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Registration number: 09555573

The George Group Limited

Annual Report and Financial Statements

For the period from 30 June 2023 to 30 June 2024

 

The George Group Limited

Contents

Company Information

1

Strategic Report

2

Directors' Report

3 to 4

Statement of Directors' Responsibilities

5

Independent Auditor's Report

6 to 8

Profit and Loss Account

9

Balance Sheet

10

Statement of Changes in Equity

11

Statement of Cash Flows

12

Notes to the Financial Statements

13 to 25

 

The George Group Limited

Company Information

Directors

F J Baird

L S Belton

C M Cory

A M Davis

E R Fielding

C P Hayes

M O Hollywood

T A Oxtoby

R B Pearson

G L Roberts

M E S Russell

L A W Sharpe

A J Thomsett

C J Warren

B F Yates

Company secretary

M E S Russell

Registered office

The George Veterinary Hospital
High Street
Malmesbury
Wiltshire
SN16 9AU

Auditors

Hazlewoods LLP
Windsor House
Bayshill Road
Cheltenham
GL50 3AT

 

The George Group Limited

Strategic Report for the Period from 30 June 2023 to 30 June 2024

The directors present their strategic report for the period from 30 June 2023 to 30 June 2024. The comparative period is for the year ended 29 June 2023.

Principal activity

The principal activity of the company is the provision of veterinary services.

Fair review of the business

The results for the period, which are set out in the profit and loss account, show turnover of £12,411,808 (29 June 2023 - £11,615,335) and an operating profit of £2,922,366 (29 June 2023 - £2,655,368). At 30 June 2024, the company had net assets of £3,135,221 (29 June 2023 - £3,412,162). The directors consider the performance for the period and the financial position at the period end to be satisfactory.

Principal risks and uncertainties

The management of the business and the execution of the company's strategy are subject to a number of risks. The key business risks and uncertainties affecting the company are considered to relate to ongoing compliance with current and future legislation affecting the sector.

Approved by the Board on 24 March 2025 and signed on its behalf by:


L S Belton
Director

 

The George Group Limited

Directors' Report for the Period from 30 June 2023 to 30 June 2024

The directors present their report and the financial statements for the period from 30 June 2023 to 30 June 2024The comparative period is for the year ended 29 June 2023.

Directors of the company

The directors who held office during the period were as follows:

F J Baird

L S Belton

C M Cory

A M Davis

E R Fielding (appointed 1 August 2023)

C P Hayes

M O Hollywood

T A Oxtoby

R B Pearson

G L Roberts

M E S Russell

L A W Sharpe

A J Thomsett

C J Warren

B F Yates

Future developments

The external commercial environment is expected to remain competitive in the remainder of 2023. However, the directors remain confident that the company will improve its current level of performance in the future and will continue to trade as a going concern.

Financial instruments

Objectives and policies

The board constantly monitors the company's trading results and revise projections as appropriate to ensure that the company can meet its future obligations as they fall due.

Price risk, credit risk, liquidity risk and cash flow risk

The company is exposed to the usual credit and cash flow risks associated with selling on credit and manages this through credit control procedures.

In accordance with the Financial Reporting Council's 'Going Concern and Liquidity Risk: Guidance for Directors of UK Companies 2009', the directors of all companies are now required to provide disclosures regarding the adoption of the going concern basis of accounting.

The company has sufficient resources available and the directors have prepared forecasts for the next 12 months that indicate that this will continue to be the case and that these cash flows will be sufficient for the company to meet its financing commitments as they fall due. The directors therefore have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and have continued to adopt the going concern basis in preparing the financial statements.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

 

The George Group Limited

Directors' Report for the Period from 30 June 2023 to 30 June 2024

Reappointment of auditors

Hazlewoods LLP have expressed their willingness to continue in office.

Approved by the Board on 24 March 2025 and signed on its behalf by:


L S Belton
Director

 

The George Group Limited

Statement of Directors' Responsibilities

The directors are responsible for preparing the Strategic Report, Directors' 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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards has been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

The George Group Limited

Independent Auditor's Report to the Members of The George Group Limited

Opinion

We have audited the financial statements of The George Group Limited (the 'company') for the period from 30 June 2023 to 30 June 2024, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the company's affairs as at 30 June 2024 and of its profit for the period then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

 

The George Group Limited

Independent Auditor's Report to the Members of The George Group Limited

Opinion on other matter prescribed by the Companies Act 2006

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

the information given in the Strategic Report and Directors' Report for the financial period for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

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

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page 5, 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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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.

Extent to which the audit was 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, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We considered the nature of the company’s industry and its control environment and reviewed the company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.

We obtained an understanding of the legal and regulatory framework that the company operates in and identified the key laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements, including the UK Companies Act and tax legislation, and, those that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.

We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

 

The George Group Limited

Independent Auditor's Report to the Members of The George Group Limited

In common with all audits conducted in accordance with ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override of controls. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

In addition to the above, our procedures to respond to the risks identified included the following:

reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatements due to fraud;

enquiring of management concerning actual and potential litigation and claims and instances of non-compliance with laws and regulations; and

reading minutes of meetings of those charged with governance.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities is available on the Financial Reporting Council's website at 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.





Martin Howard (Senior Statutory Auditor)
For and on behalf of Hazlewoods LLP, Statutory Auditor

Windsor House
Bayshill Road
Cheltenham
GL50 3AT

24 March 2025

 

The George Group Limited

Profit and Loss Account for the Period from 30 June 2023 to 30 June 2024

Note

30 June 2023 to 30 June 2024
 £

1 July 2022 to 29 June 2023
 £

Turnover

3

12,411,808

11,615,335

Cost of sales

 

(4,558,939)

(4,174,591)

Gross profit

 

7,852,869

7,440,744

Administrative expenses

 

(5,052,113)

(4,845,998)

Other operating income

4

121,610

60,622

Operating profit

5

2,922,366

2,655,368

Interest payable and similar charges

6

(45,471)

(17,287)

Profit before tax

 

2,876,895

2,638,081

Taxation

10

(728,983)

(546,440)

Profit for the financial period

 

2,147,912

2,091,641

The above results were derived from continuing operations.

The company has no other comprehensive income for the period.

 

The George Group Limited

(Registration number: 09555573)
Balance Sheet as at 30 June 2024

Note

30 June 2024
 £

29 June 2023
 £

Fixed Assets

 

Intangible assets

11

424,836

463,640

Tangible assets

12

2,541,837

2,593,313

Investments

13

622,735

622,431

 

3,589,408

3,679,384

Current assets

 

Stocks

14

441,640

349,973

Debtors

15

1,909,311

1,639,470

Cash at bank and in hand

 

469,651

6,059

 

2,820,602

1,995,502

Creditors: Amounts falling due within one year

17

(2,718,085)

(1,676,171)

Net current assets

 

102,517

319,331

Total assets less current liabilities

 

3,691,925

3,998,715

Creditors: Amounts falling due after more than one year

17

(500,900)

(520,790)

Provisions for liabilities

10

(55,804)

(65,763)

Net assets

 

3,135,221

3,412,162

Capital and reserves

 

Called up share capital

20

560

560

Other reserves

760,065

760,065

Profit and loss account

2,374,596

2,651,537

Total equity

 

3,135,221

3,412,162

Approved and authorised by the Board on 24 March 2025 and signed on its behalf by:
 


L S Belton
Director

 

The George Group Limited

Statement of Changes in Equity for the Period from 30 June 2023 to 30 June 2024

Share capital
£

Merger reserve
£

Profit and loss account
£

Total
£

At 30 June 2023

560

760,065

2,651,537

3,412,162

Profit for the period

-

-

2,147,912

2,147,912

Dividends

-

-

(2,424,853)

(2,424,853)

At 30 June 2024

560

760,065

2,374,596

3,135,221

Share capital
£

Merger reserve
£

Profit and loss account
£

Total
£

At 1 July 2022

560

760,065

2,674,385

3,435,010

Profit for the period

-

-

2,091,641

2,091,641

Dividends

-

-

(2,114,489)

(2,114,489)

At 29 June 2023

560

760,065

2,651,537

3,412,162

 

The George Group Limited

Statement of Cash Flows for the Period from 30 June 2023 to 30 June 2024

Note

30 June 2023 to 30 June 2024
£

1 July 2022 to
29 June 2023
£

Cash flows from operating activities

Profit for the period

 

2,147,912

2,091,641

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

5

189,946

208,789

Finance costs

6

45,471

17,287

Income tax expense

10

728,983

546,440

Foreign exchange gains/losses

 

37

(185)

 

3,112,349

2,863,972

Working capital adjustments

 

Increase in stocks

14

(91,667)

(59,926)

(Increase)/decrease in debtors

15

(269,841)

95,023

Increase/(decrease) in creditors

17

77,911

(31,561)

Cash generated from operations

 

2,828,752

2,867,508

Income taxes paid

10

(647,743)

(458,835)

Net cash flow from operating activities

 

2,181,009

2,408,673

Cash flows from investing activities

 

Acquisitions of tangible assets

(100,166)

(298,519)

Proceeds from sale of tangible assets

 

500

17,571

Acquisition of investments in jointly controlled entities

13

(304)

(622,431)

Net cash flows from investing activities

 

(99,970)

(903,379)

Cash flows from financing activities

 

Interest paid

6

(45,471)

(17,287)

Net receipt of other borrowing

 

1,013,461

45,691

Net receipt of bank borrowing

 

-

542,697

Payment of bank borrowings

 

(20,898)

-

Dividends paid

22

(2,424,853)

(2,114,489)

Net cash flows from financing activities

 

(1,477,761)

(1,543,388)

Net increase/(decrease) in cash and cash equivalents

 

603,278

(38,094)

Cash and cash equivalents at 29 June 2023 / 30 June 2022

 

(133,627)

(95,533)

Cash and cash equivalents at 30 June 2024 / 29 June 2023

24

469,651

(133,627)

See note 16 for details on cash and cash equivalents at 30 June 2024.

 

The George Group Limited

Notes to the Financial Statements for the Period from 30 June 2023 to 30 June 2024

 

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
The George Veterinary Hospital
High Street
Malmesbury
Wiltshire
SN16 9AU

 

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Disclosure of long or short period

The financial statements cover a period of one year and one day. The accounting period was lengthened to bring the year end in line with the June month end.

Going concern

After reviewing the company's current forecasts and projections, together with the facilities available to the company, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Judgements and estimation uncertainty

These financial statements do not contain any significant judgements or estimation uncertainty.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company. The company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the company's activities.

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.

 

The George Group Limited

Notes to the Financial Statements for the Period from 30 June 2023 to 30 June 2024

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the initial transaction dates.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Freehold land and buildings

0% of cost

Plant and machinery

15% of cost

Motor vehicles

25% of written down value

Office equipment

33.3% of cost

Property improvements

Over the length of the lease


Freehold property is not depreciated. The company has a regular policy of maintenance and repair on its freehold properties. The directors annually review the carrying value of the freehold properties. The directors consider this appropriate on the basis that the residual value of the properties are not materially different to their carrying value and therefore depreciation would be immaterial.

Intangible assets

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Goodwill

5% of cost

 

The George Group Limited

Notes to the Financial Statements for the Period from 30 June 2023 to 30 June 2024

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

 

The George Group Limited

Notes to the Financial Statements for the Period from 30 June 2023 to 30 June 2024

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments

Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.


Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.

For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

 

3

Revenue

The total turnover of the company has been derived from its principal activity wholly undertaken in the United Kingdom.

 

The George Group Limited

Notes to the Financial Statements for the Period from 30 June 2023 to 30 June 2024

 

4

Other operating income

The analysis of the company's other operating income for the period is as follows:

30 June 2023 to 30 June 2024
£

1 July 2022 to
29 June 2023
£

Other income

22,208

11,508

Rent receivable

23,146

24,017

Profit share from investments

76,256

25,097

121,610

60,622

 

5

Operating profit

Arrived at after charging/(crediting):

30 June 2023 to 30 June 2024
 £

1 July 2022 to 29 June 2023
 £

Depreciation expense

149,162

166,870

Amortisation expense

38,804

38,804

Foreign exchange losses/(gains)

37

(185)

Operating lease expense - property

36,312

37,393

Loss on disposal of property, plant and equipment

1,980

3,115

 

6

Interest payable and similar expenses

30 June 2023 to 30 June 2024
£

1 July 2022 to
29 June 2023
£

Interest on bank overdrafts and borrowings

45,471

15,187

Interest expense on other finance liabilities

-

2,100

45,471

17,287

 

The George Group Limited

Notes to the Financial Statements for the Period from 30 June 2023 to 30 June 2024

 

7

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

30 June 2023 to 30 June 2024
 £

1 July 2022 to 29 June 2023
 £

Wages and salaries

3,145,924

2,998,946

Social security costs

285,236

267,746

Pension costs, defined contribution scheme

387,302

299,740

3,818,462

3,566,432

The average number of persons employed by the company (including directors) during the period, analysed by category was as follows:

30 June 2023 to 30 June 2024
 No.

1 July 2022 to 29 June 2023
 No.

Direct staff

77

71

Administration and support

46

43

123

114

 

8

Directors' remuneration

The directors' remuneration for the period was as follows:

30 June 2023 to 30 June
2024
£

1 July 2022 to
29 June 2023
£

Remuneration

468,326

438,158

Contributions paid to money purchase schemes

161,775

68,131

630,101

506,289

In respect of the highest paid director:

30 June 2023 to 30 June 2024
£

1 July 2022 to
29 June 2023
£

Remuneration

84,666

78,005

 

9

Auditors' remuneration

30 June 2023 to 30 June 2024
£

1 July 2022 to
30 June 2023
£

Audit of the financial statements

9,750

9,140


 

 

The George Group Limited

Notes to the Financial Statements for the Period from 30 June 2023 to 30 June 2024

 

10

Taxation

Tax charged/(credited) in the profit and loss account

30 June 2023 to 30 June 2024
 £

1 July 2022 to 29 June 2023
 £

Current taxation

UK corporation tax

741,178

537,371

UK corporation tax adjustment to prior periods

(2,236)

(1,147)

738,942

536,224

Deferred taxation

Arising from origination and reversal of timing differences

(9,959)

10,216

Tax expense in the income statement

728,983

546,440

The tax on profit before tax for the period is higher than the standard rate of corporation tax in the UK (2023 - higher than the standard rate of corporation tax in the UK) of 25% (2023 - 20.5%).

The differences are reconciled below:

30 June 2023 to 30 June 2024
£

1 July 2022 to 29 June 2023
£

Profit before tax

2,876,895

2,638,081

Corporation tax at standard rate

719,224

540,698

Effect of expense not deductible in determining taxable profit (tax loss)

2,530

2,618

Deferred tax expense relating to changes in tax rates or laws

-

1,840

Deferred tax credit from unrecognised temporary difference from a prior period

(2,236)

(1,147)

Tax increase from effect of capital allowances and depreciation

9,465

2,431

Total tax charge

728,983

546,440

Deferred tax

Deferred tax assets and liabilities

30 June 2024

Liability
£

Difference between accumulated depreciation and amortisation and capital allowances

55,804

29 June 2023

Liability
£

Difference between accumulated depreciation and amortisation and capital allowances

65,763

 

The George Group Limited

Notes to the Financial Statements for the Period from 30 June 2023 to 30 June 2024

 

11

Intangible assets

Goodwill
 £

Cost

At 29 June 2023 and at 30 June 2024

770,219

Amortisation

At 29 June 2023

306,579

Amortisation charge

38,804

At 30 June 2024

345,383

Carrying amount

At 30 June 2024

424,836

At 29 June 2023

463,640

 

12

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Total
£

Cost

At 29 June 2023

2,175,745

976,043

332,619

3,484,407

Additions

3,044

65,083

32,039

100,166

Disposals

-

(13,645)

(22,635)

(36,280)

At 30 June 2024

2,178,789

1,027,481

342,023

3,548,293

Depreciation

At 29 June 2023

37,221

694,802

159,071

891,094

Charge for the period

20,251

80,329

48,582

149,162

Eliminated on disposal

-

(13,645)

(20,155)

(33,800)

At 30 June 2024

57,472

761,486

187,498

1,006,456

Carrying amount

At 30 June 2024

2,121,317

265,995

154,525

2,541,837

At 29 June 2023

2,138,524

281,241

173,548

2,593,313

Included within the net book value of land and buildings above is £2,092,397 (2023 - £2,105,969) in respect of freehold land and buildings, and £28,920 (2023 - £32,555) in respect of short leasehold land and buildings.

 

The George Group Limited

Notes to the Financial Statements for the Period from 30 June 2023 to 30 June 2024

 

13

Investments

30 June 2024
£

29 June 2023
£

Investments in jointly controlled entities

622,735

622,431

Jointly controlled entities

£

Cost and carrying amount

At 29 June 2023

622,431

Additions

304

At 30 June 2024

622,735

At 29 June 2023

622,431

Details of undertakings

Details of the investments (including principal place of business) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

     

30 June 2024

29 June 2023

Jointly controlled entities

The Sidings Veterinary Practice LLP

Sheep Street, Cirencester, GL71QW

United Kingdom

Partnership

50%

50%

Jointly controlled entities

The Sidings Veterinary Practice LLP

The principal activity of The Sidings Veterinary Practice LLP is the provision of veterinary activities.

 

14

Stocks

30 June 2024
£

29 June 2023
£

Finished goods and consumables

441,640

349,973

 

The George Group Limited

Notes to the Financial Statements for the Period from 30 June 2023 to 30 June 2024

 

15

Debtors

Note

30 June 2024
 £

29 June 2023
 £

Trade debtors

 

1,479,075

1,260,537

Amounts owed by related parties

23

46,476

28,333

Other debtors

 

258,448

166,287

Prepayments

 

125,312

184,313

   

1,909,311

1,639,470

 

16

Cash and cash equivalents

30 June 2024
£

29 June 2023
£

Cash on hand

927

1,030

Cash at bank

468,724

5,029

469,651

6,059

Bank overdrafts

-

(139,686)

Cash and cash equivalents in statement of cash flows

469,651

(133,627)

 

17

Creditors

Note

30 June 2024
 £

29 June 2023
 £

Due within one year

 

Loans and borrowings

18

1,100,657

227,890

Trade creditors

 

762,106

678,490

Social security and other taxes

 

393,872

353,191

Other creditors

 

6,396

50,785

Accrued expenses

 

76,014

77,974

Corporation tax liability

 

379,040

287,841

 

2,718,085

1,676,171

Due after one year

 

Loans and borrowings

18

500,900

520,790

 

The George Group Limited

Notes to the Financial Statements for the Period from 30 June 2023 to 30 June 2024

 

18

Loans and borrowings

30 June 2024
£

29 June 2023
£

Current loans and borrowings

Bank loans

20,899

21,907

Bank overdrafts

-

139,686

Other borrowings

1,079,758

66,297

1,100,657

227,890

30 June 2024
£

29 June 2023
£

Non-current loans and borrowings

Bank loans

500,900

520,790

Other borrowings relate to director loan accounts which are interest free and considered repayable on demand.

 

19

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the period represents contributions payable by the company to the scheme and amounted to £387,302 (2023 - £299,740).

 

The George Group Limited

Notes to the Financial Statements for the Period from 30 June 2023 to 30 June 2024

 

20

Share capital

Allotted, called up and fully paid shares

 

30 June 2024

29 June 2023

 

No.

£

No.

£

Ordinary A shares of £0.10 each

640

64

640

64

Ordinary B shares of £0.10 each

796

80

791

79

Ordinary C shares of £0.10 each

200

20

200

20

Ordinary D shares of £0.10 each

280

28

280

28

Ordinary E shares of £0.10 each

640

64

640

64

Ordinary F shares of £0.10 each

640

64

640

64

Ordinary G shares of £0.10 each

640

64

640

64

Ordinary H shares of £0.10 each

280

28

229

23

Ordinary I shares of £0.10 each

420

42

420

42

Ordinary J shares of £0.10 each

168

17

168

17

Ordinary K shares of £0.10 each

224

22

224

22

Ordinary L shares of £0.10 each

280

28

280

28

Ordinary M shares of £0.10 each

168

17

224

22

Ordinary N shares of £0.10 each

224

22

224

22

 

5,600

560

5,600

560

On 20 July 2023, 51 Ordinary B shares where re-designated as 51 Ordinary H shares and 56 Ordinary M shares where re-designated as 56 Ordinary B shares, all of £0.10 each.

Rights, preferences and restrictions

The different classes of share referred to above carry separate rights to dividends but, in all other significant respects, rank pari passu.

 

21

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

30 June 2024
£

29 June 2023
£

Not later than one year

34,639

34,639

Later than one year and not later than five years

82,147

82,147

Later than five years

54,467

89,106

171,253

205,892

 

22

Dividends

30 June 2023
to 30 June 2024
 £

1 July 2022 to
29 June 2023
 £

Dividends paid

2,424,853

2,114,489

 

The George Group Limited

Notes to the Financial Statements for the Period from 30 June 2023 to 30 June 2024

 

23

Related party transactions

Key management personnel

The key management personnel are the directors of the company.

Summary of transactions with key management

As at 30 June 2024, the company owed £1,079,738 (29 June 2023: £65,992) to the directors of the company. These amounts are included in other borrowings. There are no formal repayment terms and no interest is due on the outstanding amounts.

As at 30 June 2024, the company was owed £46,476 (29 June 2023: £28,333) from The Sidings Veterinary Practice LLP, a partnership in which the company holds a 50% share. This amount is included within amounts owed by related parties.

 

 

24

Analysis of changes in net debt

At 29 June 2023
£

Cash flows
£

At 30 June 2024
£

Cash and cash equivalents

Cash

6,059

463,592

469,651

Overdrafts

(139,686)

139,686

-

(133,627)

603,278

469,651

Borrowings

Long term bank borrowings

520,790

(19,890)

500,900

Short term bank borrowings

21,907

(1,008)

20,899

542,697

(20,898)

521,799

 

409,070

582,380

991,450

 

25

Parent and ultimate parent undertaking

The company has no single controlling party.