to recent transactions in similar property by other group entities. |
15. | INVENTORIES |
Group |
2024 | 2023 |
£ | £ |
Raw materials | 2,312,508 | 3,101,341 |
Work-in-progress | 54,797,423 | 55,441,391 |
57,109,931 | 58,542,732 |
16. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Trade debtors | 453,739 | 241,724 |
Amounts owed by group undertakings | - | - |
Other debtors | 1,757,865 | 1,383,676 |
Directors' current accounts | - | 2,428,890 |
Prepayments and accrued income | 219,855 | 184,931 |
2,431,459 | 4,239,221 |
17. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans (see note 19) | 9,007,607 | 12,608,144 |
Hire purchase contracts (see note 20) | 92,620 | 180,853 |
Trade creditors | 4,475,850 | 6,385,231 |
Taxation | 304,511 | 1,225,542 |
Other taxes and social security | 390,836 | 454,035 |
Other creditors | 875,676 | 2,372,020 |
Directors' current accounts | 116,930 | - | - | - |
Accruals and deferred income | 1,519,028 | 466,835 |
16,783,058 | 23,692,660 |
18. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2024 | 2023 |
£ | £ |
Hire purchase contracts (see note 20) | - | 90,350 |
Accruals and deferred income | 1,355,354 | - |
1,355,354 | 90,350 |
ASHLEY KING GROUP LIMITED (REGISTERED NUMBER: 09619606) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
19. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
2024 | 2023 |
£ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | 9,007,607 | 12,608,144 |
Bank loans are utilised to fund land acquisition and development costs. Repayments are made in respect of individual plot sales as they are completed. Bank borrowings are provided on the bank's normal commercial terms. |
20. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2024 | 2023 |
£ | £ |
Net obligations repayable: |
Within one year | 92,620 | 180,853 |
Between one and five years | - | 90,350 |
92,620 | 271,203 |
The hire purchase contracts relate to a number of specialist machines for the construction and farming industries. The remaining lease terms range from one to four years. At the end of the lease, title of the assets passes to the group for a nominal fee. |
Group |
Non-cancellable operating | leases |
2024 | 2023 |
£ | £ |
Within one year | 295,795 | 191,454 |
Between one and five years | 553,828 | 618,443 |
In more than five years | 385,527 | 479,027 |
1,235,150 | 1,288,924 |
21. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2024 | 2023 |
£ | £ |
Bank loans | 9,007,607 | 12,608,144 |
Hire purchase contracts | 92,620 | 271,203 |
9,100,227 | 12,879,347 |
The bank loans are secured by fixed and floating charges over the group's assets. |
The hire purchase liabilities are secured on the assets to which they relate. |
ASHLEY KING GROUP LIMITED (REGISTERED NUMBER: 09619606) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
22. | FINANCIAL INSTRUMENTS |
The group has the following financial instruments: |
2024 | 2023 |
£ | £ |
Financial assets that are debt instruments measured at amortised cost |
Fixed asset investment loans | 225,000 | 225,000 |
Trade debtors | 453,739 | 241,724 |
Other debtors | 1,757,865 | 1,383,676 |
Directors' current accounts | - | 2,428,890 |
Financial liabilities measured at amortised cost |
Bank loans | 9,007,607 | 12,608,144 |
Trade creditors | 4,475,850 | 6,385,231 |
Other creditors | 875,676 | 2,372,020 |
Hire purchase contracts | 92,620 | 271,203 |
Directors' current accounts | 116,930 | - |
The total interest income and interest expense for financial assets and financial liabilities that are not measured at fair value through profit or loss was £123,227 (2023 - £775,510) and £987,352 (2023 - £1,025,231) respectively. |
23. | PROVISIONS FOR LIABILITIES |
Group |
2024 | 2023 |
£ | £ |
Deferred tax |
Accelerated capital allowances | 244,278 | 609,737 |
Other timing differences | 248,498 | 251,000 |
492,776 | 860,737 |
Group |
Deferred |
tax |
£ |
Balance at 1 July 2023 | 860,737 |
Charge to Income Statement during year | 13,783 |
Disposal of subsidiary | (407,000 | ) |
Property revaluation | 25,256 |
Balance at 30 June 2024 | 492,776 |
The reversal of deferred tax timing differences is not expected to be significant in the forthcoming year. |
ASHLEY KING GROUP LIMITED (REGISTERED NUMBER: 09619606) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
24. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
6,000 | A Ordinary | £1 | 6,000 | 6,000 |
4,000 | B Ordinary | £1 | 4,000 | 4,000 |
500,000 | Preference | £1 | 500,000 | 6,500,000 |
510,000 | 6,510,000 |
The preference shares have no voting rights but rank above the ordinary shares on winding up. Dividends can only be paid on the preference shares following an ordinary resolution. The preference shares are redeemable, with three months notice, at the option of the company. The preference shares are not redeemable at the option of the holder. |
In all other respects, the preference shares rank pari passu with the ordinary shares. |
6,000,000 £1 preference shares were redeemed during the year. |
25. | RESERVES |
Group |
Retained | Revaluation | Merger |
earnings | reserve | reserve | Totals |
£ | £ | £ | £ |
At 1 July 2023 | 49,837,157 | 1,921,071 | (6,852,501 | ) | 44,905,727 |
Profit for the year | 4,151,481 | - | - | 4,151,481 |
Disposal of subsidiary | (1,086,572 | ) | (1,096,134 | ) | 2,168,602 | (14,104 | ) |
At 30 June 2024 | 52,902,066 | 824,937 | (4,683,899 | ) | 49,043,104 |
Company |
Retained |
earnings |
£ |
At 1 July 2023 |
Profit for the year |
At 30 June 2024 |
The merger reserve arose when the group was formed in a share-for-share exchange. This represents the net assets of the companies acquired using the merger method of accounting and subsequent downward revaluations of freehold property. |
The revaluation reserve arose when freehold land and property within the group was revalued. |
Retained earnings is the group's accumulated profit and loss. |
26. | NON-CONTROLLING INTERESTS |
Movements in non-controlling interests are as shown in Statement of Changes in Equity. |
ASHLEY KING GROUP LIMITED (REGISTERED NUMBER: 09619606) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
27. | CONTINGENT LIABILITIES |
The group undertakes to perform "snagging work" on each new property up to six months after completion and sale. This work is budgeted for in the original sale price and a standard cost for the work is accrued at the point of sale. However, an unquantifiable contingent liability exists in respect of any work that may be necessary on properties sold at the statement of financial position date but inspected for snagging after that date where the standard cost may be exceeded. All structural work is covered by a separate insurance policy applicable to each property sold. This takes effect following the expiry of an initial maintenance period. |
28. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to directors subsisted during the years ended 30 June 2024 and 30 June 2023: |
2024 | 2023 |
£ | £ |
A J King and A J King |
Balance outstanding at start of year | 2,428,890 | - |
Amounts advanced | 8,130,363 | 2,428,890 |
Amounts repaid | (10,676,183 | ) | - |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | (116,930 | ) | 2,428,890 |
The loan made to the directors was unsecured and repayable on demand. This is an interest free loan. |
29. | RELATED PARTY DISCLOSURES |
Key management personnel of the entity or its parent (in the aggregate) |
During the year, total key management personnel compensation of £483,185 (2023: £560,630) was paid. |
During the year, the group paid rent to the directors' pension scheme of £93,500 (2023: £93,500). |
At the year end the group owed the directors £116,930 (2023: directors owed the group £2,428,890). This loan is interest free and repayable on demand. |
Other related parties |
Ashwood Homes Limited sub-lets office space to a company under the control of a director. During the year, this company was charged rent and rent insurance of £nil (2023: £5,844). At the statement of financial position date this company was owed £199 by Ashwood Homes Limited (2023: £1,911). |
From time to time, Ashwood Homes Limited makes and receives financing loans to/from other group companies. At the statement of financial position date, that company owed other group companies £13,141,865 (2023: £12,175,445). Other group companies owed Ashwood Homes Limited £5,654,081 (2023: £6,349,258). These loans are interest free and repayable on demand. |
On 27th February 2024 two directors redeemed £3,000,000 of preference shares each, leaving a holding of £250,000 preference shares each in Ashley King Group Limited. |
During the year, Ashwood Homes Limited charged subsidiaries £4,098 (2023: £65,672) for recharge of expenses, £18,000 (2023: £nil) for management services and £nil (2023: £227,500) for the purchase of land. The parent and subsidiaries charged Ashwood Homes Limited £245,529 (2023: £nil) for recharge of expenses, £19,625 (2023: £14,874) for rental of land and £42,597 (2023: £442,311) for the hire of plant and machinery. |
At the statement of financial position date, Ashwood Homes Limited was owed £38,243 (2023: £46,507) by a 60% owned related company. This loan is interest free and repayable on demand. Ashwood Homes Limited charged this company £3,836 (2023: £33,701) for recharge of expenses and services provided in the year. |
30. | SUBSEQUENT EVENTS |
The remaining 500,000 £1 preference shares have been redeemed. |
ASHLEY KING GROUP LIMITED (REGISTERED NUMBER: 09619606) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
31. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is the directors, Mr and Mrs A J King. |