Company Registration No. 02860394 (England and Wales)
ABC LEISURE GROUP LIMITED
ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2021
ABC LEISURE GROUP LIMITED
COMPANY INFORMATION
Directors
Mr S Boddice
Mr E J Helps
Mr C Onens
Mr K Threlfall
Secretary
Mrs S Mitchell
Company number
02860394
Registered office
Scarfield Wharf
Scarfield Hill
Alvechurch
Worcestershire
B48 7SQ
Auditor
Ormerod Rutter Limited
The Oakley
Kidderminster Road
Droitwich
Worcestershire
WR9 9AY
ABC LEISURE GROUP LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Group statement of comprehensive income
7
Group balance sheet
8
Company balance sheet
9
Group statement of changes in equity
10
Group statement of cash flows
11
Notes to the financial statements
12 - 30
ABC LEISURE GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2021
- 1 -
The directors present the strategic report for the year ended 31 October 2021.
Fair review of the business
The principal activity of the business continues to be the operation of UK inland waterway marinas and associated activities. The 2021 financial year continued to be impacted by the global Coronavirus Pandemic.
Government restrictions related to Covid-19 curtailed the Companies activities through to April 2021. The Company made use of partial furlough through the winter period to match resource with activity levels. The Company also qualified for sector specific Government grants. The restrictions continued into the operating season, including the busy Easter period, which curtailed activity. Despite the delayed start to the season once the Company was able to operate activity levels were high.
The Company added a 16
th
marina in February 2021 with the purchase of Springwood Haven Marina, located on the Coventry Canal in Nuneaton.
The Company continues to enjoy excellent customer service feedback from several sources. The company recognises that the high customer service level is due to the fantastic teams that operate the marinas.
ABC Boat Hire has been extremely popular with UK based holiday makers. Overseas guests have been limited due to travel restrictions, but it is anticipated they will return as restrictions are lifted.
Boatbuilding has been impacted by the increasing cost of raw materials. This has been offset by delaying the sale of boats until closer to the scheduled build slot.
Mooring occupancy rates continue at around the 90% level with the bulk of vacant moorings restricted.
All other business activities performed in line with expectations and the Directors are happy with the performance in 2021.
Principal risks and uncertainties
The Directors and senior managers are proactive in their approach to potential risks and uncertainties.
Marinas do represent a multi hazardous environment for both guests and employees. ABC has a well-developed Health and Safety system and retain a third-party specialist to offer Health & Safety advice which includes annual inspection of all sites. All incidents are reported and reviewed for trends which allow processes and procedures to be adapted to mitigate future risk. The accident frequency rate remains low but is slightly higher than the previous year which is not directly comparable due to the lockdowns.
In the event of a complete or partial closure of any one site business continuity would be ensured by existing contingency planning and suitable insurance policies.
The risk of fraud through misappropriation of assets including banking, stock or cash theft is mitigated through the management structure and control through processes and procedures.
In line with most UK leisure related businesses ABC is exposed to several market risk factors such as the economy and weather, but the spread of business activities and locations minimises the impact of this.
ABC operates on various navigation authorities’ waterways. Any risk associated with operating on third party waterways is mitigated by representation as an industry through British Marine.
Mr C Onens
Director
29 April 2022
ABC LEISURE GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2021
- 2 -
The directors present their annual report and consolidated financial statements for the year ended 31 October 2021.
Principal activities
The principal activity of the company and group continued to be that of the operation of inland waterway marinas.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr S Boddice
Mr E J Helps
Mr C Onens
Mr K Threlfall
Results and dividends
The results for the year are set out on page 7.
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
Financial instruments
The group uses various financial instruments. These include cash and various items such as trade debtors and trade creditors that arise from its operations. Their existence exposes the group to a number of financial risks which are described in more detail below.
Liquidity Risk
The group manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the group has sufficient liquid resources to meet the operating needs of the business.
Interest rate risk
The group is exposed to fair value interest rate risk on its fixed rate borrowings and cash flow interest rate risk on floating rate deposits, bank overdrafts and loans. The group uses interest rate derivatives to manage the mix of fixed and variable rate debt so as to reduce its exposure to changes in interest rates.
Future developments
The company will continue to trade as an inland waterway marinas operator in the future.
Auditor
The auditors, Ormerod Rutter Limited, will be proposed for re-appointment in accordance with section 487(2) of the Companies act 2006.
ABC LEISURE GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2021
- 3 -
Statement of directors' responsibilities
The directors are responsible 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
-
select suitable accounting policies and then apply them consistently;
-
make judgements and accounting estimates that are reasonable and prudent;
-
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the
;
-
prepare the
on the going concern basis unless it is inappropriate to presume that the
group and
company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor
of the
company is
unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor
of the
company
is
aware of that information.
On behalf of the board
Mr C Onens
Director
29 April 2022
ABC LEISURE GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ABC LEISURE GROUP LIMITED
- 4 -
Opinion
We have audited the
financial statements of
ABC Leisure Group Limited
(the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2021 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of cash flows and notes to the financial statements,
including
significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102
The Financial Reporting Standard applicable in the UK and Republic of Ireland
(United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the group's and the parent company's affairs as at 31 October 2021 and of the group's profit for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the
Auditor's
responsibilities for the audit of the
financial statements
section of our report. We are independent of the
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
group's and
parent
company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
ABC LEISURE GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ABC LEISURE GROUP LIMITED
- 5 -
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the strategic report and the directors'
r
eport for the financial year for which the financial statements are prepared is consistent with the financial statements
; and
-
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the
group and the parent
company and its environment obtained in the course of the audit, we have not identifie
d
material misstatements in the strategic report and the directors'
r
eport
.
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:
-
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
-
the parent company financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of directors' remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors'
r
esponsibilities
s
tatement, 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
parent
company
'
s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the
directors
either
intend
to liquidate the
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
.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
-
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or operations of the company and group, including the Companies Act 2006 and taxation legislation and;
-
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management.
ABC LEISURE GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ABC LEISURE GROUP LIMITED
- 6 -
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
-
making enquiries of management as to where their knowledge of actual, suspected and alleged fraud;
-
considering internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations
To address the risk of fraud through management bias and override of controls, we:
-
performed analytical procedures to identify any unusual transactions or unexpected relationships;
-
tested journal entries to identify unusual transactions;
-
assessed whether judgements and assumptions made in determining the accounting estimates set out in note 1
were indicative of potential bias.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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.
Colm McGrory FCA (Senior Statutory Auditor)
For and on behalf of Ormerod Rutter Limited
29 April 2022
Chartered Accountants
Statutory Auditor
The Oakley
Kidderminster Road
Droitwich
Worcestershire
WR9 9AY
ABC LEISURE GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2021
- 7 -
2021
2020
Notes
£
£
Turnover
3
11,752,161
8,885,054
Cost of sales
(6,189,054)
(5,113,083)
Gross profit
5,563,107
3,771,971
Administrative expenses
(4,796,408)
(4,286,021)
Other operating income
183,149
601,432
Exceptional item
(336,365)
Operating profit
4
613,483
87,382
Interest payable and similar expenses
8
(143,156)
(167,298)
Profit/(loss) before taxation
470,327
(79,916)
Tax on profit/(loss)
9
(296,222)
(69,304)
Profit/(loss) for the financial year
174,105
(149,220)
Profit/(loss) for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
ABC LEISURE GROUP LIMITED
GROUP BALANCE SHEET
AS AT 31 OCTOBER 2021
31 October 2021
- 8 -
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
12
11,854,260
10,877,540
Investments
13
603
398
11,854,863
10,877,938
Current assets
Stocks
14
843,010
539,208
Debtors
15
846,811
1,132,209
Cash at bank and in hand
1,768,880
2,150,640
3,458,701
3,822,057
Creditors: amounts falling due within one year
16
(8,791,913)
(5,883,217)
Net current liabilities
(5,333,212)
(2,061,160)
Total assets less current liabilities
6,521,651
8,816,778
Creditors: amounts falling due after more than one year
17
(2,993,043)
(5,501,287)
Provisions for liabilities
Deferred tax liability
19
246,812
207,800
(246,812)
(207,800)
Net assets
3,281,796
3,107,691
Capital and reserves
Called up share capital
21
200,001
200,001
Other reserves
692,298
703,776
Profit and loss reserves
2,389,497
2,203,914
Total equity
3,281,796
3,107,691
The financial statements were approved by the board of directors and authorised for issue on 29 April 2022 and are signed on its behalf by:
29 April 2022
Mr C Onens
Director
ABC LEISURE GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 31 OCTOBER 2021
31 October 2021
- 9 -
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
12
11,845,445
10,868,725
Investments
13
603
398
11,846,048
10,869,123
Current assets
Stocks
14
843,010
539,208
Debtors
15
918,214
1,157,133
Cash at bank and in hand
1,735,365
2,117,125
3,496,589
3,813,466
Creditors: amounts falling due within one year
16
(8,536,417)
(5,654,086)
Net current liabilities
(5,039,828)
(1,840,620)
Total assets less current liabilities
6,806,220
9,028,503
Creditors: amounts falling due after more than one year
17
(2,993,043)
(5,501,287)
Provisions for liabilities
Deferred tax liability
19
245,137
206,125
(245,137)
(206,125)
Net assets
3,568,040
3,321,091
Capital and reserves
Called up share capital
21
200,001
200,001
Other reserves
692,298
703,776
Profit and loss reserves
2,675,741
2,417,314
Total equity
3,568,040
3,321,091
As permitted by s408 Companies Act 2006, the
c
ompany has not presented its own profit and loss account and related notes. The
c
ompany’s profit for the year was £246,949 (2020 - £43,760 profit).
The financial statements were approved by the board of directors and authorised for issue on 29 April 2022 and are signed on its behalf by:
29 April 2022
Mr C Onens
Director
Company Registration No. 02860394
ABC LEISURE GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2021
- 10 -
Share capital
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 28 October 2019
200,001
715,254
2,361,656
3,276,911
Year ended 25 October 2020:
Loss and total comprehensive income for the year
-
-
(149,220)
(149,220)
Dividends
10
-
-
(20,000)
(20,000)
Transfers
-
-
11,478
11,478
Other movements
-
(11,478)
-
(11,478)
Balance at 25 October 2020
200,001
703,776
2,203,914
3,107,691
Year ended 31 October 2021:
Profit and total comprehensive income for the year
-
-
174,105
174,105
Transfers
-
-
11,478
11,478
Other movements
-
(11,478)
-
(11,478)
Balance at 31 October 2021
200,001
692,298
2,389,497
3,281,796
ABC LEISURE GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2021
- 11 -
2021
2020
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
1,544,197
1,606,940
Interest paid
(143,156)
(167,298)
Income taxes paid
(54,037)
(211,858)
Net cash inflow from operating activities
1,347,004
1,227,784
Investing activities
Purchase of intangible assets
(315,960)
(84,147)
Purchase of tangible fixed assets
(1,309,622)
(795,056)
Proceeds on disposal of tangible fixed assets
-
7,136
Proceeds on disposal of subsidiaries
(205)
(208)
Net cash used in investing activities
(1,625,787)
(872,275)
Financing activities
Repayment of bank loans
(2,716,578)
2,289,161
Dividends paid to equity shareholders
-
(20,000)
Net cash (used in)/generated from financing activities
(2,716,578)
2,269,161
Net (decrease)/increase in cash and cash equivalents
(2,995,361)
2,624,670
Cash and cash equivalents at beginning of year
2,150,640
(474,030)
Cash and cash equivalents at end of year
(844,721)
2,150,640
Relating to:
Cash at bank and in hand
1,768,880
2,150,640
Bank overdrafts included in creditors payable within one year
(2,613,601)
-
ABC LEISURE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2021
- 12 -
1
Accounting policies
Company information
ABC Leisure Group Limited
(“the company”)
is a
private
limited company domiciled and incorporated in
England and Wales
.
The registered office is
Scarfield Wharf, Scarfield Hill, Alvechurch, Worcestershire, B48 7SQ.
The group consists of ABC Leisure Group Limited and all of its subsidiaries.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Basis of consolidation
In the parent company
financial statements, t
he cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date.
Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date.
I
nvestments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
The consolidated group financial statements consist of the financial statements of the parent company
ABC Leisure Group Limited
together with
all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates
.
All
financial statements
are made up to 31 October 2021
.
Where necessary, adjustments are made to the
financial statements
of subsidiaries to bring the accounting policies used into line with those used by other members of the
g
roup.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Springwood Haven Leisure Limited has
been included in the group using the
purchase method of accounting. Accordingly, the group
profit or loss
and statement of cash flows include the results and cash flows of
Springwood Haven Leisure Limited
for the
3
month period from its acquisition on
the
12 February 2021 until it's trade and assets were transferred into ABC Leisure Group Limited on 27 May 2021
. The purchase consideration
has been allocated to the assets and liabilities
on the basis of fair value at the date of acquisition.
Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates. In the group
financial statements,
associates are accounted for
using the equity method.
ABC LEISURE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2021
1
Accounting policies
(Continued)
- 13 -
1.3
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the
group
has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.4
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.5
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated
.
1.6
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of
a
business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated
amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.7
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Land and buildings
2% on cost
Narrow Boats
10% on cost
Plant and Machinery
20% on cost
Freehold land and assets in the course of construction are not depreciated.
ABC LEISURE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2021
1
Accounting policies
(Continued)
- 14 -
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the
profit and loss account
.
1.8
Fixed asset investments
I
n the parent company
financial statements,
investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the
group. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
1.9
Impairment of fixed assets
At each reporting
period
end date, the
group
reviews the carrying amounts of its tangible
and intangible
assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the
company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.10
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at
the
lower of
cost and replacement cost
, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
ABC LEISURE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2021
1
Accounting policies
(Continued)
- 15 -
1.11
Construction contracts
Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.
When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.
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 probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.
The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.
The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.
1.12
Cash at bank and in hand
Cash and cash equivalents
are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.13
Financial instruments
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's
balance sheet
when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include
debtors
and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
m
ethod unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
ABC LEISURE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2021
1
Accounting policies
(Continued)
- 16 -
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those
held
at
fair value through profit and loss
, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities, including
creditors
, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
ABC LEISURE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2021
1
Accounting policies
(Continued)
- 17 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts,
are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as
being measured at
fair value th
r
ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the
group's contractual obligations expire or are discharged or cancelled.
1.14
Equity instruments
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
1.15
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the
profit and loss account
because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
group’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the
profit and loss account
, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset
if, and only if, there is
a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.16
Employee benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
ABC LEISURE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2021
1
Accounting policies
(Continued)
- 18 -
1.17
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.18
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.19
Other reserves are made up of balances transferred from the revaluation reserve on transition to FRS 102, where previous revaluation of freehold properties is assumed to be deemed cost on transition.
The other reserves remain on the balance sheet until properties to which they relate are disposed of.
2
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Turnover and other revenue
2021
2020
£
£
Other significant revenue
Grants received
183,149
601,432
All of the turnover is attributable to the UK market.
4
Operating profit
2021
2020
£
£
Operating profit for the year is stated after charging/(crediting):
Research and development costs
111,724
81,967
Government grants
(183,149)
(601,432)
Depreciation of owned tangible fixed assets
332,902
260,912
Profit on disposal of tangible fixed assets
(1,375)
Amortisation of intangible assets
315,960
277,127
ABC LEISURE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2021
- 19 -
5
Auditor's remuneration
2021
2020
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
15,750
15,500
For other services
Taxation compliance services
215
207
All other non-audit services
1,500
13,546
1,715
13,753
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2021
2020
2021
2020
Number
Number
Number
Number
207
190
207
190
Their aggregate remuneration comprised:
Group
Company
2021
2020
2021
2020
£
£
£
£
Wages and salaries
3,813,459
3,339,019
3,813,459
3,339,019
Social security costs
280,260
241,253
280,260
241,253
Pension costs
88,957
95,507
88,957
95,507
4,182,676
3,675,779
4,182,676
3,675,779
7
Directors' remuneration
2021
2020
£
£
Remuneration for qualifying services
106,491
130,323
Company pension contributions to defined contribution schemes
3,895
3,494
110,386
133,817
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2020 - 1).
ABC LEISURE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2021
- 20 -
8
Interest payable and similar expenses
2021
2020
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
143,156
167,298
9
Taxation
2021
2020
£
£
Current tax
UK corporation tax on profits for the current period
245,462
42,289
Adjustments in respect of prior periods
21,041
13,575
Total current tax
266,503
55,864
Deferred tax
Origination and reversal of timing differences
29,719
13,440
Total tax charge
296,222
69,304
The actual charge for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:
2021
2020
£
£
Profit/(loss) before taxation
470,327
(79,916)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 19.00% (2020: 19.00%)
89,362
(15,184)
Tax effect of expenses that are not deductible in determining taxable profit
153,127
37,691
Tax effect of income not taxable in determining taxable profit
(1,197)
Under/(over) provided in prior years
21,041
13,575
Deferred tax adjustments in respect of prior years
29,719
13,440
Depreciation in excess of capital allowances
2,973
20,979
Taxation charge
296,222
69,304
10
Dividends
2021
2020
Recognised as distributions to equity holders:
£
£
Interim paid
-
20,000
ABC LEISURE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2021
- 21 -
11
Intangible fixed assets
Group
Goodwill
£
Cost
At 26 October 2020
298,569
Additions
315,960
At 31 October 2021
614,529
Amortisation and impairment
At 26 October 2020
298,569
Amortisation charged for the year
315,960
At 31 October 2021
614,529
Carrying amount
At 31 October 2021
At 25 October 2020
Company
Goodwill
£
Cost
At 26 October 2020
84,147
Additions
315,960
At 31 October 2021
400,107
Amortisation and impairment
At 26 October 2020
84,147
Amortisation charged for the year
315,960
At 31 October 2021
400,107
Carrying amount
At 31 October 2021
At 25 October 2020
ABC LEISURE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2021
- 22 -
12
Tangible fixed assets
Group
Land and buildings
Narrow Boats
Plant and Machinery
Total
£
£
£
£
Cost or valuation
At 26 October 2020
11,606,623
85,237
1,527,784
13,219,644
Additions
985,707
323,915
1,309,622
At 31 October 2021
12,592,330
85,237
1,851,699
14,529,266
Depreciation and impairment
At 26 October 2020
1,172,536
44,634
1,124,934
2,342,104
Depreciation charged in the year
153,326
4,598
174,978
332,902
At 31 October 2021
1,325,862
49,232
1,299,912
2,675,006
Carrying amount
At 31 October 2021
11,266,468
36,005
551,787
11,854,260
At 25 October 2020
10,434,087
40,603
402,850
10,877,540
Company
Land and buildings
Narrow Boats
Plant and Machinery
Total
£
£
£
£
Cost or valuation
At 26 October 2020
11,606,623
85,237
1,511,332
13,203,192
Additions
985,707
323,915
1,309,622
At 31 October 2021
12,592,330
85,237
1,835,247
14,512,814
Depreciation and impairment
At 26 October 2020
1,172,536
44,634
1,117,297
2,334,467
Depreciation charged in the year
153,326
4,598
174,978
332,902
At 31 October 2021
1,325,862
49,232
1,292,275
2,667,369
Carrying amount
At 31 October 2021
11,266,468
36,005
542,972
11,845,445
At 25 October 2020
10,434,087
40,603
394,035
10,868,725
ABC LEISURE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2021
12
Tangible fixed assets
(Continued)
- 23 -
The carrying value of land and buildings comprises:
Group
Company
2021
2020
2021
2020
£
£
£
£
Freehold
9,168,132
8,306,913
9,168,132
8,306,913
Long leasehold
1,113,682
1,116,727
1,113,682
1,116,727
Short leasehold
984,654
1,010,447
984,654
1,010,447
11,266,468
10,434,087
11,266,468
10,434,087
The directors have obtained a professional valuation of all the land and buildings held within the group at the year end but have opted not to reflect this revaluation within the financial statements and have maintained the accounting treatment disclosed above.
The valuation was carried out by Colliers International Property Advisers UK LLP in January 2020 and reported that the market value of the combined freehold and leasehold properties was £16.68m.
Upon transition to FRS 102 the company elected to make use of a transitional arrangement with regards to assets held under the revaluation model. On transition the company reclassified previously revalued asset amounts as deemed cost and from henceforth these assets were held under the cost model.
If revalued assets were stated on an historical cost basis rather than a fair value basis, the total amounts included would have been as follows:
2021
2020
£
£
Group
Cost
7,408,722
3,724,702
Accumulated depreciation
(742,627)
(594,453)
Carrying value
6,666,095
3,130,249
Company
Cost
7,408,722
3,724,702
Accumulated depreciation
(742,627)
(594,453)
Carrying value
6,666,095
3,130,249
ABC LEISURE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2021
- 24 -
13
Fixed asset investments
Group
Company
2021
2020
2021
2020
Notes
£
£
£
£
Investments in subsidiaries
413
208
413
208
Unlisted investments
190
190
190
190
603
398
603
398
Movements in fixed asset investments
Group
Shares in subsidiaries
Other investments
Total
£
£
£
Cost or valuation
At 26 October 2020
208
190
398
Additions
415,742
-
415,742
Disposals
(2)
-
(2)
At 31 October 2021
415,948
190
416,138
Impairment
At 26 October 2020
-
-
-
Impairment losses
415,535
-
415,535
At 31 October 2021
415,535
-
415,535
Carrying amount
At 31 October 2021
413
190
603
At 25 October 2020
208
190
398
ABC LEISURE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2021
13
Fixed asset investments
(Continued)
- 25 -
Movements in fixed asset investments
Company
Shares in subsidiaries
Other investments
Total
£
£
£
Cost or valuation
At 26 October 2020
208
190
398
Additions
415,742
-
415,742
Disposals
(2)
-
(2)
At 31 October 2021
415,948
190
416,138
Impairment
At 26 October 2020
-
-
-
Impairment losses
415,535
-
415,535
At 31 October 2021
415,535
-
415,535
Carrying amount
At 31 October 2021
413
190
603
At 25 October 2020
208
190
398
14
Stocks
Group
Company
2021
2020
2021
2020
£
£
£
£
Finished goods and goods for resale
843,010
539,208
843,010
539,208
15
Debtors
Group
Company
2021
2020
2021
2020
Amounts falling due within one year:
£
£
£
£
Trade debtors
275,663
235,455
275,665
235,457
Gross amounts owed by contract customers
53,925
53,925
Unpaid share capital
2
2
Amounts owed by group undertakings
345
385
345
385
Other debtors
302,048
465,320
348,525
465,318
Prepayments and accrued income
268,753
377,122
293,679
402,048
846,811
1,132,209
918,214
1,157,133
ABC LEISURE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2021
- 26 -
16
Creditors: amounts falling due within one year
Group
Company
2021
2020
2021
2020
Notes
£
£
£
£
Bank loans and overdrafts
18
2,966,830
561,563
2,966,830
561,563
Trade creditors
486,589
463,931
481,569
458,911
Gross amounts owed to contract customers
198,518
198,518
Amounts owed to group undertakings
167,495
55,574
Corporation tax payable
245,462
42,289
245,462
42,289
Other taxation and social security
610,504
274,802
609,626
273,924
Other creditors
1,191,598
1,250,505
774,505
971,698
Accruals and deferred income
3,092,412
3,290,127
3,092,412
3,290,127
8,791,913
5,883,217
8,536,417
5,654,086
17
Creditors: amounts falling due after more than one year
Group
Company
2021
2020
2021
2020
Notes
£
£
£
£
Bank loans and overdrafts
18
2,993,043
5,501,287
2,993,043
5,501,287
18
Loans and overdrafts
Group
Company
2021
2020
2021
2020
£
£
£
£
Bank loans
3,346,272
6,062,850
3,346,272
6,062,850
Bank overdrafts
2,613,601
2,613,601
5,959,873
6,062,850
5,959,873
6,062,850
Payable within one year
2,966,830
561,563
2,966,830
561,563
Payable after one year
2,993,043
5,501,287
2,993,043
5,501,287
The long-term loans and bank overdrafts are secured by fixed and floating charges over all assets of the company, as well as specific fixed charges on certain assets held within land and buildings.
ABC LEISURE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2021
- 27 -
19
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
2021
2020
Group
£
£
Accelerated capital allowances
94,042
73,253
Tax losses
152,770
134,547
246,812
207,800
Liabilities
Liabilities
2021
2020
Company
£
£
Accelerated capital allowances
92,367
71,578
Tax losses
152,770
134,547
245,137
206,125
Group
Company
2021
2021
Movements in the year:
£
£
Liability at 26 October 2020
207,800
206,125
Charge to profit or loss
39,012
39,012
Liability at 31 October 2021
246,812
245,137
20
Retirement benefit schemes
2021
2020
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
88,957
95,507
A
defined contribution pension scheme
is operated
for all qualifying employees.
The assets of the scheme are held separately from those of the group in an independently administered fund.
Amounts outstanding at the end of the accounting period in respect of pension contributions amounted to £7,893 (2020: £7,108).
ABC LEISURE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2021
- 28 -
21
Share capital
Group and company
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A of £1 each
66,667
66,667
66,667
66,667
Ordinary B of £1 each
66,667
66,667
66,667
66,667
Ordinary C of £1 each
66,667
66,667
66,667
66,667
200,001
200,001
200,001
200,001
The company has three separate class of ordinary shares. Each class carries voting rights and rank pari passu.
22
Operating lease commitments
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2021
2020
2021
2020
£
£
£
£
Within one year
127,804
127,804
127,804
127,804
Between two and five years
511,216
511,216
511,216
511,216
In over five years
2,946,761
3,074,565
2,946,761
3,074,565
3,585,781
3,713,585
3,585,781
3,713,585
23
Capital commitments
Amounts contracted for but not provided in the financial statements:
Group
Company
2021
2020
2021
2020
£
£
£
£
Acquisition of tangible fixed assets
25,476
-
25,476
-
ABC LEISURE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2021
- 29 -
24
Related party transactions
Transactions with related parties
During the year the group entered into the following transactions with related parties:
Sales
Purchases
2021
2020
2021
2020
£
£
£
£
Company
Entities over which the company has control, joint control or significant influence
2,056
1,377
7,910
8,845
Other related parties
300,131
855,599
-
-
The following amounts were outstanding at the reporting end date:
Amounts due to related parties
2021
2020
£
£
Company
Entities with control, joint control or significant influence over the company
301
-
Entities over which the company has control, joint control or significant influence
5,038
14,773
Other related parties
156,906
-
The following amounts were outstanding at the reporting end date:
Amounts due from related parties
2021
2020
Balance
Balance
£
£
Company
Entities over which the company has control, joint control or significant influence
345
361
Other related parties
189
385
ABC LEISURE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2021
- 30 -
25
Cash generated from group operations
2021
2020
£
£
Profit/(loss) for the year after tax
174,105
(149,220)
Adjustments for:
Taxation charged
296,222
69,304
Finance costs
143,156
167,298
Gain on disposal of tangible fixed assets
-
(1,375)
Amortisation and impairment of intangible assets
315,960
277,127
Depreciation and impairment of tangible fixed assets
332,902
260,912
Movements in working capital:
(Increase)/decrease in stocks
(303,802)
12,854
Decrease in debtors
285,398
364,397
Increase in creditors
300,256
605,643
Cash generated from operations
1,544,197
1,606,940
26
Analysis of changes in net debt - group
26 October 2020
Cash flows
31 October 2021
£
£
£
Cash at bank and in hand
2,150,640
(381,760)
1,768,880
Bank overdrafts
(2,613,601)
(2,613,601)
2,150,640
(2,995,361)
(844,721)
Borrowings excluding overdrafts
(6,062,850)
2,716,578
(3,346,272)
(3,912,210)
(278,783)
(4,190,993)
27
Analysis of changes in net debt - company
26 October 2020
Cash flows
31 October 2021
£
£
£
Cash at bank and in hand
2,117,125
(381,760)
1,735,365
Bank overdrafts
(2,613,601)
(2,613,601)
2,117,125
(2,995,361)
(878,236)
Borrowings excluding overdrafts
(6,062,850)
2,716,578
(3,346,272)
(3,945,725)
(278,783)
(4,224,508)
2021-10-31
2020-10-26
false
CCH Software
CCH Accounts Production 2022.100
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Mr C Onens
Mr K Threlfall
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2020-10-26
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2020-10-26
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2019-10-28
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2020-10-25
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