Company Registration No. 11729338 (England and Wales)
WBW CITY HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
WBW CITY HOLDINGS LIMITED
COMPANY INFORMATION
Directors
R E Baldacci
J E Wakerley
S Giles
Company number
11729338
Registered office
The Old Town Hall
Market Place
Oundle
Peterborough
PE8 4BA
Auditor
TC Group
Brightfield Business Hub
Bakewell Road
Orton Southgate
Peterborough
Cambridgeshire
PE2 6XU
WBW CITY HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 9
Group profit and loss account
10
Group statement of comprehensive income
11
Group balance sheet
12
Company balance sheet
13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Notes to the financial statements
17 - 36
WBW CITY HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -

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

Fair review of the business

The directors are pleased to be able to report that 2024 has been a very successful year for the business, having been the first full year since the business was re-organised.

 

As of the 30th June 2023 all the other three businesses that were also part of the WBW City Holdings Limited group were hived across into City Group Security Limited. This was done to leverage not only the full potential of the joined businesses but to realise the synergies that were also available.

 

This has created a network of City Group Security offices up and down the country, from Ashford in Kent up to Knaresborough in Yorkshire. In addition the directors were delighted to open a new office in Manchester in the financial year to better serve customers in the North-West of the country and to further enhance our growth. A key strategy of the business is to have local footprints, so as to develop links in those communities to not only better help customers but also to help those communities themselves through our local social value plans and propositions.

 

During the twelve months not only has the turnover of the business has grown significantly but also the gross margin has improved from 13.5% in 2023 to 14.4% in 2024. The margin improvement reflects the strong commercial emphasis of the new business.

 

This emphasis includes ensuring that new work won is at strong margin and that annual price negotiations with existing customers linked to change in statutory pay / taxes have not resulted in any margin erosion. The directors as especially pleased to see this given the challenging macro-economic conditions and cost of living crisis seen across the country, putting pressure on pricing for all of our customers and potential clients.

 

The strategy of directing employing more staff continues, as does an active change in the sales mix towards larger, less adhoc, longer term contracts - whilst these tend to carry a lower margin they are for a much longer period and therefore more beneficial to growing long term value in the business.

 

The vision of the business remains providing an industry leading level of customer service, whilst focussing on solving customer problems through an integrated mix of personnel and system solutions, linked to the communities in which we work.

 

The directors have full confidence in the abilities of the new executive team to deliver this strategy and expect this to be born out in the results presented in following years within City Group Security Limited.

Principal risks and uncertainties

The most significant risks facing the group are continuing increase in wage inflation, driven by the significant increases in national minimum wage as well as the shortage of skilled security operatives in the market leading to strong competition for the best officers.

 

The business will continue to address these risks through working hard with customers to find the most efficient method of delivering security along with having a culture which attracts the best team members.

 

WBW CITY HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
Key performance indicators

2024 2023

 

Turnover 27,303,341 39,847,901                            

Gross profit 3,935,970 5,367,828

 

Loss before tax     (269,567) (251,271)

Shareholder funds (451,758)     (97,835)

On behalf of the board

S Giles
Director
10 February 2025
WBW CITY HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -

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

Principal activities

The principal activity of the company and group continued to be that of private security activities.

Results and dividends

The results for the year are set out on page 10.

No ordinary dividends were paid. 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:

R E Baldacci
J E Wakerley
S Giles
Financial instruments
Price risk, credit risk, liquidity risk and cash flow risk

The credit risk to the group is the failure of customers to fulfil their financial obligations to the group. This exposure is reduced due to the large number of customers, and managed by close credit controls and the terms and conditions of credit. The majority of contracts allow the group to pass on statutory wage increases through price increases therefore mitigating the risk of margin loss.

 

Liquidity and cash flow risk is the risk the group will be unable to generate enough cash resources in order to meet its financial obligations. The group manages this risk by ensuring that cash resources are generated and maintained sufficiently in order to meet the required payments when they fall due. The bank working capital facility is used to manage group liquidity and cash flow.

Objectives and policies

The group’s main financial instruments are bank working capital facilities, bank loan, trade creditors and trade debtors. The bank loans have generally been used to fund company acquisitions within the group. The loans have covenants and charges against the group’s assets. These could be exercised if the group fails to meet its obligations and generate sufficient profits as determined by the banks covenants.

Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

WBW CITY HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 4 -
Employee involvement

The group's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.

 

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.

 

There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.

Post reporting date events

On 29 October 2024, WBW City Holdings Ltd purchased the entire share capital of Businesswatch Guarding Services Limited (Company number 11431125).

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
S Giles
Director
10 February 2025
WBW CITY HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024
- 5 -

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.

WBW CITY HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WBW CITY HOLDINGS LIMITED
- 6 -
Opinion

We have audited the financial statements of WBW City Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes of 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 FRS 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 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.

WBW CITY HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WBW CITY HOLDINGS LIMITED
- 7 -

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:

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 strategic report and the directors' report.

 

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:

 

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 company or to cease operations, or have no realistic alternative but to do so.

WBW CITY HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WBW CITY HOLDINGS LIMITED
- 8 -
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.

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.

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

 

The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.

Our approach was as follows:

 

 

WBW CITY HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WBW CITY HOLDINGS LIMITED
- 9 -

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

 

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

 

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

 

Use of our report

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

John Grant (Senior Statutory Auditor)
10 February 2025
For and on behalf of TC Group
Brightfield Business Hub
Bakewell Road
Orton Southgate
Peterborough
Cambridgeshire
PE2 6XU
WBW CITY HOLDINGS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2024
- 10 -
Year
Period
ended
ended
30 June
30 June
2024
2023
Notes
£
£
Turnover
3
27,303,341
39,847,901
Cost of sales
(23,367,371)
(34,480,073)
Gross profit
3,935,970
5,367,828
Administrative expenses
(3,707,927)
(5,430,663)
Other operating income
-
338,000
Operating profit
4
228,043
275,165
Interest receivable and similar income
7
80
488
Interest payable and similar expenses
8
(497,690)
(526,924)
Loss before taxation
(269,567)
(251,271)
Tax on loss
9
(84,356)
(120,467)
Loss for the financial year
22
(353,923)
(371,738)
Loss for the financial year is all attributable to the owners of the parent company.
WBW CITY HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 11 -
Year
Period
ended
ended
30 June
30 June
2024
2023
£
£
Loss for the year
(353,923)
(371,738)
Other comprehensive income
-
-
Total comprehensive income for the year
(353,923)
(371,738)
Total comprehensive income for the year is all attributable to the owners of the parent company.
WBW CITY HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
30 JUNE 2024
30 June 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
10
4,235,596
4,853,687
Tangible assets
11
139,793
108,727
4,375,389
4,962,414
Current assets
Debtors
14
7,962,082
6,709,986
Cash at bank and in hand
83,894
236,614
8,045,976
6,946,600
Creditors: amounts falling due within one year
15
(11,704,099)
(10,284,443)
Net current liabilities
(3,658,123)
(3,337,843)
Total assets less current liabilities
717,266
1,624,571
Creditors: amounts falling due after more than one year
16
(1,169,024)
(1,718,768)
Provisions for liabilities
Deferred tax liability
19
-
0
3,638
-
(3,638)
Net liabilities
(451,758)
(97,835)
Capital and reserves
Called up share capital
21
300
300
Profit and loss reserves
22
(452,058)
(98,135)
Total equity
(451,758)
(97,835)
The financial statements were approved by the board of directors and authorised for issue on 10 February 2025 and are signed on its behalf by:
10 February 2025
S Giles
Director
WBW CITY HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 30 JUNE 2024
30 June 2024
- 13 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
12
9,695,923
9,695,923
Current assets
-
-
Creditors: amounts falling due within one year
15
(6,722,428)
(6,722,428)
Net current liabilities
(6,722,428)
(6,722,428)
Net assets
2,973,495
2,973,495
Capital and reserves
Called up share capital
21
300
300
Profit and loss reserves
22
2,973,195
2,973,195
Total equity
2,973,495
2,973,495

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 year was £0 (2023 - £2,968,164 profit).

The financial statements were approved by the board of directors and authorised for issue on 10 February 2025 and are signed on its behalf by:
10 February 2025
S Giles
Director
Company Registration No. 11729338
WBW CITY HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 14 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2022
300
273,603
273,903
Period ended 30 June 2023:
Loss and total comprehensive income for the period
-
(371,738)
(371,738)
Balance at 30 June 2023
300
(98,135)
(97,835)
Year ended 30 June 2024:
Loss and total comprehensive income for the year
-
(353,923)
(353,923)
Balance at 30 June 2024
300
(452,058)
(451,758)
WBW CITY HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 15 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2022
300
5,031
5,331
Period ended 30 June 2023:
Profit and total comprehensive income for the period
-
2,968,164
2,968,164
Balance at 30 June 2023
300
2,973,195
2,973,495
Year ended 30 June 2024:
Profit and total comprehensive income for the year
-
-
-
0
Balance at 30 June 2024
300
2,973,195
2,973,495
WBW CITY HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 16 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
25
(81,175)
1,843,816
Interest paid
(497,690)
(526,924)
Income taxes paid
(159,147)
(74,122)
Net cash (outflow)/inflow from operating activities
(738,012)
1,242,770
Investing activities
Purchase of intangible assets
-
6,609
Purchase of tangible fixed assets
(73,565)
(19,655)
Proceeds on disposal of tangible fixed assets
3,006
-
Purchase of subsidiaries
-
(2,381,818)
Interest received
80
488
Net cash used in investing activities
(70,479)
(2,394,376)
Financing activities
Proceeds from borrowings
-
1,123,739
Repayment of borrowings
-
(2,656,380)
Repayment of bank loans
(539,739)
-
Payment of finance leases obligations
(10,509)
(24,157)
Net cash used in financing activities
(550,248)
(1,556,798)
Net decrease in cash and cash equivalents
(1,358,739)
(2,708,404)
Cash and cash equivalents at beginning of year
(2,310,685)
397,719
Cash and cash equivalents at end of year
(3,669,424)
(2,310,685)
Relating to:
Cash at bank and in hand
83,894
236,614
Bank overdrafts included in creditors payable within one year
(3,753,318)
(2,547,299)
WBW CITY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 17 -
1
Accounting policies
Company information

WBW City Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is The Old Town Hall Market Place, Oundle, Peterborough, United Kingdom, PE8 4BA.

 

The group consists of WBW City 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 £.

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

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 WBW City 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 30 June 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.

WBW CITY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 18 -

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

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

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 goods and 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.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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.

WBW CITY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 19 -
1.7
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:

Leasehold land and buildings
10% straight line
Plant and equipment
33% straight line & 25% reducing balance
Fixtures and fittings
33% Straight line
Office Equipment
33% straight line
Motor vehicles
25% reducing balance

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.

1.8
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.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

WBW CITY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 20 -

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.9
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.

1.10
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.

WBW CITY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 21 -
1.11
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.

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.

Other financial assets

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 profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

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.

WBW CITY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 22 -
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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

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

1.12
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.

1.13
Taxation

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

WBW CITY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 23 -
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.

1.14
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.

1.15
Retirement benefits

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

1.16
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.

WBW CITY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 24 -

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.

1.17
Foreign exchange

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

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.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Rendering of services
27,303,341
39,847,901
2024
2023
£
£
Other significant revenue
Other income
-
338,000
WBW CITY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 25 -
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
34,062
51,667
Loss/(profit) on disposal of tangible fixed assets
5,431
(5,317)
Amortisation of intangible assets
618,091
800,917
Operating lease charges
169,370
353,402
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
25,000
33,000
For other services
All other non-audit services
18,201
102,770
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
Administration and support
44
35
-
-
Other departments
370
367
-
-
Total
414
402
-
0
-
0
WBW CITY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
6
Employees
(Continued)
- 26 -

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
12,423,046
16,350,884
-
0
-
0
Social security costs
1,001,864
878,520
-
-
Pension costs
213,183
187,245
-
0
-
0
13,638,093
17,416,649
-
0
-
0
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
80
488

Investment income includes the following:

Interest on financial assets not measured at fair value through profit or loss
80
488
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
228,762
307,887
Interest on invoice finance arrangements
263,227
214,186
491,989
522,073
Other finance costs:
Interest on finance leases and hire purchase contracts
5,701
3,798
Other interest
-
1,053
Total finance costs
497,690
526,924
WBW CITY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 27 -
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
87,994
147,648
Adjustments in respect of prior periods
-
0
(23,911)
Total current tax
87,994
123,737
Deferred tax
Origination and reversal of timing differences
(3,638)
(3,270)
Total tax charge
84,356
120,467

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

2024
2023
£
£
Loss before taxation
(269,567)
(251,271)
Expected tax credit based on the standard rate of corporation tax in the UK of 25% (2023: 19%)
(67,392)
(50,254)
Tax effect of expenses that are not deductible in determining taxable profit
485
14,125
Group relief
-
0
(542)
Permanent capital allowances in excess of depreciation
-
0
1,112
Amortisation on assets not qualifying for tax allowances
154,523
160,183
Other non-reversing timing differences
-
0
(3,546)
Tax at marginal rate
-
0
(611)
(3,260)
-
0
Taxation charge
84,356
120,467
WBW CITY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 28 -
10
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 July 2023 and 30 June 2024
6,180,914
Amortisation and impairment
At 1 July 2023
1,327,227
Amortisation charged for the year
618,091
At 30 June 2024
1,945,318
Carrying amount
At 30 June 2024
4,235,596
At 30 June 2023
4,853,687
WBW CITY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 29 -
11
Tangible fixed assets
Group
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Office Equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 July 2023
88,003
110,843
15,115
24,787
92,779
331,527
Additions
763
2,515
-
0
11,605
58,682
73,565
Disposals
-
0
(86,337)
-
0
(1,719)
(11,073)
(99,129)
At 30 June 2024
88,766
27,021
15,115
34,673
140,388
305,963
Depreciation and impairment
At 1 July 2023
25,355
108,108
12,606
20,879
55,852
222,800
Depreciation charged in the year
8,838
3,018
1,389
5,607
15,210
34,062
Eliminated in respect of disposals
-
0
(86,337)
-
0
(1,719)
(2,636)
(90,692)
At 30 June 2024
34,193
24,789
13,995
24,767
68,426
166,170
Carrying amount
At 30 June 2024
54,573
2,232
1,120
9,906
71,962
139,793
At 30 June 2023
62,648
2,735
2,509
3,908
36,927
108,727

The carrying value of land and buildings comprises:

Group
Company
2024
2023
2024
2023
£
£
£
£
Short leasehold
54,573
62,648
-
0
-
0

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
-
0
30,262
-
0
-
0
WBW CITY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
11
Tangible fixed assets
(Continued)
- 30 -
12
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
9,695,923
9,695,923
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 July 2023 and 30 June 2024
9,695,923
Carrying amount
At 30 June 2024
9,695,923
At 30 June 2023
9,695,923
13
Subsidiaries

Details of the company's subsidiaries at 30 June 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
City Security Services Limited
England & Wales
Ordinary
100.00
-
GR8 Security Limited
England & Wales
S479A
Ordinary
100.00
-
Sight & Sound Security Limited
England & Wales
S479A
Ordinary
100.00
-
K9 Security Holdings Limited
England & Wales
S479A
Ordinary
100.00
-
K9 Patrol Limited
England & Wales
S479A
Ordinary
-
100.00

Those subsidiaries indicated in the table above as 'S479A' are exempt from the requirements of an audit in accordance with section 479A of the companies act 2006.

WBW CITY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 31 -
14
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
7,281,506
5,924,952
-
0
-
0
Other debtors
363,545
360,773
-
0
-
0
Prepayments and accrued income
317,031
424,261
-
0
-
0
7,962,082
6,709,986
-
-
15
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
17
4,308,658
3,100,622
-
0
-
0
Obligations under finance leases
18
6,782
9,286
-
0
-
0
Trade creditors
2,529,088
2,910,450
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
6,252,737
5,801,833
Corporation tax payable
69,759
140,912
-
0
-
0
Other taxation and social security
1,588,081
1,165,876
-
-
Other creditors
1,408,492
1,736,424
469,691
920,595
Accruals and deferred income
1,793,239
1,220,873
-
0
-
0
11,704,099
10,284,443
6,722,428
6,722,428
16
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
17
1,169,024
1,710,763
-
0
-
0
Obligations under finance leases
18
-
0
8,005
-
0
-
0
1,169,024
1,718,768
-
-
Amounts included above which fall due after five years are as follows:
Payable by instalments
-
55,555
-
-
WBW CITY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 32 -
17
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
1,724,364
2,264,086
-
0
-
0
Bank overdrafts
3,753,318
2,547,299
-
0
-
0
Other loans
-
0
16
-
0
-
0
5,477,682
4,811,401
-
-
Payable within one year
4,308,658
3,100,638
-
0
-
0
Payable after one year
1,169,024
1,710,763
-
0
-
0

The long-term loans are secured by fixed charges over all assets of the GR8 Security Limited dated 19/03/2021.

 

The long-term loans are secured by fixed charges over all assets of the City Security Services Limited dated 19/03/2021.

 

The long-term loans are secured by fixed charges over all assets of the Sight & Sound Security Limited dated 21/10/2021.

The bank loans are secured by a joint and several personal guarantee from J E Wakerley and R E Baldacci Limited to £200,000.

18
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
6,782
9,286
-
0
-
0
In two to five years
-
0
8,005
-
0
-
0
6,782
17,291
-
-

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 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

WBW CITY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 33 -
19
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
-
3,638
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 July 2023
3,638
-
Credit to profit or loss
(3,638)
-
Asset at 30 June 2024
-
-
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
213,183
187,245

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.

WBW CITY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 34 -
21
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
100
100
100
100
Ordinary B Shares of £1 each
100
100
100
100
Ordinary C shares of £1 each
100
100
100
100
300
300
300
300
22
Reserves

Group

Share capital

Represents the nominal value of shares that have been issued.

 

Profit and loss account

Includes all current and prior year retained profits and losses at the balance sheet date.

 

Company

Share capital

Represents the nominal value of shares that have been issued.

 

Profit and loss account

Includes all current and prior period retained profits and losses at the balance sheet date.

23
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
36,782
109,336
-
-
Between two and five years
16,506
225,616
-
-
53,288
334,952
-
-
24
Related party transactions
Transactions with related parties
WBW CITY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
24
Related party transactions
(Continued)
- 35 -

The company has taken advantage of exemption, under the terms of FRS 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.

 

Summary of transactions with key management

 

During the year key management received advances totalling £101,900 (2023 - £1,286,812) and made repayments of £487,003 (2023 - £2,500,000). At the balance sheet date balances due to key management totalled £236,079 (2023 - £621,181). There was no further remuneration with key management other than directors' remuneration. There are no members of key management other than directors.

 

Summary of transactions with entities with joint control or significant interest

 

During the year sales totalling £449 (2023 - £400,518) were made to entities with joint control or significant interest. Purchases totalling £86,381 (2023 - £563,396) were made from entities with joint control or significant interest. During the year loans totalling £Nil (2023 - £365,600) were made to entities with joint control or significant influence.

 

At the balance sheet date the amount due from entities with joint control or significant interest was £345,600 (2023 - £20,000). At the balance sheet date the amount due to entities with joint control or significant interest was £26,500 (2023 - £Nil).

 

25
Cash (absorbed by)/generated from group operations
2024
2023
£
£
Loss for the year after tax
(353,923)
(371,738)
Adjustments for:
Taxation charged
84,356
120,467
Finance costs
497,690
526,924
Investment income
(80)
(488)
Bad and doubtful debts
-
40,307
Loss/(gain) on disposal of tangible fixed assets
5,431
(6,370)
Depreciation and impairment of tangible fixed assets
34,062
51,667
Goodwill amortization
618,091
800,917
Movements in working capital:
(Increase)/decrease in debtors
(1,252,095)
2,114,881
Increase/(decrease) in creditors
285,293
(1,432,751)
Cash (absorbed by)/generated from operations
(81,175)
1,843,816
WBW CITY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 36 -
26
Analysis of changes in net debt - group
1 July 2023
Cash flows
30 June 2024
£
£
£
Cash at bank and in hand
236,614
(152,720)
83,894
Bank overdrafts
(2,547,299)
(1,206,019)
(3,753,318)
(2,310,685)
(1,358,739)
(3,669,424)
Borrowings excluding overdrafts
(2,264,102)
539,738
(1,724,364)
Obligations under finance leases
(17,291)
10,509
(6,782)
(4,592,078)
(808,492)
(5,400,570)
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