Company registration number 10172086 (England and Wales)
EVOLUTION-24 LIMITED AND ITS SUBSIDIARIES
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
EVOLUTION-24 LIMITED AND ITS SUBSIDIARIES
COMPANY INFORMATION
Directors
D Exton
C Hammond
Company number
10172086
Registered office
Westpoint
Lynch Wood
Peterborough
Cambridgeshire
United Kingdom
PE2 6FZ
Auditor
Azets Audit Services
Thorpe House
93 Headlands
Kettering
Northamptonshire
United Kingdom
NN15 6BL
EVOLUTION-24 LIMITED AND ITS SUBSIDIARIES
CONTENTS
Page
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 31
EVOLUTION-24 LIMITED AND ITS SUBSIDIARIES
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 1 -

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

Review of the business

The results for the group for the year ending 31 May 2024 were in line with the directors' expectations. In addition to this, Lovells (Peterborough) Ltd was acquired by Steer Automotive Group on 1 February 2024.

On behalf of the board

C Hammond
Director
24 February 2025
EVOLUTION-24 LIMITED AND ITS SUBSIDIARIES
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 2 -

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

Principal activities

The principal activity of the company continued to be that of an auto accident repair centre and body shop.

Results and dividends

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

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:

D Exton
C Hammond
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.

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.

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
C Hammond
Director
24 February 2025
EVOLUTION-24 LIMITED AND ITS SUBSIDIARIES
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MAY 2024
- 3 -

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

 

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

 

 

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

EVOLUTION-24 LIMITED AND ITS SUBSIDIARIES
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF EVOLUTION-24 LIMITED AND ITS SUBSIDIARIES
- 4 -
Opinion

We have audited the financial statements of Evolution-24 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:

EVOLUTION-24 LIMITED AND ITS SUBSIDIARIES
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EVOLUTION-24 LIMITED AND ITS SUBSIDIARIES
- 5 -
Matters on which we are required to report by exception

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

 

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

Responsibilities of directors

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

Auditor's responsibilities for the audit of the financial statements

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

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

EVOLUTION-24 LIMITED AND ITS SUBSIDIARIES
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EVOLUTION-24 LIMITED AND ITS SUBSIDIARIES
- 6 -

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

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

 

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

 

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

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Use of our report

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

Richard Monkhouse (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
24 February 2025
Chartered Accountants
Statutory Auditor
Thorpe House
93 Headlands
Kettering
Northamptonshire
United Kingdom
NN15 6BL
EVOLUTION-24 LIMITED AND ITS SUBSIDIARIES
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MAY 2024
- 7 -
Continuing
Discontinued
31 May
Continuing
Discontinued
31 May
operations
operations
2024
operations
operations
2023
Notes
£
£
£
£
£
£
Turnover
3
-
14,849,170
14,849,170
-
16,952,838
16,952,838
Cost of sales
-
(9,751,926)
(9,751,926)
-
(11,343,577)
(11,343,577)
Gross profit
-
5,097,244
5,097,244
-
5,609,261
5,609,261
Administrative expenses
(44,088)
(4,422,164)
(4,466,252)
353,300
(4,468,145)
(4,114,845)
Other operating income
264,354
149,477
413,831
-
159,225
159,225
Operating profit
6
220,266
824,557
1,044,823
353,300
1,300,341
1,653,641
Interest receivable and similar income
8
237
-
237
-
-
-
Interest payable and similar expenses
9
(174,045)
(41,851)
(215,896)
(88,139)
(133,943)
(222,082)
Amounts written off investments
10
6,075,529
-
6,075,529
-
(1,375)
(1,375)
Profit before taxation
6,121,987
782,706
6,904,693
265,161
1,165,023
1,430,184
Tax on profit
11
(9,311)
(254,360)
(263,671)
(52,940)
(279,605)
(332,545)
Profit for the financial year
6,112,676
528,346
6,641,022
212,221
885,418
1,097,639
Profit for the financial year is all attributable to the owners of the parent company.
EVOLUTION-24 LIMITED AND ITS SUBSIDIARIES
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2024
- 8 -
2024
2023
£
£
Profit for the year
6,641,022
1,097,639
Other comprehensive income
-
-
Total comprehensive income for the year
6,641,022
1,097,639
Total comprehensive income for the year is all attributable to the owners of the parent company.
EVOLUTION-24 LIMITED AND ITS SUBSIDIARIES
GROUP BALANCE SHEET
AS AT
31 MAY 2024
31 May 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
14
6,197,024
7,078,337
Current assets
Stocks
17
-
781,254
Debtors
18
706,766
2,363,319
Cash at bank and in hand
3,377,154
496,098
4,083,920
3,640,671
Creditors: amounts falling due within one year
19
(320,097)
(4,038,110)
Net current assets/(liabilities)
3,763,823
(397,439)
Total assets less current liabilities
9,960,847
6,680,898
Creditors: amounts falling due after more than one year
20
-
(3,105,468)
Provisions for liabilities
Deferred tax liability
24
-
0
255,605
-
(255,605)
Net assets
9,960,847
3,319,825
Capital and reserves
Called up share capital
27
30,204
30,204
Profit and loss reserves
9,930,643
3,289,621
Total equity
9,960,847
3,319,825
The financial statements were approved by the board of directors and authorised for issue on 24 February 2025 and are signed on its behalf by:
24 February 2025
C Hammond
Director
Company registration number 10172086 (England and Wales)
EVOLUTION-24 LIMITED AND ITS SUBSIDIARIES
COMPANY BALANCE SHEET
AS AT 31 MAY 2024
31 May 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
15
200
30,200
Current assets
Debtors
18
8,877,248
4
Creditors: amounts falling due within one year
19
(9,743)
-
Net current assets
8,867,505
4
Net assets
8,867,705
30,204
Capital and reserves
Called up share capital
27
30,204
30,204
Profit and loss reserves
8,837,501
-
Total equity
8,867,705
30,204

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 £8,837,501 (2023 - £0 profit).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 24 February 2025 and are signed on its behalf by:
24 February 2025
C Hammond
Director
Company registration number 10172086 (England and Wales)
EVOLUTION-24 LIMITED AND ITS SUBSIDIARIES
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024
- 11 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 June 2022
30,204
2,191,982
2,222,186
Year ended 31 May 2023:
Profit and total comprehensive income
-
1,097,639
1,097,639
Balance at 31 May 2023
30,204
3,289,621
3,319,825
Year ended 31 May 2024:
Profit and total comprehensive income
-
6,641,022
6,641,022
Balance at 31 May 2024
30,204
9,930,643
9,960,847
EVOLUTION-24 LIMITED AND ITS SUBSIDIARIES
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024
- 12 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 June 2022
30,204
-
0
30,204
Year ended 31 May 2023:
Profit and total comprehensive income for the year
-
-
-
0
Balance at 31 May 2023
30,204
-
0
30,204
Year ended 31 May 2024:
Profit and total comprehensive income
-
8,837,501
8,837,501
Balance at 31 May 2024
30,204
8,837,501
8,867,705
EVOLUTION-24 LIMITED AND ITS SUBSIDIARIES
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
31
(2,218,420)
2,052,676
Interest paid
(215,896)
(222,082)
Income taxes refunded/(paid)
65,668
(45,911)
Net cash (outflow)/inflow from operating activities
(2,368,648)
1,784,683
Investing activities
Purchase of tangible fixed assets
(1,271,661)
(597,565)
Proceeds from disposal of tangible fixed assets
564,680
-
Proceeds from disposal of subsidiaries, net of cash disposed
9,282,804
-
Repayment of loans
(134,722)
(3,328)
Interest received
237
-
0
Net cash generated from/(used in) investing activities
8,441,338
(600,893)
Financing activities
Repayment of borrowings
223,041
-
Repayment of bank loans
(2,928,969)
(361,473)
Payment of finance leases obligations
(107,959)
(14,100)
Net cash used in financing activities
(2,813,887)
(375,573)
Net increase in cash and cash equivalents
3,258,803
808,217
Cash and cash equivalents at beginning of year
111,811
(696,406)
Cash and cash equivalents at end of year
3,370,614
111,811
Relating to:
Cash at bank and in hand
3,479,258
496,098
Bank overdrafts included in creditors payable within one year
(108,644)
(384,287)
EVOLUTION-24 LIMITED AND ITS SUBSIDIARIES
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
- 14 -
1
Accounting policies
Company information

Evolution-24 Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Westpoint, Lynch Wood, Peterborough, Cambridgeshire, PE2 6FZ.

 

The group consists of Evolution-24 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.

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.

EVOLUTION-24 LIMITED AND ITS SUBSIDIARIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 15 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Evolution-24 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.

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.

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.

EVOLUTION-24 LIMITED AND ITS SUBSIDIARIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 16 -
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.

 

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:

Freehold land and buildings
Nil
Leasehold land and buildings
2% straight line
Plant and equipment
10% straight line
Fixtures and fittings
20% straight line
Computers
20% straight line
Motor vehicles
20% straight line

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.

EVOLUTION-24 LIMITED AND ITS SUBSIDIARIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 17 -

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.

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 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.

EVOLUTION-24 LIMITED AND ITS SUBSIDIARIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 18 -
1.10
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

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

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

1.11
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.

1.12
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.

EVOLUTION-24 LIMITED AND ITS SUBSIDIARIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 19 -
Impairment of financial assets

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

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

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

Derecognition of financial assets

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

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

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

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.

EVOLUTION-24 LIMITED AND ITS SUBSIDIARIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 20 -
Derecognition of financial liabilities

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

1.13
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.

1.14
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.

1.15
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.

1.16
Retirement benefits

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

EVOLUTION-24 LIMITED AND ITS SUBSIDIARIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 21 -
1.17
Leases

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

 

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

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

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.18
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.

1.19
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
£
£
Other revenue
Interest income
237
-
Grants received
-
31,303
EVOLUTION-24 LIMITED AND ITS SUBSIDIARIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 22 -
4
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
5,550
5,250
Audit of the financial statements of the company's subsidiaries
37,050
15,750
42,600
21,000
5
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
377
211
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
4,993,929
5,633,924
-
0
-
0
Social security costs
486,136
526,976
-
-
Pension costs
700,172
117,279
-
0
-
0
6,180,237
6,278,179
-
0
-
0
6
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange gains
-
(6)
Government grants
-
(31,303)
Depreciation of owned tangible fixed assets
208,349
177,072
Depreciation of tangible fixed assets held under finance leases
-
71,214
Loss on disposal of tangible fixed assets
11,404
-
Operating lease charges
269,932
216,918
EVOLUTION-24 LIMITED AND ITS SUBSIDIARIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 23 -
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
116,000
114,045
Company pension contributions to defined contribution schemes
302,261
2,642
418,261
116,687
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
237
-
0
9
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
34,080
207,084
Interest on finance leases and hire purchase contracts
17,911
14,998
Other interest
163,905
-
Total finance costs
215,896
222,082
10
Amounts written off investments
2024
2023
£
£
Gain/(loss) on disposal of investments held at fair value
-
(1,375)
Other gains and losses
6,075,529
-
6,075,529
(1,375)
11
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
260,538
266,538
Deferred tax
Origination and reversal of timing differences
3,133
66,007
Total tax charge
263,671
332,545
EVOLUTION-24 LIMITED AND ITS SUBSIDIARIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
11
Taxation
(Continued)
- 24 -

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

2024
2023
£
£
Profit before taxation
6,904,693
1,430,184
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
1,726,173
357,546
Tax effect of expenses that are not deductible in determining taxable profit
-
0
377
Effect of change in corporation tax rate
-
(66,713)
Permanent capital allowances in excess of depreciation
53,248
(24,672)
Deferred tax charge
3,133
66,007
Gain on disposal of subsidiary
(1,518,883)
-
0
Taxation charge
263,671
332,545
12
Discontinued operations

On 1 February 2024 the company sold its subsidiary Lovells (Peterborough) Limited. A profit of £8,837,431 arose on the disposal, being the proceeds of the sale, less the carrying amount of the business assets and attributable goodwill.

13
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 June 2023
200,966
Disposals
(200,966)
At 31 May 2024
-
0
Amortisation and impairment
At 1 June 2023
200,966
Disposals
(200,966)
At 31 May 2024
-
0
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.
EVOLUTION-24 LIMITED AND ITS SUBSIDIARIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 25 -
14
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Assets under construction
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
£
£
Cost
At 1 June 2023
5,636,227
272,033
-
0
1,791,865
564,277
-
0
653,339
8,917,741
Additions
694,553
179,362
80,833
36,504
18,358
2,854
259,197
1,271,661
Disposals
(380,887)
(451,395)
-
0
(1,828,369)
(582,635)
-
0
(736,655)
(3,979,941)
At 31 May 2024
5,949,893
-
0
80,833
-
0
-
0
2,854
175,881
6,209,461
Depreciation and impairment
At 1 June 2023
-
0
6,586
-
0
1,005,308
374,339
-
0
453,171
1,839,404
Depreciation charged in the year
-
0
10,302
-
0
95,372
47,903
56
54,716
208,349
Eliminated in respect of disposals
-
0
(16,888)
-
0
(1,100,680)
(422,242)
-
0
(495,506)
(2,035,316)
At 31 May 2024
-
0
-
0
-
0
-
0
-
0
56
12,381
12,437
Carrying amount
At 31 May 2024
5,949,893
-
0
80,833
-
0
-
0
2,798
163,500
6,197,024
At 31 May 2023
5,636,227
265,447
-
0
786,557
189,938
-
0
200,168
7,078,337
The company had no tangible fixed assets at 31 May 2024 or 31 May 2023.
EVOLUTION-24 LIMITED AND ITS SUBSIDIARIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
14
Tangible fixed assets
(Continued)
- 26 -

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

Group
Company
2024
2023
2024
2023
£
£
£
£
Plant and equipment
-
0
160,854
-
0
-
0
Motor vehicles
-
0
134,725
-
0
-
0
-
295,579
-
-
15
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
16
-
0
-
0
200
30,200
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 June 2023
30,200
Disposals
(30,000)
At 31 May 2024
200
Carrying amount
At 31 May 2024
200
At 31 May 2023
30,200
16
Subsidiaries

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

Name of undertaking
Address
Class of
% Held
shares held
Direct
Monarch Services Limited
1
Ordinary
100.00
Exham 24 Limited
1
Ordinary
100.00

Registered office addresses (all UK unless otherwise indicated):

1
Westpoint, Lynch Wood, Peterborough, Cambridgeshire, PE2 6FZ
EVOLUTION-24 LIMITED AND ITS SUBSIDIARIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 27 -
17
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
-
781,254
-
-
18
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
1
1,914,190
1
-
0
Amounts owed by group undertakings
-
-
8,195,058
4
Amounts owed by undertakings in which the company has a participating interest
433
-
-
-
Other debtors
689,488
203,009
682,189
-
0
Prepayments and accrued income
16,844
246,120
-
0
-
0
706,766
2,363,319
8,877,248
4
19
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
21
6,541
661,553
-
0
-
0
Obligations under finance leases
22
-
0
87,835
-
0
-
0
Trade creditors
163,710
1,793,626
-
0
-
0
Amounts owed to group undertakings
3,350
-
0
-
0
-
0
Corporation tax payable
9,311
266,538
17
-
0
Other taxation and social security
33,406
721,855
-
-
Deferred income
25
4,228
7,200
-
0
-
0
Other creditors
9,756
214,520
9,726
-
0
Accruals and deferred income
89,795
284,983
-
0
-
0
320,097
4,038,110
9,743
-
0
20
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
21
-
0
2,651,704
-
0
-
0
Obligations under finance leases
22
-
0
182,931
-
0
-
0
Other creditors
-
0
270,833
-
0
-
0
-
3,105,468
-
-
EVOLUTION-24 LIMITED AND ITS SUBSIDIARIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 28 -
21
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
1
2,928,970
-
0
-
0
Bank overdrafts
6,540
384,287
-
0
-
0
6,541
3,313,257
-
-
Payable within one year
6,541
661,553
-
0
-
0
Payable after one year
-
0
2,651,704
-
0
-
0

The bank overdraft is secured by a legal charge dated 26th June 2001 and by a fixed and floating charge over the assets of the company dated 1st March 2001 and certain guarantees given by the directors. Hire purchase and lease contracts are secured on plant and machinery.

22
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
-
0
87,835
-
0
-
0
In two to five years
-
0
182,931
-
0
-
0
-
270,766
-
-

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.

EVOLUTION-24 LIMITED AND ITS SUBSIDIARIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 29 -
23
Financial instruments
Group
Company
2024
2023
2024
2023
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost:
Cash at bank
3,377,154
496,098
-
-
Trade debtors
1
1,914,190
1
-
Other debtors
689,488
203,009
682,189
-
Loan to connected company
-
-
8,195,058
4
4,066,643
2,613,297
8,877,248
4
Equity instruments measured at cost less impairment:
Unlisted investments
-
-
30,100
30,100
Carrying amount of financial liabilities
Measured at amortised cost:
Bank loans and overdrafts
6,540
661,553
Trade creditors
163,710
1,793,626
-
-
Accruals
89,795
284,983
-
-
Other creditors
9,756
214,520
9,726
-
263,261
2,293,129
9,726
-
24
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
-
255,605
The company has no deferred tax assets or liabilities.
EVOLUTION-24 LIMITED AND ITS SUBSIDIARIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
24
Deferred taxation
(Continued)
- 30 -
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 June 2023
255,605
-
Charge to profit or loss
3,133
-
Transfer on disposal
(258,738)
-
Asset at 31 May 2024
-
-
25
Deferred income
Group
Company
2024
2023
2024
2023
£
£
£
£
Arising from government grants
-
7,200
-
-
Other deferred income
4,228
-
-
-
4,228
7,200
-
-
26
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
700,172
117,279

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.

27
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
30,204
30,204
30,204
30,204
28
Disposals

On 1 February 2024 the group disposed of its 100% holding in Lovells (Peterborough) Limited. Included in these financial statements are profits of £8,837,431 arising from the company's interests in Lovells (Peterborough) Limited up to the date of its disposal.

 

EVOLUTION-24 LIMITED AND ITS SUBSIDIARIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 31 -
29
Related party transactions
Transactions with related parties

During the year the group contributed £300,500 (2023: £nil) to the pension schemes of directors' spouses.

30
Exemption from audit by parental guarantee

The following subsidiaries are exempt from the requirements of the Companies Act 2006 relating to the audit of individual financial statements by virtue of s479A:

 

Company name                        Company number

Monarch Services Ltd                    05376402

Exham 24 Ltd (previously Pronto Care East Ltd)        09794498

31
Cash (absorbed by)/generated from group operations
2024
2023
£
£
Profit for the year after tax
6,641,022
1,097,639
Adjustments for:
Taxation charged
263,671
332,545
Finance costs
215,896
222,082
Investment income
(237)
-
0
Loss on disposal of tangible fixed assets
11,404
-
Depreciation and impairment of tangible fixed assets
208,349
248,286
Other gains and losses
(6,075,529)
1,375
Pension scheme non-cash movement
(26,749)
9,303
Movements in working capital:
Decrease/(increase) in stocks
22,496
(250,969)
Increase in debtors
(3,238,797)
(569,150)
(Decrease)/increase in creditors
(236,974)
954,366
(Decrease)/increase in deferred income
(2,972)
7,199
Cash (absorbed by)/generated from operations
(2,218,420)
2,052,676
32
Analysis of changes in net funds/(debt) - group
1 June 2023
Cash flows
31 May 2024
£
£
£
Cash at bank and in hand
496,098
2,983,160
3,479,258
Bank overdrafts
(384,287)
275,643
(108,644)
111,811
3,258,803
3,370,614
Borrowings excluding overdrafts
(2,928,970)
2,928,969
(1)
Obligations under finance leases
(270,766)
270,766
-
(3,087,925)
6,458,538
3,370,613
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