Clugston Distribution Services Limited Company accounts

COMPANY REGISTRATION NUMBER: 05517733

Clugston Distribution Services Limited

Financial Statements

29 March 2025

Clugston Distribution Services Limited

Financial Statements

Year ended 29 March 2025

Contents	Page

Officers and professional advisers	1

Strategic report	2

Directors' report	4

Independent auditor's report to the members	6

Statement of income and retained earnings	10

Statement of financial position	11

Notes to the financial statements	12

Clugston Distribution Services Limited

Officers and Professional Advisers

The board of directors	Mr A W G Clugston
	AJWG Limited

Registered office	Brigg Road
	Scunthorpe
	England
	DN16 1BB

Auditor	Versant Associates LLP
	Chartered accountants & statutory auditor
	The Old Mill,
	9 Soar Lane
	Leicester
	LE3 5DE

Clugston Distribution Services Limited

Strategic Report

Year ended 29 March 2025

The directors present their annual report and financial statements for the period ended 29 March 2025 Fair review of the business The company made a pre-tax loss in the year of £558,806 compared to a profit of £102,328 in the previous year. Despite turnover increasing slightly to £21.9m from £21.3m in 2024, the direct costs of operating the business in a highly competitive market increased by 7% resulting in a gross margin reduction from 16.26% to 13.10%. A significant part of the loss was a result of establishing a new haulage division in the year in the South of England, which is now operating profitably. The management of the Company continue to monitor the divisions that are performing and those which are struggling and taking the appropriate action to reduce losses. The strategy is still to seek our opportunities to diversify its product range and invest in maintaining a reliable fleet of vehicles. The ongoing national and international economic challenges, which are out of the control of the Company, continue to have a negative impact on the business. The commercial vehicle maintenance division continues to grow both its customer base and provision of services to specialist hauliers. Despite a difficult market place from which to attract technicians; it is managing to continue to provide a high level of service for 363 days per year. It continues to train young people through its apprenticeship scheme. In the current year it has acquired R1 status with an international truck manufacturer, which increases margins on parts sales and reflects the high standards of the business. In February 2025 the Company entered into a Company Voluntary Arrangement, which initially caused some disruption to the business. With the strong support of employees, customers and stake holders the Company continues to operate with no significant impact from this event.

Principal risks and uncertainties As with any business, the Company faces risk and uncertainties at both micro and macro-economic levels. The Company recognises that the careful management of risk is critical to the achievement of its strategic goals. The management of the Company utilises Key Performance Indicators (KPI'S) and other relevant management information to monitor its performance. These include: - Monitoring of turnover levels in each division.- Daily detailed monitoring of cashflows. - Regular divisional performance reviews. Management constantly reviews principal risks to alleviate the impacts. Significant emerging risks and actions are addressed at senior management meetings. Management regularly reviews specific strategic risks (including financial, operational, health and safety, and compliance) in monthly senior management business review meetings, as well as at operational business unit meetings.

This report was approved by the board of directors on 10 August 2026 and signed on behalf of the board by:

Mr A W G Clugston

Director

Registered office:

Brigg Road

Scunthorpe

England

DN16 1BB

Clugston Distribution Services Limited

Directors' Report

Year ended 29 March 2025

The directors present their report and the financial statements of the company for the year ended 29 March 2025 .

Principal activities

The principal activity of the company during the year was that of freight transport.

Directors

The directors who served the company during the year were as follows:

Mr A W G Clugston
AJWG Limited

Dividends

The directors do not recommend the payment of a dividend.

Directors' responsibilities statement

The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Auditor

Each of the persons who is a director at the date of approval of this report confirms that:

- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.

This report was approved by the board of directors on 10 August 2026 and signed on behalf of the board by:

Mr A W G Clugston

Director

Registered office:

Brigg Road

Scunthorpe

England

DN16 1BB

Clugston Distribution Services Limited

Independent Auditor's Report to the Members of Clugston Distribution Services Limited

Year ended 29 March 2025

Disclaimer of opinion

We were engaged to audit the financial statements of Clugston Distribution Services Limited (the 'company') for the year ended 29 March 2025 which comprise the statement of income and retained earnings, statement of financial position and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). We do not express an opinion on the accompanying financial statements of the company. Because of the significance of the matter described in the basis for disclaimer of opinion section of our report, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on these financial statements.

Basis for disclaimer of opinion

As explained in Note 3, the directors' assessment of the company's ability to continue as a going concern is based on cash flow forecasts prepared. We have not received sufficient explanations or documentary evidence to allow us to fully assess whether the company remains a going concern or the impact on the company's ability to continue to meet its obligations under the CVA referred to in Notes 3,15 and 16. If the company did not continue to be a going concern, the balance sheet would need restating on a break up basis.

Material uncertainty related to going concern

We draw attention to the fact that the company's ability to continue as a going concern is dependent on its continued ability to meet it's obligations under the CVA referred to in Notes 3,15 and 16. As more fully explained in the Basis for disclaimer of opinion section, we are unable to reach an opinion on the appropriateness of the company's ability to continue as a going concern due to a lack of sufficient audit evidence.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

- the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: - Enquiry of management with regard to actual and potential fraud and non-compliance with laws and regulations; - Reviewing legal correspondence and correspondence with regard to potential fraud and non compliance with laws and regulations; - Understanding and evaluating the company's internal controls; - Testing of journal entries that were deemed unusual; - Assessing financial statement disclosures, and testing to supporting documentation, for compliance with applicable laws and regulations. There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in financial statements. Also, 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 or intentional misrepresentation or through collusion. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Use of our report

This report is made solely to the company's members, as a body, in accordance with chapter 3 of part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Andrew Wheatcroft BFP ACA FCCA

(Senior Statutory Auditor)

For and on behalf of

Versant Associates LLP

Chartered accountants & statutory auditor

The Old Mill,

9 Soar Lane

Leicester

LE3 5DE

10 August 2026

Clugston Distribution Services Limited

Statement of Income and Retained Earnings

Year ended 29 March 2025

		2025	2024
Note		£	£
Turnover	4	21,953,040	21,327,047

Cost of sales	19,078,285	17,858,698
	-------------	-------------
Gross profit	2,874,755	3,468,349

Administrative expenses		3,039,215	3,211,031
		------------	------------
Operating (loss)/profit	5	( 164,460)	257,318

Interest payable and similar expenses	9	394,346	154,990
		------------	------------
(Loss)/profit before taxation		( 558,806)	102,328

Tax on (loss)/profit	10	192,659	164,314
		---------	---------
Loss for the financial year and total comprehensive income		( 751,465)	( 61,986)
		---------	---------

Retained earnings at the start of the year	800,655	862,641
	---------	---------
Retained earnings at the end of the year	49,190	800,655
	---------	---------

All the activities of the company are from continuing operations.

Clugston Distribution Services Limited

Statement of Financial Position

29 March 2025

	2025	2024
Note	£	£

Fixed assets

Tangible assets	12	3,005,050	2,754,832

Current assets

Stocks	13	223,508	202,578
Debtors	14	7,028,475	7,048,354
Cash at bank and in hand		207,805	201,205
		------------	------------
		7,459,788	7,452,137

Creditors: amounts falling due within one year	15	5,247,710	6,889,051
		------------	------------
Net current assets		2,212,078	563,086
		------------	------------
Total assets less current liabilities		5,217,128	3,317,918

Creditors: amounts falling due after more than one year	16	3,167,938	517,263
		------------	------------
Net assets		2,049,190	2,800,655
		------------	------------

Capital and reserves

Called up share capital	20	2,000,000	2,000,000
Profit and loss account		49,190	800,655
		------------	------------
Shareholders funds		2,049,190	2,800,655
		------------	------------

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

These financial statements were approved by the board of directors and authorised for issue on 10 August 2026 , and are signed on behalf of the board by:

Mr A W G Clugston

Director

Company registration number: 05517733

Clugston Distribution Services Limited

Notes to the Financial Statements

Year ended 29 March 2025

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Brigg Road, Scunthorpe, DN16 1BB, England.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

During the year the company entered into a Corporate Voluntary Arrangement ("CVA"), approved by creditors on 26 February 2025. The company has failed to meet all payments due under the CVA to date and is therefore in breach. The directors have prepared cash flow forecasts covering a period of at least 12 months from the date of approval of these financial statements, which indicate the company will achieve improved results and be able to meet its obligations under the CVA and it is seeking a variation to the CVA to reduce its obligations. Accordingly, the directors consider it appropriate to prepare the financial statements on a going concern basis. These financial statements do not include any adjustments that would result if the company were unable to continue as a going concern.

Disclosure exemptions

The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of AJWG Limited which can be obtained from it's registered office. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102: (a) No cash flow statement has been presented for the company. (b) Disclosures in respect of financial instruments have not been presented. (c) No disclosure has been given for the aggregate remuneration of key management personnel.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or the period of the revision and future periods where the revision affects both current and future periods. Significant judgements The judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows: Useful life of tangible fixed assets Tangible fixed assets (note 12) are depreciated over their useful economic lives taking into account residual values where appropriate. The expected lives of the assets and residual values are assessed annually and may depend on a number of factors. In reassessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value reassessments consider future market conditions, the remaining life of the assets and projected disposal values.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered, stated net of discounts and of Value Added Tax. Revenue from contracts for the provision of services is recognised when the service has been completed. Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that it is probable the expenses recognised will be recovered.

Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Operating leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

Goodwill

Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business. Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight-line basis over its useful life. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed ten years.

Amortisation

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:

	Goodwill	-	Written off in year of aquisition

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

	Plant and machinery	-	2-15 years straight line

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

Finance leases and hire purchase contracts

Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

4. Turnover

Turnover arises from:

	2025	2024
	£	£
Rendering of services	21,953,040	21,327,047
	-------------	-------------

The turnover is attributable to the one principal activity of the company. An analysis of turnover by the geographical markets that substantially differ from each other is given below:

	2025	2024
	£	£
United Kingdom	21,562,851	21,073,143
Overseas sales	390,189	253,904
	-------------	-------------
	21,953,040	21,327,047
	-------------	-------------

5. Operating (loss)/profit

Operating profit or loss is stated after charging/crediting:

	2025	2024
	£	£
Depreciation of tangible assets	782,053	731,708
Gains on disposal of tangible assets	( 68,434)	( 50,215)
Impairment of trade debtors	37,443	(21,950)
	---------	---------

6. Auditor's remuneration

	2025	2024
	£	£
Fees payable for the audit of the financial statements	24,078	24,527
	--------	--------

7. Staff costs

The average number of persons employed by the company during the year, including the directors, amounted to:

	2025	2024
	No.	No.
Distribution staff	129	129
Administrative staff	50	53
	----	----
	179	182
	----	----

The aggregate payroll costs incurred during the year, relating to the above, were:

	2025	2024
	£	£
Wages and salaries	8,132,159	7,804,222
Social security costs	879,756	879,354
Other pension costs	198,284	202,233
	------------	------------
	9,210,199	8,885,809
	------------	------------

8. Directors' remuneration

The directors' aggregate remuneration in respect of qualifying services was:

	2025	2024
	£	£
Remuneration	20,833	125,000
	--------	---------

9. Interest payable and similar expenses

	2025	2024
	£	£
Interest on banks loans and overdrafts	255,187	35,480
Interest on obligations under finance leases and hire purchase contracts	139,159	119,510
	---------	---------
	394,346	154,990
	---------	---------

10. Tax on (loss)/profit

Major components of tax expense

	2025	2024
	£	£

Deferred tax:

Origination and reversal of timing differences	192,659	164,314
	---------	---------
Tax on (loss)/profit	192,659	164,314
	---------	---------

Reconciliation of tax expense

The tax assessed on the (loss)/profit on ordinary activities for the year is higher than (2024: higher than) the standard rate of corporation tax in the UK of 25 % (2024: 25 %).

	2025	2024
	£	£
(Loss)/profit on ordinary activities before taxation	( 558,806)	102,328
	---------	---------
(Loss)/profit on ordinary activities by rate of tax	( 139,702)	25,582
Effect of expenses not deductible for tax purposes	7,842	5,984
Effect of capital allowances and depreciation	( 146,032)	31,563
Utilisation of tax losses	–	( 63,129)
Unused tax losses	277,892	–
Movement in deferred tax	192,659	164,314
	---------	---------
Tax on (loss)/profit	192,659	164,314
	---------	---------

11. Intangible assets

	Goodwill
	£
Cost
At 30 March 2024 and 29 March 2025	30,000
	--------
Amortisation
At 30 March 2024 and 29 March 2025	30,000
	--------
Carrying amount
At 29 March 2025	–
	--------
At 29 March 2024	–
	--------

12. Tangible assets

	Property, plant and machinery
	£
Cost
At 30 March 2024	8,751,343
Additions	1,058,511
Disposals	( 752,224)
	------------
At 29 March 2025	9,057,630
	------------
Depreciation
At 30 March 2024	5,996,511
Charge for the year	782,053
Disposals	( 725,984)
	------------
At 29 March 2025	6,052,580
	------------
Carrying amount
At 29 March 2025	3,005,050
	------------
At 29 March 2024	2,754,832
	------------

Finance leases and hire purchase contracts

Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:

	Property, plant and machinery
	£
At 29 March 2025	1,521,336
	------------
At 29 March 2024	1,599,383
	------------

13. Stocks

	2025	2024
	£	£
Raw materials and consumables	223,508	202,578
	---------	---------

14. Debtors

	2025	2024
	£	£
Trade debtors	4,353,091	4,540,587
Amounts owed by group undertakings	1,921,520	1,590,354
Deferred tax asset	–	190,803
Prepayments and accrued income	695,599	653,201
Other debtors	58,265	73,409
	------------	------------
	7,028,475	7,048,354
	------------	------------

15. Creditors: amounts falling due within one year

	2025	2024
	£	£
Bank loans and overdrafts	10,376	9,896
Trade creditors	1,170,229	1,619,502
Accruals and deferred income	265,844	237,441
Social security and other taxes	398,038	1,711,247
Obligations under finance leases and hire purchase contracts	567,000	537,243
Other creditors	2,836,223	2,773,722
	------------	------------
	5,247,710	6,889,051
	------------	------------

Obligations under finance leases and hire purchase contracts are secured by the related assets.

Included within other creditors is an invoice discounting facility of £2,314,172 (2024: £2,638,797) which is secured over assets of the company.

In February 2025 the Company entered into a Corporate Voluntary Arrangement. £330k of the creditors due in less than one year relates to the Corporate Voluntary Arrangement.

16. Creditors: amounts falling due after more than one year

	2025	2024
	£	£
Bank loans and overdrafts	5,266	15,864
Obligations under finance leases and hire purchase contracts	566,168	501,399
Other creditors	2,596,504	–
	------------	---------
	3,167,938	517,263
	------------	---------

Obligations under finance leases and hire purchase contracts are secured by the related assets.

In February 2025 the Company entered into a Corporate Voluntary Arrangement. £330k is due within one year of the balance sheet date, £2,596,504 is included in creditors due over one year.

17. Finance leases and hire purchase contracts

The total future minimum lease payments under finance leases and hire purchase contracts are as follows:

	2025	2024
	£	£
Not later than 1 year	647,456	606,459
Later than 1 year and not later than 5 years	595,656	536,085
	------------	------------
	1,243,112	1,142,544
Less: future finance charges	( 109,944)	( 103,902)
	------------	------------
Present value of minimum lease payments	1,133,168	1,038,642
	------------	------------

18. Deferred tax

The deferred tax included in the statement of financial position is as follows:

	2025	2024
	£	£
Included in debtors (note 14)	–	190,803
	----	---------

The deferred tax account consists of the tax effect of timing differences in respect of:

	2025	2024
	£	£
Accelerated capital allowances	–	( 261,035)
Unused tax losses	–	451,838
	----	---------
	–	190,803
	----	---------

19. Employee benefits

Defined contribution plans

The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 198,284 (2024: £ 202,233 ).

20. Called up share capital

Issued, called up and fully paid

	2025		2024
	No.	£	No.	£
Ordinary shares of £ 1 each	2,000,000	2,000,000	2,000,000	2,000,000
	------------	------------	------------	------------

21. Financial commitments, guarantees and contingent liabilities

There is a charge in favour of AJWG Limited dated 24 January 2020 secured by a fixed and floating charge over the assets of the company.

There is a charge in favour of Bibby Financial Services Ltd dated 24 January 2020 secured by a fixed and floating charge over all fixed plant and machinery of the company containing a negative pledge.

22. Operating leases

The total future minimum lease payments under non-cancellable operating leases are as follows:

	2025	2024
	£	£
Not later than 1 year	2,001,627	1,406,134
Later than 1 year and not later than 5 years	2,926,933	2,806,044
	------------	------------
	4,928,560	4,212,178
	------------	------------

23. Related party transactions

During the year the company paid management charges of £211,500 (2024: £207,800) to a company related by virtue of common control. The company has taken advantage of the exemption available in accordance with FRS 102 Section 1.12(e) 'Related party disclosures' not to disclose transactions entered into between two or more members of the same group, as the company is a wholly owned subsidiary of the group to which it is a party to the transactions.

24. Controlling party

The immediate and ultimate parent company is AJWG Limited , which is incorporated in England & Wales, and is also the controlling party through share ownership. The registered office and place of business of AJWG Limited is The Old Rectory, High Street, Fillingham, Gainsborough, England. DN21 5BS AJWG Limited is also the smallest and largest group for which consolidated financial statements including Clugston Distribution Services Limited are prepared. The consolidated financial statements of AJWG Limited are available from Companies House, Crown Way, Cardiff. CF14 3UZ. The directors consider there is no ultimate controlling party.