Company Registration No. 10084536 (England and Wales)
Comwood Holdings Limited
Annual report and
group financial statements
for the year ended 31 August 2024
Comwood Holdings Limited
Company information
Directors
Bryan Burletson
Richard Burletson
(Appointed 14 January 2025)
Secretary
Prudence Burletson
Company number
10084536
Registered office
C/O Saffery LLP
St John's Court
Easton Street
High Wycombe
HP11 1JX
Independent auditor
Saffery LLP
St John's Court
Easton Street
High Wycombe
HP11 1JX
Comwood Holdings Limited
Contents
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Group statement of comprehensive income
9
Group statement of financial position
10
Company statement of financial position
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 28
Comwood Holdings Limited
Strategic report
For the year ended 31 August 2024
1

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

Review of the business

The Group provides initial accommodation and related services to individuals and families seeking asylum prior to countrywide dispersal in keeping with the terms of a subcontractor agreement that runs until September 2029.

 

Initial accommodation demand remained high throughout the financial year ended 31 August 2024. Political and economic upheaval in numerous countries has continued to drive a high number of asylum applications by those seeking sanctuary within the United Kingdom.

 

Accordingly, occupancy levels across the portfolio of properties operated by the Group remain high and ancillary accommodation has been utilised but only when Home Office Standards can be guaranteed.

 

Turnover derived from the provision of initial accommodation services to those seeking asylum has increased by £360,404, or 3% compared with the prior year. This is as a consequence of the inflation uplift provision clause which has been applied in line with the terms of the underlying contract.

 

Operational efficiency is key to the ongoing financial stability of the company. Food and energy price inflation have made it necessary to find sensible economies across the business but only in instances where the services provided to our client group will not be compromised.

Principal risks and uncertainties

The Group’s strategic aim is to identify and address risks while simultaneously seeking to maximise any opportunities that arise to improve our Estate and therefore the service we provide to our client group.

The Group is dependant in part on Government legislation and policy surrounding the asylum process. A shift in Government policy could have a significant impact and the Group continues to maintain strong links with different potential Client Groups such as Borough Councils and private accommodation providers.

The directors closely monitor the cash flow and liquidity position of the company, ensuring that adequate cash reserves are maintained to enable to Group to change strategy as required. Given the nature of the contract, the Group's cash flow and liquidity positions are assured through to 2029.

Credit risk is managed through proportionate credit control procedures. A significant proportion of debtors relate to the subcontractor agreement, under which invoices are settled in line with pre-agreed terms.

Development and performance

The financial position and performance of the company is set out in the financial statements and the notes that follow.

 

As previously noted, turnover derived from the provision of initial accommodation and associated services has increased by 3% compared with the prior year. This increase predominantly reflects inflationary pressures.

 

The net asset position of the Group has increased to £6,651,645 (2023 - £6,158,022).

Key performance indicators

The Group's key performance indicators are those tied to operating efficiency. These are operating profit and occupancy.

 

Group operating profit for the year was £2,280,071 (2023 - £2,095,890), an increase of 8.8% year on year.

 

Comwood Holdings Limited
Strategic report (continued)
For the year ended 31 August 2024
2
Other information and explanations

Subsequent to the financial year end, the Group capitalised on the opportunity to acquire a hotel, and secure the property for continued use in the Group's operations. Further detail regarding the acquisition are presented in the notes to the financial statements that follow.

On behalf of the board

Bryan Burletson
Director
22 July 2025
Comwood Holdings Limited
Directors' report
For the year ended 31 August 2024
3

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

Principal activities

The principal activity of the group continued to be that of the provision of initial accommodation services to asylum seekers.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £1,139,864. 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:

Lawrence Alkin
(Deceased 5 February 2025)
Bryan Burletson
Richard Burletson
(Appointed 14 January 2025)
Auditor

Saffery LLP were appointed as auditor to the company and have expressed their willingness to continue in office.

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.

Comwood Holdings Limited
Directors' report (continued)
For the year ended 31 August 2024
4
Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Bryan Burletson
Director
22 July 2025
Comwood Holdings Limited
Independent auditor's report
To the members of Comwood Holdings Limited
5
Opinion

We have audited the financial statements of Comwood Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 August 2024 which comprise the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, 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 directors are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. 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.

Comwood Holdings Limited
Independent auditor's report (continued)
To the members of Comwood Holdings Limited
6

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

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

 

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

 

Responsibilities of directors

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

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.

Comwood Holdings Limited
Independent auditor's report (continued)
To the members of Comwood Holdings Limited
7

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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

 

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the group and parent company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the group and parent company by discussions with directors and by updating our understanding of the sector in which the group and parent company operates.

 

Laws and regulations of direct significance in the context of the group and parent company include The Companies Act 2006 and UK Tax legislation.

 

Audit response to risks identified

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of group and parent company financial statement disclosures. We reviewed the parent company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the parent company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

As group auditors, our assessment of matters relating to non-compliance with laws or regulations and fraud differed at group and component level according to their particular circumstances. Our communications included a request to identify instances of non-compliance with laws and regulations and fraud that could give rise to a material misstatement of the group financial statements in addition to our risk assessment.

 

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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.

Other matters which we are required to address

The financial statements of the group, in respect of the year ended 31 August 2024, are the first that are subject to audit. The prior period financial statements were not audited.

Comwood Holdings Limited
Independent auditor's report (continued)
To the members of Comwood Holdings Limited
8

Use of our report

This report is made solely to the parent 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 parent company's members those matters we are required to state to them in an auditors 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 parent company and the parent company's members as a body, for our audit work, for this report, or for the opinions we have formed.

 

Andrew Watkinson
For and on behalf of
22 July 2025
Saffery LLP
Statutory Auditors
St John's Court
Easton Street
High Wycombe
HP11 1JX
Comwood Holdings Limited
Group statement of comprehensive income
For the year ended 31 August 2024
9
2024
2023
Notes
£
£
Turnover
2
12,366,994
12,006,589
Cost of sales
(6,403,439)
(6,311,836)
Gross profit
5,963,555
5,694,753
Administrative expenses
(3,683,484)
(3,598,863)
Operating profit
3
2,280,071
2,095,890
Interest receivable and similar income
6
21
549
Interest payable and similar expenses
7
(1,166)
-
0
Profit before taxation
2,278,926
2,096,439
Tax on profit
8
(620,471)
(468,208)
Profit for the financial year
1,658,455
1,628,231
Profit for the financial year is attributable to:
- Owners of the parent company
1,619,018
1,586,531
- Non-controlling interests
39,437
41,700
1,658,455
1,628,231
Total comprehensive income for the year is attributable to:
- Owners of the parent company
1,619,018
1,586,531
- Non-controlling interests
39,437
41,700
1,658,455
1,628,231
Comwood Holdings Limited
Group statement of financial position
As at 31 August 2024
10
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
3,579,393
3,707,662
Current assets
Debtors
13
3,123,505
2,920,328
Cash at bank and in hand
2,554,990
1,949,164
5,678,495
4,869,492
Creditors: amounts falling due within one year
14
(2,549,171)
(2,373,385)
Net current assets
3,129,324
2,496,107
Total assets less current liabilities
6,708,717
6,203,769
Provisions for liabilities
Deferred tax liability
15
57,072
45,747
(57,072)
(45,747)
Net assets
6,651,645
6,158,022
Capital and reserves
Called up share capital
17
2,008
2,008
Profit and loss reserves
6,625,339
6,146,185
Equity attributable to owners of the parent company
6,627,347
6,148,193
Non-controlling interests
24,298
9,829
6,651,645
6,158,022

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 22 July 2025 and are signed on its behalf by:
22 July 2025
Bryan Burletson
Director
Company registration number 10084536 (England and Wales)
Comwood Holdings Limited
Company statement of financial position
As at 31 August 2024
31 August 2024
11
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
2,903,640
2,903,640
Investments
11
1,104
1,104
2,904,744
2,904,744
Current assets
Debtors
13
-
0
480
Cash at bank and in hand
1,536,018
1,116,863
1,536,018
1,117,343
Creditors: amounts falling due within one year
14
(1,398,246)
(1,435,934)
Net current assets/(liabilities)
137,772
(318,591)
Net assets
3,042,516
2,586,153
Capital and reserves
Called up share capital
17
2,008
2,008
Profit and loss reserves
3,040,508
2,584,145
Total equity
3,042,516
2,586,153

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £1,596,227 (2023 - £661,773 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 22 July 2025 and are signed on its behalf by:
22 July 2025
Bryan Burletson
Director
Company registration number 10084536 (England and Wales)
Comwood Holdings Limited
Group statement of changes in equity
For the year ended 31 August 2024
12
Share capital
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
Balance at 1 September 2022
2,008
5,534,612
5,536,620
17,622
5,554,242
Year ended 31 August 2023:
Profit and total comprehensive income
-
1,586,531
1,586,531
41,700
1,628,231
Dividends
9
-
(974,958)
(974,958)
(49,493)
(1,024,451)
Balance at 31 August 2023
2,008
6,146,185
6,148,193
9,829
6,158,022
Year ended 31 August 2024:
Profit and total comprehensive income
-
1,619,018
1,619,018
39,437
1,658,455
Dividends
9
-
(1,139,864)
(1,139,864)
(24,968)
(1,164,832)
Balance at 31 August 2024
2,008
6,625,339
6,627,347
24,298
6,651,645
Comwood Holdings Limited
Company statement of changes in equity
For the year ended 31 August 2024
13
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 September 2022
2,008
2,897,330
2,899,338
Year ended 31 August 2023:
Profit and total comprehensive income for the year
-
661,773
661,773
Dividends
9
-
(974,958)
(974,958)
Balance at 31 August 2023
2,008
2,584,145
2,586,153
Year ended 31 August 2024:
Profit and total comprehensive income
-
1,596,227
1,596,227
Dividends
9
-
(1,139,864)
(1,139,864)
Balance at 31 August 2024
2,008
3,040,508
3,042,516
Comwood Holdings Limited
Group statement of cash flows
For the year ended 31 August 2024
14
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
23
2,392,652
1,860,588
Interest paid
(1,166)
-
0
Income taxes paid
(548,137)
(429,791)
Net cash inflow from operating activities
1,843,349
1,430,797
Investing activities
Purchase of tangible fixed assets
(72,712)
(109,254)
Repayment of loans
-
14,572
Interest received
21
549
Net cash used in investing activities
(72,691)
(94,133)
Financing activities
Dividends paid to equity shareholders
(1,139,864)
(974,958)
Dividends paid to non-controlling interests
(24,968)
(49,493)
Net cash used in financing activities
(1,164,832)
(1,024,451)
Net increase in cash and cash equivalents
605,826
312,213
Cash and cash equivalents at beginning of year
1,949,164
1,636,951
Cash and cash equivalents at end of year
2,554,990
1,949,164
Comwood Holdings Limited
Notes to the group financial statements
For the year ended 31 August 2024
15
1
Accounting policies
Company information

Comwood Holdings Limited (“the company”) is a private company limited by shares incorporated in England and Wales. The registered office is C/O Saffery LLP, St John's Court, Easton Street, High Wycombe, HP11 1JX.

 

The group consists of Comwood Holdings Limited and all of its subsidiaries.

1.1
Accounting convention

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

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

These group and company financial statements for the year ended 31 August 2024 are the first financial statements of Comwood Holdings Limited and the group prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The date of transition to FRS 102 was 1 September 2023. The reported financial position and financial performance for the previous period are not affected by the transition to FRS 102.

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.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

Comwood Holdings Limited
Notes to the group financial statements (continued)
For the year ended 31 August 2024
1
Accounting policies (continued)
16
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Comwood Holdings Limited together with all entities controlled by the parent company (its subsidiaries).

 

All financial statements are made up to 31 August 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes.

1.6
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 land and buildings
No depreciation is charged on freehold land and buildings
Plant and equipment
25% straight line
Mobilisation costs
Over the contract term, 10 years

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 income statement.

1.7
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure.

 

Property rented to a group entity is accounted as tangible fixed assets.

1.8
Fixed asset investments

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

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

Comwood Holdings Limited
Notes to the group financial statements (continued)
For the year ended 31 August 2024
1
Accounting policies (continued)
17
1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible 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
Cash and cash equivalents

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

1.11
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 statement of financial position 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, 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.

Comwood Holdings Limited
Notes to the group financial statements (continued)
For the year ended 31 August 2024
1
Accounting policies (continued)
18
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.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies 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.

1.12
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.

1.13
Taxation

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

Comwood Holdings Limited
Notes to the group financial statements (continued)
For the year ended 31 August 2024
1
Accounting policies (continued)
19
Current tax

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

Deferred tax

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

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.14
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.

1.15
Retirement benefits

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

1.16
Leases

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

Comwood Holdings Limited
Notes to the group financial statements (continued)
For the year ended 31 August 2024
20
2
Turnover and other revenue

All turnover is derived from activities undertaken in the UK.

2024
2023
£
£
Turnover analysed by class of business
Accomodation services
12,366,994
12,006,589
2024
2023
£
£
Other revenue
Interest income
21
549
70,000
70,000
3
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
12,500
-
Depreciation of owned tangible fixed assets
200,981
191,669
Operating lease charges
1,760,065
1,771,313
4
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
45
46
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
1,586,455
1,495,187
-
0
-
0
Social security costs
164,156
147,820
-
-
Pension costs
72,687
72,129
-
0
-
0
1,823,298
1,715,136
-
0
-
0
Comwood Holdings Limited
Notes to the group financial statements (continued)
For the year ended 31 August 2024
21
5
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
26,960
25,778
6
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
21
549
7
Interest payable and similar expenses
2024
2023
£
£
Other interest
1,166
-
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
609,146
458,844
Deferred tax
Origination and reversal of timing differences
11,325
9,364
Total tax charge
620,471
468,208

On the 31 March 2023, the UK rate of corporation tax increased from 19% to 25%. Accordingly, the effective rate of corporation tax for the financial year ended 31 August 2023 was a blended rate of 22%, whereas for the financial year ended 31 August 2024, the corporation tax rate of 25% was applicable for the full financial year.

Comwood Holdings Limited
Notes to the group financial statements (continued)
For the year ended 31 August 2024
8
Taxation (continued)
22

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
2,278,926
2,096,439
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.00%)
569,732
461,217
Tax effect of expenses that are not deductible in determining taxable profit
335
28
Adjustments in respect of prior years
-
0
(1,689)
Effect of change in corporation tax rate
-
(8,476)
Deferred tax adjustments in respect of prior years
50,404
17,128
Taxation charge
620,471
468,208
9
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Interim paid
1,139,864
974,958
10
Tangible fixed assets
Group
Freehold land and buildings
Plant and equipment
Mobilisation costs
Total
£
£
£
£
Cost
At 1 September 2023
2,903,640
582,820
995,147
4,481,607
Additions
-
0
72,712
-
0
72,712
At 31 August 2024
2,903,640
655,532
995,147
4,554,319
Depreciation and impairment
At 1 September 2023
-
0
375,885
398,060
773,945
Depreciation charged in the year
-
0
101,466
99,515
200,981
At 31 August 2024
-
0
477,351
497,575
974,926
Carrying amount
At 31 August 2024
2,903,640
178,181
497,572
3,579,393
At 31 August 2023
2,903,640
206,935
597,087
3,707,662
Comwood Holdings Limited
Notes to the group financial statements (continued)
For the year ended 31 August 2024
10
Tangible fixed assets (continued)
23
Company
Freehold land and buildings
£
Cost
At 1 September 2023 and 31 August 2024
2,903,640
Depreciation and impairment
At 1 September 2023 and 31 August 2024
-
0
Carrying amount
At 31 August 2024
2,903,640
At 31 August 2023
2,903,640
11
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
12
-
0
-
0
1,104
1,104
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 September 2023 and 31 August 2024
1,104
Carrying amount
At 31 August 2024
1,104
At 31 August 2023
1,104
Comwood Holdings Limited
Notes to the group financial statements (continued)
For the year ended 31 August 2024
24
12
Subsidiaries

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

Name of undertaking
Nature of business
Class of
% Held
shares held
Direct
Comwood Croydon Limited
Provision of accommodation services to asylum seekers
Ordinary shares
100
Brylaw Limited
Management services
Ordinary shares
85

The registered office of all group companies is C/O Saffery LLP, St John's Court, Easton Street, High Wycombe, United Kingdom, HP11 1JX.

Brylaw Limited are exempt from the requirements relating to the audit of its individual financial statements by virtue of the parent entity's guarantee under section 479A of the Companies Act 2006. The Company Registration Number of Brylaw Limited is 12731419.

13
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,181,631
1,218,218
-
0
-
0
Amounts owed by group undertakings
-
-
-
480
Other debtors
884,640
884,524
-
0
-
0
Prepayments and accrued income
1,057,234
817,586
-
0
-
0
3,123,505
2,920,328
-
480
14
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
£
£
£
£
Trade creditors
510,064
257,106
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
1,051,711
1,136,064
Corporation tax payable
455,853
394,844
152,504
106,038
Other taxation and social security
414,057
424,866
-
-
Other creditors
340,164
343,040
190,532
190,532
Accruals and deferred income
829,033
953,529
3,499
3,300
2,549,171
2,373,385
1,398,246
1,435,934
Comwood Holdings Limited
Notes to the group financial statements (continued)
For the year ended 31 August 2024
25
15
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
57,072
45,747
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 September 2023
45,747
-
Charge to profit or loss
11,325
-
Liability at 31 August 2024
57,072
-
16
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
72,687
72,129

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.

17
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2,008
2,008
2,008
2,008

All shares rank equally with regards to voting rights, rights in respect of dividends, capital and distribution of capital in the event of the company being wound up.

Comwood Holdings Limited
Notes to the group financial statements (continued)
For the year ended 31 August 2024
26
18
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
1,848,929
1,770,364
-
-
Between two and five years
7,360,000
7,048,929
-
-
In over five years
-
1,760,000
-
-
9,208,929
10,579,293
-
-
19
Events after the reporting date

Subsequent to the year end, the group acquired a hotel in exchange for consideration totalling £8,850,000.

 

In order to facilitate the purchase, the Group obtained a loan facility with valued £8,600,000 secured by way of fixed and floating charges over the asset of the companies within the group.

20
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2024
2023
£
£
Aggregate compensation
205,078
193,515
Transactions with related parties

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2024
2023
£
£
Group
Entities with control, joint control or significant influence over the group
375,776
375,776
Company
Entities with control, joint control or significant influence over the company
232,629
232,629
Comwood Holdings Limited
Notes to the group financial statements (continued)
For the year ended 31 August 2024
20
Related party transactions (continued)
27

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2024
2023
Balance
Balance
£
£
Group
Entities with control, joint control or significant influence over the group
926,839
926,839
Company
Entities with control, joint control or significant influence over the company
42,197
42,197

Amounts due to and from group undertakings are interest free, unsecured and repayable on demand.

 

The company has taken advantage of the exception conferred by FRS 102 paragraph 33.1A not to disclose transactions with wholly owned subsidiaries in the group headed by Comwood Holdings Limited.

21
Directors' transactions

Dividends totalling £854,898 (2023 - £731,219) were paid in the year in respect of shares held by the company's directors.

22
Controlling party

In the opinion of the directors there is no ultimate controlling party.

23
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
1,658,455
1,628,231
Adjustments for:
Taxation charged
620,471
468,208
Finance costs
1,166
-
0
Investment income
(21)
(549)
Depreciation and impairment of tangible fixed assets
200,981
191,669
Movements in working capital:
(Increase)/decrease in debtors
(203,177)
19,614
Increase/(decrease) in creditors
114,777
(446,585)
Cash generated from operations
2,392,652
1,860,588
Comwood Holdings Limited
Notes to the group financial statements (continued)
For the year ended 31 August 2024
28
24
Analysis of changes in net funds - group
1 September 2023
Cash flows
31 August 2024
£
£
£
Cash at bank and in hand
1,949,164
605,826
2,554,990
2024-08-312023-09-01falseCCH SoftwareCCH Accounts Production 2024.210Lawrence AlkinBryan BurletsonRichard BurletsonPrudence Burletsonfalsefalse100845362023-09-012024-08-3110084536bus:Director22023-09-012024-08-3110084536bus:Director32023-09-012024-08-3110084536bus:CompanySecretary12023-09-012024-08-3110084536bus:Director12023-09-012024-08-3110084536bus:RegisteredOffice2023-09-012024-08-3110084536bus:Consolidated2023-09-012024-08-31100845362024-08-3110084536bus:Consolidated2024-08-3110084536bus:Consolidated2022-09-012023-08-31100845362022-09-012023-08-3110084536bus:Consolidated2023-08-31100845362023-08-3110084536core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2024-08-3110084536core:PlantMachinerybus:Consolidated2024-08-3110084536core:FurnitureFittingsbus:Consolidated2024-08-3110084536core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2023-08-3110084536core:PlantMachinerybus:Consolidated2023-08-3110084536core:FurnitureFittingsbus:Consolidated2023-08-3110084536core:LandBuildingscore:OwnedOrFreeholdAssets2024-08-3110084536core:LandBuildingscore:OwnedOrFreeholdAssets2023-08-3110084536core:ShareCapitalbus:Consolidated2024-08-3110084536core:ShareCapitalbus:Consolidated2023-08-3110084536core:ShareCapital2024-08-3110084536core:ShareCapital2023-08-3110084536core:RetainedEarningsAccumulatedLosses2024-08-3110084536core:ShareCapitalbus:Consolidated2022-08-31100845362022-08-3110084536core:RetainedEarningsAccumulatedLossesbus:Consolidated2023-08-3110084536core:Non-controllingInterestsbus:Consolidated2023-08-3110084536core:RetainedEarningsAccumulatedLossesbus:Consolidated2024-08-3110084536core:Non-controllingInterestsbus:Consolidated2024-08-3110084536core:ShareCapital2022-08-3110084536core:RetainedEarningsAccumulatedLosses2022-08-3110084536core:RetainedEarningsAccumulatedLosses2023-08-3110084536bus:Consolidated2022-08-3110084536core:LandBuildingscore:OwnedOrFreeholdAssets2023-09-012024-08-3110084536core:PlantMachinery2023-09-012024-08-3110084536core:FurnitureFittings2023-09-012024-08-3110084536core:UKTaxbus:Consolidated2023-09-012024-08-3110084536core:UKTaxbus:Consolidated2022-09-012023-08-3110084536core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2023-08-3110084536core:PlantMachinerybus:Consolidated2023-08-3110084536core:FurnitureFittingsbus:Consolidated2023-08-3110084536bus:Consolidated2023-08-3110084536core:LandBuildingscore:OwnedOrFreeholdAssets2023-08-3110084536core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2023-09-012024-08-3110084536core:PlantMachinerybus:Consolidated2023-09-012024-08-3110084536core:FurnitureFittingsbus:Consolidated2023-09-012024-08-3110084536core:Subsidiary12023-09-012024-08-3110084536core:Subsidiary22023-09-012024-08-3110084536core:Subsidiary112023-09-012024-08-3110084536core:Subsidiary212023-09-012024-08-3110084536core:CurrentFinancialInstruments2024-08-3110084536core:CurrentFinancialInstruments2023-08-3110084536core:CurrentFinancialInstrumentsbus:Consolidated2024-08-3110084536core:CurrentFinancialInstrumentsbus:Consolidated2023-08-3110084536core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2024-08-3110084536core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2023-08-3110084536core:CurrentFinancialInstrumentscore:WithinOneYear2024-08-3110084536core:CurrentFinancialInstrumentscore:WithinOneYear2023-08-3110084536bus:PrivateLimitedCompanyLtd2023-09-012024-08-3110084536bus:FRS1022023-09-012024-08-3110084536bus:Audited2023-09-012024-08-3110084536bus:ConsolidatedGroupCompanyAccounts2023-09-012024-08-3110084536bus:FullAccounts2023-09-012024-08-31xbrli:purexbrli:sharesiso4217:GBP