Company registration number 07958824 (England and Wales)
FROG BIKES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
FROG BIKES LIMITED
COMPANY INFORMATION
Directors
Mr J Lawson
Mrs S Lawson
Company number
07958824
Registered office
Unit 3
Silwood Business Centre Silwood Park
Buckhurst Road
Ascot
Berkshire
SL5 7PW
Auditors
S&W Partners Audit Limited
22 Wycombe End
Beaconsfield
Buckinghamshire
HP9 1NB
FROG BIKES LIMITED
CONTENTS
Page
Strategic report
1 - 4
Directors' report
5 - 6
Independent auditor's report
7 - 9
Group statement of income and retained earnings
10
Group balance sheet
11
Company balance sheet
12
Group statement of cash flows
13
Company statement of cash flows
14
Notes to the financial statements
15 - 31
FROG BIKES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 1 -

The directors present the strategic report for the year ended 29 February 2024.

Fair review of the business

The principal activity of the group is that of design, assembly, sales and marketing of Frog Bikes, through independent bike stores worldwide.

This past year has been one of continued headwinds for Frog Bikes, and the bike industry as a whole. Sales dropped further as retailers continued to grapple with surplus stock and consumers remained cautious in their spending amidst economic uncertainties and lingering inflationary pressures. In addition, we lost some key staff during the year which has adversely impacted our sales (especially in our export markets).

As outlined in our 2021 accounts, the business was hit by an unexpected import duty of up to 48.5% applied to most of our componentry, after the UK left the EU. Prior to this, we had an EU manufacturer’s exemption. This was corrected in November 2021, but not refunded, and the 10 months of additional duties (Anti-Dumping Duties) cost us approximately £1.5m from Jan to Oct 21, and caused the business to make a loss. In March 2023 the Government included provisions in the Finance Bill to give the powers to backdate exemptions such as ours and in October 2023 the Minister for International Trade agreed to backdate the exemption. We are pleased to report that we received full repayment on 26 March 2024.

We started work to upgrade the functionality of our website last year to improve user experience, website speed and the customer journey as well as creating a more accessible and customer centric ecommerce experience with Frog. We hit some setbacks during the year which delayed our planned launch until May 2024.

On sustainability, the majority of our emissions are generated by the aluminium in our bikes - we have spent the last few years actively working with suppliers on plans to transition to using post consumer recycled aluminium in our bikes. In October 2023 we were awarded a green loan from the Development Bank of Wales to help fund this project. We have lined up our supply chain to switch to 25% post-consumer recycled aluminium frames and forks and expect to begin production in September 2024. We expect to see the associated step change in our emissions from 2025. We have now removed virtually all plastics from our outbound packaging and are exploring alternatives to our plastic fork protector which is the only remaining plastic item in our outbound packaging. These initiatives help keep us on track to meeting our commitment to halve our emissions by 2030. For more information on the progress we’re making on sustainability, please see the latest sustainability report on our website.

FROG BIKES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 2 -
Principal risks and uncertainties

The ability to manufacture cost-effectively in the UK and maintain an appropriate stock buffer. These risks are minimised through tight control of cash, combined with accurate and frequent management reporting, and an investment in forecasting systems, allowing us to be flexible and responsive to changing demands.

Reliance on a few key suppliers in some areas, and ensuring quality of parts and componentry arriving in Wales. We continue to invest in our buying team through training and recruitment, to help us manage suppliers better, and we now share our forecasts with key suppliers over an extended time horizon. We are focussed on diversifying our supply base to reduce our reliance on a small number of vital component suppliers. We also regularly evaluate alternative suppliers closer to home.

Product safety. Ensuring the safety of children's bikes is paramount. Risks include faulty materials, design flaws, or manufacturing defects that could lead to injuries or recalls. We mitigate these risks by testing our bikes in our in-house testing facility. Our comprehensive assessments encompass dimensional and functional checks, static loads, fatigue and impact testing that all ensure our bikes meet the minimum safety requirements and beyond (we test to the standards of BSI, EN, ASTM, and ISO), and also exhibit robustness, durability and long-lasting performance.

Sustainability of the high street retail model, on which most of our trade customers rely. The continued growth of online shopping presents a risk to these stores unless they (and we) fully embrace the opportunities that it also brings. We have improved the customer journey on our website and are able to offer consumers the purchasing option that best suits their needs.

The ability to remain competitive in Europe. The development of our solution in 2023 to get bikes into the EU without our stores having to incur customs and pay VAT has helped to smooth the sales process.

Affordability of our bikes. Whilst inflation has been coming down, consumers still appear cautious in their spending on 'big ticket' purchases such as our bikes. The quality and durability of our bikes results in a high resale value which brings down the net cost of ownership and we periodically evaluate alternative suppliers and components which may help reduce the cost of our bikes. In addition, some of our larger stockists offer flexible payment options, and our partnerships with lease schemes also help those looking to spread the cost of the bike.

Competition from new entrants, who match our lightweight credentials but at the expense of quality componentry. Our brand positioning needs to be about more than just light weight. To ensure our products remain highly desirable we have a programme of continual research into numerous aspects of our bikes’ design and manufacture, and important partnerships in both marketing and distribution.

An increasing focus on the environmental impact of goods and our desire to reduce our footprint as rapidly as possible means that we are having to adapt our supply chain to drastically reduce our emissions. We have committed to halve our emissions by 2030 and achieve Net Zero by 2050. We are seeking new suppliers in some areas, exploring novel materials, extending the life of each bike, and reducing our packaging. Whilst this involves some big shifts in our supply chain, we anticipate being able to deliver these changes in a cost-neutral way. Ultimately we hope to move to a totally circular model where we remanufacture bicycles at the end of their useful life. We saw a small increase in our emissions per bike in 2023 as we added new categories of emissions to our measurement (emissions from spares & accessories, and factory waste). On a like-for-like basis our emissions per bike increased very slightly by 0.8% as our emissions reduced at a slower rate than our drop in production. However, we made great progress on our emissions hotspot, aluminium - we are due to start production with 25% post consumer recycled aluminium frames and forks in September 2024 and expect this to deliver the associated step change in our emissions from 2025 as we roll out this recycled aluminium across our range. We are on track to meet our emissions reduction commitments.

Other risks and mitigations
The ability to grow manufacturing capability cost-effectively in UK, and maintain an appropriate stock buffer
These risks are minimised through tight control of cash, combined with accurate and frequent management reporting, and an investment in forecasting systems, allowing us to be flexible and responsive to changing demands.
Reliance on a few key suppliers in some areas, and ensuring quality of parts and componentry arriving in Wales
FROG BIKES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 3 -
We continue to invest in our buying team through training and recruitment, to help us manage suppliers better, and we now share our forecasts with key suppliers over an extended time horizon. We are focussed on diversifying our supply base to reduce our reliance on a small number of vital component suppliers. We are continuing to roll out supplier scorecards  to track compliance with high standards of employee safety and welfare, quality and reliability. We also regularly evaluate alternative suppliers closer to home.
Sustainability of the high street retail model, on which most of our trade customers rely
The acceleration of online shopping during the pandemic presents a risk to these stores unless they (and we) fully embrace the opportunities that it also brings.  We have improved the customer journey on our website.
The ability to remain price competitive in Europe after the pandemic
Non-tariff barriers have increased our costs to deliver to our key European markets, and we compete against European brands which do not suffer from these barriers.  A continued focus on efficient manufacturing, strong buying and keen pricing will be needed to remain competitive despite rising logistical and componentry costs.  The development of our solution in 2023 to get bikes into the EU without our stores having to incur customs and pay VAT will help to smooth the sales process.
Affordability of our bikes
Inflation may remain high for some time, eroding real household income. Consumers may, in response, choose to cut back on 'big ticket' purchases such as our bikes. The quality and durability of our bikes results in a high resale value which brings down the net cost of ownership and we periodically evaluate alternative suppliers and components which may help reduce the cost of our bikes. In addition, some of our larger stockists offer flexible payment options, and our partnerships with lease schemes also help those looking to spread the cost of the bike.
Competition from new entrants, who match our lightweight credentials but at the expense of quality componentry
Our brand positioning needs to be about more than just light weight.  To ensure our products remain highly desirable we have a programme of continual research into numerous aspects of our bikes' design and manufacture, and important partnerships in both marketing and distribution.
An increasing focus on the environmental impact of goods and our desire to reduce our footprint as rapidly as possible means that we are having to adapt our supply chain to drastically reduce our emissions
We have committed to halve our emissions by 2030 and achieve Net Zero by 2050. We are seeking new suppliers in some areas, exploring novel materials, extending the life of each bike, reducing our packaging, and adapting to new ways of travelling and working.  Whilst this involves some big shifts in our supply chain, we anticipate being able to deliver these changes in a cost-neutral way. Ultimately we hope to move to a totally circular model where we remanufacture bicycles at the end of their useful life. In 2021 we addressed the low hanging fruit of switching to renewables, alongside design improvements that reduced the materials used in our bikes and our packaging.  Our pace of reductions slowed in 2022 (3% reduction in emissions per bike vs 21% in 2021) as we turned our focus to our emissions hotspot, aluminium. We've made great progress on this major supply chain shift and hope to deliver the associated step change in our emissions from 2025. We are on track to meet our emissions reduction commitments.
Key performance indicators

The main key performance indicators for the group are as follows:

                              2024 2023

        

 

FROG BIKES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 4 -

On behalf of the board

Mr J Lawson
Director
30 April 2025
FROG BIKES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 5 -

The directors present their annual report and financial statements for the year ended 29 February 2024.

Principal activities

The principal activity of the company and group continued to be that of cycle trading, including retailing, wholesaling and manufacturing.

Results and dividends

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

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

No preference dividends were paid. 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 J Lawson
Mrs S Lawson
Auditor

S&W Partners Audit Limited were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Statement of directors' responsibilities

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

 

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

 

 

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

FROG BIKES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 6 -
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 group is aware of that information.

On behalf of the board
Mr J Lawson
Director
30 April 2025
FROG BIKES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FROG BIKES LIMITED
- 7 -
Opinion

We have audited the financial statements of Frog Bikes Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 29 February 2024 which comprise the group statement of income and retained earnings, the group balance sheet, the company balance sheet, the group statement of cash flows, the company 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:

FROG BIKES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FROG BIKES LIMITED
- 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.

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:

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

FROG BIKES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FROG BIKES LIMITED
- 9 -

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

There are inherent limitations in our audit procedures described above. 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.

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.

Keir Singleton (Senior Statutory Auditor)
For and on behalf of S&W Partners Audit Limited
30 April 2025
Chartered Accountants
Statutory Auditor
22 Wycombe End
Beaconsfield
Buckinghamshire
HP9 1NB
FROG BIKES LIMITED
GROUP STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 10 -
2024
2023
Notes
£
£
Turnover
3
5,904,901
9,472,208
Cost of sales
(2,961,841)
(7,030,469)
Gross profit
2,943,060
2,441,739
Administrative expenses
(2,754,065)
(2,582,299)
Other operating income
162,539
18,253
Operating profit/(loss)
4
351,534
(122,307)
Interest payable and similar expenses
7
(152,452)
(154,513)
Profit/(loss) before taxation
199,082
(276,820)
Tax on profit/(loss)
8
(97,462)
(743,100)
Profit/(loss) for the financial year
22
101,620
(1,019,920)
Retained earnings brought forward
(9,451,488)
(8,431,568)
Retained earnings carried forward
(9,349,868)
(9,451,488)
Profit/(loss) 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.
FROG BIKES LIMITED
GROUP BALANCE SHEET
AS AT 29 FEBRUARY 2024
29 February 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
9
50,025
71,785
Tangible assets
10
491,134
672,037
541,159
743,822
Current assets
Stocks
13
3,347,177
4,651,561
Debtors
14
2,956,870
1,082,377
Cash at bank and in hand
78,686
65,496
6,382,733
5,799,434
Creditors: amounts falling due within one year
15
(5,498,044)
(5,273,511)
Net current assets
884,689
525,923
Total assets less current liabilities
1,425,848
1,269,745
Creditors: amounts falling due after more than one year
16
(144,183)
(59,196)
Provisions for liabilities
Deferred tax liability
19
76,533
107,037
(76,533)
(107,037)
Net assets
1,205,132
1,103,512
Capital and reserves
Called up share capital
21
10,555,000
10,555,000
Profit and loss reserves
22
(9,349,868)
(9,451,488)
Total equity
1,205,132
1,103,512

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 30 April 2025 and are signed on its behalf by:
30 April 2025
Mr J  Lawson
Director
Company registration number 07958824 (England and Wales)
FROG BIKES LIMITED
COMPANY BALANCE SHEET
AS AT 29 FEBRUARY 2024
29 February 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
9
50,025
71,785
Tangible assets
10
491,135
672,038
Investments
11
39
39
541,199
743,862
Current assets
Stocks
13
3,321,851
4,651,561
Debtors
14
3,755,932
1,824,521
Cash at bank and in hand
73,805
60,658
7,151,588
6,536,740
Creditors: amounts falling due within one year
15
(5,920,954)
(5,682,372)
Net current assets
1,230,634
854,368
Total assets less current liabilities
1,771,833
1,598,230
Creditors: amounts falling due after more than one year
16
(144,183)
(59,196)
Provisions for liabilities
Deferred tax liability
19
76,533
107,037
(76,533)
(107,037)
Net assets
1,551,117
1,431,997
Capital and reserves
Called up share capital
21
10,555,000
10,555,000
Profit and loss reserves
22
(9,003,883)
(9,123,003)
Total equity
1,551,117
1,431,997

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 £119,121 (2023 - £3,575,760 loss).

The financial statements were approved by the board of directors and authorised for issue on 30 April 2025 and are signed on its behalf by:
30 April 2025
Mr J  Lawson
Director
Company Registration No. 07958824
FROG BIKES LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
27
(14,701)
766,226
Interest paid
(29,246)
(56,082)
Income taxes paid
(44)
-
Net cash (outflow)/inflow from operating activities
(43,991)
710,144
Investing activities
Purchase of intangible assets
(6,403)
(74,621)
Purchase of tangible fixed assets
(20,537)
386,498
Proceeds on disposal of tangible fixed assets
-
(398,791)
Net cash used in investing activities
(26,940)
(86,914)
Financing activities
Proceeds from borrowings
385,706
974,992
Repayment of borrowings
(290,000)
-
Proceeds of new bank loans
150,000
-
Repayment of bank loans
-
(1,758,691)
Payment of finance leases obligations
(60,098)
(106,678)
Net cash generated from/(used in) financing activities
185,608
(890,377)
Net increase/(decrease) in cash and cash equivalents
114,677
(267,147)
Cash and cash equivalents at beginning of year
(35,991)
231,156
Cash and cash equivalents at end of year
78,686
(35,991)
Relating to:
Cash at bank and in hand
78,686
65,496
Bank overdrafts included in creditors payable within one year
-
(101,487)
FROG BIKES LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
26
(14,789)
(1,165,964)
Interest paid
(29,245)
(247)
Net cash outflow from operating activities
(44,034)
(1,166,211)
Investing activities
Purchase of intangible assets
(6,403)
(74,621)
Purchase of tangible fixed assets
(20,537)
(26,878)
Net cash used in investing activities
(26,940)
(101,499)
Financing activities
Proceeds from borrowings
385,706
974,992
Repayment of borrowings
(290,000)
-
Proceeds of new bank loans
150,000
-
Payment of finance leases obligations
(60,098)
(17,037)
Net cash generated from financing activities
185,608
957,955
Net increase/(decrease) in cash and cash equivalents
114,634
(309,755)
Cash and cash equivalents at beginning of year
(40,829)
268,926
Cash and cash equivalents at end of year
73,805
(40,829)
Relating to:
Cash at bank and in hand
73,805
60,658
Bank overdrafts included in creditors payable within one year
-
(101,487)
FROG BIKES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 15 -
1
Accounting policies
Company information

Frog Bikes Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Unit 3, Silwood Business Centre Silwood Park, Buckhurst Road, Ascot, Berkshire, SL5 7PW.

 

The group consists of Frog Bikes Limited and all of its subsidiaries.

1.1
Accounting convention

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

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

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

1.2
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Frog Bikes Limited together with all entities controlled by the parent company (its subsidiaries).

 

All financial statements are made up to 29 February 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.

1.3
Going concern

Forecast and budgets provided indicate that the group will continue as a going concern for at least 12 months from the date of singing of the financial statements. However, as with every forecast, there are inherent risks to the forecast such as macro-economic situations in the key markets, regulatory risks, technology disruptions, component costs, or competition developments.

 

The group’s ability to continue as a going concern is also reliant on the balance due to the directors, in aggregate £3.7 million, not being called in by the directors. The directors have indicated that they would not request repayment of existing loans until the company is in a financial position to do so, being at least one year from the date of the approval of these financial statements. The directors have advised that they are no longer willing to provide additional loans to the business above the amounts already provided.

 

If forecast figures are not met then additional funding solutions would be required, that are not yet secured. The directors are actively engaging in discussions for additional funding or investment.

 

The results for the beginning of 2025 have exceeded forecasts and thus the directors have a reasonable expectation that the company currently has adequate resources to continue their operations for the foreseeable future. For this reason, they continue to adopt the going concern basis of accounting in preparing the financial statements and the financial statements do not include any adjustments that would result if Frog Bikes was unable to continue as a going concern.

FROG BIKES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 16 -
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.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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

1.5
Research and development expenditure

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

1.6
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Amortisation 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:

Development costs
3 years straight line
1.7
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

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

Leasehold improvements
4 years straight line
Plant and equipment
3, 5 or 10 years straight line
Fixtures and fittings
5 years straight line
Computers
3 years straight line
Motor vehicles
4 or 5 years straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.8
Fixed asset investments

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

 

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

FROG BIKES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 17 -

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

1.9
Impairment of fixed assets

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

 

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

1.10
Stocks

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

 

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

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

1.11
Financial instruments

The company has elected to apply the provisions of Section 11 ”Basic Financial Instruments” to all of its financial instruments.

 

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

Basic financial assets

Short term debtors are measured at transaction price less any provision for impairment. Loans receivable are measured initially at fair value, net of transaction costs and are subsequently carried at amortised costs using the effective interest method, less any provision for impairment.

Basic financial liabilities

Short term creditors are measured at transaction price. Other financial liabilities, including bank loans and other loans, are measured initially at fair value, net of transaction costs and are subsequently carried at amortised costs using the effective interest method.

1.12
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.

1.13
Taxation

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

FROG BIKES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 18 -
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.

 

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.

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.

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.

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

1.17
Government grants

The group received an amount from the Welsh government under the decarbonisation grant which has also been recognised in the profit and loss account within other operating income.

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.

FROG BIKES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 19 -
2
Judgements and key sources of estimation uncertainty

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

 

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

In the directors' opinion, there are no key judgements or key sources of estimation uncertainty applied to these financial statements.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Retail
5,904,901
9,472,208
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
3,877,436
5,670,913
Rest of the world
2,027,465
3,801,295
5,904,901
9,472,208
2024
2023
£
£
Other revenue
Grants received
-
18,253
4
Operating profit/(loss)
2024
2023
£
£
Operating profit/(loss) for the year is stated after charging/(crediting):
Exchange losses/(gains)
44,092
(63,366)
Government grants
-
(18,253)
Fees payable to the group's auditor for the audit of the group's financial statements
22,000
21,000
Depreciation of owned tangible fixed assets
168,522
191,639
Depreciation of tangible fixed assets held under finance leases
32,918
10,122
Amortisation of intangible assets
28,163
10,978
Operating lease charges
471,457
90,298
FROG BIKES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 20 -
5
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Management
2
2
2
2
Administration
33
33
33
33
Operations
27
44
27
-
Total
62
79
62
35

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
1,959,167
2,604,131
1,957,161
1,505,510
Social security costs
183,106
230,261
183,106
138,973
Pension costs
49,369
64,391
49,369
34,098
2,191,642
2,898,783
2,189,636
1,678,581
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
16,286
16,524
Company pension contributions to defined contribution schemes
480
480
16,766
17,004

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).

7
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
35,739
247
Other finance costs:
Interest on finance leases and hire purchase contracts
-
629
Other interest
116,713
153,637
Total finance costs
152,452
154,513
FROG BIKES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 21 -
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
(76,023)
-
0
Adjustments in respect of prior periods
(22,898)
-
0
Other taxes
45
-
0
Total current tax
(98,876)
-
0
Deferred tax
Origination and reversal of timing differences
196,338
743,100
Total tax charge
97,462
743,100

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

2024
2023
£
£
Profit/(loss) before taxation
199,082
(276,820)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 24.50% (2023: 19.00%)
48,775
(52,596)
Tax effect of expenses that are not deductible in determining taxable profit
1,626
-
0
Change in unrecognised deferred tax assets
153,326
852,471
Effect of change in corporation tax rate
(12,451)
-
Group relief
(364,180)
-
0
Permanent capital allowances in excess of depreciation
-
(912)
Depreciation on assets not qualifying for tax allowances
785
852
Research and development tax credit
(98,921)
(6,412)
Effect of overseas tax rates
45
(3,987)
Deferred tax adjustments in respect of prior years
4,277
(46,316)
Unrecognised deferred tax asset
364,180
-
0
Taxation charge
97,462
743,100
FROG BIKES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 22 -
9
Intangible fixed assets
Group
Development costs
£
Cost
At 1 March 2023
92,621
Additions
6,403
At 29 February 2024
99,024
Amortisation and impairment
At 1 March 2023
20,836
Amortisation charged for the year
28,163
At 29 February 2024
48,999
Carrying amount
At 29 February 2024
50,025
At 28 February 2023
71,785
Company
Development costs
£
Cost
At 1 March 2023
92,621
Additions
6,403
At 29 February 2024
99,024
Amortisation and impairment
At 1 March 2023
20,836
Amortisation charged for the year
28,163
At 29 February 2024
48,999
Carrying amount
At 29 February 2024
50,025
At 28 February 2023
71,785
FROG BIKES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 23 -
10
Tangible fixed assets
Group
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 March 2023
398,791
1,101,244
208,533
134,278
61,467
1,904,313
Additions
-
0
3,875
10,654
6,008
-
0
20,537
At 29 February 2024
398,791
1,105,119
219,187
140,286
61,467
1,924,850
Depreciation and impairment
At 1 March 2023
370,753
615,867
138,326
97,208
10,122
1,232,276
Depreciation charged in the year
12,941
119,738
34,770
19,615
14,376
201,440
At 29 February 2024
383,694
735,605
173,096
116,823
24,498
1,433,716
Carrying amount
At 29 February 2024
15,097
369,514
46,091
23,463
36,969
491,134
At 28 February 2023
28,038
485,377
70,207
37,070
51,345
672,037
Company
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 March 2023
28,038
485,377
175,551
97,473
61,467
847,906
Additions
-
0
3,875
10,654
6,008
-
0
20,537
At 29 February 2024
28,038
489,252
186,205
103,481
61,467
868,443
Depreciation and impairment
At 1 March 2023
-
0
-
0
105,343
60,403
10,122
175,868
Depreciation charged in the year
12,941
119,738
34,770
19,615
14,376
201,440
At 29 February 2024
12,941
119,738
140,113
80,018
24,498
377,308
Carrying amount
At 29 February 2024
15,097
369,514
46,092
23,463
36,969
491,135
At 28 February 2023
28,038
485,377
70,208
37,070
51,345
672,038
FROG BIKES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
10
Tangible fixed assets
(Continued)
- 24 -

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

Group
Company
2024
2023
2024
2023
£
£
£
£
Plant and equipment
31,479
50,021
31,479
50,021
Motor vehicles
36,969
51,344
36,969
51,344
68,448
101,365
68,448
101,365
11
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
12
-
0
-
0
39
39
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 March 2023 and 29 February 2024
39
Carrying amount
At 29 February 2024
39
At 28 February 2023
39
12
Subsidiaries

Details of the company's subsidiaries at 29 February 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Frog Bikes Manufacturing Limited
England & Wales
Ordinary
100.00
Frog Bikes Inc
United States of America
Ordinary
100.00
Frog Bikes Canada Limited
Canada
Ordinary
100.00
FROG BIKES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 25 -
13
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Work in progress
4,004
-
4,004
-
Finished goods and goods for resale
3,343,173
4,651,561
3,317,847
4,651,561
3,347,177
4,651,561
3,321,851
4,651,561
14
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
731,253
302,032
668,722
313,824
Corporation tax recoverable
98,921
-
0
98,921
-
0
Amounts owed by group undertakings
-
-
2,321,331
739,524
Other debtors
164,545
125,641
163,329
124,383
Prepayments and accrued income
1,884,790
350,500
426,268
342,586
2,879,509
778,173
3,678,571
1,520,317
Amounts falling due after more than one year:
Deferred tax asset (note 19)
77,361
304,204
77,361
304,204
Total debtors
2,956,870
1,082,377
3,755,932
1,824,521
15
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
17
506,039
183,765
506,039
183,765
Obligations under finance leases
18
27,076
53,723
27,076
53,723
Trade creditors
575,373
498,428
574,370
486,899
Amounts owed to group undertakings
-
0
-
0
441,596
437,387
Other taxation and social security
36,576
42,548
39,443
41,145
Other creditors
3,766,090
4,062,667
3,766,090
4,062,418
Accruals and deferred income
586,890
432,380
566,340
417,035
5,498,044
5,273,511
5,920,954
5,682,372
FROG BIKES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
15
Creditors: amounts falling due within one year
(Continued)
- 26 -

Included in other creditors are Director Loan balances of £3,723,859 (2023 - £4,013,859) which are secured by fixed and floating charges over the assets of the group.

 

Bank loans and overdrafts totalling £467,984 (2023 - £82,278) are secured by way of fixed and floating charge of all property, assets and rights of the company present and future not subject to a fixed charge.

 

Included in obligations under finance leases are hire purchase and finance lease obligations of £27,076 (2023 - £53,723) that are secured by fixed charges over the assets to which they relate.

 

Also within bank loans and overdrafts totalling is an amount of £150,555 (2023 - £nil) secured by way of fixed and floating charge of all property, assets and rights of the company present and future.

16
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
17
112,500
-
0
112,500
-
0
Obligations under finance leases
18
31,683
59,196
31,683
59,196
144,183
59,196
144,183
59,196

Included in obligations under finance leases are hire purchase and finance lease obligations of £31,683 (2023 - £59,195) that are secured by fixed charges over the assets to which they relate.

 

Included in bank loans and overdrafts totalling is an amount of £112,500 (2023 - £nil) secured by way of fixed and floating charge of all property, assets and rights of the company present and future.

17
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
618,539
82,278
618,539
82,278
Bank overdrafts
-
0
101,487
-
0
101,487
618,539
183,765
618,539
183,765
Payable within one year
506,039
183,765
506,039
183,765
Payable after one year
112,500
-
0
112,500
-
0

Included in bank loans are amounts provided under the group import line facility. A composite company multilateral guarantee has been provided by Frog Bikes Limited and its subsidiaries giving a fixed and floating charge over all assets.

FROG BIKES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 27 -
18
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
27,076
53,724
27,076
53,724
In two to five years
31,683
59,195
31,683
59,195
58,759
112,919
58,759
112,919

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 10 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

19
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Group
£
£
£
£
Accelerated capital allowances
76,533
107,037
-
-
Tax losses
-
-
76,532
304,204
Retirement benefit obligations
-
-
829
-
76,533
107,037
77,361
304,204
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Company
£
£
£
£
Accelerated capital allowances
76,533
107,037
-
-
Tax losses
-
-
76,532
304,204
Retirement benefit obligations
-
-
829
-
76,533
107,037
77,361
304,204
FROG BIKES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
19
Deferred taxation
(Continued)
- 28 -
Group
Company
2024
2024
Movements in the year:
£
£
Asset at 1 March 2023
(197,167)
(197,167)
Charge to profit or loss
196,339
196,339
Asset at 29 February 2024
(828)
(828)
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
49,369
64,391

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.

21
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 0.1p each
10,255,000,000
10,255,000,000
10,255,000
10,255,000
10,255,000,000
10,255,000,000
10,255,000
10,255,000
2024
2023
2024
2023
Preference share capital
Number
Number
£
£
Issued and fully paid
Preference shares of £1 each
300,000
300,000
300,000
300,000
300,000
300,000
300,000
300,000
Preference shares classified as equity
300,000
300,000
300,000
300,000
Total equity share capital
10,555,000
10,555,000
FROG BIKES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 29 -
22
Reserves
Profit and loss reserves

The profit and loss reserve is used to record the balance of retained earnings to carry forward. It is fully distributable.

23
Operating lease commitments
Lessee

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

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
322,376
322,376
322,376
322,376
Between two and five years
288,750
611,126
288,750
611,126
611,126
933,502
611,126
933,502
24
Related party transactions

The company has taken advantage of the exemption permitted by Section 33 'Related Party Disclosures', not to provide disclosures of transactions entered into with other wholly-owned members of the group.

                    

At the balance sheet date the company owed £3,723,859 (2023 - £4,013,859) to the directors. During the year interest was paid at 3% totalling £116,713 (2023 - £97,802) to the directors.

25
Controlling party

The Group is controlled by J Lawson and S Lawson through their 100% shareholding in Frog Bikes Limited.

FROG BIKES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 30 -
26
Cash absorbed by operations - company
2024
2023
£
£
Profit/(loss) for the year after tax
119,120
(3,575,760)
Adjustments for:
Taxation charged
97,417
743,100
Finance costs
152,452
98,678
Amortisation and impairment of intangible assets
28,163
10,978
Depreciation and impairment of tangible fixed assets
201,440
47,917
Other gains and losses
(1,456,719)
3,506,334
Movements in working capital:
Decrease in stocks
1,329,710
178,139
Increase in debtors
(602,614)
(2,485,724)
Increase in creditors
116,242
310,374
Cash absorbed by operations
(14,789)
(1,165,964)
27
Cash (absorbed by)/generated from group operations
2024
2023
£
£
Profit/(loss) for the year after tax
101,620
(1,019,920)
Adjustments for:
Taxation charged
97,462
743,100
Finance costs
152,452
154,513
Amortisation and impairment of intangible assets
28,163
10,978
Depreciation and impairment of tangible fixed assets
201,440
201,761
Movements in working capital:
Decrease in stocks
1,304,384
821,384
(Increase)/decrease in debtors
(2,002,415)
846,527
Increase/(decrease) in creditors
102,193
(992,117)
Cash (absorbed by)/generated from operations
(14,701)
766,226
FROG BIKES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 31 -
28
Analysis of changes in net debt - group
1 March 2023
Cash flows
29 February 2024
£
£
£
Cash at bank and in hand
65,496
13,190
78,686
Bank overdrafts
(101,487)
101,487
-
0
(35,991)
114,677
78,686
Borrowings excluding overdrafts
(82,278)
(536,261)
(618,539)
Obligations under finance leases
(112,919)
54,160
(58,759)
(231,188)
(367,424)
(598,612)
29
Analysis of changes in net debt - company
1 March 2023
Cash flows
29 February 2024
£
£
£
Cash at bank and in hand
60,658
13,147
73,805
Bank overdrafts
(101,487)
101,487
-
0
(40,829)
114,634
73,805
Borrowings excluding overdrafts
(82,278)
(536,261)
(618,539)
Obligations under finance leases
(112,919)
54,160
(58,759)
(236,026)
(367,467)
(603,493)
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