Allyoung Limited - Limited company accounts 23.1

REGISTERED NUMBER: 07412528 (England and Wales)

Group Strategic Report,

Report of the Directors and

Consolidated Financial Statements

for the Year Ended 31 December 2022

for

Allyoung Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Consolidated Statement of Comprehensive Income

7

Consolidated Balance Sheet

8

Company Balance Sheet

9

Consolidated Statement of Changes in Equity

11

Company Statement of Changes in Equity

12

Consolidated Cash Flow Statement

13

Notes to the Consolidated Cash Flow Statement

14

Notes to the Consolidated Financial Statements

15

DIRECTORS:

L P Drumgold

R J Martin

S Mitchell

G W Mitchell

J R Young

REGISTERED OFFICE:

Lingfield House

11 Radford Crescent

Billericay

Essex

CM12 0DW

REGISTERED NUMBER:

07412528 (England and Wales)

AUDITORS:

Mudd Partners LLP

Statutory Auditors

Chartered Accountants

Lakeview House

4 Woodbrook Crescent

Billericay

Essex

CM12 0EQ

The directors present their strategic report of the company and the group for the year ended 31 December 2022.

REVIEW OF BUSINESS

The company holds some of the Group's freehold properties plus shares in its trading subsidiaries.

The properties are used by the subsidiary companies and rental incomes and outgoings are fairly static.

Income from subsidiaries is dependant on their profitability and the volume of investment expenditure, which is budgeted annually.

The Group has enhanced its trading activities and met the challenges of the past year successfully, resulting in increased turnover and profitability.

The Group has made a provision for setting a Carbon Reduction Plan for the year ahead to ensure that we continue the process towards sustainability.

All Group properties were formally revalued last year in line with the company's accounting policy. The directors assess that those values are unchanged.

The directors are pleased with the company's performance and look forward with confidence.

PRINCIPAL RISKS AND UNCERTAINTIES

The main issues of the global pandemic are now behind us. However, the challenges of high inflation and material supply issues are a cause for concern. Additional stock is being held to mitigate the risks associated with these issues.

Availability of new recruits is also considered a current risk facing the business and we expect to meet this challenge by continuing to ensure that the company is attractive to potential new employees.

Some of our markets are showing signs of slowing, but the effect on turnover should be mitigated by our policy of diversification and market expansion.

The directors are closely involved with the management of the company's various trading activities and are confident that it can meet the challenges ahead.

ON BEHALF OF THE BOARD:

L P Drumgold - Director

1 September 2023

The directors present their report with the financial statements of the company and the group for the year ended 31 December 2022.

DIVIDENDS

Dividends of £26,725 were paid to the minority interest shareholders of the subsidiary.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2022 to the date of this report.

L P Drumgold

R J Martin

S Mitchell

G W Mitchell

J R Young

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, Mudd Partners LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

L P Drumgold - Director

1 September 2023

Opinion

We have audited the financial statements of Allyoung Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2022 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2022 and of the group's profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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.

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 Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

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 Statement of Directors' Responsibilities set out on page three, 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 necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditors' 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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

-

enquiry of management, those charged with governance and the entity’s solicitors around actual and potential litigation and claims;

-

enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations;

-

reviewing minutes of meetings of those charged with governance;

-

reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

-

performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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 a Report of the Auditors 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.

Jeffrey Stanley FCA (Senior Statutory Auditor)

for and on behalf of Mudd Partners LLP

Statutory Auditors

Chartered Accountants

Lakeview House

4 Woodbrook Crescent

Billericay

Essex

CM12 0EQ

1 September 2023

TURNOVER

3

14,585,280

12,485,181

Cost of sales

10,871,433

9,665,195

GROSS PROFIT

3,713,847

2,819,986

Administrative expenses

2,611,454

2,489,710

1,102,393

330,276

Other operating income

76,270

72,295

OPERATING PROFIT

5

1,178,663

402,571

Income from fixed asset investments

124,188

-

Interest receivable and similar income

995

4

125,183

4

1,303,846

402,575

Gain/loss on revaluation of assets

100,279

1,574,640

1,404,125

1,977,215

Interest payable and similar expenses

6

21,667

21,526

PROFIT BEFORE TAXATION

1,382,458

1,955,689

Tax on profit

7

348,585

273,460

PROFIT FOR THE FINANCIAL YEAR

1,033,873

1,682,229

FIXED ASSETS

Intangible assets

9

-

-

Tangible assets

10

4,743,933

4,735,911

Investments

11

Interest in associate

769,546

669,267

5,513,479

5,405,178

CURRENT ASSETS

Stocks

12

1,428,732

1,165,550

Debtors

13

1,784,088

2,486,709

Cash at bank and in hand

2,716,545

2,117,381

5,929,365

5,769,640

CREDITORS

Amounts falling due within one year

14

3,127,092

3,302,700

NET CURRENT ASSETS

2,802,273

2,466,940

TOTAL ASSETS LESS CURRENT LIABILITIES

8,315,752

7,872,118

CREDITORS

Amounts falling due after more than one year

15

(674,482

)

(722,370

)

PROVISIONS FOR LIABILITIES

18

(329,696

)

(241,265

)

NET ASSETS

7,311,574

6,908,483

CAPITAL AND RESERVES

Called up share capital

19

380

430

Revaluation reserve

20

2,273,086

5,712,873

Capital redemption reserve

20

50

-

Retained earnings

20

4,728,058

965,180

SHAREHOLDERS' FUNDS

7,001,574

6,678,483

NON-CONTROLLING INTERESTS

310,000

230,000

TOTAL EQUITY

7,311,574

6,908,483

The financial statements were approved by the Board of Directors and authorised for issue on 1 September 2023 and were signed on its behalf by:

L P Drumgold - Director

FIXED ASSETS

Intangible assets

9

-

-

Tangible assets

10

2,635,290

2,670,000

Investments

11

4,473,918

3,909,624

7,109,208

6,579,624

CURRENT ASSETS

Debtors

13

119,559

159,309

Cash at bank

99,498

192,006

219,057

351,315

CREDITORS

Amounts falling due within one year

14

163,758

112,743

NET CURRENT ASSETS

55,299

238,572

TOTAL ASSETS LESS CURRENT LIABILITIES

7,164,507

6,818,196

CREDITORS

Amounts falling due after more than one year

15

(25,932

)

(35,732

)

PROVISIONS FOR LIABILITIES

18

(136,817

)

(103,980

)

NET ASSETS

7,001,758

6,678,484

CAPITAL AND RESERVES

Called up share capital

19

380

430

Revaluation reserve

20

5,408,775

5,049,405

Capital redemption reserve

20

50

-

Retained earnings

20

1,592,553

1,628,649

SHAREHOLDERS' FUNDS

7,001,758

6,678,484

Company's profit for the financial year

927,331

1,753,849

The financial statements were approved by the Board of Directors and authorised for issue on 1 September 2023 and were signed on its behalf by:

L P Drumgold - Director

Called up

share

Retained

Revaluation

capital

earnings

reserve

£

£

£

Balance at 1 January 2021

430

2,152,989

2,994,962

Changes in equity

Total comprehensive income

-

(1,187,809

)

2,717,911

Balance at 31 December 2021

430

965,180

5,712,873

Changes in equity

Purchase of own shares

(50

)

-

-

Total comprehensive income

-

3,762,878

(3,439,787

)

Balance at 31 December 2022

380

4,728,058

2,273,086

Capital

redemption

Non-controlling

Total

reserve

Total

interests

equity

£

£

£

£

Balance at 1 January 2021

-

5,148,381

108,857

5,257,238

Changes in equity

Dividends

-

-

(30,984

)

(30,984

)

Total comprehensive income

-

1,530,102

152,127

1,682,229

Balance at 31 December 2021

-

6,678,483

230,000

6,908,483

Changes in equity

Purchase of own shares

-

(50

)

-

(50

)

Dividends

-

-

(26,725

)

(26,725

)

Total comprehensive income

50

323,141

106,725

429,866

Balance at 31 December 2022

50

7,001,574

310,000

7,311,574

Called up

Capital

share

Retained

Revaluation

redemption

Total

capital

earnings

reserve

reserve

equity

£

£

£

£

£

Balance at 1 January 2021

430

1,492,291

3,431,914

-

4,924,635

Changes in equity

Total comprehensive income

-

136,358

1,617,491

-

1,753,849

Balance at 31 December 2021

430

1,628,649

5,049,405

-

6,678,484

Changes in equity

Purchase of own shares

(50

)

-

-

-

(50

)

Total comprehensive income

-

(36,096

)

359,370

50

323,324

Balance at 31 December 2022

380

1,592,553

5,408,775

50

7,001,758

Cash flows from operating activities

Cash generated from operations

1

1,470,573

366,867

Interest paid

(21,667

)

(21,526

)

Tax paid

(153,285

)

(99,913

)

Net cash from operating activities

1,295,621

245,428

Cash flows from investing activities

Purchase of tangible fixed assets

(147,772

)

(44,062

)

Sale of tangible fixed assets

3,411

-

Sale of fixed asset investments

124,188

-

Interest received

995

4

Net cash from investing activities

(19,178

)

(44,058

)

Cash flows from financing activities

Loan repayments in year

(46,497

)

(168,483

)

Share buyback

(604,057

)

-

Dividends paid to minority interests

(26,725

)

(30,984

)

Net cash from financing activities

(677,279

)

(199,467

)

Increase in cash and cash equivalents

599,164

1,903

Cash and cash equivalents at beginning of year

2

2,117,381

2,115,478

Cash and cash equivalents at end of year

2

2,716,545

2,117,381

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31.12.22

31.12.21

£

£

Profit before taxation

1,382,458

1,955,689

Depreciation charges

139,752

360,312

Profit on disposal of fixed assets

(3,411

)

-

Gain on revaluation of fixed assets

(100,279

)

(1,574,640

)

Finance costs

21,667

21,526

Finance income

(125,183

)

(4

)

1,315,004

762,883

(Increase)/decrease in stocks

(263,182

)

63,755

Decrease/(increase) in trade and other debtors

702,621

(1,378,974

)

(Decrease)/increase in trade and other creditors

(283,870

)

919,203

Cash generated from operations

1,470,573

366,867

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2022

31.12.22

1.1.22

£

£

Cash and cash equivalents

2,716,545

2,117,381

Year ended 31 December 2021

31.12.21

1.1.21

£

£

Cash and cash equivalents

2,117,381

2,115,478

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.22

Cash flow

At 31.12.22

£

£

£

Net cash

Cash at bank and in hand

2,117,381

599,164

2,716,545

2,117,381

599,164

2,716,545

Debt

Debts falling due within 1 year

(45,350

)

(1,391

)

(46,741

)

Debts falling due after 1 year

(722,370

)

47,888

(674,482

)

(767,720

)

46,497

(721,223

)

Total

1,349,661

645,661

1,995,322

1.	STATUTORY INFORMATION

Allyoung Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Basis of consolidation

In the parent company financial statements, the 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.

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

The consolidated financial statements incorporate those of Allyoung Limited and all of its subsidiaries (i.e. entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits).

All financial statements are made up to 31 December 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 group.

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.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. 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.

Changes in accounting policies

Depreciation is provided for on Freehold Property in accordance with FRS102 at the rates set out in these policies.

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.

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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.

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 5 years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property

-

2% on cost

Plant and machinery

-

33% on cost

Fixtures and fittings

-

33% on cost

Motor vehicles

-

33% on cost

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

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.

Investments in associates

Investments in associate undertakings are recognised at cost.

Interests in subsidiaries, associates and jointly controlled entities are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value of the underlying assets and liabilities at each reporting date. Transaction costs are expensed to profit or loss as incurred. Changes in fair value are recognised in other comprehensive income except to the extent that a gain reverses a loss previously recognised in profit or loss, or a loss exceeds the accumulated gains recognised in equity; such gains and loss are recognised in profit or loss.

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.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.