The directors present the strategic report for the year ended 31 December 2024.
The Westgrove group of companies are established, innovative and independent cleaning, security and dual service providers.
There have not been any significant changes to the group's or company’s principal activities during the year under review. The Directors are not aware, at the date of this report, of any likely changes to the principal activities in the next year.
2024 has been another difficult year as the business tried to keep costs under control in a high inflation market, tender for and win new higher margin contracts and retain existing customer contracts. Despite the challenges the business has faced turnover for the year has increased to £30.9m (2023: £27.8m). The core activity continues to be the provision of staffing services, delivering a sustainable, quality service. The directors continue to focus on turnover growth and maintaining profitability levels and are confident post pandemic that growth will be achieved from continually seeking to increase market share, maintaining existing contracts and customers, in addition to securing new opportunities.
In order to implement the above, a new Strategic Leadership Team has been created with G Wilson (MD) and C McKinley-Smith (CEO) developing high level relationships which is contributing to enhances turnover and profitability in 2024.
Westgrove are committed to the continued investment in infrastructure to facilitate growth. This has had a disproportionate impact on the trading profits within this accounting period. However the difficulty in recruiting additional Business Development resources has had an adverse impact on the ability to generate additional turnover.
Due to effective management of direct costs, gross profit margin has remained consistent with the prior year at 11.4% (2023: 11.1%).
Administrative costs have predominately remained consistent with the prior year, again due to close and effective cost controls.
The group has recognised the difficulties in winning new work & the erosion of margins within the traditional market of shopping centres & retail parks. It is investing heavily within its senior team with a strategy to target more varied sectors , specifically industrial & distribution sectors.
The year ended 31 December 2024 resulted in a group profit before tax of £552k (2023: £345k) which the directors are satisfied with, particularly considering the erosion of margins in traditional markets noted above.
At the year end, the group has net assets of £610k (2023: £409k). The directors are satisfied with the 2024 financial position and believes this places the company in a strong and stable financial position.
The directors have considered the exposure of the group to risks. The principal risks are interest rate risk, credit risk and liquidity risk.
Interest rate risk
The group is funded through its retained earnings and borrowings. The directors regularly monitor cash flow projections of the company in order to ensure that it has sufficient available funds for its continuing operations. The risk is managed by monitoring key ratios such as interest cover, as well as cash flow. The group does not use derivative financial instruments to manage this risk and, as such, no hedge accounting is applied.
Liquidity risk
The group seeks to manage financial risk by ensuring liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. Short-term flexibility is achieved by an invoice discounting facility.
Credit risk
The principal credit risk arises from the group's trade debtors.
The group has policies in place such that credit checks are made on all potential customers as part of the set new account procedures.
Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.
Foreign currency risk
The group is not exposed to any significant direct currency risk since there are no foreign subsidiaries or balances held in foreign locations, and all invoicing is in sterling.
Brexit
Following the UK leaving the European Union on 31 January 2020, the group recognise the increasing difficulty to
recruit directly employed staff and therefore are becoming more reliant on subcontract labour.
The group is committed to paying the living wages, however this along with price increases of materials and
consumables is having an adverse effect of the margins achievable.
The Directors have and will continue to monitor all of the KPI’s and daily operating controls and maintain a strong focus on increasing performance in all aspects of the business.
The main KPI’s and corresponding results are as follows:
2024 2023
Gross profit % 11% 11%
Net profit % 1% 1%
EBITDA £1,257,447 £989,599
The group focus on its core business is reflected in the systems, infrastructure, and investment in its staff in order to deliver an effective national service to all customers.
Future developments will involve focussing on growth that is complementary to our core business.
It is recognised by the directors of the Westgrove Group that the margins available within their traditional market sector of retail parks and shopping centres are being eroded. Therefore the Westgrove Group are looking at potential opportunities in other sectors to utilise their specialist knowledge of ‘ soft services ‘ but have ventured into ‘ hard services’ which will open up alternative markets with higher gross margins. This 'hard services' offering will also work hand in glove with the group's soft services and current partners.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 December 2024.
The results for the year are set out on page 10.
Ordinary dividends were paid amounting to £292,000. The directors do not recommend payment of a further dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
The group's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.
There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.
The group has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments.
The auditor, Sumer Auditco Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
We have audited the financial statements of Westgrove Group (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 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).
Basis for opinion
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
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.
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 identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussions with the directors (as required by auditing standards) and discussed with the directors the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. The potential effect of these laws and regulations on the financial statements varies considerably.
Firstly, Westgrove Group (Holdings) Limited is subject to laws and regulations that directly affect the financial statements including financial reporting legislation and taxation legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
Secondly, Westgrove Group (Holdings) Limited is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation or the loss of the company's license to operate. We identified the following areas as those most likely to have such an effect: laws related to packaging recycling, controls of substances hazardous to health, and security.
Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and inspection of regulatory and legal correspondence, if any. Through these procedures we did not become aware of any actual or suspected non-compliance.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
We design procedures in line with our responsibilities, outlined below to detect material misstatement due to fraud:
Matters are discussed amongst the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud
Identifying and assessing the design and effectiveness of controls that management have in place to prevent and detect fraud
Detecting and responding to the risks of fraud following discussions with management and enquiring as to whether management have knowledge of any actual, suspected or alleged fraud;
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.
The profit and loss account has been prepared on the basis that all operations are continuing operations.
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 £292,000 (2023 - £0 profit).
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
Westgrove Group (Holdings) Limited (“the company”) is a private limited company and incorporated in England and Wales. The registered office is 940 Lakeside Drive, Centre Park, Warrington, WA1 1QY.
The group consists of Westgrove Group (Holdings) Limited and all of its subsidiaries.
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 £1.
The financial statements have been prepared under the historical cost convention, modified to include land and buildings at fair value. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The consolidated group financial statements consist of the financial statements of the parent company Westgrove Group (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 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
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.
The directors recognise following Brexit there has been an increasing difficulty to recruit directly employed staff and therefore the group continues to be more reliant on subcontract labour. The group is committed to paying the living wage, however this along with price increases of materials and consumables is having an adverse effect on the margins achievable. The directors are continually monitoring the rising costs and are satisfied that they are taking all steps necessary to minimise cost increases.
At the year-end the group has net current liabilities of £1,460,970 (2023: £1,712,941). The directors have considered the future profitability of the group and its ability to continue as a going concern, and have prepared profit and cash flow forecasts for the period to 31 December 2026. Based on these projections and the items above, the directors are satisfied that, for the foreseeable future, the group can meet its projected working capital requirements. The group has access to some alternative finance facilities should this be required. Consequently, the financial statements have been prepared on a going concern basis.
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.
Revenue from contracts for the provision of cleaning, security and additional support services is recognised in the period that those services are provided.
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.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
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.
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, 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.
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.
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.
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.
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.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
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.
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred taxation is recognised in respect of all timing differences which have originated but not reversed at the balance sheet date. Timing differences are differences between taxable profits and the results as stated in the financial statements which arise from the inclusion of gains and losses in tax assessments in periods different from those in which they are recognised for tax purposes.
A net deferred tax asset is regarded as recoverable and therefore recognised only when it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of underlying timing differences can be deducted.
Deferred tax is measured at the average tax rates which are expected to apply in the periods in which the timing differences are expected to reverse, based on tax rates and laws which have been enacted or substantively enacted by the balance sheet date. Deferred tax is measured on a non-discounted basis.
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.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
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.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Tangible fixed assets includes freehold property that is recognised at fair value. The freehold property is professionally valued periodically. In the interim the directors assess the fair value of the freehold property to consider whether has been a change in value.
During the period a valuation of £1,200,000 (2023: £1,036,000) was calculated based on accounting policies applied.
Refer to note 12, showing the tangible fixed assets carrying values impacted by the key accounting estimate.
Trade debtors are stated net of the allowance for the impairment of bad and doubtful debts 2024: £nil (2023: £9,750). Debtor balances are provided against when the directors believe the debt is potentially irrecoverable based on their detailed experience of the customer and specific matters of the case.
An analysis of the group's turnover is as follows:
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
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:
In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:
The carrying value of land and buildings comprises:
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Land and buildings with a carrying amount of £1,200,000 were revalued at on 17 January 2025 by Morgan Williams Commercial LLP, independent valuers not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties. The directors believe £1,200,000 represents a fair value as at 31 December 2024. Had the property not been revalued it would have been included at the following historical cost net book value of £780,390 (2023: £806,634).
Details of the company's subsidiaries at 31 December 2024 are as follows:
Registered office addresses (all UK unless otherwise indicated):
Amounts owed by group undertakings are unsecured, interest free and repayable on demand.
Other creditors includes £1,559,221 (2023: £2,151,678) in respect of an invoice discounting facility, which is secured by a fixed charge over the book debts of the company.
Other creditors includes £227,939 (2023: £141,319), being net obligations under finance lease and hire purchase contracts which are secured by fixed charges on the assets concerned.
Other creditors includes £456,162 (2023: £293,567) in respect of net obligations under finance lease and hire purchase contracts, which are secured by fixed charges on the assets concerned.
Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3-5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
The deferred tax liability set out above is expected to reverse and relates to accelerated capital allowances that are expected to mature.
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.
Called up share represents the nominal value of the shares issued. All shares carry no fixed right to income. Ordinary A and ordinary B shares hold full voting rights.
Share premium account represents the amount of money received for shares above their nominal value.
The revaluation reserve relates to the revaluation of freehold properties as set out in note 12, and is not distributable. The increase in the revaluation reserve was £173,221 (2023: £nil) which was decreased by related deferred tax of £37,500 (2023: £nil) (see note 20).
The profit and loss account represents cumulative profits and losses net of dividends paid and other adjustments.
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
The group has taken advantage of the exemption available in Financial Reporting Standard (FRS) 102 "Related party disclosures" Section 33.1A whereby it has not disclosed transactions with the ultimate parent company or any wholly owned subsidiary undertaking of the group.
During the year sales were made by Westgrove Cleaning Services Limited to Westgrove Technical Services Ltd a company with common directorship, of £417,380 (2023: £362,005) and purchases of £nil (2023: £9,660). At the year end there was a balance of £36,659 (2023: £180,926 due from Westgrove Technical Services Ltd.
During the year sales were made by Westgrove Support Services Limited to Westgrove Technical Services Ltd a company with common directorship, of £1,310,976 (2023: £1,176,183), purchases of £1,652,697 (2023: £1,497,153) and a management charge of £nil (2023: £1,666. At the year end there was a balance of £239,918 (2023: £47,210) due to Westgrove Technical Services Ltd.
Company
The company has taken advantage of the exemption available in Financial Reporting Standard (FRS) 102 "Related party disclosures" Section 33.1A whereby it has not disclosed transactions with the ultimate parent company or any wholly owned subsidiary undertaking of the group.
Advances or credits have been granted by the group to its directors as follows:
During 2022, assets costing £286,134 were to be transferred from a fellow group company. However, this transfer was not recorded. Additionally, the company revalued its assets in the prior year by £330,000, which incorrectly included the value of these unrecorded assets. A prior year adjustment has been made to correctly account for these assets by reclassifying £286,134 from property revaluation to property additions. This adjustment also reduces the revaluation of tangible fixed assets recognised in other comprehensive income by £286,134. As a result, the revaluation reserve at 31 December 2022 has decreased from £371,401 to £85,267.
Furthermore, the corresponding liability of £286,134 due to the fellow group company was omitted in the prior year. This has now been recognised, increasing prior year creditors and reducing net assets at 31 December 2022 from £466,962 to £180,828.
The adjustments have no impact on net profit.
During the year, it has been identified that no deferred tax provision has been calculated on the revaluation of land and buildings to fair value. An adjustment has been posted to recognise the cumulative deferred tax provision brought forward from the last revaluation recognised in 2022.
This adjustment has no impact over net profit.