REGISTERED NUMBER: |
Ultimate (Commercial Interiors) Limited |
Strategic Report, |
Report of the Directors and |
Financial Statements |
for the Year Ended 31 March 2023 |
REGISTERED NUMBER: |
Ultimate (Commercial Interiors) Limited |
Strategic Report, |
Report of the Directors and |
Financial Statements |
for the Year Ended 31 March 2023 |
Ultimate (Commercial Interiors) Limited (Registered number: 04115984) |
Contents of the Financial Statements |
for the year ended 31 March 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 7 |
Income Statement | 11 |
Other Comprehensive Income | 12 |
Balance Sheet | 13 |
Statement of Changes in Equity | 14 |
Cash Flow Statement | 15 |
Notes to the Cash Flow Statement | 16 |
Notes to the Financial Statements | 17 |
Ultimate (Commercial Interiors) Limited |
Company Information |
for the year ended 31 March 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditor |
Aireside House |
Aireside Business Centre |
Royd Ings Avenue |
Keighley |
West Yorkshire |
BD21 4BZ |
Ultimate (Commercial Interiors) Limited (Registered number: 04115984) |
Strategic Report |
for the year ended 31 March 2023 |
The directors present their strategic report for the year ended 31 March 2023. |
REVIEW OF BUSINESS |
The principal activity of the company in the year under review was that of retail of office furniture, provision of office design services, provision of interior fit out and furniture and design services for offices, hotels, leisure and education properties. The company trades from it's registered office, The Hive, 8 Skelton Business Park, Crosshills, Keighley, BD20 7BY. |
The directors aim to present a balanced and comprehensive view of the development and performance of the business during the year and its position at the year end. The review is consistent with the size and non-complex nature of the business and is written in the context of the risks and uncertainties faced. |
The company has experienced a steady growth over the financial year, circa 15% growth on 2022 overall across Fitout & Furniture sales. |
The Gross Profit Margin fell slightly from 17.4% to 16.4%, reflecting the impact of some challenging projects which has led to the margin suffering slightly against previous years. |
Overall net profit for the year has fallen to £271,993, however this includes an impairment of the property of £470,462. Excluding the impairment, the trading net profit remains at a healthy position of £742,455. |
The Company's main business is within the office sector. The hospitality sector is still being pursued, however this sector hasn't been worked with since pre COVID. There continues to be strong repeat business with circa 40% of repeat custom and the company continues to maintain strong relationships with the existing supply chain, whilst exploring new relationships to aid in buying better and ensuring the pricing is competitive. |
The Company have seen continued growth in furniture sales and has been awarded Platinum partnership with one of the main furniture suppliers which will open doors to larger blue chip furniture opportunities. |
Sales in the North East are still strong contributing 27% of turnover and with the recruitment of salespersons in the Midlands & North West. It is hoped to grow these areas. |
The year has seen a change in personnel, with an in house H&S officer and new roles in the business for two quantity surveyors to support the delivery team. This has yielded some positive improvements. |
The showroom has been given a refresh, to continue to present the 'wow' factor in attracting new business and garnering attention within the market sector. |
There has been a full GAP analysis review of the business with a view to closing gaps and introducing improvements across individual departments and the business as a whole. This has seen the investment and introduction of estimating software, Conquest, towards the back end of the financial year. This has been planned and driven to be fully implemented in the next financial year. It is hoped that this will free up resources in the estimating team along with improving the pricing process. |
Further improvements within delivery and furniture making have been made to try to improve on margins. This can be seen in improvements in margins in quarter 1 of the financial year end 2024. |
Ultimate (Commercial Interiors) Limited (Registered number: 04115984) |
Strategic Report |
for the year ended 31 March 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES |
It is uncertain what impact a recession and further inflation will have going forward, though it is felt that the industry is very adaptable to changes to the market as demonstrated post COVID. The Company is flexible working with companies who are looking at growing, as well as supporting companies who are looking at downsizing and reducing their spaces. Other sectors can be explored if needed if there is a downturn in the office sector. |
The company continues to be open to cost and price rises by the supply chain and manufacturers, but work closely to ensure quotes are reviewed and amended frequently and manage to pass such costs on. |
Staff and recruitment has impacted the business. The company has suffered high recruitment costs due to having to react to demand and found the industry very fluid so is is looking to improve staff retention going forward. |
Financial risk |
The business is comfortable that it is generating sufficient margin/cash-flow to cover all eventualities. The introduction of quantity surveyors and regular CVR review meetings has seen greater attention being focused on improving margins and looking at lessons learnt. The risk of errors being made on furniture orders, has been reduced with the implementation of extra controls for checking and tracking margins. This has provided an understanding of why following these processes on order checking is so important. |
Credit risk |
The Company only trades with creditworthy parties. Receivable balances are monitored on an ongoing basis. The company is not aware of any bad debts from ongoing operations. There is a mix of how payment terms are managed on various projects. JCT contracts, payment plans, proformas are all used depending on project type and a full client credit review. Discussions will be held in the new year on possible credit insurance. |
Liquidity risk |
This is managed with regular cashflow projections, on a project by project basis to ensure that sufficient funds are available to meet amounts as and when they fall due. Often the terms on projects are negotiated with the supply chain around the client terms. Where possible, deposits are obtained and frequent invoicing is undertaken throughout the projects duration. |
The directors believe that the company has sufficient funds available to support its activities in the future. |
FUTURE DEVELOPMENTS |
Following the financial year, a Management Buyout (MBO) has been finalised by senior members of the company's management team. |
The MBO team comprises of long-standing Co-Owner Dan Platt, who now takes up the role of Chief Executive Officer; Vici Plunkett, as Finance Director; Steve Broadbent as Pre-Construction Director; Steve Cowley as Director; Bobby Murriero as Contracts Director, and Paul Alexander as Sales and Brand Director. |
The team have taken over the running of the company from Mark Hickey and Mark Naisbitt who founded Ultimate in 2002 and who are retiring. However, both will maintain a minority shareholding in the business. |
This MBO comes on the back of another record year. The company is currently working on a wide range of exciting projects throughout the UK, ranging from single office units to 20,000 sq ft schemes. All this combines to make it a very exciting time for the Ultimate team, their clients, and the supply chain. |
Other developments |
As mentioned above, the company will be implementing improvements from the GAP analysis and introducing new software to streamline processes. |
The team is focused on improving efficiencies and increasing sales. They will be exploring different markets, such as the industrial market. They are also making on-going improvements on the website, improvements to their marketing campaign and improvements to the showroom. |
Ultimate (Commercial Interiors) Limited (Registered number: 04115984) |
Strategic Report |
for the year ended 31 March 2023 |
KEY PERFORMANCE INDICATORS |
The key financial performance indicators are those that communicate the financial performance and strength of the company as a whole. These being turnover, gross margin and shareholder funds. |
- Turnover increased 15.5% from £20,121,550 to £23,250,853 |
- Gross Profit Margin decreased from 17.4% to 16.4% as described above in Review of Business |
- Shareholder funds decreased 4.8% from £2,425,599 to £2,308,584. |
The position of the company at the year end |
The Directors are satisfied with the company's position at 31st March 2023. The company is in a net current asset position, cash resources and cash generation are sufficient to meet business needs and there are no liquidity issues foreseen in the foreseeable future. |
RESEARCH AND DEVELOPMENT |
Efficiency improvements are continuously reviewed and investment in digital systems will be continuously reviewed. |
ON BEHALF OF THE BOARD: |
Ultimate (Commercial Interiors) Limited (Registered number: 04115984) |
Report of the Directors |
for the year ended 31 March 2023 |
The directors present their report with the financial statements of the company for the year ended 31 March 2023. |
DIVIDENDS |
Interim dividends per share were paid during the year as follows: |
Ordinary 1 £1 | - | £ |
- 31 March 2023 |
Ordinary 2 £1 | - | £ |
- 31 March 2023 |
Ordinary 3 £1 | - | £5175 | - 31 March 2023 |
The total distribution of dividends for the year ended 31 March 2023 will be £ |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTORS |
Other changes in directors holding office are as follows: |
DISCLOSURE IN THE STRATEGIC REPORT |
The Business Review, Key Performance Indicators, Future Developments and Principle Risks and Uncertainties statements are disclosed within the Strategic Report. |
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). 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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
Ultimate (Commercial Interiors) Limited (Registered number: 04115984) |
Report of the Directors |
for the year ended 31 March 2023 |
AUDITORS |
The auditors, Walkers Accountants Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Ultimate (Commercial Interiors) Limited |
Opinion |
We have audited the financial statements of Ultimate (Commercial Interiors) Limited (the 'company') for the year ended 31 March 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the 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 company's affairs as at 31 March 2023 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. |
Report of the Independent Auditors to the Members of |
Ultimate (Commercial Interiors) Limited |
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 five, 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 |
Ultimate (Commercial Interiors) 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 assessed the extent of compliance with the law and regulations identified above through making enquiries of management; and |
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
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: |
- tested journal entries and other adjustments for appropriateness to identify any unusual transactions, and evaluation the business rationale of significant transaction outside the normal course of the business. |
- reviewed the application of accounting policies with focus on those with heightened estimation uncertainty. |
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; and |
- enquiring of management as to actual and potential litigation and claims. |
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 |
Ultimate (Commercial Interiors) 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. |
for and on behalf of |
Statutory Auditor |
Aireside House |
Aireside Business Centre |
Royd Ings Avenue |
Keighley |
West Yorkshire |
BD21 4BZ |
Ultimate (Commercial Interiors) Limited (Registered number: 04115984) |
Income Statement |
for the year ended 31 March 2023 |
31.3.23 | 31.3.22 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT |
Administrative expenses | ( |
) | ( |
) |
301,671 | 1,141,890 |
Other operating income |
OPERATING PROFIT | 5 |
Interest receivable and similar income |
338,655 | 1,165,453 |
Interest payable and similar expenses | 6 | ( |
) | ( |
) |
PROFIT BEFORE TAXATION |
Tax on profit | 7 | ( |
) | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
Ultimate (Commercial Interiors) Limited (Registered number: 04115984) |
Other Comprehensive Income |
for the year ended 31 March 2023 |
31.3.23 | 31.3.22 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
Ultimate (Commercial Interiors) Limited (Registered number: 04115984) |
Balance Sheet |
31 March 2023 |
31.3.23 | 31.3.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 |
CURRENT ASSETS |
Stocks | 11 |
Debtors | 12 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
14 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 18 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Share premium | 20 |
Other reserves | 20 |
Retained earnings | 20 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
Ultimate (Commercial Interiors) Limited (Registered number: 04115984) |
Statement of Changes in Equity |
for the year ended 31 March 2023 |
Called up |
share | Retained | Share | Other | Total |
capital | earnings | premium | reserves | equity |
£ | £ | £ | £ | £ |
Balance at 1 April 2021 |
Changes in equity |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31 March 2022 |
Changes in equity |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31 March 2023 |
Ultimate (Commercial Interiors) Limited (Registered number: 04115984) |
Cash Flow Statement |
for the year ended 31 March 2023 |
31.3.23 | 31.3.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Interest element of hire purchase payments paid |
( |
) |
( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) |
Cash flows from financing activities |
Loan repayments in year | ( |
) | ( |
) |
Capital repayments in year | ( |
) | ( |
) |
Amount introduced by directors | 405,331 | 351,583 |
Amount withdrawn by directors | (413,241 | ) | (371,256 | ) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Increase in cash and cash equivalents |
Cash and cash equivalents at beginning of year |
2 |
845,297 |
Cash and cash equivalents at end of year | 2 | 2,654,389 | 1,722,688 |
Ultimate (Commercial Interiors) Limited (Registered number: 04115984) |
Notes to the Cash Flow Statement |
for the year ended 31 March 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.3.23 | 31.3.22 |
£ | £ |
Profit before taxation |
Depreciation charges |
Loss/(profit) on disposal of fixed assets | ( |
) |
Impairment of property | 470,462 | - |
Finance costs | 66,662 | 28,693 |
Finance income | (11,719 | ) | (183 | ) |
896,785 | 1,228,484 |
Increase in stocks | ( |
) | ( |
) |
Decrease/(increase) in trade and other debtors | ( |
) |
(Decrease)/increase in trade and other creditors | ( |
) |
Cash generated from operations |
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 March 2023 |
31.3.23 | 1.4.22 |
£ | £ |
Cash and cash equivalents | 2,654,389 | 1,722,688 |
Year ended 31 March 2022 |
31.3.22 | 1.4.21 |
£ | £ |
Cash and cash equivalents | 1,722,688 | 845,297 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.4.22 | Cash flow | At 31.3.23 |
£ | £ | £ |
Net cash |
Cash at bank | 1,722,688 | 931,701 | 2,654,389 |
1,722,688 | 2,654,389 |
Debt |
Finance leases | (37,153 | ) | 7,179 | (29,974 | ) |
Debts falling due within 1 year | (50,640 | ) | (7,382 | ) | (58,022 | ) |
Debts falling due after 1 year | (763,810 | ) | 24,133 | (739,677 | ) |
(851,603 | ) | 23,930 | (827,673 | ) |
Total | 871,085 | 955,631 | 1,826,716 |
Ultimate (Commercial Interiors) Limited (Registered number: 04115984) |
Notes to the Financial Statements |
for the year ended 31 March 2023 |
1. | STATUTORY INFORMATION |
Ultimate (Commercial Interiors) Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Significant judgements and estimates |
The preparation of these financial statements requires management to make judgements, estimates and assumptions that affect the applications of policies and the reported amounts of assets and liabilities, income and expenses. |
Judgements and estimates are continually evaluated and are based on historical experiences and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. |
- Estimation Uncertainty |
Information about estimates and assumptions that have the most significant effect on recognition and measurement of assets, liabilities, income and expenses is provided below. |
- Useful lives of depreciable assets |
Management reviews its estimates of the useful lives of depreciable assets at each reporting date, based on the expected utility of assets. Uncertainties in these estimates relate to mechanical and technological obsolescence that may change the utility of certain plant and equipment.Acc |
- Accrued income |
Accrued income is calculated using the project valuation or the costs incurred to date plus the expected margin for the project. Uncertainties in these estimates relate to the expected margins which are monitored regularly by project managers. |
Revenue recognition |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
The Company recognises revenue when: |
- the significant risks and rewards of the goods and services provided have transferred to the customer; |
- the amount of revenue can be reliably measured; and |
- it is probable that future economic benefits will flow to the entity. |
The company enters into contracts to provide its services. At the year end all contracts that have not been finalised are reviewed and an estimate of the recoverability of these contracts is determined, based on the expected contract value and work completed to date. |
Ultimate (Commercial Interiors) Limited (Registered number: 04115984) |
Notes to the Financial Statements - continued |
for the year ended 31 March 2023 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Freehold property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
All tangible fixed assets are at cost less accumulated depreciation. 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. |
Assets held under finance lease are depreciated in the same manner as owned assets. |
Renewals, repairs and maintenance are charged to profit and loss during the period in which they are incurred. |
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using a mixture of methods. The depreciation bases are as detailed above. |
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 disposal are determined by comparing the proceeds with the carrying amount and are credited or charged to the income statement. |
Impairment of fixed assets |
At each balance sheet date, the Company reviews the carrying amounts of its property, plant and equipment to determine whether there is any indication that any items of property, plant and equipment have suffered an impairment loss. If any such indications exists, the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss, if any. Where it is not possible to estimate the recoverable amount of the asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. |
If the recoverable amount of an asset is estimated to be less that its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. Impairment loss is recognised as an expense immediately. |
Where an impairment loss subsequently reserves, the carrying amount of the asset is increased to the revised estimate of its recoverable amount that would have been determined (net of depreciation) had no impairment loss been recognised for the asset in the prior years. A reversal of an impairment loss is recognised as income immediately. |
Stocks |
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the 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. |
Ultimate (Commercial Interiors) Limited (Registered number: 04115984) |
Notes to the Financial Statements - continued |
for the year ended 31 March 2023 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
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. |
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. |
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 the profit and loss account over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to the profit and loss account as incurred. |
Assets that are held by the company under leases which transfer to the company substantially all the risks and rewards of ownership are classified as being held under finance leases. Leases which do not transfer substantially all the risks and rewards of ownership to the company are classified as operating leases. |
Assets held under finance leases are initially recognised as assets of the company at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. |
Going concern |
The financial statements have been prepared on the going concern basis which assumes that the group will continue in operation for at least 12 months from the date of approval of these financial statements. |
In reaching their conclusion, the directors have considered their current trading information and their cashflows that cover a period of no less than 12 months from the date of approval. The company has maintained significant liquid balances as demonstrated by the balance sheet position at the year end with with to continual operationally for a period of no less than 12 months from the date of approval of the financial statements. |
After consideration of all factors, the directors continue to adopt the going concern basis in preparing the financial statements. |
Ultimate (Commercial Interiors) Limited (Registered number: 04115984) |
Notes to the Financial Statements - continued |
for the year ended 31 March 2023 |
2. | ACCOUNTING POLICIES - continued |
Debtors |
Trade and other debtors are recognised at the transaction price and thereafter stated at amortised cost using the effective interest method less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases the debtors are stated at cost less impairment losses for bad |
Cash and cash equivalents |
Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. |
In the statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and for an integral part of the Company's cash management. |
Creditors |
Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method unless the effect of the discounting would be immaterial, in which case they were stated at cost. |
Finance costs |
Finance costs are charged to the Income Statement 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. |
Dividends |
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting. |
Ultimate (Commercial Interiors) Limited (Registered number: 04115984) |
Notes to the Financial Statements - continued |
for the year ended 31 March 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The company only enters into basic financial instruments transactions that result in the recognition of the financial assets and liabilities like trade and other accounts receivable and payable, loan from bank and investments in non puttable ordinary shares. |
Debt instruments (other than those repayable or receivable within one year), including loan and other amounts receivable and payable, are initially measured at the present value of the future cash flows and subsequently at amortised rate using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured initially and subsequently, at the undiscounted amount of the cash or other consideration, expected to be paid or received. However if the arrangement of a short term instrument constitute a financing transaction, like the payment of a trade debts deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an out right short term loan not at market rate of interest, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at the amortised cost. |
Financial assets that are measured at cost and amortised cost are assessed at each of the reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit and loss. |
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. |
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and the best estimate, which is an approximation of the amount the company would receive for the asset if it were to be sold at the reporting date. |
Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
31.3.23 | 31.3.22 |
£ | £ |
An analysis of turnover by geographical market is given below: |
31.3.23 | 31.3.22 |
£ | £ |
United Kingdom |
Ultimate (Commercial Interiors) Limited (Registered number: 04115984) |
Notes to the Financial Statements - continued |
for the year ended 31 March 2023 |
4. | EMPLOYEES AND DIRECTORS |
31.3.23 | 31.3.22 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
31.3.23 | 31.3.22 |
Direct | 9 | 8 |
Administrative | 30 | 24 |
31.3.23 | 31.3.22 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
31.3.23 | 31.3.22 |
£ | £ |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Loss/(profit) on disposal of fixed assets | ( |
) |
Audit Fees |
Foreign exchange differences | ( |
) |
Auditors remuneration - non audit services |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.3.23 | 31.3.22 |
£ | £ |
Bank loan interest |
Other interest |
Hire purchase |
Ultimate (Commercial Interiors) Limited (Registered number: 04115984) |
Notes to the Financial Statements - continued |
for the year ended 31 March 2023 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.3.23 | 31.3.22 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax | ( |
) |
Tax on profit |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
31.3.23 | 31.3.22 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2022 - |
Effects of: |
Expenses not deductible for tax purposes |
Utilisation of tax losses | ( |
) |
Depreciation on non-qualifying assets | 866 | 838 |
Enhanced capital allowances | (10,409 | ) | (3,836 | ) |
Change in deferred tax rate | 29,321 | - |
Corporation tax repaid | - | 40,706 |
Total tax charge | 78,508 | 220,022 |
Factors affecting future tax charges |
In the budget on the 14 October 2022, the Chancellor announced that the rate of corporation tax would increase from its current rate of 19% to 25% with effect from 1 April 2023. The rate will remain at 19% until that date. This amendment has now been substantively enacted and will increase the amount of corporation tax payable in the future and therefore a rate of 25% has been used in calculating deferred tax this year. |
8. | DIVIDENDS |
31.3.23 | 31.3.22 |
£ | £ |
Ordinary 1 shares of £1 each |
Interim |
Ordinary 2 shares of £1 each |
Interim |
Ordinary 3 shares of £1 each |
Interim |
Ultimate (Commercial Interiors) Limited (Registered number: 04115984) |
Notes to the Financial Statements - continued |
for the year ended 31 March 2023 |
9. | GOVERNMENT GRANTS |
During the year the company received the following government grants in relation to Covid 19 |
31.3.23 | 31.3.22 |
£ | £ |
Coronavirus Job Retention Scheme | - | 1,708 |
10. | TANGIBLE FIXED ASSETS |
Fixtures |
Freehold | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
COST |
At 1 April 2022 |
Additions |
Disposals | ( |
) |
Impairments | (470,462 | ) | - | - |
At 31 March 2023 |
DEPRECIATION |
At 1 April 2022 |
Charge for year |
Eliminated on disposal | ( |
) |
At 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 April 2022 |
Additions |
Disposals | ( |
) | ( |
) |
Impairments | - | - | (470,462 | ) |
At 31 March 2023 |
DEPRECIATION |
At 1 April 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
Ultimate (Commercial Interiors) Limited (Registered number: 04115984) |
Notes to the Financial Statements - continued |
for the year ended 31 March 2023 |
10. | TANGIBLE FIXED ASSETS - continued |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and | Motor |
machinery | vehicles | Totals |
£ | £ | £ |
COST |
At 1 April 2022 |
and 31 March 2023 |
DEPRECIATION |
At 1 April 2022 |
Charge for year |
At 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
11. | STOCKS |
31.3.23 | 31.3.22 |
£ | £ |
Stocks |
Work-in-progress |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.3.23 | 31.3.22 |
£ | £ |
Trade debtors |
Amounts due on contracts | 746,306 | 444,958 |
Other debtors |
Prepayments |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.3.23 | 31.3.22 |
£ | £ |
Bank loans and overdrafts (see note 15) |
Hire purchase contracts (see note 16) |
Trade creditors |
Tax |
Social security and other taxes |
VAT | 466,713 | 877,019 |
Other creditors |
Directors' current accounts | 13,272 | 21,182 |
Accrued expenses |
Ultimate (Commercial Interiors) Limited (Registered number: 04115984) |
Notes to the Financial Statements - continued |
for the year ended 31 March 2023 |
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
31.3.23 | 31.3.22 |
£ | £ |
Bank loans (see note 15) |
Hire purchase contracts (see note 16) |
15. | LOANS |
An analysis of the maturity of loans is given below: |
31.3.23 | 31.3.22 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
16. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
31.3.23 | 31.3.22 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable operating | leases |
31.3.23 | 31.3.22 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
Ultimate (Commercial Interiors) Limited (Registered number: 04115984) |
Notes to the Financial Statements - continued |
for the year ended 31 March 2023 |
17. | SECURED DEBTS |
The following secured debts are included within creditors: |
31.3.23 | 31.3.22 |
£ | £ |
Bank loans |
Hire purchase contracts | 29,974 | 37,153 |
Net obligation under hire purchase contracts are secured by fixed charges on the assets concerned. |
The bank loan is secured by Debenture and by a first legal charge over the Company's Freehold Property. |
18. | PROVISIONS FOR LIABILITIES |
31.3.23 | 31.3.22 |
£ | £ |
Deferred tax | 122,172 | 169,397 |
Deferred |
tax |
£ |
Balance at 1 April 2022 |
Provided during year | ( |
) |
Accelerated capital allowances |
Balance at 31 March 2023 |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.3.23 | 31.3.22 |
value: | £ | £ |
Ordinary 1 | £1 | 40 | 40 |
Ordinary 2 | £1 | 40 | 40 |
Ordinary 3 | £1 | 20 | 20 |
100 | 100 |
In 2018 EMI share options were granted to 3 employees. Each employee was granted 1 ordinary share of £1 each, with an exercise price of £3,094.22.The options will lapse if not exercised within 10 years. |
The shares have attached to them full rights to receive notice of, attend vote at general meetings. |
One share carries one vote, and full rights to be dividends and capital distributions (including upon , winding up) |
Ultimate (Commercial Interiors) Limited (Registered number: 04115984) |
Notes to the Financial Statements - continued |
for the year ended 31 March 2023 |
20. | RESERVES |
Retained | Share | Other |
earnings | premium | reserves | Totals |
£ | £ | £ | £ |
At 1 April 2022 | 2,425,499 |
Profit for the year |
Dividends | ( |
) | ( |
) |
Share option reserve | (9,283 | ) | - | 9,283 | - |
At 31 March 2023 | 2,308,484 |
21. | PENSION COMMITMENTS |
The company operates a defined contribution pension scheme. During the year £252,336 (2022: £63,782) has been charged to the profit and loss account in respect of pension contributions. At the balance sheet date, there were outstanding contributions of £9,469 (2022: £7,598). |
22. | ULTIMATE PARENT COMPANY |
During the year the ultimate controlling parties were M Hickey and M Naisbitt. |
Post year end a management buyout took place and the structure of the business changed (see note post balance sheet events). |
The ultimate parent company is now Ultimate Interiors Group LTD, which in turn is under the control of D Platt. |
23. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
At the year end, included within creditors is an amount of £13,272 (2022: £21,182) due to the directors. |
The amounts advanced during the year totalled £408,410 (2022: £371,256) and the amounts repaid in the year totalled £400,500 (2022: £351,583). |
24. | RELATED PARTY DISCLOSURES |
During the year, a total of key management personnel compensation of £ |
25. | POST BALANCE SHEET EVENTS |
Following the financial year, a Management Buyout (MBO) has been finalised by senior members of the company's management team, on the 31 May 2023. To facilitate the MBO the MBO team became shareholders in Ultimate Interiors Group LTD which purchased 100% of the share capital in Ultimate (Commercial Interiors) Limited. |