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Registered number: 09340207









NEWSTEAM GROUP LTD









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 28 DECEMBER 2024

 
NEWSTEAM GROUP LTD
 
 
COMPANY INFORMATION


Directors
Jonathan Robert Kennett 
Neil Hilton Jagger 
Simon Wakeham 
Paul Christian Goddard (resigned 31 December 2023)




Registered number
09340207



Registered office
Cauldon Locks
Shelton New Road

Stoke-On-Trent

ST4 7AA





 
NEWSTEAM GROUP LTD
 

CONTENTS



Page
Strategic Report
 
 
1 - 3
Directors' Report
 
 
4 - 5
Independent Auditors' Report
 
 
6 - 9
Statement of Comprehensive Income
 
 
10
Statement of Financial Position
 
 
11 - 12
Statement of Changes in Equity
 
 
13 - 14
Statement of Cash Flows
 
 
15 - 16
Analysis of Net Debt
 
 
17
Notes to the Financial Statements
 
 
18 - 38


 
NEWSTEAM GROUP LTD
 
 
STRATEGIC REPORT
FOR THE PERIOD ENDED 28 DECEMBER 2024

Introduction
 
The directors present their strategic report for Newsteam Group Ltd (NTG) for the period ended 28 December 2024.

Business review
 
The company provides a national delivery service, predominantly for newspapers, to individual customers, newsagents, national chains and publishers across the UK. In 2024, the company continued to acquire rounds, and other news distribution businesses, to extend its coverage across the UK and cement its position as the largest daily news media distribution network in the country. This represents a key USP as publishers contract with the NTG to directly distribute their titles to end users.
NTG increased its turnover by 15% to £67.7m (2023: £58.7m) and returned to a net assets position, reflecting the company’s robust operational performance and effective cost management.
With operating profits rising sharply to £4.25m (2023: £1.1m), the company was also able to fully repay the £3.14m loan to Kinton Technology within the period.

Future Developments
The directors remain focused on consolidating the company’s market position and driving further growth in home delivery and retail distribution. The purchase of NTG’s logistics software supplier in 2023 by NTG’s parent company, Suonal Ltd, has enabled NTG to focus the software development on making further operational efficiencies and adapt to new markets. It has also continued to diversify its home delivery options to include other products and the board are actively looking at new service offerings to diversify revenue streams.
Market Outlook and Strategic Positioning
The board recognises that the UK newspaper distribution sector is undergoing significant consolidation and transformation. Looking ahead, the board believes that market dynamics will ultimately lead to a single major distributor serving both home delivery and retail channels. This anticipated shift is expected to streamline the supply chain, enhance operational efficiencies and provide a unified service to both consumer and retail customers.
Within this evolving landscape, the board is confident that NTG is well positioned to capitalise on emerging opportunities. In particular, the board expects to see substantial growth in the sub-retail segment, as more news retailers seek to source their supplies directly from NTG rather than relying on the established wholesale network. This trend is underpinned by NTG’s expanding capabilities and reliable service offering.
The board’s strategy is to leverage these strengths to increase market share in both home delivery and retail distribution, further consolidating NTG’s position as a leading supplier to the sector. The company will continue to invest in technology, logistics and customer service to support this growth and ensure the company remains at the forefront of industry developments.

Page 1

 
NEWSTEAM GROUP LTD
 

STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 28 DECEMBER 2024

Principal risks and uncertainties
 
The directors regularly review the risks facing the business and have established procedures and controls to mitigate these where possible. The principal risks and uncertainties include:
• 
Market Risk: The printed news market has been in decline for some time and the directors believe this trend will continue. The customer base is increasingly mature. The digital channel is distributing an increased proportion of news media. In 2024, publishers continued to protect their profitability by pricing actions well above inflation. In recent years there has been a very significant reduction in the number of newsagents as volumes have declined and margins have been squeezed. The board view this as an opportunity for NTG to acquire home delivery rounds of newsagents looking to exit the category.
• Operational Risk: Fuel price volatility, or labour shortages, could result in above inflation increases which would have a significant impact on gross margin. NTG would recover any impact through pricing action which could increase customer attrition. NTG is mitigating this risk by making software improvements to maximise the number of drops per round which will lead to greater earning potential for its driver base. In addition, our acquisition strategy is targeted in areas of lower density amongst our existing customer base which will help achieve the same objective.
• 
Credit Risk: The company is exposed to the risk of non-payment by customers. Credit control procedures are in place to monitor and manage this risk.
• 
Regulatory Risk: There are no expected upcoming regulatory or legislative changes to be enacted or debated in the current parliament that pose a material risk to NTG's business model. NTG has already mitigated any future impact relating to the cost or availability of labour by: (1) further improvements to route optimisation; and (2) taking running costs and the “Real Living Wage” (as published annually by the Living Wage Foundation) into account when setting Contracted Service Provider drop rates.
• 
Financial Risk: The company manages its exposure to interest rate and liquidity risks through regular forecasting and cash management.
The directors are satisfied that the company’s risk management processes are appropriate for its size and complexity.

Financial key performance indicators
 
The directors use a range of financial KPIs to monitor and assess the company’s performance:
KPI                               2024           2023                       Commentary
Turnover                  £67.7m £58.7m  15% growth, driven by home delivery
Gross profit margin          
 20.17% 15.03%  Margin improvement through operational efficiencies
Operating profit          £4.25m £1.10m 
Net assets/(liabilities) £413k          (£2.57m)        Return to positive net assets

Other key performance indicators
 
In addition to the key financial indicators, we monitor on a daily basis key customer service and operating performance indicators. These indicators measure our re-delivery rates and conduct a root cause analysis of all communications with our contact centre.

Page 2

 
NEWSTEAM GROUP LTD
 

STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 28 DECEMBER 2024

Directors' statement of compliance with duty to promote the success of the Company
 
The directors have had regard to the matters set out in section 172(1) of the Companies Act 2006 when performing their duties. The Company’s key stakeholders include employees, customers, suppliers, and the wider community. The directors consider the likely consequences of decisions for these groups and for the long-term success of the Company.

Going concern
The company generated a profit before tax of £4.13m and closed the year with net assets of £413k. The directors have reviewed trading and cash flow forecasts for at least 12 months from the date of approval of these accounts and are satisfied that the Company will have sufficient resources to meet its liabilities as they fall due. Accordingly, the financial statements have been prepared on a going concern basis.


This report was approved by the board and signed on its behalf.



................................................
Jonathan Robert Kennett
Director
Date: 19 May 2025

Page 3

 
NEWSTEAM GROUP LTD
 
 
 
DIRECTORS' REPORT
FOR THE PERIOD ENDED 28 DECEMBER 2024

The directors present their report and the financial statements for the period ended 28 December 2024.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

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

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

Results and dividends

The profit for the period, after taxation, amounted to £2,987,493 (2023 - £1,995,200).

No dividend declared or paid during the year.

Directors

The directors who served during the period were:

Jonathan Robert Kennett 
Neil Hilton Jagger 
Simon Wakeham 
Paul Christian Goddard (resigned 31 December 2023)

Information contained in the Strategic Report

As permitted by section 414C of the Companies Act 2006, certain information required to be included in the Directors’ Report has been included in the Strategic Report. Specifically, this relates to future developments.

Page 4

 
NEWSTEAM GROUP LTD
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 28 DECEMBER 2024

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditorsPure Audit Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





................................................
Jonathan Robert Kennett
Director

Date: 19 May 2025

Page 5

 
NEWSTEAM GROUP LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NEWSTEAM GROUP LTD
 

Opinion


We have audited the financial statements of Newsteam Group Ltd (the 'Company') for the period ended 28 December 2024, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 28 December 2024 and of its profit for the period then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


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


Conclusions relating to going concern


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


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


Page 6

 
NEWSTEAM GROUP LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NEWSTEAM GROUP LTD (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Strategic Report and the Directors' Report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

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


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


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 7

 
NEWSTEAM GROUP LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NEWSTEAM GROUP LTD (CONTINUED)


Auditors' 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 Auditors' 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:
Extent to which the audit was considered capable of detecting irregularities, including fraud
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
Identifying and assessing potential risks related to irregularities
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
• The nature of the industry and sector, control environment and business performance including the design of the Company’s remuneration policies, key drivers for directors’ remuneration, bonus levels and performance targets;
• results of our enquiries of management about their own identification and assessment of the risks of irregularities and any matters we identified having reviewed the Company’s policies and procedures;
• the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in relation to revenue recognition. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory frameworks that the Company operates in and focused on those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the Companies Act 2006 and local tax legislation.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Company’s ability to operate or to avoid a material fine or penalty. 
Audit response to risks identified
As a result of performing the above, we identified revenue recognition as a key audit matter related to the potential risk of fraud. Our procedures to respond to risks identified included the following:
• reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
• enquiring of management, concerning actual and potential litigation and claims;
 
Page 8

 
NEWSTEAM GROUP LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NEWSTEAM GROUP LTD (CONTINUED)


• performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
• reading minutes of meetings of those charged with governance;
• obtaining an understanding of provisions and discussing with management to understand the basis of recognition or non-recognition of tax provisions; and
• in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or noncompliance with laws and regulations throughout the audit.


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.


Other matters 
 

The financial statements for the period ended 30 December 2023 were audited by Price Bailey LLP, who expressed an unmodified opinion on those financial statements on 22 May 2024.


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 2006Our 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 Auditors' 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.





R M Asif Rafique (Senior Statutory Auditor)
  
for and on behalf of
Pure Audit Limited
 
Chartered Certified Accountants & Statutory Auditors
  
76 Canterbury Innovation Centre
University Road
Canterbury
Kent
CT2 7FG

19 May 2025
Page 9

 
NEWSTEAM GROUP LTD
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 28 DECEMBER 2024

28 December
As restated
30 December
2024
2023
Note
£
£

  

Turnover
 4 
67,743,142
58,731,250

Cost of sales
  
(54,078,805)
(49,901,494)

Gross profit
  
13,664,337
8,829,756

Administrative expenses
  
(9,411,691)
(7,729,717)

Operating profit
 5 
4,252,646
1,100,039

Interest receivable and similar income
 9 
9,535
3,829

Interest payable and similar expenses
 10 
(129,728)
(10,683)

Profit before tax
  
4,132,453
1,093,185

Tax on profit
 11 
(1,144,960)
902,015

Profit for the financial period
  
2,987,493
1,995,200

There were no recognised gains and losses for 2024 or 2023 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 18 to 38 form part of these financial statements.

Page 10

 
NEWSTEAM GROUP LTD
REGISTERED NUMBER: 09340207

STATEMENT OF FINANCIAL POSITION
AS AT 28 DECEMBER 2024

28 December
30 December
2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 12 
2,107,840
1,245,042

Tangible assets
 13 
65,848
36,514

  
2,173,688
1,281,556

Current assets
  

Stocks
 14 
37,962
-

Debtors: amounts falling due within one year
 15 
8,158,237
7,751,340

Cash at bank and in hand
 16 
577,055
860,842

  
8,773,254
8,612,182

Creditors: amounts falling due within one year
 17 
(10,522,854)
(10,360,536)

Net current liabilities
  
 
 
(1,749,600)
 
 
(1,748,354)

Total assets less current liabilities
  
424,088
(466,798)

Creditors: amounts falling due after more than one year
 18 
-
(2,107,404)

Provisions for liabilities
  

Deferred tax
 21 
(10,797)
-

  
 
 
(10,797)
 
 
-

Net assets/(liabilities)
  
413,291
(2,574,202)


Capital and reserves
  

Called up share capital 
 22 
10,099
10,099

Share premium account
 23 
490,000
490,000

Capital redemption reserve
 23 
1
1

Profit and loss account
 23 
(86,809)
(3,074,302)

  
413,291
(2,574,202)


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




................................................
Jonathan Robert Kennett
Page 11

 
NEWSTEAM GROUP LTD
REGISTERED NUMBER: 09340207
    
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 28 DECEMBER 2024

Director

Date: 19 May 2025

The notes on pages 18 to 38 form part of these financial statements.

Page 12

 
NEWSTEAM GROUP LTD
 

STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 28 DECEMBER 2024


Called up share capital
Share premium account
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£
£

At 31 December 2023
10,099
490,000
1
(3,074,302)
(2,574,202)


Comprehensive income for the period

Profit for the period

-
-
-
2,987,493
2,987,493


Other comprehensive income for the period
-
-
-
-
-


Total comprehensive income for the period
-
-
-
2,987,493
2,987,493


Total transactions with owners
-
-
-
-
-


At 28 December 2024
10,099
490,000
1
(86,809)
413,291


The notes on pages 18 to 38 form part of these financial statements.

Page 13

 
NEWSTEAM GROUP LTD
 

STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 DECEMBER 2023


Called up share capital
Share premium account
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£
£

At 1 December 2022
10,100
490,000
-
(5,069,502)
(4,569,402)


Comprehensive income for the year

Profit for the year

-
-
-
1,995,200
1,995,200


Other comprehensive income for the year
-
-
-
-
-


Total comprehensive income for the year
-
-
-
1,995,200
1,995,200

Transfer to capital redemption reserve
-
-
1
-
1

Transfer to capital redemption reserve
(1)
-
-
-
(1)


Total transactions with owners
(1)
-
1
-
-


At 30 December 2023
10,099
490,000
1
(3,074,302)
(2,574,202)


The notes on pages 18 to 38 form part of these financial statements.

Page 14

 
NEWSTEAM GROUP LTD
 

STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 28 DECEMBER 2024

28 December
30 December
2024
2023
£
£

Cash flows from operating activities

Profit for the financial period
2,987,493
1,995,200

Adjustments for:

Amortisation of intangible assets
494,640
266,678

Depreciation of tangible assets
25,117
14,671

Interest paid
129,728
10,683

Interest received
(9,535)
(3,829)

Taxation charge
1,144,960
(902,015)

(Increase)/decrease in stocks
(37,962)
1,344

Decrease/(increase) in debtors
782,185
(476,125)

(Increase) in amounts owed by groups
(2,011,537)
(286,696)

(Increase)/decrease in amounts owed by associates
(3,421)
-

Increase in creditors
780,321
895,410

Increase in amounts owed to groups
132,972
-

Corporation tax received
-
33,444

Net cash generated from operating activities

4,414,961
1,548,765


Cash flows from investing activities

Purchase of intangible fixed assets
(1,357,438)
(825,623)

Purchase of tangible fixed assets
(54,450)
(14,640)

Interest received
9,535
3,829

Net cash from investing activities

(1,402,353)
(836,434)

Cash flows from financing activities

Repayment of bank loans
(24,167)
(10,000)

Repayment of other loans
(3,142,500)
-

Interest paid
(129,728)
(10,683)

Net cash used in financing activities
(3,296,395)
(20,683)

Net (decrease)/increase in cash and cash equivalents
(283,787)
691,648

Cash and cash equivalents at beginning of period
860,842
169,194

Cash and cash equivalents at the end of period
577,055
860,842


Cash and cash equivalents at the end of period comprise:
Page 15

 
NEWSTEAM GROUP LTD
 

STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE PERIOD ENDED 28 DECEMBER 2024

28 December
30 December

2024
2023

£
£


Cash at bank and in hand
577,055
860,842

577,055
860,842


The notes on pages 18 to 38 form part of these financial statements.

Page 16

 
NEWSTEAM GROUP LTD
 

ANALYSIS OF NET DEBT
FOR THE PERIOD ENDED 28 DECEMBER 2024




At 31 December 2023
Cash flows
At 28 December 2024
£

£

£

Cash at bank and in hand

860,842

(283,787)

577,055

Debt due after 1 year

(2,107,404)

2,107,404

-

Debt due within 1 year

(1,409,263)

1,059,263

(350,000)


(2,655,825)
2,882,880
227,055

The notes on pages 18 to 38 form part of these financial statements.

Page 17

 
NEWSTEAM GROUP LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 DECEMBER 2024

1.


General information

The Company is a private company limited by shares, incorporated in England and Wales.
The address of the registered office is: Cauldon Locks, Shelton New Road, Stoke-On-Trent, England, ST4 7AA.
The Company’s registration number is 09340207.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Going concern

The Company has generated a profit before tax of £4,132,453 during the year. At the year end, the Company had a net assets position of £413,291 (2023: net liabilities of £2,574,202).
The Directors have considered the trading and cash flow forecasts for a period of at least 12 months from the date of approval of the financial statements and are satisfied that the Company will have sufficient resources to meet its liabilities as they fall due. The Company is expected to remain profitable in the next accounting period.
For these reasons, the Directors do not consider that there is a material uncertainty related to going concern and have prepared the financial statements on a going concern basis.

Page 18

 
NEWSTEAM GROUP LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 DECEMBER 2024

2.Accounting policies (continued)

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.4

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.5

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.6

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Page 19

 
NEWSTEAM GROUP LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 DECEMBER 2024

2.Accounting policies (continued)

 
2.7

Borrowing costs

All borrowing costs are recognised in profit or loss in the period in which they are incurred.

 
2.8

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

 
2.9

Current and deferred taxation

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

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

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.


Page 20

 
NEWSTEAM GROUP LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 DECEMBER 2024

2.Accounting policies (continued)

 
2.10

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Statement of Comprehensive Income over its useful economic life.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 The estimated useful lives range as follows:

Goodwill
-
5
years

 
2.11

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, .

Depreciation is provided on the following basis:

Long-term leasehold property
-
Over lease term
Plant and machinery
-
20%
Straight line
Motor vehicles
-
50%
Fixtures and fittings
-
25%
25% on reducing balance basis and 3 year straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Page 21

 
NEWSTEAM GROUP LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 DECEMBER 2024

2.Accounting policies (continued)

 
2.12

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.13

Debtors

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

 
2.14

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.15

Creditors

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

 
2.16

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.17

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Company's Statement of Financial Position when the Company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with 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.
Page 22

 
NEWSTEAM GROUP LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 DECEMBER 2024

2.Accounting policies (continued)


2.17
Financial instruments (continued)


Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Basic 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 Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

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

Page 23

 
NEWSTEAM GROUP LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 DECEMBER 2024

2.Accounting policies (continued)

  
2.18

Reclassification of comparative figures

During the year, the company reviewed the classification of certain expenses in the prior year. As a result, IT costs totalling £293,224 were reclassified from cost of sales (previously included as direct costs) to administrative expenses. This reclassification has been made to better reflect the nature of the costs and ensure consistency with the current year’s presentation.
This change has no impact on the reported operating profit or net assets.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In order to properly apply the Company’s accounting policies, as described in note 2 above, the Directors are required to make judgements and estimates in respect of carrying values of assets and liabilities which may not be apparent from other sources of information. The Directors base these critical accounting judgements and estimations on previous historical experience and other factors which the directors judge to be relevant. Judgements and estimates will invariably differ from actual results and hence such judgements and estimates are reviewed by the directors on an ongoing basis.
Critical accounting judgements
The Directors do not consider that there are any critical accounting judgements in these accounts.
Key sources of estimation uncertainty
Goodwill amortisation
Goodwill on customer round acquisitions is being amortised over a five year period. The Directors review this annually and still consider that it is reasonable.
Doubtful debt provision
The Company makes allowance for doubtful debts based on an assessment of the recoverability of receivables. Allowances are applied to receivables where events or changes in circumstances indicate that the carrying amounts may not be recoverable. Management specifically analysed historical bad debts, customer creditworthiness, current economic trends and changes in customer payment terms when making a judgement to evaluate the adequacy of the allowance of doubtful debts of receivables. Where the expectation is different from the original estimate, such difference will impact the carrying value of receivables.

Page 24

 
NEWSTEAM GROUP LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 DECEMBER 2024

4.


Turnover

An analysis of turnover by class of business is as follows:


28 December
30 December
2024
2023
£
£

Home delivery services
56,767,882
47,014,837

Retail and national contracts
10,975,260
11,716,413

67,743,142
58,731,250


Analysis of turnover by country of destination:

28 December
30 December
2024
2023
£
£

United Kingdom
67,743,142
58,731,250

67,743,142
58,731,250



5.


Operating profit

The operating profit is stated after charging:

28 December
30 December
2024
2023
£
£

Other operating lease rentals
11,221
12,346

Page 25

 
NEWSTEAM GROUP LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 DECEMBER 2024

6.


Auditors' remuneration

During the period, the Company obtained the following services from the Company's auditors:


28 December
30 December
2024
2023
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
25,995
22,000


7.


Employees

Staff costs, including directors' remuneration, were as follows:


28 December
30 December
2024
2023
£
£

Wages and salaries
5,836,728
5,723,868

Social security costs
532,176
364,585

Cost of defined contribution scheme
96,381
87,337

6,465,285
6,175,790


The senior management team and executive directors are considered to be key management personnel. Total remuneration in respect of these individuals is £301,888 (2023: £308,205).

The average monthly number of employees, including the directors, during the period was as follows:


     28 December
      30 December
        2024
        2023
            No.
            No.







Administration and management
214
262

Page 26

 
NEWSTEAM GROUP LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 DECEMBER 2024

8.


Directors' remuneration

28 December
30 December
2024
2023
£
£

Directors' emoluments
214,738
271,256

Company contributions to defined contribution pension schemes
1,321
2,862

216,059
274,118


During the period retirement benefits were accruing to 2 directors (2023 - 3) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £118,185 (2023 - £115,000).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £1,321 (2023 - £1,321).


9.


Interest receivable

28 December
30 December
2024
2023
£
£


Other interest receivable
9,535
3,829

9,535
3,829


10.


Interest payable and similar expenses

28 December
30 December
2024
2023
£
£


Loan interest payable
129,728
344

Other interest payable
-
10,339

129,728
10,683

Page 27

 
NEWSTEAM GROUP LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 DECEMBER 2024

11.


Taxation


28 December
30 December
2024
2023
£
£

Corporation tax


Current tax on profits for the year
308,288
(76,140)


308,288
(76,140)


Total current tax
308,288
(76,140)

Deferred tax


Origination and reversal of timing differences
836,672
(825,875)

Total deferred tax
836,672
(825,875)


1,144,960
(902,015)
Page 28

 
NEWSTEAM GROUP LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 DECEMBER 2024
 
11.Taxation (continued)


Factors affecting tax charge for the period/year

The tax assessed for the period/year is lower than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 23.5%). The differences are explained below:

28 December
30 December
2024
2023
£
£


Profit on ordinary activities before tax
4,132,453
1,093,185


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 23.5%)
1,033,113
256,898

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
3,467
1,261

Capital allowances for period/year in excess of depreciation
122,103
61,461

Utilisation of tax losses
(850,395)
(319,620)

Short-term timing difference leading to an increase (decrease) in taxation
836,672
(825,875)

Adjustment in research and development tax credit leading to an increase (decrease) in the tax charge
-
(76,140)

Total tax charge for the period/year
1,144,960
(902,015)


Factors that may affect future tax charges

The Company has estimated losses of £Nil (2023: £3,303,498) available to carry forward against future trading profits.

Page 29

 
NEWSTEAM GROUP LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 DECEMBER 2024

12.


Intangible assets






Goodwill

£



Cost


At 31 December 2023
1,961,118


Additions
1,357,438



At 28 December 2024

3,318,556



Amortisation


At 31 December 2023
716,076


Charge for the period on owned assets
494,640



At 28 December 2024

1,210,716



Net book value



At 28 December 2024
2,107,840



At 30 December 2023
1,245,042



Page 30

 
NEWSTEAM GROUP LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 DECEMBER 2024

13.


Tangible fixed assets







Long-term leasehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£
£



Cost or valuation


At 31 December 2023
-
31,626
-
43,229
74,855


Additions
24,001
325
7,000
23,124
54,450



At 28 December 2024

24,001
31,951
7,000
66,353
129,305



Depreciation


At 31 December 2023
-
17,759
-
20,582
38,341


Charge for the period on owned assets
2,220
6,358
2,333
14,205
25,116



At 28 December 2024

2,220
24,117
2,333
34,787
63,457



Net book value



At 28 December 2024
21,781
7,834
4,667
31,566
65,848



At 30 December 2023
-
13,867
-
22,647
36,514




The net book value of land and buildings may be further analysed as follows:


28 December
30 December
2024
2023
£
£

Long leasehold
21,781
-

21,781
-


Page 31

 
NEWSTEAM GROUP LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 DECEMBER 2024

14.


Stocks

28 December
30 December
2024
2023
£
£

Finished goods and goods for resale
37,962
-

37,962
-



15.


Debtors

28 December
30 December
2024
2023
£
£


Trade debtors
4,227,480
5,024,903

Amounts owed by group undertakings
2,298,233
286,696

Amounts owed by joint ventures and associated undertakings
3,421
-

Other debtors
1,070,474
1,189,906

Called up share capital not paid
99
99

Prepayments and accrued income
558,530
423,861

Deferred taxation
-
825,875

8,158,237
7,751,340



16.


Cash and cash equivalents

28 December
30 December
2024
2023
£
£

Cash at bank and in hand
577,055
860,842

577,055
860,842


Page 32

 
NEWSTEAM GROUP LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 DECEMBER 2024

17.


Creditors: Amounts falling due within one year

28 December
As restated
30 December
2024
2023
£
£

Bank loans
-
10,000

Other loans
350,000
1,399,263

Trade creditors
5,814,000
5,155,859

Amounts owed to group undertakings
132,972
-

Corporation tax
308,288
-

Other taxation and social security
145,334
147,576

Other creditors
582,074
497,635

Accruals and deferred income
3,190,186
3,150,203

10,522,854
10,360,536


Accruals and deferred income include a balance of £2,055,754 (2023: £1,795,906). In the prior year, this balance was presented within trade creditors. Following a review of the nature of the liability, management has reclassified the amount to deferred income to more appropriately reflect its substance in line with the requirements of FRS 102. This reclassification has no impact on the profit and loss for the current or prior year.


18.


Creditors: Amounts falling due after more than one year

28 December
30 December
2024
2023
£
£

Bank loans
-
14,167

Other loans
-
2,093,237

-
2,107,404


Page 33

 
NEWSTEAM GROUP LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 DECEMBER 2024

19.


Loans


Analysis of the maturity of loans is given below:


28 December
30 December
2024
2023
£
£

Amounts falling due within one year

Bank loans
-
10,000

Other loans
350,000
1,399,263


350,000
1,409,263

Amounts falling due 1-2 years

Bank loans
-
14,167

Other loans
-
2,093,237


-
2,107,404



350,000
3,516,667


Page 34

 
NEWSTEAM GROUP LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 DECEMBER 2024

20.


Financial instruments

28 December
30 December
2024
2023
£
£

Financial assets


Financial assets measured at amortised cost
8,176,081
7,362,347


Financial liabilities


Other financial liabilities measured at amortised cost
(10,069,232)
(12,320,364)


Financial assets measured at amortised cost comprise of cash at bank and in hand, trade debtors, amounts owed by group undertakings and other debtors.


Financial liabilities measured at amortised cost comprise of trade creditors, other creditors, payments on account, accruals and deferred income, bank loans and other loans.

Page 35

 
NEWSTEAM GROUP LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 DECEMBER 2024

21.


Deferred taxation






2024


£






At beginning of year
825,875


Charged to profit or loss
(836,672)



At end of year
(10,797)

The deferred taxation balance is made up as follows:

28 December
30 December
2024
2023
£
£


Accelerated capital allowances
(10,797)
-

Tax losses carried forward
-
825,875

(10,797)
825,875


22.


Share capital

28 December
30 December
2024
2023
£
£
Allotted, called up and fully paid



1,009,900 (2023 - 1,009,900) Ordinary shares of £0.01 each
10,099
10,099


Page 36

 
NEWSTEAM GROUP LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 DECEMBER 2024

23.


Reserves

Share premium account

The share premium account represents any premiums received on issue of share capital.

Capital redemption reserve

Represents the nominal value of shares repurchased and cancelled by the Company.

Profit and loss account

The profit and loss account represents the cumulative profits and losses of the Company, net of any dividends or other adjustments.


24.


Pension commitments

The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Company in an administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £97,592 (2023: £87,337). Contributions totalling £44,012 (2023: £48,952) were payable to the fund at the balance sheet date and are included in other creditors.


25.


Commitments under operating leases

At 28 December 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

28 December
30 December
2024
2023
£
£


Not later than 1 year
15,840
3,600

Later than 1 year and not later than 5 years
19,800
-

35,640
3,600

Page 37

 
NEWSTEAM GROUP LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 DECEMBER 2024

26.


Related party transactions

During the year the Company traded with Paperround HND Service Limited, a subsidiary of the Company’s parent undertaking, Suonal Ltd. Purchases from Paperround HND Service Limited totalled £630,770 (2023: £531,606). At the balance sheet date the balance outstanding from the Company was £512 (2023: £29,638).
During the year the Company traded with HSE Advisor Limited, a subsidiary of the Company’s parent undertaking, Suonal Ltd. Purchases from HSE Advisor Limited totalled £47,578 (2023: £113,827). At the balance sheet date the balance outstanding from the Company was £Nil (2023: £9,240).
During the year the Company traded with Global Vehicles Direct Ltd, a company in which the director P Goddard is also a director. Purchases from Global Vehicles Direct Ltd totalled £504,241 (2023: £574,064). At the balance sheet date the balance outstanding from the Company was £50,176 (2023: £45,133).
During the year the Company operated a loan account with Kinton Technology Ltd, a company in which M Kinton is a director. The interest charged is 4% above the Bank of England base rate per annum. The loan was repayable until 22 March 2026 but was fully repaid in 2024. At the balance sheet date the balance owed by the Company was £Nil (2023: £3,142,500).
During the year, the Company acquired a subsidiary, Suffolk News Delivery Limited. At the reporting date, an amount of £132,972 was payable by the Company to the subsidiary. This balance is unsecured, interest-free, and repayable on demand.
During the year the Company traded with its parent company, Suonal Ltd. Suonal Ltd charged management fees of £1,619,478. At the balance sheet date the balance owed to the Company was £2,298,233 (2023: £286,696).


27.


Controlling party

The parent company is Suonal Ltd, a company incorporated in Cyprus.
Copies of the group financial statements of Suonal Ltd may be obtained from 3rd floor Onisiforou Centre, Neof. Nikolaides Avenue & Th. Kolokotroni Street, Paphos, 8011, Cyprus.
There is no controlling party as no individual shareholder has a majority shareholding in Suonal Ltd.

 
Page 38