Company registration number 01403616 (England and Wales)
E.J. BOWMAN HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
E.J. BOWMAN HOLDINGS LIMITED
COMPANY INFORMATION
Director
Mrs S E Bowman
Secretary
Mr R K Bowman
Company number
01403616
Registered office
Suite GA, St. George's House
Lever Street
Wolverhampton
United Kingdom
WV2 1EZ
Auditor
BK Plus Audit Limited
Suite GA, St, George's House
Lever Street
Wolverhampton
England
WV2 1EZ
E.J. BOWMAN HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1
Director's report
2
Director's responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 32
E.J. BOWMAN HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2024
- 1 -

The director presents the strategic report for the year ended 31 July 2024.

Review of the business

The directors report that the group has maintained its position with the market place. Turnover year-on-year decreased by 4%. The market remains competitive and as such the group is remaining focused on maintaining high quality products and service to its customers.

The directors consider the groups position at the year end to be satisfactory and in alignment with expectations. The business is in a strong financial position with stable cash flow. Management will continue to monitor the market and ensure the group stays on track.

Principal risks and uncertainties

The key risks to the group are external factors of global economic and political uncertainty. This could cause fluctuations in metal costs and exchange rates and also fluctuations in demand for our products.

The group monitors costs and revenue on and going basis to ensure the financial stability of the group. The group has developed and maintains strong relationships with all its suppliers and sub-contractors to provide a solid base for the operational activities of the group.

Development and performance

The company continues to investigate new applications and products.

Key performance indicators

The director's consider that the key financial indicator is turnover.

The turnover for the group was £12m (2023: £12.5m), an decrease of 3.7% from the previous year.

On behalf of the board

Mrs S E Bowman
Director
5 September 2025
E.J. BOWMAN HOLDINGS LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 JULY 2024
- 2 -

The director presents her annual report and financial statements for the year ended 31 July 2024.

Principal activities

The principal activity of the company was that of a holding company. The principal activity of the group was the manufacture of heat exchangers and oil coolers.

Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £683,495. The director does not recommend payment of a further dividend.

Director

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

Mrs S E Bowman
Qualifying third party indemnity provisions

The company has made qualifying third party indemnity provisions for the benefit of its director during the year. These provisions remain in force at the reporting date.

Independent auditor

In accordance with the company's articles, a resolution proposing that BK Plus Audit Limited be reappointed as auditor of the group will be put at a General Meeting.

Statement of disclosure to auditor

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

Medium-sized companies exemption

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

On behalf of the board
Mrs S E Bowman
Director
5 September 2025
E.J. BOWMAN HOLDINGS LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 JULY 2024
- 3 -

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

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless she is 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 director is required to:

- select suitable accounting policies and then apply them consistently;

- make judgements and accounting estimates that are reasonable and prudent;

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.

The director is 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. She is 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.

E.J. BOWMAN HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF E.J. BOWMAN HOLDINGS LIMITED
- 4 -
Opinion

We have audited the financial statements of E.J. Bowman Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 July 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

- give a true and fair view of the state of the group's and the parent company's affairs as at 31 July 2024 and of the group's profit for the year then ended;

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

- have been prepared in accordance with the requirements of the Companies Act 2006.

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

- T he information given in the strategic report and the director's r eport for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- The strategic report and the director's report have been prepared in accordance with applicable legal requirements.

E.J. BOWMAN HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF E.J. BOWMAN HOLDINGS LIMITED
- 5 -
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 identifie d material misstatements in the strategic report or the director's r eport.

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

- adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

- the parent company financial statements are not in agreement with the accounting records and returns; or

- certain disclosures of directors' remuneration specified by law are not made; or

- we have not received all the information and explanations we require for our audit.

Responsibilities of director

As explained more fully in the director's r esponsibilities s tatement, the director is 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 director determines 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 director is 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 director either intends to liquidate the parent company or to cease operations, or has 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.

From the preliminary of the audit, we ensure our understanding of the entity is up to date. This includes, but is not limited to, current knowledge of their activities, the business and control environments, and their compliance with the applicable legal and regulatory frameworks. This information supports our risk identification and the subsequent design of audit procedures to mitigate those risks; ensuring the that the audit evidence obtained is sufficient and appropriate to support our opinion.

In response to the risks identified, specific to this entity, we designed procedures which included, but were not limited to:

- Enquiry of management and those charged with governance around actual and potential litigation and claims;

- Reviewing minutes of meetings of those charged with governance, if available;

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale for significant transactions outside the normal course of the business.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

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.

E.J. BOWMAN HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF E.J. BOWMAN HOLDINGS LIMITED
- 6 -

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.

Andrew Williams FCCA (Senior Statutory Auditor)
For and on behalf of BK Plus Audit Limited, Statutory Auditor
Chartered Certified Accountants
Suite GA, St, George's House
Lever Street
Wolverhampton
WV2 1EZ
England
5 September 2025
E.J. BOWMAN HOLDINGS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 JULY 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
12,010,092
12,466,361
Cost of sales
(7,204,219)
(7,408,431)
Gross profit
4,805,873
5,057,930
Distribution costs
(477,811)
(485,406)
Administrative expenses
(313,274)
(2,099,915)
Operating profit
4
4,014,788
2,472,609
Interest receivable and similar income
6
56,146
21,597
Interest payable and similar expenses
7
(27,963)
(26,611)
Profit before taxation
4,042,971
2,467,595
Tax on profit
8
(1,011,199)
(406,615)
Profit for the financial year
3,031,772
2,060,980
Profit for the financial year is all attributable to the owners of the parent company.

The notes on pages 14 to 32 form part of these financial statements.

E.J. BOWMAN HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JULY 2024
- 8 -
2024
2023
Notes
£
£
Profit for the year
3,031,772
2,060,980
Other comprehensive income
Revaluation of investment property
11
497,000
-
0
Actuarial gain on defined benefit pension schemes
19
468,600
-
0
Cash flow hedges gain arising in the year
-
0
-
0
Other comprehensive income for the year
965,600
-
0
Total comprehensive income for the year
3,997,372
2,060,980
Total comprehensive income for the year is all attributable to the owners of the parent company.

The notes on pages 14 to 32 form part of these financial statements.

E.J. BOWMAN HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT 31 JULY 2024
31 July 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
653,238
614,985
Investment property
11
1,860,000
1,363,000
2,513,238
1,977,985
Current assets
Stocks
14
6,729,883
6,194,069
Debtors
15
2,142,524
2,101,416
Investments
16
113,980
113,980
Cash at bank and in hand
4,538,305
5,751,195
13,524,692
14,160,660
Creditors: amounts falling due within one year
17
(2,954,276)
(6,306,706)
Net current assets
10,570,416
7,853,954
Total assets less current liabilities
13,083,654
9,831,939
Provisions for liabilities
Deferred tax liability
18
2,952
(470,886)
(2,952)
470,886
Net assets excluding pension surplus
13,080,702
10,302,825
Defined benefit pension surplus
19
1,202,000
666,000
Net assets
14,282,702
10,968,825
Capital and reserves
Called up share capital
20
18,000
18,000
Revaluation reserve
497,000
-
0
Profit and loss reserves
13,767,702
10,950,825
Total equity
14,282,702
10,968,825

The notes on pages 14 to 32 form part of these financial statements.

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved and signed by the director and authorised for issue on 5 September 2025
05 September 2025
Mrs S E Bowman
Director
Company registration number 01403616 (England and Wales)
E.J. BOWMAN HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 JULY 2024
31 July 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
594,731
546,437
Investment property
11
1,860,000
1,363,000
Investments
12
4,506
4,506
2,459,237
1,913,943
Current assets
Debtors
15
1,273,960
1,371,526
Investments
16
113,980
113,980
Cash at bank and in hand
856,593
404,607
2,244,533
1,890,113
Creditors: amounts falling due within one year
17
(3,010,181)
(2,006,204)
Net current liabilities
(765,648)
(116,091)
Net assets
1,693,589
1,797,852
Capital and reserves
Called up share capital
20
18,000
18,000
Revaluation reserve
497,000
-
0
Profit and loss reserves
1,178,589
1,779,852
Total equity
1,693,589
1,797,852

The notes on pages 14 to 32 form part of these financial statements.

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 £82,232 (2023: £79,171 profit).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved and signed by the director and authorised for issue on 5 September 2025
05 September 2025
Mrs S E Bowman
Director
Company registration number 01403616 (England and Wales)
E.J. BOWMAN HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2024
- 11 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 August 2022
18,000
-
0
9,573,340
9,591,340
Year ended 31 July 2023:
Profit and total comprehensive income
-
-
2,060,980
2,060,980
Dividends
9
-
-
(683,495)
(683,495)
Balance at 31 July 2023
18,000
-
0
10,950,825
10,968,825
Year ended 31 July 2024:
Profit for the year
-
-
3,031,772
3,031,772
Other comprehensive income:
Revaluation of investment property
-
497,000
-
497,000
Actuarial gains on defined benefit plans
19
-
-
468,600
468,600
Total comprehensive income
-
497,000
3,500,372
3,997,372
Dividends
9
-
-
(683,495)
(683,495)
Balance at 31 July 2024
18,000
497,000
13,767,702
14,282,702

The notes on pages 14 to 32 form part of these financial statements.

E.J. BOWMAN HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2024
- 12 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 August 2022
18,000
-
0
2,384,176
2,402,176
Year ended 31 July 2023:
Profit and total comprehensive income for the year
-
-
79,171
79,171
Dividends
9
-
-
(683,495)
(683,495)
Balance at 31 July 2023
18,000
-
0
1,779,852
1,797,852
Year ended 31 July 2024:
Profit for the year
-
-
82,232
82,232
Other comprehensive income:
Revaluation of investment property
-
497,000
-
497,000
Total comprehensive income
-
497,000
82,232
579,232
Dividends
9
-
-
(683,495)
(683,495)
Balance at 31 July 2024
18,000
497,000
1,178,589
1,693,589

The notes on pages 14 to 32 form part of these financial statements.

E.J. BOWMAN HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JULY 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
23
866,041
1,748,905
Interest paid
(27,963)
(26,611)
Income taxes paid
(1,206,060)
(259,717)
Net cash (outflow)/inflow from operating activities
(367,982)
1,462,577
Investing activities
Purchase of tangible fixed assets
(84,577)
(17,492)
Proceeds from disposal of tangible fixed assets
-
16,045
Interest received
56,146
21,597
Net cash (used in)/generated from investing activities
(28,431)
20,150
Financing activities
Dividends paid to equity shareholders
(816,477)
(351,924)
Net cash used in financing activities
(816,477)
(351,924)
Net (decrease)/increase in cash and cash equivalents
(1,212,890)
1,130,803
Cash and cash equivalents at beginning of year
5,751,195
4,620,392
Cash and cash equivalents at end of year
4,538,305
5,751,195

The notes on pages 14 to 32 form part of these financial statements.

E.J. BOWMAN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
- 14 -
1
Accounting policies
Company information

E.J. Bowman Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Suite GA, St, George's House, Lever Street, Wolverhampton, United Kingdom, WV2 1EZ.

The group consists of E.J. Bowman 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 a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Business combinations

In the parent company financial statements, t he 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. I nvestments 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.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company E.J. Bowman Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

All financial statements are made up to 31 July 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 g roup.

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.

E.J. BOWMAN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 15 -

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company remains profitable and holds cash reserves to more than sufficiently cover cashflow throughout the next 12 months even if unexpected events occur. Given this the directors continue to adopt the current concern basis of accounting and preparing these financial statements.

1.5
Turnover

Turnover within the group is recognised at the fair value of the consideration received or receivable for goods and management services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rental income in the company includes the rent received from the investment property held as due per contractual arrangements.

1.6
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

E.J. BOWMAN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 16 -
1.7
Tangible fixed assets

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

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
2-4% straight line
Plant, machinery, fixtures and fittings
10% straight line
Computer equipment
25% straight line
Motor vehicles
25% straight line

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

1.8
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. Subsequently it is measured at fair value a t the reporting end date. Changes in fair value are recognised in profit or loss.

1.9
Fixed asset investments

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

I n 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.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the g roup’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

In the parent c ompany financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

E.J. BOWMAN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 17 -
1.10
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.

1.11
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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

1.12
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.

E.J. BOWMAN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 18 -
1.13
Financial instruments

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

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

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

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest m ethod 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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

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.

E.J. BOWMAN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 19 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future paymen ts 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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value th r ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

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

1.14
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.

1.15
Taxation

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

Current tax

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

E.J. BOWMAN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 20 -
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. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is 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.

1.16
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision i s measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.17
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.

1.18
Retirement benefits

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

1.19
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

1.20

Dividends

Dividends relating to ordinary shares are recognised as a liability in the financial statements in the period in which they are declared by the company. In the case of interim dividends, these are considered to be declared when they are paid. Dividends are recognised in the Statement of Changes in Equity as an appropriation of profit.

E.J. BOWMAN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 21 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

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

Stock provision

The company considers it necessary to evaluate the recoverability of the cost of stock. The stock levels are constantly reviewed and should there be an indication of obsolescence the stock is written down to its assessed net realisable value.

Pension scheme valuation

The valuation of the defined benefit pension scheme involves significant judgement and estimation. The scheme is currently in the process of wind-up, which introduces additional complexity and uncertainty in determining the appropriate accounting treatment and the measurement of the net pension liability.

Key areas of judgement and estimation include:

- Assumptions used in actuarial valuation: The calculation of the present value of defined benefit obligations is based on actuarial assumptions including discount rate, inflation, mortality rates, and expected timing of benefit payments. These are reviewed and agreed with the actuary at each reporting date and are sensitive to changes in market conditions.

- Wind-up adjustments: The company has made assumptions regarding the expected cost and timing of the wind-up, including estimates of expenses to be incurred and any potential settlement costs. As the wind-up is ongoing, no settlement gain or loss has been recognised. Final figures will depend on the outcome of insurer negotiations and trustee decisions.

- Recognition of liabilities and provisions: Judgement is required in determining the extent of the company’s continuing obligation to the scheme during the wind-up and in assessing whether any additional provisions are necessary for related costs or contingent liabilities.

Management believes that the estimates used are reasonable based on the information available at the reporting date. However, given the inherent uncertainties associated with the wind-up process, actual outcomes may differ materially from those estimates in future periods.

Property valuations

The determination of fair value for investment properties requires the use of professional judgement and estimation by external valuers. Key assumptions include recent market transactions, rental income, yield rates, occupancy levels, and future economic conditions. Significant changes in these assumptions could materially affect the carrying value of investment properties.

E.J. BOWMAN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 22 -
3
Group - Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sales of goods
11,850,187
12,320,997
Rental income
159,905
145,364
12,010,092
12,466,361
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
3,406,503
4,495,771
European Union
4,212,558
3,936,362
Rest of World
4,391,031
4,034,228
12,010,092
12,466,361
2024
2023
£
£
Other revenue
Interest income
56,146
21,597
4
Group - Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses
30,957
49,872
Research and development costs
20,000
20,000
Fees payable to the group's auditor for the audit of the group's financial statements
25,000
22,000
Depreciation of owned tangible fixed assets
46,239
56,371
Loss/(profit) on disposal of tangible fixed assets
85
(16,045)
E.J. BOWMAN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 23 -
5
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Production
24
24
-
-
Administrative
22
22
-
-
Management
4
4
-
-
Total
50
50
0
0

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
1,300,646
2,777,345
-
0
-
0
Social security costs
127,818
335,214
-
-
Pension costs
166,400
141,066
-
0
-
0
1,594,864
3,253,625
-
0
-
0

Wages and salaries and social security costs include the reversal of provisions of £1,670,000 (2023: £Nil) and £230,460 (2023: £Nil).

6
Group - Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
56,146
21,597
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
56,146
21,597
7
Group - Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Other interest on financial liabilities
27,963
26,611
E.J. BOWMAN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 24 -
8
Group - Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
537,361
524,756
Deferred tax
Origination and reversal of timing differences
473,838
(118,141)
Total tax charge
1,011,199
406,615

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
4,042,971
2,467,595
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 21.01%)
1,010,743
518,442
Tax effect of expenses that are not deductible in determining taxable profit
456
718
130% super deduction
-
0
(18)
Effect of change in deferred tax rate
-
0
(112,527)
Taxation charge
1,011,199
406,615
9
Group - Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
683,495
683,495
E.J. BOWMAN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 25 -
10
Tangible fixed assets
Group
Freehold land and buildings
Plant, machinery, fixtures and fittings
Computer equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 August 2023
1,269,146
1,435,585
563,157
118,107
3,385,995
Additions
68,320
8,950
7,307
-
0
84,577
Disposals
-
0
(63,069)
(129,786)
-
0
(192,855)
At 31 July 2024
1,337,466
1,381,466
440,678
118,107
3,277,717
Depreciation and impairment
At 1 August 2023
722,709
1,390,066
552,457
105,778
2,771,010
Depreciation charged in the year
20,026
13,371
8,843
3,999
46,239
Eliminated in respect of disposals
-
0
(62,985)
(129,785)
-
0
(192,770)
At 31 July 2024
742,735
1,340,452
431,515
109,777
2,624,479
Carrying amount
At 31 July 2024
594,731
41,014
9,163
8,330
653,238
At 31 July 2023
546,437
45,519
10,700
12,329
614,985
Company
Freehold land and buildings
£
Cost
At 1 August 2023
1,269,146
Additions
68,320
At 31 July 2024
1,337,466
Depreciation and impairment
At 1 August 2023
722,709
Depreciation charged in the year
20,026
At 31 July 2024
742,735
Carrying amount
At 31 July 2024
594,731
At 31 July 2023
546,437

The value of the land which is not depreciated amounts to £217,707 (2023: £217,707).

E.J. BOWMAN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 26 -
11
Investment property
Group
Company
2024
2024
£
£
Fair value
At 1 August 2023
1,363,000
1,363,000
Net gains or losses through fair value adjustments
497,000
497,000
At 31 July 2024
1,860,000
1,860,000

The investment properties were revalued at 31 July 2024 by Stratfords Commercial Chartered Surveyors and Sellers Chartered Surveyors, independent valuers not connected with the company on an open market value basis by reference to rental income, condition and market evidence of transaction prices for similar properties.

12
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
4,506
4,506
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 August 2023 and 31 July 2024
4,506
Carrying amount
At 31 July 2024
4,506
At 31 July 2023
4,506
13
Subsidiaries

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

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
E.J. Bowman (Birmingham) Limited
Suite GA, St. George's House, Lever St, Wolverhampton, WV2 1EZ
Manufacture of heat exchangers and coolers
Ordinary
100.00
E.J. Bowman Engineering Limited
Suite GA, St. George's House, Lever St, Wolverhampton, WV2 1EZ
Supply of management services
Ordinary
100.00
E.J. Bowman Leasing Limtied
Suite GA, St. George's House, Lever St, Wolverhampton, WV2 1EZ
Dormant
Ordinary
100.00
Expressway Marine Limited
Suite GA, St. George's House, Lever St, Wolverhampton, WV2 1EZ
Dormant
Ordinary
100.00
E.J. BOWMAN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 27 -
14
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials
4,809,103
4,758,802
-
-
Work in progress
1,419,928
1,114,978
-
-
Finished goods
500,852
320,289
-
0
-
0
6,729,883
6,194,069
-
-
15
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,012,454
1,993,868
32,168
54,963
Amounts owed by group undertakings
-
-
1,241,752
1,313,788
Other debtors
25,944
20,196
40
2,775
Prepayments and accrued income
104,126
87,352
-
0
-
0
2,142,524
2,101,416
1,273,960
1,371,526

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

Included with trade debtors are provisions for doubtful debts of £118,659 (2023: £118,882).

16
Current asset investments
Group
Company
2024
2023
2024
2023
£
£
£
£
Precious metal deposits
113,980
113,980
113,980
113,980

The open market value of these investments at the year end was £1,417,020 (2023: £1,149,428).

E.J. BOWMAN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 28 -
17
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
£
£
£
£
Trade creditors
324,255
474,201
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
1,155,750
11,452
Corporation tax payable
282,361
951,060
31,766
37,768
Other taxation and social security
413,780
363,268
3,429
3,429
Amounts due to shareholders
1,776,465
1,909,447
1,776,465
1,909,447
Other creditors
23,477
579,599
21,600
21,600
Accruals and deferred income
133,938
2,029,131
21,171
22,508
2,954,276
6,306,706
3,010,181
2,006,204

The amounts owed to group undertakings are unsecured, interest free, and repayable on demand.

18
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
2,952
(470,886)
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Asset at 1 August 2023
(470,886)
-
Charge to profit or loss
473,838
-
Liability at 31 July 2024
2,952
-

T he deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

19
Group - Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
166,400
141,066
E.J. BOWMAN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
19
Group - Retirement benefit schemes
(Continued)
- 29 -

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.

Defined benefit pension scheme (scheme wind-up)

The Group operated a defined benefit pension scheme, E.J. Bowman (Birmingham) Limited Retirement Benefit Scheme, which was funded by employer contributions and administered by independent trustees. The scheme provided retirement benefits based on members’ final pensionable salary and years of service.

On 31st December 2021, the trustees commenced the formal wind-up of the scheme. This decision followed the company’s closure of the scheme to future accrual.

As at the reporting date, the wind-up is ongoing. The trustees are in the process of securing members’ benefits via the purchase of annuity policies. No further defined benefit accrual is taking place, and active membership ceased.

The Group remains liable for any funding deficit during the wind-up process, however the company is in a surplus position.

Valuation and accounting

A qualified independent actuary carried out a valuation of the scheme liabilities as at 30th June 2024, updated in accordance with FRS 102. The difference between the scheme date and Group year end is immaterial. The results are summarised below:

| 2024 (£’000) | 2023 (£’000)
Bulk surrender value | 1,249 | 1,233
Indicative terminal bonus Fair value of scheme assets Present value of defined benefit obligations | 510 1,759 557 | - 1,233 567
Net defined benefit surplus | 1,202 | 666

As the wind-up process is ongoing, no settlement gain or loss has been recognised in the financial statements. A settlement adjustment will be recognised when the final liability is discharged and any surplus or deficit crystallises.

The Group has recognised a provision of £300,500 (2023: £233,100) for the estimated tax on the surplus at 25% (2023: 35%).

The actuarial gain on the defined benefit plan during the year was £468,600 which is the movement of the net defined benefit surplus totalling £536,000 and estimated tax movement on the surplus of £67,400.

Risks and uncertainties

There is material uncertainty regarding:

- The final cost of securing members’ benefits, particularly in light of fluctuating insurer pricing and discount rates.

- The timing of wind-up completion, which is currently anticipated to occur by 31st December 2025.

- The Group's ongoing liability for any shortfall, should scheme assets prove insufficient to cover the obligations in full

Contributions

No further contributions are payable in respect of future service. The Group will contribute additional funds only if required to complete the wind-up.

E.J. BOWMAN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 30 -
20
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
18,000
18,000
18,000
18,000

Ordinary shares are voting rights and ranked pari passu and have no restrictions on the distribution of dividends and repayment of capital.

21
Operating lease commitments
Lessor

At the reporting end date the group had contracted with tenants for the following minimum lease payments:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
110,500
110,500
110,500
110,500
Between two and five years
123,750
212,250
123,750
212,250
In over five years
3,667
25,667
3,667
25,667
237,917
348,417
237,917
348,417
22
Controlling party

The ultimate controlling party during the year and up to 13th November 2024 was Roger Kenneth Bowman by virtue of his shareholding in E.J. Bowman Holdings Limited.

On 13th November 2024 the entire share capital of E.J. Bowman Holdings Limited was acquired by E.J. Bowman Properties Limited at which point it had become the ultimate controlling party.

E.J. BOWMAN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 31 -
23
Cash generated from group operations
2024
2023
£
£
Profit after taxation
3,031,772
2,060,980
Adjustments for:
Taxation charged
1,011,199
406,615
Finance costs
27,963
26,611
Investment income
(56,146)
(21,597)
Loss/(gain) on disposal of tangible fixed assets
85
(16,045)
Depreciation and impairment of tangible fixed assets
46,239
56,371
Pension scheme non-cash movement
(67,400)
-
Movements in working capital:
Increase in stocks
(535,814)
(582,553)
(Increase)/decrease in debtors
(41,108)
18,929
Decrease in creditors
(2,550,749)
(200,406)
Cash generated from operations
866,041
1,748,905
24
Cash generated from operations - company
2024
2023
£
£
Profit after taxation
82,232
79,171
Adjustments for:
Taxation charged
31,766
22,690
Investment income
(1,332)
-
0
Depreciation and impairment of tangible fixed assets
20,026
6,159
Movements in working capital:
Decrease in debtors
97,566
330,170
Increase in creditors
1,142,961
8,856
Cash generated from operations
1,373,219
447,046
E.J. BOWMAN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 32 -
25
Analysis of changes in net funds - group
1 August 2023
Cash flows
31 July 2024
£
£
£
Cash at bank and in hand
5,751,195
(1,212,890)
4,538,305
26
Analysis of changes in net funds - company
1 August 2023
Cash flows
31 July 2024
£
£
£
Cash at bank and in hand
404,607
451,986
856,593
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