Company registration number 02558702 (England and Wales)
ALLAWAY GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
ALLAWAY GROUP LIMITED
COMPANY INFORMATION
Directors
Ms R G Wade
Mrs V R Jewitt
Ms C A Wade
Mr W C Wade
Company number
02558702
Registered office
1 Queens Road
Hertford
Hertfordshire
England
SG14 1EN
Auditor
Henton & Co LLP
Stag House
Old London Road
Hertford
Hertfordshire
SG13 7LA
ALLAWAY GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 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 - 27
ALLAWAY GROUP 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
2024
2023
Turnover increase/(decrease) on previous year
55%
37%
Gross profit margin
46%
36%
Net profit margin
22%
13%
Liquidity ratio
3.00
2.20
Debtor Days
86
93
The group has achieved significant growth, marked by a 55% increase in turnover. This growth has been primarily driven by Allaway's specialism in acoustic enclosures, and has benefitted from the surging demand for data centres worldwide. Increases in the availability of materials and the focus of management on workflow planning has led to the group carrying out a greater number of contracts and achieving greater turnover. Gross profit margin improved in 2024 and the directors were pleased that they had properly managed the significant changes in costs which were tempered by increasing efficiency in the manufacturing process and the rise in turnover.
The group liquidity has continued to strengthen as a result of the continued focus on careful cash management and the retention of the group reserves. The group also ensures it focuses on debtor recoverability to improve cash flow, as a strong working capital allows us to take advantage of early payment discounts wherever possible.
To support rising demand, the group leased a new factory in close proximity to our existing facility, allowing for a seamless increase in production. This expansion also enabled the company to introduce a second shift, further increasing output capacity.
Continued investment by the group in plant and machinery enhanced production efficiency, reduced downtime, and increased capacity, thereby improving profitability.
The group experienced remarkable growth, driven by strategic market positioning, operational efficiencies, and timely investments. With a solid foundation in place and a proactive approach to expansion, the outlook remains highly positive for sustained profitability and long-term success.
ALLAWAY GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
Principal risks and uncertainties
The group uses various financial instruments including cash and equity investments as well as other items, such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the company's operations. The existence of these financial instruments exposes the group to a number of financial risks, which are described in more detail below.
Interest rate risk
The group finances its operations primarily through cash reserves. The group's exposure to interest rate fluctuations on its deposits are managed by the use of both fixed and floating rates.
Liquidity risk
The group seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs. The directors consider that the cash reserves are more than sufficient to finance short to medium term operations with funding being provided to subsidiary undertakings when required.
Credit risk
The group's principal financial assets are cash and trade debtors. The credit risk associated with cash is limited as the counterparties have appropriate credit ratings. In order to manage credit risk on trade debtors the directors set limits for customers based on a combination of payment history and third party credit references. Credit limits are reviewed by the credit controller on a regular basis in conjunction with debt ageing and collection history.
Foreign Currency Risk
The group's principal foreign currency exposures arise from trading with overseas companies and the group has limited its exposure by invoicing its overseas customers in sterling wherever possible although some exposure may still remain with regards to foreign currency costs.
Key performance indicators
The directors consider that the group's key performance indicators (KPIs) are those that communicate the financial performance and strength of group as a whole to the members. The KPIs comprise revenue growth; operating profit and gross margin.
Mr W C Wade
Director
24 June 2025
ALLAWAY GROUP 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 group was the manufacture and supply of acoustic and sound insulating systems. The principal activity of the company was that of the supply of management services to its subsidiaries.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £87,389. 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:
Ms R G Wade
Mrs V R Jewitt
Ms C A Wade
Mr W C Wade
Auditor
In accordance with the company's articles, a resolution proposing that Henton & Co LLP be reappointed as auditor of the group 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:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
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.
ALLAWAY GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 4 -
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
Mr W C Wade
Director
24 June 2025
ALLAWAY GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ALLAWAY GROUP LIMITED
- 5 -
Opinion
We have audited the financial statements of Allaway Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2024 which comprise 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:
give a true and fair view of the state of the group's and the parent company's affairs as at 30 June 2024 and of the group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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.
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:
The information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
The strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
ALLAWAY GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ALLAWAY GROUP LIMITED
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, 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.
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.
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, and non-compliance with laws and regulations, our procedures included the following: enquiring of management concerning the company's policies with regards identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; enquiring of management concerning the company's policies detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; enquiring of management concerning the company's policies in relation to the internal controls established to mitigate risks related to fraud or non- compliance with laws and regulations; discussing among the engagement team where fraud might occur in the financial statements and any potential indicators of fraud; and obtaining an understanding of the legal and regulatory framework that the company operates in and focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations of the company. The key laws and regulations we considered in this context included the UK Companies Act 2006, Financial Reporting Standard 102, applicable tax legislation and health and safety laws.
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: enquiries of the directors, management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.
ALLAWAY GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ALLAWAY GROUP LIMITED
- 7 -
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK). We are not responsible for preventing non compliance and cannot be expected to detect non-compliance with all laws and regulations.
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.
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.
Stuart Heaney (Senior Statutory Auditor)
For and on behalf of Henton & Co LLP, Statutory Auditor
Chartered Accountants
Stag House
Old London Road
Hertford
Hertfordshire
SG13 7LA
24 June 2025
ALLAWAY GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
33,123,519
21,377,788
Cost of sales
(17,980,223)
(13,752,124)
Gross profit
15,143,296
7,625,664
Administrative expenses
(5,391,211)
(4,193,718)
Operating profit
4
9,752,085
3,431,946
Interest receivable and similar income
7
78,346
17,255
Interest payable and similar expenses
8
(17,304)
(546)
Profit before taxation
9,813,127
3,448,655
Tax on profit
9
(2,563,407)
(719,235)
Profit for the financial year
7,249,720
2,729,420
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
ALLAWAY GROUP LIMITED
GROUP BALANCE SHEET
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
2,720,470
2,754,885
Current assets
Stocks
14
2,500,757
1,698,461
Debtors
15
12,697,619
9,619,935
Cash at bank and in hand
6,641,994
2,356,755
21,840,370
13,675,151
Creditors: amounts falling due within one year
16
(7,291,021)
(6,342,912)
Net current assets
14,549,349
7,332,239
Total assets less current liabilities
17,269,819
10,087,124
Provisions for liabilities
Deferred tax liability
17
191,044
170,680
(191,044)
(170,680)
Net assets
17,078,775
9,916,444
Capital and reserves
Called up share capital
19
2,420
2,420
Capital redemption reserve
7,580
7,580
Profit and loss reserves
17,068,775
9,906,444
Total equity
17,078,775
9,916,444
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 24 June 2025 and are signed on its behalf by:
24 June 2025
Mr W C Wade
Director
Company registration number 02558702 (England and Wales)
ALLAWAY GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 30 JUNE 2024
30 June 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
1,624,993
1,625,326
Investments
12
303,000
303,000
1,927,993
1,928,326
Current assets
Debtors
15
4,305,791
4,157,085
Cash at bank and in hand
51,575
34,266
4,357,366
4,191,351
Creditors: amounts falling due within one year
16
(4,011,727)
(3,784,683)
Net current assets
345,639
406,668
Net assets
2,273,632
2,334,994
Capital and reserves
Called up share capital
19
2,420
2,420
Capital redemption reserve
7,580
7,580
Profit and loss reserves
2,263,632
2,324,994
Total equity
2,273,632
2,334,994
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 £26,028 (2023 - £228,826 profit).
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 24 June 2025 and are signed on its behalf by:
24 June 2025
Mr W C Wade
Director
Company registration number 02558702 (England and Wales)
ALLAWAY GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 11 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 July 2022
2,420
7,580
7,190,522
7,200,522
Year ended 30 June 2023:
Profit and total comprehensive income
-
-
2,729,420
2,729,420
Dividends
10
-
-
(13,498)
(13,498)
Balance at 30 June 2023
2,420
7,580
9,906,444
9,916,444
Year ended 30 June 2024:
Profit and total comprehensive income
-
-
7,249,720
7,249,720
Dividends
10
-
-
(87,389)
(87,389)
Balance at 30 June 2024
2,420
7,580
17,068,775
17,078,775
ALLAWAY GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 12 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 July 2022
2,420
7,580
2,109,666
2,119,666
Year ended 30 June 2023:
Profit and total comprehensive income for the year
-
-
228,826
228,826
Dividends
10
-
-
(13,498)
(13,498)
Balance at 30 June 2023
2,420
7,580
2,324,994
2,334,994
Year ended 30 June 2024:
Profit and total comprehensive income
-
-
26,027
26,027
Dividends
10
-
-
(87,389)
(87,389)
Balance at 30 June 2024
2,420
7,580
2,263,632
2,273,632
ALLAWAY GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
7,243,122
1,952,862
Interest paid
(17,304)
(546)
Income taxes paid
(2,522,646)
(383,499)
Net cash inflow from operating activities
4,703,172
1,568,817
Investing activities
Purchase of tangible fixed assets
(408,890)
(788,265)
Proceeds from disposal of tangible fixed assets
-
31,750
Interest received
78,346
17,255
Net cash used in investing activities
(330,544)
(739,260)
Financing activities
Dividends paid to equity shareholders
(87,389)
(13,498)
Net cash used in financing activities
(87,389)
(13,498)
Net increase in cash and cash equivalents
4,285,239
816,059
Cash and cash equivalents at beginning of year
2,356,755
1,540,696
Cash and cash equivalents at end of year
6,641,994
2,356,755
ALLAWAY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 14 -
1
Accounting policies
Company information
Allaway Group Limited is a private company, limited by shares, registered in England and Wales. The company's registered number and registered office address is 1 Queens Road, Hertford, Hertfordshire, SG14 1EN.
The group consists of Allaway Group Limited and all of its subsidiaries.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
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:
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.
1.2
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Allaway Group Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 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.
ALLAWAY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 15 -
1.3
Going concern
After reviewing the group and parent company's financial information, the director's have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. The directors have agreed that they will not demand repayment of the loan balances owing to them until the group is in a position to repay these amounts. The Group therefore continues to adopt the going concern basis in preparing its financial statements.
1.4
Turnover
Turnover is measured at the fair value of the consideration received or receivable from the sale of goods and from the rendering of services in the year, net of returns and value added tax.
The Group recognises turnover when the risks and rewards of ownership have transferred to the buyer, usually on the completion of an order, when the amount of revenue can be measured reliably and it is probable that economic benefits associated to the transaction will flow to the entity.
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost 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:
Freehold property
No depreciation
Improvements to property
amortised over the period of the lease
Plant and equipment
25% on reducing balance
Fixtures and fittings
20% on reducing balance
Office equipment
20% - 25% on reducing balance
Motor vehicles
25% on reducing balance
No depreciation has been provided on the company's freehold property as, in the opinion of the directors, the market value of the properties continues to be in excess of the book value. The company maintains and refurbishes the freehold property to a level which enables the directors to conclude that the expected residual value will be of a level that results in no depreciation being charged.
1.6
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.
1.7
Stocks
Stocks are valued at the lower of cost and estimated selling price less costs to sell, after making due allowance for obsolete and slow moving items.
Work-in-progress is valued on the basis of direct cost plus attributable overheads based on normal levels of activity. Provision is made for any foreseeable losses where appropriate. No element of profit is included in the value of work-in-progress.
ALLAWAY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 16 -
1.8
Cash and cash equivalents
Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk to changes in value.
1.9
Financial instruments
The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade debtors, trade creditors and other debtors and creditors, loans from banks and other third parties and loans to related parties.
Debt instruments like loans and other accounts receivable and payable are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method; Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an outright short-term loan not at market rate, the financial asset or liability is measured, initially and subsequently, at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit and loss.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and the best estimate, which is an approximation, of the amount that the company would receive for the asset if it were to be sold at the reporting date.
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an 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.
1.10
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Profit and Loss Account and Other Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.
Current or deferred taxation assets and liabilities are not discounted.
Current tax
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
ALLAWAY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 17 -
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
1.11
Retirement benefits
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. The assets of the pension scheme are held separately from those of the group in independently administered funds.
1.12
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.
1.13
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.
ALLAWAY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 18 -
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.
Depreciation
The annual depreciation charge is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually.
Recoverability of debtors
The group makes estimates of the recoverable value of trade and other debtors. When assessing the impairment of trade and other debtors management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.
Finished goods valuation
Judgement is used in the financial statements is in relation to the value of finished goods, in which directors must make an estimate for this amount by considering the standard costs.
Work in progress valuation
Judgement is used in the financial statements in relation to the value of work in progress, in which directors must make an estimate for this amount by considering the standard costs as well as the costs relating to each stage of the production process.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Manufacture and supply of acoustic and sound insulation systems
33,123,519
21,377,788
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
26,699,789
17,313,671
Europe
6,423,730
4,064,117
33,123,519
21,377,788
2024
2023
£
£
Other revenue
Interest income
78,346
17,255
ALLAWAY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 19 -
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging:
Exchange losses
1,431
-
Fees payable to the group's auditor for the audit of the group's financial statements
9,000
7,750
Depreciation of owned tangible fixed assets
438,209
299,416
Loss on disposal of tangible fixed assets
5,096
6,299
Operating lease charges
138,069
124,971
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
Directors
4
4
4
4
Administration and management
48
34
2
2
Production
89
79
-
-
Total
141
117
6
6
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
5,496,076
4,503,677
91,824
91,824
Social security costs
518,058
433,956
6,931
7,033
Pension costs
287,393
227,383
16,250
50,929
6,301,527
5,165,016
115,005
149,786
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
117,717
114,191
ALLAWAY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 20 -
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
78,346
17,255
8
Interest payable and similar expenses
2024
2023
£
£
Interest on corporation tax
17,304
-
Other interest
-
546
Total finance costs
17,304
546
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
2,543,043
637,999
Adjustments in respect of prior periods
637
Total current tax
2,543,043
638,636
Deferred tax
Origination and reversal of timing differences
20,364
80,599
Total tax charge
2,563,407
719,235
ALLAWAY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
9
Taxation
(Continued)
- 21 -
The actual 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
9,813,127
3,448,655
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.50%)
2,453,282
706,974
Tax effect of expenses that are not deductible in determining taxable profit
41,663
4,658
Adjustments in respect of prior years
637
Effect of change in corporation tax rate
-
(128)
Tax at marginal rate
(105)
Depreciation in excess of capital allowances
16,572
(80,448)
Deferred tax
20,364
80,599
Other adjustments
19,508
6,943
Revenue items capitalised
12,123
-
Taxation charge
2,563,407
719,235
10
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Interim paid
87,389
13,498
ALLAWAY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 22 -
11
Tangible fixed assets
Group
Freehold property
Improvements to property
Plant and equipment
Fixtures and fittings
Office equipment
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 July 2023
1,624,067
1,046,029
2,549,380
9,826
465,032
257,321
5,951,655
Additions
184,281
187,312
678
36,619
408,890
Disposals
(50,143)
(50,143)
At 30 June 2024
1,624,067
1,230,310
2,736,692
10,504
451,508
257,321
6,310,402
Depreciation and impairment
At 1 July 2023
858,027
1,936,917
8,741
318,159
74,926
3,196,770
Depreciation charged in the year
192,183
165,266
313
34,848
45,599
438,209
Eliminated in respect of disposals
(45,047)
(45,047)
At 30 June 2024
1,050,210
2,102,183
9,054
307,960
120,525
3,589,932
Carrying amount
At 30 June 2024
1,624,067
180,100
634,509
1,450
143,548
136,796
2,720,470
At 30 June 2023
1,624,067
188,002
612,463
1,085
146,873
182,395
2,754,885
Company
Freehold property
Plant and equipment
Fixtures and fittings
Total
£
£
£
£
Cost
At 1 July 2023 and 30 June 2024
1,624,067
1,833
12,704
1,638,604
Depreciation and impairment
At 1 July 2023
1,659
11,619
13,278
Depreciation charged in the year
43
290
333
At 30 June 2024
1,702
11,909
13,611
Carrying amount
At 30 June 2024
1,624,067
131
795
1,624,993
At 30 June 2023
1,624,067
174
1,085
1,625,326
ALLAWAY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 23 -
12
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
13
303,000
303,000
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 July 2023 and 30 June 2024
303,000
Carrying amount
At 30 June 2024
303,000
At 30 June 2023
303,000
13
Subsidiaries
Details of the company's subsidiaries at 30 June 2024 are as follows:
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Allaway Acoustics Limited
1 Queens Road, Hertford, Herts, SG14 1EN
Supply of acoustic and sound insulating systems
Ordinary
100.00
Allaway Manufacturing Limited
1 Queens Road, Hertford, Herts, SG14 1EN
Manufacture of acoustic insulating systems
Ordinary
100.00
Allaway Joinery Limited
1 Queens Road, Hertford, Herts, SG14 1EN
Dormant
Ordinary
100.00
Allaway Acoustics Solutions Limited
1 Queens Road, Hertford, Herts, SG14 1EN
Dormant
Ordinary
100.00
14
Stocks
Group
As restated
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
958,805
896,867
-
-
Work in progress
24,875
30,110
-
-
Finished goods and goods for resale
1,517,077
771,484
2,500,757
1,698,461
-
-
ALLAWAY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 24 -
15
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
7,761,368
5,420,408
Amounts owed by group undertakings
-
-
1,372,242
1,239,670
Other debtors
4,670,668
3,969,209
2,929,251
2,913,531
Prepayments and accrued income
265,583
230,318
4,298
3,884
12,697,619
9,619,935
4,305,791
4,157,085
16
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
£
£
£
£
Trade creditors
2,267,921
1,968,216
5,700
Amounts owed to group undertakings
756,802
488,289
Corporation tax payable
474,274
453,877
10,652
59,286
Other taxation and social security
411,620
306,250
9,681
8,249
Other creditors
3,353,519
3,311,013
3,213,450
3,216,778
Accruals and deferred income
783,687
303,556
15,442
12,081
7,291,021
6,342,912
4,011,727
3,784,683
ALLAWAY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 25 -
17
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
191,044
170,680
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 July 2023
170,680
-
Charge to profit or loss
20,364
-
Liability at 30 June 2024
191,044
-
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
287,393
227,383
The group operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund. Contributions totalling £131,471 (2023 – £26,007) were payable to the funds at the balance sheet date and are included in creditors.
19
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2,420
2,420
2,420
2,420
20
Financial commitments, guarantees and contingent liabilities
The company is party to a cross-company guarantee and debenture dated 15th November 2017 between fellow group undertakings, Allaway Manufacturing Limited and Allaway Acoustics Limited.
ALLAWAY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 26 -
21
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
170,504
107,308
-
-
Between two and five years
443,506
98,137
-
-
614,010
205,445
-
-
22
Related party transactions
Transactions with related parties
During the year the group entered into the following transactions with related parties:
Rental expenditure
2024
2023
£
£
Group
Entities under common control
45,000
45,000
The following amounts were outstanding at the reporting end date:
Amounts due from related parties
2024
2023
Balance
Balance
£
£
Group
Entities under common control
3,729,798
3,531,506
Company
Entities under common control
2,929,250
2,913,532
23
Directors' transactions
Dividends totalling £61,389 (2023 - £9,482) were paid in the year in respect of shares held by the company's directors.
As at 30th June 2024 the group owed its directors £3,209,482 (2023: £3,209,482). No interest was charged on this advance in the current or previous year.
ALLAWAY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 27 -
24
Cash generated from group operations
2024
2023
£
£
Profit after taxation
7,249,720
2,729,420
Adjustments for:
Taxation charged
2,563,407
719,235
Finance costs
17,304
546
Investment income
(78,346)
(17,255)
Loss on disposal of tangible fixed assets
5,096
6,299
Depreciation and impairment of tangible fixed assets
438,209
299,416
Movements in working capital:
Increase in stocks
(802,296)
(347,771)
Increase in debtors
(3,077,684)
(1,916,104)
Increase in creditors
927,712
479,076
Cash generated from operations
7,243,122
1,952,862
25
Analysis of changes in net funds - group
1 July 2023
Cash flows
30 June 2024
£
£
£
Cash at bank and in hand
2,356,755
4,285,239
6,641,994
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