Company registration number 13308858 (England and Wales)
COMFG HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
COMFG HOLDINGS LIMITED
COMPANY INFORMATION
Directors
O Burek
C Cummings
D Derby
Company number
13308858
Registered office
Croesfoel Industrial Estate
Rhostyllen
Wrexham
LL14 4BJ
Accountant
Hall Livesey Brown
HLB House
68 High Street
Tarporley
Cheshire
CW6 0AT
Auditors
Riverside Accountancy Lancaster Limited
Suite 2
2 Mannin Way
Lancaster Business Park, Caton Road
Lancaster
COMFG HOLDINGS 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
Company statement of cash flows
15
Notes to the financial statements
16 - 33
COMFG HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -

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

Review of the business

 

The financial year ending June 2024 proved challenging, but as expected in terms of increased revenue, along with an improvement in the losses experienced compared to the previous period. The global economic downturn experienced in the previous year, with all of the challenges around the cost of living crisis, did ease somewhat which contributed to our improved turnover. The pivot the business underwent in 2023 proved somewhat effective and we continue with that strategy.

 

The workforce at our UK base has decreased to sixty four from eighty five, with plans to alter the mix of staff in the coming six months as we try to align our workforce with the needs that the business will require in future.

The challenge now becomes the balance between scaling back UK production at the right pace and investing in our future workforce requirements in a controlled manner whilst managing the cashflow to increase the inflow of outsourced product on a consistent basis. This is the major focus for the next period.

 

Our customer base has decrease naturally, but slowly. As with most businesses the majority of our turnover comes from a relatively small number of customers. As a business it has become apparent that time may be better spent trying to grow and cultivate these accounts, rather than trying to satisfy everyone equally. The top 50 to 70 customers globally account for the majority of our turnover and have contributed significantly to the success of our outsourced products. It therefore makes sense to accommodate their needs moving forward.

 

We continue to have a proactive and forward-looking approach to all aspects of the business. However after 8 months of the current year we are trading at a loss which brings all of the current activity into sharp focus, with a determination to continue with the strategy to pivot to a fully outsourced model

Principal risks and uncertainties

Our risks profile remains fairly consistent, and to a certain degree predictable. The competition within the equestrian helmet market has continued to increase, with one particularly strong new entrant into our core UK market having an initial adverse impact on us during FY25. The relatively easy access to goods from outside of the UK means more brands are entering the market on a regular basis.

 

Currently, our major risk is the reliability of supply from our overseas suppliers. Following a successful and consistent first 12 months, our main outsourced producer has experienced some growing pains, which is having a knock on effect to all of their current customers, including us. However, we remain proactive and communicate with them on a daily basis to manage the issues and mitigate anything as and when we encounter it.

Development and performance

Our model of still manufacturing half of our products in the UK, and its reliance on the use of raw materials still incurs unpredictable and, in some cases, disproportionately high price increases, although the pivot away from this is helping to reduce this burden. Conversely, the development of goods outside of the UK does require us to be more mindful of freight charges, which remain high as a result of global unrest outside of our control. This is a very fine balancing act while we transition. As always, labour costs in the UK remain high and are proving more difficult to control.

 

Charles Owen remains strong in terms of its position within the equestrian safety sector and is still the brand others look to emulate in terms of success and innovation. During the last 12 months we have invested our time heavily into the development of our Product Roadmap. This is the plan we use to look three, six, twelve, eighteen, twenty four months ahead, to plan with our outsourced providers what we will need in the pipeline to satisfy the ever changing demands of our customers and riders. Always with the message of safety at the heart of every product we design and make, we now have up to six new designs in that pipeline, more than ever before.

COMFG HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
Key performance indicators

The following key performance indicators have been identified by the board as most relevant to measure the performance of the company.

 

                    2023/24            2022/23    

 

Turnover                    8,254,825        6,503,986

 

Gross Profit                2,470,521        1,448,285

 

Gross Profit percentage            29.9%            22.3%    

 

Operating profit / (loss)            658,780            (118,079)

 

On behalf of the board

C Cummings
Director
24 June 2025
COMFG HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -

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

Principal activities

The principal activity of the company and group continued to be that of the manufacture and distribution of protective head wear and distribution of clothing for horse riding.

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:

O Burek
C Cummings
D Derby
Energy and carbon report

As the group has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

Statement of disclosure to auditor

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

On behalf of the board
C Cummings
Director
24 June 2025
COMFG HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 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.

COMFG HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF COMFG HOLDINGS LIMITED
- 5 -

Qualified opinion on financial statements

We have audited the financial statements of COMFG Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 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, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, except for the effects of the matter described in the Basis for Qualified Opinion paragraph, the financial statements:

Basis for qualified 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.

 

The accounts have been qualified on the basis that information was not fully available for two of the trading subsidiaries within the consolidation and some material transactions have not been verified for the audit. Where possible audit work has been completed and transactions concluded as materially correct, however not all therefore this is the basis for the qualification.

 

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.

 

We understand this year has been difficult for the group, on review of after date performance 2024 will be in a similar position however the group have secured and implemented a new strategy which will take them into 2025, with this we have nothing to report on the going concern for this year however this is being carefully monitored.

 

 

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

COMFG HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF COMFG HOLDINGS LIMITED
- 6 -

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:

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.

COMFG HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF COMFG HOLDINGS LIMITED
- 7 -
Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

 

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

 

 

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.

Penelope Bowden ACA (Senior Statutory Auditor)
For and on behalf of Riverside Accountancy Lancaster Limited
25 June 2025
Chartered Accountants
Statutory Auditor
Suite 2
2 Mannin Way
Lancaster Business Park, Caton Road
Lancaster
COMFG HOLDINGS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
8,254,824
6,503,986
Cost of sales
(5,784,304)
(5,055,701)
Gross profit
2,470,520
1,448,285
Distribution costs
(7,605)
(2,624)
Administrative expenses
(1,804,136)
(1,852,297)
Other operating income
1
288,557
Operating profit/(loss)
4
658,780
(118,079)
Interest receivable and similar income
8
833
2,134
Interest payable and similar expenses
9
(96,626)
(86,232)
Fair value gains and losses on investment properties
14
1,307,250
-
0
Profit/(loss) before taxation
1,870,237
(202,177)
Tax on profit/(loss)
10
(118,595)
273,046
Profit for the financial year
25
1,751,642
70,869
Profit for the financial year is all attributable to the owners of the parent company.
COMFG HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 9 -
2024
2023
£
£
Profit for the year
1,751,642
70,869
Other comprehensive income
-
-
Cash flow hedges gain arising in the year
-
0
-
0
Total comprehensive income for the year
1,751,642
70,869
Total comprehensive income for the year is all attributable to the owners of the parent company.
COMFG HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
30 JUNE 2024
30 June 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Negative goodwill
12
(850,921)
(1,701,843)
Tangible assets
13
373,085
366,882
Investment property
14
4,200,000
2,750,000
3,722,164
1,415,039
Current assets
Stocks
17
392,539
660,569
Debtors
18
1,703,809
900,807
Cash at bank and in hand
199,380
844,422
2,295,728
2,405,798
Creditors: amounts falling due within one year
19
(1,881,732)
(1,455,169)
Net current assets
413,996
950,629
Total assets less current liabilities
4,136,160
2,365,668
Creditors: amounts falling due after more than one year
20
(1,414,772)
(1,483,796)
Provisions for liabilities
Deferred tax liability
22
(210,734)
(327,655)
210,734
327,655
Net assets
2,932,122
1,209,527
Capital and reserves
Called up share capital
24
947
947
Profit and loss reserves
25
2,931,175
1,208,580
Total equity
2,932,122
1,209,527
The financial statements were approved by the board of directors and authorised for issue on 24 June 2025 and are signed on its behalf by:
24 June 2025
C Cummings
Director
Company registration number 13308858 (England and Wales)
COMFG HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 30 JUNE 2024
30 June 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investment property
14
4,200,000
2,750,000
Investments
15
947
947
4,200,947
2,750,947
Current assets
Debtors
18
2,500,000
2,500,000
Creditors: amounts falling due within one year
19
(1,361,625)
(1,257,539)
Net current assets
1,138,375
1,242,461
Total assets less current liabilities
5,339,322
3,993,408
Creditors: amounts falling due after more than one year
20
(1,414,772)
(1,483,796)
Provisions for liabilities
Deferred tax liability
22
233,142
(114,132)
(233,142)
114,132
Net assets
3,691,408
2,623,744
Capital and reserves
Called up share capital
24
947
947
Profit and loss reserves
25
3,690,461
2,622,797
Total equity
3,691,408
2,623,744

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £1,067,664 (2023 - £53,498 profit).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 24 June 2025 and are signed on its behalf by:
24 June 2025
C Cummings
Director
Company registration number 13308858 (England and Wales)
COMFG HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 July 2022
947
1,364,056
1,365,003
Year ended 30 June 2023:
Profit and total comprehensive income
-
70,869
70,869
Dividends
11
-
(25,000)
(25,000)
Transfers
-
(201,345)
(201,345)
Balance at 30 June 2023
947
1,208,580
1,209,527
Year ended 30 June 2024:
Profit and total comprehensive income
-
1,751,642
1,751,642
Transfers
-
(29,047)
(29,047)
Balance at 30 June 2024
947
2,931,175
2,932,122
COMFG HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 July 2022
947
2,594,299
2,595,246
Year ended 30 June 2023:
Profit and total comprehensive income for the year
-
53,498
53,498
Dividends
11
-
(25,000)
(25,000)
Balance at 30 June 2023
947
2,622,797
2,623,744
Year ended 30 June 2024:
Profit and total comprehensive income
-
1,067,664
1,067,664
Balance at 30 June 2024
947
3,690,461
3,691,408
COMFG HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
30
(243,764)
(150,095)
Interest paid
(96,626)
(86,232)
Income taxes refunded
8,100
74,410
Net cash outflow from operating activities
(332,290)
(161,917)
Investing activities
Purchase of tangible fixed assets
(58,351)
(59,249)
Purchase of investment property
(142,750)
-
Proceeds from disposal of subsidiaries, net of cash disposed
100
200
Interest received
833
2,134
Net cash used in investing activities
(200,168)
(56,915)
Financing activities
Repayment of bank loans
(64,863)
(84,648)
Dividends paid to equity shareholders
-
0
(25,000)
Net cash used in financing activities
(64,863)
(109,648)
Net decrease in cash and cash equivalents
(597,321)
(328,480)
Cash and cash equivalents at beginning of year
796,701
1,125,182
Cash and cash equivalents at end of year
199,380
796,701
Relating to:
Cash at bank and in hand
199,380
844,422
Bank overdrafts included in creditors payable within one year
-
(47,721)
COMFG HOLDINGS LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 15 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
31
297,091
24,451
Interest paid
(89,478)
(82,553)
Net cash inflow/(outflow) from operating activities
207,613
(58,102)
Investing activities
Purchase of investment property
(142,750)
-
0
Proceeds from disposal of investment property
-
0
142,750
Dividends received
-
0
25,000
Net cash (used in)/generated from investing activities
(142,750)
167,750
Financing activities
Repayment of bank loans
(64,863)
(84,648)
Dividends paid to equity shareholders
-
(25,000)
Net cash used in financing activities
(64,863)
(109,648)
Net increase in cash and cash equivalents
-
-
Cash and cash equivalents at beginning of year
-
0
-
0
Cash and cash equivalents at end of year
-
0
-
0
COMFG HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 16 -
1
Accounting policies
Company information

COMFG Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Croesfoel Industrial Estate, Rhostyllen, Wrexham, LL14 4BJ.

 

The group consists of COMFG Holdings 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, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. 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 COMFG Holdings 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 30 June 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.

COMFG HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 17 -

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.

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

1.6
Research and development expenditure

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

1.7
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 4 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.

COMFG HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 18 -
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.

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:

Plant and equipment
10/15/25% reducing balance
Fixtures and fittings
15% 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
Investment property

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.

 

1.10
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.

COMFG HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 19 -
1.11
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.

1.12
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.

1.13
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.

COMFG HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 20 -
1.14
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.

COMFG HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 21 -
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.

1.15
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.

1.16
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.

COMFG HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 22 -
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.

1.17
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.

1.18
Retirement benefits

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

1.19
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.

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.

1.20
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.

COMFG HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 23 -
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.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sales of riding equipment
8,254,824
6,503,986
2024
2023
£
£
Turnover analysed by geographical market
UK
5,243,601
4,391,489
USA
2,049,216
1,290,040
Europe
962,007
822,457
8,254,824
6,503,986
2024
2023
£
£
Other revenue
Interest income
833
2,134
4
Operating profit/(loss)
2024
2023
£
£
Operating profit/(loss) for the year is stated after charging/(crediting):
Exchange losses
33,633
92,724
Research and development costs
168,521
84,860
Depreciation of owned tangible fixed assets
52,147
48,351
Amortisation of intangible assets
(850,922)
(850,922)
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
13,070
9,970
COMFG HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 24 -
6
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
95
112
3
3

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
2,701,693
3,344,025
-
0
-
0
Social security costs
290,473
290,473
-
-
Pension costs
92,441
82,581
-
0
-
0
3,084,607
3,717,079
-
0
-
0
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
240,956
255,988
Company pension contributions to defined contribution schemes
22,572
21,000
263,528
276,988
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
106,000
106,000
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
833
2
Other interest income
-
2,132
Total income
833
2,134
COMFG HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
8
Interest receivable and similar income
(Continued)
- 25 -
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
833
2
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
96,626
86,232
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
1,674
4,059
Adjustments in respect of prior periods
-
0
(20,632)
Total current tax
1,674
(16,573)
Deferred tax
Origination and reversal of timing differences
116,921
(256,473)
Total tax charge/(credit)
118,595
(273,046)
COMFG HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
10
Taxation
(Continued)
- 26 -

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

2024
2023
£
£
Profit/(loss) before taxation
1,870,237
(202,177)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 19.00% (2023: 19.00%)
355,345
(38,414)
Tax effect of expenses that are not deductible in determining taxable profit
(18,524)
89
Gains not taxable
(1,674)
-
0
Unutilised tax losses carried forward
-
0
210,591
Depreciation on assets not qualifying for tax allowances
9,381
8,936
Amortisation on assets not qualifying for tax allowances
-
0
(161,675)
Research and development tax credit
(100,499)
-
0
Under/(over) provided in prior years
-
0
(20,632)
Deferred tax adjustments in respect of prior years
(116,921)
(260,512)
Capital allowances
(8,513)
(11,429)
Taxation charge/(credit)
118,595
(273,046)
11
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
-
25,000
12
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 July 2023 and 30 June 2024
(3,403,687)
Amortisation and impairment
At 1 July 2023
(1,701,844)
Amortisation charged for the year
(850,922)
At 30 June 2024
(2,552,766)
Carrying amount
At 30 June 2024
(850,921)
At 30 June 2023
(1,701,843)
COMFG HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
12
Intangible fixed assets
(Continued)
- 27 -

Negative goodwill arose when the company was brought into the group as it was brought in at a bargain price.

13
Tangible fixed assets
Group
Plant and equipment
Fixtures and fittings
Total
£
£
£
Cost
At 1 July 2023
511,188
11,276
522,464
Additions
43,938
14,413
58,351
At 30 June 2024
555,126
25,689
580,815
Depreciation and impairment
At 1 July 2023
152,593
2,990
155,583
Depreciation charged in the year
49,372
2,775
52,147
At 30 June 2024
201,965
5,765
207,730
Carrying amount
At 30 June 2024
353,161
19,924
373,085
At 30 June 2023
358,596
8,286
366,882
The company had no tangible fixed assets at 30 June 2024 or 30 June 2023.
14
Investment property
Group
Company
2024
2024
£
£
Fair value
At 1 July 2023
2,750,000
2,750,000
Additions through external acquisition
1,450,000
1,450,000
At 30 June 2024
4,200,000
4,200,000

Investment property comprises the land and buildings at Croesfoel Industrial Estate, Wrexham Road, Pentre Bychan, Wrexham which was purchased 12 April 2022.

15
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
16
-
0
-
0
947
947
COMFG HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
15
Fixed asset investments
(Continued)
- 28 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 July 2023 and 30 June 2024
947
Carrying amount
At 30 June 2024
947
At 30 June 2023
947
16
Subsidiaries

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

Name of undertaking
Registered office
% Held
Direct
COMFG Ltd
Royal Works Croesfoel Industrial Estate, Rhostyllen, Wrexham, Wales, LL14 4BJ
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
COMFG Ltd
116,698
(676,481)
0

Charles Owen Inc, Charles Owen (Europe) and EQX Ltd are subsidiaries of COMFG Ltd and are included within the consolidated accounts.

17
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
233,407
447,667
-
-
Finished goods and goods for resale
159,132
212,902
-
0
-
0
392,539
660,569
-
-
COMFG HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 29 -
18
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,284,302
649,286
-
0
-
0
Corporation tax recoverable
-
0
3,227
-
0
-
0
Other debtors
60,415
975
2,500,000
2,500,000
Prepayments and accrued income
359,092
247,319
-
0
-
0
1,703,809
900,807
2,500,000
2,500,000
19
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
21
79,514
123,074
79,514
75,353
Trade creditors
749,839
235,474
-
0
-
0
Corporation tax payable
6,547
-
0
-
0
-
0
Other taxation and social security
57,049
85,435
4,938
7,426
Other creditors
866,632
872,463
1,277,173
1,174,760
Accruals and deferred income
122,151
138,723
-
0
-
0
1,881,732
1,455,169
1,361,625
1,257,539
20
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
21
1,414,772
1,483,796
1,414,772
1,483,796
21
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
1,494,286
1,559,149
1,494,286
1,559,149
Bank overdrafts
-
0
47,721
-
0
-
0
1,494,286
1,606,870
1,494,286
1,559,149
Payable within one year
79,514
123,074
79,514
75,353
Payable after one year
1,414,772
1,483,796
1,414,772
1,483,796

The long-term loans are secured by fixed charges over the land and buildings.

COMFG HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 30 -
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
63,726
64,594
Tax losses
(601,273)
(392,249)
Investment property
326,813
-
(210,734)
(327,655)
Liabilities
Liabilities
2024
2023
Company
£
£
Tax losses
(93,671)
(114,132)
Investment property
326,813
-
233,142
(114,132)
Group
Company
2024
2024
Movements in the year:
£
£
Asset at 1 July 2023
(327,655)
(114,132)
(Credit)/charge to profit or loss
(209,892)
20,461
Charge to other comprehensive income
326,813
326,813
Liability/(Asset) at 30 June 2024
(210,734)
233,142

 

23
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
92,441
82,581

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.

COMFG HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 31 -
24
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
90,000
90,000
900
900
B Ordinary shares of 1p each
4,735
4,735
47
47
94,735
94,735
947
947
25
Reserves
Revaluation reserve

The Investment property is valued at fair value, with changes in fair value recognised through the profit and loss account to reflect its current market value.

Equity reserve

The equity component of the convertible loan notes has been credited to the equity reserve.

Profit and loss reserves

Retained earnings comprise of the opening reserves, the net profit/net loss made during the accounting period teking into account the tax and dividends paid.

26
Operating lease commitments

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
61,629
147,063
-
-
Between two and five years
309,110
588,528
-
-
In over five years
-
1,147,256
-
-
370,739
1,882,847
-
-
Lessor

The operating leases represent leases of the Investment property from COMFG Holdings Ltd to COMFG Ltd.

27
Events after the reporting date

The Investment property was sold after the year end date.

28
Related party transactions
Transactions with related parties
COMFG HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
28
Related party transactions
(Continued)
- 32 -

During the year rent of £154,340 was paid by COMFG ltd to COMFG Holdings Ltd. Sales of £691,804 were made in COMFG ltd from goods sold to Charles Owen (Europe). Sales of £788,682 were made in COMFG Ltd from goods sold to Charles Owen Inc. Sales of £637,160 were made in EQX Ltd from goods sold to Charles Owen Inc. Sales of £176,942 were made in EQX Ltd from goods sold to Charles Owen (Europe).

 

29
Controlling party

The ultimate controlling party is O Burek.

30
Cash absorbed by group operations
2024
2023
£
£
Profit after taxation
1,751,642
70,869
Adjustments for:
Taxation charged/(credited)
118,595
(273,046)
Finance costs
96,626
86,232
Investment income
(833)
(2,134)
Fair value gain on investment properties
(1,307,250)
-
0
Amortisation and impairment of intangible assets
(850,922)
(850,922)
Depreciation and impairment of tangible fixed assets
52,147
48,351
Movements in working capital:
Decrease in stocks
268,030
134,786
(Increase)/decrease in debtors
(806,229)
1,084,447
Increase/(decrease) in creditors
434,430
(448,678)
Cash absorbed by operations
(243,764)
(150,095)
31
Cash generated from operations - company
2024
2023
£
£
Profit after taxation
1,067,664
53,498
Adjustments for:
Taxation charged
347,274
11,719
Finance costs
89,478
82,553
Investment income
-
0
(25,000)
Fair value gain on investment properties
(1,307,250)
-
0
Movements in working capital:
Increase/(decrease) in creditors
99,925
(98,319)
Cash generated from operations
297,091
24,451
COMFG HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 33 -
32
Analysis of changes in net debt - group
1 July 2023
Cash flows
30 June 2024
£
£
£
Cash at bank and in hand
844,422
(645,042)
199,380
Bank overdrafts
(47,721)
47,721
-
0
796,701
(597,321)
199,380
Borrowings excluding overdrafts
(1,559,149)
64,863
(1,494,286)
(762,448)
(532,458)
(1,294,906)
33
Analysis of changes in net debt - company
1 July 2023
Cash flows
30 June 2024
£
£
£
Borrowings excluding overdrafts
(1,559,149)
64,863
(1,494,286)
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