Company registration number 10617652 (England and Wales)
LEEWAYS GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
LEEWAYS GROUP LIMITED
COMPANY INFORMATION
Directors
Mr L A T Walding
Mr A T G Walding
Mr A J Walding
Mrs L Walding
Company number
10617652
Registered office
Lobstock
Churcham
Gloucester
United Kingdom
GL2 8AN
Auditor
Azets Audit Services
Epsilon House
The Square
Gloucester Business Park
Gloucester
United Kingdom
GL3 4AD
LEEWAYS GROUP LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Group statement of income and retained earnings
7
Group balance sheet
8
Company balance sheet
9
Company statement of changes in equity
10
Group statement of cash flows
11
Notes to the financial statements
12 - 31
LEEWAYS GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -

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

Fair review of the business

We aim to present a balanced and comprehensive review of the development and performance of the group during the year and its position at the year end. Our review is consistent with the size and nature of the group and is written in the context of the risks and uncertainties we face.

 

The group has generated sales of £29.9m and profit before tax of £3.8m for the period. These results were in line with expectations.

 

The results for the financial year to 30 June 2024 reflect a strong performance, which is in line with expectations given the growing relationships with existing customers and acquisition of new customers. The group has secured contract wins which will ensure growth in core business moving forward. The fall in turnover is driven by a reduction in commodity pricing which has been passed through to our customers.

 

Significant investment has continued to be made in property, production machinery and sustainable initiatives during this period, which further increases the group’s production capabilities as well as helping to reduce our carbon footprint in line with our Sustainability Pledge.

Principal risks and uncertainties

The board has assessed the key risks to the group as follows:

 

Market Risk

The board monitors the state of the market segments that affect the group and evolves the business strategy as required. The main risk that the group is exposed to is fluctuations in commodity prices.

 

Financial risks are detailed below.

 

The group's financial instruments comprise cash at bank, overdraft, bank loans, hire purchase contracts and various items such as trade debtors, trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise adequate finance for the group's operations.

 

The main risks arising from the group's financial instruments are interest rate fluctuations and liquidity risk. It is the group's policy to finance its operations through a mixture of cash and borrowings and to review periodically the mix of these instruments with regard to the projected cash flow requirements of the group and an acceptable level of risk exposure.

Future developments

The group continues to explore new business opportunities and continues to invest in warehouse and manufacturing facilities along with further production machinery to assist growth. The group is also looking at investments to enable the production of more sustainable products and investment in renewable energy sources to help to further reduce its carbon footprint.

 

Key performance indicators

Group sales for the year were £29,869,607. Profit before tax has fallen from £4,340,671 to £3,796,941, the ongoing profitability has helped contribute towards an increase in net assets from £26,163,937 to £28,000,892.

 

Research and development

Research and development activities are ongoing to develop new products.

On behalf of the board

Mr A J Walding
Director
19 December 2024
LEEWAYS GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -

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

Principal activities

The principal activity of the company and group continued to be that of the production and supply of plastic packaging goods, the manufacture of wooden components and the retail of timber, and ancillary services.

 

The principal activity of the company for the year under review was that of a holding company.

Results and dividends

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

Ordinary dividends were paid amounting to £1,117,192. 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:

Mr L A T Walding
Mr A T G Walding
Mr A J Walding
Mrs L Walding
Statement of directors' responsibilities

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.

Strategic report

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

LEEWAYS GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -
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
Mr A J Walding
Director
19 December 2024
LEEWAYS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LEEWAYS GROUP LIMITED
- 4 -
Opinion

We have audited the financial statements of Leeways Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2024 which comprise the group statement of income and retained earnings, the group balance sheet, the company balance sheet, 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:

LEEWAYS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LEEWAYS GROUP LIMITED
- 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.

LEEWAYS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LEEWAYS GROUP LIMITED
- 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.

Claire Clift (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
19 December 2024
Chartered Accountants
Statutory Auditor
Epsilon House
The Square
Gloucester Business Park
Gloucester
United Kingdom
GL3 4AD
LEEWAYS GROUP LIMITED
GROUP STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 30 JUNE 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
29,869,607
32,272,788
Change in stocks of finished goods and in work in progress
(198,818)
231,260
Other operating income
714
714
Raw materials and consumables
(12,730,918)
(16,291,623)
Other external expenses
(2,539,637)
(2,368,021)
Staff costs
5
(4,097,276)
(3,609,739)
Depreciation and other amounts written off tangible and intangible fixed assets
4
(1,588,176)
(1,504,641)
Other operating expenses
(4,687,200)
(4,234,130)
Operating profit
4
4,028,296
4,496,608
Interest receivable and similar income
7
72,912
54,244
Interest payable and similar expenses
8
(304,267)
(210,181)
Profit before taxation
3,796,941
4,340,671
Tax on profit
9
(842,794)
(805,321)
Profit for the financial year
25
2,954,147
3,535,350
Retained earnings brought forward
16,708,937
13,852,325
Dividends
(1,117,192)
(678,738)
Retained earnings carried forward
18,545,892
16,708,937
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
LEEWAYS GROUP LIMITED
GROUP BALANCE SHEET
AS AT
30 JUNE 2024
30 June 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
11
3,523,549
3,794,591
Tangible assets
12
13,635,337
14,103,976
17,158,886
17,898,567
Current assets
Stocks
15
1,935,489
2,372,900
Debtors
16
11,118,697
12,708,175
Cash at bank and in hand
8,662,917
3,709,503
21,717,103
18,790,578
Creditors: amounts falling due within one year
17
(5,690,144)
(4,552,012)
Net current assets
16,026,959
14,238,566
Total assets less current liabilities
33,185,845
32,137,133
Creditors: amounts falling due after more than one year
18
(3,787,561)
(4,575,804)
Provisions for liabilities
Deferred tax liability
22
1,397,392
1,397,392
(1,397,392)
(1,397,392)
Net assets
28,000,892
26,163,937
Capital and reserves
Called up share capital
24
9,455,000
9,455,000
Profit and loss reserves
25
18,545,892
16,708,937
Total equity
28,000,892
26,163,937
The financial statements were approved by the board of directors and authorised for issue on 19 December 2024 and are signed on its behalf by:
19 December 2024
Mr A J Walding
Director
Company registration number 10617652 (England and Wales)
LEEWAYS GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 30 JUNE 2024
30 June 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
13
14,694,253
14,694,253
Current assets
Debtors
16
3,561,981
3,272,066
Cash at bank and in hand
262
5,614
3,562,243
3,277,680
Creditors: amounts falling due within one year
17
(2,025,627)
(1,092,739)
Net current assets
1,536,616
2,184,941
Total assets less current liabilities
16,230,869
16,879,194
Creditors: amounts falling due after more than one year
18
(3,669,407)
(4,307,819)
Net assets
12,561,462
12,571,375
Capital and reserves
Called up share capital
24
9,455,000
9,455,000
Profit and loss reserves
25
3,106,462
3,116,375
Total equity
12,561,462
12,571,375

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 £1,107,279 (2023 - £667,439 profit).

The financial statements were approved by the board of directors and authorised for issue on 19 December 2024 and are signed on its behalf by:
19 December 2024
Mr A J Walding
Director
Company Registration No. 10617652
LEEWAYS GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 July 2022
9,455,000
3,127,674
12,582,674
Year ended 30 June 2023:
Profit and total comprehensive income for the year
-
667,439
667,439
Dividends
10
-
(678,738)
(678,738)
Balance at 30 June 2023
9,455,000
3,116,375
12,571,375
Year ended 30 June 2024:
Profit and total comprehensive income
-
1,107,279
1,107,279
Dividends
10
-
(1,117,192)
(1,117,192)
Balance at 30 June 2024
9,455,000
3,106,462
12,561,462
LEEWAYS GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
30
8,751,668
3,784,037
Interest paid
(304,267)
(210,181)
Income taxes paid
(198,164)
(482,107)
Net cash inflow from operating activities
8,249,237
3,091,749
Investing activities
Purchase of tangible fixed assets
(862,695)
(1,582,146)
Proceeds on disposal of tangible fixed assets
14,200
-
Interest received
72,912
54,244
Net cash used in investing activities
(775,583)
(1,527,902)
Financing activities
Repayment of bank loans
(564,485)
(80,250)
Payment of finance leases obligations
(167,786)
(328,097)
Invoice discounting (payments) / receipts
(648,227)
343,959
Amounts introduced by directors
938,447
786,910
Amounts withdrawn by directors
(960,997)
(769,105)
Dividends paid
(1,117,192)
(678,738)
Net cash used in financing activities
(2,520,240)
(725,321)
Net increase in cash and cash equivalents
4,953,414
838,526
Cash and cash equivalents at beginning of year
3,709,503
2,870,977
Cash and cash equivalents at end of year
8,662,917
3,709,503
LEEWAYS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 12 -
1
Accounting policies
Company information

Leeways Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Lobstock, Churcham, Gloucester, United Kingdom, GL2 8AN.

 

The group consists of Leeways Group 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, modified to include the revaluation of freehold properties. The principal accounting policies adopted are set out below.

The parent company and its subsidiaries are qualifying entities for the purposes of FRS 102, being members of this group which prepares publicly available consolidated financial statements, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The parent company and its subsidiaries have therefore taken advantage of exemptions from the following disclosure requirements for parent company and subsidiary company information presented within the consolidated financial statements:

 

1.2
Basis of consolidation

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.

LEEWAYS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 13 -

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

 

All financial statements are made up to 30 June 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

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

1.3
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.

1.4
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.

 

Turnover is recognised when the terms of the contract with the customer have been fulfilled. When this is before an invoice has been raised, the value of work done at the year end is taken to accrued income.

Turnover 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.

1.5
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 20 years.

 

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

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.

LEEWAYS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 14 -

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
2-5% on cost
Improvements to property
over the period of the lease
Plant and equipment
10 - 50% on cost
Fixtures and fittings
25 - 33% on cost
Motor vehicles
25% on cost

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.

The group has applied the FRS 102 Triennial Review 2017 amendments in relation to properties rented to other group entities and has elected to apply the cost model, using the fair value of the properties at 1 July 2016 as deemed cost where relevant. Therefore, properties previously shown as investment properties are now recorded as freehold properties, with depreciation being applied.

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.The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

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.

1.9
Impairment of fixed assets

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

 

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

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

 

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

LEEWAYS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 15 -

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

1.10
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.

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
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.

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.

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.

LEEWAYS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 16 -
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.

1.12
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends and other distributions payable on equity instruments to the company's shareholders are recognised as liabilities in the period in which the dividends and other distributions are approved by the company's shareholders. These amounts are recognised in the statement of changes in equity.

1.13
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.

LEEWAYS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 17 -
Deferred tax

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

 

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

1.14
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

Contingent liabilities are not recognised, except those acquired in a business combination. Contingent liabilities arise as a result of past events when it is not probable that there will be an outflow of resources or the amount cannot be reliably estimated, or when the existence of the contingent liability will only be confirmed by the occurrence or non-occurrence of future events which are outside the control of the company. Contingent liabilities are disclosed in the financial statements unless the probability of the outflow of resource is remote.

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.

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

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.

LEEWAYS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 19 -
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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Depreciation and amortisation

The annual amortisation and depreciation charge for intangible and tangible assets is sensitive to changes in the estimated useful lives and residual values of the assets. The useful lives and residual values are re-assessed at each reporting date. They are amended when necessary to reflect current estimates, based on future investments, economic utilisation and the physical condition of the assets.

 

Rates of amortisation and depreciation charged are considered on a line by line basis and disclosed within the accounting policies for amortisation and depreciation.

 

See the intangible and tangible fixed asset notes for the carrying amount for each class of assets.

Freehold property

Upon application of the FRS 102 Triennial Review 2017 amendment, freehold properties previously classified as investment properties have been recognised as freehold properties at deemed cost based on their fair value at transition, where relevant. Advice was sought from an independent property consultant in order to arrive at fair value.

 

No impairment has since been noted.

LEEWAYS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 20 -
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
29,836,414
32,234,121
Rest of World
33,193
38,667
29,869,607
32,272,788
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Research and development costs
700,000
400,000
Depreciation of owned tangible fixed assets
1,227,075
1,087,559
Depreciation of tangible fixed assets held under finance leases
90,625
146,040
Profit on disposal of tangible fixed assets
(566)
-
Auditors remuneration - company
9,361
12,400
Auditors remuneration - subsidiaries
33,538
38,571
Amortisation of intangible assets
271,042
271,042
Operating leases - property
139,471
135,908
Operating leases - other
83,809
87,769
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
Directors
4
4
4
4
Sales
4
4
-
-
Administration
19
19
-
-
Production
90
82
-
-
Total
117
109
4
4
LEEWAYS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
5
Employees
(Continued)
- 21 -

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
3,521,890
3,118,268
-
0
-
0
Social security costs
348,788
293,842
-
-
Pension costs
226,598
197,629
-
0
-
0
4,097,276
3,609,739
-
0
-
0
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
205,361
131,150
Company pension contributions to defined contribution schemes
20,000
11,000
225,361
142,150

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2023 - 4).

Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
69,764
-
Company pension contributions to defined contribution schemes
10,000
-

As total directors' remuneration was less than £200,000 in the prior year, no disclosure is provided for that year.

7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
72,912
36,329
Interest receivable from group companies
(284,187)
(200,954)
Other interest income
284,187
218,869
Total income
72,912
54,244
LEEWAYS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 22 -
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
284,295
201,103
Interest payable to group undertakings
(284,187)
(200,954)
Other interest on financial liabilities
284,187
200,954
Interest on finance leases and hire purchase contracts
19,972
9,078
Total finance costs
304,267
210,181
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
845,275
521,440
Adjustments in respect of prior periods
(2,481)
(118,654)
Total current tax
842,794
402,786
Deferred tax
Origination and reversal of timing differences
-
0
402,535
Total tax charge
842,794
805,321

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
3,796,941
4,340,671
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.50%)
949,235
889,838
Tax effect of expenses that are not deductible in determining taxable profit
70,399
68,476
Over provided in prior years
(2,481)
(118,654)
Other items including effect of rate changes
(30,421)
87,611
Research and development and other tax incentives
(143,938)
(121,950)
Taxation charge
842,794
805,321
10
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Interim paid
1,117,192
678,738
LEEWAYS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 23 -
11
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 July 2023 and 30 June 2024
5,420,843
Amortisation and impairment
At 1 July 2023
1,626,252
Amortisation charged for the year
271,042
At 30 June 2024
1,897,294
Carrying amount
At 30 June 2024
3,523,549
At 30 June 2023
3,794,591
The company had no intangible fixed assets at 30 June 2024 or 30 June 2023.

Amortisation for intangible fixed assets is included within the depreciation charge in the group statement of comprehensive income.

12
Tangible fixed assets
Group
Freehold land and buildings
Improvements to property
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 July 2023
8,493,132
384,979
15,407,260
18,093
481,784
24,785,248
Additions
223,152
-
0
392,127
-
0
247,416
862,695
Disposals
-
0
-
0
(55,930)
-
0
(20,095)
(76,025)
At 30 June 2024
8,716,284
384,979
15,743,457
18,093
709,105
25,571,918
Depreciation and impairment
At 1 July 2023
1,054,785
95,489
9,232,404
13,347
285,247
10,681,272
Depreciation charged in the year
309,659
38,498
880,711
3,510
85,322
1,317,700
Eliminated in respect of disposals
-
0
-
0
(50,931)
-
0
(11,460)
(62,391)
At 30 June 2024
1,364,444
133,987
10,062,184
16,857
359,109
11,936,581
Carrying amount
At 30 June 2024
7,351,840
250,992
5,681,273
1,236
349,996
13,635,337
At 30 June 2023
7,438,347
289,490
6,174,856
4,746
196,537
14,103,976
The company had no tangible fixed assets at 30 June 2024 or 30 June 2023.
LEEWAYS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
12
Tangible fixed assets
(Continued)
- 24 -

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
462,816
729,930
-
0
-
0

Tangible fixed assets are pledged as security for the group's bank loans under a fixed and floating charge.

Included within freehold property are certain properties with a net book value of £1,738,258 (2023: £1,778,077) that were valued on an open market basis on 30 June 2017 by the directors. Advice was sought from an independent property consultant. Refer to note 2 for full detail. If these had not been revalued, the associated freehold land and buildings would have been included at historical cost of £2,059,552 (2023: £2,059,552) less depreciation of £1,318,604 (2023: £1,279,947).

13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
14,694,253
14,694,253
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 July 2023 and 30 June 2024
14,694,253
Carrying amount
At 30 June 2024
14,694,253
At 30 June 2023
14,694,253
LEEWAYS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 25 -
14
Subsidiaries

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

Name of undertaking
Registered
Nature of business
Class of
% Held
office
shares held
Direct
Indirect
Leeways Holdings Limited
1
Holding Company
Ordinary
100
-
Leeways Joinery Limited
1
Production of wooden components & joinery
Ordinary
-
100
Leeways Packaging Services Limited
1
Production & supply of plastic packaging
Ordinary
-
100
Kalex Films Limited
1
Production of plastic
Ordinary
-
100
1
Lobstock, Churcham, Gloucester, Gloucestershire, GL2 8AN

Leeways Packaging Services Limited, Leeways Joinery Limited and Kalex Films Limited are 100% owned subsidiaries of Leeways Holdings Limited, therefore the effective interest that Leeways Group Limited holds is 100%.

 

The above undertakings are all registered in England and Wales.

15
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
1,720,089
1,958,814
-
-
Work in progress
11,516
11,384
-
-
Finished goods and goods for resale
203,884
402,702
-
0
-
0
1,935,489
2,372,900
-
-

The total carrying amount of stock is pledged as security for the group's bank loans under a fixed and floating charge.

16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
6,185,954
7,939,452
-
0
-
0
Amounts owing under invoice discounting arrangements
1,287,542
639,315
-
0
-
0
Corporation tax recoverable
-
0
162,016
-
0
-
0
Amounts owed by group undertakings
-
-
3,561,953
3,271,766
Other debtors
123,043
98,841
28
300
Prepayments and accrued income
3,522,158
3,868,551
-
0
-
0
11,118,697
12,708,175
3,561,981
3,272,066
LEEWAYS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
16
Debtors
(Continued)
- 26 -

All debtor balances held by the group are pledged as security for the group's bank loans under a fixed and floating charge.

 

Included within trade debtors are balances of £5,925,776 (2023: £7,771,896) that are subject to invoice discounting arrangements.

 

Amounts owed under invoice discounting arrangements contain a fixed and floating charge over all assets of a subsidiary company. The maximum extent of this facility is £3,000,000 (2023: £3,000,000), with a notice period of three months. This facility is subject to the following charges:

 

Amounts owed by group undertakings are unsecured, interest free, have no fixed repayment date and are repayable on demand.

17
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
19
95,468
21,541
95,468
21,541
Obligations under finance leases
20
149,831
167,787
-
0
-
0
Trade creditors
3,667,100
2,600,144
-
0
1,800
Amounts owed to group undertakings
-
0
-
0
1,921,159
1,060,398
Corporation tax payable
559,614
77,000
-
0
-
0
Other taxation and social security
634,084
818,177
-
-
Other creditors
283,602
267,872
-
0
-
0
Accruals and deferred income
300,445
599,491
9,000
9,000
5,690,144
4,552,012
2,025,627
1,092,739

Amounts owed to group undertakings are unsecured, interest free, have no fixed repayment date and are repayable on demand.

18
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
19
3,669,407
4,307,819
3,669,407
4,307,819
Obligations under finance leases
20
118,154
267,985
-
0
-
0
3,787,561
4,575,804
3,669,407
4,307,819
LEEWAYS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 27 -
19
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
3,764,875
4,329,360
3,764,875
4,329,360
Payable within one year
95,468
21,541
95,468
21,541
Payable after one year
3,669,407
4,307,819
3,669,407
4,307,819

Bank loans are secured by a fixed and floating charge over the assets of the group, together with an unlimited multilateral guarantee. Refer to the contingent liabilities note for details.

During the period ended 30 June 2022, the company entered into a bank loan agreement, the main conditions of which are set out below.

            

Principal loan amount                £4,466,000    

Interest rate                    Base rate + 1.8%        

Final repayment date                May 2042            

Instalments                    £23,933.57 per month        

20
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
161,340
187,760
-
0
-
0
In two to five years
121,005
282,345
-
0
-
0
282,345
470,105
-
-
Less: future finance charges
(14,360)
(34,333)
-
0
-
0
267,985
435,772
-
0
-
0

 

The hire purchase and finance lease obligations are secured over the assets to which they relate. Interest rates underlying all obligations under finance leases are fixed at contract rates ranging from 1.18% to 5.75% (2023:1.18% to 5.19%). Amounts are repayable by monthly instalments and are all due by 1 April 2026.

21
Provisions for liabilities
Group
Company
2024
2023
2024
2023
£
£
£
£
Deferred tax liabilities
22
1,397,392
1,397,392
-
0
-
0
1,397,392
1,397,392
-
0
-
0
LEEWAYS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 28 -
22
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
1,397,392
1,397,392
The company has no deferred tax assets or liabilities.
There were no deferred tax movements in the year.
23
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
226,598
197,629

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.

24
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary of £1 each
5,455,000
5,455,000
5,455,000
5,455,000
B Ordinary of £1 each
2,636,000
2,636,000
2,636,000
2,636,000
C Ordinary of £1 each
1,364,000
1,364,000
1,364,000
1,364,000
9,455,000
9,455,000
9,455,000
9,455,000

Called up share capital represents the nominal value of shares that have been issued.

 

Ordinary A shares and Ordinary C shares hold voting rights.

 

Ordinary B shares hold no voting rights. These shares also hold certain preferential rights on a capital distribution. On a share sale or listing, they shall only be entitled to the nominal value of these shares.

LEEWAYS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 29 -
25
Profit and loss reserves
Group
Company
2024
2023
2024
2023
£
£
£
£
At the beginning of the year
16,708,937
13,852,325
3,116,375
3,127,674
Profit for the year
2,954,147
3,535,350
1,107,279
667,439
Dividends
(1,117,192)
(678,738)
(1,117,192)
(678,738)
At the end of the year
18,545,892
16,708,937
3,106,462
3,116,375

Retained earnings include all current and prior period retained profits and losses.

26
Contingent liabilities

Company

The company is part of a multilateral guarantee in favour of the bank involving all group companies. At 30 June 2024 the maximum extent of this guarantee amounted to £Nil (2023: £Nil).

 

The company is included within a group VAT registration scheme, which incorporates the company and its subsidiaries. As such the company is jointly and severally liable for the amounts owed by the other companies at the balance sheet date. At 30 June 2024 this amounted to £776,286 (2023: £888,462).

 

Group

The group had no contingent liabilities at 30 June 2024 (2023: £Nil).

27
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
190,113
210,911
-
-
Between two and five years
553,954
617,621
-
-
In over five years
123,671
247,005
-
-
867,738
1,075,537
-
-
LEEWAYS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 30 -
28
Capital commitments

Amounts contracted for but not provided in the financial statements:

Group
Company
2024
2023
2024
2023
£
£
£
£
Acquisition of tangible fixed assets
-
72,614
-
-
29
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2024
2023
£
£
Aggregate compensation
225,361
142,150

At the period end, the group owed £119,808 (2023: £142,358) to directors which is included within other creditors.

 

The amounts outstanding in relation to loans from other shareholders was £142,814 (2023: £107,178), which is included within other creditors.

 

Dividends totalling £1,117,192 (2023: £678,738) have been paid to directors and their close family members during the period.

 

Total remuneration paid to close family members for the period was £12,321 (2023: £25,655).

 

Included within administrative expenses are expenses of £122,997 (2023: £126,522) from a pension plan in which two of the directors are trustees.

 

As at 30 June 2024, balances of £78,851 and £Nil (2023: £78,851 and £30,749) were held with the pension plan. These balances are included within other debtors and prepayments respectively. These amounts are unsecured, interest free and have no specified repayment date.

 

There is no ultimate controlling party.

 

Other information

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard Applicable in the UK and republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

LEEWAYS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 31 -
30
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
2,954,147
3,535,350
Adjustments for:
Taxation charged
842,794
805,321
Finance costs
304,267
210,181
Investment income
(72,912)
(54,244)
Gain on disposal of tangible fixed assets
(566)
-
Amortisation and impairment of intangible assets
271,042
271,042
Depreciation and impairment of tangible fixed assets
1,317,700
1,233,599
Movements in working capital:
Decrease in stocks
437,411
249,000
Decrease/(increase) in debtors
2,075,688
(1,802,895)
Increase/(decrease) in creditors
622,097
(663,317)
Cash generated from operations
8,751,668
3,784,037

 

31
Analysis of changes in net funds/(debt) - group
1 July 2023
Cash flows
30 June 2024
£
£
£
Cash at bank and in hand
3,709,503
4,953,414
8,662,917
Borrowings excluding overdrafts
(4,329,360)
564,485
(3,764,875)
Obligations under finance leases
(435,772)
167,787
(267,985)
Invoice discounting arrangements
(67,908)
964,088
896,180
(1,123,537)
6,649,774
5,526,237
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