Company registration number 12922711 (England and Wales)
CWC GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
CWC GROUP LIMITED
COMPANY INFORMATION
Directors
Mr N P Smith
Mr D R Sweet
Mr P R Ridout
Mrs J Hutchings
Company number
12922711
Registered office
Sanderson House
Station Road
Horsforth
Leeds
LS18 5NT
Auditor
Buckle Barton
Sanderson House
Station Road
Horsforth
Leeds
LS18 5NT
CWC GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 33
CWC GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

The directors present the strategic report for the year ended 31 December 2024.

Review of the business

 

The year ended 31st December 2024 proved a difficult year for the group, with sales turnover significantly down and a reduction in service and parts revenue.

Our senior management was faced with transactional opportunities to consolidate ownership within the MB network. The costs associated with this, and the impact on performance of a diverted focus, are reflected in our reported numbers.

 

 

KPI's

 

 

2024

2023

Change

Turnover

£35.6m

£46.5m

-£10.9m

Gross Profit

£5.9m

£6.9m

-£1.0m

GP%

16.6%

14.9%

 

 

 

 

 

Profit/(loss) before tax

£ (365) k

£337k

702k

EBITDA

£630k

£1.2m

-£570k

 

 

 

 

 

From a sales perspective, following three years of market growth post Covid19, the industry overall sales market fell 2.7%. This was disproportionally attributed to a poor tractor unit performance, something which effected Mercedes-Benz in particular, who, we understand, saw an overall year on year decline in volume of 10.8%.

 

Our aftersales performance was limited to a large degree by a lack of technical resource, and this was necessarily reflected in associated parts sales.

Looking forward we remain, as do many of our customers, confident that the Daimler product provides industry leading economy and reliability. With 2025 we expect to see Q3/4 resurgence in sales and our focus will be on technical resource levels within the business.

 

Principal risks and uncertainties

At the time of writing, we believe that the geo political outlook is showing signs of increased stability, although actions taken in the US to address their balance of payments will likely lead to supply chain disruption and cost impact in the medium term.

We expect monetary easing and a lowering of energy costs to lead to a gentle economic recovery during the course of 2025. This view is supported by increased clearing bank activity, something that we will monitor as part of our general awareness.

 

Development and performance

We are reassured that our partner Daimler AG has the resource to react to and in part, lead the way in the changing technological world of transportation and logistics. We are similarly reassured by the engagement and support of our bankers Barclays and the depth of knowledge within the business.

CWC GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -

On behalf of the board

Mrs J Hutchings
Director
21 May 2025
CWC GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -

The directors present their annual report and financial statements for the year ended 31 December 2024.

Principal activities

The principal activity of the company was a holding company and its subsidiaries was that of a Mercedes Benz truck sales dealer and Mercedes Benz truck and van after sales dealer.

Results and dividends

The results for the year are set out on page 8.

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

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr N P Smith
Mr D R Sweet
Mr P R Ridout
Mrs J Hutchings
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mrs J Hutchings
Director
21 May 2025
CWC GROUP LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -

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.

CWC GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CWC GROUP LIMITED
- 5 -
Opinion

We have audited the financial statements of CWC Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

 

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

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

CWC GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CWC GROUP LIMITED
- 6 -
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.

Our procedures to help detect irregularities, including fraud, are detailed below.

- Enquiry of management and those charged with governance around actual and potential litigation and claims.

- Enquiry of entity staff in accounts and compliance functions to identify any instances of non-compliance with laws and regulations.

- Reviewing minutes of meetings of those charged with governance.

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.

 

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.

CWC GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CWC GROUP LIMITED
- 7 -
Mark Dalton BA (Hons) FCA (Senior Statutory Auditor)
For and on behalf of Buckle Barton
21 May 2025
Chartered Accountants
Statutory Auditor
Sanderson House
Station Road
Horsforth
Leeds
LS18 5NT
CWC GROUP LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
35,606,526
46,518,634
Cost of sales
(29,624,238)
(39,575,286)
Gross profit
5,982,288
6,943,348
Administrative expenses
(5,693,937)
(5,978,910)
Other operating income
1,871
19,057
Operating profit
4
290,222
983,495
Interest payable and similar expenses
8
(655,359)
(645,824)
(Loss)/profit before taxation
(365,137)
337,671
Tax on (loss)/profit
9
(185)
(164,026)
(Loss)/profit for the financial year
(365,322)
173,645
(Loss)/profit for the financial year is attributable to:
- Owners of the parent company
(318,362)
256,453
- Non-controlling interests
(46,960)
(82,808)
(365,322)
173,645
CWC GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
2024
2023
£
£
(Loss)/profit for the year
(365,322)
173,645
Other comprehensive income
-
-
Cash flow hedges gain arising in the year
-
0
-
0
Total comprehensive income for the year
(365,322)
173,645
Total comprehensive income for the year is attributable to:
- Owners of the parent company
(318,362)
256,453
- Non-controlling interests
(46,960)
(82,808)
(365,322)
173,645
CWC GROUP LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Negative goodwill
10
(155,013)
(310,026)
Total intangible assets
(155,013)
(310,026)
Tangible assets
11
4,137,712
4,525,497
Current assets
Stocks
14
4,653,672
15,490,854
Debtors
15
2,014,660
4,316,184
Cash at bank and in hand
1,710,747
2,892,709
8,379,079
22,699,747
Creditors: amounts falling due within one year
16
(8,600,750)
(22,705,811)
Net current liabilities
(221,671)
(6,064)
Total assets less current liabilities
3,761,028
4,209,407
Creditors: amounts falling due after more than one year
17
(2,741,224)
(2,832,281)
Provisions for liabilities
Deferred tax liability
20
98,000
90,000
(98,000)
(90,000)
Net assets
921,804
1,287,126
Capital and reserves
Called up share capital
22
1,000
1,000
Profit and loss reserves
1,056,041
1,374,403
Equity attributable to owners of the parent company
1,057,041
1,375,403
Non-controlling interests
(135,237)
(88,277)
Total equity
921,804
1,287,126

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 21 May 2025 and are signed on its behalf by:
21 May 2025
Mrs J Hutchings
Director
Company registration number 12922711 (England and Wales)
CWC GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2024
31 December 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
12
50,100
50,100
50,100
50,100
Current assets
Debtors
15
1,000
1,000
Creditors: amounts falling due within one year
16
(64,232)
(60,511)
Net current liabilities
(63,232)
(59,511)
Net liabilities
(13,132)
(9,411)
Capital and reserves
Called up share capital
22
1,000
1,000
Profit and loss reserves
(14,132)
(10,411)
Total equity
(13,132)
(9,411)

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £3,721 (2023 - £3,614 loss).

The financial statements were approved by the board of directors and authorised for issue on 21 May 2025 and are signed on its behalf by:
21 May 2025
Mrs J Hutchings
Director
Company registration number 12922711 (England and Wales)
CWC GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
Share capital
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
£
£
£
£
£
Balance at 1 January 2023
1,000
1,117,950
1,118,950
(5,469)
1,113,481
Year ended 31 December 2023:
Profit and total comprehensive income
-
256,453
256,453
(82,808)
173,645
Balance at 31 December 2023
1,000
1,374,403
1,375,403
(88,277)
1,287,126
Year ended 31 December 2024:
Loss and total comprehensive income
-
(318,362)
(318,362)
(46,960)
(365,322)
Balance at 31 December 2024
1,000
1,056,041
1,057,041
(135,237)
921,804
CWC GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 13 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2023
1,000
(6,798)
(5,798)
Year ended 31 December 2023
Loss and total comprehensive income for the year
-
(3,613)
(3,613)
Balance at 31 December 2023
1,000
(10,411)
(9,411)
Year ended 31 December 2024:
Loss and total comprehensive income for the year
-
(3,721)
(3,721)
Balance at 31 December 2024
1,000
(14,132)
(13,132)
CWC GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
26
(173,569)
2,753,687
Interest paid
(652,138)
(642,711)
Income taxes paid
(104,196)
-
0
Net cash (outflow)/inflow from operating activities
(929,903)
2,110,976
Investing activities
Purchase of tangible fixed assets
(128,227)
(3,051,863)
Proceeds on disposal of tangible fixed assets
28,699
55,269
Net cash used in investing activities
(99,528)
(2,996,594)
Financing activities
New loans / (repayment of borrowings)
(114,214)
2,111,640
Net movement of finance leases obligations
(38,317)
(68,331)
Net cash (used in)/generated from financing activities
(152,531)
2,043,309
Net (decrease)/increase in cash and cash equivalents
(1,181,962)
1,157,691
Cash and cash equivalents at beginning of year
2,892,709
1,735,018
Cash and cash equivalents at end of year
1,710,747
2,892,709
CWC GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 15 -
1
Accounting policies
Company information

CWC Group Limited (“the company”) is a private limited company domiciled and incorporated in the United Kingdom and registered in England and Wales. The registered office is Sanderson House, Station Road, Horsforth, Leeds, LS18 5NT.

 

The group consists of CWC Group Limited and all of its subsidiaries.

1.1
Accounting convention

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

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

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

1.2
Business combinations

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

 

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

1.3
Basis of consolidation

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

 

All financial statements are made up to 31 December 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.

CWC GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -

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

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

 

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

 

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

1.4
Going concern

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

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods 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.

Sales of motor vehicles and accessories are recognised upon delivery to the customer together with the associated manufacturer bonus income. Any other manufacturer income in relation to achieving sales targets is recognised on an accruals basis.

 

Servicing income is recognised upon completion of the work agreed.

 

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 years.

 

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

1.7
Tangible fixed assets

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

CWC GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 17 -

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

Freehold land and buildings
buildings are depreciated over 50 years
Leasehold land and buildings
over term of the lease
Plant and equipment
10-25% straight line
Fixtures and fittings
10-33% straight line
Computers
20-50% straight line
Motor vehicles
10-25% 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, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

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

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

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

CWC GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 18 -
1.9
Impairment of fixed assets

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

 

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

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

 

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

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

1.10
Stocks

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

 

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
Cash and cash equivalents

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

CWC GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 19 -
1.12
Financial instruments

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

 

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

 

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

Basic financial assets

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

Other financial assets

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

Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

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

Classification of financial liabilities

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

CWC GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 20 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

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

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

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

1.13
Equity instruments

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

1.14
Taxation

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

Current tax

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

CWC GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 21 -
Deferred tax

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

 

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

1.15
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.16
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.17
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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

1.18
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.

CWC GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
2
Judgements and key sources of estimation uncertainty

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

 

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

Critical judgements

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

Consignment stock

Vehicles held on consignment have been included within stocks on the basis that the group has determined that it holds the significant risks and rewards attached to these vehicles.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Stock valuation

The valuation of stock is monitored against age profile and market demand. The directors maintain oversight over the aged stock profile and a monthly review for any impairment is performed.

Useful economic life of tangible fixed assets

The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic life and residual value of the assets, both of which are reassessed annually by the directors. They are amended, when necessary, to reflect current estimates based on technological changes, economic utilisation and the physical condition of the assets.

Amortisation period of negative goodwill

Accounting standards require the group to recognise the excess value of assets acquired on consolidation (i.e. the excess of net assets acquired over consideration paid for the investment) up to the fair value of non-monetary assets acquired in the profit or loss in the periods in which the non-monetary assets are recovered. Any excess exceeding the fair value of non-monetary assets acquired shall be recognised in profit or loss in the periods expected to be benefited, both of which require a degree of estimation and judgement.

3
Turnover
2024
2023
£
£
Turnover analysed by class of business
Sales of vehicles and parts
30,996,401
41,671,339
Servicing and repair sales
4,610,125
4,847,295
35,606,526
46,518,634
CWC GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
3
Turnover
(Continued)
- 23 -
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
35,606,526
46,518,634
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
483,326
456,848
Depreciation of tangible fixed assets held under finance leases
12,000
-
Profit on disposal of tangible fixed assets
(8,013)
(40,221)
Amortisation of intangible assets
(155,013)
(155,013)
Operating lease charges
367,363
435,571
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
500
2,000
Audit of the financial statements of the company's subsidiaries
28,500
28,500
29,000
30,500
6
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Administration
35
39
-
-
Other
49
56
-
-
Total
84
95
-
0
-
0
CWC GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
6
Employees
(Continued)
- 24 -

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
3,511,814
3,887,156
-
0
-
0
Social security costs
396,084
432,352
-
-
Pension costs
63,966
71,941
-
0
-
0
3,971,864
4,391,449
-
0
-
0
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
249,452
255,449
Company pension contributions to defined contribution schemes
3,962
3,962
253,414
259,411
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
108,279
110,152
Company pension contributions to defined contribution schemes
1,321
1,321
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Other interest on financial liabilities
160,994
96,886
Other finance costs:
Interest on finance leases and hire purchase contracts
25,108
27,582
Other interest
469,257
521,356
Total finance costs
655,359
645,824
CWC GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 25 -
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
-
0
97,000
Adjustments in respect of prior periods
(7,815)
7,196
Total current tax
(7,815)
104,196
Deferred tax
Origination and reversal of timing differences
8,000
59,830
Total tax charge
185
164,026

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

2024
2023
£
£
(Loss)/profit before taxation
(365,137)
337,671
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
(91,284)
84,418
Tax effect of expenses that are not deductible in determining taxable profit
20,869
3,885
Unutilised tax losses carried forward
41,969
49,727
Effect of change in corporation tax rate
-
14,507
Depreciation on assets not qualifying for tax allowances
41,740
27,423
Amortisation on assets not qualifying for tax allowances
(38,753)
(38,753)
Other non-reversing timing differences
35,845
-
0
Under/(over) provided in prior years
(7,815)
7,196
Deferred tax roundings
(2,386)
7,712
Other differences
-
0
7,911
Taxation charge
185
164,026
CWC GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 26 -
10
Intangible fixed assets
Group
Negative goodwill
£
Cost
At 1 January 2024 and 31 December 2024
(775,065)
Amortisation and impairment
At 1 January 2024
(465,039)
Amortisation charged for the year
(155,013)
At 31 December 2024
(620,052)
Carrying amount
At 31 December 2024
(155,013)
At 31 December 2023
(310,026)
The company had no intangible fixed assets at 31 December 2024 or 31 December 2023.

More information on impairment movements in the year is given in note .

CWC GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 27 -
11
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 January 2024
2,709,202
1,610,835
748,326
382,027
197,880
1,672,803
7,321,073
Additions
-
0
22,613
52,318
3,177
7,568
42,551
128,227
Disposals
-
0
(271,988)
(281,742)
(58,549)
(54,576)
(291,761)
(958,616)
At 31 December 2024
2,709,202
1,361,460
518,902
326,655
150,872
1,423,593
6,490,684
Depreciation and impairment
At 1 January 2024
-
0
873,198
455,296
318,595
121,385
1,027,102
2,795,576
Depreciation charged in the year
54,184
114,526
90,454
32,323
30,941
172,898
495,326
Eliminated in respect of disposals
-
0
(130,833)
(237,769)
(86,205)
(53,054)
(430,069)
(937,930)
At 31 December 2024
54,184
856,891
307,981
264,713
99,272
769,931
2,352,972
Carrying amount
At 31 December 2024
2,655,018
504,569
210,921
61,942
51,600
653,662
4,137,712
At 31 December 2023
2,709,202
737,637
293,030
63,432
76,495
645,701
4,525,497
The company had no tangible fixed assets at 31 December 2024 or 31 December 2023.
CWC GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
11
Tangible fixed assets
(Continued)
- 28 -

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
53,000
-
0
-
0
-
0
12
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
50,100
50,100
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2024 and 31 December 2024
50,100
Carrying amount
At 31 December 2024
50,100
At 31 December 2023
50,100
13
Subsidiaries

Details of the company's subsidiaries at 31 December 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
City West Commercials Limited
England & Wales
Ordinary A, B, C & D shares
100.00
-
City West Commercials (Highbridge) Limited
England & Wales
Ordinary shares
0
51.00
CWC Avonmouth Limited
England & Wales
Ordinary
100.00
-
CWC GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 29 -
14
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Work in progress
195,893
632,279
-
-
Finished goods and goods for resale
4,457,779
14,858,575
-
0
-
0
4,653,672
15,490,854
-
-
15
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,214,763
1,349,418
-
0
-
0
Corporation tax recoverable
7,815
-
0
-
0
-
0
Other debtors
6,296
1,566,696
1,000
1,000
Prepayments and accrued income
785,786
1,400,070
-
0
-
0
2,014,660
4,316,184
1,000
1,000
16
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance leases
19
10,999
49,316
-
0
-
0
Other borrowings
18
53,000
76,157
-
0
-
0
Trade creditors
7,116,751
21,580,367
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
7,900
3,100
Corporation tax payable
-
0
104,196
-
0
-
0
Other taxation and social security
343,869
139,321
-
-
Other creditors
894,985
282,852
58,132
54,911
Accruals and deferred income
181,146
473,602
(1,800)
2,500
8,600,750
22,705,811
64,232
60,511
17
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Other borrowings
18
2,741,224
2,832,281
-
0
-
0
CWC GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 30 -
18
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Other loans
2,794,224
2,908,438
-
0
-
0
Payable within one year
53,000
76,157
-
0
-
0
Payable after one year
2,741,224
2,832,281
-
0
-
0

 

Other creditors due within 1 year includes an invoice discounting facility secured upon certain trade debtors. The balance outstanding on the facility at 31 December 2024 was £143,672 (2023:£0).

 

Other borrowings due after 1 year include £500,000 of unsecured perpetual loan notes held by Gilbran (Management) Limited, a company controlled by N P Smith. These loan notes can be repaid on such dates that the company elects but have a final redemption date of 5 March 2089. Included also in creditors is an unsecured loan of £200,000 from Gilbran (Management) Limited which bears interest at 5% per annum and is repayable in 2026 and an unsecured, interest free loan of £50,000 from Gilbran (Management) Limited against with the directors have agreed to net off an amount of £87,989 due from Gilbran (Management) Limited to City West Commercials Limited.

 

Other borrowings due after 1 year includes a loan taken out to purchase the commercial property owned by CWC Avonmouth Limited (a subsidiary company within the group). The loan is secured by fixed and floating charges over CWC Avonmouth Limited's assets. Included within other creditors due within 1 year is £53,000 in respect of the portion of this loan due within 1 year and £2,079,214 in creditors due after 1 year.

 

19
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
10,999
49,316
-
0
-
0

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

CWC GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 31 -
20
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
98,000
90,000
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 January 2024
90,000
-
Charge to profit or loss
8,000
-
Liability at 31 December 2024
98,000
-

The deferred tax liability set out above is expected to reverse within 36 months and relates to accelerated capital allowances that are expected to mature within the same period.

21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
63,966
71,941

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

22
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,000
1,000
1,000
1,000
CWC GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 32 -
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
195,400
194,500
-
-
Between two and five years
561,250
644,400
-
-
In over five years
449,000
561,250
-
-
1,205,650
1,400,150
-
-
24
Related party transactions

During the year the City West Commercials (Highbridge) Limited carried out transactions with businesses with which the directors are connected. All transactions were carried out on arm's length terms and are summarised as follows:

 

With companies of which S Keedwell is a director & shareholder:

 

 

 

During the year ended 31 December 2024 the group was charged £60,000 (2023: £60,000) by Gilbran (Management) Limited for the provision of management and consultancy services. Gilbran (Management) Limited is a company controlled by N P Smith.

 

Creditors due within 1 year at 31 December 2024 includes an unsecured loan of £49,000 (2023: £49,000) made by N P Smith to CWC Group Limited upon which interest at 1.5% above base rate per annum is charged.

 

During the year ended 31 December 2024 the group was charged rent of £57,400 (2023:£57,400) by S R Keedwell Holdings Limited, a company of which S R Keedwell (a director of one of the subsidiary companies within the group) is a director.

 

There was an unsecured, interest free loan at the balance sheet date of £563,129 (2023: £525,590) made by City West Commercials Limited to City West Commercials (Highbridge) Limited, a company of which City West Commercials Limited holds 51% of the issued share capital.

 

Included in other debtors at 31 December 2024 is an amount of £72,042 (2023 £0) due from the shareholders of CWC Group Limited. This loan is interest free and unsecured.

 

25
Controlling party

The ultimate controlling party is N P Smith, a director of the company, by virtue of his majority shareholding in CWC Group Limited.

CWC GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 33 -
26
Cash (absorbed by)/generated from group operations
2024
2023
£
£
(Loss)/profit for the year after tax
(365,322)
173,645
Adjustments for:
Taxation charged
185
164,026
Finance costs
655,359
645,824
Gain on disposal of tangible fixed assets
(8,013)
(40,221)
Amortisation and impairment of intangible assets
(155,013)
(155,013)
Depreciation and impairment of tangible fixed assets
495,326
456,848
Movements in working capital inc. stock, debtors and creditors acquired on acquisition of subsidiary:
Decrease in stocks
10,837,182
1,630,109
Decrease/(increase) in debtors
2,309,339
(1,853,164)
(Decrease)/increase in creditors
(13,942,612)
1,731,633
Cash (absorbed by)/generated from operations
(173,569)
2,753,687
27
Analysis of changes in net debt - group
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
2,892,709
(1,181,962)
1,710,747
Borrowings excluding overdrafts
(2,908,438)
114,214
(2,794,224)
Obligations under finance leases
(49,316)
38,317
(10,999)
(65,045)
(1,029,431)
(1,094,476)
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