Company registration number 13867173 (England and Wales)
LOUDWATER HOLDINGS LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
LOUDWATER HOLDINGS LTD
COMPANY INFORMATION
Directors
Mr S S Stimler
Mr M Stimler
Company number
13867173
Registered office
Honeypot House
56a Crewys Road
London
NW2 2AD
Auditor
RDP Newmans LLP
Lynwood House
373-375 Station Road
Harrow
Middlesex
HA1 2AW
Business address
Honeypot House
56a Crewys Road
London
NW2 2AD
LOUDWATER HOLDINGS LTD
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Directors' responsibilities statement
6
Independent auditor's report
7 - 9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 33
LOUDWATER HOLDINGS LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 1 -

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

 

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

 

The principal activity of Loudwater Trade and Finance Limited, the company's subsidiary, is that of international trading in coffee and other consumables.

 

Loudwater Trade and Finance Limited holds 100% of the shares in GMH Trading Limited, a UK company whose principal activity is that of wholesale and distribution of fast moving consumer goods, 100% of the shares in Loudwater Med Ltd, a non-trading entity and 100% of the shares in Loudwater Enterprises Limited, which is dormant.

Review of the business

The Key Performance Indicators of the Loudwater Holdings Ltd group are detailed below:

 

          2024         2023    

Turnover (£'000)        95,098        114,200        

Gross profit %        8.47        10.10        

Net profit % after tax    1.49        3.36        

 

Net assets (£'000)    55,560        54,560        

 

Despite the decrease in turnover and profit for the year, the results for the year and the financial position at the year end were considered satisfactory by the directors who expect to improve on these in the foreseeable future.

 

Principal Risks and Uncertainties

 

The principal risks and uncertainties facing Loudwater Holdings Ltd are:

 

Financial instruments

The group's principal financial instruments comprise bank loans, overdrafts and trade payables. The main purpose of these financial instruments is to raise finance for the group's operations. The group has various other financial assets such as trade receivables, cash and short-term deposits which arise directly from its operations.

 

The main risks arising from the group's financial instruments are credit risk, liquidity risk, interest rate risk and foreign currency exposure. The Board reviews and agrees policies for managing each of these risks and they are summarised below.

 

Credit risk

The group's credit risk is primarily attributable to its customers. The group performs ongoing credit evaluations of its customers and to date has not experienced any material losses.

 

Liquidity risk

Liquidity risk arises in relation to the group's management of working capital and the risk that the group will encounter difficulties in meeting financial obligations as and when they fall due. To minimise this risk, the liquidity position and ongoing working capital requirements are regularly reviewed by the directors.

 

Interest rate risk

The group finances its operations through equity, bank financing and working capital. The group is, therefore, subject to interest rate risks. This is mitigated by continually monitoring the rates available to the group.

LOUDWATER HOLDINGS LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -

Foreign currency exposure

The principal foreign currency exposures arise from trading with overseas companies. The group is subject to foreign exchange risks as it sells and purchases in various countries and currencies. Management regularly monitors its foreign exchange risk and attempts to limit such risks by managing its cash and credit positions.

 

War in Ukraine

Due to the war in Ukraine, the global economy has been impacted by a rise in fuel prices. The group could potentially be largely impacted by this price increase as it relies heavily on daily transportation of goods. The directors are aware of the situation and are taking necessary steps in order to reduce this risk to a minimum, such as buying goods in bulk wherever possible.

 

Middle East conflict

Ongoing conflicts often lead to economic instability in the region, affecting markets and investments. Businesses may face uncertainty in pricing, currency fluctuations, and supply chain disruptions. As many industries rely on the Middle East for oil and gas, conflicts can disrupt production and transportation, leading to increased costs and delays.

Section 172(1) statement

 

Interests of members of the group

 

Loudwater Holdings Ltd is a private company and acts as the holding company for Loudwater Trade and Finance Limited. Loudwater Holdings Ltd has two directors, both of whom have representation on the Board. The day-to-day operations of the group are managed by the directors who are closely involved in the activities of the group and provide day-to-day support as and when required.

 

In common with many private companies the interests of the Board and the ultimate shareholders are broadly aligned in that the group should create value by generating strong and sustainable results.

 

Board decisions during the year

Dividends of £1,400,388 (2023: £1,598,033) were voted in the year.

 

During the year we have aimed to continue to improve our position in the market and have managed to navigate successfully around various obstacles such as the Ukraine and Russia conflict and Middle East conflict.

 

No other major Board decisions were made during the year.

 

The interests of employees

 

We focus on training and supporting our employees in the understanding that a well informed and trained workforce is essential for the group’s ongoing success. We hold regular staff meetings, attended by members of the Board, and carry out annual appraisals. We encourage feedback from our staff and, where possible and practical, implement suggestions made to improve our procedures and to improve our working environment.

 

The average number of employees in the period was 16 (2023: 15).

 

We consider that we offer our employees competitive remuneration packages.

 

The interests of our customers

 

We develop and maintain unique relationships with our customers, and we do this by engaging with them, ensuring our prices remain competitive, deliveries maintained to a high standard and implement recommendations made by our customers.

LOUDWATER HOLDINGS LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -

The interests of our suppliers

 

Due to the nature of our activities many of our suppliers are based overseas. We maintain regular contact with our suppliers on a regular basis. However, due to the geographical spread of our suppliers much of the communication is carried out by email or telephone calls. Where possible, we meet with our suppliers to plan delivery schedules and receive feedback.

 

We continue to endeavour to pay all our suppliers promptly and within the terms agreed. Some of our suppliers are also our customers, therefore, we have tailored agreements on some of the transactions.

 

Where disputes arise, we strive to reach outcomes that are satisfactory and fair to both the group and its suppliers.

 

The impact of the group’s operations on the community and the environment

 

Our subsidiaries procure our commodities from processors who best meet the quality, price and food safety criteria expected by our buyers. The product is inspected, shipped and delivered to customers’ premises or their nominated stores. We have no agency or other exclusivity agreement and we are completely free to seek out the best source of supply to meet our customers' requirements.

 

Many of our suppliers do have carbon offset programmes. We encourage all our suppliers to take steps to be as energy efficient as possible.

 

The group is also an avid supporter of charities and have made donations to charities in the year totalling £703,504 (2023: £822,755).

 

Maintaining a reputation for high standards of business conduct

 

Our group is committed to maintaining a reputation of high standards of business conduct. We have an ethics policy for all employees to follow and review this annually. We consider and approve our modern slavery statement which explains the activities we have taken to demonstrate our commitment to seeking to ensure that there is no slavery, forced labour or human trafficking within any part of our business or supply chains. Our statement can be found on our subsidiary's website at www.loudwateruk.com.

On behalf of the board

Mr M Stimler
Director
22 April 2025
LOUDWATER HOLDINGS LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 4 -

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

Results and dividends

The results for the year are set out on page 10.

Ordinary dividends were paid amounting to £1,400,388 (2023: £1,598,033). The directors do not recommend payment of a final 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 M Stimler
Mr S S Stimler
Future developments

The directors expect growth in the present level of turnover and profit for the foreseeable future.

Auditor

The auditor, RDP Newmans LLP, are deemed to be reappointed under section 487(2) of the Companies Act 2006.

Energy and carbon report
2024
2023
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
46,391
40,283
2024
2023
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
2.57
1.64
- Fuel consumed for owned transport
-
-
2.57
1.64
Scope 2 - indirect emissions
- Electricity purchased
6.90
6.66
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the
-
-
Total gross emissions
9.47
8.30
Intensity ratio
Tonnes of Co2e per full-time employee
0.60
0.55
Quantification and reporting methodology

The group has followed the 2019 HM Government Environmental Reporting Guidelines. The group has also used the GHG Reporting Protocol – Corporate Standard and have used the 2024 UK Government’s Conversion Factors for Company Reporting.

LOUDWATER HOLDINGS LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 5 -
Intensity measurement

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per site, the recommended ratio for the sector.

Measures taken to improve energy efficiency

We have increased video conferencing technology for staff meetings, to reduce to the need for travel.

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.

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 M Stimler
Director
22 April 2025
LOUDWATER HOLDINGS LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 6 -

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.

LOUDWATER HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LOUDWATER HOLDINGS LTD
- 7 -
Opinion

We have audited the financial statements of Loudwater Holdings Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 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:

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:

LOUDWATER HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LOUDWATER HOLDINGS LTD
- 8 -
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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the group’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

LOUDWATER HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LOUDWATER HOLDINGS LTD
- 9 -

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

Use of our report

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

A R Gangola FCA (Senior Statutory Auditor)
For and on behalf of RDP Newmans LLP
25 April 2025
Chartered Accountants
Statutory Auditor
Lynwood House
373-375 Station Road
Harrow
Middlesex
HA1 2AW
LOUDWATER HOLDINGS LTD
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 10 -
2024
2023
Notes
£
£
Turnover
3
95,098,323
114,199,541
Cost of sales
(87,043,958)
(102,666,328)
Gross profit
8,054,365
11,533,213
Administrative expenses
(5,084,449)
(5,352,719)
Other operating income
290,954
136,335
Operating profit
4
3,260,870
6,316,829
Interest receivable and similar income
8
211
(57,221)
Interest payable and similar expenses
9
(836,896)
(915,706)
Profit before taxation
2,424,185
5,343,902
Tax on profit
10
(1,008,083)
(1,505,255)
Profit for the financial year and total comprehensive income
1,416,102
3,838,647
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.

The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.

LOUDWATER HOLDINGS LTD
GROUP BALANCE SHEET
AS AT 30 SEPTEMBER 2024
30 September 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
12
10,637,499
12,071,769
Tangible assets
13
1,001,640
1,026,587
Investments
14
713,997
697,910
12,353,136
13,796,266
Current assets
Stocks
17
9,959,874
9,219,497
Debtors falling due after more than one year
18
-
18,545,726
Debtors falling due within one year
18
45,288,418
24,855,359
Cash at bank and in hand
8,599,870
9,145,711
63,848,162
61,766,293
Creditors: amounts falling due within one year
19
(20,630,130)
(20,928,395)
Net current assets
43,218,032
40,837,898
Total assets less current liabilities
55,571,168
54,634,164
Creditors: amounts falling due after more than one year
20
-
(56,691)
Provisions for liabilities
Deferred tax liability
22
11,264
17,095
(11,264)
(17,095)
Net assets
55,559,904
54,560,378
Capital and reserves
Called up share capital
24
52,310,000
52,310,000
Profit and loss reserves
3,249,904
2,250,378
Total equity
55,559,904
54,560,378
The financial statements were approved by the board of directors and authorised for issue on 22 April 2025 and are signed on its behalf by:
22 April 2025
Mr M Stimler
Director
Company registration number 13867173 (England and Wales)
LOUDWATER HOLDINGS LTD
COMPANY BALANCE SHEET
AS AT 30 SEPTEMBER 2024
30 September 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
14
52,310,000
52,310,000
Creditors: amounts falling due within one year
19
(26,718)
(11,985)
Net current liabilities
(26,718)
(11,985)
Net assets
52,283,282
52,298,015
Capital and reserves
Called up share capital
24
52,310,000
52,310,000
Profit and loss reserves
(26,718)
(11,985)
Total equity
52,283,282
52,298,015

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 £1,385,655 (2023 - £1,591,808).

The financial statements were approved by the board of directors and authorised for issue on 22 April 2025 and are signed on its behalf by:
22 April 2025
Mr M Stimler
Director
Company registration number 13867173 (England and Wales)
LOUDWATER HOLDINGS LTD
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 October 2022
52,310,000
648,010
52,958,010
Year ended 30 September 2023:
Profit and total comprehensive income
-
3,838,647
3,838,647
Dividends
11
-
(1,598,033)
(1,598,033)
Distributions
-
(638,246)
(638,246)
Balance at 30 September 2023
52,310,000
2,250,378
54,560,378
Year ended 30 September 2024:
Profit and total comprehensive income
-
1,416,102
1,416,102
Dividends
11
-
(1,400,388)
(1,400,388)
Other movements
-
983,812
983,812
Balance at 30 September 2024
52,310,000
3,249,904
55,559,904
LOUDWATER HOLDINGS LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 14 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 October 2022
52,310,000
(5,760)
52,304,240
Year ended 30 September 2023:
Profit and total comprehensive income for the year
-
1,591,808
1,591,808
Dividends
11
-
(1,598,033)
(1,598,033)
Balance at 30 September 2023
52,310,000
(11,985)
52,298,015
Year ended 30 September 2024:
Profit and total comprehensive income
-
1,385,655
1,385,655
Dividends
11
-
(1,400,388)
(1,400,388)
Balance at 30 September 2024
52,310,000
(26,718)
52,283,282
LOUDWATER HOLDINGS LTD
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 15 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
2,521,090
8,795,397
Interest paid
(737,302)
(915,706)
Income taxes paid
(1,690,214)
(801,082)
Net cash inflow from operating activities
93,574
7,078,609
Investing activities
Purchase of tangible fixed assets
(453)
(5,812)
Purchase of investments
(16,087)
-
Interest received
211
-
Net cash used in investing activities
(16,329)
(5,812)
Financing activities
Repayment of bank loans
(91,045)
(28,827)
Dividends paid to equity shareholders
(1,400,388)
(1,598,033)
Net cash used in financing activities
(1,491,433)
(1,626,860)
Net (decrease)/increase in cash and cash equivalents
(1,414,188)
5,445,937
Cash and cash equivalents at beginning of year
(2,498,956)
(8,403,536)
Effect of foreign exchange rates
236,828
458,643
Cash and cash equivalents at end of year
(3,676,316)
(2,498,956)
Relating to:
Cash at bank and in hand
8,599,870
9,145,711
Bank overdrafts included in creditors payable within one year
(12,276,186)
(11,644,667)
LOUDWATER HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 16 -
1
Accounting policies
Company information

Loudwater Holdings Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Honeypot House, 56a Crewys Road, London, NW2 2AD.

 

The group consists of Loudwater Holdings Ltd and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

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

 

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

LOUDWATER HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 17 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Loudwater Holdings Ltd 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 September 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

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

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

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods provided in the normal course of business, and is shown net of VAT. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

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

LOUDWATER HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 18 -
1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 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, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Leasehold buildings
Over the term of the lease of 48 years
Leasehold land
Nil
Fixtures and fittings
25% reducing balance
Computer equipment
25% straight line - 33% 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.

1.8
Fixed asset investments

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

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible 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 group 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.

LOUDWATER HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 19 -

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

 

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

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

1.10
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
Cash and cash equivalents

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

1.12
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

LOUDWATER HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 20 -
Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

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

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, 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.

LOUDWATER HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 21 -
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.

Derecognition of financial liabilities

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

1.13
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.14
Taxation

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

Current tax

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

Deferred tax

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

 

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

LOUDWATER HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 22 -
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.

1.17
Leases

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

1.18
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

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

 

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

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.

Goodwill

The group amortises goodwill over its estimated useful life. The estimation of the useful life is based on performance as well as expectations about future use and therefore requires estimates and assumptions to be applied by the directors.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sale of goods
95,098,323
114,199,541
LOUDWATER HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
3
Turnover and other revenue
(Continued)
- 23 -
2024
2023
£
£
Other revenue
Interest income
211
(57,221)
Rent receivable
57,816
57,500

In the opinion of the directors it would be seriously prejudicial to the interests of the group to disclose a geographic analysis of the turnover of the group. Consequently, in accordance with the provisions of the Companies Act 2006, the directors have not disclosed these particulars of turnover.

4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging:
Exchange losses
786,582
329,617
Depreciation of owned tangible fixed assets
25,400
23,862
Amortisation of intangible assets
1,434,270
1,434,270
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
13,800
5,400
Audit of the financial statements of the company's subsidiaries
33,900
33,640
47,700
39,040
For other services
Taxation compliance services
6,770
3,230
All other non-audit services
16,171
13,722
22,941
16,952
LOUDWATER HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 24 -
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Administration staff
10
9
-
-
Sales staff
6
6
-
-
Total
16
15
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
640,103
642,690
-
0
-
0
Social security costs
72,738
75,050
-
-
Pension costs
15,319
193,507
-
0
-
0
728,160
911,247
-
0
-
0
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
13,920
13,920
Group pension contributions to defined contribution schemes
-
20,000
13,920
13,920
The number of directors for whom reirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).
8
Investment income
2024
2023
£
£
Interest income
Other interest income
211
(57,221)
LOUDWATER HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 25 -
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
737,302
879,622
Other finance costs:
Other interest
99,594
36,084
Total finance costs
836,896
915,706
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
979,137
1,510,772
Adjustments in respect of prior periods
34,777
(637)
Total current tax
1,013,914
1,510,135
Deferred tax
Origination and reversal of timing differences
(5,831)
(4,880)
Total tax charge
1,008,083
1,505,255

The corporation tax rate has increased from 19% to 25% from 1 April 2023. The effective tax rate for the year ended 30 September 2023 was 6 months at 19% and 6 months at 25%. The effective tax rate for the year ended 30 September 2024 was 25%.

 

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
2,424,185
5,343,902
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.00%)
606,046
1,175,658
Tax effect of expenses that are not deductible in determining taxable profit
8,368
13,081
Effect of change in corporation tax rate
-
387
Group relief
(81)
2,312
Permanent capital allowances in excess of depreciation
(85)
(1,455)
Depreciation on assets not qualifying for tax allowances
490
5,250
Amortisation on assets not qualifying for tax allowances
358,568
315,539
Under/ (Over) provided in prior years
34,777
(637)
Others
-
0
(4,880)
Taxation charge
1,008,083
1,505,255
LOUDWATER HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 26 -
11
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Interim paid
1,400,388
1,598,033
12
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 October 2023 and 30 September 2024
14,342,696
Amortisation and impairment
At 1 October 2023
2,270,927
Amortisation charged for the year
1,434,270
At 30 September 2024
3,705,197
Carrying amount
At 30 September 2024
10,637,499
At 30 September 2023
12,071,769
The company had no intangible fixed assets at 30 September 2024 or 30 September 2023.
13
Tangible fixed assets
Group
Leasehold buildings
Fixtures and fittings
Computer equipment
Total
£
£
£
£
Cost
At 1 October 2023
1,033,985
8,729
23,655
1,066,369
Additions
-
0
453
-
0
453
At 30 September 2024
1,033,985
9,182
23,655
1,066,822
Depreciation and impairment
At 1 October 2023
27,865
3,042
8,875
39,782
Depreciation charged in the year
17,184
1,535
6,681
25,400
At 30 September 2024
45,049
4,577
15,556
65,182
Carrying amount
At 30 September 2024
988,936
4,605
8,099
1,001,640
At 30 September 2023
1,006,120
5,687
14,780
1,026,587
The company had no tangible fixed assets at 30 September 2024 or 30 September 2023.
LOUDWATER HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 27 -
14
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
52,310,000
52,310,000
Unlisted investments
713,997
697,910
-
0
-
0
713,997
697,910
52,310,000
52,310,000
Movements in fixed asset investments
Group
Investments
£
Cost or valuation
At 1 October 2023
697,910
Additions
16,087
At 30 September 2024
713,997
Carrying amount
At 30 September 2024
713,997
At 30 September 2023
697,910
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 October 2023 and 30 September 2024
52,310,000
Carrying amount
At 30 September 2024
52,310,000
At 30 September 2023
52,310,000
15
Subsidiaries

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

Name of undertaking
Address
Class of
% Held
shares held
Direct
Indirect
Loudwater Trade and Finance Limited
1
Ordinary shares
100.00
-
GMH Trading Limited
2
Ordinary shares
-
100.00
Loudwater Med Ltd
3
Ordinary shares
-
100.00
Loudwater Enterprises Limited
4
Ordinary shares
-
100.00
LOUDWATER HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
15
Subsidiaries
(Continued)
- 28 -

Registered office addresses (all UK unless otherwise indicated):

1,2,3
Honeypot House, 56a Crewys Road, London, NW2 2AD
4
Lynwood House, 373/375 Station Road, Harrow, Middlesex, HA1 2AW
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Loudwater Trade and Finance Limited
42,934,435
2,823,567
GMH Trading Limited
3,265,381
239,430
Loudwater Med Ltd
(15,612)
(4,704)
Loudwater Enterprises Limited
100
-
16
Financial instruments
Group
Company
2024
2023
2024
2023
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
45,233,667
42,656,156
n/a
n/a
Equity instruments measured at cost less impairment
713,997
697,910
n/a
n/a
Carrying amount of financial liabilities
Measured at amortised cost
19,509,206
19,305,003
n/a
n/a
17
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Goods for resale
9,959,874
9,219,497
-
0
-
0
LOUDWATER HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 29 -
18
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
18,027,619
19,164,809
-
0
-
0
Other debtors
27,206,048
5,630,432
-
0
-
0
Prepayments and accrued income
54,751
60,118
-
0
-
0
45,288,418
24,855,359
-
-
Amounts falling due after more than one year:
Amount owed by related parties
-
0
12,366,498
-
0
-
0
Other debtors
-
0
6,179,228
-
0
-
0
-
18,545,726
-
-
Total debtors
45,288,418
43,401,085
-
-
19
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
21
12,276,186
11,679,021
-
0
-
0
Trade creditors
6,162,447
5,834,438
-
0
5,744
Amounts owed to group undertakings
-
0
-
0
15,528
121
Corporation tax payable
1,082,624
1,659,541
-
0
-
0
Other taxation and social security
38,300
20,542
-
-
Other creditors
14,098
124,251
-
0
-
0
Accruals and deferred income
1,056,475
1,610,602
11,190
6,120
20,630,130
20,928,395
26,718
11,985
20
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
21
-
0
56,691
-
0
-
0
LOUDWATER HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 30 -
21
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
-
0
91,045
-
0
-
0
Bank overdrafts
12,276,186
11,644,667
-
0
-
0
12,276,186
11,735,712
-
-
Payable within one year
12,276,186
11,679,021
-
0
-
0
Payable after one year
-
0
56,691
-
0
-
0

The bank borrowings of £12,276,186 (2023: £11,735,712) are secured by way of a debenture and fixed and floating charges over the group's property and assets.

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
11,264
11,826
Tax losses
-
5,269
11,264
17,095
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 October 2023
17,095
-
Credit to profit or loss
(5,831)
-
Liability at 30 September 2024
11,264
-

The deferred tax liability set out above is expected to reverse and relates to accelerated capital allowances that are expected to mature.

LOUDWATER HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 31 -
23
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
15,319
193,507

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
Ordinary A shares of £1 each
39,232,500
39,232,500
39,232,500
39,232,500
Ordinary B shares of £1 each
13,077,500
13,077,500
13,077,500
13,077,500
52,310,000
52,310,000
52,310,000
52,310,000

Both classes of shares rank pari passu in all respects save that the directors are empowered to vote and declare dividends to any one or more of the share categories separately.

25
Related party transactions
Transactions with related parties

 

The company has taken advantage of the exemption available in FRS 102 Section 33.1A "Related party disclosures" whereby it has not disclosed transactions with any wholly owned subsidiary undertaking.

 

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

Sales
Sales
Purchases
Purchases
2024
2023
2024
2023
£
£
£
£
Group
Other related parties
5,655,033
226,827
7,250,630
-
Rental income
Other Services
2024
2023
2024
2023
£
£
£
£
Group
Other related parties
61,730
57,500
58,379
80,999
LOUDWATER HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
25
Related party transactions
(Continued)
- 32 -

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2024
2023
£
£
Group
Other related parties
101,862
406,580

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2024
2023
£
£
Group
Other related parties
27,048,496
24,120,574

The company has no related party transactions and balances.

26
Controlling party

The ultimate controlling interest is held by Mr M Stimler, who is a director and the majority shareholder.

27
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
1,416,102
3,838,647
Adjustments for:
Taxation charged
1,008,083
1,505,255
Finance costs
836,896
915,706
Investment income
(211)
-
Amortisation and impairment of intangible assets
1,434,270
1,434,270
Depreciation and impairment of tangible fixed assets
25,400
23,862
Foreign exchange (losses) on cash equivalents
(236,828)
(458,643)
Distributions
-
(638,246)
Movements in working capital:
(Increase)/decrease in stocks
(740,377)
3,382,082
Increase in debtors
(903,521)
(213,950)
Decrease in creditors
(318,724)
(993,586)
Cash generated from operations
2,521,090
8,795,397
LOUDWATER HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 33 -
28
Analysis of changes in net debt - group
1 October 2023
Cash flows
Exchange rate movements
30 September 2024
£
£
£
£
Cash at bank and in hand
9,145,711
(513,646)
(32,195)
8,599,870
Bank overdrafts
(11,644,667)
(900,542)
269,023
(12,276,186)
(2,498,956)
(1,414,188)
236,828
(3,676,316)
Borrowings excluding overdrafts
(91,045)
91,045
-
-
(2,590,001)
(1,323,143)
236,828
(3,676,316)
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