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REGISTERED NUMBER: 08088022 (England and Wales)







GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2023

FOR

ENTEC GLOBAL LIMITED

ENTEC GLOBAL LIMITED (REGISTERED NUMBER: 08088022)

CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023










Page

Company Information 1

Group Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 5

Consolidated Income Statement 9

Consolidated Other Comprehensive Income 10

Consolidated Balance Sheet 11

Company Balance Sheet 12

Consolidated Statement of Changes in Equity 13

Company Statement of Changes in Equity 14

Consolidated Cash Flow Statement 15

Notes to the Consolidated Cash Flow Statement 16

Notes to the Consolidated Financial Statements 18


ENTEC GLOBAL LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 JANUARY 2023







DIRECTORS: C P Syner
M Robinson





REGISTERED OFFICE: Charter House
161 Newhall Street
Birmingham
West Midlands
B3 1SW





REGISTERED NUMBER: 08088022 (England and Wales)





AUDITORS: Prime
Chartered Accountants
Statutory Auditor
161 Newhall Street
Birmingham
B3 1SW

ENTEC GLOBAL LIMITED (REGISTERED NUMBER: 08088022)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2023


The directors present their strategic report of the company and the group for the year ended 31 January 2023.

REVIEW OF BUSINESS
The results for the year and financial position of the group are as shown in the annexed financial statements.
Whilst the consequences of the Coronavirus pandemic were still felt in quarter 1 & 2, they eased as the year progressed. The primary issue in 2022 was the scarcity of foreign currency in many of our markets, particularly Africa. This resulted in a number of clients having a reduced spend as they could not source USD / EUR or GBP. As a result turnover fell by 8% to £17.2 million. 2022 was the first year where our service fee model was in use throughout the year. This is an alternative to a traditional mark up approach, and quarter 4 enjoyed increased service fees. This is now being deployed across a number of our African clients and is being well received.

Gross Profit increased from 21.5% to 27.3%. This is primarily a result of quarters 3 & 4 where more fee business was introduced.

Operating costs increased by £330k to £3.4 million in the year. This was in line with plan and was primarily due to investment in additional staff. Financing costs also rose in line with the increase in interest rates.

Improved GP resulted in an increase in operating margin to 7.4%, returning a pre-tax profit of £1,262k.

The group's cash position has remained strong at £800k due to a combination of strong credit control and good treasury management.

The group has a strong backorder book and expects to return to pre pandemic sales and profit levels in the current year and seeks to expand its customer base as it develops its market share in the world. Costs continue to be closely controlled as supply chains become more costly and challenging.

PRINCIPAL RISKS AND UNCERTAINTIES
The group's activities expose it to a number of financial risks including cash flow risk, credit risk and technology risk.

CASH FLOW RISK
The group's trading currencies are limited to the GBP, USD and Euro, which reduce the financial risks of changes in foreign currency exchange rates. The group uses a variety of exchange control measures to further mitigate the risk. Interest bearing assets and liabilities are held at fixed rate, if considered appropriate, to ensure certainty of cash flows.

CREDIT RISK
The group's principal financial assets are trade and other receivables. The group's credit risk is primary attributable to its trade receivables. The amounts presented in the balance sheets are net of allowances for doubtful receivables.

TECHNOLOGY RISK
The group faces risks in developing markets from the increased availability of product information online and this continues to put pressure on margins. The group is approaching this risk by furthering its adoption of technology and through the continued development of online trading platforms which reduce transactional and processing costs. The group is committed to its pursuit of process automation and technical improvements in the supply chain. The group is investing heavily via partnerships with universities to enhance the use of AI.

POLITICAL RISK
A large proportion of the group's trade is in Africa. The group trades only in political stable countries and with a primarily multi-national blue chip client base. The group further mitigates territory risk by operating under global and regional contracts with its major customers. The group also monitors any changes within region's political and social frameworks and its relations with the United Kingdom Government for any issues which may pose a threat.

ENTEC GLOBAL LIMITED (REGISTERED NUMBER: 08088022)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2023


ECONOMIC RISK
The Coronavirus pandemic continues to effect supply lines and restrict supply, raising prices and inflation. World Governments have reacted differently to the challenges created by the pandemic which has meant that strong supplier relationships and flexibility to change has proved invaluable.

The group has put procedures in place to enable it to react quickly to any changes in Government regulations or changes in demand and continues to monitor economic and political activity in its main trading markets to ensure protection of its core business.

KEY PERFORMANCE INDICATORS
The main key performance indicator (KPI) for the group is the gross profit margin (being the ratio of gross profit to turnover) which saw a increase of 6% to 27% during the year. With margin pressures in key trading territories and the continued effect of the Coronavirus pandemic, the group continues to monitor its gross profit margin to enable it to assess the effects of its investments for future sales and take decisive action if required.

ON BEHALF OF THE BOARD:





C P Syner - Director


23 October 2023

ENTEC GLOBAL LIMITED (REGISTERED NUMBER: 08088022)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 JANUARY 2023


The directors present their report with the financial statements of the company and the group for the year ended 31 January 2023.

DIVIDENDS
During the year dividends of £225,240 (2022: £174,940) were paid to shareholders of B Ordinary Shares.

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

C P Syner
M Robinson

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

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

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

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

AUDITORS
The auditors, Prime, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





C P Syner - Director


23 October 2023

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
ENTEC GLOBAL LIMITED


Opinion
We have audited the financial statements of Entec Global Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 January 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the group's and of the parent company affairs as at 31 January 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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

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

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

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

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

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

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
ENTEC GLOBAL LIMITED


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

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

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

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

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

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
ENTEC GLOBAL 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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the industry sector;
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation;
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence;

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:
- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries to identify unusual transactions;
- assessed whether judgements and assumptions made in determining accounting estimates were indicative of potential bias; and
- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
- agreeing financial statement disclosures to underlying supporting documentation;
- enquiring of management as to actual and potential litigation and claims; and
- reviewing correspondence with HMRC and other relevant parties.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
ENTEC GLOBAL LIMITED


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.




Leigh Dudley FCCA (Senior Statutory Auditor)
for and on behalf of Prime
Chartered Accountants
Statutory Auditor
161 Newhall Street
Birmingham
B3 1SW

23 October 2023

ENTEC GLOBAL LIMITED (REGISTERED NUMBER: 08088022)

CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 JANUARY 2023

2023 2022
Notes £    £    £    £   

TURNOVER 3 17,177,745 18,693,241

Cost of sales 12,489,212 14,687,531
GROSS PROFIT 4,688,533 4,005,710

Distribution costs 83,699 18,763
Administrative expenses 3,326,693 3,075,411
3,410,392 3,094,174
1,278,141 911,536

Other operating income - 13,284
OPERATING PROFIT 5 1,278,141 924,820


Interest payable and similar expenses 6 16,277 9,633
PROFIT BEFORE TAXATION 1,261,864 915,187

Tax on profit 7 104,759 39,562
PROFIT FOR THE FINANCIAL YEAR 1,157,105 875,625
Profit attributable to:
Owners of the parent 1,153,304 882,733
Non-controlling interests 3,801 (7,108 )
1,157,105 875,625

ENTEC GLOBAL LIMITED (REGISTERED NUMBER: 08088022)

CONSOLIDATED OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2023

2023 2022
Notes £    £   

PROFIT FOR THE YEAR 1,157,105 875,625


OTHER COMPREHENSIVE INCOME
Currency translation differences on
foreign investments (39,173 ) (80,040 )
Income tax relating to other
comprehensive income

-

-
OTHER COMPREHENSIVE INCOME
FOR THE YEAR, NET OF INCOME TAX

(39,173

)

(80,040

)
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

1,117,932

795,585

Total comprehensive income attributable to:
Owners of the parent 1,114,132 802,693
Non-controlling interests 3,800 (7,108 )
1,117,932 795,585

ENTEC GLOBAL LIMITED (REGISTERED NUMBER: 08088022)

CONSOLIDATED BALANCE SHEET
31 JANUARY 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 11 - -
Tangible assets 12 90,911 158,143
Investments 13 976 976
91,887 159,119

CURRENT ASSETS
Stocks 14 1,074,934 748,883
Debtors 15 5,523,917 5,416,305
Cash at bank and in hand 800,085 1,425,562
7,398,936 7,590,750
CREDITORS
Amounts falling due within one year 16 5,557,624 6,615,525
NET CURRENT ASSETS 1,841,312 975,225
TOTAL ASSETS LESS CURRENT
LIABILITIES

1,933,199

1,134,344

CREDITORS
Amounts falling due after more than one
year

17

(126,167

)

(206,102

)

PROVISIONS FOR LIABILITIES 22 (7,855 ) (21,756 )
NET ASSETS 1,799,177 906,486

CAPITAL AND RESERVES
Called up share capital 23 100 100
Other reserves 24 (404,598 ) (365,425 )
Retained earnings 24 2,236,809 1,308,745
SHAREHOLDERS' FUNDS 1,832,311 943,420

NON-CONTROLLING INTERESTS 25 (33,134 ) (36,934 )
TOTAL EQUITY 1,799,177 906,486

The financial statements were approved by the Board of Directors and authorised for issue on 23 October 2023 and were signed on its behalf by:





C P Syner - Director


ENTEC GLOBAL LIMITED (REGISTERED NUMBER: 08088022)

COMPANY BALANCE SHEET
31 JANUARY 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 11 - -
Tangible assets 12 - -
Investments 13 5,125,000 5,125,000
5,125,000 5,125,000

CURRENT ASSETS
Debtors 15 831,152 -

CREDITORS
Amounts falling due within one year 16 4,525,584 3,637,932
NET CURRENT LIABILITIES (3,694,432 ) (3,637,932 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

1,430,568

1,487,068

CAPITAL AND RESERVES
Called up share capital 23 100 100
Retained earnings 1,430,468 1,486,968
SHAREHOLDERS' FUNDS 1,430,568 1,487,068

Company's profit for the financial year 168,740 159,940

The financial statements were approved by the Board of Directors and authorised for issue on 23 October 2023 and were signed on its behalf by:





C P Syner - Director


ENTEC GLOBAL LIMITED (REGISTERED NUMBER: 08088022)

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

Called up
share Retained Other
capital earnings reserves
£    £    £   

Balance at 1 February 2021 749,100 600,952 (285,385 )

Changes in equity
Issue of share capital (749,000 ) - -
Dividends - (174,940 ) -
Total comprehensive income - 882,733 (80,040 )
Balance at 31 January 2022 100 1,308,745 (365,425 )

Changes in equity
Dividends - (225,240 ) -
Total comprehensive income - 1,153,304 (39,173 )
Balance at 31 January 2023 100 2,236,809 (404,598 )
Non-controlling Total
Total interests equity
£    £    £   

Balance at 1 February 2021 1,064,667 (29,826 ) 1,034,841

Changes in equity
Issue of share capital (749,000 ) - (749,000 )
Dividends (174,940 ) - (174,940 )
Total comprehensive income 802,693 (7,108 ) 795,585
Balance at 31 January 2022 943,420 (36,934 ) 906,486

Changes in equity
Dividends (225,240 ) - (225,240 )
Total comprehensive income 1,114,131 3,800 1,117,931
Balance at 31 January 2023 1,832,311 (33,134 ) 1,799,177

ENTEC GLOBAL LIMITED (REGISTERED NUMBER: 08088022)

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

Called up
share Retained Total
capital earnings equity
£    £    £   

Balance at 1 February 2021 749,100 1,501,968 2,251,068

Changes in equity
Issue of share capital (749,000 ) - (749,000 )
Dividends - (174,940 ) (174,940 )
Total comprehensive income - 159,940 159,940
Balance at 31 January 2022 100 1,486,968 1,487,068

Changes in equity
Dividends - (225,240 ) (225,240 )
Total comprehensive income - 168,740 168,740
Balance at 31 January 2023 100 1,430,468 1,430,568

ENTEC GLOBAL LIMITED (REGISTERED NUMBER: 08088022)

CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 JANUARY 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 293,742 (316,953 )
Interest paid (12,098 ) (4,983 )
Interest element of hire purchase
payments paid

(4,179

)

(4,650

)
Tax paid (103,837 ) (136,474 )
Net cash from operating activities 173,628 (463,060 )

Cash flows from investing activities
Purchase of tangible fixed assets (35,803 ) (37,175 )
Sale of tangible fixed assets 40,001 1,000
Net cash from investing activities 4,198 (36,175 )

Cash flows from financing activities
New loans in year - 169,901
Loan repayments in year (204,497 ) (20,833 )
Capital repayments in year (58,425 ) (18,608 )
Amount introduced by directors - 287,806
Amount withdrawn by directors (407,685 ) -
Capital reduction - (749,000 )
Equity dividends paid (225,240 ) (174,940 )
Net cash from financing activities (895,847 ) (505,674 )

Decrease in cash and cash equivalents (718,021 ) (1,004,909 )
Cash and cash equivalents at
beginning of year

2

(809,775

)

195,134

Cash and cash equivalents at end of
year

2

(1,527,796

)

(809,775

)

ENTEC GLOBAL LIMITED (REGISTERED NUMBER: 08088022)

NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 JANUARY 2023


1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
2023 2022
£    £   
Profit before taxation 1,261,864 915,187
Depreciation charges 83,122 92,242
Profit on disposal of fixed assets (20,088 ) (1,000 )
Foreign exchange rate movements (39,178 ) (80,039 )
Finance costs 16,277 9,633
1,301,997 936,023
Increase in stocks (326,051 ) (17,877 )
Increase in trade and other debtors (106,676 ) (2,065,742 )
(Decrease)/increase in trade and other creditors (575,528 ) 830,643
Cash generated from operations 293,742 (316,953 )

2. CASH AND CASH EQUIVALENTS

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

Year ended 31 January 2023
31.1.23 1.2.22
£    £   
Cash and cash equivalents 800,085 1,425,562
Bank overdrafts (2,327,881 ) (2,235,337 )
(1,527,796 ) (809,775 )
Year ended 31 January 2022
31.1.22 1.2.21
£    £   
Cash and cash equivalents 1,425,562 1,197,121
Bank overdrafts (2,235,337 ) (1,001,987 )
(809,775 ) 195,134


ENTEC GLOBAL LIMITED (REGISTERED NUMBER: 08088022)

NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 JANUARY 2023


3. ANALYSIS OF CHANGES IN NET DEBT

At 1.2.22 Cash flow At 31.1.23
£    £    £   
Net cash
Cash at bank and in hand 1,425,562 (625,477 ) 800,085
Bank overdrafts (2,235,337 ) (92,544 ) (2,327,881 )
(809,775 ) (718,021 ) (1,527,796 )
Debt
Finance leases (85,363 ) 58,429 (26,934 )
Debts falling due within 1 year (602,340 ) 151,496 (450,844 )
Debts falling due after 1 year (179,168 ) 53,001 (126,167 )
(866,871 ) 262,926 (603,945 )
Total (1,676,646 ) (455,095 ) (2,131,741 )

ENTEC GLOBAL LIMITED (REGISTERED NUMBER: 08088022)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023


1. STATUTORY INFORMATION

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

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


2. ACCOUNTING POLICIES

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

The functional currency of Entec Global Limited is considered to be pounds sterling as this is the primary economic environment with the company operates. The consolidated financial statements are also presented in pounds sterling. Foreign operations are included in accordance with the policies set out below.

Entec Global Limited meets the definition of a qualifying entity under FRS 102 and has therefore taken exemption of the disclosure exemptions available to it in respect of its separate financial statements, which are presented alongside the consolidated financial statements. Exemptions have been taken in relation to share-based payments and financial instruments.

Basis of consolidation
The group financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 January each year. The results of subsidiaries acquired or sold are consolidated for the periods from or to the date on which control passed.

Business combinations are accounted for under the purchase method. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used in line with those used by the group. All inter-company transactions, balances, income and expenses are eliminated on consolidation.

Under S408 of the Companies Act 2006 the company is exempt from the requirement to present its own profit and loss account. Its profit and loss for the year is shown on page 12 of the financial statements.

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.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

ENTEC GLOBAL LIMITED (REGISTERED NUMBER: 08088022)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2023


2. ACCOUNTING POLICIES - continued

Significant judgements and estimates
In the application of the company's accounting policies the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision effects only that period, or in the period of revision and future periods if the revision effects both current and future periods.

In preparing these financial statements, the directors have made the following judgements:

The company reviews the carrying value of all assets for indications of impairment at each period. If indicators of impairment exist, the carrying value of the asset is subject to further testing to determine whether its carrying value exceeds its recoverable amount. This process will usually involve the estimation of future cash flows which are likely to be generated by the asset.

A provision is recognised when the company has a present legal or constructive obligation as a result of a past event for which it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. If the effect is material, provisions are determined by discounting the expected future cash flows at a rate that reflects the time value of money and the risk specific to the liability.

Whether a present obligation is probable or not requires judgement. The nature and type of risks for these provisions differ and management's judgement is applied regarding the nature and extent of obligations in deciding if an outflow of resources is probable or not.

The directors have reviewed the asset lives and associated residual values of all fixed assets classes. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projects disposal values.

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

Goodwill
Goodwill arising on the acquisition of subsidiary undertakings, representing any excess of the fair value of the correspondence given over the fair value of the identifiable assets and liabilities acquired is capitalised and written off on a straight line basis over its useful life, which is 10 years. Provisions for impairment are made when required.

Negative goodwill is similarly in the the Balance Sheet and is credited to profit and loss in the period to which the acquired non-monetary assets are recovered through depreciation or sales. Negative goodwill in excess of fair value of the non-monetary assets acquired is credited to profit and loss on a straight line over 10 years, to match the period of benefit.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Short leasehold - 20% on cost
Fixtures and fittings - 20% on cost
Motor vehicles - 25% on reducing balance

ENTEC GLOBAL LIMITED (REGISTERED NUMBER: 08088022)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2023


2. ACCOUNTING POLICIES - continued

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Current and deferred taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Research and development
Expenditure on research and development is written off in the year in which it is incurred.


Foreign currencies
Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are reported at the rates of exchange prevailing at that balance sheet date. Transactions in foreign currencies are recorded at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating profit.

The results of overseas operations are translated at the average rates of exchange during the year and their Balance Sheets ar the rates ruling at the Balance Sheet date. Exchange rate differences arising on translation of the opening net assets and results of overseas operations are reported in other comprehensive income and accumulated in equity (attributable to non-controlling interests as appropriate).

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid and received under operating leases are charged or credited to profit and loss on a straight line basis over the period of the lease.

Rental income from operating leases is recognised on a straight line basis over the terms of the lease.

ENTEC GLOBAL LIMITED (REGISTERED NUMBER: 08088022)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2023


2. ACCOUNTING POLICIES - continued

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

Differences between contributions payable in the year and contributions actually paid are shown in either accruals or prepayments in the Balance sheet.

Share-based payments
The company issues equity settled share options to certain employees within the group. Equity-settled share-based payment transactions are measured at the fair value (excluding the effect of non market-based vesting conditions) at the date of grant. The fair value determined at the grant date of the equity-settled share-based payment is expenses on a straight line basis over the vesting period based on the group's estimate of shares that will eventually vest and adjusted for the effect of non market-based vesting conditions.

Fair value is measured by use of the price earnings model, which is considered by management to be the most appropriate method of valuation.

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the group.

An analysis of turnover by geographical market is given below:

2023 2022
£    £   
United Kingdom 51,605 814,015
South America 458,840 2,669,495
Asia 5,414,198 4,050,009
Africa 10,956,443 8,753,400
Australia 243,852 2,330,680
North America 52,807 75,642
17,177,745 18,693,241

4. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 2,045,826 1,907,085
Social security costs 190,582 170,827
Other pension costs 94,696 56,287
2,331,104 2,134,199

The average number of employees during the year was as follows:
2023 2022

Sales and administration 48 50

ENTEC GLOBAL LIMITED (REGISTERED NUMBER: 08088022)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2023


4. EMPLOYEES AND DIRECTORS - continued

2023 2022
£    £   
Directors' remuneration 45,468 40,000

5. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2023 2022
£    £   
Depreciation - owned assets 49,822 55,323
Depreciation - assets on hire purchase contracts 33,300 36,920
Profit on disposal of fixed assets (20,088 ) (1,000 )
Auditors' remuneration 36,500 34,000
Operating lease payments - property 55,000 55,000
Operating lease payments - other 48,365 52,075
Exchange rate losses/(gains) (66,951 ) (96,372 )

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank loan interest 11,995 4,260
Corporation tax interest 103 723
Hire purchase 4,179 4,650
16,277 9,633

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 118,660 41,662

Deferred tax (13,901 ) (2,100 )
Tax on profit 104,759 39,562

ENTEC GLOBAL LIMITED (REGISTERED NUMBER: 08088022)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2023


7. TAXATION - continued

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:

2023 2022
£    £   
Profit before tax 1,261,864 915,187
Profit multiplied by the standard rate of corporation tax in the UK of
19 % (2022 - 19 %)

239,754

173,886

Effects of:
Expenses not deductible for tax purposes 1,596 1,052
Depreciation in excess of capital allowances 13,758 6,905
Research and development expenditure claim (118,382 ) (110,582 )

Profits on overseas operations not subject to tax (14,249 ) (20,911 )
Losses carried forward - (10,788 )
Profit on disposal (3,817 ) -
Deferred tax movement (13,901 ) -
Total tax charge 104,759 39,562

Tax effects relating to effects of other comprehensive income

2023
Gross Tax Net
£    £    £   
Currency translation differences on
foreign investments (39,173 ) - (39,173 )
(39,173 ) - (39,173 )

2022
Gross Tax Net
£    £    £   
Currency translation differences on
foreign investments (80,040 ) - (80,040 )
(80,040 ) - (80,040 )

8. INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.


ENTEC GLOBAL LIMITED (REGISTERED NUMBER: 08088022)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2023


9. DIVIDENDS
2023 2022
£    £   
A Ordinary shares of £0.01 each
Interim 50,000 -
B Ordinary shares of £0.01 each
Interim 175,240 174,940
225,240 174,940

10. GOVERNMENT GRANTS

Included within other income is Government Grants totalling £Nil (2022:£13,284) relating to the Job Retention Scheme.

11. INTANGIBLE FIXED ASSETS

Group
Goodwill
£   
COST
At 1 February 2022 3,744,694
Disposals 1,074,697
At 31 January 2023 4,819,391
AMORTISATION
At 1 February 2022 3,744,694
Eliminated on disposal 1,074,697
At 31 January 2023 4,819,391
NET BOOK VALUE
At 31 January 2023 -
At 31 January 2022 -

ENTEC GLOBAL LIMITED (REGISTERED NUMBER: 08088022)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2023


12. TANGIBLE FIXED ASSETS

Group
Fixtures
Short and Motor
leasehold fittings vehicles Totals
£    £    £    £   
COST
At 1 February 2022 57,387 602,485 239,825 899,697
Additions 14,510 21,293 - 35,803
Disposals - - (86,890 ) (86,890 )
At 31 January 2023 71,897 623,778 152,935 848,610
DEPRECIATION
At 1 February 2022 49,720 519,311 172,523 741,554
Charge for year 6,141 40,989 35,992 83,122
Eliminated on disposal - - (66,977 ) (66,977 )
At 31 January 2023 55,861 560,300 141,538 757,699
NET BOOK VALUE
At 31 January 2023 16,036 63,478 11,397 90,911
At 31 January 2022 7,667 83,174 67,302 158,143

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Motor
vehicles
£   
COST
At 1 February 2022 147,680
Disposals (86,890 )
At 31 January 2023 60,790
DEPRECIATION
At 1 February 2022 83,070
Charge for year 33,300
Eliminated on disposal (66,977 )
At 31 January 2023 49,393
NET BOOK VALUE
At 31 January 2023 11,397
At 31 January 2022 64,610

ENTEC GLOBAL LIMITED (REGISTERED NUMBER: 08088022)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2023


13. FIXED ASSET INVESTMENTS

Group
Listed
investments
£   
COST
At 1 February 2022
and 31 January 2023 976
NET BOOK VALUE
At 31 January 2023 976
At 31 January 2022 976
Company
Shares in
group
undertakings
£   
COST
At 1 February 2022
and 31 January 2023 5,125,000
NET BOOK VALUE
At 31 January 2023 5,125,000
At 31 January 2022 5,125,000

The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiaries


Entec International Limited
Registered office: Charter House, 161 Newhall Street, Birmingham, B3 1SW
Nature of business: Engineering supplier and contractor
%
Class of shares: holding
Ordinary £1 shares 100.00
Ordinary A £1 shares

International Cargo Limited
Registered office: Charter House, 161 Newhall Street, Birmingham, B3 1SW
Nature of business: International haulage
%
Class of shares: holding
Ordinary £1 shares 100.00

ENTEC GLOBAL LIMITED (REGISTERED NUMBER: 08088022)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2023


13. FIXED ASSET INVESTMENTS - continued

Need2 Limited
Registered office: Charter House, 161 Newhall Street, Birmingham, B3 1SW
Nature of business: Computer software provider
%
Class of shares: holding
Ordinary £1 shares 100.00

Entec Africa (Ghana) Limited
Registered office: Registered outside the United Kingdom
Nature of business: Importer of engineering supplies
%
Class of shares: holding
Ordinary shares 100.00

Entec International (West Africa) Limited
Registered office: Registered outside the United Kingdom
Nature of business: Importer of engineering supplies
%
Class of shares: holding
Ordinary shares 90.00

Entec International (East Africa) Limited
Registered office: Registered outside the United Kingdom
Nature of business: Importer of engineering supplies
%
Class of shares: holding
Ordinary shares 100.00

Entec International (Pty) Limited
Registered office: Registered outside the United Kingdom
Nature of business: Importer of engineering supplies
%
Class of shares: holding
Ordinary shares 74.00

XSMRO Limited
Registered office: Charter House, 161 Newhall Street, Birmingham, B3 1SW
Nature of business: Dormant
%
Class of shares: holding
Ordinary £1 shares 100.00


Listed investments represent investments in non-puttable ordinary shares. The fair value of listed investments at the year end was £838 (2022: £1,925). These values have been determined with reference to the quoted market price at the reporting date. The costs of the shares on acquisition are stated above.

14. STOCKS

Group
2023 2022
£    £   
Stocks 1,074,934 748,883

ENTEC GLOBAL LIMITED (REGISTERED NUMBER: 08088022)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2023


15. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Trade debtors 5,363,771 5,106,453 - -
Amounts owed by group undertakings - - 831,152 -
Other debtors - 2,802 - -
Tax 68,443 67,507 - -
VAT 86,651 101,482 - -
Prepayments 5,052 138,061 - -
5,523,917 5,416,305 831,152 -

16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Bank loans and overdrafts (see note 18) 2,778,725 2,837,677 - -
Hire purchase contracts (see note 19) 26,934 58,429 - -
Trade creditors 1,974,471 2,998,031 - -
Amounts owed to group undertakings - - 4,514,580 3,219,242
Tax 26,842 11,083 - -
Social security and other taxes 58,970 47,787 - -
Other creditors 33,211 17,563 - -
Directors' current accounts 3,005 410,690 3,005 410,690
Accruals and deferred income (1 ) 1 (1 ) -
Accrued expenses 655,467 234,264 8,000 8,000
5,557,624 6,615,525 4,525,584 3,637,932

17. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR

Group
2023 2022
£    £   
Bank loans (see note 18) 126,167 179,168
Hire purchase contracts (see note 19) - 26,934
126,167 206,102

ENTEC GLOBAL LIMITED (REGISTERED NUMBER: 08088022)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2023


18. LOANS

An analysis of the maturity of loans is given below:

Group
2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 2,327,881 2,235,337
Bank loans 450,844 602,340
2,778,725 2,837,677
Amounts falling due between one and two years:
Bank loans - 1-2 years 50,000 50,000
Amounts falling due between two and five years:
Bank loans - 2-5 years 76,167 129,168

The bank loan falling due in more than five years is repayable by installments and bears an interest rate of 3.99% per annum over the Bank of England Base Rate.

19. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group
Hire purchase contracts
2023 2022
£    £   
Net obligations repayable:
Within one year 26,934 58,429
Between one and five years - 26,934
26,934 85,363

Group
Non-cancellable operating leases
2023 2022
£    £   
Within one year 92,859 95,019
Between one and five years 71,788 92,776
164,647 187,795

Included in the above are operating lease commitments in respect of land and buildings of £55,000 (2022: £55,000) due within one year and £30,938 (2022: £55,000) due between one and five years.

ENTEC GLOBAL LIMITED (REGISTERED NUMBER: 08088022)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2023


20. SECURED DEBTS

The following secured debts are included within creditors:

Group
2023 2022
£    £   
Bank overdrafts 2,327,881 2,235,337
Bank loans 577,011 781,508
Hire purchase contracts 26,934 85,363
2,931,826 3,102,208

The bank overdrafts and loans are secured by fixed and floating charges over all present and future property and assets of the company.

Hire purchase contracts were secured against the asset to which they relate.

Included within bank loans is a total of £176,167 (2022: £229,167) relating to a Coronavirus Business Interruption Loan, this is secured by the Government and not against the company.

21. FINANCIAL INSTRUMENTS

The carrying values of the group and company's financial assets and liabilities are summarised by category below:
Group
2023 2022
£ £
Financial assets
Measured at fair value through profit and loss 976 976
Measured at amortised cost 6,297,504 6,636,299
6,298,480 6,637,275

Financial liabilities
Measured at fair value through profit and loss - -
Measured at amortised cost 5,612,343 6,821,627
5,612,343 6,821,627

The group's interest, expenses and gains and losses in respect of financial instruments were £16,174 (2022: £8,910).

22. PROVISIONS FOR LIABILITIES

Group
2023 2022
£    £   
Deferred tax 7,855 21,756

ENTEC GLOBAL LIMITED (REGISTERED NUMBER: 08088022)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2023


22. PROVISIONS FOR LIABILITIES - continued

Group
Deferred
tax
£   
Balance at 1 February 2022 21,756
Credit to Income Statement during year (13,901 )
Balance at 31 January 2023 7,855

Included in the deferred tax provision at the year end is £7,855 (2022: £21,756) in respect of accelerated capital allowances.

23. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
10,000 A Ordinary £0.01 100 100
1,498,000 Preference £0.50 - -
2 B Ordinary £0.01 - -
100 100

Each A Ordinary share is entitled to one equal vote and equal dividends in all circumstances. B Ordinary shares do not hold voting rights but are entitled to dividends. Preference shares do not hold voting rights and are not entitled to a profit share. Preference shares have priority, upon sale or liquidation, to repayment at par and are not redeemable.

24. RESERVES

Group
Retained Other
earnings reserves Totals
£    £    £   

At 1 February 2022 1,308,745 (365,425 ) 943,320
Profit for the year 1,153,304 - 1,153,304
Dividends (225,240 ) - (225,240 )
Unrealised gain/(loss) - (39,173 ) (39,173 )
At 31 January 2023 2,236,809 (404,598 ) 1,832,211

ENTEC GLOBAL LIMITED (REGISTERED NUMBER: 08088022)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2023


24. RESERVES - continued

Company
Retained
earnings
£   

At 1 February 2022 1,486,968
Profit for the year 168,740
Dividends (225,240 )
At 31 January 2023 1,430,468

The group's reserves are as follows:

The retained earnings reserve represent the cumulative profits or losses net of dividends paid.

Other reserves represent exchange rate movements on the conversion of foreign subsidiary's net assets.

The company's reserve is a retained earnings reserve which represents the cumulative profits or losses net of dividends paid.

25. NON-CONTROLLING INTERESTS

Non controlling interests represent the net assets of the group attributable to the minority shareholders of the subsidiary undertakings.

26. OTHER FINANCIAL COMMITMENTS

The group's bankers have a first fixed charge over all present and future property, book and other debts, chattels and unclaimed capital; and a first floating charge over all present and future assets and undertakings.

An unlimited multilateral guarantee exists between the bank and Entec Global Limited, its subsidiary companies, Entec international Limited, International Cargo Limited, Need2 Limited and Adepto Group Limited. At the year end £1,928,903 (2022: £1,365,419) was due to the company's bankers under this arrangement.


27. RELATED PARTY DISCLOSURES

During the year, total of key management personnel compensation of £327,624 (2022: 244,251) was paid.

No compensation was paid to key management personnel during the year. However during the year ended 31 January 2022 a total of key management personnel compensation of £ 244,251 was paid.

28. ULTIMATE CONTROLLING PARTY

There is no ultimate controlling party.

ENTEC GLOBAL LIMITED (REGISTERED NUMBER: 08088022)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2023


29. SHARE-BASED PAYMENT TRANSACTIONS

The company operates a share option scheme for certain employees of the group.

Options are exercisable at a price equal to the estimated fair value of the company's shares on the date of grant. There is no specific vesting period and any options which remain unexercised after a period of 10 years from the date of grant, the options expire. Options are forfeited of the employee leaves the group, unless otherwise agreed between the employee and the company.

2023 2022





Numberof
shares
Weighted
average
exercise
price


Number
of shares
Weighted
average
exercise
price
£ £

Outstanding at the beginning of the year 2,119 0.01 2,119 0.01
Granted in the year - - - -
Exercised in the year - - - -
Outstanding at the end of the year 2,119 2,119

Exercisable at the end of the year 2,119 0.01 2,119 0.01

The fair value of the options at grant date was calculated using the price earnings model, which is considered to be the most appropriate generally accepted valuation method of measuring fair value.