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Registered number: 15335463 Allen Investment Group Ltd Annual Report and Financial Statements For the year ended 30 September 2024
Allen Investment Group Ltd Company Information
Directors | B N Allen (appointed 8 December 2023)
| M C Allen (appointed 8 December 2023)
| M J Allen (appointed 8 December 2023)
| C Croucher (appointed 8 December 2023)
Registered number | 15335463
Registered office | Javelin House
| Henwood Industrial Estate
| Ashford
| Kent
| TN24 8DE
Independent auditor | Kreston Reeves Audit LLP
| Statutory Auditor
| 37 St Margaret's Street
| Canterbury
| Kent
| CT1 2TU
Allen Investment Group Ltd Contents
| Page
Group Strategic Report | 1 - 3
Directors' Report | 4 - 6
Independent Auditor's Report | 7 - 10
Consolidated Statement of Comprehensive Income | 11
Consolidated Balance Sheet | 12
Company Balance Sheet | 13
Consolidated Statement of Changes in Equity | 14
Company Statement of Changes in Equity | 15
Consolidated Statement of Cash Flows | 16
Notes to the Financial Statements | 17 - 43
Allen Investment Group Ltd Group Strategic Report For the year ended 30 September 2024
Introduction
The Directors present their Strategic Report for the year ended 30 September 2024.
Business review
Following a difficult few years for business in general, post Brexit and the Covid Pandemic, the Group has demonstrated high levels of resilience and a return to healthier trading times. Tough decisions and the implementation of strict actions plans have at times needed to be made but the strategies have delivered, as can be seen by the profitable P&L and strong Balance Sheet. Engineering Services M.J. Allen Castings and Machining Ltd has maintained strong relations with key customers in the military, medical, automotive and large diesel engine market. This work is of a demanding technical standard and places M.J. Allen Castings and Machining Ltd in a strong position going forward and places it in an area of the market with reduced competition. M.J. Allen Castings and Machining Ltd has focused on UK and European markets as well as generating opportunities from other group companies. The Directors anticipate that demand will continue at similar levels during 2024/25. The Directors continue to strive to reduce overheads and seek out financial support (by way of government backed initiatives) and increase revenue and profits and will continue to monitor the performance of M.J. Allen Castings and Machining Ltd and its overall contribution to the Group. M.J. Allen Castings and Machining Ltd invested in the installation of solar panels in 2024 which significantly reduce the electricity overhead cost as well as contribute towards sustainability. This project was rolled out over three of the Group companies, a total investment of circa £350k. IT is likely we will see further installations on the coming year. Overall sales for the Division decreased (as anticipated) by 32.2% from £9,952,763 to £6,750,356 which led to a net profit of £128,197 compared to £1,207,251 in the prior year. Structural Steelwork & Sheet Metalwork Enquiries for quotations from existing and new clients remains strong with conversion rates being maintained. Turnover decreased by 1.8% from £4,579,961 to £4,496,257, however Gross Profit improved from 18.3% to 19.7%. Operating Profit decreased from £150,713 to £149,360. The Directors are confident of a bright future for this business which maintains a strong order book and enquiries pipeline. Page 1
Allen Investment Group Ltd Group Strategic Report (continued) For the year ended 30 September 2024 Precision Engineering, Tooling & Metrology On 1st August 2023 the trade of RJW Ltd and Verdict Gauge Ltd were moved into M.J. Allen Precision Ltd alongside its existing trade. M.J Allen Precision Ltd now operates with 3 distinct divisions from its site in Swanley, Kent. The combined turnover for the three entities in this financial year was £1,467,014 compared to £1,097,771 in the prior year. There is still work to be done to improve the performance of this entity and the later part of next year will see sales bolstered when the business takes on additional operations and services some of the Groups automotive customers. Automotive Design Countytrac Ltd continues to develop its all-wheel drive transmission systems and other related projects, and has continued to write off these development costs to profit and loss in the year incurred unless specifically recoverable from the end customer. The Company receives ongoing license fee income for one of these developments from a major automotive manufacturer. A new iteration of this product, which has been developed over the last 4 years, is due to commence sale mid-2024, replacing the existing product. The new iteration will see sales and fee income supported for at least a further 8 years. Turnover has decreased by 32.5% from £1,638,370 to £1,106,244, however Net Profit has increased from £51,274 to £106,567. The automotive industry globally saw a period of reduced sales due to the Covid-19 pandemic and the war in Ukraine, causing both demand and supply chain issues. The directors are confident the license fee income and profitability will continue at similar levels with growth anticipated during 2024/25. Automotive Components M.J. Allen Automotive Ltd has suffered from the effect of the global economic climate with the wars in Ukraine and Gaza, disturbances to shipping lanes. Giving reduced certainty of raw material and energy costs. Continuing fluctuations in foreign exchange rates also give rise to uncertainty over margins to be achieved on sales overseas and the cost of purchases from overseas suppliers. Turnover remained consistent with the prior year at £23.2m, however Gross Profit improved from 12.5% to 16.6%. The Directors remain confident that the performance of M.J. Allen Automotive Ltd will improve in the coming years as cost reduction and other strategies are put in place. M.J. Allen Automotive Ltd has key long term relations with customers and suppliers and continues to develop new opportunities with extensions to its product range and in particular, the directors continue to target growth in export sales. Global raw material cost movements remain a concern, as do increased costs resulting from adverse currency fluctuations. The Directors have secured short term supply contracts for shipping containers. The Directors will continue to monitor the performance of M.J. Allen Automotive Ltd and its overall contribution to the Group, and remain committed in their efforts to maintain the profitability of M.J. Allen Automotive Ltd. Page 2
Allen Investment Group Ltd Group Strategic Report (continued) For the year ended 30 September 2024
Principal risks and uncertainties
The directors believe the main uncertainties faced by the company arise from the current economic climate. The war in Ukraine and troubled global shipping lanes bring uncertainty over costs and lead times. Since the Balance Sheet date President Trump has announced his trade tariffs which, among other things, have caused wide foreign exchange fluctuations which also add an element of risk and uncertainty. Going Concern The Company shares finance facilities with other Allen Group companies. Finance is provided to and from the Company via an intercompany loan account. In 2021 the Company had secured additional loan facilities as more detailed in note 2.4 of the financial statements. The Company has confirmed that it will continue to provide any financial support required by the subsidiaries. Consequently, and given the Company and Groups strong net asset position at the period end, the Directors have no doubt that the Company and Group is well placed to manage its business risks successfully despite the current uncertain global economic outlook. Accordingly, it remains appropriate to prepare the financial statements on a going concern basis.
Financial key performance indicators
Overall Group turnover has decreased by 9.9% from £40.9m to £36.8m, and Group net profit before taxation has increased from a loss in 2023 of £51,955 to a profit of £56,474. The Directors are pleased with the overall Group performance through 2023/24 which shows a marked turnaround from the previous year. In particular they are pleased to see the good result at Castings and Machining after the implementation of a recovery plan. The Directors remain positive and are confident that the continued investment and measures taken in its operating companies to reduce cost and improve revenue will result in continued growth. Weaker businesses in the Group will continue to be the focus of attention as we strive to have all companies in profit. This report was approved by the board and signed on its behalf.
C Croucher Director
Date: 14 November 2025
Page 3
Allen Investment Group Ltd Directors' Report For the year ended 30 September 2024 The Directors present their report and the financial statements for the year ended 30 September 2024.
Directors' responsibilities statement
The Directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 Group and of the profit or loss of the Group for that period. In preparing these financial statements, the Directors are required to: ∙select suitable accounting policies for the Group's financial statements 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 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 the Group and to 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Group's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements and other information included in Directors' Reports may differ from legislation in other jurisdictions.
Principal activity
The Company’s principal activity during the year continued to be the provision of group services as a holding company to the Allen Group of Companies listed in note 16 to the financial statements. The subsidiary companies are principally involved in the provision of engineering services and manufacturing.
Results and dividends
The loss for the year, after taxation and minority interests, amounted to £235,355 (2023 - loss £156,737). During the year the directors declared a dividend of £87,831 (2023 - £35,000).
Directors
The Directors who served during the year were:
B N Allen (appointed 8 December 2023)
M C Allen (appointed 8 December 2023)
M J Allen (appointed 8 December 2023)
C Croucher (appointed 8 December 2023)
Page 4
Allen Investment Group Ltd Directors' Report (continued) For the year ended 30 September 2024
Health and safety of employees
The well-being of the Group’s employees is safeguarded through strict adherence to health and safety standards. The Safety, Health and Welfare at Work Act 1989 imposes certain requirements on employers and the Group has taken the necessary action to ensure compliance with the Act, including the adoption of a Safety Statement.
Future developments
The Group continues to seek new customers for high quality, profitable work and continues to benefit from excellent relationships with its existing customers and suppliers. In particular, the Group continues to benefit from the on-going production of components for its automotive transmission products developed by Countytrac Ltd, and licence fee income for these products, whilst also exploring further development opportunities in this sector. M.J. Allen Metalwork Ltd continue to develop new opportunities for architectural and structural metalwork projects. M.J. Allen Automotive Ltd has suffered the loss of a contract in 2025 but continues to develop its product range which the Director’s feel will bridge the gap. The Group will also continue to develop its customer and supplier relationships to further enhance its supply chain and maintain efficient pricing and availability.
Financial risk management
The Group's financial risk management policies are designed to reduce the risk of liquidity and credit risk exposure. The Group's principal financial instruments comprise cash at bank, trade debtors and creditors. The Group manages its cash flow to ensure it has sufficient funds to meet its liabilities as they fall due for payment, whilst at the same time operating within agreed bank facilities. Trade debtors are monitored on an on-going basis and at the year end there are no significant concerns of credit risk in the Group. Price risk, credit risk, liquidity risk and cash flow risk The Directors believe the main uncertainties faced by the group arise from the current economic climate and reduced visibility and certainty of forward order schedules. This also causes the Directors to believe that there may be an increased risk of customers failing financially and the amounts attributable to trade receivables in the balance sheet are net of doubtful debts. Continuing fluctuations in foreign exchange rates also give rise to uncertainty over margins to be achieved on sales overseas and the cost of purchases from overseas suppliers. The Group uses foreign exchange contracts and interest rate swaps to hedge these expenses and these have now been included in the accounts. In order to maintain liquidity and to ensure that sufficient funds are available for ongoing operations and future developments the group use a mixture of long term and short term debt finance.
Research and development activities
The Group's activities do not generally involve significant research and development expenditure, except for the continued work undertaken by a subsidiary undertaking in connections with a range of machine tool products and the development of transmission systems for the automotive industry.
Engagement with employees
The Group operates a framework for employee information and consultation. Regular meetings are held between local management and employees to allow a free flow of information and ideas.
Disabled employees
The Group gives full consideration to applications for employment from disabled persons where the candidate’s particular aptitudes and abilities are consistent with adequately meeting the requirements of the job. Opportunities are available to disabled employees for training, career development and promotion. Where existing employees become disabled, it is the group’s policy to provide continuing employment wherever practicable in the same or an alternative position and to provide appropriate training to achieve this aim. Page 5
Allen Investment Group Ltd Directors' Report (continued) For the year ended 30 September 2024
Greenhouse gas emissions, energy consumption and energy efficiency action
The Group has not disclosed information in respect of greenhouse gas emissions, energy consumption and energy efficiency action as the subsidiary undertakings are not required to prepare this information. The Company's energy consumption is also 40,000kWh or lower.
Matters covered in the Group Strategic Report
To comply with the Companies Act 2006, the company provides in the Strategic Report, a review of the development and performance of the Group during the year, including key performance indicators, a description of the principal risks and uncertainties facing the Group and future developments.
Disclosure of information to auditor
Each of the persons who are Directors at the time when this Directors' Report is approved has confirmed that: ∙so far as the Director is aware, there is no relevant audit information of which the Company and the Group's auditor is unaware, and ∙the Director has taken all the steps that ought to have been taken as a Director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditor is aware of that information.
Post balance sheet events
There have been no significant events affecting the Group since the year end.
Auditor
The audit registration of Kreston Reeves LLP was transferred to Kreston Reeves Audit LLP on 6 October 2025. Kreston Reeves Audit LLP were formally appointed as auditor to the company on 6 October 2025. Under section 487(2) of the Companies Act 2006, Kreston Reeves Audit LLP will be deemed to have been reappointed as auditor 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier. This report was approved by the board and signed on its behalf.
C Croucher Director
Date: 14 November 2025
Page 6
Allen Investment Group Ltd Independent Auditor's Report to the Members of Allen Investment Group Ltd
Opinion
We have audited the financial statements of Allen Investment Group Ltd (the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 30 September 2024, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity 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 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 of the Parent Company's affairs as at 30 September 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 in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the Directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the Parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report. Page 7
Allen Investment Group Ltd Independent Auditor's Report to the Members of Allen Investment Group Ltd (continued)
Other information
The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's Report thereon. The Directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Opinion 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 Group 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 Group 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 Group and the Parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 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 directors
As explained more fully in the Directors' Responsibilities Statement set out on page 4, 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 Group's and the Parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Group or the Parent Company or to cease operations, or have no realistic alternative but to do so. Page 8
Allen Investment Group Ltd Independent Auditor's Report to the Members of Allen Investment Group Ltd (continued)
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 Group 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: Capability of the audit in detecting irregularities, including fraud Based on our understanding of the Group and industry, and through discussion with the Directors and other management (as required by auditing standards), we identified the principal risks of non-compliance with laws and regulations related to health and safety, anti-bribery and employment law. We considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and taxation legislation. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to management override. Audit procedures performed by the engagement team included: ∙Detailed discussions were held with management to identify any known or suspected instances of non-compliance with laws and regulations and fraud, and review of the reports made by management; and ∙Assessment of identified fraud risk factors; and ∙The engagement team were made aware of the identified laws and regulations to ensure they remained alert to any indications of non-compliance throughout their audit procedures; and ∙Performing analytical procedures to identify unusual or unexpected relationships that may indicate risk of material misstatement due to fraud; and ∙Confirmation of related parties with management, and review of transactions throughout the period to identify any previously undisclosed transactions with related parties outside the normal course of business; and ∙Review of significant and unusual transactions with related parties outside the normal course of business; and ∙Identifying and testing journal entries, in particular any manual entries made at the year end for financial statement preparation. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a 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. Page 9
Allen Investment Group Ltd Independent Auditor's Report to the Members of Allen Investment Group Ltd (continued) As part of an audit in accordance with ISAs (UK), we exercise professional judgement 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 of the effectiveness of the Company's 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. ∙Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion. 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. Tracey Becker (Senior Statutory Auditor) for and on behalf of Kreston Reeves Audit LLP Statutory Auditor Canterbury 14 November 2025 Page 10
Allen Investment Group Ltd Consolidated Statement of Comprehensive Income For the year ended 30 September 2024
| 2024 | 2023
Note | £ | £
Turnover | 4 | 36,878,633 | 40,940,667
Cost of sales |  | (29,033,649) | (33,173,303)
Gross profit |  | 7,844,984 | 7,767,364
Distribution costs |  | (2,954,675) | (2,892,568)
Administrative expenses |  | (4,694,916) | (3,252,839)
Other operating income | 5 | - | 7,372
Fair value movements |  | 640,146 | (1,001,236)
Operating profit | 6 | 835,539 | 628,093
Interest receivable and similar income | 10 | - | 15
Interest payable and similar expenses | 11 | (779,065) | (680,063)
Profit/(loss) before taxation |  | 56,474 | (51,955)
Tax on profit/(loss) | 12 | (281,172) | (99,655)
Loss for the financial year |  | (224,698) | (151,610)
Unrealised surplus on revaluation of tangible fixed assets |  | - | 873,055
Other comprehensive income for the year |  | - | 873,055
Total comprehensive income for the year |  | (224,698) | 721,445
(Loss) for the year attributable to: |  |  |
Non-controlling interests |  | 10,657 | 5,127
Owners of the parent Company |  | (235,355) | (156,737)
|  | (224,698) | (151,610)
Total comprehensive income for the year attributable to: |  |  |
Non-controlling interest |  | 10,657 | 5,127
Owners of the parent Company |  | (235,355) | 716,318
|  | (224,698) | 721,445
There were no recognised gains and losses for 2024 or 2023 other than those included in the consolidated statement of comprehensive income.
The notes on pages 17 to 43 form part of these financial statements.
Page 11
Allen Investment Group Ltd Registered number: 15335463 Consolidated Balance Sheet As at 30 September 2024
|  | 2024 |  | 2023
Note |  | £ |  | £
Fixed assets |  |  |  |  |
Intangible assets | 14 |  | 269,216 |  | 280,343
Tangible assets | 15 |  | 10,369,658 |  | 10,628,644
|  |  | 10,638,874 |  | 10,908,987
Current assets |  |  |  |  |
Stocks | 17 | 11,491,781 |  | 13,132,265 |
Debtors: amounts falling due within one year | 18 | 8,018,751 |  | 9,765,923 |
Cash at bank and in hand | 19 | 1,409,444 |  | 1,096,673 |
|  | 20,919,976 |  | 23,994,861 |
Creditors: amounts falling due within one year | 20 | (16,223,588) |  | (16,263,975) |
Net current assets |  |  | 4,696,388 |  | 7,730,886
Total assets less current liabilities |  |  | 15,335,262 |  | 18,639,873
Creditors: amounts falling due after more than one year | 21 |  | (1,027,555) |  | (2,910,083)
Provisions for liabilities |  |  |  |  |
Other provisions | 25 | (16,980) |  | (17,450) |
|  |  | (16,980) |  | (17,450)
Net assets |  |  | 14,290,727 |  | 15,712,340
Capital and reserves |  |  |  |  |
Called up share capital | 26 |  | 4,313 |  | 4,313
Revaluation reserve | 27 |  | 987,342 |  | 1,680,987
Merger reserve | 27 |  | (1,097,247) |  | 11,837
Profit and loss account | 27 |  | 14,123,812 |  | 13,753,353
Equity attributable to owners of the parent Company |  |  | 14,018,220 |  | 15,450,490
Non-controlling interests |  |  | 272,507 |  | 261,850
|  |  | 14,290,727 |  | 15,712,340
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
B N Allen | C Croucher
Director | Director
Date: 14 November 2025 |
The notes on pages 17 to 43 form part of these financial statements. Page 12
Allen Investment Group Ltd Registered number: 15335463 Company Balance Sheet As at 30 September 2024
|  | 2024
Note |  | £
Fixed assets |  |  |
Investments | 16 |  | 1,256,259
Current assets |  |  |
Debtors: amounts falling due within one year | 18 | 5 |
Cash at bank and in hand | 19 | 169 |
|  | 174 |
Creditors: amounts falling due within one year | 20 | (583,036) |
Net current (liabilities)/assets |  |  | (582,862)
Total assets less current liabilities |  |  | 673,397
Creditors: amounts falling due after more than one year | 21 |  | (749,121)
Net (liabilities)/assets |  |  | (75,724)
Capital and reserves |  |  |
Called up share capital | 26 |  | 4,313
Profit and loss account | 27 |  | (80,037)
|  |  | (75,724)
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
B N Allen | C Croucher
Director | Director
Date: 14 November 2025 |
The notes on pages 17 to 43 form part of these financial statements. Page 13

|  | Allen Investment Group Ltd |
Consolidated Statement of Changes in Equity For the year ended 30 September 2024
|  | Called up share capital | Revaluation reserve | Merger reserve | Profit and loss account | Equity attributable to owners of Parent Company | Non-controlling interests | Total equity
|  | £ | £ | £ | £ | £ | £ | £
| At 1 October 2022 | 4,313 | 807,932 | 11,837 | 13,945,090 | 14,769,172 | 256,723 | 15,025,895
| Loss for the year | - | - | - | (156,737) | (156,737) | 5,127 | (151,610)
| Surplus on revaluation of freehold property | - | 873,055 | - | - | 873,055 | - | 873,055
| Dividends: Equity capital | - | - | - | (35,000) | (35,000) | - | (35,000)
| At 1 October 2023 | 4,313 | 1,680,987 | 11,837 | 13,753,353 | 15,450,490 | 261,850 | 15,712,340
| Loss for the year | - | - | - | (235,355) | (235,355) | 10,657 | (224,698)
| Dividends: Equity capital | - | - | - | (87,831) | (87,831) | - | (87,831)
| Transfer to/from profit and loss account | - | (693,645) | - | 693,645 | - | - | -
| Group reorganisation | - | - | (1,109,084) | - | (1,109,084) | - | (1,109,084)
| At 30 September 2024 | 4,313 | 987,342 | (1,097,247) | 14,123,812 | 14,018,220 | 272,507 | 14,290,727
| The notes on pages 17 to 43 form part of these financial statements.
Page 14

Allen Investment Group Ltd Company Statement of Changes in Equity For the year ended 30 September 2024
| Called up share capital | Profit and loss account | Total equity
| £ | £ | £
At 8 December 2023 | - | - | -
Profit for the period | - | 7,794 | 7,794
Dividends: Equity capital | - | (87,831) | (87,831)
Shares issued during the year | 4,313 | - | 4,313
At 30 September 2024 | 4,313 | (80,037) | (75,724)
| The notes on pages 17 to 43 form part of these financial statements.
Page 15
Allen Investment Group Ltd Consolidated Statement of Cash Flows For the year ended 30 September 2024
|  |  | 2024 | 2023
|  |  | £ | £
Cash flows from operating activities |  |
Profit/(loss) for the financial year | (224,698) | (151,610)
Adjustments for: |  |
Amortisation of intangible assets | 14,662 | 10,379
Depreciation of tangible assets | 995,336 | 1,064,417
Loss on disposal of tangible assets | (29,728) | (53,561)
Interest paid | 779,065 | 680,063
Interest received | - | (15)
Taxation charge | 281,172 | 99,655
Decrease in stocks | 1,640,484 | 1,356,627
Decrease/(increase) in debtors | 1,466,000 | (534,512)
Increase/(decrease) in creditors | 275,552 | (2,312,194)
(Decrease)/increase in provisions | (470) | -
Net fair value (gains)/losses recognised in P&L | (640,146) | 1,001,236
Corporation tax received | 945 | 2,450
Net cash generated from operating activities | 4,558,174 | 1,162,935
Cash flows from investing activities |  |
Purchase of intangible fixed assets | (3,535) | (6,907)
Purchase of tangible fixed assets | (763,188) | (289,841)
Sale of tangible fixed assets | 56,566 | 92,484
Interest received | - | 15
Net cash from investing activities | (710,157) | (204,249)
Cash flows from financing activities |  |
Repayment of loans | (2,129,319) | (230,798)
Repayment of finance leases | (351,294) | (296,981)
Dividends paid | (87,831) | (35,000)
Interest paid | (673,226) | (680,063)
HP interest paid | (25,802) | -
Net cash used in financing activities | (3,267,472) | (1,242,842)
Net increase/(decrease) in cash and cash equivalents | 580,545 | (284,156)
Cash and cash equivalents at beginning of year | (164,091) | 120,065
Cash and cash equivalents at the end of year | 416,454 | (164,091)
Cash and cash equivalents at the end of year comprise: |  |
Cash at bank and in hand | 1,409,444 | 1,096,673
Bank overdrafts | (992,990) | (1,260,764)
| 416,454 | (164,091)
The notes on pages 17 to 43 form part of these financial statements.
Page 16
Allen Investment Group Ltd Notes to the Financial Statements For the year ended 30 September 2024
1. | General information
Allen Investment Group Ltd is a private company limited by share capital and incorporated in England and Wales with the registration number 15335463. The address of the Company's registered office and principal place of business is Javelin House, Henwood Industrial Estate, Ashford, Kent, United Kingdom, TN24 8DE. The Company’s principal activity is the provision of group services as a holding company to the Group. The subsidiary companies are principally involved in the provision of engineering services and manufacturing. 2.Accounting policies
| 2.1 | Basis of preparation of financial statements
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006. The financial statements have been rounded to the nearest pound. The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3). The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. The financial statements of the Company are prepared from the date of incorporation on 8 December 2023 to 30 September 2024; as such, no comparative figures are provided. Parent Company disclosure exemptions In preparing the separate financial statements of the parent Company, advantage has been taken of the following disclosure exemptions available in FRS 102: ∙No disclosures have been given for the aggregate remuneration of the key management personnel of the parent Company as their remuneration is included in the totals for the Group as a whole. The following principal accounting policies have been applied:
| 2.2 | Basis of consolidation
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full. The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases. Page 17
Allen Investment Group Ltd Notes to the Financial Statements For the year ended 30 September 2024 2.Accounting policies (continued)
| 2.3 | Merger accounting
On 11 December 2023, under a share for share exchange arrangement with the shareholders of M.J. Allen Holdings Limited, the Company became the new holding company of the Group. The share for share exchange is treated as a capital reconstruction. As a consequence for the year ended 30 September 2024, merger accounting principals have been applied.
| 2.4 | Going concern
The financial statements have been prepared on a going concern basis. The Group and Company's forecasts and projections taking account of reasonably possible changes in trading performance, show that the Group and Company should be able to operate within the level of its facilities. The Group has an invoice finance facility and shares certain other finance facilities within the Group. Finance is provided between Group companies via intercompany loan accounts. Given the Group's strong net asset position at the period end the Directors have no doubt that the Group is well placed to manage its business risks successfully despite the current uncertain global economic outlook. Accordingly, it remains appropriate to prepare the financial statements on a going concern basis. The Directors have a reasonable expectation that the Group and Company have adequate resources to continue in operational existence for the foreseeable future.
| 2.5 | Foreign currency translation
Functional and presentation currency The Company's functional and presentational currency is GBP. Transactions and balances Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions. At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined. Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges. Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'. Page 18
Allen Investment Group Ltd Notes to the Financial Statements For the year ended 30 September 2024 2.Accounting policies (continued)
| 2.6 | Revenue
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised: Sale of goods Revenue from the sale of goods is recognised when all of the following conditions are satisfied: ∙the Group has transferred the significant risks and rewards of ownership to the buyer; ∙the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; ∙the amount of revenue can be measured reliably; ∙it is probable that the Group will receive the consideration due under the transaction; and ∙the costs incurred or to be incurred in respect of the transaction can be measured reliably. Rendering of services Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied: ∙the amount of revenue can be measured reliably; ∙it is probable that the Group will receive the consideration due under the contract; ∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and ∙the costs incurred and the costs to complete the contract can be measured reliably.
| 2.7 | Operating leases: the Group as lessee
Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term. Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
| 2.8 | Leased assets: the Group as lessee
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.
| 2.9 | Research and development
Internal research and development costs are written off directly to the Statement of Comprehensive Income in the period in which they are incurred. Page 19
Allen Investment Group Ltd Notes to the Financial Statements For the year ended 30 September 2024 2.Accounting policies (continued)
| 2.10 | Interest income
Interest income is recognised in profit or loss using the effective interest method.
| 2.11 | Finance costs
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
| 2.12 | Pensions
Defined contribution pension plan The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations. The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Group in independently administered funds.
| 2.13 | Current and deferred taxation
The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively. The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income. Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that: ∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; ∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and ∙Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future. Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date. Page 20
Allen Investment Group Ltd Notes to the Financial Statements For the year ended 30 September 2024 2.Accounting policies (continued)
| 2.14 | Intangible assets
Goodwill Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated Statement of Comprehensive Income over its useful economic life. Other intangible assets Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount. All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years. Amortisation is provided on the following bases:
|  |  |  | Patents | - |  | 5% - 20% straight line
|  |  |  | Goodwill | - |  | 10% - 50% straight line
| 2.15 | Tangible fixed assets
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. At each reporting date the Group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount. The Group adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Group. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred. Page 21
Allen Investment Group Ltd Notes to the Financial Statements For the year ended 30 September 2024 2.Accounting policies (continued)
| 2.15 | Tangible fixed assets (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method. Depreciation is provided on the following basis:
|  |  |  | Freehold property | - | 2% on valuation
|  |  |  | Long-term leasehold property | - | 2%
|  |  |  | Plant and machinery | - | 15% - 50%
|  |  |  | Motor vehicles | - | 25%
|  |  |  | Fixtures and fittings | - | 15% - 20%
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
| 2.16 | Revaluation of tangible fixed assets
Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date. Fair values are determined from market based evidence normally undertaken by professionally qualified valuers. Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.
| 2.17 | Valuation of investments
Investments in subsidiaries are measured at cost less accumulated impairment.
| 2.18 | Stocks
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads. At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
| 2.19 | Debtors
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment. Page 22
Allen Investment Group Ltd Notes to the Financial Statements For the year ended 30 September 2024 2.Accounting policies (continued)
| 2.20 | Cash and cash equivalents
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value. In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.
| 2.21 | Creditors
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
| 2.22 | Invoice discounting
The Group is party to an invoice discounting arrangement for certain of its debts. The full value of trade debtors are included in trade debtors and the proceeds received from discounting are included as debt factoring in debtors or creditors and are secured on the trade debtor balances and stock. Invoice discounting charges are recognised in the Statement of Comprehensive Income account as they accrue.
| 2.23 | Provisions for liabilities
Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made. Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties. Increases in provisions are generally charged as an expense to profit or loss.
| 2.24 | Financial instruments
The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” 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, with 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 trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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. Page 23
Allen Investment Group Ltd Notes to the Financial Statements For the year ended 30 September 2024 2.Accounting policies (continued)
| 2.24 | Financial instruments (continued)
Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments. Other financial assets Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment. Impairment of financial assets At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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. Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate. If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss. Basic 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 the deduction of all its liabilities. Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial. Debt instruments are subsequently carried at their amortised cost using the effective interest rate method. Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial. Page 24
Allen Investment Group Ltd Notes to the Financial Statements For the year ended 30 September 2024 2.Accounting policies (continued)
| 2.24 | Financial instruments (continued)
Other financial instruments Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss. Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy. Derecognition of financial instruments Derecognition of financial assets Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained. Derecognition of financial liabilities Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.
| 2.25 | Dividends
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting. Page 25
Allen Investment Group Ltd Notes to the Financial Statements For the year ended 30 September 2024
3. | Judgements in applying accounting policies and key sources of estimation uncertainty
In the application of the group's accounting policies, which are described in note 2, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. Judgements Stock valuation All stock of raw materials, work in progress and finished goods are generally valued using direct costs and an appropriate proportion of fixed and variable overheads. The directors consider this reasonable given that they incur direct costs in the production of work in progress and finished goods. In some of the subsidiary companies, raw materials are valued on a weighted average basis and the directors deem this to be appropriate due to the metal price fluctuations. In one of the subsidiary companies, all raw materials are valued on a weighted average basis. The directors have chosen this method because raw materials are purchased in bulk every few years and a significant amount of finished goods are purchased from China. This means that the price of these goods fluctuates and therefore the weighted average method accounts for this. Finished goods are valued at the material's cost. The directors deem this to be the most appropriate value for finished goods. In some of the subsidiary companies, work in progress is valued based on costs incurred for the operations that have been completed plus a standard overhead absorption rate. The directors consider this as the most appropriate method as it recognises the costs as they are incurred for the job in progress. Finished goods are also valued based on direct cost plus a standard overhead absorption rate. The directors consider this as the most appropriate method as it recognises the actual costs as they are incurred plus the expected time and overheads incurred in producing the finished good product. Goodwill The group has recognised goodwill arising from business combinations and purchase of trading assets (see note 14) with a carrying value of £238,107 at the reporting date (2023 - £246,532). On acquisition the group determined a reliable estimate of the useful life of goodwill based upon factors such as the expected use of the acquired businesses, forecasts of expected future results and cash flows, and any legal, regulatory or contractual provisions that can limit useful life. At each subsequent reporting date the directors consider whether there are any factors such as changes in market conditions that indicate a need to reconsider the useful life of goodwill. Page 26
Allen Investment Group Ltd Notes to the Financial Statements For the year ended 30 September 2024 3.Judgements in applying accounting policies (continued) The group considers whether goodwill is impaired. Where an indication of impairment is identified the estimation of recoverable value requires estimation of the recoverable value of the cash generating units (CGUs). This requires estimation of the future cash flows from the CGUs and also selection of appropriate discount rates in order to calculate the net present values of those cash flows. Application of merger accounting The directors have exercised judgement in determining that the conditions set out in FRS 102 paragraph 19.27 for applying merger accounting have been met. This conclusion was based on the fact that the ultimate equity holders remain substantially the same and their rights relative to each other have not materially changed as a result of the group reconstruction. Consequently, the assets and liabilities of the combining entities have been recognised at their existing carrying amounts rather than fair value, and no goodwill has been recognised. Key sources of estimation uncertainty Stock provisions The Group has a policy of only recognising a stock provision when the quantity of stock held is greater than the sales of that item in the previous two years. In making this judgement the Group considers that all products less than one year old can be sold for at least more than cost and are not included in the provision. Management deem this estimate to be appropriate and the carrying amount of the stock provision is £852,946 (2023 - £779,313). Deferred tax asset The Group recognises a deferred tax asset on the basis that it is probable that the asset will be recovered (see note 25). The directors review their budgets for taxable profits in future years and calculate how much of the tax losses brought forward they consider to be able to be utilised within the foreseeable future. The directors have considered when taxable profit will be generated and then applied the applicable rate. As the directors deem that taxable profits in 2025 and 2026 will exceed taxable losses carried forward they have deemed it appropriate for the deferred tax asset to be calculated at a rate of 25%. At the year end the deferred tax asset provided for is £187,548 (2023 - £468,720). Deferred consideration The group has recognised a liability in respect of deferred cash consideration payable to former shareholders of M.J. Allen Holdings Ltd. The initial measurement of this liability required estimation of: i) Future cash flows based on forecast group profits, which determine the timing and amount of payments; and ii) Discount rate applied to present value these cash flows. The discount rate (10.5%–12%) was determined with reference to current borrowing rates, adjusted for security, term, and risk factors associated with the arrangement. Changes in these assumptions could materially affect the carrying amount of the liability and related interest expense. Page 27
Allen Investment Group Ltd Notes to the Financial Statements For the year ended 30 September 2024
4. | Turnover
| An analysis of turnover by class of business is as follows:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Product sales | 30,128,277 | 34,207,640
| Foundry and engineering | 6,750,356 | 6,733,027
|  | 36,878,633 | 40,940,667
Analysis of turnover by country of destination:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| United Kingdom | 30,832,268 | 31,797,701
| Rest of Europe | 6,046,365 | 9,142,966
|  | 36,878,633 | 40,940,667
5. | Other operating income
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Net rents receivable | - | 7,372
6. | Operating profit
| The operating profit is stated after charging:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Research & development charged as an expense | 196,114 | 889,656
| Exchange differences | 409,496 | 292,958
| Other operating lease rentals | 590,858 | 454,831
| Profit on disposal of fixed assets | (28,343) | (53,561)
| Fair value movements on derivative financial instruments | (640,146) | 1,001,236
Page 28
Allen Investment Group Ltd Notes to the Financial Statements For the year ended 30 September 2024
7. | Auditor's remuneration
| During the year, the Group obtained the following services from the Company's auditor and its associates:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Fees payable to the Company's auditor and its associates for the audit of the consolidated and parent Company's financial statements | 85,500 | 82,050
| Fees payable to the Company's auditor and its associates in respect of: |  |
| Taxation compliance services | 17,600 | 9,750
| All non-audit services not included above | 11,800 | 12,250
8. | Employees
| Staff costs, including Directors' remuneration, were as follows:
|  | Group | Group
|  | 2024 | 2023
|  | £ | £
| Wages and salaries | 7,191,153 | 6,930,777
| Social security costs | 658,650 | 955,167
| Cost of defined contribution scheme | 290,822 | 424,293
|  | 8,140,625 | 8,310,237
| The average monthly number of employees, including the Directors, during the year was as follows:
|  |  | 2024 | 2023
|  |  | No. | No.
|  | Manufacturing | 199 | 211
|  | Administration | 44 | 45
|  |  | 243 | 256
Page 29
Allen Investment Group Ltd Notes to the Financial Statements For the year ended 30 September 2024
9. | Directors' remuneration
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Directors' emoluments | 264,911 | 184,752
| Group contributions to defined contribution pension schemes | 25,250 | 25,110
|  | 290,161 | 209,862
| During the year retirement benefits were accruing to 3 Directors (2023 - 3) in respect of defined contribution pension schemes.
| The highest paid Director received remuneration of £88,095 (2023 - £73,055).
| The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid Director amounted to £5,250 (2023 - £5,110).
10. | Interest receivable
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Other interest receivable | - | 15
11. | Interest payable and similar expenses
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Bank interest payable | 494,276 | 403,836
| Unwind of discounting | 80,037 | -
| Finance leases and hire purchase contracts | 25,802 | 27,566
| Other interest payable | 178,950 | 248,661
|  | 779,065 | 680,063
Page 30
Allen Investment Group Ltd Notes to the Financial Statements For the year ended 30 September 2024
12. | Taxation
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Current tax on profits for the year | - | -
| Total current tax | - | -
| Deferred tax |  |
| Origination and reversal of timing differences | 281,172 | 99,655
| Total deferred tax | 281,172 | 99,655
|  | 281,172 | 99,655
| Factors affecting tax charge for the year
| The tax assessed for the year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 22.01%). The differences are explained below:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Profit/(loss) on ordinary activities before tax | 56,474 | (51,955)
| Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 22.01%) | 14,119 | (11,435)
| Effects of: |  |
| Expenses not deductible for tax purposes | 70,051 | 31,721
| Capital allowances for year in excess of depreciation | 16,499 | 2,002
| Utilisation of tax losses | - | (34,824)
| Short-term timing difference leading to an increase (decrease) in taxation | 173,151 | 72,759
| Other timing differences leading to an increase (decrease) in taxation | 4,336 | (948)
| Adjustment in research and development tax credit leading to an increase (decrease) in the tax charge | (25,800) | (99,570)
| Deferred tax recognised on freehold property revaluations | 180,425 | -
| Deferred tax not recognised | (19,371) | 98,512
| Unrelieved tax losses carried forward | (132,238) | -
| Remeasurement of deferred tax for changes in tax rates | - | 41,438
| Total tax charge for the year | 281,172 | 99,655
| Factors that may affect future tax charges
At the end of the reporting period, the Group had unutilised tax losses of £10,508,668 (2023 - £10,310,317) available for offset against future profits. Page 31
Allen Investment Group Ltd Notes to the Financial Statements For the year ended 30 September 2024
13. | Dividends
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Dividends on Ordinary share capital | 87,831 | 35,000
| Following the dividend paid during the year, the Company has a deficit on its profit and loss reserve. No further dividends will be paid until adequate reserves are confirmed.
14. | Intangible assets
| Group
|  | Patents and trademarks | Goodwill | Total
|  | £ | £ | £
| Cost |  |  |
| At 1 October 2023 | 222,839 | 457,596 | 680,435
| Additions | 3,535 | - | 3,535
| At 30 September 2024 | 226,374 | 457,596 | 683,970
| Amortisation |  |  |
| At 1 October 2023 | 189,028 | 211,064 | 400,092
| Charge for the year | 6,237 | 8,425 | 14,662
| At 30 September 2024 | 195,265 | 219,489 | 414,754
| Net book value |  |  |
| At 30 September 2024 | 31,109 | 238,107 | 269,216
| At 30 September 2023 | 33,811 | 246,532 | 280,343
| Goodwill relates to the acquisition of a number of engineering businesses by UK subsidiary companies in previous periods.
Page 32
Allen Investment Group Ltd Notes to the Financial Statements For the year ended 30 September 2024
15. | Tangible fixed assets
| Group
|  | Freehold property | Long-term leasehold property | Plant and machinery | Motor vehicles | Fixtures and fittings | Total
|  | £ | £ | £ | £ | £ | £
| Cost or valuation |  |  |  |  |  |
| At 1 October 2023 | 7,965,000 | 91,695 | 11,714,471 | 294,602 | 1,216,417 | 21,282,185
| Additions | 8,528 | 337,129 | 250,629 | 71,250 | 95,652 | 763,188
| Disposals | - | - | (1,683,640) | (105,697) | - | (1,789,337)
| At 30 September 2024 | 7,973,528 | 428,824 | 10,281,460 | 260,155 | 1,312,069 | 20,256,036
| Depreciation |  |  |  |  |  |
| At 1 October 2023 | - | 17,419 | 9,438,202 | 217,614 | 980,306 | 10,653,541
| Charge for the year on owned assets | 159,308 | 27,713 | 693,195 | 35,334 | 95,052 | 1,010,602
| Charge for the year on financed assets | - | - | (15,266) | - | - | (15,266)
| Disposals | - | - | (1,662,875) | (99,624) | - | (1,762,499)
| At 30 September 2024 | 159,308 | 45,132 | 8,453,256 | 153,324 | 1,075,358 | 9,886,378
| Net book value |  |  |  |  |  |
| At 30 September 2024 | 7,814,220 | 383,692 | 1,828,204 | 106,831 | 236,711 | 10,369,658
| At 30 September 2023 | 7,965,000 | 74,276 | 2,276,269 | 76,988 | 236,111 | 10,628,644
| The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Plant and machinery | 416,025 | 1,037,824
| Motor vehicles | 37,156 | -
|  | 453,181 | 1,037,824
| Freehold property revaluation
The freehold land and buildings valuations are undertaken either by the directors who have used their knowledge of the current market values to obtain the valuations or independent valuers. Page 33
Allen Investment Group Ltd Notes to the Financial Statements For the year ended 30 September 2024 15.Tangible fixed assets (continued)
| If the freehold property had not been included at valuation they would have been included under the historical cost convention as follows:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Group |  |
| Cost | 7,149,996 | 7,149,996
| Accumulated depreciation | (1,600,585) | (1,457,585)
| Net book value | 5,549,411 | 5,692,411
16. | Fixed asset investments
| Company
|  | Investments in subsidiary companies
|  | £
| Cost |
| At 1 October 2023 | -
| Additions | 1,256,259
| At 30 September 2024 | 1,256,259
| During the period, following a reorganisation of the Group as described at Note 2.3, the Company has acquired the entire share capital of M.J. Allen Holdings Limited. The aggregate consideration payable comprised 4,308 Ordinary shares in the Company, plus initial cash consideration of £350,000, deferred cash consideration of £3,150,000 (with a present value of £759,084), and associated legal costs of £142,867. The deferred cash consideration is payable as described in Note 21.
| Direct subsidiary undertaking
| The following was a direct subsidiary undertaking of the Company:
| Name | Class of shares | Holding
| M.J. Allen Holdings Limited | Ordinary | 100%
Page 34
Allen Investment Group Ltd Notes to the Financial Statements For the year ended 30 September 2024
| Indirect subsidiary undertakings
| The following were indirect subsidiary undertakings of the Company:
| Name | Class of shares | Holding
| M.J. Allen Automotive Ltd | Ordinary | 100%
| M.J. Allen Precision Ltd | Ordinary | 100%
| M.J. Allen Castings and Machining Ltd | Ordinary | 100%
| M.J. Allen Metalwork Ltd | Ordinary | 100%
| Countytrac Limited | Ordinary | 90%
| Verdict Gauge Limited | Ordinary | 100%
| R.J.W. Limited | Ordinary | 100%
| Probite Performance Ltd | Ordinary | 100%
| The registered office for all the above companies is Javelin House, Henwood Industrial Estate, Ashford, Kent, TN24 8DE.
17. | Stocks
|  | Group | Group
|  | 2024 | 2023
|  | £ | £
| Raw materials and consumables | 1,119,713 | 1,154,243
| Work in progress (goods to be sold) | 399,994 | 659,302
| Finished goods and goods for resale | 9,972,074 | 11,318,720
|  | 11,491,781 | 13,132,265
| The difference between purchase price or production cost of stocks and their replacement cost is not material.
Page 35
Allen Investment Group Ltd Notes to the Financial Statements For the year ended 30 September 2024
18. | Debtors
|  | Group | Group | Company | Company
|  | 2024 | 2023 | 2024 | 2023
|  | £ | £ | £ | £
| Trade debtors | 6,738,427 | 8,325,240 | - | -
| Other debtors | 16,749 | 308,098 | - | -
| Called up share capital not paid | 5 | - | 5 | -
| Prepayments and accrued income | 1,076,022 | 663,865 | - | -
| Deferred taxation | 187,548 | 468,720 | - | -
|  | 8,018,751 | 9,765,923 | 5 | -
19. | Cash and cash equivalents
|  | Group | Group | Company | Company
|  | 2024 | 2023 | 2024 | 2023
|  | £ | £ | £ | £
| Cash at bank and in hand | 1,409,444 | 1,096,673 | 169 | -
| Less: bank overdrafts | (992,990) | (1,260,764) | - | -
|  | 416,454 | (164,091) | 169 | -
Page 36
Allen Investment Group Ltd Notes to the Financial Statements For the year ended 30 September 2024
20. | Creditors: Amounts falling due within one year
|  | Group | Group | Company | Company
|  | 2024 | 2023 | 2024 | 2023
|  | £ | £ | £ | £
| Bank overdrafts | 992,990 | 1,260,764 | - | -
| Bank loans | 5,700,299 | 5,355,318 | - | -
| Trade creditors | 2,598,486 | 3,451,345 | - | -
| Debt factoring | 2,032,354 | 2,707,163 | - | -
| Amounts owed to group undertakings | - | - | 143,036 | -
| Corporation tax | 945 | - | - | -
| Other taxation and social security | 207,167 | 557,903 | - | -
| Obligations under finance lease and hire purchase contracts | 150,482 | 344,427 | - | -
| Other creditors | 504,859 | 193,504 | 440,000 | -
| Accruals and deferred income | 4,011,792 | 1,729,191 | - | -
| Financial instruments (note 23) | 24,214 | 664,360 | - | -
|  | 16,223,588 | 16,263,975 | 583,036 | -
| The factored debts are secured via a fixed and floating charge with HSBC Invoice Finance (UK) Ltd. The repayment and key terms of bank loans is described in note 21. The security over the bank loans is included in the banking facilities of the Group as referred to in note 30. Included within other creditors is an amount of £440,000 which relates to consideration payable on the acquisition of M.J. Allen Holdings Ltd. Deferred consideration is also due on this acquisition, as described in note 21. Included within other taxes and social security costs is an amount of £NIL (2023 - £251,953) which is secured via a deferral bond in favour of HM Revenue & Customs for £200,000 (2023 - £200,000). Amounts due to group undertakings fluctuate on a day to day basis, are lent on an unsecured basis and are repayable on demand.
Page 37
Allen Investment Group Ltd Notes to the Financial Statements For the year ended 30 September 2024
21. | Creditors: Amounts falling due after more than one year
|  | Group | Group | Company | Company
|  | 2024 | 2023 | 2024 | 2023
|  | £ | £ | £ | £
| Bank loans | 166,667 | 2,640,967 | - | -
| Net obligations under finance leases and hire purchase contracts | 111,767 | 269,116 | - | -
| Other creditors | 749,121 | - | 749,121 | -
|  | 1,027,555 | 2,910,083 | 749,121 | -
Other creditors include £749,121 of deferred consideration payable in respect of the acquisition of M.J. Allen Holdings Ltd. Deferred amounts are payable in instalments based on future profitability, with a minimum annual repayment of £90,000, and carry no interest charge. The deferred consideration is unsecured. The bank loan details are as follows: i) Commercial Loan and Overdraft Facility - A combined loan and overdraft facility secured by a fixed charge over certain freehold properties and a floating charge over the other assets and undertakings of the UK companies within the group. Part of this loan is repayable within 5 years in monthly capital instalments of £14,264 with a significantly greater repayment at the final payment date and part is held as a revolving facility with no fixed repayment period. Interest is charged at 1.5% per annum over the Base Rate. This facility is secured by various cross guarantees and debentures between all UK companies in the group. ii) Coronavirus Business Interruption Loans - The sterling term loan facility carries a nominal interest rate of 3.99% per annum over the Bank of England Base Rate with the final instalment due June 2026. The first 12 months of the loan facility starting from the date of the draw down on 1 July 2020 did not require any repayments to be made. Capital instalments of £16,667 are due monthly. This facility is secured by various cross guarantees and debentures between all UK companies in the group. iii) Flexible Business Loan - The sterling term loan facility carries a nominal interest rate of 2.45% per annum over the Base Rate, however, is subject to change with the final instalment due March 2025. The first 12 months of the loan facility starting from the date of the draw down on 1 July 2020 did not require any repayments to be made. Capital instalments of £27,778 are due monthly. This facility is secured by various cross guarantees and debentures between all UK companies in the group.
22. | Hire purchase and finance leases
| Minimum lease payments under hire purchase fall due as follows:
|  | Group | Group
|  | 2024 | 2023
|  | £ | £
| Within one year | 150,482 | 344,427
| Between 1-5 years | 111,767 | 287,815
|  | 262,249 | 632,242
Page 38
Allen Investment Group Ltd Notes to the Financial Statements For the year ended 30 September 2024
23. | Financial instruments
|  | Group | Group
|  | 2024 | 2023
|  | £ | £
| Financial liabilities |  |
| Financial liabilities measured at fair value through profit or loss | 24,214 | 664,360
| Financial liabilities measured at fair value through profit or loss comprise forward foreign currency contracts. Forward foreign currency contracts are valued using quoted foreign exchange rates and yield curves derived from quoted interest rate matching maturities of the contracts. The Group has entered into contracts to purchase from suppliers and supply goods to customers overseas, and has entered into forward foreign currency contracts to hedge the exchange risk arising from these anticipated future transactions.
24. | Deferred taxation
| Group
|  | 2024
|  | £
| At beginning of year | 468,720
| Charged to profit or loss | (281,172)
| At end of year | 187,548
| The deferred tax asset is made up as follows:
|  | Group | Group
|  | 2024 | 2023
|  | £ | £
| Tax losses carried forward | 187,548 | 468,720
|  | 187,548 | 468,720
| The net deferred tax asset expected to reverse in 2025 is £187,548. This primarily relates to the utilisation of tax losses against profits.
Page 39
Allen Investment Group Ltd Notes to the Financial Statements For the year ended 30 September 2024
25. | Provisions
| Group
|  | Warranty Provisions
|  | £
| At 1 October 2023 | 17,450
| Charged to profit or loss | (470)
| At 30 September 2024 | 16,980
| The Group provides warranties on certain goods sold, covering potential defects in materials or workmanship. A provision is recognised at the reporting date for the estimated costs of fulfilling warranty obligations. The amount of the provision is based on historical claim rates, the expected cost of repairs or replacement, and the duration of the warranty period.
Page 40
Allen Investment Group Ltd Notes to the Financial Statements For the year ended 30 September 2024
26. | Share capital
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
|  | Allotted, called up and fully paid |  |
|  | 3,151 (2023 - 3,151) Ordinary A shares of £1.00 each | 3,151 | 3,151
|  | 201 (2023 - 201) Ordinary B shares of £1.00 each | 201 | 201
|  | 101 (2023 - 101) Ordinary C shares of £1.00 each | 101 | 101
|  | 860 (2023 - 860) Ordinary D shares of £1.00 each | 860 | 860
|  |  | 4,313 | 4,313
| The shares rank pari passu in all respects except each class of shares has the right to receive dividends individually on a basis approved by the Directors or Members. On incorporation the Company issued 1 Ordinary A, 1 Ordinary B, 1 Ordinary C and 2 Ordinary D shares at par, for a total consideration of £5. During the period, the Company issued a further 3,150 Ordinary A, 200 Ordinary B, 100 Ordinary C and 858 Ordinary D shares; as part of the share for share exchange described at Note 2.3. In consideration, the Company received the entire share capital of M.J. Allen Holdings Limited.
27. | Reserves
Revaluation reserve The Group has adopted the revaluation model for the measurement of its land and buildings. This reserve is used to record increases in the fair value of land and buildings, less any related provision for deferred tax. Merger Reserve On the share for share exchange date, the difference between the aggregate nominal value of the Company's called up share capital and the called up share capital and capital redemption reserve of M.J. Allen Holdings Limited (the previous holding company) was transferred to a merger reserve. Profit and loss account This reserve comprises all current and prior period retained profits and losses after deducting any distributions made to shareholders. Page 41
Allen Investment Group Ltd Notes to the Financial Statements For the year ended 30 September 2024
28. | Analysis of net debt
|  | At 1 October 2023 | Cash flows | Other non-cash changes | At 30 September 2024
|  | £ | £ | £ | £
| Cash at bank and in hand | 1,096,673 | 312,771 | - | 1,409,444
| Bank overdrafts | (1,260,764) | 267,774 | - | (992,990)
| Debt due after 1 year | (2,640,967) | 3,223,421 | (749,121) | (166,667)
| Debt due within 1 year | (8,062,481) | 327,581 | (440,000) | (8,174,900)
| Derivatives | (664,360) | - | 640,146 | (24,214)
| Finance leases | (613,543) | 351,294 | - | (262,249)
|  | (12,145,442) | 4,482,841 | (548,975) | (8,211,576)
29. | Contingent liabilities
The company is party to an unlimited cross-guarantee, dated 21 March 2014, with the bank in respect of M.J. Allen Holdings Limited and each of its subsidiary companies. Fixed and floating charges are secured on all the assets of the company dated March 2014, together with secured charges on the Freehold Property owned by the parent company dated April and May 2014. The aggregate of bank overdrafts and finance facilities in the other group companies at the balance sheet date amounted to £8,525,643 (2023 - £11,899,694). The total of the group cross-guarantee was £8,525,643 (2023 - £11,899,694).
30. | Pension commitments
The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £283,367 (2023 - £394,275). Contributions totalling £62,310 (2023 - £60,063) were payable to the fund at the balance sheet date and are included in other creditors.
31. | Commitments under operating leases
| At 30 September 2024 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
|  | Group | Group
|  | 2024 | 2023
|  | £ | £
| Not later than 1 year | 83,084 | 27,000
| Later than 1 year and not later than 5 years | 300,620 | 108,000
| Later than 5 years | 54,000 | 81,000
|  | 437,704 | 216,000
Page 42
Allen Investment Group Ltd Notes to the Financial Statements For the year ended 30 September 2024
32. | Related party transactions
| The Group has taken advantage of the exemption in FRS 102 Section 33.1A from disclosing transactions with other wholly owned members of the Group. Transactions with other entities are described below. I) Countytrac Limited - 90% Subsidiary of M.J. Allen Holdings Limited During the year M.J. Allen Holdings Limited received management fees from Countytrac Limited amounting to £NIL (2023 - £60,000). During the year M.J. Allen Holdings Limited received rent from Countytrac Limited amounting to £18,700 (2023 - £18,700). During the year Countytrac Limited continued to provide an interest free loan to M.J. Allen Holdings Limited, which is repayable on demand. At the balance sheet date the amount due to Countytrac Limited was £6,684,296 (2023 - £1,736,602). ii) M J Allen SSAS Pension scheme - A pension scheme in which T J Allen, M N Allen, A C Gibson, B Allen and M C Allen have an interest. During the year, M.J. Allen Holdings Limited paid rent of £103,700 (2023 - £103,700) to the pension scheme. iii) M J Allen EBS Self-Administered Personal Pension Plan - A pension scheme in which M J Allen has an interest. During the year, M.J. Allen Holdings Limited paid rent of £27,000 (2023 - £27,000) to the pension scheme. Key management personnel Key management comprises solely the Directors of the company. The compensation paid or payable to key management for employee services is disclosed at note 9.
33. | Controlling party
The ultimate controlling party of the Company and the Group is Ben N Allen, a Director of the Company.
Page 43