Company registration number 09693156 (England and Wales)
NL COMMERCIALS HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
NL COMMERCIALS HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Mr Nigel Lella
Mr Wayne Lella
Company number
09693156
Registered office
Rouse Mill
Rouse Mill Lane
Batley
WF17 5QB
Auditor
BHP LLP
New Chartford House
Centurion Way
Cleckheaton
Bradford
West Yorkshire
BD19 3QB
NL COMMERCIALS HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Group statement of comprehensive income
7
Group balance sheet
8
Company balance sheet
9
Group statement of changes in equity
10
Company statement of changes in equity
11
Group statement of cash flows
12
Notes to the financial statements
13 - 31
NL COMMERCIALS HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -
The directors present the strategic report for the year ended 30 June 2024.
Fair review of the business
The Group has sites across Leeds, Darlington, St Helens and Wakefield; all have continued to contribute positively throughout the year.
The market continues to be highly competitive, but the directors have remained focused on customer experience, pricing, operational efficiency, and fleet quality to maintain their position within the market.
Over £11m was invested in new vehicles during the year. The group remains confident about future growth and has invested a further £9m in the first 6 months of the current financial year.
The Group’s sales division, Pro Vans, has continued to perform well. The cost of new vehicles remains higher than expected, which has helped to sustain prices of second hand vehicles.
The directors are extremely pleased with the Group’s performance and results in what continues to be a challenging environment. The directors would like to thank all members of the team throughout the NL Group.
Principal risks and uncertainties
The directors are constantly reviewing market conditions, including vehicle supply, and competitor activity in order to maintain continued trade with existing and new customers.
Key performance indicators
The group's key financial and other performance indicators during the year were as follows:
Mr Wayne Lella
Director
28 March 2025
NL COMMERCIALS HOLDINGS 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 renting, leasing and supply of vehicles.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr Nigel Lella
Mr Wayne Lella
Results and dividends
The results for the year are set out on page 7.
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
Financial instruments
The company utilises appropriate financial instruments in order to conduct its business activities.
The business' principal financial instruments comprise trade debtors, trade creditors and finance lease agreements. The main purpose of these instruments is to finance the business' operations.
Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the balance sheet are net of allowances for doubtful debtors.
Trade creditors' liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.
The business is a lessee in respect of finance leased assets. The liquidity risk in respect of these is managed by ensuring that there are sufficient funds to meet the payments.
Auditor
In accordance with the company's articles, a resolution proposing that BHP LLP be reappointed as auditor of the group will be put at a General Meeting.
NL COMMERCIALS HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -
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:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
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.
The directors are responsible for the maintenance and integrity of the company website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
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 Wayne Lella
Director
28 March 2025
NL COMMERCIALS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF NL COMMERCIALS HOLDINGS LIMITED
- 4 -
Opinion
We have audited the financial statements of NL Commercials Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the group's and the parent company's affairs as at 30 June 2024 and of the group's profit for the year 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.
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.
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:
The information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
The strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
NL COMMERCIALS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF NL COMMERCIALS HOLDINGS 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:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company 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 directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, 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 or intentional misrepresentations, or through collusion.
We focused on laws and regulations, relevant to the company, which could give rise to a material misstatement in the financial statements. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management and review of legal expenses. There are inherent limitations in the audit procedures described 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 would become aware of it.
As part of our audit, we addressed the risk of management override of internal controls, including testing of journals and review of nominal ledger. We evaluated whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
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.
NL COMMERCIALS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF NL COMMERCIALS HOLDINGS LIMITED
- 6 -
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.
Jamie Williams (Senior Statutory Auditor)
For and on behalf of BHP LLP
28 March 2025
Chartered Accountants
Statutory Auditor
New Chartford House
Centurion Way
Cleckheaton
Bradford
West Yorkshire
BD19 3QB
NL COMMERCIALS HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
21,590,488
21,301,383
Cost of sales
(9,949,849)
(9,380,687)
Gross profit
11,640,639
11,920,696
Administrative expenses
(9,693,669)
(8,644,896)
Other operating income
9,260
14,487
Operating profit
4
1,956,230
3,290,287
Interest receivable and similar income
8
57,281
48,832
Interest payable and similar expenses
9
(241,056)
(56,457)
Profit before taxation
1,772,455
3,282,662
Tax on profit
10
(551,113)
(770,779)
Profit for the financial year
1,221,342
2,511,883
Profit for the financial year is attributable to:
- Owners of the parent company
1,193,195
2,497,117
- Non-controlling interests
28,147
14,766
1,221,342
2,511,883
Total comprehensive income for the year is attributable to:
- Owners of the parent company
1,193,195
2,497,117
- Non-controlling interests
28,147
14,766
1,221,342
2,511,883
NL COMMERCIALS HOLDINGS LIMITED
GROUP BALANCE SHEET
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
11
5,064,893
5,454,500
Tangible assets
12
35,372,473
26,798,166
40,437,366
32,252,666
Current assets
Debtors
15
2,891,975
2,425,154
Cash at bank and in hand
2,915,206
2,625,477
5,807,181
5,050,631
Creditors: amounts falling due within one year
16
(12,457,470)
(5,260,725)
Net current liabilities
(6,650,289)
(210,094)
Total assets less current liabilities
33,787,077
32,042,572
Creditors: amounts falling due after more than one year
17
(2,090,107)
(1,161,096)
Provisions for liabilities
19
(1,529,604)
(1,935,452)
Net assets
30,167,366
28,946,024
Capital and reserves
Called up share capital
22
260,059
260,059
Profit and loss reserves
29,834,174
28,640,979
Equity attributable to owners of the parent company
30,094,233
28,901,038
Non-controlling interests
73,133
44,986
30,167,366
28,946,024
The financial statements were approved by the board of directors and authorised for issue on 28 March 2025 and are signed on its behalf by:
28 March 2025
Mr Wayne Lella
Director
NL COMMERCIALS HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 30 JUNE 2024
30 June 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
11
5,064,893
5,454,500
Tangible assets
12
35,325,497
26,748,715
Investments
13
551
551
40,390,941
32,203,766
Current assets
Debtors
15
2,546,206
2,150,225
Cash at bank and in hand
1,137,081
1,519,358
3,683,287
3,669,583
Creditors: amounts falling due within one year
16
(13,164,581)
(7,156,496)
Net current liabilities
(9,481,294)
(3,486,913)
Total assets less current liabilities
30,909,647
28,716,853
Creditors: amounts falling due after more than one year
17
(2,090,107)
(1,161,096)
Provisions for liabilities
Deferred tax liability
20
1,193,604
1,016,252
(1,193,604)
(1,016,252)
Net assets
27,625,936
26,539,505
Capital and reserves
Called up share capital
22
260,010
260,010
Profit and loss reserves
27,365,926
26,279,495
Total equity
27,625,936
26,539,505
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 £1,086,431 (2023 - £2,364,518 profit).
The financial statements were approved by the board of directors and authorised for issue on 28 March 2025 and are signed on its behalf by:
28 March 2025
Mr Wayne Lella
Director
Company registration number 09693156 (England and Wales)
NL COMMERCIALS HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 10 -
Share capital
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
£
£
£
£
£
Balance at 1 July 2022
260,059
26,143,862
26,403,921
30,220
26,434,141
Year ended 30 June 2023:
Profit and total comprehensive income for the year
-
2,497,117
2,497,117
14,766
2,511,883
Balance at 30 June 2023
260,059
28,640,979
28,901,038
44,986
28,946,024
Year ended 30 June 2024:
Profit and total comprehensive income for the year
-
1,193,195
1,193,195
28,147
1,221,342
Balance at 30 June 2024
260,059
29,834,174
30,094,233
73,133
30,167,366
NL COMMERCIALS HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 11 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 July 2022
260,010
23,914,977
24,174,987
Year ended 30 June 2023:
Profit and total comprehensive income for the year
-
2,364,518
2,364,518
Balance at 30 June 2023
260,010
26,279,495
26,539,505
Year ended 30 June 2024:
Profit and total comprehensive income for the year
-
1,086,431
1,086,431
Balance at 30 June 2024
260,010
27,365,926
27,625,936
NL COMMERCIALS HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
9,551,086
9,808,723
Interest paid
(241,056)
(56,457)
Income taxes paid
(357,623)
(419,762)
Net cash inflow from operating activities
8,952,407
9,332,504
Investing activities
Purchase of tangible fixed assets
(11,850,656)
(8,391,777)
Proceeds from disposal of tangible fixed assets
3,432,003
3,203,733
Introduction of loans
5,478,565
103,733
Interest received
57,281
48,832
Net cash used in investing activities
(2,882,807)
(5,035,479)
Financing activities
Cash movement in provisions
(535,200)
(499,200)
Payment of finance leases obligations
(5,244,671)
(5,840,344)
Net cash used in financing activities
(5,779,871)
(6,339,544)
Net increase/(decrease) in cash and cash equivalents
289,729
(2,042,519)
Cash and cash equivalents at beginning of year
2,625,477
4,667,996
Cash and cash equivalents at end of year
2,915,206
2,625,477
NL COMMERCIALS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 13 -
1
Accounting policies
Company information
NL Commercials Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Rouse Mill, Rouse Mill Lane, Batley, WF17 5QB.
The group consists of NL Commercials Holdings Limited and all of its subsidiaries.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
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.
NL COMMERCIALS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 14 -
The consolidated group financial statements consist of the financial statements of the parent company NL Commercials Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 30 June 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
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.
1.5
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.
1.6
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
nil
Leasehold improvements
10% straight line
Plant and equipment
25% reducing balance
Fixtures and fittings
25% reducing balance
Motor vehicles
25% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
NL COMMERCIALS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 15 -
Freehold property is included in the balance sheet at its fair value.
Although this accounting policy is in accordance with the applicable accounting standard, FRS 102 "The Financial Reporting Standard," it is a departure from the general requirement of the Companies Act 2006 for all tangible fixed assets to be depreciated.
The accounting policy adopted is necessary for the financial statements to give a true and fair view. Depreciation or amortisation is only one of many factors reflected in the annual valuation and the amount of this which might otherwise have been charged cannot be separately identified or quantified.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
1.7
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.8
Impairment of fixed assets
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
NL COMMERCIALS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 16 -
1.9
Cash at bank and in hand
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.10
Financial instruments
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
NL COMMERCIALS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 17 -
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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
1.11
Equity instruments
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
1.12
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
NL COMMERCIALS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 18 -
1.13
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.
1.14
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.15
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.16
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
1.17
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
2
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
NL COMMERCIALS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 19 -
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Tangible fixed assets - depreciation
Due to the nature of the company’s trade and size of the hire fleet, it is necessary to consider the useful lives of assets, which reflect the directors’ estimate. The depreciation rates chosen by the directors are based on their best estimate of useful economic life, taking into account historic life cycles of the fleet and future expectations.
3
Turnover and other revenue
The group's turnover arises from its principal activity, undertaken entirely in the UK.
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Government grants
(1,000)
(1,000)
Depreciation of owned tangible fixed assets
5,356,303
4,686,454
Depreciation of tangible fixed assets held under finance leases
1,669,224
2,076,081
Profit on disposal of tangible fixed assets
(147,839)
(179,132)
Amortisation of intangible assets
389,607
389,607
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
10,320
9,830
Audit of the financial statements of the company's subsidiaries
24,015
19,640
34,335
29,470
For other services
Taxation compliance services
7,845
7,465
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Sales, service and administration
55
53
NL COMMERCIALS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
6
Employees
(Continued)
- 20 -
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
5,656,015
4,231,113
812,640
344,667
Social security costs
214,365
138,648
187,495
124,370
Pension costs
30,511
32,684
864
5,900,891
4,402,445
1,000,999
469,037
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
1,266,583
762,534
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
736,330
499,200
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
54,503
47,653
Other interest income
2,778
1,179
Total income
57,281
48,832
9
Interest payable and similar expenses
2024
2023
£
£
Interest on finance leases and hire purchase contracts
241,056
56,369
Other interest
-
88
Total finance costs
241,056
56,457
NL COMMERCIALS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 21 -
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
373,762
616,690
Adjustments in respect of prior periods
(1)
(15,663)
Total current tax
373,761
601,027
Deferred tax
Origination and reversal of timing differences
177,352
169,752
Total tax charge
551,113
770,779
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
1,772,455
3,282,662
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.50%)
443,114
672,946
Tax effect of expenses that are not deductible in determining taxable profit
98,983
82,754
Gains not taxable
32,863
93,760
Change in unrecognised deferred tax assets
1,277
(93,039)
Adjustments in respect of prior years
(15,663)
Effect of change in corporation tax rate
-
(383)
Tax at marginal rate
(1,118)
Change in deferred tax rates
30,404
Fixed asset differences
(24,006)
Taxation charge
551,113
770,779
11
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 July 2023 and 30 June 2024
7,792,142
Amortisation and impairment
At 1 July 2023
2,337,642
Amortisation charged for the year
389,607
At 30 June 2024
2,727,249
NL COMMERCIALS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
11
Intangible fixed assets
(Continued)
- 22 -
Carrying amount
At 30 June 2024
5,064,893
At 30 June 2023
5,454,500
Company
Goodwill
£
Cost
At 1 July 2023 and 30 June 2024
7,792,142
Amortisation and impairment
At 1 July 2023
2,337,642
Amortisation charged for the year
389,607
At 30 June 2024
2,727,249
Carrying amount
At 30 June 2024
5,064,893
At 30 June 2023
5,454,500
NL COMMERCIALS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 23 -
12
Tangible fixed assets
Group
Freehold land and buildings
Leasehold improvements
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 July 2023
1,130,278
228,902
67,003
86,758
43,796,590
45,309,531
Additions
7,667,375
2,416
10,448
2,580
11,201,179
18,883,998
Disposals
(14,177)
(8,890,983)
(8,905,160)
At 30 June 2024
8,783,476
231,318
77,451
89,338
46,106,786
55,288,369
Depreciation and impairment
At 1 July 2023
116,078
46,442
45,475
18,303,370
18,511,365
Depreciation charged in the year
23,292
7,767
10,835
6,983,633
7,025,527
Eliminated in respect of disposals
(5,620,996)
(5,620,996)
At 30 June 2024
139,370
54,209
56,310
19,666,007
19,915,896
Carrying amount
At 30 June 2024
8,783,476
91,948
23,242
33,028
26,440,779
35,372,473
At 30 June 2023
1,130,278
112,824
20,561
41,283
25,493,220
26,798,166
Company
Freehold land and buildings
Leasehold improve-ments
Plant and equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 July 2023
1,130,278
211,902
67,003
43,796,590
45,205,773
Additions
7,667,375
2,416
11,201,179
18,870,970
Disposals
(14,177)
(8,890,983)
(8,905,160)
At 30 June 2024
8,783,476
214,318
67,003
46,106,786
55,171,583
Depreciation and impairment
At 1 July 2023
107,246
46,442
18,303,370
18,457,058
Depreciation charged in the year
21,250
5,141
6,983,633
7,010,024
Eliminated in respect of disposals
(5,620,996)
(5,620,996)
At 30 June 2024
128,496
51,583
19,666,007
19,846,086
Carrying amount
At 30 June 2024
8,783,476
85,822
15,420
26,440,779
35,325,497
At 30 June 2023
1,130,278
104,656
20,561
25,493,220
26,748,715
NL COMMERCIALS HOLDINGS 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
£
£
£
£
Motor vehicles
9,089,285
6,858,830
9,089,285
6,858,830
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
551
551
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 July 2023 and 30 June 2024
551
Carrying amount
At 30 June 2024
551
At 30 June 2023
551
NL COMMERCIALS HOLDINGS 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
Nature of business
Class of
% Held
shares held
Direct
Indirect
NL Commercials (Leeds) Limited
Vehicle hire
Ordinary
100.00
-
NL Commercials (St Helens) Limited
Vehicle hire
Ordinary
100.00
-
NL Commercials (Wakefield) Limited
Vehicle hire
Ordinary
100.00
-
NL Commercials Darlington Limited
Vehicle hire
Ordinary
100.00
-
NL Commercials Management Limited
Supply of employment services
Ordinary
100.00
-
Pro Vans Yorkshire Limited
Vehicle sales
Ordinary
51.00
-
Registered Office address:
The registered office of all subsidiaries is Rouse Mill, Rouse Mill Lane, Batley, WF17 5QB.
15
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,011,248
1,950,085
83,957
89,073
Corporation tax recoverable
68,597
73,226
67,831
71,036
Amounts owed by group undertakings
-
-
532,050
532,050
Other debtors
695,331
290,678
598,099
243,276
Prepayments and accrued income
116,799
111,165
1,264,269
1,214,790
2,891,975
2,425,154
2,546,206
2,150,225
Amounts due from group undertakings are interest free and repayable on demand.
NL COMMERCIALS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 26 -
16
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance leases
18
4,322,576
3,462,916
4,322,576
3,462,916
Other borrowings
547,200
499,200
Trade creditors
1,304,994
852,664
2,591,905
2,488,428
Amounts owed to group undertakings
635,671
1,170,871
Corporation tax payable
45,557
34,048
Other taxation and social security
491,312
291,996
-
20,202
Other creditors
5,600,127
1,363
5,600,704
629
Accruals and deferred income
145,704
118,538
13,725
13,450
12,457,470
5,260,725
13,164,581
7,156,496
Obligations under finance leases are secured on the assets to which they relate.
Amounts due to group undertakings are interest free and repayable on demand.
17
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance leases
18
2,090,107
1,161,096
2,090,107
1,161,096
Obligations under finance leases are secured on the assets to which they relate.
18
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
4,322,576
3,462,916
4,322,576
3,462,916
In two to five years
2,090,107
1,161,096
2,090,107
1,161,096
6,412,683
4,624,012
6,412,683
4,624,012
Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
NL COMMERCIALS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 27 -
19
Provisions for liabilities
Group
Company
2024
2023
2024
2023
£
£
£
£
Settlement of pension liability
336,000
919,200
-
-
Movements on provisions:
Settlement of pension liability
Group
£
At 1 July 2023
871,200
Utilisation of provision
(535,200)
At 30 June 2024
336,000
The company operated a defined benefit scheme for certain employees. This was closed in a prior period and a full and final settlement for £2,500,000 was agreed with the employees. This is disclosed as a provision in the accounts with the element due within a year shown within other creditors in the note above.
20
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
1,193,604
1,016,252
Liabilities
Liabilities
2024
2023
Company
£
£
Accelerated capital allowances
1,193,604
1,016,252
NL COMMERCIALS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
20
Deferred taxation
(Continued)
- 28 -
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 July 2023
1,016,252
1,016,252
Charge to profit or loss
177,352
177,352
Liability at 30 June 2024
1,193,604
1,193,604
Of the deferred tax liability set out above, £783,000 is expected to reverse within 12 months and relates to accelerated capital allowances net of losses and other deductions.
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
30,511
32,684
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.
22
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary 'A' shares of 1p each
13,000,551
13,000,551
130,005
130,005
Ordinary 'B' shares of 1p each
13,000,551
13,000,551
130,005
130,005
26,001,102
26,001,102
260,010
260,010
The rights of the 'A' shares is that they have 1 vote per share and carry all of the capital rights of up to the first £50m and then rank equally with the 'B' shares thereafter.
The rights of the 'B' shares is that they have 1 vote per every 5 shares held and carry none of the capital rights up to the first £50m and then rank equally with the 'A' shares thereafter.
23
Financial commitments, guarantees and contingent liabilities
There is a cross guarantee between NL Commercials Holdings Limited, NL Commercials (Wakefield) Limited, NL Commercials (Leeds) Limited, NL Commercials Darlington Limited and NL Commercials (St Helens) Limited.
NL COMMERCIALS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 29 -
24
Operating lease commitments
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
21,600
21,600
-
-
Between two and five years
86,400
86,400
-
-
In over five years
273,600
295,200
-
-
381,600
403,200
-
-
25
Related party transactions
Transactions with related parties
During the year the group entered into the following transactions with related parties:
Sales
Sales
2024
2023
£
£
Group
Entities with control, joint control or significant influence over the group
4,935,548
4,947,109
Other related parties
15,449
15,064
Purchases & charges
2024
2023
£
£
Group
Other related parties
262,817
220,000
The following amounts were outstanding at the reporting end date:
Amounts due to related parties
2024
2023
£
£
Group
Entities with control, joint control or significant influence over the group
139,423
-
Other related parties
374,278
363,148
NL COMMERCIALS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
25
Related party transactions
(Continued)
- 30 -
The following amounts were outstanding at the reporting end date:
Amounts due from related parties
2024
2023
Balance
Balance
£
£
Group
Entities with control, joint control or significant influence over the group
56,811
-
Other related parties
144,630
169,380
26
Directors' transactions
Rents of £234,000 (2023: £144,000) were invoiced during the year to the group from N L Property Services, a sole trader business owned by Nigel Lella.
Amounts due to the group’s directors’ at the year end was £5,643,741. Interest of £2,633 has been charged by the company to the directors for the period in which the loan was overdrawn.
On the 9 April 2024, NL Commercials Holdings purchased property from a company director for £6,440,000, which reflected its market value.
27
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
1,221,342
2,511,883
Adjustments for:
Taxation charged
551,113
770,779
Finance costs
241,056
56,457
Investment income
(57,281)
(48,832)
Gain on disposal of tangible fixed assets
(147,839)
(179,132)
Amortisation and impairment of intangible assets
389,607
389,607
Depreciation and impairment of tangible fixed assets
7,025,527
6,762,535
Movements in working capital:
(Increase)/decrease in debtors
(419,126)
50,071
Increase/(decrease) in creditors
746,687
(504,645)
Cash generated from operations
9,551,086
9,808,723
NL COMMERCIALS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 31 -
28
Analysis of changes in net debt - group
1 July 2023
Cash flows
New finance leases
30 June 2024
£
£
£
£
Cash at bank and in hand
2,625,477
289,729
-
2,915,206
Obligations under finance leases
(4,624,012)
5,244,671
(7,033,342)
(6,412,683)
(1,998,535)
5,534,400
(7,033,342)
(3,497,477)
2024-06-302023-07-01falsefalseCCH SoftwareCCH Accounts Production 2024.310Mr Nigel LellaMr Wayne 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