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REGISTERED NUMBER: 04656447 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

FOR

The Birchman Group Limited

The Birchman Group Limited (Registered number: 04656447)






CONTENTS OF THE FINANCIAL STATEMENTS
for the Year Ended 31 December 2022




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 4

Income Statement 6

Other Comprehensive Income 7

Statement of Financial Position 8

Statement of Changes in Equity 9

Statement of Cash Flows 10

Notes to the Financial Statements 11


The Birchman Group Limited

COMPANY INFORMATION
for the Year Ended 31 December 2022







DIRECTORS: Mr I G Wyrley-Birch
Mr R M Taylor





SECRETARY: ITA Secretaries Limited





REGISTERED OFFICE: Units Scf 1&2, South Core
Western International Market
Hayes Road
Southall
Middlesex
UB2 5XJ





REGISTERED NUMBER: 04656447 (England and Wales)





AUDITORS: Cooper Dawn Jerrom Limited
Statutory Auditors and Chartered Accountants
Units SCF 1 & 2
Western International Market
Hayes Road
Southall
Middlesex
UB2 5XJ

The Birchman Group Limited (Registered number: 04656447)

STRATEGIC REPORT
for the Year Ended 31 December 2022

The directors present their Strategic Report as required by the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 Chapter 4A Section 414A, as updated in Companies, Partnerships and Groups (Accounts and Non-Financial Reporting) 2016 for the year ended 31 December 2022.

REVIEW OF BUSINESS
The principal activities of the group continue to be management and IT consultancy and software sales. The business is principally related to services around Digital Transformation, Business Change, Solution Implementation, Managed Services, Continuous Business Improvement, and sales of SAP software.

The business continued to strengthen its market position in 2022, and overall, the directors are satisfied with the performance of the group. Throughout the year, the group continued to maintain and build on the relationships with its existing customer base whilst also adding significant new customers.

A close relationship with SAP is essential as the group continues as a leading Value-Added Reseller (VAR) of their software licences and cloud services in the UK. During 2021 the group became a member of United VARs and this membership has strengthened the group's relationship with SAP and provided additional revenue.

Consulting services revenue remained steady and has shown significant growth potential as customers move to the latest version of ERP software (SAP S/4HANA), and customers increase investment in digital transformation. The group's focus on technology business change and transformation continues to support new consulting service engagements.

PRINCIPAL RISKS AND UNCERTAINTIES
The global economic challenges arising from the situation in Ukraine and the increasing rate of inflation continue to present challenges for the group and its customers. However, the group continues to be agile and competitive as a business.

Despite the wider economic disruption caused by the challenges above, the directors believe that the business is well protected for the medium and long-term.

The group has annuity revenue from a wide range of customers for both managed services and software licences.

The business is modestly exposed to fluctuations in the exchange rate with the US dollar. However, a hedge is created by ensuring that any external costs related directly to a revenue contract in US dollars are in the same currency.

RESULTS AND KEY PERFORMANCE INDICATORS
Revenues for the year to 31 December 2022 were £1,927,438 (2021: £2,205,462) and the profit for the year before taxation amounted to £6,208,853 (2021: £3,567,983). The group finished the year with net assets of £4,655,953 (2021: £2,981,993).

The directors have a number of key performance indicators by which they measure the ongoing activities of the group. These measures include revenue, gross margin, operating margin, cash balances, aged receivables, staff utilisation and customer service level agreements.

The group companies maintain a balance of permanent employees and external partners to ensure that the business is both adaptable to accommodate growth and flexible in terms of cost base. The resource mix allows the directors to manage any fluctuations in revenue, should they occur.

FUTURE DEVELOPMENTS
The directors expect the business to continue to be profitable in 2023.

The business is well-placed to support the following industry trends and continue to grow:

- Companies' strategy to become more agile through digital transformation.

- Companies' IT strategy to move to cloud services, adopt new innovations and increase protection from cyber security threats.

- For the SAP install base, the move from legacy SAP ERP to SAP S/4HANA.

- Strong outlook for SAP S/4HANA Public Cloud as customers replace alternative legacy ERP solutions with SAP ERP and growing mid-market companies choose SAP ERP.

- Companies' demand for continuous business improvement through process and solution optimisation, automation and the adoption of best practices.

ON BEHALF OF THE BOARD:





Mr I G Wyrley-Birch - Director


29 September 2023

The Birchman Group Limited (Registered number: 04656447)

REPORT OF THE DIRECTORS
for the Year Ended 31 December 2022

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

DIVIDENDS
The total distribution of dividends for the year ended 31 December 2022 will be £ 4,379,317.

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

Mr I G Wyrley-Birch
Mr R M Taylor

Other changes in directors holding office are as follows:

Mr F J Aguayo - resigned 22 April 2022

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), 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 of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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

AUDITORS
The auditors, Cooper Dawn Jerrom Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Mr I G Wyrley-Birch - Director


29 September 2023

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
THE BIRCHMAN GROUP LIMITED

Opinion
We have audited the financial statements of The Birchman Group Limited (the 'company') for the year ended 31 December 2022 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, 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 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 company's affairs as at 31 December 2022 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

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

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

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

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

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

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
THE BIRCHMAN GROUP LIMITED


Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

We plan our audit procedures thoroughly prior to conducting fieldwork which includes data analytic techniques, sampling income and expenditure transactions, reviewing classes of transactions in the balance sheet in accordance with audit methodology as well as making enquiries with senior management and directors. Additional audit procedures are undertaken if we come across information that is inconsistent or we are unable to corroborate the information that we have been provided.

There will be inherent limitations within an audit assignment and there could be a risk that we will not be able to identify irregularities which could lead to a material mis-statement on the financial statements or non-compliance with laws or regulations. There is an increased risk, in that the more compliance with a law or regulations are removed from events and transactions reflected within the financial statements, will result in ourselves being less likely to become aware of instances of non-compliance. There is a much greater risk of irregularities occurring due to fraud rather than error as fraud involves an act of deliberate concealment, forgery, collusion, omissions or misrepresentations.

We have reviewed the entity's internal controls that directors and senior management oversee on a day-to-day basis, the strong internal controls implemented would be effective in allowing the detection of irregularities on a timely basis.

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

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




Michael Amos (Senior Statutory Auditor)
for and on behalf of Cooper Dawn Jerrom Limited
Statutory Auditors and Chartered Accountants
Units SCF 1 & 2
Western International Market
Hayes Road
Southall
Middlesex
UB2 5XJ

29 September 2023

The Birchman Group Limited (Registered number: 04656447)

INCOME STATEMENT
for the Year Ended 31 December 2022

31.12.22 31.12.21
Notes £    £   

TURNOVER 1,927,438 2,205,462

Cost of sales 714,555 738,060
GROSS PROFIT 1,212,883 1,467,402

Administrative expenses 404,680 399,437
808,203 1,067,965

Other operating income 650 18
OPERATING PROFIT 808,853 1,067,983

Income from shares in group undertakings 5,400,000 2,500,000
PROFIT BEFORE TAXATION 6 6,208,853 3,567,983

Tax on profit 7 155,575 204,212
PROFIT FOR THE FINANCIAL YEAR 6,053,278 3,363,771

The Birchman Group Limited (Registered number: 04656447)

OTHER COMPREHENSIVE INCOME
for the Year Ended 31 December 2022

31.12.22 31.12.21
Notes £    £   

PROFIT FOR THE YEAR 6,053,278 3,363,771


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR THE
YEAR

6,053,278

3,363,771

The Birchman Group Limited (Registered number: 04656447)

STATEMENT OF FINANCIAL POSITION
31 December 2022

31.12.22 31.12.21
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 9 789 1,777
Investments 10 1 1
790 1,778

CURRENT ASSETS
Debtors 11 2,950,771 299,790
Cash at bank 2,109,666 3,147,106
5,060,437 3,446,896
CREDITORS
Amounts falling due within one year 12 405,274 466,681
NET CURRENT ASSETS 4,655,163 2,980,215
TOTAL ASSETS LESS CURRENT LIABILITIES 4,655,953 2,981,993

CAPITAL AND RESERVES
Called up share capital 13 1,054 1,055
Share premium 14 29,950 29,950
Retained earnings 14 4,624,949 2,950,988
SHAREHOLDERS' FUNDS 4,655,953 2,981,993

The financial statements were approved by the Board of Directors and authorised for issue on 29 September 2023 and were signed on its behalf by:





Mr I G Wyrley-Birch - Director


The Birchman Group Limited (Registered number: 04656447)

STATEMENT OF CHANGES IN EQUITY
for the Year Ended 31 December 2022

Called up
share Retained Share Total
capital earnings premium equity
£    £    £    £   

Balance at 1 January 2021 1,055 456,743 29,950 487,748

Changes in equity
Dividends - (869,526 ) - (869,526 )
Total comprehensive income - 3,363,771 - 3,363,771
Balance at 31 December 2021 1,055 2,950,988 29,950 2,981,993

Changes in equity
Issue of share capital (1 ) - - (1 )
Dividends - (4,379,317 ) - (4,379,317 )
Total comprehensive income - 6,053,278 - 6,053,278
Balance at 31 December 2022 1,054 4,624,949 29,950 4,655,953

The Birchman Group Limited (Registered number: 04656447)

STATEMENT OF CASH FLOWS
for the Year Ended 31 December 2022

31.12.22 31.12.21
Notes £    £   
Cash flows from operating activities
Cash generated from operations 18 (1,854,561 ) 2,104,745
Tax paid (204,212 ) (157,302 )
Net cash from operating activities (2,058,773 ) 1,947,443

Cash flows from investing activities
Dividends received 5,400,000 2,500,000
Net cash from investing activities 5,400,000 2,500,000

Cash flows from financing activities
Amount introduced by directors - 434,763
Amount withdrawn by directors - (889,308 )
Equity dividends paid (4,379,317 ) (869,526 )
Net cash from financing activities (4,379,317 ) (1,324,071 )

(Decrease)/increase in cash and cash equivalents (1,038,090 ) 3,123,372
Cash and cash equivalents at beginning of year 19 3,147,106 23,716
Effect of foreign exchange rate changes 650 18
Cash and cash equivalents at end of year 19 2,109,666 3,147,106

The Birchman Group Limited (Registered number: 04656447)

NOTES TO THE FINANCIAL STATEMENTS
for the Year Ended 31 December 2022

1. STATUTORY INFORMATION

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

The presentation currency of the financial statements is the Pound Sterling (£).


2. STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

3. ACCOUNTING POLICIES

Basis of preparing the financial statements
The financial statements have been prepared under the historical cost convention.

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Computer equipment - 25% on cost

Rentals applicable to operating leases, where substantially all the benefit and risk of ownership remain with the lessor, are charged to the profit and loss account on a straight line basis over the lease term.

Investments in subsidiaries
Investments in subsidiary undertakings are recognised at cost.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Presentation currency
The presentation currency is £ sterling. The figures in the financial statements are rounded to the nearest £ sterling.

4. EMPLOYEES AND DIRECTORS
31.12.22 31.12.21
£    £   
Wages and salaries 743,978 770,607
Social security costs 87,846 86,539
Other pension costs 9,576 8,904
841,400 866,050

The average number of employees during the year was as follows:
31.12.22 31.12.21

Directors 2 2
Consultants 6 5
8 7

5. DIRECTORS' EMOLUMENTS
31.12.22 31.12.21
£    £   
Directors' remuneration 297,865 297,041
Directors' pension contributions to money purchase schemes 2,642 2,638

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 2 2

The Birchman Group Limited (Registered number: 04656447)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2022

5. DIRECTORS' EMOLUMENTS - continued

Information regarding the highest paid director is as follows:
31.12.22 31.12.21
£    £   
Emoluments etc 169,259 173,243
Pension contributions to money purchase schemes 1,321 1,319
Accrued pension at 31 December 2022 220 220

6. PROFIT BEFORE TAXATION

The profit is stated after charging/(crediting):

31.12.22 31.12.21
£    £   
Depreciation - owned assets 988 987
Auditors' remuneration 11,900 7,500
Foreign exchange differences (650 ) (18 )

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
31.12.22 31.12.21
£    £   
Current tax:
UK corporation tax 155,575 204,212
Tax on profit 155,575 204,212

UK corporation tax has been charged at 19% (2021 - 19%).

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

31.12.22 31.12.21
£    £   
Profit before tax 6,208,853 3,567,983
Profit multiplied by the standard rate of corporation tax in the UK of 19% (2021 - 19%) 1,179,682 677,917

Effects of:
Expenses not deductible for tax purposes 1,705 1,107
Depreciation in excess of capital allowances 188 188
Income from shares in group undertakings (1,026,000 ) (475,000 )
Total tax charge 155,575 204,212

8. DIVIDENDS

The total distribution of dividends for the year ended 31 December 2022 will be £4,379,317..

The Birchman Group Limited (Registered number: 04656447)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2022

9. TANGIBLE FIXED ASSETS
Computer
equipment
£   
COST
At 1 January 2022
and 31 December 2022 3,950
DEPRECIATION
At 1 January 2022 2,173
Charge for year 988
At 31 December 2022 3,161
NET BOOK VALUE
At 31 December 2022 789
At 31 December 2021 1,777

10. FIXED ASSET INVESTMENTS
Shares in
group
undertakings
£   
COST
At 1 January 2022
and 31 December 2022 1
NET BOOK VALUE
At 31 December 2022 1
At 31 December 2021 1

The company's investments at the Statement of Financial Position date in the share capital of companies include the following:

Birchman Solutions Limited
Registered office: Victorian Wing, Hare Hatch Grange, Bath Road, Hare Hatch, Reading, Berkshire, RG10 9SA
Nature of business: Process Consultancy
%
Class of shares: holding
Ordinary 100.00
31.12.22 31.12.21
£    £   
Aggregate capital and reserves 4,938,690 4,626,961
Profit for the year 5,711,729 6,073,394

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.22 31.12.21
£    £   
Trade debtors 8,918 65,110
Amounts owed by group undertakings 2,899,555 225,356
Amounts owed by participating interests 18,660 -
Called up share capital not paid 904 905
Prepayments and accrued income 22,734 8,419
2,950,771 299,790

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.22 31.12.21
£    £   
Trade creditors 14,604 14,432
Tax 155,575 204,212
Social security and other taxes 18,221 31,019
Other creditors 14,399 23,437
Accruals and deferred income 202,475 193,581
405,274 466,681

The Birchman Group Limited (Registered number: 04656447)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2022

13. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.12.22 31.12.21
value: £    £   
1 Ordinary B £1 1 1
1 Ordinary C £1 1 1
1 Ordinary D £1 1 1
1 Ordinary E £1 1 1
10,500 Ordinary A 10p 1,050 1,050
1,054 1,054

The ordinary F share was repurchased by the company on 8 November 2022 and discontinued.

14. RESERVES
Retained Share
earnings premium Totals
£    £    £   

At 1 January 2022 2,950,988 29,950 2,980,938
Profit for the year 6,053,278 6,053,278
Dividends (4,379,317 ) (4,379,317 )
At 31 December 2022 4,624,949 29,950 4,654,899

15. ULTIMATE PARENT COMPANY

Birchman ESP Limited is regarded by the directors as being the company's ultimate parent company.

The registered office for Birchman ESP Limited is located at Units SCF 1 & 2, Western International Market, Hayes Road, Southall, Middlesex, UB2 5XJ.

16. RELATED PARTY DISCLOSURES

Entities with control, joint control or significant influence over the entity

The balance owed to related parties are two associated companies controlled by FJ Aguayo and IG Wyrley-Birch respectively. These two associated companies have equal interest in the share capital of Birchman ESP Limited.

17. ULTIMATE CONTROLLING PARTY

The ultimate controlling party is Birchman ESP Limited.

18. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
31.12.22 31.12.21
£    £   
Profit before taxation 6,208,853 3,567,983
Depreciation charges 988 988
Effect of foreign exchange rate change (650 ) (18 )
Finance income (5,400,000 ) (2,500,000 )
809,191 1,068,953
(Increase)/decrease in trade and other debtors (2,650,982 ) 3,046,726
Decrease in trade and other creditors (12,770 ) (2,010,934 )
Cash generated from operations (1,854,561 ) 2,104,745

The Birchman Group Limited (Registered number: 04656447)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2022

19. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2022
31.12.22 1.1.22
£    £   
Cash and cash equivalents 2,109,666 3,147,106
Year ended 31 December 2021
31.12.21 1.1.21
£    £   
Cash and cash equivalents 3,147,106 23,716


20. ANALYSIS OF CHANGES IN NET FUNDS

Effect of
foreign
exchange
At 1.1.22 Cash flow rate change At 31.12.22
£    £    £    £   
Net cash
Cash at bank 3,147,106 (1,038,090 ) 650 2,109,666
3,147,106 (1,038,090 ) 650 2,109,666
Total 3,147,106 (1,038,090 ) 650 2,109,666