Caseware UK (AP4) 2022.0.179 2022.0.179 2023-03-312023-03-312023-03-31Holding company.false272022-04-01false5false 12333067 2022-04-01 2023-03-31 12333067 2021-04-01 2022-03-31 12333067 2023-03-31 12333067 2022-03-31 12333067 2021-04-01 12333067 1 2022-04-01 2023-03-31 12333067 d:Director1 2022-04-01 2023-03-31 12333067 d:Director2 2022-04-01 2023-03-31 12333067 d:RegisteredOffice 2022-04-01 2023-03-31 12333067 c:Buildings c:ShortLeaseholdAssets 2022-04-01 2023-03-31 12333067 c:OfficeEquipment 2022-04-01 2023-03-31 12333067 c:OfficeEquipment 2023-03-31 12333067 c:OfficeEquipment 2022-03-31 12333067 c:OfficeEquipment c:OwnedOrFreeholdAssets 2022-04-01 2023-03-31 12333067 c:ComputerEquipment 2022-04-01 2023-03-31 12333067 c:ComputerEquipment 2023-03-31 12333067 c:ComputerEquipment 2022-03-31 12333067 c:ComputerEquipment c:OwnedOrFreeholdAssets 2022-04-01 2023-03-31 12333067 c:OwnedOrFreeholdAssets 2022-04-01 2023-03-31 12333067 c:CurrentFinancialInstruments 2023-03-31 12333067 c:CurrentFinancialInstruments 2022-03-31 12333067 c:CurrentFinancialInstruments c:WithinOneYear 2023-03-31 12333067 c:CurrentFinancialInstruments c:WithinOneYear 2022-03-31 12333067 c:ShareCapital 2022-04-01 2023-03-31 12333067 c:ShareCapital 2023-03-31 12333067 c:ShareCapital 2021-04-01 2022-03-31 12333067 c:ShareCapital 2022-03-31 12333067 c:ShareCapital 2021-04-01 12333067 c:RetainedEarningsAccumulatedLosses 2022-04-01 2023-03-31 12333067 c:RetainedEarningsAccumulatedLosses 2023-03-31 12333067 c:RetainedEarningsAccumulatedLosses 2021-04-01 2022-03-31 12333067 c:RetainedEarningsAccumulatedLosses 2022-03-31 12333067 c:RetainedEarningsAccumulatedLosses 2021-04-01 12333067 c:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities 2022-04-01 2023-03-31 12333067 c:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities 2023-03-31 12333067 d:OrdinaryShareClass1 2022-04-01 2023-03-31 12333067 d:OrdinaryShareClass1 2023-03-31 12333067 d:OrdinaryShareClass1 2022-03-31 12333067 d:FRS102 2022-04-01 2023-03-31 12333067 d:Audited 2022-04-01 2023-03-31 12333067 d:FullAccounts 2022-04-01 2023-03-31 12333067 d:PrivateLimitedCompanyLtd 2022-04-01 2023-03-31 12333067 c:Subsidiary1 2022-04-01 2023-03-31 12333067 c:Subsidiary1 1 2022-04-01 2023-03-31 12333067 c:Subsidiary2 2022-04-01 2023-03-31 12333067 c:Subsidiary2 1 2022-04-01 2023-03-31 12333067 c:Subsidiary3 2022-04-01 2023-03-31 12333067 c:Subsidiary3 1 2022-04-01 2023-03-31 12333067 c:Subsidiary4 2022-04-01 2023-03-31 12333067 c:Subsidiary4 1 2022-04-01 2023-03-31 12333067 c:Subsidiary5 2022-04-01 2023-03-31 12333067 c:Subsidiary5 1 2022-04-01 2023-03-31 12333067 c:WithinOneYear 2023-03-31 12333067 c:WithinOneYear 2022-03-31 12333067 c:BetweenOneFiveYears 2023-03-31 12333067 c:BetweenOneFiveYears 2022-03-31 12333067 d:Consolidated 2023-03-31 12333067 d:ConsolidatedGroupCompanyAccounts 2022-04-01 2023-03-31 12333067 2 2022-04-01 2023-03-31 12333067 6 2022-04-01 2023-03-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 12333067









ATRATO GROUP LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

 
ATRATO GROUP LIMITED
 
 
COMPANY INFORMATION


Directors
B L Green 
S P Windsor 




Registered number
12333067



Registered office
Radius House
51 Clarendon Road

Watford

Hertfordshire

WD17 1HP




Independent auditor
Hillier Hopkins LLP
Chartered Accountants & Statutory Auditor

Radius House

51 Clarendon Road

Watford

Hertfordshire

WD17 1HP





 
ATRATO GROUP LIMITED
 

CONTENTS



Page
Group strategic report
1 - 5
Directors' report
6 - 8
Independent auditor's report
9 - 12
Consolidated statement of comprehensive income
13
Consolidated balance sheet
14 - 15
Company balance sheet
16 - 17
Consolidated statement of changes in equity
18
Company statement of changes in equity
19
Consolidated statement of cash flows
20
Consolidated analysis of net debt
21
Notes to the financial statements
22 - 39


 
ATRATO GROUP LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023

Introduction
 
The principal activity of the Group is to identify exciting investment strategies to forge a sustainable future through offering best-in-class expertise in generating long-term asset backed inflation linked income. The Group provides corporate finance and investment advice to professional clients in relation to existing real estate property, new real estate developments and other real assets. Details of the Group’s subsidiary undertakings are detailed elsewhere in note 13 of the financial statements. 

Page 1

 
ATRATO GROUP LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023

Business review
 
The year to 31 March 2023 represented another successful period for the Group.
 
Supermarket Income REIT Plc, for which Atrato Capital Limited is the Investment Advisor to, successfully raised over £300million through an oversubscribed equity issuance which closed in April 2022. Fees of £11.0million were earned in relation to Atrato Capital’s investment advisory services.
Atrato Partners Limited continued to be engaged as Investment Advisor to Atrato Onsite Energy Plc, with investment advisory fees of £1.5million earned during the year. Atrato Partners also continued to earn capital raising fees in relation to the introduction of investors into fund raisings for Supermarket Income REIT Plc. These fees totalled £178k for the year. 
Atrato Partners had been exploring a Long Income business stream and had several employees who were dedicated to executing this strategy. The business strategy was reviewed during the year and, in the current economic environment, with a backdrop of increasing inflation and interest rates, it has become increasingly challenging to execute these transactions and no fees were earned in the year to 31 March 2023. As such, the decision was taken to discontinue this business stream. Atrato Partners continues to pursue new revenue streams whilst growing existing ones.  During the year Atrato Partners was targeting the launch of a new listed vehicle, Independent Living REIT Plc, to invest in property assets in the UK in the Supported Housing sector. However, due to market conditions, the IPO did not proceed. Abort costs in relation to this recognised during the year totalled £303k. Atrato continues to pursue its investment strategy to address the structural undersupply of supported housing in the UK.   
The Group is also evaluating strategies focused on European supermarket assets in order to further diversify its revenue streams.
Atrato Halliwell Limited is the Investment Adviser to the joint venture (“JV”) between Supermarket Income REIT Plc and British Airways Pension Trustees Limited ("BAPTL"). The company's investment in a limited partnership related to the JV represented a carried interest entitlement (the "Carry Partner") over the investment returns from the JV’s investments in grocery properties. Once the JV partners have received a stipulated return, the Carry Partner is entitled to share in any further cash returns to be distributed by the JV.  In January 2023 Supermarket Income REIT Plc acquired BAPTL's 50% beneficial interest in the JV, which crystallised the Company’s entitlement to a distribution of £7.5million. Simultaneously the Company ceased to be a carry partner within the limited partnership and the remaining £7.5million return amount was recharacterized as a fee. This amount was recognised as a receivable at the year end and was settled in full during July 2023.  The total return recognised during the year arising from Atrato Halliwell’s interest was £15million. Investment advisory fees earned by Atrato Halliwell during the year totalled £1.4million.
Both Atrato Capital and Atrato Partners are UN Principles for Responsible Investment signatories and will report in accordance with the established framework in the next financial year. Both companies are also registered as signatories to The Net Zero Asset Managers Initiative (“NZAM”).
During the year we have continued to develop our governance framework and to enhance our policies and procedures. We maintain robust governance arrangements through a clear organisational structure with well defined lines of responsibility. The established arrangements and systems, processes and mechanisms are comprehensive and proportionate to the nature, scale and complexity of our current and proposed activities.
 
The balance sheet of the Group remains strong with net assets of £12.2 million and cash of £2.08 million

Page 2

 
ATRATO GROUP LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023

Principal risks and uncertainties
 
The Group is exposed through its operations to the following financial and non financial risks.
Personnel risk 
The Group recognises the need to develop, reward and retain key employees. Employee satisfaction is measured annually as part of a staff survey and changes to benefits have been made in response to this feedback. 
Regulation 
The Group is committed to regulatory compliance and has developed policies and procedures in order to stay abreast of regulatory developments. 
The Group balance sheet includes cash, debtors, creditors and accrued income that arise directly from its operations. These assets and liabilities expose the Group to a number of financial risks that could result in either a reduction in the Group’s net assets or a reduction in profits. 
These risks include, counterparty risk, credit risk and liquidity risk.
Counterparty risk
Counterparty risk is the risk that a client or counterparty fails to perform its contractual obligations and the Group suffers a loss as a result. The Group’s material counterparties are Supermarket Income REIT Plc and Atrato Onsite Energy Plc, the funds to which Atrato Capital and Atrato Partners act as investment advisor to respectively. The Group is therefore exposed to the risk of non-performance of those funds which results in them being unable to settle fees due under the terms of the Investment Advisory agreements.
Credit risk 
The Group’s exposure to credit risk arises principally from its cash deposits. This risk is managed by holding cash only at institutions with a credit rating of A or higher (S&P Long Term). 
Liquidity risk
This is the risk that the Group will encounter difficulties in meeting financial liabilities or regulatory capital requirements. The Group seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to maintain surplus cash balances. The Group’s policy throughout the reporting period has been to achieve this objective through management’s day to day involvement in business decisions. 
The Group is also exposed to operational risk. The Group operates a risk register which is focussed on identifying and assessing operational risk inherent in activities, processes and systems. Identified risks are mitigated by updating business processes, ongoing monitoring programmes and operational frameworks. Risk management is functionally separate from operations of the business and is overseen by the Head of Compliance. 

Financial key performance indicators
 
The Key financial metrics reviewed by management are set out below:
Net Assets    £12,191,588  (2022: £709,127)
EBITDA    £15,477,601   (2022: £975,179)
Profit/(loss) after tax   £11,482,461  (2022: £(238,180))

Page 3

 
ATRATO GROUP LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023

Other key performance indicators
 
The Group has a talented and committed team who operate within a high-performance and dynamic culture. The health and safety of the team is a high priority and details of support systems and processes in place for staff are outlined below. These are reviewed regularly and amendments are made in response to the annual staff survey. 
• Professional development includes peer training, online learning and Corporate Criminal Offence training;  we have now implemented a structured graduate analyst programme and a communications training    programme for senior leaders
• A well-documented performance management process
• Employee engagement includes quarterly strategy meetings, weekly team meetings, and employee    surveys
• Staff are offered health insurance
• Staff remuneration policy has been benchmarked by external consultants
• Staff have access to a grievance process 
• Diversity and inclusion is actively supported and 40% of the senior management team are women
• Staff can volunteer during work time to support a chosen cause 
• Health and safety policy was updated: no injuries were reported to staff during the period
• Staff are offered the opportunity to work remotely and IT equipment is made available for this

Page 4

 
ATRATO GROUP LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023

Directors' statement of compliance with duty to promote the success of the Group
 
The Directors of the Group must act in accordance with a set of general duties. These duties are detailed in section 172 of the UK Companies Act 2006 and include a duty to promote the success of the Group, which is summarised below. 
The executive Directors meet regularly, and at least quarterly, to discuss their duties and they can and do access professional advice on these. This advice can be either through the Group or where necessary through independent third-party advisers.
The Directors fulfil their duties partly through a well-documented governance framework that delegates day to day decision making to employees of the Group. This delegation is not restricted to financial authorities but includes empowering staff to input into the strategic direction of the business and to have responsibility for the teams that they manage. 
Our people 
We seek to create a working environment based on respect and inclusion, we encourage staff to operate in an open and honest manner and are committed to the highest ethical standards in all that we do. We strive to be the employer of choice for industry leaders and skilled professionals. 
Our clients
We pride ourselves on being proactive and initiating new ideas that are in the best interests of our clients. We aim to be the adviser of choice for clients seeking exposure to alternative asset back investment income, often with inflation linkage. We look to develop and maintain strong client relationships. 
Sustainability
Through the investment programme of its funds, the Group creates opportunities for people to work in their local areas, delivering a positive socioeconomic impact within those communities. This aligns with goals 8 and 0 of the UN Sustainable Development Goals (“SDGs”).
 
The Group itself will continue to support the wellbeing and development of its own employees, through training, upskilling and consistent engagement. As the employee base grows, the Group commits to further investment in human capital development.
 
The Group will look to provide active support to causes that facilitate the advancement of its ESG objectives and those of the funds it advises.  It will seek to achieve this not only through donations, but additionally through fund raising and resource commitment.


This report was approved by the board and signed on its behalf.



S P Windsor
Director

Date: 12 September 2023

Page 5

 
ATRATO GROUP LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023

The directors present their report and the financial statements for the year ended 31 March 2023.

Directors' responsibilities statement

The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Group's financial statements and then apply them consistently;

make judgments 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 financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The profit for the year, after taxation, amounted to £11,482,461 (2022 - loss £238,180).



Directors

The directors who served during the year were:

B L Green 
S P Windsor 

Future opportunities

The Directors will look to grow the company's existing revenue streams whilst pursuing new ones.

Page 6

 
ATRATO GROUP LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023

Engagement with suppliers, customers and others

Our people 
We seek to create a working environment based on respect and inclusion, we encourage staff to operate in an open and honest manner and are committed to the highest ethical standards in all that we do. We strive to be the employer of choice for industry leaders and skilled professionals. 
Our clients
We pride ourselves on being proactive and initiating new ideas that are in the best interests of our clients. We aim to be the adviser of choice for clients seeking exposure to alternative asset back investment income, often with inflation linkage. We look to develop and maintain strong client relationships. 
Sustainability
Through the investment programme of its funds, the Group creates opportunities for people to work in their local areas, delivering a positive socioeconomic impact within those communities. This aligns with goals 8 and 0 of the UN Sustainable Development Goals (“SDGs”).
 
The Group itself will continue to support the wellbeing and development of its own employees, through training, upskilling and consistent engagement. As the employee base grows, the Group commits to further investment in human capital development.
 
The Group will look to provide active support to causes that facilitate the advancement of its sustanability objectives and those of the funds it advises.  It will seek to achieve this not only through donations, but additionally through fund raising and resource commitment. With this aim, The Atrato Foundation was set up during the year and both Atrato Capital and Atrato Partners registered as signatories to The Net Zero Asset Managers Initiative (''NZAM''). Staff have also volunteered their time and raised money to support our charity partners.

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditor is unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditor is aware of that information.

Post balance sheet events

The Group is committed to supporting charities via donations to The Atrato Foundation. The amounts will be at least £50,000 per annum and has not been provided for in the financial statements, but will be paid post year end.

Auditor

The auditor, Hillier Hopkins LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Page 7

 
ATRATO GROUP LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023

This report was approved by the board and signed on its behalf.
 





S P Windsor
Director

Date: 12 September 2023

Page 8

 
ATRATO GROUP LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ATRATO GROUP LIMITED
 

Opinion


We have audited the financial statements of Atrato Group Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 March 2023, which comprise the Consolidated statement of comprehensive income, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of cash flows, the Consolidated statement of changes in equity, the Company statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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's affairs as at 31 March 2023 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 Auditor's 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 United Kingdom, including the Financial Reporting Council'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 or 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.


Page 9

 
ATRATO GROUP LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ATRATO GROUP LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Opinion 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 Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group 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 identified material misstatements in the Group strategic report or the Directors' report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept 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.


Page 10

 
ATRATO GROUP LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ATRATO GROUP LIMITED (CONTINUED)


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 6, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the 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.


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 Group 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:
assess the nature of the industry and sector, control environment and business performance;
the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management. We consider the results of our enquiries of management, about their own identification and assessment of the risks of irregularities;
any matters we identified having obtained and reviewed the Company’s documentation of their policies and procedures relating to:
°identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;
°detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
°the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations including those administered by the Financial Conduct Authority;
the matters discussed among the audit engagement team and involving relevant internal specialists, regarding how and where fraud might occur in the financial statements and any potential indicators of fraud


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 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 2006Our 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.


Page 11

 
ATRATO GROUP LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ATRATO GROUP LIMITED (CONTINUED)





Simon Speller FCA (Senior statutory auditor)
  
for and on behalf of
Hillier Hopkins LLP
 
Chartered Accountants
Statutory Auditor
  
Radius House
51 Clarendon Road
Watford
Hertfordshire
WD17 1HP

12 September 2023
Page 12

 
ATRATO GROUP LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023


2023
2022
Note
£
£

  

Turnover
 4 
29,195,771
10,415,122

Cost of sales
  
(2,144,192)
-

Gross profit
  
27,051,579
10,415,122

Administrative expenses
  
(11,610,119)
(9,467,822)

Operating profit
 5 
15,441,460
947,300

Interest receivable and similar income
 9 
4,108
52

Interest payable and similar expenses
 10 
(1,089,322)
(872,729)

Profit before taxation
  
14,356,246
74,623

Tax on profit
 11 
(2,873,785)
(312,803)

Profit/(loss) for the financial year
  
11,482,461
(238,180)

Profit/(loss) for the year attributable to:
  

Owners of the parent Company
  
11,482,461
(238,180)

  
11,482,461
(238,180)

Total comprehensive income for the year attributable to:
  

Owners of the parent Company
  
11,482,461
(238,180)

  
11,482,461
(238,180)

There were no recognised gains and losses for 2023 or 2022 other than those included in the consolidated statement of comprehensive income.

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 22 to 39 form part of these financial statements.

Page 13

 
ATRATO GROUP LIMITED
REGISTERED NUMBER: 12333067

CONSOLIDATED BALANCE SHEET
AS AT 31 MARCH 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 12 
48,527
78,285

Investments
 13 
-
1,000

  
48,527
79,285

Current assets
  

Debtors: amounts falling due within one year
 14 
15,930,420
2,939,083

Cash at bank and in hand
 15 
2,084,444
1,448,342

  
18,014,864
4,387,425

Creditors: amounts falling due within one year
 16 
(5,755,620)
(3,757,583)

Net current assets
  
 
 
12,259,244
 
 
629,842

Total assets less current liabilities
  
12,307,771
709,127

Provisions for liabilities
  

Other provisions
 18 
(116,183)
-

  
 
 
(116,183)
 
 
-

Net assets excluding pension asset
  
12,191,588
709,127

Net assets
  
12,191,588
709,127


Capital and reserves
  

Called up share capital 
 19 
200
200

Profit and loss account
 20 
12,191,388
708,927

Equity attributable to owners of the parent Company
  
12,191,588
709,127

  
12,191,588
709,127


Page 14

 
ATRATO GROUP LIMITED
REGISTERED NUMBER: 12333067
    
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2023

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




S P Windsor
Director

Date: 12 September 2023

The notes on pages 22 to 39 form part of these financial statements.

Page 15

 
ATRATO GROUP LIMITED
REGISTERED NUMBER: 12333067

COMPANY BALANCE SHEET
AS AT 31 MARCH 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 12 
34,986
48,344

Investments
 13 
917,824
75,600

  
952,810
123,944

Current assets
  

Debtors: amounts falling due within one year
 14 
8,002,608
4,246,957

Cash at bank and in hand
 15 
73,633
58,433

  
8,076,241
4,305,390

Creditors: amounts falling due within one year
 16 
(2,348,764)
(2,711,687)

Net current assets
  
 
 
5,727,477
 
 
1,593,703

Total assets less current liabilities
  
6,680,287
1,717,647

  

Provisions for liabilities
  

Other provisions
 18 
(116,183)
-

  
 
 
(116,183)
 
 
-

Net assets excluding pension asset
  
6,564,104
1,717,647

Net assets
  
6,564,104
1,717,647


Capital and reserves
  

Called up share capital 
 19 
200
200

Profit and loss account brought forward
  
1,717,447
1,163,085

Profit for the year
  
4,846,457
554,362

Profit and loss account carried forward
  
6,563,904
1,717,447

  
6,564,104
1,717,647


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 


S P Windsor
Director

Date: 12 September 2023

The notes on pages 22 to 39 form part of these financial statements.
Page 16

 
ATRATO GROUP LIMITED
REGISTERED NUMBER: 12333067
    
COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2023


Page 17

 
ATRATO GROUP LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023


Called up share capital
Profit and loss account
Equity attributable to owners of parent Company
Total equity

£
£
£
£


At 1 April 2021
200
947,107
947,307
947,307


Comprehensive income for the year

Loss for the year
-
(238,180)
(238,180)
(238,180)


Other comprehensive income for the year
-
-
-
-


Total comprehensive income for the year
-
(238,180)
(238,180)
(238,180)


Total transactions with owners
-
-
-
-



At 1 April 2022
200
708,927
709,127
709,127


Comprehensive income for the year

Profit for the year
-
11,482,461
11,482,461
11,482,461


Other comprehensive income for the year
-
-
-
-


Total comprehensive income for the year
-
11,482,461
11,482,461
11,482,461


Total transactions with owners
-
-
-
-


At 31 March 2023
200
12,191,388
12,191,588
12,191,588


The notes on pages 22 to 39 form part of these financial statements.

Page 18

 
ATRATO GROUP LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 April 2021
200
1,163,085
1,163,285


Comprehensive income for the year

Profit for the year
-
554,362
554,362


Other comprehensive income for the year
-
-
-


Total comprehensive income for the year
-
554,362
554,362


Total transactions with owners
-
-
-



At 1 April 2022
200
1,717,447
1,717,647


Comprehensive income for the year

Profit for the year
-
4,846,457
4,846,457


Other comprehensive income for the year
-
-
-


Total comprehensive income for the year
-
4,846,457
4,846,457


Total transactions with owners
-
-
-


At 31 March 2023
200
6,563,904
6,564,104


The notes on pages 22 to 39 form part of these financial statements.

Page 19

 
ATRATO GROUP LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
11,482,461
(238,180)

Adjustments for:

Depreciation of tangible assets
35,141
27,879

Loss on disposal of tangible assets
-
89

Dividends paid to preference shareholder
1,089,322
872,729

Interest received
(4,108)
(52)

Taxation charge
2,873,785
312,803

(Increase) in debtors
(6,867,648)
(1,069,587)

(Increase) in amounts owed by groups
(6,126,686)
(2,114)

Increase in creditors
1,616,396
1,623,392

Increase in provisions
116,183
-

Corporation tax (paid)
(2,489,147)
(443,248)

Net cash generated from operating activities

1,725,699
1,083,711


Cash flows from investing activities

Purchase of tangible fixed assets
(5,383)
(63,859)

Sale of share in joint ventures
1,000
-

Interest received
4,108
52

Net cash from investing activities

(275)
(63,807)

Cash flows from financing activities

Dividends paid to preference shareholder
(1,089,322)
(872,729)

Net cash used in financing activities
(1,089,322)
(872,729)

Net increase in cash and cash equivalents
636,102
147,175

Cash and cash equivalents at beginning of year
1,448,342
1,301,167

Cash and cash equivalents at the end of year
2,084,444
1,448,342


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
2,084,444
1,448,342

2,084,444
1,448,342


The notes on pages 22 to 39 form part of these financial statements.

Page 20

 
ATRATO GROUP LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 MARCH 2023




At 1 April 2022
Cash flows
At 31 March 2023
£

£

£

Cash at bank and in hand

1,448,342

636,102

2,084,444


1,448,342
636,102
2,084,444

The notes on pages 22 to 39 form part of these financial statements.

Page 21

 
ATRATO GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

1.


General information

Atrato Group Limited is a company limited by shares, incorporated in England and Wales.
The principal activity of the company is that of head office activities.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.
In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102.

Page 22

 
ATRATO GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.4

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.5

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.6

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.7

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Group in independently administered funds.

Page 23

 
ATRATO GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.8

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.9

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Short-term leasehold property
-
50%
straight line.
Office equipment
-
33%
straight line.
Computer equipment
-
33%
straight line.

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Page 24

 
ATRATO GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.10

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted Group shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Consolidated statement of comprehensive income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

 
2.11

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.12

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.13

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.14

Provisions for liabilities

Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance sheet.

 
2.15

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Group has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

Page 25

 
ATRATO GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)


2.15
Financial instruments (continued)

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, with 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 trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the
Page 26

 
ATRATO GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)


2.15
Financial instruments (continued)

present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.

Page 27

 
ATRATO GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.
Trade debtors: The recoverability of trade debtors has been assessed as at the year end and up until the date of signing these financial statements. Management have based the decision to provide for any amounts based on their judgment of all the available information, and their experience of the specific nature of trade debtor in question.
Valuation of interest in a limited partnership: the Group's investment in a limited partnership was included at cost less impairment. The investment related to a joint venture ("JV") arrangement between Supermarket Income REIT Plc and the British Airways Pension Trustees Limited ("BAPTL"). The investment represented a carried interest entitlement (the "Carry Partner") over the investment returns from the JV’s investments in grocery properties. Once the JV partners have received a stipulated return, the Carry Partner is entitled to share in any further cash returns to be distributed by the JV.  In January 2023 Supermarket Income REIT Plc acquired BAPTL's 50% beneficial interest in the JV which crystallised the Group’s entitlement to a distribution of £7.5million. Simultaneously the Group ceased to be a carry partner within the limited partnership and the remaining £7.5million return amount was recharacterized as a fee. This amount was recognised as a receivable at the year end and was settled in full during July 2023.  The total return recognised during the year arising from Group’s interest was £15million.
Classification of preference shares between debt and equity: 100 preference shares of £0.01 each were issued by the company's subsidiary, Atrato Capital Limited ("ACL"), in 2017 for £1 and carry a fixed preference dividend based on fees payable to ACL. Since payment of the preference dividends is payable to the holder of the preference shares on a non-discretionary basis, the preference shares are considered to be, in substance, debt. The fair value of the liability component of the preference shares has not been included in the consolidated balance sheet as management consider that the fair value cannot be measured realiably and also may not be permitted under the Companies Act. Dividends payable to the preference shareholder are included in the consolidated statement of comprehensive income as interest payments. The preference shares do not carry voting rights except in the case of winding up of the company or varying any rights in respect of the preference shares or a reduction of the share capital. Fixed dividends equal to 10 per cent of the monthly manaement fees and semi-annual management fees less £37,500 per quarter are payable subject to the company having sufficient profits to lawfully pay dividends out of. The preference shares are irredeemable except on liquidation of the company when any dividends in arrears must be paid and 10% of any surplus assets as defined in the articles are payable to the preference shareholders. As stated, the cost of these preference shares has been recognised as debt. No adjustment has been made in respect of the liability element of the future fixed preference share dividends.


4.


Turnover

The whole of the turnover is attributable to the principal activity.

Page 28

 
ATRATO GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

5.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Other operating lease rentals
317,479
378,605


6.


Auditor's remuneration

During the year, the Group obtained the following services from the Company's auditor and its associates:


2023
2022
£
£

Fees payable to the Company's auditor and its associates for the audit of the Group's financial statements
33,000
28,750

Fees payable to the Company's auditor and its associates in connection with the Group's pension scheme(s) in respect of:

All other assurance services
3,450
3,000

All other services
13,500
11,750


7.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Wages and salaries
7,539,588
5,289,606
3,932,903
1,735,178

Social security costs
1,000,049
730,727
537,116
235,094

Cost of defined contribution scheme
236,668
54,803
71,346
20,507

8,776,305
6,075,136
4,541,365
1,990,779


The average monthly number of employees, including the remunerated directors, during the year was as follows:



Group
Group
Company
Company
        2023
        2022
        2023
        2022
            No.
            No.
            No.
            No.









51
31
27
5

Page 29

 
ATRATO GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

8.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
400,000
210,000

400,000
210,000


The highest paid director received remuneration of £200,000 (2022 - £105,000).


9.


Interest receivable

2023
2022
£
£


Other interest receivable
4,108
52

4,108
52


10.


Interest payable and similar expenses

2023
2022
£
£


Interest payable
1,049,961
872,729

Other interest payable
39,361
-

1,089,322
872,729

Interest payable is made up of dividends payable to preference shareholder of subsidiary of £1,049,961 (2022: £872,219) and bank interest payable £nil (2022: £509)

Page 30

 
ATRATO GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

11.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
2,873,785
412,300

Adjustments in respect of previous periods
-
(88,162)


2,873,785
324,138


Total current tax
2,873,785
324,138

Deferred tax


Origination and reversal of timing differences
-
(11,335)

Total deferred tax
-
(11,335)


Taxation on profit on ordinary activities
2,873,785
312,803

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 19% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
14,356,246
74,623


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022 - 19%)
2,727,687
14,178

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
212,952
200,624

Capital allowances for year in excess of depreciation
5,045
(10,477)

Unrelieved tax losses carried forward
-
119,813

Other differences leading to an increase (decrease) in the tax charge
(71,899)
(11,335)

Total tax charge for the year
2,873,785
312,803


Factors that may affect future tax charges

Page 31

 
ATRATO GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
 
11.Taxation (continued)

On 3 March 2021 the Chancellor of the Exchequer announced an increase in the main rate of UK corporation tax to 25 per cent for businesses with profits greater than £250,000. Businesses with profits of £50,000 or less will continue to be taxed at 19% with marginal relief for profits up to £250,000. These changes were substantially enacted on 25 May 2021 and will take effect from 1 April 2023.
Atrato Services Limited had utilisable tax losses of £978,982 (2022: 1,579,931) carried forward. These have not been recognised as a deferred tax asset due to uncertainty around the timing of these being realised.


12.


Tangible fixed assets

Group






Short-term leasehold property
Office equipment
Computer equipment
Total

£
£
£
£



Cost or valuation


At 1 April 2022
21,500
1,713
106,547
129,760


Additions
-
5,246
137
5,383



At 31 March 2023

21,500
6,959
106,684
135,143



Depreciation


At 1 April 2022
21,500
65
29,910
51,475


Charge for the year on owned assets
-
1,024
34,117
35,141



At 31 March 2023

21,500
1,089
64,027
86,616



Net book value



At 31 March 2023
-
5,870
42,657
48,527



At 31 March 2022
-
1,648
76,637
78,285

Page 32

 
ATRATO GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

           12.Tangible fixed assets (continued)


Company






Office equipment
Computer equipment
Total

£
£
£

Cost or valuation


At 1 April 2022
1,097
53,986
55,083


Additions
5,246
137
5,383



At 31 March 2023

6,343
54,123
60,466



Depreciation


At 1 April 2022
30
6,709
6,739


Charge for the year on owned assets
819
17,922
18,741



At 31 March 2023

849
24,631
25,480



Net book value



At 31 March 2023
5,494
29,492
34,986



At 31 March 2022
1,067
47,277
48,344






Page 33

 
ATRATO GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

13.


Fixed asset investments

Group





Investment in a limited partnership

£





At 1 April 2022
1,000


Disposals
(1,000)



At 31 March 2023
-




The company's investment in a limited partnership related to a joint venture ("JV") arrangement between Supermarket Income REIT Plc and the British Airways Pension Trustees Limited ("BAPTL"). The investment represented a carried interest entitlement (the "Carry Partner") over the investment returns from the JV’s investments in grocery properties. Once the JV partners have received a stipulated return, the Carry Partner is entitled to share in any further cash returns to be distributed by the JV.  In January 2023 Supermarket Income REIT Plc acquired BAPTL's 50% beneficial interest in the JV, which crystallised the Company’s entitlement to a distribution of £7.5million. Simultaneously the Company ceased to be a carry partner within the limited partnership and the remaining £7.5million return amount was recharacterized as a fee. This amount was recognised as a receivable at the year end and was settled in full during July 2023.  The total return recognised during the year arising from Atrato Halliwell’s interest was £15million.

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 April 2022
75,600


Additions
2,500,100



At 31 March 2023
2,575,700



Impairment


Charge for the period
1,657,876



At 31 March 2023

1,657,876

Page 34

 
ATRATO GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Class of shares

Holding

Atrato Capital Limited
Ordinary
100%
Atrato Halliwell Limited
Ordinary
100%
Atrato Partners Limited
Ordinary
100%
Atrato Services Limited
Ordinary
100%
Atrato Denver Limited
Ordinary
100%

The aggregate of the share capital and reserves as at 31 March 2023 and the profit or loss for the year ended on that date for the subsidiary undertakings were as follows:

Name
Aggregate of share capital and reserves
Profit/(Loss)
£
£

Atrato Capital Limited
3,778,672
1,665,468

Atrato Halliwell Limited
5,408,382
10,698,987

Atrato Partners Limited
917,119
(2,085,092)

Atrato Services Limited
(3,558,963)
198,766

Atrato Denver Limited
100
-


14.


Debtors

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Trade debtors
8,597,729
1,386,676
873
3,716,192

Amounts owed by group undertakings
2,960
2,114
1,716,489
248,078

Other debtors
6,331,147
215,814
6,160,496
124,786

Prepayments and accrued income
987,249
1,323,144
124,750
157,901

Deferred taxation
11,335
11,335
-
-

15,930,420
2,939,083
8,002,608
4,246,957


Page 35

 
ATRATO GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

15.


Cash and cash equivalents

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Cash at bank and in hand
2,084,444
1,448,342
73,633
58,433

2,084,444
1,448,342
73,633
58,433



16.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Trade creditors
281,501
898,096
34,986
680,523

Amounts owed to group undertakings
-
-
1,271,876
1,041,904

Corporation tax
609,485
224,847
244,612
-

Other taxation and social security
351,919
525,207
107,774
111,939

Other creditors
1,148,944
635,700
16,729
65,378

Accruals and deferred income
3,363,771
1,473,733
672,787
811,943

5,755,620
3,757,583
2,348,764
2,711,687



17.


Deferred taxation


Group



2023


£






At beginning of year
11,335



At end of year
11,335

Group
Group
2023
2022
£
£

Provisions
11,335
11,335

11,335
11,335

Page 36

 
ATRATO GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

18.


Provisions


Group



Other provision

£





Charged to profit or loss
116,183



At 31 March 2023
116,183

Page 37

 
ATRATO GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

           18.Provisions (continued)

Company


Other provision
Total

£
£





Charged to profit or loss
116,183
116,183



At 31 March 2023
116,183
116,183


19.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



200 (2022 - 200) Ordinary shares of £1.00 each
200
200



20.


Reserves

Profit and loss account

Profit and loss account includes all current and prior period retained profits and losses.


21.


Pension commitments

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £236,668 (2022: £54,083). Contributions totalling £35,249 (2022: £8,877) were payable to the fund at the balance sheet date and are included in creditors.

Page 38

 
ATRATO GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

22.


Commitments under operating leases

At 31 March 2023 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Not later than 1 year
609,038
595,795
608,474
595,231

Later than 1 year and not later than 5 years
17,094
621,050
16,671
620,627

626,132
1,216,845
625,145
1,215,858


23.


Related party transactions

The group has taken advantage of the exemption in Financial Reporting Standard 102 from the requirement to disclose transactions with group companies on the grounds that consolidated financial statements are prepared by the parent company.
During the year the group entered into transactions, in the ordinary course of business, with related parties. Transactions entered into, and trading balances outstanding at 31 March, are as follows:


2023
2022
£
£

Amounts owed to other entities under common control
(58,093)
(95,672)
Amounts owed by other entities under common control
6,125,840
7,618
Purchases from other entities under common control
(5,131)
(1,362,466)


24.


Post balance sheet events

The Group is committed to supporting charities via donations to The Atrato Foundation. The amounts will be at least £50,000 per annum and has not been provided for in the financial statements, but will be paid post year end.


25.


Controlling party

The directors do not consider there to be an ultimate controlling party.

 
Page 39