The directors present the strategic report for the year ended 30 June 2020.
We aim to present a balanced and comprehensive review of the development and performance of the group during the year and its position at the year end. Our review is consistent with the size and nature of the group and is written in the context of the risks and uncertainties we face.
The group has generated sales of £22.7m and profit before tax of £3.4m for the period. These results were in line with expectations. N ew contracts have been gained during the year which will result in continued growth moving forward.
The recent emergence of the Coronavirus COVID-19 pandemic will present challenges and opportunities both operationally and financially. The group will continue to adjust its strategy and seek opportunities to meet our customers’ changing needs.
Significant investment has continued to be made in production machinery and sustainable initiatives during this period, which further increases the group’s production capabilities as well as helping to reduce our carbon footprint in line with our Sustainability Pledge.
During the year one of the subsidiary companies within the group (Leeways Packaging Services Limited) won the Family Business Of The Year Award at the Gloucestershire Live Business Awards in addition to Business Of The Year and Family Business Of The Year at the Forest Business Awards in recognition of the company’s successful, long running family history.
The board has assessed the key risks to the group as follows:
Market Risk
The board monitors the state of the market segments that affect the group and evolves the business strategy as required. The main risk that the group is exposed to is fluctuations in commodity prices.
Financial risks are detailed below.
The group's financial instruments comprise cash at bank, overdraft, bank loans, hire purchase contracts and various items such as trade debtors, trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise adequate finance for the group's operations.
The main risks arising from the group's financial instruments are interest rate fluctuations and liquidity risk. It is the group's policy to finance its operations through a mixture of cash and borrowings and to review periodically the mix of these instruments with regard to the projected cash flow requirements of the group and an acceptable level of risk exposure.
The group continues to explore new business opportunities and continues to invest in warehouse and manufacturing facilities along with further production machinery to assist growth. The group is also looking at investments to enable the production of more sustainable products and investment in renewable energy sources to help to further reduce its carbon footprint.
Group sales for the year were £22,710,183 whilst profit before tax rose from £2,098,826 to £3,4 20 , 724 , which has helped contribute towards an increase in net assets from £12,304,827 to £14, 876 , 911 .
Research and development activities are ongoing to develop new products.
On behalf of the board
The directors present their annual report and financial statements for the year ended 30 June 2020.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £375,000. The directors do not recommend payment of a further dividend.
On 7 September 2020, Group Audit Services Limited (trading as Baldwins Audit Services) changed its name to Azets Audit Services Limited. The name it practices under is Azets Audit Services and, accordingly, it has signed the Report of the Independent Auditors in its new name.
We have audited the financial statements of Leeways Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2020 which comprise the group statement of income and retained earnings, the group balance sheet, the company balance sheet, the group statement of cash flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor'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
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the group's or the parent company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue .
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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.
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.
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 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.
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.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities . This description forms part of our auditor’s report.
Use of our report
This report is made solely to the 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.
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 £1,122,537 (2019 - £1,290,871 profit).
Leeways Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Lobstock, Churcham, Gloucester, United Kingdom, GL2 8AN.
The group consists of Leeways Group Limited and all of its subsidiaries.
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.
The parent company and its subsidiaries are qualifying entit ies for the purposes of FRS 102, being member s of this group which prepares publicly available consolidated financial statements, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The parent company and its subsidiaries ha ve therefore taken advantage of exemptions from the following disclosure requirements for parent company and subsidiary company information presented within the consolidated financial statements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ : Interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income ;
Section 26 ‘Share based Payment’ : Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements ;
Section 33 ‘Related Party Disclosures’ : Compensation for key management personnel .
The consolidated financial statements incorporate those of Leeways Group Limited and all of its subsidiaries (ie entities that the g roup controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.
All financial statements are made up to 30 June 2020 . 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.
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.
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.
Turnover is recognised when the terms of the contract with the customer have been fulfilled. When this is before an invoice has been raised, the value of work done at the year end is taken to accrued income.
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 .
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.
The group has applied the FRS 102 Triennial Review 2017 amendments in relation to properties rented to other group entities and has elected to apply the cost model, using the fair value of the properties at 1 July 2016 as deemed cost. Therefore, properties previously shown as investment properties are now recorded as freehold properties, with depreciation being applied.
Equity in vest ments are measured at fair value through profit or loss , except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably , which are recognised at cost less impairment until a reliable measure of fair value becomes available.
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. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
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.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest 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.
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.
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.
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
Contingent liabilities are not recognised, except those acquired in a business combination. Contingent liabilities arise as a result of past events when it is not probable that there will be an outflow of resources or the amount cannot be reliably estimated, or when the existence of the contingent liability will only be confirmed by the occurrence or non-occurrence of future events which are outside the control of the company. Contingent liabilities are disclosed in the financial statements unless the probability of the outflow of resource is remote.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease d asset are consumed.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
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.
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
Distribution to equity holders
Dividends and other distributions to the company's shareholders are recognised as a liability in the financial statements in the period in which the dividends and other distributions are approved by the company's. These amounts are recognised in the statement of changes in equity.
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
The annual amortisation and depreciation charge for intangible and tangible assets is sensitive to changes in the estimated useful lives and residual values of the assets. The useful lives and residual values are re-assessed at each reporting date. They are amended when necessary to reflect current estimates, based on future investments, economic utilisation and the physical condition of the assets.
Upon application of the FRS 102 Triennial Review 2017 amendment, freehold properties previously classified as investment properties have been recognised as freehold properties at deemed cost based on their fair vale at transition. Advice was sought from an independent property consultant in order to arrive at fair value.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2019 - 4).
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
Amortisation for intangible fixed assets is included within the depreciation charge in the group statement of comprehensive income.
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Tangible fixed assets are pledged as security for the group ' s loans under a fixed and floating charge.
Freehold property was valued on an open market basis on 30 June 2017 by the directors. Advice was sought from an independent property consultant. Refer to note 2 for full detail.
If freehold property had not been revalued it would have been included at historical costs of £2,8 11 , 483 (2019: £2,801,604) less depreciation of £1,315,958 (2019: £1,247,458).
Details of the company's subsidiaries at 30 June 2020 are as follows:
Leeways Packaging Services Limited , Leeways Joinery Limited and Kalex Films Limited are 100% owned subsidiar ies of Leeways Holdings Limited, therefore the effective interest that Leeways Group Limited holds is 100%.
Kalex Films Limited was incorporated on 1 August 2019.
The above undertakings are all registered in England and Wales.
The fair value of financial assets and liabilities is not deemed to be materially different to amortised cost. As such, no fair value gains or losses have been recognised.
The company had financial assets carried at amortised cost as at 30 June 2020 of £1 3 3 (2019: £163) . The company also had financial liabilities carried at amortised cost as at 30 June 2020 of £2,543,520 (2019: £ 3 , 292 , 257) .
The group had financial assets carried at amortised cost as at 30 June 2020 of £8,594,462 (2019: £ 8,560,947) . The group also had financial liabilities carried at amortised cost as at 30 June 2020 of £7,107,069 (2019: £ 8,776,915) .
All subsidiary companies have taken exemption from the requirements of FRS 102 Section 11 Financial Instruments paragraphs 11.39 to 11.48A.
The total carrying amount of stock is pledged as security for the group's loans under a fixed and floating charge.
Included within trade debtors are balances of £4,579,020 (2019: £ 4,011,427) that are subject to invoice discounting arrangements.
All debtor balances held by the group are pledged as security for the group's loans under a fixed and floating charge.
Amounts owed under invoice discounting arrangements contain a fixed and floating charge over all assets of the group . The maximum extent of this facility is £3,000,000 (2019: £3,000,000), with a notice period of three months. This facility is subject to the following charges:
Discount charge - 1.89 % above base rate
Annual minimum fee - £ 14,000
Service fee - 0.12 %
Amounts owed to group undertakings are unsecured, interest free, have no fixed repayment date and are repayable on demand.
Bank loans a re secured by a fixed and floating charge over the assets of the group, together with an unlimited multilateral guarantee. Refer to the contingent liabilities note for details.
During the period ended 30 June 2018, the company entered into two bank loan agreements, the main conditions of which are set out below.
Loan 1 Loan 2
Principal loan amount £1,820,000 £1,680,000
Interest rate Base rate + 1.8% Base rate + 1.8%
Final repayment date July 2032 July 2022
Instalments £11,752.11 £29,715.17
The hire purchase and finance lease obligations are secured over the assets to which they relate. Interest rates underlying all obligations under finance leases are fixed at respective contract rates ranging from 1.18 % to 5.19 %. Amounts are repayable by monthly instalments and are all due by 3 0 September 2023.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
A reduction in the main rate of Corporation Tax from 19% to 17% was substantively enacted in September 2016 and was due to take effect from 1 April 2020. While Finance Act 2020 includes provision to reverse the reduction to 17%, leaving the rate at 19% from 1 April 2020, this legislation did not receive Royal Assent until 22 July 2020. Consequently, a rate of 17 % has been used for purposes of considering the effect of deferred taxation, based on the rate substantively enacted at the balance sheet date.
The provision primarily relates to the reversal of differences on acquired tangible assets and capital allowances through depreciation, offset by expected tax deduction when payments are made to utilise provisions. As these timing differences are not expected to change significantly in 2020, the net deferred tax liability expected to reverse in 2021 is £Nil.
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.
Called up share capital represents the nominal value of shares that have been issued.
Ordinary A shares and Ordinary C shares hold voting rights.
Ordinary B shares hold no voting rights. These shares also hold certain preferential rights on a capital distribution. On a share sale or listing, they shall only be entitled to the nominal value of these shares.
Retained earnings include all current and prior period retained profits and losses.
The company is part of a multilateral guarantee in favour of the bank involving all group companies. At 30 June 2020 the maximum extent of this guarantee amounted to £1,297,081 (2019: £64,632).
The company is included within a group VAT registration scheme, which incorporates the company and its subsidiaries. As such the company is jointly and severally liable for the amounts owed by the other companies at the balance sheet date. At 30 June 2020 this amounted to £128,393 (2019: £235,057).
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:
The remuneration of key management personnel is as follows.
At the period end, the group owed £65,981 (2019: £231,174) to directors which is included within other creditors.
The amounts outstanding in relation to loans from other shareholders was £108,847 (2019: £163,286), which is included within other creditors.
Dividends totalling £375,000 (2019: £574,809) have been paid to directors and their close family members during the period.
Total remuneration paid to close family members for the period was £28 , 870 (201 9 : £9 , 934 ).
A mounts totalling £45,021 and £10,000 respectively have been paid and received on behalf of Leeways Executive Pension Plan, an entity in which two of the directors are trustees.
Included within other operating expenses is £ 12 , 345 (2019: £Nil) of rent due to this entity.
At the period end, the group was owed £35,021 from this entity, which is included within other debtors. This amount is unsecured, interest free and has no specified repayment date.
There is no ultimate controlling party.
As at 30 June 2020 the group had total capital commitments of £1,983,323 (2019: £425,807).
During the period, the group entered into hire purchase agreements in respect of assets with a total capital value at inception of the lease of £24,000 (2019: £ 639,115) .