ADS GROUP HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
Company Registration No. 14597345 (England and Wales)
ADS GROUP HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Mrs B L Thatcher
Mr D H Patterson
Mr S W Preston
Ms T Williams
Secretary
Mr D H Patterson
Company number
14597345
Registered office
3-4 Apex Court
Bassendale Road
Wirral International Business Park
Bromborough
Wirral
CH62 4RE
Auditor
DSG Audit
Castle Chambers
43 Castle Street
Liverpool
L2 9TL
ADS GROUP HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10 - 11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 34
ADS GROUP HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 1 -

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

Principal activities

The principal activity of the group is that of the design and manufacture of printed packaging and contract packing services to the Medical Device and Pharmaceutical Industries.

 

The principal activity of the company is that of a holding company.

Review of the business

The group's results are summarised below with turnover having fallen by 6.2% over the previous year. Although demand for contract packing services remained stable, the revenue was affected by world-wide API shortages, transportation constraints and significant lengthening of lead times in bulk tablet manufacture.

 

Gross margin was maintained during the year, despite continued inflationary pressures, but operating profits were impacted by the fall in contribution to the fixed costs of the business.

 

Principal risks and uncertainties

The market in which the group operates remains competitive but provides opportunities for expansion and growth.

 

As referred to above, supply chain shortages within the Pharmaceutical market are set to continue in the short term. The group has taken steps to mitigate this risk by diversifying into other markets and expanding its range of contract packing services into other dose formats.

Key performance indicators

The key financial performance indicators during the period were as follows:

 

 

 

 

 

2024

 

2023

 

 

 

 

 

 

 

Turnover (£000s)

 

 

£13,305

 

£14,125

Gross Profit Margin

 

29.3%

 

30.8%

Operating Profit (£000s)

 

(£33)

 

£420

EBITDA (£000s)

 

 

£687

 

£1,141

Other performance indicators

Reduced demand is set to continue in the short-term which will impact turnover in the first six months of the next financial year. However, the group has a robust balance sheet so is well placed to manage any downturn in revenue.

 

The current pipeline highlights a significant upturn in demand for the latter half of the year and the group is investing to ensure the necessary capacity is in place. In addition to this expansion related expenditure, the group is committed to exploring investment opportunities into new technologies to improve productivity and operating margins. The directors are confident that this strategy will deliver growth for the future bringing the group’s financial performance back in line with previous levels.

On behalf of the board

Mr D H Patterson
Director
13 February 2025
ADS GROUP HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 2 -

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

Results and dividends

The results for the year are set out on page 8.

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:

Mrs B L Thatcher
Mr D H Patterson
Mr S W Preston
Ms T Williams
Financial instruments
Liquidity risk

The group manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the group has sufficient liquid resources to meet the operating needs of the business.

Interest rate risk

The group is exposed to fair value interest rate risk on its fixed rate borrowings and cash flow interest rate risk on floating rate deposits, bank overdrafts and loans. The group uses interest rate derivatives to manage the mix of fixed and variable rate debt so as to reduce its exposure to changes in interest rates.

Foreign currency risk

The group’s principal foreign currency exposures arise from trading with overseas companies. Group policy permits but does not demand that these exposures may be hedged in order to fix the cost in sterling. This hedging activity involves the use of foreign exchange forward contracts.

Credit risk

Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board.

 

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

Auditor

DSG resigned as auditor on 11 September 2024. DSG Audit were appointed on 11 September 2024 as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

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.

ADS GROUP HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 3 -
Strategic report

The group has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. The group has done so in respect of its principal activities and future developments.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr D H Patterson
Director
13 February 2025
ADS GROUP HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MAY 2024
- 4 -

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.

ADS GROUP HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ADS GROUP HOLDINGS LIMITED
- 5 -
Opinion

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

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

 

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

 

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

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

ADS GROUP HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ADS GROUP HOLDINGS LIMITED
- 6 -
Matters on which we are required to report by exception

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

 

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

Responsibilities of directors

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

Auditor's responsibilities for the audit of the financial statements

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

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the group.

 

The following laws and regulations were identified as being of significance to the group:

 

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: enquiries of management and those charged with governance as to whether the group complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of board minutes; testing the appropriateness of journal entries and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.

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

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the company’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

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.

Jean Ellis BA FCA CTA (Senior Statutory Auditor)
For and on behalf of DSG Audit, Statutory Auditor
Chartered Accountants
Castle Chambers
43 Castle Street
Liverpool
L2 9TL
13 February 2025
ADS GROUP HOLDINGS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MAY 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
13,305,081
14,124,988
Cost of sales
(9,399,059)
(9,770,197)
Gross profit
3,906,022
4,354,791
Administrative expenses
(3,977,291)
(3,972,535)
Other operating income
38,000
38,000
Operating (loss)/profit
4
(33,269)
420,256
Interest receivable and similar income
8
23,231
9,270
Interest payable and similar expenses
9
(111,476)
(90,399)
Movement in investments
10
9,562
-
Fair value gains on investment properties
14
475,773
-
0
Profit before taxation
363,821
339,127
Tax on profit
11
(68,979)
(83,244)
Profit for the financial year
294,842
255,883
Profit for the financial year is attributable to:
- Owners of the parent company
328,071
293,659
- Non-controlling interests
(33,229)
(37,776)
294,842
255,883

The notes on pages 16 to 34 form part of these financial statements.

ADS GROUP HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2024
- 9 -
2024
2023
£
£
Profit for the year
294,842
255,883
Other comprehensive income
-
-
Total comprehensive income for the year
294,842
255,883
Total comprehensive income for the year is attributable to:
- Owners of the parent company
328,071
293,659
- Non-controlling interests
(33,229)
(37,776)
294,842
255,883
ADS GROUP HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
31 MAY 2024
31 May 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
12
-
0
-
0
Tangible assets
13
5,094,255
5,650,533
Investment property
14
600,000
-
0
Investments
15
5,671
13,980
5,699,926
5,664,513
Current assets
Stocks
17
1,021,031
1,325,564
Debtors
18
3,408,194
3,145,802
Cash at bank and in hand
1,391,250
1,433,814
5,820,475
5,905,180
Creditors: amounts falling due within one year
19
(3,545,704)
(3,579,288)
Net current assets
2,274,771
2,325,892
Total assets less current liabilities
7,974,697
7,990,405
Creditors: amounts falling due after more than one year
20
(680,547)
(1,014,272)
Provisions for liabilities
Deferred tax liability
23
682,927
659,752
(682,927)
(659,752)
Net assets
6,611,223
6,316,381
Capital and reserves
Called up share capital
26
18,400
18,400
Profit and loss reserves
6,715,693
6,387,622
Equity attributable to owners of the parent company
6,734,093
6,406,022
Non-controlling interests
(122,870)
(89,641)
Total equity
6,611,223
6,316,381
ADS GROUP HOLDINGS LIMITED
GROUP BALANCE SHEET (CONTINUED)
AS AT
31 MAY 2024
31 May 2024
- 11 -

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 13 February 2025 and are signed on its behalf by:
13 February 2025
Mr D H Patterson
Director
Company registration number 14597345 (England and Wales)
ADS GROUP HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 MAY 2024
31 May 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
15
18,480
18,480
Current assets
Debtors
18
462,267
496,497
Cash at bank and in hand
6,699
3,381
468,966
499,878
Creditors: amounts falling due within one year
19
(7,675)
(6,775)
Net current assets
461,291
493,103
Net assets
479,771
511,583
Capital and reserves
Called up share capital
26
18,400
18,400
Profit and loss reserves
461,371
493,183
Total equity
479,771
511,583

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £31,812 (2023 - £493,183 profit).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 13 February 2025 and are signed on its behalf by:
13 February 2025
Mr D H Patterson
Director
Company registration number 14597345 (England and Wales)
ADS GROUP HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024
- 13 -
Share capital
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
£
£
£
£
£
Balance at 1 June 2022
18,400
6,109,461
6,127,861
(51,865)
6,075,996
Year ended 31 May 2023:
Profit and total comprehensive income
-
293,659
293,659
(37,776)
255,883
Dividends
-
(15,498)
(15,498)
-
(15,498)
Balance at 31 May 2023
18,400
6,387,622
6,406,022
(89,641)
6,316,381
Year ended 31 May 2024:
Profit and total comprehensive income
-
328,071
328,071
(33,229)
294,842
Balance at 31 May 2024
18,400
6,715,693
6,734,093
(122,870)
6,611,223
ADS GROUP HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024
- 14 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Period ended 31 May 2023:
Profit and total comprehensive income for the year
-
493,183
493,183
Issue of share capital
26
18,400
-
18,400
Balance at 31 May 2023
18,400
493,183
511,583
Year ended 31 May 2024:
Profit and total comprehensive income
-
(31,812)
(31,812)
Balance at 31 May 2024
18,400
461,371
479,771
ADS GROUP HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2024
- 15 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
32
721,873
1,286,043
Interest paid
(111,476)
(90,399)
Income taxes paid
(45,580)
(225,293)
Net cash inflow from operating activities
564,817
970,351
Investing activities
Purchase of tangible fixed assets
(288,310)
(696,305)
Proceeds from disposal of tangible fixed assets
-
8,469
Proceeds from disposal of investments
17,871
-
Interest received
22,843
8,182
Dividends received
388
1,088
Net cash used in investing activities
(247,208)
(678,566)
Financing activities
Repayment of bank loans
(162,874)
(160,958)
Payment of finance leases obligations
(248,574)
(318,707)
Dividends paid to equity shareholders
-
0
(15,498)
Net cash used in financing activities
(411,448)
(495,163)
Net decrease in cash and cash equivalents
(93,839)
(203,378)
Cash and cash equivalents at beginning of year
1,433,814
1,637,192
Cash and cash equivalents at end of year
1,339,975
1,433,814
Relating to:
Cash at bank and in hand
1,391,250
1,433,814
Bank overdrafts included in creditors payable within one year
(51,275)
-
ADS GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
- 16 -
1
Accounting policies
Company information

ADS Group Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 3-4 Apex Court, Bassendale Road, Wirral International Business Park, Bromborough, Wirral, CH62 4RE.

 

The group consists of ADS Group Holdings Limited and all of its subsidiaries.

 

The principal activities of the group and company are disclosed in the Strategic Report.

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 unless otherwise specified within the accounting policies detailed below.

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

 

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.

ADS GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 17 -
1.3
Basis of consolidation

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

 

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

 

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

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

1.4
Going concern

The directors have considered the impact of potential operational and financial challenges posed by the current economic situation, including but not restricted to, an assessment of the robustness of their supply chain and broader logistics arrangements. The directors have concluded that any operational and financial pressures caused directly by the current economic situation are unlikely to have a material impact on the group.

 

The directors have prepared forecasts and budgets which indicate that the group will continue to generate cash over the period considered by them which is at least twelve months from the date of approval of these financial statements, in their assessment of the appropriateness of adopting the going concern basis in preparation of these financial statements. The group has a strong asset base and cash reserves available.

 

Based on the above, the directors consider it appropriate to prepare these financial statements on a going concern basis.

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.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 

Revenue from the provision of services is recognised as a percentage of goods packed compared to total batch quantity that require packing.

 

Certain jobs are undertaken for customers on long term contracts which require the company to hold a minimum level of completed goods for call off. Work on these contracts is valued at cost plus profit earned to stage of completion.

ADS GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 18 -
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 was fully amortised at the end of the previous financial year.

 

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

1.7
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
12.5% to 20% straight line
Plant and machinery
10% to 33.3% straight line
Fixtures and fittings
10% straight line
Motor vehicles
25% straight line

Freehold land is not depreciated.

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
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

1.9
Fixed asset investments

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

 

In the parent company financial statements, investmentsare 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.

Listed investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in profit or loss. Transaction costs are expensed to profit or loss as incurred.

ADS GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 19 -
1.10
Impairment of fixed assets

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

 

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

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

 

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

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

1.11
Stocks

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

 

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

1.12
Cash and cash equivalents

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

1.13
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.

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

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 and other loans, 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.

 

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

Derecognition of financial liabilities

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

ADS GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 21 -
1.14
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.

1.15
Taxation

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

Current tax

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

Deferred tax

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

 

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

1.16
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.

1.17
Retirement benefits

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

1.18
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.

ADS GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 22 -

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.

1.19
Government grants

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

 

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

2
Judgements and key sources of estimation uncertainty

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

 

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

Key sources of estimation uncertainty

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

Depreciation of tangible assets

The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives and residual value of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect the current estimates, based on economic utilisation and the physical condition of the assets. Changes in the useful economic life of assets are accounted for by amending the prospective useful economic life and the annual depreciation charge over the remaining useful life of the asset.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sale of goods
6,337,634
6,566,691
Sale of services
6,967,447
7,558,297
13,305,081
14,124,988
ADS GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
3
Turnover and other revenue
(Continued)
- 23 -
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
11,498,527
12,287,864
Europe
1,764,873
1,759,804
Rest of world
41,681
77,320
13,305,081
14,124,988
2024
2023
£
£
Other revenue
Interest income
22,843
8,182
Dividends received
388
1,088
Grants received
38,000
38,000
4
Operating (loss)/profit
2024
2023
£
£
Operating (loss)/profit for the year is stated after charging/(crediting):
Exchange losses
2,201
12,128
Government grants
(38,000)
(38,000)
Depreciation of owned tangible fixed assets
654,375
555,952
Depreciation of tangible fixed assets held under finance leases
65,986
164,493
Profit on disposal of tangible fixed assets
-
(430)
Operating lease charges
421,293
341,907
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
3,940
3,750
Audit of the financial statements of the company's subsidiaries
17,590
16,750
21,530
20,500
ADS GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 24 -
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
Production
135
149
-
-
Administration and support
28
29
-
-
Other departments
16
15
-
-
Total
179
193
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
5,424,039
5,347,244
-
0
-
0
Social security costs
516,208
501,181
-
-
Pension costs
201,183
192,313
-
0
-
0
6,141,430
6,040,738
-
0
-
0
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
481,102
471,698
Company pension contributions to defined contribution schemes
21,040
20,089
502,142
491,787
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
120,003
115,681
Company pension contributions to defined contribution schemes
6,000
6,000
ADS GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 25 -
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
22,843
8,182
Other income from investments
Dividends received
388
1,088
Total income
23,231
9,270
9
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
98,276
66,917
Interest on finance leases and hire purchase contracts
13,200
23,482
Total finance costs
111,476
90,399
10
Movement in investments
2024
2023
£
£
Fair value gains on financial instruments
Gain on financial assets held at fair value through profit or loss
671
-
Other gains
Gain on disposal of investments held at fair value
8,891
-
9,562
-
11
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
45,743
45,519
Adjustments in respect of prior periods
61
-
0
Total current tax
45,804
45,519
Deferred tax
Origination and reversal of timing differences
23,175
37,725
Total tax charge
68,979
83,244
ADS GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
11
Taxation
(Continued)
- 26 -

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

2024
2023
£
£
Profit before taxation
363,821
339,127
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
90,955
64,434
Tax effect of expenses that are not deductible in determining taxable profit
5,189
3,473
Tax effect of income not taxable in determining taxable profit
(97)
(207)
Adjustments in respect of prior years
61
-
0
Effect of change in corporation tax rate
-
2,529
Permanent capital allowances in excess of depreciation
(27,129)
13,015
Taxation charge
68,979
83,244
12
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 June 2023 and 31 May 2024
13,342
Amortisation and impairment
At 1 June 2023 and 31 May 2024
13,342
Carrying amount
At 31 May 2024
-
0
At 31 May 2023
-
0
The company had no intangible fixed assets at 31 May 2024 or 31 May 2023.
ADS GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 27 -
13
Tangible fixed assets
Group
Freehold land
Leasehold land and buildings
Plant and machinery
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 June 2023
124,227
3,266,856
10,294,033
1,140,951
20,991
14,847,058
Additions
-
0
-
0
259,963
28,347
-
0
288,310
Disposals
-
0
-
0
(299,811)
(2,805)
-
0
(302,616)
Transfer to investment property
(124,227)
-
0
-
0
-
0
-
0
(124,227)
At 31 May 2024
-
0
3,266,856
10,254,185
1,166,493
20,991
14,708,525
Depreciation and impairment
At 1 June 2023
-
0
1,017,771
7,351,996
805,767
20,991
9,196,525
Depreciation charged in the year
-
0
68,305
585,259
66,797
-
0
720,361
Eliminated in respect of disposals
-
0
-
0
(299,811)
(2,805)
-
0
(302,616)
At 31 May 2024
-
0
1,086,076
7,637,444
869,759
20,991
9,614,270
Carrying amount
At 31 May 2024
-
0
2,180,780
2,616,741
296,734
-
0
5,094,255
At 31 May 2023
124,227
2,249,085
2,942,037
335,184
-
0
5,650,533
The company had no tangible fixed assets at 31 May 2024 or 31 May 2023.

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
£
£
£
£
Plant and machinery
411,374
855,518
-
0
-
0
14
Investment property
Group
Company
2024
2024
£
£
Fair value
At 1 June 2023
-
-
Transfers from owner-occupied property
124,227
-
Net gains through fair value adjustments
475,773
-
At 31 May 2024
600,000
-
ADS GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
14
Investment property
(Continued)
- 28 -

Investment property comprises land held by the group. The fair value of the investment property has been arrived at on the basis of a valuation provided by an estate agents based on recent sales of land in the surrounding area. The directors have considered the value at 31 May 2024 and feel that the value remains appropriate.

15
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
16
-
0
-
0
18,480
18,480
Listed investments
5,671
13,980
-
0
-
0
5,671
13,980
18,480
18,480
Movements in fixed asset investments
Group
Investments
£
Cost or valuation
At 1 June 2023
13,980
Additions
5,000
Valuation changes
671
Disposals
(13,980)
At 31 May 2024
5,671
Carrying amount
At 31 May 2024
5,671
At 31 May 2023
13,980
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 June 2023 and 31 May 2024
18,480
Carrying amount
At 31 May 2024
18,480
At 31 May 2023
18,480
ADS GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 29 -
16
Subsidiaries

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

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
A.D.S. Graphics Limited
3-4 Apex Court, Bassendale Road, Bromborough, Wirral, CH62 3RE
Ordinary
100.00
-
Addition Design Limited
3-4 Apex Court, Bassendale Road, Bromborough, Wirral, CH62 3RE
Ordinary
80.00
-
Chester Medical Solutions Limited
3-4 Apex Court, Bassendale Road, Bromborough, Wirral, CH62 3RE
Ordinary
-
100.00

All of the subsidiaries are included in the consolidated accounts.

 

The following trading subsidiaries have not been audited in accordance with Section 479A of the Companies Act.

Company
Company number
Addition Design Limited
10738635
Chester Medical Solutions Limited
04165479
17
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
1,021,031
1,325,564
-
-
18
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,296,796
2,054,618
-
0
-
0
Amounts recoverable on contracts
502,264
589,126
-
0
-
0
Amounts owed by group undertakings
-
-
461,497
496,497
Other debtors
7,036
6,289
770
-
0
Prepayments and accrued income
602,098
495,769
-
0
-
0
3,408,194
3,145,802
462,267
496,497
ADS GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 30 -
19
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
21
195,307
144,033
-
0
-
0
Obligations under finance leases
22
135,030
246,585
-
0
-
0
Trade creditors
1,310,260
1,445,505
900
-
0
Corporation tax payable
45,743
45,519
-
0
-
0
Other taxation and social security
471,866
364,375
-
-
Government grants
24
33,833
38,000
-
0
-
0
Other creditors
1,120,157
991,922
-
0
-
0
Accruals and deferred income
233,508
303,349
6,775
6,775
3,545,704
3,579,288
7,675
6,775

Included within other creditors is £986,508 (2023: £843,556) which is secured by a fixed and floating charge over the undertakings property and assets.

20
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
21
574,719
737,592
-
0
-
0
Obligations under finance leases
22
36,577
173,596
-
0
-
0
Government grants
24
69,251
103,084
-
0
-
0
680,547
1,014,272
-
-
Amounts included above which fall due after five years are as follows:
Payable by instalments
92,642
242,486
-
-
21
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
718,751
881,625
-
0
-
0
Bank overdrafts
51,275
-
0
-
0
-
0
770,026
881,625
-
-
Payable within one year
195,307
144,033
-
0
-
0
Payable after one year
574,719
737,592
-
0
-
0
ADS GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
21
Loans and overdrafts
(Continued)
- 31 -

Included in bank loans is an amount of £518,751 (2023: £581,625) in respect of a bank loan. The bank loan is secured by a first legal charge over the leasehold property of the company. The bank loan incurs interest at a fixed rate of 3.13% per annum. The loan is due to mature in August 2031.

 

Also included within bank loans is an amount of £200,000 (2023: £300,000) in respect of a Coronavirus Business Interruption Loan. The bank loan is secured by a first legal charge over the leasehold property of the company. The bank loan incurs interest at a rate of 2.89% per annum over Base Rate. The loan is due to mature in May 2026.

22
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
135,030
246,585
-
0
-
0
In two to five years
36,577
173,596
-
0
-
0
171,607
420,181
-
-

The finance liabilities are secured on the fixed assets acquired.

23
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
681,931
658,756
Investments
996
996
682,927
659,752
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 June 2023
659,752
-
Charge to profit or loss
23,175
-
Liability at 31 May 2024
682,927
-
ADS GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 32 -
24
Government grants
Group
Company
2024
2023
2024
2023
£
£
£
£
Arising from government grants
103,084
141,084
-
-

Deferred income is included in the financial statements as follows:

Current liabilities
33,833
38,000
-
0
-
0
Non-current liabilities
69,251
103,084
-
0
-
0
103,084
141,084
-
-
25
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
201,183
192,313

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. At 31 May 2024 there were contributions payable of £36,573 (2023: £30,478).

26
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
18,400
18,400
18,400
18,400
27
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
341,026
341,492
-
-
Between two and five years
825,940
1,099,209
-
-
In over five years
-
1,627
-
-
1,166,966
1,442,328
-
-
ADS GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 33 -
28
Capital commitments

Amounts contracted for but not provided in the financial statements:

Group
Company
2024
2023
2024
2023
£
£
£
£
Acquisition of tangible fixed assets
42,227
-
-
-
29
Related party transactions
Transactions with related parties

During the year the group entered into the following transactions with related parties:

Sales
Sales
Purchases
Purchases
2024
2023
2024
2023
£
£
£
£
Group
Entities over which the group has control, joint control or significant influence
622
1,345
15,080
20,748

At the year end, a balance of £56,197 (2023: £72,758) was due to the shareholders. This balance is included in other creditors in note 19.

Other information

The company has taken advantage of the reduced disclosure exemption available under Financial Reporting Standard 102 relating to the disclosure of related party transactions between wholly owned group companies.

 

No other transactions with related parties were undertaken such as are required to be disclosed Financial Reporting Standard 102.

30
Directors' transactions

Dividends totalling £nil (2023: £12,014) were paid in the year in respect of shares held by the company's directors.

Advances or credits have been granted by the group to its directors as follows:

Description
Opening balance
Amounts repaid
Closing balance
£
£
£
Total
42,372
(2,817)
39,555
42,372
(2,817)
39,555
31
Controlling party

Mr D Patterson, by way of his shareholding, is the ultimate controlling party.

ADS GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 34 -
32
Cash generated from group operations
2024
2023
£
£
Profit after taxation
294,842
255,883
Adjustments for:
Taxation charged
68,979
83,244
Finance costs
111,476
90,399
Investment income
(23,231)
(9,270)
Gain on disposal of tangible fixed assets
-
(430)
Fair value gain on investment properties
(475,773)
-
0
Depreciation and impairment of tangible fixed assets
720,361
720,445
Other gains and losses
(9,562)
-
Movements in working capital:
Decrease/(increase) in stocks
304,533
(57,851)
(Increase)/decrease in debtors
(262,392)
435,496
Increase/(decrease) in creditors
30,640
(193,873)
Decrease in deferred income
(38,000)
(38,000)
Cash generated from operations
721,873
1,286,043
33
Analysis of changes in net funds - group
1 June 2023
Cash flows
31 May 2024
£
£
£
Cash at bank and in hand
1,433,814
(42,564)
1,391,250
Bank overdrafts
-
0
(51,275)
(51,275)
1,433,814
(93,839)
1,339,975
Borrowings excluding overdrafts
(881,625)
162,874
(718,751)
Obligations under finance leases
(420,181)
248,574
(171,607)
132,008
317,609
449,617
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