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COMPANY REGISTRATION NUMBER: 00830200
CONTINENTAL SPORTS LIMITED
FINANCIAL STATEMENTS
31 December 2024
CONTINENTAL SPORTS LIMITED
FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2024
Contents
Pages
Officers and professional advisers 1
Strategic report 2
Directors' report 3 to 4
Independent auditor's report to the members 5 to 8
Statement of comprehensive income 9
Statement of financial position 10
Statement of changes in equity 11
Statement of cash flows 12
Notes to the financial statements 13 to 22
CONTINENTAL SPORTS LIMITED
OFFICERS AND PROFESSIONAL ADVISERS
The board of directors
M Booth
N Booth
J Cliff
S H Booth
Registered office
Millgate
Paddock
Huddersfield
HD1 4SD
Auditor
Wheawill & Sudworth Limited
Chartered Accountants & statutory auditor
35 Westgate
Huddersfield
HD1 1PA
Bankers
HSBC Bank plc
2 Cloth Hall Street
Huddersfield
West Yorkshire
HD1 2ES
Solicitors
Eaton Smith LLP
14 High Street
Huddersfield
HD1 2HA
CONTINENTAL SPORTS LIMITED
STRATEGIC REPORT
YEAR ENDED 31 DECEMBER 2024
The directors present their report for the financial year ended 31 December 2024. Principal activity and business review The principal activity of the company during the year was manufacturing, installation, servicing and maintenance of sports, physical education and gymnastics equipment. New-build sports hall projects for schools, colleges and leisure centres along with gymnastic facilities for competition and high street operators form the backbone of the company's business. Alongside this, the company is involved in a wide range of other activities including physical education equipment, the fit-out of rebound therapy rooms, trampoline parks, cricket practice facilities, safety matting for industrial facilities and TV programmes including all the matting, padding and pugil sticks for the recent Gladiators relaunch on BBC1, and many other business lines. This broad range of activities helps to smooth the natural cycles in each individual market. The year ended 31 December 2024 was a solid performance replicating the previous year in terms of turnover and gross profit, but some operational improvements led to a 7% increase in operating profit. The consistent gross margin of 43% year on year masks some significant improvements in manufacturing and purchasing efficiencies that have been negated by increases in payroll costs and materials costs. The directors are pleased with the performance of the businress and the financial outcome for the year. The company entered 2025 with some large and prestigious projects in the order book and an exciting pipeline in sports halls, gymnastics and cricket practice facilities. However, the anticipation of the enormous increases in costs caused by the current government's increase in the "Living Wage" and Employers National Insurance rates and thresholds means 2025 will be a challenging year. The shareholders of the company entered 2025 in discussions with one of the company's competitors, Universal Services (Sports Equipment) Ltd regarding a strategic acquisition of that company. The acquisition concluded successfully on 30th May 2025 with Continental Sports Ltd and Universal Services (Sports Equipment) Ltd coming under ther common control of the shareholders through a holding company, Millgate Group Ltd, via a group restructuring. This common ownership of the two strongest brands in our sector will enable realIsation of efficiencies to help offset the government's cost burden on our operations. The principal KPIs monitored by the company's Executive Committee include order intake, gross margin and cash collection.
Financial risk management objectives and policies Having assessed the company's financial risks, the directors concluded that no material use of financial instruments was necessary or appropriate during the year.
This report was approved by the board of directors on 21 August 2025 and signed on behalf of the board by:
N Booth
Director
CONTINENTAL SPORTS LIMITED
DIRECTORS' REPORT
YEAR ENDED 31 DECEMBER 2024
The directors present their report and the financial statements of the company for the year ended 31 December 2024 .
Principal activities
The principal activity of the company during the year was manufacturing sports and gymnastic equipment.
Directors
The directors who served the company during the year were as follows:
M Booth
D J Booth
N Booth
M Booth resigned as a director on 26 March 2025 and was reappointed on 4 June 2025. D J Booth resigned as a director on 26 March 2025. J Cliff was appointed as a director on 25 January 2025 and S H Booth was appointed as a director on 26 March 2025.
Dividends
A dividend of £25,000 has been paid on the preference share capital, and a dividend of £500,000 has been paid on the ordinary share capital.
Research and development
The company incurred expenditure on research and development appropriate to its trading activities.
Strategic report
In accordance with Section 414C(11), Companies Act 2006, the following information required to be contained in this report is set out in the company's Strategic Report on page 2: principal activities, business review and financial risks.
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, directors' 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 company and the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on 21 August 2025 and signed on behalf of the board by:
N Booth
Director
CONTINENTAL SPORTS LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CONTINENTAL SPORTS LIMITED
YEAR ENDED 31 DECEMBER 2024
Opinion
We have audited the financial statements of Continental Sports Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity, statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - have been prepared in accordance with the requirements of the Companies Act 2006.
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 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 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. 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. In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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 the audit:
- the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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 company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Obtained an understanding of the legal and regulatory framework applicable to the entity and how the entity is complying with that framework; Assessment of the susceptibility of the entity’s financial statements to material misstatement, including how fraud might occur; Ensured whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations; Gained clear understanding of the entity’s current activities, the scope of its authorisation and confirmed the effectiveness of its control environment where the entity is a regulated entity; Because of inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with the law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 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.
David Butterworth
(Senior Statutory Auditor)
For and on behalf of
Wheawill & Sudworth Limited
Chartered Accountants & statutory auditor
35 Westgate
Huddersfield
HD1 1PA
21 August 2025
CONTINENTAL SPORTS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
YEAR ENDED 31 DECEMBER 2024
2024
2023
Note
£
£
Turnover
4
8,026,215
8,090,508
Cost of sales
( 4,576,811)
( 4,635,907)
------------
------------
Gross profit
3,449,404
3,454,601
Administrative expenses
( 2,505,691)
( 2,571,326)
Other operating income
15,750
10,242
------------
------------
Operating profit
5
959,463
893,517
Gain on financial assets at fair value through profit or loss
63,940
18,751
Interest receivable and similar income
9
64,526
43,477
Interest payable and similar expenses
10
( 25,000)
( 25,000)
------------
------------
Profit before taxation
1,062,929
930,745
Tax on profit
11
( 275,521)
( 229,929)
------------
------------
Profit for the financial year and total comprehensive income
787,408
700,816
------------
------------
All the activities of the company are from continuing operations.
CONTINENTAL SPORTS LIMITED
STATEMENT OF FINANCIAL POSITION
31 December 2024
2024
2023
Note
£
£
Fixed assets
Intangible assets
13
2,483
3,724
Tangible assets
14
1,238,906
1,046,817
------------
------------
1,241,389
1,050,541
Current assets
Stocks
15
1,225,223
1,274,856
Debtors
16
673,103
1,253,257
Investments
17
979,761
518,365
Cash at bank and in hand
2,554,716
2,296,074
------------
------------
5,432,803
5,342,552
Creditors: amounts falling due within one year
18
( 1,763,443)
( 1,825,752)
------------
------------
Net current assets
3,669,360
3,516,800
------------
------------
Total assets less current liabilities
4,910,749
4,567,341
Provisions
Taxation including deferred tax
19
( 253,800)
( 197,800)
------------
------------
Net assets
4,656,949
4,369,541
------------
------------
Capital and reserves
Called up share capital
22
601
601
Capital redemption reserve
23
750,201
750,201
Profit and loss account
23
3,906,147
3,618,739
------------
------------
Shareholders funds
4,656,949
4,369,541
------------
------------
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
These financial statements were approved by the board of directors and authorised for issue on 21 August 2025 , and are signed on behalf of the board by:
N Booth
Director
Company registration number: 00830200
CONTINENTAL SPORTS LIMITED
STATEMENT OF CHANGES IN EQUITY
YEAR ENDED 31 DECEMBER 2024
Called up share capital
Capital redemption reserve
Profit and loss account
Total
£
£
£
£
At 1 January 2023
601
750,201
2,917,923
3,668,725
Profit for the year
700,816
700,816
------------
------------
------------
------------
Total comprehensive income for the year
700,816
700,816
At 31 December 2023
601
750,201
3,618,739
4,369,541
Profit for the year
787,408
787,408
------------
------------
------------
------------
Total comprehensive income for the year
787,408
787,408
Dividends paid and payable
12
( 500,000)
( 500,000)
------------
------------
------------
------------
Total investments by and distributions to owners
( 500,000)
( 500,000)
------------
------------
------------
------------
At 31 December 2024
601
750,201
3,906,147
4,656,949
------------
------------
------------
------------
CONTINENTAL SPORTS LIMITED
STATEMENT OF CASH FLOWS
YEAR ENDED 31 DECEMBER 2024
2024
2023
£
£
Cash flows from operating activities
Profit for the financial year
787,408
700,816
Adjustments for:
Depreciation of tangible assets
240,053
160,743
Amortisation of intangible assets
1,241
7,923
Gain on financial assets at fair value through profit or loss
(63,940)
(18,751)
Interest receivable and similar income
( 64,526)
( 43,477)
Interest payable and similar expenses
25,000
25,000
Gains on disposal of tangible assets
( 2,189)
( 187)
Tax on profit
275,521
229,929
Changes in:
Stocks
49,633
36,010
Trade and other debtors
580,154
( 300,273)
Trade and other creditors
( 474,111)
97,692
------------
------------
Cash generated from operations
1,354,244
895,425
Interest paid
( 25,000)
( 25,000)
Interest received
64,526
43,477
Tax paid
( 174,936)
( 27,286)
------------
------------
Net cash from operating activities
1,218,834
886,616
------------
------------
Cash flows from investing activities
Purchase of tangible assets
( 432,142)
( 444,983)
Proceeds from sale of tangible assets
2,189
2,501
Purchase of intangible assets
( 4,965)
Purchases of other investments
( 500,000)
( 700,000)
Proceeds from sale of other investments
102,544
200,386
------------
------------
Net cash used in investing activities
( 827,409)
( 947,061)
------------
------------
Cash flows from financing activities
Dividends paid
( 500,000)
Loans received
367,217
------------
------------
Net cash used in financing activities
( 132,783)
------------
------------
Net increase/(decrease) in cash and cash equivalents
258,642
( 60,445)
Cash and cash equivalents at beginning of year
2,296,074
2,356,519
------------
------------
Cash and cash equivalents at end of year
2,554,716
2,296,074
------------
------------
CONTINENTAL SPORTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2024
1. General information
Continental Sports Limited is a private company limited by shares, registered in England, registration number 00830200 . The address of the registered office is given in the company information on page 1 of these financial statements.
2. Statement of compliance
The financial statements have been prepared in accordance with applicable accounting standards including Financial Reporting Standard 102 The Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities measured at fair value through profit or loss. The financial statements are prepared in sterling, which is the functional currency of the entity.
Debtors and creditors receivable/payable within one year
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Intangible assets
Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at revalued amounts, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses. Intangible assets acquired as part of a business combination are only recognised separately from goodwill when they arise from contractual or other legal rights, are separable, the expected future economic benefits are probable and the cost or value can be measured reliably.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
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-
20% straight line
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Land and buildings
-
2% straight line
Plant and machinery
-
25% reducing balance
Computer equipment
-
25% straight line
Motor vehicles
-
25% reducing balance
Office equipment
-
15% reducing balance
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.
Investments
Investments that are listed on the stock exchange are valued at market value.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Defined contribution plans
The company operates defined contribution pension schemes for employees and directors. The cost of company contributions to the schemes are charged to the profit and loss account as incurred.
4. Turnover
Turnover arises from:
2024
2023
£
£
Sale of goods
8,026,215
8,090,508
------------
------------
The turnover is attributable to the one principal activity of the company. An analysis of turnover by the geographical markets that substantially differ from each other is given below:
2024
2023
£
£
United Kingdom
7,524,145
7,097,615
Overseas
502,070
992,893
------------
------------
8,026,215
8,090,508
------------
------------
5. Operating profit
Operating profit or loss is stated after charging/crediting:
2024
2023
£
£
Amortisation of intangible assets
1,241
7,923
Depreciation of tangible assets
240,053
160,743
Gains on disposal of tangible assets
( 2,189)
( 187)
Impairment of trade debtors
6,089
5,844
------------
------------
6. Auditor's remuneration
2024
2023
£
£
Fees payable for the audit of the financial statements
8,000
10,000
------------
------------
Fees payable to the company's auditor for other services:
Other non-audit services
7,700
8,000
------------
------------
7. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2024
2023
No.
No.
Selling and administrative
27
26
Manufacturing
55
56
------------
------------
82
82
------------
------------
The aggregate payroll costs incurred during the year, relating to the above, were:
2024
2023
£
£
Wages and salaries
2,680,651
2,611,889
Social security costs
264,816
259,380
Other pension costs
70,244
167,088
------------
------------
3,015,711
3,038,357
------------
------------
8. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2024
2023
£
£
Remuneration
254,238
344,383
------------
------------
Remuneration of the highest paid director in respect of qualifying services:
2024
2023
£
£
Aggregate remuneration
249,238
332,383
------------
------------
9. Interest receivable and similar income
2024
2023
£
£
Interest on cash and cash equivalents
64,015
42,151
Other interest receivable and similar income
511
1,326
------------
------------
64,526
43,477
------------
------------
10. Interest payable and similar expenses
2024
2023
£
£
Dividends paid on shares classed as debt
25,000
25,000
------------
------------
11. Tax on profit
Major components of tax expense
2024
2023
£
£
Current tax:
UK current tax expense
196,000
151,415
Adjustments in respect of prior periods
23,521
( 486)
------------
------------
Total current tax
219,521
150,929
------------
------------
Deferred tax:
Origination and reversal of timing differences
56,000
79,000
------------
------------
Tax on profit
275,521
229,929
------------
------------
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is higher than (2023: higher than) the standard rate of corporation tax in the UK of 25 % (2023: 23.52 %).
2024
2023
£
£
Profit on ordinary activities before taxation
1,062,929
930,745
------------
------------
Profit on ordinary activities by rate of tax
265,732
218,911
Adjustment to tax charge in respect of prior periods
23,521
Effect of expenses not deductible for tax purposes
6,886
6,512
Effect of capital allowances and depreciation
1,479
1,391
Utilisation of tax losses
( 1,346)
Rounding on tax charge
7
( 199)
Deferred tax movement not recognised pior year
( 25,000)
Deferred tax movement not recognised current year
34
Postponed gains and capital losses recognised
2,862
Effect of increased rate of deferred tax
4,660
------------
------------
Tax on profit
275,521
229,929
------------
------------
12. Dividends
Equity dividends
2024
2023
£
£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year )
500,000
------------
------------
13. Intangible assets
Website
£
Cost
At 1 January 2024 and 31 December 2024
38,374
------------
Amortisation
At 1 January 2024
34,650
Charge for the year
1,241
------------
At 31 December 2024
35,891
------------
Carrying amount
At 31 December 2024
2,483
------------
At 31 December 2023
3,724
------------
14. Tangible assets
Land and buildings
Plant and machinery
Computer equipment
Motor vehicles
Office equipment
Total
£
£
£
£
£
£
Cost
At 1 Jan 2024
1,078,836
1,018,700
68,669
743,754
182,343
3,092,302
Additions
43,804
388,338
432,142
Disposals
( 189,208)
( 189,208)
------------
------------
------------
------------
------------
------------
At 31 Dec 2024
1,078,836
1,062,504
68,669
942,884
182,343
3,335,236
------------
------------
------------
------------
------------
------------
Depreciation
At 1 Jan 2024
428,751
898,877
68,669
495,315
153,873
2,045,485
Charge for the year
32,878
42,375
160,596
4,204
240,053
Disposals
( 189,208)
( 189,208)
------------
------------
------------
------------
------------
------------
At 31 Dec 2024
461,629
941,252
68,669
466,703
158,077
2,096,330
------------
------------
------------
------------
------------
------------
Carrying amount
At 31 Dec 2024
617,207
121,252
476,181
24,266
1,238,906
------------
------------
------------
------------
------------
------------
At 31 Dec 2023
650,085
119,823
248,439
28,470
1,046,817
------------
------------
------------
------------
------------
------------
The net book value of land and buildings consists of freehold and long leasehold land and buildings of £248,070 (2023: £257,200) and £369,137 (2023: £392,885) respectively.
15. Stocks
2024
2023
£
£
Raw materials
673,787
777,613
Work in progress
133,336
105,197
Finished goods
418,100
392,046
------------
------------
1,225,223
1,274,856
------------
------------
16. Debtors
2024
2023
£
£
Trade debtors
609,587
1,120,453
Prepayments and accrued income
52,906
37,967
Directors' loan accounts (note 27)
88,901
Other debtors
10,610
5,936
------------
------------
673,103
1,253,257
------------
------------
17. Investments
2024
2023
£
£
Other investments
979,761
518,365
------------
------------
Investments are listed on the Stock Exchange and are valued at market value.
18. Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
392,644
652,673
Accruals and deferred income
100,503
279,499
Corporation tax
196,000
151,415
Social security and other taxes
84,484
156,826
Shares classed as financial liabilities
500,000
500,000
Directors' loan accounts (note 27)
367,217
Other creditors
122,595
85,339
------------
------------
1,763,443
1,825,752
------------
------------
19. Provisions
Deferred tax (note 20)
£
At 1 January 2024
197,800
Additions
56,000
------------
At 31 December 2024
253,800
------------
20. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2024
2023
£
£
Included in provisions (note 19)
253,800
197,800
------------
------------
The deferred tax account consists of the tax effect of timing differences in respect of:
2024
2023
£
£
Accelerated capital allowances
240,550
196,029
Fair value adjustment of financial assets
13,250
1,771
------------
------------
253,800
197,800
------------
------------
21. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution pension plans was £ 62,861 (2023: £ 60,122 ).
22. Called up share capital
Issued, called up and fully paid
2024
2023
No.
£
No.
£
Amounts presented in equity:
Ordinary 'A' shares of £ 1 each
448
448
448
448
Ordinary 'B' shares of £ 1 each
147
147
147
147
Ordinary 'C' shares of £ 1 each
1
1
1
1
Ordinary 'D' shares of £ 1 each
1
1
1
1
Ordinary 'E' shares of £1 each
1
1
1
1
Ordinary 'F' shares of £1 each
1
1
1
1
Ordinary 'G' shares of £1 each
1
1
1
1
Ordinary 'H' shares of £1 each
1
1
1
1
------------
------------
------------
------------
601
601
601
601
------------
------------
------------
------------
Amounts presented in liabilities:
Preference shares of £ 1 each
500,000
500,000
500,000
500,000
------------
------------
------------
------------
The various classes of share rank pari passu in all respects. The 500,000 £1 Non Cumulative Redeemable Preference shares have attached to them a right to a fixed dividend of 5% per annum and do not have any voting rights.
23. Reserves
Capital redemption reserve - This reserve records the nominal value of shares repurchased by the company. Profit and loss account - This reserve records retained earnings and accumulated losses.
24. Analysis of changes in net debt
At 1 Jan 2024
Cash flows
At 31 Dec 2024
£
£
£
Cash at bank and in hand
2,296,074
258,642
2,554,716
Current asset investments
518,365
461,396
979,761
------------
------------
------------
2,814,439
720,038
3,534,477
------------
------------
------------
25. Capital commitments
Capital expenditure contracted for but not provided for in the financial statements is as follows:
2024
2023
£
£
Tangible assets
254,000
------------
------------
26. Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
2024
2023
£
£
Not later than 1 year
6,025
Later than 1 year and not later than 5 years
17,574
------------
------------
23,599
------------
------------
27. Directors' advances, credits and guarantees
Included in debtors at the previous year end was a loan to a director, amounting to £88,901. £ Amount outstanding at end of the year - Amount outstanding at beginning of the year 88,901 Maximum outstanding during the year 88,901 The loan was repaid in full within the current year, with interest charged on the loan at a commercial rate of interest until its settlement. At the year end date £367,217 was owed by the company to the directors.
28. Related party transactions
At 31 December 2024 £20,686 was owed to the company by another company controlled by N Booth . This balance is included in trade debtors and has arisen from trading transactions. The company is a wholly-owned subsidiary of Millgate Group Limited . This company is controlled by N Booth .