Company registration number 09214794 (England and Wales)
WESTGROVE GROUP (HOLDINGS) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
WESTGROVE GROUP (HOLDINGS) LIMITED
COMPANY INFORMATION
Directors
S M Whittle
S P Fives
Company number
09214794
Registered office
940 Lakeside Drive
Centre Park
Warrington
Cheshire
WA1 1QY
Auditor
Sumer Auditco Limited
Fourth Floor
Unit 5B, The Parklands
Bolton
BL6 4SD
Bankers
Yorkshire Bank
34 Princes Street
Stockport
Cheshire
SK1 1RE
WESTGROVE GROUP (HOLDINGS) LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 35
WESTGROVE GROUP (HOLDINGS) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

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

Review of the business

The 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.

 

 

WESTGROVE GROUP (HOLDINGS) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Principal risks and uncertainties

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.

Principal risks and uncertainties (continued)

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.

Key performance indicators

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

Future developments

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.

WESTGROVE GROUP (HOLDINGS) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -

On behalf of the board

S M Whittle
Director
9 July 2025
WESTGROVE GROUP (HOLDINGS) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -

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

Principal activities

The principal activity continued to be that of the provision of cleaning and support services.

Results and dividends

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.

Directors

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

S M Whittle
S P Fives
Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

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.

Future developments

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.

Auditor

The auditor, Sumer Auditco Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

WESTGROVE GROUP (HOLDINGS) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 5 -
Statement of directors' responsibilities

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

 

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

 

 

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

Statement of disclosure to auditor

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

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
S M Whittle
Director
9 July 2025
WESTGROVE GROUP (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WESTGROVE GROUP (HOLDINGS) LIMITED
- 6 -
Opinion

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).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

 

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

 

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

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

WESTGROVE GROUP (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WESTGROVE GROUP (HOLDINGS) LIMITED
- 7 -
Matters on which we are required to report by exception

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

 

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

WESTGROVE GROUP (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WESTGROVE GROUP (HOLDINGS) LIMITED
- 8 -

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:

 

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.

WESTGROVE GROUP (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WESTGROVE GROUP (HOLDINGS) LIMITED
- 9 -
Helen Mills (Senior Statutory Auditor)
For and on behalf of Sumer Auditco Limited, Statutory Auditor
Fourth Floor
Unit 5B, The Parklands
Bolton
BL6 4SD
9 July 2025
WESTGROVE GROUP (HOLDINGS) LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
2024
2023
as restated
Notes
£
£
Turnover
3
30,890,575
27,841,328
Cost of sales
(27,378,803)
(24,748,185)
Gross profit
3,511,772
3,093,143
Administrative expenses
(2,753,456)
(2,568,764)
Operating profit
4
758,316
524,379
Interest receivable and similar income
7
25,233
16,448
Interest payable and similar expenses
8
(231,461)
(196,195)
Profit before taxation
552,088
344,632
Tax on profit
9
(194,878)
(154,322)
Profit for the financial year
23
357,210
190,310
Other comprehensive income
Revaluation of tangible fixed assets
173,221
-
0
Tax relating to other comprehensive income
(37,500)
-
0
Total comprehensive income for the year
492,931
190,310
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.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

WESTGROVE GROUP (HOLDINGS) LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 11 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Goodwill
11
-
0
195,831
Tangible assets
12
3,001,510
2,614,289
3,001,510
2,810,120
Current assets
Stocks
15
246,472
277,732
Debtors
16
5,473,094
4,798,690
Cash at bank and in hand
73,249
115,457
5,792,815
5,191,879
Creditors: amounts falling due within one year
17
(7,253,785)
(6,904,820)
Net current liabilities
(1,460,970)
(1,712,941)
Total assets less current liabilities
1,540,540
1,097,179
Creditors: amounts falling due after more than one year
18
(456,162)
(293,567)
Provisions for liabilities
Deferred tax liability
20
474,149
394,314
(474,149)
(394,314)
Net assets
610,229
409,298
Capital and reserves
Called up share capital
22
15,794
15,794
Share premium account
23
5,980
5,980
Revaluation reserve
23
159,113
23,392
Profit and loss reserves
23
429,342
364,132
Total equity
610,229
409,298

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 9 July 2025 and are signed on its behalf by:
09 July 2025
S M Whittle
Director
Company registration number 09214794 (England and Wales)
WESTGROVE GROUP (HOLDINGS) LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2024
31 December 2024
- 12 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Investments
13
15,003
15,003
Current assets
Debtors
16
6,771
6,771
Net current assets
6,771
6,771
Net assets
21,774
21,774
Capital and reserves
Called up share capital
22
15,794
15,794
Share premium account
23
5,980
5,980
Total equity
21,774
21,774

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.

The financial statements were approved by the board of directors and authorised for issue on 9 July 2025 and are signed on its behalf by:
09 July 2025
S M Whittle
Director
Company registration number 09214794 (England and Wales)
WESTGROVE GROUP (HOLDINGS) LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 13 -
Share capital
Share premium account
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
As restated for the period ended 31 December 2023:
Balance at 1 January 2023
15,794
5,980
117,523
172,198
311,495
Tax relating to other comprehensive income
-
-
(92,507)
-
(92,507)
Balance at 1 January 2023
15,794
5,980
25,016
172,198
218,988
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
-
190,310
190,310
Transfers
-
-
(1,624)
1,624
-
Balance at 31 December 2023
15,794
5,980
23,392
364,132
409,298
Year ended 31 December 2024:
Profit for the year
-
-
-
357,210
357,210
Other comprehensive income:
Revaluation of tangible fixed assets
-
-
173,221
-
173,221
Tax relating to other comprehensive income
-
-
(37,500)
-
0
(37,500)
Total comprehensive income
-
-
135,721
357,210
492,931
Dividends
10
-
-
-
(292,000)
(292,000)
Balance at 31 December 2024
15,794
5,980
159,113
429,342
610,229
WESTGROVE GROUP (HOLDINGS) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 14 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
As restated for the period ended 31 December 2023:
Balance at 1 January 2023
15,794
5,980
-
0
21,774
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
-
-
0
Balance at 31 December 2023
15,794
5,980
-
0
21,774
Year ended 31 December 2024:
Profit and total comprehensive income
-
-
292,000
292,000
Dividends
10
-
-
(292,000)
(292,000)
Balance at 31 December 2024
15,794
5,980
-
0
21,774
WESTGROVE GROUP (HOLDINGS) LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 15 -
2024
2023
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
1,047,903
801,722
Interest paid
(231,461)
(196,195)
Income taxes paid
(265,389)
(26,423)
Net cash inflow from operating activities
551,053
579,104
Investing activities
Purchase of tangible fixed assets
(137,169)
(143,747)
Proceeds from disposal of tangible fixed assets
9,431
212
Repayment of loans
(52,666)
(394,634)
Interest received
25,233
16,448
Net cash used in investing activities
(155,171)
(521,721)
Financing activities
Payment of finance leases obligations
(146,090)
(125,179)
Dividends paid to equity shareholders
(292,000)
-
0
Net cash used in financing activities
(438,090)
(125,179)
Net decrease in cash and cash equivalents
(42,208)
(67,796)
Cash and cash equivalents at beginning of year
115,457
183,253
Cash and cash equivalents at end of year
73,249
115,457
WESTGROVE GROUP (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 16 -
1
Accounting policies
Company information

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.

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 £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:

 

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.

1.3
Basis of consolidation

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.

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

 

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.

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.

Revenue from contracts for the provision of cleaning, security and additional support services is recognised in the period that those services are provided.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

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

1.7
Tangible fixed assets

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

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
2% Straight Line
Leasehold improvements
15% Reducing Balance
Plant and machinery
15% Reducing Balance
Fixtures, fittings & equipment
15% Reducing Balance
Computer equipment
15% Reducing Balance
Motor vehicles
25% Reducing Balance
WESTGROVE GROUP (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 18 -

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

1.8
Fixed asset investments

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

 

In the parent company financial statements, investments in subsidiaries 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.

1.9
Impairment of fixed assets

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

 

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

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

 

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

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

1.10
Stocks

Stocks are stated at cost less any provision for impairment.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.11
Cash and cash equivalents

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

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

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

 

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

 

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

Basic financial assets

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

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.

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

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

 

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

 

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

Derecognition of financial liabilities

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

1.13
Equity instruments

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

1.14
Taxation

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

Current tax

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

Deferred tax

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.

WESTGROVE GROUP (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 21 -
1.15
Employee benefits

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

 

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

 

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

1.16
Retirement benefits

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

1.17
Leases

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

 

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

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

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.

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

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

Freehold property

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.

Impairment of trade debtors

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.

3
Turnover and other revenue

An analysis of the group's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Security
17,843,118
16,559,661
Cleaning
11,988,967
10,207,223
Other
1,058,490
1,074,444
30,890,575
27,841,328
2024
2023
£
£
Other revenue
Interest income
25,233
16,448
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging:
Fees payable to the group's auditor for the audit of the group's financial statements
5,500
4,000
Depreciation of owned tangible fixed assets
193,322
209,310
Depreciation of tangible fixed assets held under finance leases
109,978
60,080
Loss on disposal of tangible fixed assets
5,743
2,224
Amortisation of intangible assets
195,831
195,830
Operating lease charges
38,839
30,240
WESTGROVE GROUP (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 23 -
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
Direct Staff
878
837
2
2
Admin Staff
36
36
-
-
Total
914
873
2
2

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
22,250,898
19,958,409
-
0
-
0
Social security costs
2,210,119
1,741,409
-
-
Pension costs
510,398
424,873
-
0
-
0
24,971,415
22,124,691
-
0
-
0
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
24,750
22,333
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
25,233
16,448
8
Interest payable and similar expenses
2024
2023
£
£
Interest on finance leases and hire purchase contracts
57,083
33,887
Other interest
174,378
162,308
Total finance costs
231,461
196,195
WESTGROVE GROUP (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 24 -
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
152,543
136,341
Deferred tax
Origination and reversal of timing differences
42,335
17,981
Total tax charge
194,878
154,322

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
552,088
344,632
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
138,022
86,158
Tax effect of expenses that are not deductible in determining taxable profit
4,914
3,539
Effect of change in corporation tax rate
-
(8,829)
Double tax relief
-
0
(1,079)
Group relief
-
0
21,847
Permanent capital allowances in excess of depreciation
971
-
Depreciation on assets not qualifying for tax allowances
-
3,729
Amortisation on assets not qualifying for tax allowances
48,587
48,957
Movement in pension provison
2,384
-
0
Taxation charge
194,878
154,322

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:

2024
2023
£
£
Deferred tax arising on:
Revaluation of property
37,500
-
10
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
292,000
-
WESTGROVE GROUP (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 25 -
11
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 January 2024 and 31 December 2024
1,982,616
Amortisation and impairment
At 1 January 2024
1,786,785
Amortisation charged for the year
195,831
At 31 December 2024
1,982,616
Carrying amount
At 31 December 2024
-
0
At 31 December 2023
195,831
The company had no intangible fixed assets at 31 December 2024 or 31 December 2023.
WESTGROVE GROUP (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 26 -
12
Tangible fixed assets
Group
Freehold property
Leasehold improvements
Plant and machinery
Fixtures, fittings & equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
£
Cost or valuation
At 1 January 2024
1,050,000
33,671
2,672,308
75,534
192,941
224,474
4,248,928
Additions
-
0
-
0
223,589
10,373
24,933
273,579
532,474
Disposals
-
0
-
0
-
0
(15,617)
(11,317)
(19,993)
(46,927)
Revaluation
150,000
-
0
-
0
-
0
-
0
-
0
150,000
At 31 December 2024
1,200,000
33,671
2,895,897
70,290
206,557
478,060
4,884,475
Depreciation and impairment
At 1 January 2024
14,000
24,748
1,405,880
19,030
85,303
85,678
1,634,639
Depreciation charged in the year
9,221
1,073
214,932
11,174
18,435
48,465
303,300
Eliminated in respect of disposals
-
0
-
0
-
0
(12,164)
(8,936)
(10,653)
(31,753)
Revaluation
(23,221)
-
0
-
0
-
0
-
0
-
0
(23,221)
At 31 December 2024
-
0
25,821
1,620,812
18,040
94,802
123,490
1,882,965
Carrying amount
At 31 December 2024
1,200,000
7,850
1,275,085
52,250
111,755
354,570
3,001,510
At 31 December 2023
1,036,000
8,923
1,266,428
56,504
107,638
138,796
2,614,289
The company had no tangible fixed assets at 31 December 2024 or 31 December 2023.
WESTGROVE GROUP (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 27 -

The carrying value of land and buildings comprises:

Group
Company
2024
2023
2024
2023
£
£
£
£
Freehold
1,200,000
1,036,000
-
0
-
0
Short leasehold
7,850
8,923
-
0
-
0
1,207,850
1,044,923
-
-

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2024
2023
2024
2023
£
£
£
£
Plant and machinery
512,567
431,142
-
0
-
0
Fixtures, fittings & equipment
7,287
8,573
-
0
-
0
Motor vehicles
457,970
86,612
-
0
-
0
977,824
526,327
-
-

 

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).

2024
2023
£
£
Group
Cost
966,107
966,107
Accumulated depreciation
(185,717)
(159,473)
Carrying value
780,390
806,634
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
15,003
15,003
WESTGROVE GROUP (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
13
Fixed asset investments
(Continued)
- 28 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2024 and 31 December 2024
15,003
Carrying amount
At 31 December 2024
15,003
At 31 December 2023
15,003
14
Subsidiaries

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

Name of undertaking
Address
Class of
% Held
shares held
Direct
Westgrove Cleaning Services Ltd
1
Ordinary
100.00
Westgrove Support Services Limited
1
Ordinary
100.00

Registered office addresses (all UK unless otherwise indicated):

1
940 Lakeside Drive, Centre Park, Warrington, Cheshire, WA1 1QY
15
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
246,472
277,732
-
-
16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,032,570
2,636,995
-
0
-
0
Corporation tax recoverable
444,946
367,018
-
0
-
0
Amounts owed by group undertakings
-
-
6,771
6,771
Other debtors
1,403,571
1,189,564
-
0
-
0
Prepayments and accrued income
592,007
605,113
-
0
-
0
5,473,094
4,798,690
6,771
6,771

Amounts owed by group undertakings are unsecured, interest free and repayable on demand.

WESTGROVE GROUP (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 29 -
17
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance leases
19
227,939
141,319
-
0
-
0
Trade creditors
1,156,640
1,159,446
-
0
-
0
Corporation tax payable
421,526
456,444
-
0
-
0
Other taxation and social security
1,223,125
1,112,688
-
-
Other creditors
2,036,154
2,301,717
-
0
-
0
Accruals and deferred income
2,188,401
1,733,206
-
0
-
0
7,253,785
6,904,820
-
0
-
0

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.

18
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance leases
19
456,162
293,567
-
0
-
0

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.

19
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
227,939
141,319
-
0
-
0
In two to five years
456,162
293,567
-
0
-
0
684,101
434,886
-
-

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.

WESTGROVE GROUP (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 30 -
20
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
338,342
318,111
Revaluations
130,007
92,507
Retirement benefit obligations
5,800
(16,304)
474,149
394,314
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 January 2024
394,314
-
Charge to profit or loss
42,335
-
Charge to other comprehensive income
37,500
-
Liability at 31 December 2024
474,149
-

The deferred tax liability set out above is expected to reverse and relates to accelerated capital allowances that are expected to mature.

21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
510,398
424,873

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

22
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary Shares of £1 each
15,004
15,004
15,004
15,004
B Ordinary Shares of £1 each
790
790
790
790
15,794
15,794
15,794
15,794
WESTGROVE GROUP (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
22
Share capital
(Continued)
- 31 -

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.

23
Reserves
Share premium

Share premium account represents the amount of money received for shares above their nominal value.

Revaluation reserve

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).

Profit and loss reserves

The profit and loss account represents cumulative profits and losses net of dividends paid and other adjustments.

24
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
7,178
10,958
-
-
Between two and five years
-
7,178
-
-
7,178
18,136
-
-
WESTGROVE GROUP (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 32 -
25
Related party transactions

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.

 

26
Directors' transactions

Advances or credits have been granted by the group to its directors as follows:

Description
% Rate
Opening balance
Amounts advanced
Interest charged
Amounts repaid
Closing balance
£
£
£
£
£
Directors' Loan
2.25
299,938
92,961
7,389
(71,124)
329,164
Directors' Loan
2.25
501,020
154,029
11,660
(142,249)
524,460
800,958
246,990
19,049
(213,373)
853,624

 

WESTGROVE GROUP (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 33 -
27
Cash generated from group operations
2024
2023
£
£
Profit after taxation
357,210
190,310
Adjustments for:
Taxation charged
194,878
154,322
Finance costs
231,461
196,195
Investment income
(25,233)
(16,448)
Loss on disposal of tangible fixed assets
5,743
2,224
Amortisation and impairment of intangible assets
195,831
195,830
Depreciation and impairment of tangible fixed assets
303,300
269,390
Decrease in provisions
-
(92,507)
Movements in working capital:
Decrease/(increase) in stocks
31,260
(2,365)
(Increase)/decrease in debtors
(543,810)
625,603
Increase/(decrease) in creditors
297,263
(720,832)
Cash generated from operations
1,047,903
801,722
28
Analysis of changes in net debt - group
1 January 2024
Cash flows
New finance leases
31 December 2024
£
£
£
£
Cash at bank and in hand
115,457
(42,208)
-
73,249
Obligations under finance leases
(434,886)
146,090
(395,305)
(684,101)
(319,429)
103,882
(395,305)
(610,852)
WESTGROVE GROUP (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 34 -
29
Prior period adjustment
Reconciliation of changes in equity - group
1 January
31 December
2023
2023
£
£
Adjustments to prior year
Deferred tax on property revaluation
-
(92,507)
Transfer of fixed assets
(188,007)
-
Total adjustments
(188,007)
(92,507)
Equity as previously reported
499,502
501,805
Equity as adjusted
311,495
409,298
Analysis of the effect upon equity
Revaluation reserve
(286,134)
(92,507)
Profit and loss reserves
98,127
-
(188,007)
(92,507)
Reconciliation of changes in profit for the previous financial period
2023
£
Adjustments to prior year
Total adjustments
-
Profit as previously reported
190,310
Profit as adjusted
190,310
Reconciliation of changes in equity - company
The prior period adjustments do not give rise to any effect upon equity.
Reconciliation of changes in profit for the previous financial period
2023
£
Adjustments to prior year
Total adjustments
-
Profit as previously reported
-
Profit as adjusted
-
WESTGROVE GROUP (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
29
Prior period adjustment
(Continued)
- 35 -
Notes to reconciliation
Transfer of fixed asset additions

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.

Deferred tax on property revaluation

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.

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