Company registration number 07693714 (England and Wales)
WE BUY BOOKS LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
WE BUY BOOKS LTD
COMPANY INFORMATION
Directors
D J Carr
M W Lane
Company number
07693714
Registered office
Hall Carr Mill
Fallbarn Road
Rawtenstall
Lancashire
BB4 7NX
Auditor
Alexander & Co LLP
Centurion House
129 Deansgate
Manchester
M3 3WR
WE BUY BOOKS LTD
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Profit and loss account
7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 33
WE BUY BOOKS LTD
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

2024 was a strong year for the business, characterised by continued growth in both sales (5%) and gross profit (4%). This solid performance was delivered despite challenging market conditions, including the ongoing cost-of-living crisis and political uncertainty following a change in government during the second half of the year.

Principal risks and uncertainties

Export performance was affected by disruptions in a key U.S. sales channel, which limited growth in that region. Nevertheless, exports continued to represent 19% of total sales (2023: 25%).

Development and performance

As planned, the company made substantial investments throughout the year, prioritising software development and automation to enhance operational efficiency. We also progressed our sustainable product initiative, focused on the resale of used LEGO® products, which continues to be a strategic area of innovation and growth.

Further improvements were made to the Hall Carr Mill property as part of our ongoing infrastructure enhancement efforts.

Operational efficiencies achieved over the past two years have resulted in a reduction in headcount from a peak of approximately 180 to around 140 employees. Despite this, we remain firmly committed to our team and have continued to invest in staff development through targeted training programmes.

Future Developments

Looking ahead to 2025, the Directors remain confident in the company’s outlook. Strategic plans for the coming year include increased investment to support further growth and a renewed emphasis on expanding export markets.

On behalf of the board

M W Lane
Director
6 June 2025
WE BUY BOOKS LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -

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

Principal activities

The principal activity of the group was that of online purchasing and selling of used books and other items. The company is also involved in property investment.

Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £600,000. 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:

D J Carr
M W Lane
Auditor

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

Statement of directors' responsibilities

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

 

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

 

 

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

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.

WE BUY BOOKS LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
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
M W Lane
Director
6 June 2025
WE BUY BOOKS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WE BUY BOOKS LTD
- 4 -
Opinion

We have audited the financial statements of We Buy Books Ltd (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:

WE BUY BOOKS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WE BUY BOOKS LTD
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

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

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.

Capability of the audit in detecting irregularities, including fraud

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.

Based on our understanding of the group, we identified that the principal risks of non-compliance with laws and regulations related to breaches of the legal and regulatory framework that the group operates in. We considered the extent to which non-compliance might have a material effect on the financial statements. The key laws and regulations we considered in this context included UK Companies Act 2006, employment law, health and safety and tax legislation.

We also evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to the posting of inappropriate journal entries to manipulate financial results and potential management bias in accounting estimates.

As a result of the above, our audit procedures performed included:

WE BUY BOOKS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WE BUY BOOKS LTD
- 6 -

There are inherent limitations in the audit procedures described above. The test nature and other inherent limitations of an audit, together with the inherent limitations of any accounting and internal control system, mean that there is an unavoidable risk that even some material misstatements in respect of irregularities may remain undiscovered even though the audit is properly planned and performed in accordance with ISAs (UK).

We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

Our examination should therefore not be relied upon to disclose all such material misstatements or frauds, errors or instances of non-compliance that might exist. The responsibility for safeguarding the assets of the group and for the prevention and detection of fraud, error and non-compliance with law or regulations rests with the directors of We Buy Books Ltd.

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.

Emma Ball (Senior Statutory Auditor)
For and on behalf of Alexander & Co LLP
6 June 2025
Chartered Accountants
Statutory Auditor
Centurion House
129 Deansgate
Manchester
M3 3WR
WE BUY BOOKS LTD
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
24,737,935
23,540,440
Cost of sales
(17,625,368)
(16,700,144)
Gross profit
7,112,567
6,840,296
Administrative expenses
(6,168,047)
(5,885,983)
Other operating income
10,817
11,800
Operating profit
4
955,337
966,113
Interest receivable and similar income
7
1,091
9,033
Interest payable and similar expenses
8
(216,035)
(277,411)
Profit before taxation
740,393
697,735
Tax on profit
9
8,186
(66,766)
Profit for the financial year
748,579
630,969
Profit for the financial year is all attributable to the owners of the parent company.
WE BUY BOOKS LTD
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -
2024
2023
£
£
Profit for the year
748,579
630,969
Other comprehensive income
-
0
-
0
Total comprehensive income for the year
748,579
630,969
Total comprehensive income for the year is all attributable to the owners of the parent company.
WE BUY BOOKS LTD
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
11
638,831
499,507
Tangible assets
12
3,074,705
2,926,564
3,713,536
3,426,071
Current assets
Stocks
16
1,718,311
1,133,469
Debtors
17
1,399,134
1,302,150
Cash at bank and in hand
32,936
23,349
3,150,381
2,458,968
Creditors: amounts falling due within one year
18
(3,206,156)
(2,575,117)
Net current liabilities
(55,775)
(116,149)
Total assets less current liabilities
3,657,761
3,309,922
Creditors: amounts falling due after more than one year
19
(1,882,202)
(1,741,037)
Provisions for liabilities
Deferred tax liability
22
133,688
75,593
(133,688)
(75,593)
Net assets
1,641,871
1,493,292
Capital and reserves
Called up share capital
25
200
200
Revaluation reserve
(104,483)
(104,483)
Profit and loss reserves
1,746,154
1,597,575
Total equity
1,641,871
1,493,292

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 6 June 2025 and are signed on its behalf by:
06 June 2025
M W Lane
Director
Company registration number 07693714 (England and Wales)
WE BUY BOOKS LTD
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2024
31 December 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investment property
13
2,408,177
2,408,177
Investments
14
100
100
2,408,277
2,408,277
Current assets
Debtors
17
19,251
20,886
Cash at bank and in hand
13,241
2,988
32,492
23,874
Creditors: amounts falling due within one year
18
(898,471)
(863,551)
Net current liabilities
(865,979)
(839,677)
Total assets less current liabilities
1,542,298
1,568,600
Creditors: amounts falling due after more than one year
19
(1,136,669)
(1,208,443)
Net assets
405,629
360,157
Capital and reserves
Called up share capital
25
200
200
Fair value reserve
(104,483)
(104,483)
Profit and loss reserves
509,912
464,440
Total equity
405,629
360,157

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £645,472 (2023: £670,315).

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

The financial statements were approved by the board of directors and authorised for issue on 6 June 2025 and are signed on its behalf by:
06 June 2025
M W Lane
Director
Company registration number 07693714 (England and Wales)
WE BUY BOOKS LTD
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2023
200
(104,483)
1,514,606
1,410,323
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
630,969
630,969
Dividends
10
-
-
(548,000)
(548,000)
Balance at 31 December 2023
200
(104,483)
1,597,575
1,493,292
Year ended 31 December 2024:
Profit and total comprehensive income
-
-
748,579
748,579
Dividends
10
-
-
(600,000)
(600,000)
Balance at 31 December 2024
200
(104,483)
1,746,154
1,641,871
WE BUY BOOKS LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2023
200
(104,483)
342,125
237,842
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
670,315
670,315
Dividends
10
-
-
(548,000)
(548,000)
Balance at 31 December 2023
200
(104,483)
464,440
360,157
Year ended 31 December 2024:
Profit and total comprehensive income
-
-
645,472
645,472
Dividends
10
-
-
(600,000)
(600,000)
Balance at 31 December 2024
200
(104,483)
509,912
405,629
WE BUY BOOKS LTD
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 13 -
2024
2023
restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
1,474,719
1,684,301
Interest paid
(216,035)
(277,411)
Income taxes paid
(103,778)
(141,599)
Net cash inflow from operating activities
1,154,906
1,265,291
Investing activities
Purchase of intangible assets
(248,389)
(365,475)
Purchase of tangible fixed assets
(83,804)
(346,211)
Repayment of DLA
146,200
18,966
Interest received
1,091
9,033
Net cash used in investing activities
(184,902)
(683,687)
Financing activities
Repayment of borrowings
(164,364)
(776)
Repayment of bank loans
(62,590)
120,846
Payment of finance leases obligations
(217,897)
(117,553)
Dividends paid to equity shareholders
(600,000)
(548,000)
Net cash used in financing activities
(1,044,851)
(545,483)
Net (decrease)/increase in cash and cash equivalents
(74,847)
36,121
Cash and cash equivalents at beginning of year
(125,739)
(161,860)
Cash and cash equivalents at end of year
(200,586)
(125,739)
Relating to:
Cash at bank and in hand
32,936
23,349
Bank overdrafts included in creditors payable within one year
(233,522)
(149,088)
The comparative information has been updated to that previously reported in the accounts for the year ended 31 December 2023.
WE BUY BOOKS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 14 -
1
Accounting policies
Company information

We Buy Books Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Hall Carr Mill, Fallbarn Road, Rawtenstall, Lancashire, BB4 7NX.

 

The group consists of We Buy Books Ltd and all of its subsidiaries.

1.1
Accounting convention

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

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

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties at fair value. The principal accounting policies adopted are set out below.

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

 

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.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company We Buy Books Ltd together with all entities controlled by the parent company (its subsidiaries).

 

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 of incorporation until the date that control ceases.

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.

WE BUY BOOKS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
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.

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

Revenue from rents receivable is recognised by reference to the period the rents relate to.

1.6
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

Property rented to a group entity is accounted for at fair value in the company accounts, with changes in fair value recognised in profit or loss, and as tangible fixed assets within the consolidated accounts.
1.7
Intangible fixed assets other than goodwill

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

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Development costs are intangible assets which have not yet been brought into use and therefore are not amortised.

 

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

Other intangible assets
1 - 5 years straight line
1.8
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.

WE BUY BOOKS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -

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
2% straight line basis
Leasehold improvements
3 to 5 years straight line basis
Plant and equipment
33.33% straight line basis
Fixtures and fittings
33.33% straight line basis
Office equipment
33.33% straight line basis
Motor vehicles
25% reducing balance

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

1.9
Fixed asset investments

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

 

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

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

1.10
Impairment of fixed assets

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

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.

1.11
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.

WE BUY BOOKS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 17 -

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.

1.12
Cash and cash equivalents

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

1.13
Financial instruments

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

 

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

 

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

Basic financial assets

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

Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

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

Classification of financial liabilities

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

WE BUY BOOKS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 18 -
Basic financial liabilities

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

 

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

 

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

Derecognition of financial liabilities

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

1.14
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.

1.15
Taxation

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

Current tax

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

Deferred tax

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

 

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

WE BUY BOOKS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 19 -
1.16
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.

1.17
Retirement benefits

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

1.18
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.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease.

 

1.19
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.20
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.

WE BUY BOOKS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
2
Judgements and key sources of estimation uncertainty

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

 

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

 

In preparing these financial statements, the directors have had to make the following judgements:

 

 

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Derived from primary activity
24,733,062
23,533,240
Rental income
4,873
7,200
24,737,935
23,540,440
2024
2023
£
£
Turnover analysed by geographical market
UK
19,930,121
17,562,083
Europe
2,180,960
2,089,890
North America
2,190,852
3,184,728
Rest of World
436,002
703,739
24,737,935
23,540,440
2024
2023
£
£
Other revenue
Interest income
1,091
9,033
Grants received
10,817
11,800
WE BUY BOOKS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses
9,693
8,895
Government grants
(10,817)
(11,800)
Fees payable to the group's auditor for the audit of the group's financial statements
24,400
24,400
Depreciation of owned tangible fixed assets
221,191
134,760
Depreciation of tangible fixed assets held under finance leases
51,652
50,635
Amortisation of intangible assets
109,065
51,142
5
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Management
15
17
2
2
Admin
15
15
-
-
Production
121
149
-
-
Total
151
181
2
2

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
3,101,343
3,430,176
-
0
-
0
Social security costs
276,173
239,242
-
-
Pension costs
139,646
108,043
-
0
-
0
3,517,162
3,777,461
-
0
-
0
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
16,328
16,328
Company pension contributions to defined contribution schemes
72,000
48,000
88,328
64,328
WE BUY BOOKS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
6
Directors' remuneration
(Continued)
- 22 -

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

7
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
1,091
9,033
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
124,449
116,367
Dividends on redeemable preference shares
6,500
6,500
Other interest on financial liabilities
30,846
105,406
Hire purchase interest payable
53,514
30,447
Other interest
726
18,691
Total finance costs
216,035
277,411
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
41,725
77,325
Adjustments in respect of prior periods
(108,006)
(32,660)
Total current tax
(66,281)
44,665
Deferred tax
Origination and reversal of timing differences
144,279
22,101
Adjustment in respect of prior periods
(86,184)
-
0
Total deferred tax
58,095
22,101
Total tax (credit)/charge
(8,186)
66,766
WE BUY BOOKS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
9
Taxation
(Continued)
- 23 -

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

2024
2023
£
£
Profit before taxation
740,393
697,735
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
185,098
174,434
Tax effect of expenses that are not deductible in determining taxable profit
8,352
22,679
Adjustments in respect of prior years
(108,006)
(32,660)
Effect of change in corporation tax rate
-
(4,864)
Permanent capital allowances in excess of depreciation
-
0
(174,059)
Depreciation on assets not qualifying for tax allowances
18,598
46,349
Amortisation on assets not qualifying for tax allowances
24,610
12,786
Research and development tax credit
(634)
-
0
Deferred tax adjustments in respect of prior years
(86,184)
-
0
Change in unrecognised deferred tax assets
(6,099)
22,101
Marginal relief
(1,279)
-
0
R&D additional deductions
(42,642)
-
Taxation (credit)/charge
(8,186)
66,766
10
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
600,000
548,000
WE BUY BOOKS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 24 -
11
Intangible fixed assets
Group
Other intangible assets
Development costs
Total
£
£
£
Cost
At 1 January 2024
479,576
76,338
555,914
Additions
184,477
63,912
248,389
At 31 December 2024
664,053
140,250
804,303
Amortisation and impairment
At 1 January 2024
56,407
-
0
56,407
Amortisation charged for the year
109,065
-
0
109,065
At 31 December 2024
165,472
-
0
165,472
Carrying amount
At 31 December 2024
498,581
140,250
638,831
At 31 December 2023
423,169
76,338
499,507

Included within intangible assets are capitalised costs for WeBuySoon (stock management system). As at 31 December 2024 the asset has a carrying value of £401,341. The remaining amortisation period is 5 years.

 

The net carrying value of intangible fixed assets includes £140,250 in development costs in respect of assets held under finance leases or hire purchase contracts.

The company had no intangible fixed assets at 31 December 2024 or 31 December 2023.

WE BUY BOOKS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 25 -
12
Tangible fixed assets
Group
Freehold land and buildings
Leasehold improvements
Plant and equipment
Fixtures and fittings
Office equipment
Motor vehicles
Total
£
£
£
£
£
£
£
Cost or valuation
At 1 January 2024
2,408,177
299,254
383,107
420,233
424,674
44,370
3,979,815
Additions
-
0
6,261
328,749
56,558
29,416
-
0
420,984
At 31 December 2024
2,408,177
305,515
711,856
476,791
454,090
44,370
4,400,799
Depreciation and impairment
At 1 January 2024
-
0
151,031
277,731
226,181
377,856
20,452
1,053,251
Depreciation charged in the year
-
0
59,384
67,111
104,515
33,860
7,973
272,843
At 31 December 2024
-
0
210,415
344,842
330,696
411,716
28,425
1,326,094
Carrying amount
At 31 December 2024
2,408,177
95,100
367,014
146,095
42,374
15,945
3,074,705
At 31 December 2023
2,408,177
148,223
105,376
194,052
46,818
23,918
2,926,564
The company had no tangible fixed assets at 31 December 2024 or 31 December 2023.
Land and buildings with a carrying value of £2,408,177 were classified as investment property in the company accounts, as the property is rented by the subsidiary.
WE BUY BOOKS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
12
Tangible fixed assets
(Continued)
- 26 -

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
317,291
80,449
-
0
-
0
Motor vehicles
15,946
23,918
-
0
-
0
333,237
104,367
-
-

Freehold land and buildings situated in Rawtenstall were last revalued professionally by Eckersley Commercial Property Solutions, Matthews & Goodman and Fisher German, all external chartered surveyors, in July 2021, July 2022 and April 2024 respectively. The valuations provided have been incorporated into the financial statements, with consideration given to the date at which they were provided. The valuations were carried out on a market value basis and were in accordance with RICS Valuation - Global standards and RICS Valuation - Professional Standards 2021 respectively.

 

The directors have considered the above valuations when reaching their valuation of £2,408,177 for the freehold land and buildings at 31 December 2024.

The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:

2024
2023
£
£
Land and buildings
Cost
2,508,334
2,508,334
Accumulated depreciation
(194,578)
(144,506)
Carrying value
2,313,756
2,363,828
WE BUY BOOKS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 27 -
13
Investment property
Group
Company
2024
2024
£
£
Fair value
At 1 January 2024 and 31 December 2024
-
2,408,177

The fair value of the investment property has been arrived at on the basis of a valuation carried out by the directors with reference to the independent professional valuations disclosed above.

14
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
100
100
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2024 and 31 December 2024
100
Carrying amount
At 31 December 2024
100
At 31 December 2023
100
15
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
Revival Books Limited
Hall Carr Mill, Fallbarn Road, Rawtenstall, BB4 7NX
Ordinary
100.00
-
Media Stand Limited
Centurion House, 129 Deansgate, Manchester, M3 3WR
Ordinary
0
100.00

The above subsidiaries are included in the consolidated financial statements.

 

Revival Books Limited has guaranteed the liabilities of Media Stand Limited in order that they qualify for the exemption from audit under Section 479A of the Companies Act 2006 in respect of the year ending 31 December 2024.

WE BUY BOOKS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 28 -
16
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
1,718,311
1,133,469
-
0
-
0
17
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
179,977
143,147
-
0
-
0
Corporation tax recoverable
89,206
-
0
-
0
-
0
Other debtors
568,188
621,912
100
100
Prepayments and accrued income
561,763
537,091
19,151
20,786
1,399,134
1,302,150
19,251
20,886
18
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
20
312,945
219,327
79,423
70,239
Obligations under finance leases
21
146,133
92,195
-
0
-
0
Other borrowings
20
225,462
294,434
-
0
-
0
Trade creditors
1,168,674
741,843
1,850
-
0
Amounts owed to group undertakings
-
0
-
0
728,501
701,290
Corporation tax payable
67,776
148,629
67,776
71,616
Other taxation and social security
71,777
61,485
12,747
12,181
Government grants
23
36,383
47,200
-
0
-
0
Other creditors
780,664
529,191
-
0
-
0
Accruals and deferred income
396,342
440,813
8,174
8,225
3,206,156
2,575,117
898,471
863,551

Obligations under finance leases are secured on the assets they relate to.

 

Included within other creditors is £651,771 (2023: £420,295) which has been advanced under a Receivables Purchases and Service Agreement, whereby the lender is assigned rights to the income deriving from Amazon, until which time the debt is repaid.

WE BUY BOOKS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 29 -
19
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
20
1,136,669
1,208,443
1,136,669
1,208,443
Obligations under finance leases
21
344,750
245,964
-
0
-
0
Other borrowings
20
191,238
286,630
-
0
-
0
Other creditors
209,545
-
0
-
0
-
0
1,882,202
1,741,037
1,136,669
1,208,443
Amounts included above which fall due after five years are as follows:
Payable by instalments
518,173
758,202
518,173
758,202
20
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
1,216,092
1,278,682
1,216,092
1,278,682
Bank overdrafts
233,522
149,088
-
0
-
0
Preference shares
130,000
130,000
-
0
-
0
Other loans
286,700
451,064
-
0
-
0
1,866,314
2,008,834
1,216,092
1,278,682
Payable within one year
538,407
513,761
79,423
70,239
Payable after one year
1,327,907
1,495,073
1,136,669
1,208,443

The group's bank loans totalling £1,216,092 (2023 - £1,278,682) are secured by way of fixed and floating charges over the assets of the group by virtue of a cross guarantee, including fixed charges over the group's freehold property.

 

Other borrowings totaling £286,700 (2023 - £451,064) are secured by a debenture, comprising fixed and floating charges over the assets of the subsidiary company and by a personal guarantee from the director, M Lane.

WE BUY BOOKS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
20
Loans and overdrafts
(Continued)
- 30 -

Three bank loans were outstanding at the reporting date:

 

One of £870,339 which is repayable by monthly installments until 15 years after the date of drawdown (February 2021). Interest is charged at 3.5% per annum over the Bank of England Base Rate.

 

The second of £184,554 which is repayable by monthly installments 15 years after the date of drawdown (December 2021). Interest is charged at 3.5% per annum over the Bank of England Base Rate.

 

The third of £161,199 which is repayable by monthly installments 13 years after the date of the drawdown (February 2023). Interest is charged at 3.99% per annum over the Bank of England Base Rate.

 

Two other loans were outstanding at the reporting date:

 

One loan of £135,013 which is repayable by monthly installments until 6 years after the date of drawdown (August 2021). Interest is charged at 9.4% per annum.

 

The second of £151,687 which is repayable by monthly installments until 6 years after the date of drawdown (October 2021). Interest is charged at 10.7% per annum.

21
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
146,133
92,195
-
0
-
0
In two to five years
344,750
245,964
-
0
-
0
490,883
338,159
-
-

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

22
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
135,135
77,691
Retirement benefit obligations
(1,447)
(2,098)
133,688
75,593
The company has no deferred tax assets or liabilities.
WE BUY BOOKS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
22
Deferred taxation
(Continued)
- 31 -
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 January 2024
75,593
-
Charge to profit or loss
58,095
-
Liability at 31 December 2024
133,688
-

The deferred tax liability set out above in relation to accelerated capital allowances is expected to reverse within 36 months.

 

The deferred tax asset set out above relating to retirement benefit obligations is expected to reverse within 12 months.

23
Government grants
Group
Company
2024
2023
2024
2023
£
£
£
£
Arising from government grants
36,383
47,200
-
-
24
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
139,646
108,043

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.

25
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
200
200
200
200

The company has one class of ordinary shares which carry voting rights but no rights to fixed income.

26
Related party transactions

The company has taken advantage of the exemption available whereby it has not disclosed transactions with other companies that are wholly owned within the group.

WE BUY BOOKS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 32 -
27
Directors' transactions

A personal guarantee has been provided by the director in respect of funding for asset finance of £300,782, until delivery of asset.

Dividends totalling £600,000 (2023 - £548,000) were paid in the year in respect of shares held by the group's directors.

The following loan transactions took place between the group and its directors during the year:

Description
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
D J Carr - Loan
238,796
244,900
(318,000)
165,696
M W Lane - Loan
238,797
244,900
(318,000)
165,697
477,593
489,800
(636,000)
331,393

The loans outstanding are repayable on demand and classified in other debtors.

28
Cash generated from group operations
2024
2023
restated
£
£
Profit after taxation
748,579
630,969
Adjustments for:
Taxation (credited)/charged
(8,186)
66,766
Finance costs
216,035
277,411
Investment income
(1,091)
(9,033)
Amortisation and impairment of intangible assets
109,065
51,142
Depreciation and impairment of tangible fixed assets
272,843
251,351
Movements in working capital:
Increase in stocks
(584,842)
(173,593)
Decrease/(increase) in debtors
146,805
(9,060)
Increase in creditors
586,328
610,238
Decrease in deferred income
(10,817)
(11,800)
Cash generated from operations
1,474,719
1,684,391
WE BUY BOOKS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 33 -
29
Analysis of changes in net debt - group
1 January 2024
Cash flows
New finance leases
Other non-cash changes
31 December 2024
£
£
£
£
£
Cash at bank and in hand
23,349
9,587
-
-
32,936
Bank overdrafts
(149,088)
(84,434)
-
-
(233,522)
(125,739)
(74,847)
-
-
(200,586)
Borrowings excluding overdrafts
(1,859,746)
226,954
-
-
(1,632,792)
Obligations under finance leases
(338,159)
217,897
(637,314)
266,693
(490,883)
(2,323,644)
370,004
(637,314)
266,693
(2,324,261)
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