Registration number:
for the
Year Ended 31 March 2025
Alliance Leisure Services Limited
Contents
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Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Profit and Loss Account |
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Balance Sheet |
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Statement of Changes in Equity |
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Notes to the Financial Statements |
Alliance Leisure Services Limited
Company Information
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Directors |
P A J Cluett S J Thornton S L Watts |
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Company secretary |
S J Thornton |
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Registered office |
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Auditors |
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Alliance Leisure Services Limited
Strategic Report for the Year Ended 31 March 2025
The Directors present their strategic report for the year ended 31 March 2025.
Principal activity
The principal activity of the Company is the provision of facility development and support for local authorities, educational establishments and leisure trusts.
Fair review of the business
The Company achieved a gross profit margin of 7.18% (2024 restated - 6.86%) despite a reduction in turnover to £80.8 million (2024 restated - £105.9 million). Gross profit reduced to £5.8 million (2024 restated - £7.3 million) and operating profit of £1.1 million (2024 restated operating profit - £2.9 million), reflecting lower activity levels driven principally by the ISG Limited administration, together with increases in employment and insurance costs. Profit before tax was £1.2 million (2024 restated - £3 million).
On 20th September 2024, ISG Limited ("ISG"), one of the Company's principal building contractors, entered administration. Notwithstanding this, the Directors believe the Company remains well positioned for sustained growth and continue to invest in its people, systems and client relationships. Management has mitigated the operational impact by securing alternative contractors across the projects previously scheduled for delivery by ISG, ensuring continuity of service and project progression.
The Directors are of the opinion that analysis using Key Performance Indicators is not necessary for an understanding of the development, performance or position of the business.
Principal risks and uncertainties
The Company faces a number of operational and financial risks in the ordinary course of its business the most important of which we have summarised below.
The Board reviews and agrees policies for managing the key financial risks.
Strategic risk
The Company operates in a fast-developing dynamic market place where new customer and supplier relationships are continually evolving, and new competitors and modern technology can quickly enter the marketplace. The Company is aware of this risk and focuses on continually improving its services to outperform competition and be of value to our customers.
Reputational risk
Customer confidence in our brand and the ability to provide outstanding results for our customers is critical to the Company’s success. The Company is investing in building and protecting its brand and further developing its services.
Regulatory risk
The Company has put in place systems and controls to minimize the risk that we breach applicable regulations or laws. Breaches may result in regulatory actions including fines. The Company mitigates this regulatory risk by ensuring a strong compliance culture throughout all levels of the business, investing in appropriate systems, controls and training.
Operational risk
The Company considers its core business operational risks and uncertainties to be its relationships with its customers, supplier relationships and agreements. These risks and uncertainties are managed by maintaining strong relationships with customers, by providing excellent quality service, hiring talented staff in all areas of the business and investing in the development of our services.
Section 172(1) statement
The Directors of the Company must act in accordance with the duties detailed in S172 of the Companies Act 2006 which is summarised as follows:
The Directors of the Company must act in the way they consider, in good faith, would most likely promote the success of the Company for the members as a whole, and in doing so have regards (amongst other matters) to the following:
Alliance Leisure Services Limited
Strategic Report for the Year Ended 31 March 2025
a) The likely consequences of any decision in the long term
The Directors have acted in good faith and in a manner they consider most likely to promote the long-term success of the Company for the benefit of its stakeholders, including employees, customers, suppliers and the wider community. The Board has approved a strategic business plan, developed in conjunction with senior management, which is focused on sustainable growth, long-term value creation and the continued maintenance of profitability.
b) The interest of the Company's employees
The Directors recognise that employees are fundamental to the success of the business. The Company is committed to attracting, retaining and developing high-quality talent. Employment policies and practices are reviewed regularly to ensure they remain effective, competitive and aligned with the Company’s objectives, supporting employee wellbeing, engagement and professional development.
c) The need to foster the Company's business relationships with suppliers, customers and others
The Board acknowledges the importance of maintaining strong and constructive relationships with key stakeholders. By developing a clear understanding of stakeholder needs and expectations, the Company seeks to foster long-term partnerships and deliver mutual value. The Company’s principal stakeholders include shareholders, employees, customers, suppliers and the local communities in which it operates. Regular and meaningful engagement with these stakeholders remains a key priority.
d) The impact of the Company's operations on the community and the environment
The Directors consider the impact of the Company’s activities on the communities and environments in which it operates when making strategic and operational decisions. The Company is committed to acting responsibly and seeks to build and maintain positive relationships with local authorities, community groups and other relevant stakeholders.
e) The desirability of the Company maintaining a reputation for high standards of business conduct
The Directors are committed to upholding high standards of business conduct and integrity. The Company operates with a low tolerance for reputational risk and seeks to ensure that its activities are carried out in a responsible, ethical and transparent manner.
f) The need to act fairly as between members of the Company
The Directors seek to act fairly and equitably in their dealings with all stakeholders. Key relationships include those with insurers, suppliers, lenders, professional advisers and HMRC. The Board promotes open and transparent communication to ensure that stakeholders are appropriately informed and treated fairly.
Approved by the
Director
Alliance Leisure Services Limited
Directors' Report for the Year Ended 31 March 2025
The Directors present their report and the financial statements for the year ended 31 March 2025.
Directors of the Company
The Directors who held office during the year were as follows:
Going concern
The Company has reported a net profit of £906,531 (2024 - £2,225,408) for the year ended 31 March 2025 and as at 31 March 2025 has net assets of £567,840 (2024 - £324,088) with access to cash reserves of £11,342,322 (2024 - £6,111,576).
Based on the forecasts prepared and the funds available, the Directors' believe that the Company is well placed to manage its financing and other business risks satisfactorily, and have reasonable expectation that the Company will have adequate resources to continue in operation for at least 12 months from the signing date of these financial statements. They therefore consider it appropriate to adopt the going concern basis accounting in preparing the financial statements.
Future developments
The Directors will continue to explore opportunities to strengthen the Company’s market position and support sustainable growth. Focus will remain on identifying new business prospects and enhancing operational efficiency while responding to changing market conditions.
Information included in the Strategic Report
Information on the engagement with suppliers, customers and others is included in the Strategic Report in the Section 172(1) statement. The Company’s business environment and risks, together with details of monitoring undertaken by the directors are dealt with elsewhere in the Strategic Report.
Financial instruments
Objectives and policies
The Company’s financial instruments comprise cash and liquid resources and various other items such as trade debtors and trade creditors that arise from its operations. The main purpose of these financial instruments is to finance the operations of the Company.
Price risk, credit risk, liquidity risk and cash flow risk
Liquidity Risk
Liquidity risk arises from the dynamic business profile and growth of the business. Senior management ensure sufficient cash reserves and working capital facilities to facilitate this profile and growth. Cash flow is measured regularly, and forecasting is used to manage the projected business growth and cash requirements.
Price risk
The Company seeks to mitigate its exposure to commodity price risk through using relevant pricing mechanisms in the course of business with its customers, such as rebates. Inflation related price increases expose the Company to rises in commodities such as fuel prices, as well as having an impact on salaries and recruitment. The Company monitors the market to mitigate price risks where possible.
Credit risk
The Company is exposed to the usual credit risk associated with conducting business on credit and manages this through credit control procedures and staged payments. The credit risk on liquid funds is limited because the counterparties are banks with high credit‑ratings assigned by international credit‑rating agencies.
Cash flow risk
The Company is exposed to cash flow risk arising from the timing mismatch between cash inflows from customers and cash outflows required to meet operating expenses, capital commitments and debt obligations. The principal risks relate to delays in customer receipts and the level and timing of capital expenditure.
The Directors manage cash flow risk by preparing regular cash flow forecasts, monitoring working capital levels, and maintaining access to adequate banking facilities. Where appropriate, The Directors consider that these arrangements are sufficient to ensure the Company is able to meet its liabilities as they fall due.
Alliance Leisure Services Limited
Directors' Report for the Year Ended 31 March 2025
Energy and emissions report
Under the Streamlined Energy and Carbon Reporting regulations the Company must report annually on greenhouse gas emissions from scope 1 and scope 2 electricity, gas and transport.
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2025 |
2024 |
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Energy consumption used to calculate emissions |
kWh |
483,746 |
391,890 |
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Scope 1 emissions |
tonnes CO2e |
136.65 |
110.17 |
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Scope 2 emissions |
tonnes CO2e |
1.29 |
1.29 |
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Total greenhouse gas emissions |
tonnes CO2e |
137.94 |
111.46 |
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Tonnes of CO2e per £million of revenue |
tonnes CO2e |
1.72 |
1.07 |
Alliance Leisure Services Limited, as a large unquoted company, qualifies for completing Streamlined Energy and Carbon Reporting by satisfying two or more of the specified requirements set out in the guidance. In compliance with the regulations, energy used from gas, electricity and transport including their associated emissions have been reported, in conjunction with an intensity ratio of emissions per business turnover (tCO2e/£m) and energy efficiency actions taken.
Scope 1 emissions are from purchased gas and fuel usage in company controlled vehicles. Scope 2 emissions are from electricity usage.
The Company occupies office space within a multi-tenanted building where electricity and other utilities are included within rental charges. Direct electricity consumption data is not available. Energy consumption has been estimated using industry office energy intensity benchmarks (kWh/m²/year) applied to the Company's estimated occupied floor area.
The Company considers the environmental impact of its operations and has continued to take the following actions in the current year;
- Planting trees to offset carbon from projects.
- Introduced a transport policy promoting sustainable travel and electric vehicle procurement.
Disclosure of information to the auditors
Each Director has taken steps that they ought to have taken as a Director in order to make themselves aware of any relevant audit information and to establish that the Company's auditors are aware of that information. The Directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Reappointment of auditors
Hazlewoods LLP have expressed their willingness to continue in office.
Approved by the
Director
Alliance Leisure Services Limited
Statement of Directors' Responsibilities
The Directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing these financial statements, the Directors are required to:
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select suitable accounting policies and apply them consistently; |
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make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business. |
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Alliance Leisure Services Limited
Independent Auditor's Report to the Members of Alliance Leisure Services Limited
Opinion
We have audited the financial statements of Alliance Leisure Services Limited (the 'Company') for the year ended 31 March 2025, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, and Notes to the Financial Statements, 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 Company's affairs as at 31 March 2025 and of its 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 responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the Directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report.
Other information
The Directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
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the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Alliance Leisure Services Limited
Independent Auditor's Report to the Members of Alliance Leisure Services Limited
Matters on which we are required to report by exception
In our opinion, adequate accounting records have not been kept by the Company during the year. However, we were able to obtain sufficient appropriate audit evidence by alternative procedures and, accordingly, our opinion on the financial statements is not modified in respect of this matter.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• the Company financial statements are not in agreement with the accounting records and returns;
• 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 Statement of Directors' Responsibilities set out on page 6, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Extent to which the audit was capable of detecting irregularities, including fraud
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:
We considered the nature of the company’s industry and its control environment and reviewed the company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.
We obtained an understanding of the legal and regulatory framework that the company operates in and identified the key laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements, including the UK Companies Act and tax legislation, and, those 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.
We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.
In common with all audits conducted in accordance with ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override of controls. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.
In addition to the above, our procedures to respond to the risks identified included the following:
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reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; |
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performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatements due to fraud; and |
Alliance Leisure Services Limited
Independent Auditor's Report to the Members of Alliance Leisure Services Limited
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enquiring of management concerning actual and potential litigation and claims and instances of non-compliance with laws and regulations. |
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
A further description of our responsibilities is available on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of this 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.
For and on behalf of
Staverton Court
Staverton
GL51 0UX
Alliance Leisure Services Limited
Profit and Loss Account for the Year Ended 31 March 2025
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Note |
2025 |
(As restated) |
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Turnover |
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Cost of sales |
( |
( |
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Gross profit |
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Administrative expenses |
( |
( |
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Operating profit |
1,126,669 |
2,872,773 |
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Other interest receivable and similar income |
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Profit before tax |
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Tax on profit |
( |
( |
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Profit for the financial year |
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The above results were derived from continuing operations.
The Company has no other comprehensive income for the year.
Alliance Leisure Services Limited
(Registration number: 02723797)
Balance Sheet as at 31 March 2025
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Note |
2025 |
(As restated) |
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Fixed assets |
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Tangible assets |
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Current assets |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Net assets |
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Capital and reserves |
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Called up share capital |
1,000 |
1,000 |
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Capital redemption reserve |
50 |
50 |
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Profit and loss account |
566,790 |
323,038 |
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Shareholders' funds |
567,840 |
324,088 |
Approved and authorised by the
Director
Alliance Leisure Services Limited
Statement of Changes in Equity for the Year Ended 31 March 2025
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Share capital |
Capital redemption reserve |
Profit and loss account |
Total |
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At 1 April 2024 (As restated) |
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Profit for the year |
- |
- |
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Dividends |
- |
- |
( |
( |
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At 31 March 2025 |
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Share capital |
Capital redemption reserve |
(As restated) |
Total |
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At 1 April 2023 (As restated) |
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Profit for the year (As restated) |
- |
- |
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Dividends |
- |
- |
( |
( |
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At 31 March 2024 (As restated) |
1,000 |
50 |
323,038 |
324,088 |
Alliance Leisure Services Limited
Notes to the Financial Statements for the Year Ended 31 March 2025
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General information |
The Company is a private company limited by share capital, incorporated in the United Kingdom.
The address of its registered office is:
United Kingdom
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Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006.
Basis of preparation
These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.
The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.
Summary of disclosure exemptions
Alliance Leisure Services Limited meets the definition of a qualifying entity under FRS102 and has therefore taken advantage of the disclosure exemptions available to it in respect of its financial statements. Exemptions have been taken in relation to financial instruments and presentation of a cash flow statement.
Name of parent of group
These financial statements are consolidated in the financial statements of Alliance Finance Limited.
The financial statements of Alliance Finance Limited may be obtained from Companies House.
Going concern
The Company has reported a net profit of £906,531 (2024 - £2,225,408) for the year ended 31 March 2025 and as at 31 March 2025 has net assets of £567,840 (2024 - £324,088) with access to cash reserves of £11,342,322 (2024 - £6,111,576).
Based on the forecasts prepared and the funds available, the Directors' believe that the Company is well placed to manage its financing and other business risks satisfactorily, and have reasonable expectation that the Company will have adequate resources to continue in operation for at least 12 months from the signing date of these financial statements. They therefore consider it appropriate to adopt the going concern basis accounting in preparing the financial statements.
Prior period errors
A prior period error adjustment has been posted to correct various errors in the financial statements. For details of the errors see note 21 in these financial statements.
Alliance Leisure Services Limited
Notes to the Financial Statements for the Year Ended 31 March 2025
Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, 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
The following are the critical judgements, apart from those involving estimations (which are dealt with separately below), that the Directors have made in the process of applying the Company's accounting policies and have the most significant effect on the amounts recognised in the financial statements. |
Revenue recognition - construction contract accounting
The Company derives revenue from construction contracts which are accounted for in accordance with Section 23 of FRS 102. Revenue is recognised over time using the input method. Under the input method, revenue is recognised based on the proportion of contract costs incurred to date relative to the total estimated contract costs.
The application of this method requires the Directors to exercise significant judgement, particularly in estimating the total costs required to complete each contract and in assessing the appropriate measure of progress towards completion. Where the input method is applied, this involves assessing the extent to which costs incurred to date accurately reflect the transfer of control of goods or services to the customer. If actual outcomes differ from estimates, this may result in adjustments to revenue recognised in the current and future periods. Estimates are reviewed regularly and, where necessary, revised to reflect the most up-to-date information available. In circumstances where costs or performance cannot be directly attributed to a specific period, judgement is applied to allocate such costs or measure progress based on the nature and circumstances of the contract and the underlying commercial substance.
The Directors are satisfied that the assumptions and estimates applied represent a best estimate based on information available at the reporting date and that revenue has been recognised appropriately in accordance with FRS 102.
Key sources of estimation uncertainty
The following are areas of estimation uncertainty:
Estimation uncertainty considerations for revenue recognition are dependent on individual contracts and may therefore differ on a contract-by-contract basis. Contracts using the input method to measure progress include estimation uncertainty in calculating the percentage of completion at the balance sheet date, based on the forecast total costs expected to be incurred on the contract.
Contract revenue recognition
Revenue from construction contracts is recognised in accordance with FRS 102 using the input method to measure stage of completion. This is determined by reference to costs incurred to date as a proportion of total estimated contract costs.
Revenue is recognised over time as the Company satisfies its performance obligations, reflecting the transfer of control to the customer. Where the outcome of a contract cannot be estimated reliably, revenue is recognised only to the extent of recoverable costs incurred. Provision is made for any foreseeable losses on contracts in full as soon as they are identified.
Alliance Leisure Services Limited
Notes to the Financial Statements for the Year Ended 31 March 2025
Contract assets and receivables
In the Company's construction contract part of the business, amounts are billed as work progresses in accordance with pre-agreed contractual terms. When a performance obligation is satisfied but a customer has not yet been billed this is recognised as a contract asset (unbilled revenue) and included within debtors.
Retentions are also a common feature of construction contracts and are recognised as a contract asset within trade and other debtors when the Company has a right to consideration in exchange for the completion of the contract. Retentions are consistent with industry norms and the purpose of these is not to provide a form of financing.
Apart from retentions, the Company does not have any construction contracts where the period between the transfer of the promised goods to the customer and payment by the customer exceeds one year. As a consequence, the Company does not adjust any of its transaction prices for the time value of money.
When consideration is received in advance of work being performed, or the Company has billed an amount to a customer that is in excess of revenue recognised on the contract; this is recognised as a contract liability within creditors; and the revenue is generally recognised in the subsequent period when the right to recognise revenue has been determined. As a result, advance payments received for construction contract arrangements are not considered a significant form of financing.
Cumulative costs incurred, net of amounts transferred to cost of sales, after deducting onerous provisions, provisions for contingencies and payments on account not matched with revenue, are included as construction contract balances in inventories. Cost includes all expenditure directly related to specific projects and an allocation of fixed and variable overheads incurred in the Company’s contract activities based on normal operating capacity.
Contract liabilities
When a contract is identified as being onerous (i.e. its unavoidable cost exceeds the economic benefit of the contract), a provision is created; being the lower of costs to complete the contract and the cost of exiting the contract.
Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is highly probable they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred.
When it is highly probable that total contract costs will exceed total contract revenue, the expected loss is recognised as an expense immediately.
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the Company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Alliance Leisure Services Limited
Notes to the Financial Statements for the Year Ended 31 March 2025
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
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Asset class |
Depreciation method and rate |
|
Furniture, fittings and equipment |
25% straight line |
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the debtors.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the Company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the Company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the Company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Alliance Leisure Services Limited
Notes to the Financial Statements for the Year Ended 31 March 2025
Financial instruments
Classification
Recognition and measurement
Impairment
A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.
For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.
For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.
Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
|
Turnover |
The analysis of the Company's turnover for the year from continuing operations is as follows:
|
2025 |
(As restated) |
|
|
Rendering of services |
|
|
The analysis of the Company's turnover for the year by market is as follows:
|
2025 |
(As restated) |
|
|
UK |
|
|
Alliance Leisure Services Limited
Notes to the Financial Statements for the Year Ended 31 March 2025
|
Operating profit |
Arrived at after charging/(crediting)
|
2025 |
2024 |
|
|
Depreciation expense |
|
|
|
Foreign exchange (gains)/losses |
( |
|
|
Operating lease expense - property |
62,966 |
47,418 |
|
Operating lease expense - other |
280,741 |
235,569 |
|
Other interest receivable and similar income |
|
2025 |
2024 |
|
|
Interest income on bank deposits |
|
|
|
Staff costs |
The aggregate payroll costs were as follows:
|
2025 |
(As restated) |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
|
|
The average number of persons employed by the Company during the year, analysed by category was as follows:
|
2025 |
2024 |
|
|
Administration and support |
|
|
|
Sales |
|
|
|
|
|
|
Directors' remuneration |
The Directors' remuneration for the year was as follows:
|
2025 |
(As restated) |
|
|
Remuneration |
|
|
|
Contributions paid to money purchase schemes |
|
- |
|
200,243 |
92,092 |
During the year the number of Directors who were receiving benefits and share incentives was as follows:
|
2025 |
2024 |
|
|
Accruing benefits under money purchase pension scheme |
|
- |
Alliance Leisure Services Limited
Notes to the Financial Statements for the Year Ended 31 March 2025
|
Auditors' remuneration |
|
2025 |
2024 |
|
|
Audit of the financial statements |
|
|
|
Other fees to auditors |
||
|
Taxation compliance services |
|
- |
|
All other non-audit services |
|
|
|
|
|
|
Taxation |
Tax charged/(credited) in the profit and loss account
|
2025 |
2024 |
|
|
Current taxation |
||
|
UK corporation tax |
|
|
|
UK corporation tax adjustment to prior periods |
|
- |
|
346,399 |
749,511 |
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
( |
- |
|
Tax expense in the profit and loss account |
|
|
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2024 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
2025 |
(As restated) |
|
|
Profit before tax |
|
|
|
Corporation tax at standard rate |
|
|
|
Increase in UK and foreign current tax from adjustment for prior periods |
|
- |
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
|
Tax decrease arising from group relief |
( |
( |
|
Deferred tax (credit)/expense from unrecognised tax loss or credit |
( |
|
|
Total tax charge |
|
|
Deferred tax
Deferred tax assets and liabilities
|
2025 |
Asset |
|
Fixed asset timing difference |
|
|
Short term timing differences |
|
|
|
Alliance Leisure Services Limited
Notes to the Financial Statements for the Year Ended 31 March 2025
|
Tangible assets |
|
Furniture, fittings and equipment |
|
|
Cost |
|
|
At 1 April 2024 |
|
|
Additions |
|
|
At 31 March 2025 |
|
|
Depreciation |
|
|
At 1 April 2024 |
|
|
Charge for the year |
|
|
At 31 March 2025 |
|
|
Carrying amount |
|
|
At 31 March 2025 |
|
|
At 31 March 2024 |
|
|
Debtors |
|
Note |
2025 |
(As restated) |
|
|
Trade debtors |
|
|
|
|
Amounts owed from group undertakings |
45,541 |
- |
|
|
Amounts owed from related parties |
|
|
|
|
Other debtors |
|
|
|
|
Prepayments |
|
|
|
|
Contract assets |
|
|
|
|
Deferred tax assets |
|
- |
|
|
|
|
Amounts owed from group undertakings and related parties are interest free, unsecured and receivable on demand.
Included in amounts owed from related parties is a director's loan account balance of £37,964 (2024 - £87,864).
|
Cash and cash equivalents |
|
2025 |
2024 |
|
|
Cash at bank |
|
|
Alliance Leisure Services Limited
Notes to the Financial Statements for the Year Ended 31 March 2025
|
Creditors |
|
2025 |
(As restated) |
|
|
Due within one year |
||
|
Trade creditors |
|
|
|
Amounts due to group undertakings |
- |
|
|
Social security and other taxes |
|
|
|
Other payables |
|
- |
|
Accruals |
|
|
|
Contract liabilities |
|
|
|
Corporation tax liability |
238,706 |
481,262 |
|
|
|
Amounts due to group undertakings are interest free and repayable on demand.
|
Pension and other schemes |
Defined contribution pension scheme
The Company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the Company to the scheme and amounted to £
|
Share capital |
Allotted, called up and fully paid shares
|
2025 |
2024 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
550 |
|
550 |
|
|
|
450 |
|
450 |
|
|
|
|
|
|
The shares rank pari passu in all respects.
|
Reserves |
Called up share capital
Share capital represents the issued share capital of the Company.
Capital redemption reserve
This represents paid up share capital from the buy back of shares by the Company. These are undistributable reserves.
Profit and loss account
The profit and loss account represents the cumulative profits or losses, net of dividends paid and other adjustments.
Alliance Leisure Services Limited
Notes to the Financial Statements for the Year Ended 31 March 2025
|
Obligations under leases and hire purchase contracts |
Operating leases
The total of future minimum lease payments is as follows:
|
2025 |
(As restated) |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
|
Dividends |
|
2025 |
(As restated) |
|
|
Dividends paid |
662,779 |
2,748,585 |
|
Related party transactions |
During the year the company made purchases of £13,500 (2024 - £nil) and received dividends of £27,000 (2024 - £nil) with connected companies. At the balance sheet date the amount owed from related companies totalled £62,914 (2024 - £186,227).
|
Parent and ultimate parent undertaking |
The Company's immediate parent is
The most senior parent entity producing publicly available financial statements is
|
Prior period adjustment |
Prior period adjustments
A prior period adjustment has been processed to correct errors in respect of the following:
Alliance Leisure Services Limited
Notes to the Financial Statements for the Year Ended 31 March 2025
|
As previously reported |
Adjustments |
As restated |
|
|
£ |
£ |
£ |
|
|
Turnover |
108,082,500 |
(2,206,882) |
105,875,618 |
|
Cost of sales |
(101,057,310) |
2,443,763 |
(98,613,547) |
|
Gross profit |
7,025,190 |
236,881 |
7,262,071 |
|
Administrative expenses |
(4,262,457) |
(126,841) |
(4,389,298) |
|
Operating profit |
2,762,733 |
110,040 |
2,872,773 |
|
Interest receivable |
102,146 |
- |
102,146 |
|
Profit before taxation |
2,864,879 |
110,040 |
2,974,919 |
|
Taxation on ordinary activities |
(749,511) |
- |
(749,511) |
|
Profit for the financial year |
2,115,368 |
110,040 |
2,225,408 |
|
As previously reported |
Adjustments |
As restated |
|
|
£ |
£ |
£ |
|
|
Fixed assets |
|||
|
Property, plant and equipment |
25,408 |
- |
25,408 |
|
25,408 |
- |
25,408 |
|
|
Current assets |
|||
|
Trade and other receivables |
9,481,125 |
3,274,000 |
12,755,125 |
|
Cash at bank and in hand |
6,111,576 |
- |
6,111,576 |
|
15,592,701 |
3,274,000 |
18,866,701 |
|
|
Creditors: amounts falling due within one year |
|||
|
Trade and other payables |
(13,822,565) |
(4,745,456) |
(18,568,021) |
|
(13,822,565) |
(4,745,456) |
(18,568,021) |
|
|
Net current assets |
1,770,136 |
(1,471,456) |
298,680 |
|
Net assets |
1,795,544 |
(1,471,456) |
324,088 |
|
Equity |
|||
|
Called up share capital |
1,000 |
- |
1,000 |
|
Capital redemption reserve |
50 |
- |
50 |
|
Profit and loss account |
1,794,494 |
(1,471,456) |
323,038 |
|
Total equity |
1,795,544 |
(1,471,456) |
324,088 |
Alliance Leisure Services Limited
Notes to the Financial Statements for the Year Ended 31 March 2025
1. Contract corrections. An adjustment has been processed to correct the recognition of contracts in accordance with FRS 102, including the timing of the revenue recognised on contracts and the presentation of certain contract related costs on a net basis. As a result, revenues have decreased by £2,206,882, cost of sales have increased by £2,443,763, contract assets have increased by £4,024,048, contract liabilities have increased by £1,549,306, prepayments decreased by £650,048, accruals increased by £2,661,571 and profit and loss reserves at 1 April 2024 have decreased by £1,073,758.
2. Bonus accrual. Bonuses had previously been recognised on the paid basis rather than on the accruals basis. An adjustment has been recognised to increase wages and salaries costs by £126,841 in the year ended 31 March 2024, increase accruals by £634,579 and decrease profit and loss reserves at 1 April 2023 by £507,738.
3. Reclassifications. Various reclassifications have been processed due to amounts being incorrectly presented in the prior year financial statements.