The directors present the strategic report for the year ended 30 June 2024.
The principal activity of the Group is the provision of insolvency solutions. Turnover originates fully from activities in the United Kingdom, the Republic of Ireland, Canada, and Mauritius.
The key financial and other performance indicators during the year were as follows:
| Year ended 30 June 2024 £’000 | Year end 30 June 2023 £’000 |
Revenue | 85,010 | 106,334 |
EBITDA | 1,776 | 20,303 |
Profit after tax | (570) | (1,569) |
Net Assets | 23,248 | 24,445 |
|
|
|
Origination volume | - | 19,534 |
External acquisition volume | - | 2,789 |
Closing case volume | 103,258 | 126,545 |
The Group continues to deliver strong trading performance. During the year the Group has continued to generate cash fund and pay back its loan facility, highlighting the strength of the operation.
There were no new originations, internally or externally, as new cases are now being held by a related party entity. The movement in closing case volume is due to cases having either completed or closed during the period.
The Group recognises certain risk factors that are both external and internal to the Group. The directors consider the principal risks and uncertainties to which the Group is exposed are intrinsic to the business and its operations.
The following highlights some of the particular risks affecting the Group. It is not intended to be an extensive analysis of all risks that may affect the business and its operations.
Cash flow risk
The Group manages its cash flow with the preparation and review of forecasts, as well as ensuring a minimum cash level is maintained so that its liabilities are met as they fall due.
Credit risk
The Group and Company is exposed to credit risk on the non-repayment of accrued income and amounts due from related party debt. In order to ensure that sufficient funds are available to fund ongoing operations and future developments, Management regularly reviews the cash flow forecasts of the outstanding cases and case book under management to monitor recoverability issues or the presence of indicators of impairment.
Liquidity Risk
The Group continues to deliver strong trading performance, with growth in both revenues and EBITDA year on year. During 2024, the Group continued to repay its debt facility while continuing to originate cases and in September 2024 fully repaid the debt facility.
Business continuity
The Group maintains a continuity plan for each area of its operations, including the associated IT infrastructure. If the unexpected should happen, there is a plan in place to recover the operation with as little disruption as possible.
Customers
The Group is committed to delivering exceptional customer service during, the life of its interactions with its customers. The Group regularly considers customer feedback and assesses its interactions with customers at a Senior Leadership level on a weekly basis.
Employees
The Group continues to recognise that its success is driven by its employees and that employee engagement and involvement is key to its continued success. The Group is committed to engaging with its employees at all levels, ensuring that they have a voice within the organisation and have the requisite training to be successful in their roles.
Finance Providers
The Group management meet with Finance Providers on a regular basis as well as providing information as part of the monthly compliance reporting.
Sl72 1(a) Long Term Consequences of Decisions
The Board delegates day to day management and decision making to its senior management team, but it maintains oversight of the Company's performance, and reserves to itself specific matters for approval. By receiving regular updates on business programs and objectives, the Board monitors that management is acting in accordance with agreed strategy. Processes are in place to ensure that the Board receives all relevant information to enable it to make well-judged decisions in support of the Company's long-term success and align these decision with the Company's growth strategy.
S 172 1(b) Employee Engagement
UK Debt Expert Group Limited (previously Creditfix Holdings Limited) believes in promoting the success of employees by concentrating on leadership excellence, personal growth by providing challenging and stimulating work and giving all employees excellent career opportunities based on merit, quality of life at work and pride of affiliation with a great company. This greatly encourages the involvement of employees in the Company's performance. Employees are provided with information on matters of concern to them, including awareness of financial and economic factors affecting the performance of the Company, career development opportunities and Company policies and principles, with opportunities then given to provide feedback to Senior Management. This allows employees to have a good understanding of the performance of the Company, which is key to its future success.
S 172 1(c) Business Relationships with Suppliers Customers & Others
As part of our strategic growth initiatives, the Board takes a holistic approach in considering the interests of our suppliers, customers and others in all commercial decisions. All employees are responsible for understanding and upholding certain standards when dealing with stakeholders and must ensure that everyone is treated both honestly and fairly.
S 172 1(d) Environment
Climate change remains a key focus of the Company and the Board understands the impact of its carbon footprint. The company is committed to developing and maintaining systems and processes in order to manage and reduce its carbon footprint where possible through initiatives such as lowering electricity usage and recycling all paper. We continuously asses the risks and opportunities arising from climate change and factor these into medium and long
term business strategies. Employees worldwide are also impassioned to do good and make a meaningful impact in the communities where we do business.
S 172 1(e) Reputation for High Standards of Business Conduct
The Board recognises its responsibility for developing a corporate culture which promotes integrity and transparency. It has established comprehensive systems of corporate governance and approves policies and procedures which promote corporate responsibilities and ethical behaviour. Subsidiary companies of UK Debt Expert Group Limited (previously Creditfix Holdings Limited) are bound by the Insolvency Practitioners Association's (IPA's) Ethics Code for Members and the Financial Conduct Authority and subject to periodic audits from both to ensure compliance.
S172 1(f) Acting Fairly Between Members of the Company
The Board aims to understand the views of its shareholders and to always act in their best interests. The Board met regularly throughout the year to ensure that all relevant matters are considered at scheduled meetings. Key stakeholder groups and their interests have been considered by the Directors when principal decisions of a strategic nature have been made.
Events after the reporting period
In March 2024, the repayment term of the loan facility was extended to November 2024 and the loan was repaid in full in September 2024.
On behalf of the board
The directors present their annual report and financial statements for the year ended 30 June 2024.
The directors declared dividends in the year of £Nil (2023: Nil)
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
The group's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.
There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.
In March 2024, the repayment term on the £85m facility was extended to November 2024. The loan was repaid in full in September 2024.
Due to a variety of external factors, the market remains uncertain. The Group believes that focusing on its own internal processes, in particular, enhancing our branding and improving our client service delivery, as well as reducing its cost of acquiring a case, will stand the Group in good stead for the future.
In accordance with the company's articles, a resolution proposing that Xeinadin Audit Limited be reappointed as auditor of the company will be put at a General Meeting.
As the group has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.
In line with the Financial Reporting Council's guidance on going concern issued in April 2016, the directors have uundertaken an exercise to review the appropriateness of the continued used of the going concern basis. The financial statements of the Company have been prepared on a going concern basis, as the directors have concluded that the going concern basis continues to be appropriate.
During the 2024 financial year the Group made a profit before tax of £2.7 million (2023: £2.2m loss). The net current asset position as of 30 June 2024 was £30.1 million (2023: net current asset £30.6 million) and overall net assets were £23.2 million (2023: £24.4 million).
The going concern assessment, which has been performed for the period up to 30 June 2027, considers the Group's current cash available, cash flows and available loan facilities. Repayments for the £85m loan facility were started in July 2023 and were fully repaid in September 2024.
The assessment prepared concluded that the Group and Company would generate sufficient cash from operations and appropriate liquidity to fund operations. The analysis also concluded that even considering plausible downside scenarios, the Group would have sufficient funds to trade and settle its liabilities as they fall due.
In considering the going concern basis of preparation, the directors have considered the principal risks and uncertainties discussed in the strategic report and assessed the impact on the forecast cashflows of the Group. In addition, they have considered the impact of the current UK economic downturn on recoverability of accrued income and the forecast settlement of current indebtedness.
The Directors prepared and reviewed trading and cash forecasts for the period to 30 June 2027. The going concern assessment considers the Group's operating cash flows, impact of the settlement of current indebtedness and available liquidity.
Sensitivity analysis has been performed on the forecasts to consider the impact of severe but plausible downside sensitivities, which show sufficient liquidity and under a reverse stress test. These sensitivities were focused on reductions in accrued income recoverability, as this is the key risk affecting cashflows generated. As a result of the sensitivities, a potential scenario under which liquidity would be exhausted was identified. Management then considered mitigations, that are under the control of management, to address any potential shortfall in liquidity. After applying such mitigations, management demonstrated the ability of the Group lo manage any reduction in recoverability and reduction in cash resources to ensure availability of cash resources. Management have considered historic and current trends on accrued income recoverability, and consider the likelihood of the sensitivities applied to be remote as mentioned above.
Therefore, the directors continue to adopt the going concern basis of accounting in preparing the financial sstatements.
Financial Risks
The Group has documented financial risk management policies. These policies set out the group's overall business strategies and its risk management philosophy. The group's overall financial risk management programme seeks to minimise potential adverse effects of financial performance of the group. The Board of Directors provides written principles for overall financial risk management and written policies covering specific areas, such as market risk (including foreign exchange risk, interest rate risk and equity price risk), credit risk, liquidity risk, cash flow interest rate risk, use of derivative financial instruments and investing excess cash. Such written policies are reviewed annually by the Board of Directors and periodic reviews are undertaken to ensure that the group's policy guidelines are complied with. The Directors have chosen to include information on financial risks within the strategic report. Risk management is carried out by the Treasury Department under the policies approved by the Board of Directors.
Disabled employees
The Group is committed to giving full and fair consideration to applications for employment made by disabled persons, appropriate training and development for disabled employees and career development and promotion for disabled employees.
Accounting records
The measures that the directors have taken to secure compliance with the requirements of sections 281 to 285, with regard to the keeping of accounting records, include the provision of appropriate resources to maintain adequate accounting records throughout the Group, including the appointment of personnel with appropriate qualifications, experience and expertise.
The accounting records are maintained at 4 West Regent Street, Glasgow.
Employee involvement
The Group is committed to employee engagement and delivers regular updates to staff regarding the performance and strategy of the organisation.
Streamlined Energy and Carbon Reporting
The Group has taken advantage of the Streamlined Energy and Carbon Reporting disclosure exemptions in preparing these Group and Company financial statements in accordance with the Companies (Directors' Report)and Limited Liability partnerships (Energy and Carbon Report) Regulations 2018. The Group and it's subsidiaries do not meet there reporting criteria.
Political Contributions
The Company made no political contributions during the year (2023: £nil)
Directors Insurance and Indemnities
The Company maintains a Directors' and Officers 'liability insurance policy in respect of itself and for its Directors and Officers. This gives appropriate cover for any legal action brought against the Company, its Directors
or Officers, except for where the Director or Officer has acted fraudulently or dishonestly.
Disclosure of information to the auditors
So far as each person who was a director at the date of approving this report is aware,there is no relevant audit information,being information needed by the auditor in connection with preparing its report,of which the auditor is unaware. Having made enquiries of fellow directors and the Group's auditor,each director has taken all the steps that they are obliged to take as a director in order to make themselves aware of any relevant audit information an d to establish that the auditor is aware of that information.
We have audited the financial statements of UK Debt Expert Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2024 which comprise the group profit and loss account, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
Basis for opinion
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
The information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
The strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Identifying and assessing potential risks related to irregularities
In identifying and assessing risks of material misstatement in respect of irregularities including fraud and non-compliance with laws and regulations we have considered the following:
The nature of the industry and sector, control environment and business performance including the company's remuneration policies, key drivers for directors remuneration, bonus levels and performance targets;
Results of the enquiries of management about their own identification and assessment of the risks of irregularities;
Any matters we have identified having obtained and reviewed the company's documentation of their policies and procedures relating to:
Identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of noncompliance;
Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
The internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;
The matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: timing of recognition of income, management override, valuation of accruals and fixed asset existence. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included UK Companies Act, employment law, health and safety, pensions legislation and tax legislation.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty.
Audit response to risks identified
Our procedures to respond to risks identified included the following:
reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
enquiring of management concerning actual and potential litigation and claims;
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC; and
in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the parent company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the parent company’s members those matters we are required to state to them in an 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 parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
As permitted by section 408 of the Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £1,137,097 (2023 - £190,669 loss).
UK Debt Expert Group Limited is a private company limited by shares incorporated in England and Wales. The registered office is Suite 15, 2nd Floor, Lees Street, Swinton, Manchester, M27 6DB.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The Group financial statements consolidate the financial statements of UK Debt Expert Group Limited (previously Creditfix Holdings Limited) Group and its subsidiaries.
Subsidiaries are consolidated from the date of their acquisition, being the date on which the Group obtains control and continue to be consolidated until the date that such control ceases. Control comprises the power to govern the financial and operating policies of the investee so as to obtain benefit from its activities.
No income statement is presented for UK Debt Expert Group Limited (previously Creditfix Holdings Limited) as permitted by Section 408 of the Companies Act 2006.
The Group has taken advantage of the exemption afforded by FRS 102.33.1A not to disclose transactions between wholly owned members of the Group. The parent company is a qualifying entity as defined by FRS 102 and has taken advantage of the following exemptions available to qualifying entities which are relevant to its financial statements.
the requirement to prepare a cash flow statement;
the requirement to disclose information about key management personnel compensation;
the disclosure requirements of Section 11 paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c) in respect of financial instruments of the parent (as equivalent disclosures are included in respect of the consolidated financial statements); and
the disclosure requirements of Section 26 paragraphs 26.18 (b), 26.19 to 26.21 and 26.23 (as equivalent disclosures are included in respect of the consolidated financial statements)
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Revenue is recognised to the extent that the Group obtains the right to consideration in exchange· for its
perfomance and is measured at the fair value of the consideration received, excluding discounts, rebates, VAT
and other sales taxes or duty.
The Group's revenue is primarily generated from the provision of insolvency solutions lo individuals experiencing debt problems. Revenue is recognised in two stages. A proportion is recognised on approval of the arrangement. The remainder is recognised on a monthly basis over the life of the case aligned to the ongoing services provided.
Towards the end of the financial year, the group's revenue structure and recognition extended to receiving related party revenue. Proteus Pier, an entity with common directorship, are being sold cases to from the Group. In this case, revenue is recognised by the Group at the point of sale of each case. This now eliminates the revenue recognition above mentioned in relation to revenue recognised on approval of the arrangement.
Other revenue represents introducer leads provided which are recognised when the leads are supplied.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and
subsequently measured at cost less any accumulated impairment losses. The investments are assessed for
impairment at each reporting date and any impairment losses or reversals of impairment losses are
recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The actual charge/(credit) for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:
Details of the company's subsidiaries at 30 June 2024 are as follows:
Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
During the year the group entered into the following transactions with related parties:
The following amounts were outstanding at the reporting end date: