REGISTERED NUMBER: 06209568 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTOR AND |
AUDITED CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JANUARY 2023 |
FOR |
TREMORFA GROUP LIMITED |
REGISTERED NUMBER: 06209568 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTOR AND |
AUDITED CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JANUARY 2023 |
FOR |
TREMORFA GROUP LIMITED |
TREMORFA GROUP | LIMITED (REGISTERED NUMBER: 06209568) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JANUARY 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Director | 3 |
Report of the Independent Auditors | 5 |
Consolidated Statement of Income and Retained Earnings |
9 |
Consolidated Statement of Financial Position | 10 |
Company Statement of Financial Position | 11 |
Consolidated Statement of Cash Flows | 12 |
Notes to the Consolidated Statement of Cash Flows | 13 |
Notes to the Consolidated Financial Statements | 15 |
TREMORFA GROUP | LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 JANUARY 2023 |
DIRECTOR: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
(Statutory Auditor) |
8th Floor Becket House |
36 Old Jewry |
London |
EC2R 8DD |
TREMORFA GROUP | LIMITED (REGISTERED NUMBER: 06209568) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 JANUARY 2023 |
The director presents his strategic report of the company and the group for the year ended 31 January 2023. |
Tremorfa Group Limited is a leading company within South Wales offering facilities management and the installation and maintenance of the following products and services: |
Electrical |
Mechanical |
Fire & Security |
CCTV |
Process Control |
Information Systems |
The Group also operates a Wedding Venue & Health Club through its subsidiary company Tremorfa Property Ltd. |
REVIEW OF BUSINESS |
We aim to present a balanced and comprehensive review of the development and performance of the company during the year and its position at the year end. Our review is consistent with the size and nature of our business in the context of the risks and uncertainties we face. |
We consider that our key performance indicators are those that communicate the financial performance and strength of the group, being turnover, gross and operating margin, and return on capital employed. |
2023 | 2022 |
£ | £ |
Turnover | 9,578,564 | 8,767,490 |
Gross Margin | 2,814,616 | 2,318,483 |
Operating Profit | 595,911 | 359,549 |
Capital Employed | 4,549,752 | 4,144,672 |
Return on Capital Employed | 13.1% | 8.67% |
PRINCIPAL RISKS AND UNCERTAINTIES |
As for many businesses the environment in which we operate has been and continues to be challenging. |
We recognise that some of our business maybe lost due to aggressive pricing from some of our competitors seeking to advance on our market share. We therefore continue to enhance customer care, quality and service delivery in order to achieve optimum overall value for money for our customers. |
We are continuously aware that any business may be subject to unforeseen events and with this in mind our business strategy and development is aimed at minimising the effects of such events. |
ON BEHALF OF THE BOARD: |
TREMORFA GROUP | LIMITED (REGISTERED NUMBER: 06209568) |
REPORT OF THE DIRECTOR |
FOR THE YEAR ENDED 31 JANUARY 2023 |
The director presents his report with the financial statements of the company and the group for the year ended 31 January 2023. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 January 2023. |
FUTURE DEVELOPMENTS |
Tremorfa Property Ltd |
The Panaca Health Club continues to operate in a challenging market dealing with member retention due to the cost-of-living crisis and escalating utility costs. Our focus remains on delivering the best experience for our members possible within the tight budgets that we have available to enhance the club's overall experience. |
St Mellons Country Club is now established as a premier exclusive wedding venue delivering exceptional value for money, external buildings are being developed to compliment the offering. |
Tremorfa Ltd |
Continues to gain more contracts in traditional markets and continues to embrace new technologies to enhance the TASICCA brand and traditional systems. Customer service remains our priority together with enhanced training and safe working conditions. |
DIRECTORS |
Other changes in directors holding office are as follows: |
DISCLOSURES IN THE STRATEGIC REPORT |
Disclosures required under Schedule 7 have been disclosed in the Strategic Report in accordance with |
s.414C(11) of the Companies Act 2006. |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations. |
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is 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 director is 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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. |
TREMORFA GROUP | LIMITED (REGISTERED NUMBER: 06209568) |
REPORT OF THE DIRECTOR |
FOR THE YEAR ENDED 31 JANUARY 2023 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the director is 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 he 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, Xeinadin Audit 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 |
TREMORFA GROUP | LIMITED |
Opinion |
We have audited the financial statements of Tremorfa Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 January 2023 which comprise the Consolidated Statement of Income and Retained Earnings, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, 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 director's 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 director with respect to going concern are described in the relevant sections of this report. |
Other information |
The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, 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 |
TREMORFA GROUP | 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 Director 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 Director 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 Director. |
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 director's remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of director |
As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is 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 director determines 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 director is 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 director either intends to liquidate the group or the parent company or to cease operations, or has no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
TREMORFA GROUP | LIMITED |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
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 group's principal activity which is that of mechanical and electrical engineering; |
- 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, data protection, anti-bribery, employment, environmental and health and safety legislation; |
- We assessed the extent of the compliance with the laws and regulations identified above by making enquiries of management and inspecting any legal correspondence; and |
- The laws and regulations identified 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 group's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
- Making enquires of the directors and management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; |
- Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and |
- Understanding the design of the company's remuneration policies. |
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 the 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 disclosure to underlying supporting documentation; |
- Enquiring of management as to actual and potential litigation and claims; and |
- Reviewing correspondence relevant to tax and legal matters where available. |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
TREMORFA GROUP | LIMITED |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
(Statutory Auditor) |
8th Floor Becket House |
36 Old Jewry |
London |
EC2R 8DD |
TREMORFA GROUP | LIMITED (REGISTERED NUMBER: 06209568) |
CONSOLIDATED STATEMENT OF INCOME AND RETAINED EARNINGS |
FOR THE YEAR ENDED 31 JANUARY 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 3 | 9,578,564 | 8,767,490 |
Cost of sales | 6,763,948 | 6,449,007 |
GROSS PROFIT | 2,814,616 | 2,318,483 |
Administrative expenses | 2,238,890 | 2,227,488 |
575,726 | 90,995 |
Other operating income | 4 | 20,185 | 268,554 |
OPERATING PROFIT | 6 | 595,911 | 359,549 |
Interest receivable and similar income | 1,174 | 39 |
597,085 | 359,588 |
Interest payable and similar expenses | 7 | 81,720 | 56,522 |
PROFIT BEFORE TAXATION | 515,365 | 303,066 |
Tax on profit | 8 | 117,593 | 18,854 |
PROFIT FOR THE FINANCIAL YEAR |
Retained earnings at beginning of year | 1,528,287 | 1,244,075 |
RETAINED EARNINGS FOR THE GROUP AT END OF YEAR |
1,926,059 |
1,528,287 |
Profit attributable to: |
Owners of the parent | 397,772 | 284,212 |
TREMORFA GROUP | LIMITED (REGISTERED NUMBER: 06209568) |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
31 JANUARY 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 | 4,173,019 | 4,116,000 |
Investments | 11 | - | - |
4,173,019 | 4,116,000 |
CURRENT ASSETS |
Stocks | 12 | 1,363 | 1,950 |
Debtors | 13 | 2,205,011 | 1,526,969 |
Cash at bank and in hand | 813,894 | 978,389 |
3,020,268 | 2,507,308 |
CREDITORS |
Amounts falling due within one year | 14 | 2,643,535 | 2,478,636 |
NET CURRENT ASSETS | 376,733 | 28,672 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
4,549,752 |
4,144,672 |
CREDITORS |
Amounts falling due after more than one year |
15 |
(1,503,618 |
) |
(1,576,385 |
) |
PROVISIONS FOR LIABILITIES | 19 | (258,675 | ) | (178,600 | ) |
NET ASSETS | 2,787,459 | 2,389,687 |
CAPITAL AND RESERVES |
Called up share capital | 20 | 99,500 | 99,500 |
Revaluation reserve | 21 | 761,400 | 761,400 |
Capital redemption reserve | 21 | 500 | 500 |
Retained earnings | 21 | 1,926,059 | 1,528,287 |
SHAREHOLDERS' FUNDS | 2,787,459 | 2,389,687 |
The financial statements were approved by the director and authorised for issue on 28 September 2023 and were signed by: |
M W Hosken - Director |
TREMORFA GROUP | LIMITED (REGISTERED NUMBER: 06209568) |
COMPANY STATEMENT OF FINANCIAL POSITION |
31 JANUARY 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 |
Investments | 11 |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Share premium | 21 |
Capital redemption reserve | 21 |
Retained earnings | 21 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | - | - |
The financial statements were approved by the director and authorised for issue on |
TREMORFA GROUP | LIMITED (REGISTERED NUMBER: 06209568) |
CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 JANUARY 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | (20,947 | ) | 423,085 |
Interest paid | (68,108 | ) | (50,611 | ) |
Interest element of hire purchase payments paid |
(13,612 |
) |
(5,911 |
) |
Tax paid | 17,949 | - |
Net cash from operating activities | (84,718 | ) | 366,563 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (230,280 | ) | (321,427 | ) |
Sale of tangible fixed assets | 7,915 | 19,226 |
Interest received | 1,174 | 39 |
Net cash from investing activities | (221,191 | ) | (302,162 | ) |
Cash flows from financing activities |
New loans in year | - | 50,000 |
Capital repayments in year | 135,963 | (39,624 | ) |
Amount withdrawn by directors | (200,000 | ) | (60,000 | ) |
Net cash from financing activities | (64,037 | ) | (49,624 | ) |
(Decrease)/increase in cash and cash equivalents | (369,946 | ) | 14,777 |
Cash and cash equivalents at beginning of year |
2 |
978,389 |
963,612 |
Cash and cash equivalents at end of year |
2 |
608,443 |
978,389 |
TREMORFA GROUP | LIMITED (REGISTERED NUMBER: 06209568) |
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 JANUARY 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation | 515,365 | 303,066 |
Depreciation charges | 173,261 | 143,194 |
Profit on disposal of fixed assets | (7,915 | ) | (3,463 | ) |
Amounts recoverable on contracts | 78,237 | 82,378 |
Government grants | - | (266,658 | ) |
Finance costs | 81,720 | 56,522 |
Finance income | (1,174 | ) | (39 | ) |
839,494 | 315,000 |
Decrease/(increase) in stocks | 587 | (360 | ) |
Increase in trade and other debtors | (584,805 | ) | (787,463 | ) |
(Decrease)/increase in trade and other creditors | (276,223 | ) | 895,908 |
Cash generated from operations | (20,947 | ) | 423,085 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 31 January 2023 |
31.1.23 | 1.2.22 |
£ | £ |
Cash and cash equivalents | 813,894 | 978,389 |
Bank overdrafts | (205,451 | ) | - |
608,443 | 978,389 |
Year ended 31 January 2022 |
31.1.22 | 1.2.21 |
£ | £ |
Cash and cash equivalents | 978,389 | 963,612 |
TREMORFA GROUP | LIMITED (REGISTERED NUMBER: 06209568) |
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS |
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 | 978,389 | (164,495 | ) | 813,894 |
Bank overdrafts | - | (205,451 | ) | (205,451 | ) |
978,389 | (369,946 | ) | 608,443 |
Debt |
Finance leases | (230,269 | ) | (135,963 | ) | (366,232 | ) |
Debts falling due within 1 year | (215,887 | ) | (7,738 | ) | (223,625 | ) |
Debts falling due after 1 year | (1,411,131 | ) | 182,044 | (1,229,087 | ) |
(1,857,287 | ) | 38,343 | (1,818,944 | ) |
Total | (878,898 | ) | (331,603 | ) | (1,210,501 | ) |
TREMORFA GROUP | LIMITED (REGISTERED NUMBER: 06209568) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JANUARY 2023 |
1. | STATUTORY INFORMATION |
Tremorfa Group Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The Directors have reviewed and considered the financial position of the Group, taking account of reserves and cash, the 2023-2024 Budget, agreed future contract work and longer term plans, together with its financial and risk management systems. The Directors believe that the Company has sufficient working capital resources to continue to operate for the foreseeable future. Therefore, they continue to adopt the going concern basis of accounting in preparing the Financial Statements. |
Basis of consolidation |
These group accounts are prepared using the acquisition method. |
Turnover |
Turnover represents net invoiced sales of goods and services, excluding value added tax, except in respect of service contracts where turnover is recognised when the group obtains the right to consideration. |
Tangible fixed assets |
Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price, plus any costs directly attributable to bringing the asset to its working condition for intended use. |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. |
Freehold property,excluding freehold land which is not depreciated, is depreciated at 2% per annum on cost when brought into use. |
Plant and machinery etc | -33%, 20% and 10% on cost |
Fixtures and fittings | -10% on cost |
Motor vehicles | -20% on cost |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Financial instruments |
Financial Instruments are recognised initially at transaction price, adjusted for transaction costs. |
Subsequent measurement is at amortised cost. All financial instruments are classified as basic. |
TREMORFA GROUP | LIMITED (REGISTERED NUMBER: 06209568) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2023 |
2. | ACCOUNTING POLICIES - continued |
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 statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
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. |
Amounts recoverable under contracts |
Profit is recognised on long-term contracts, if the final outcome can be assessed with reasonable certainty, by including in the profit and loss account turnover and related costs as contract activity progresses. Turnover is calculated as that proportion of total contract value which costs to date bear to total expected costs for that contract. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the principal activities of the group. |
An analysis of turnover by class of business is given below: |
2023 | 2022 |
£ | £ |
Building Services | 8,937,954 | 8,454,886 |
Wedding Venue & Health Club | 640,610 | 312,604 |
9,578,564 | 8,767,490 |
TREMORFA GROUP | LIMITED (REGISTERED NUMBER: 06209568) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2023 |
4. | OTHER OPERATING INCOME |
2023 | 2022 |
£ | £ |
Sundry receipts | 20,185 | 1,896 |
Government grants | - | 266,658 |
20,185 | 268,554 |
5. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 2,623,076 | 2,660,472 |
Social security costs | 262,704 | 263,313 |
Other pension costs | 48,204 | 63,464 |
2,933,984 | 2,987,249 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Management | 2 | 2 |
Administration | 32 | 24 |
Direct labour | 82 | 72 |
2023 | 2022 |
£ | £ |
Directors' remuneration | 36,441 | 50,049 |
Directors' pension contributions to money purchase schemes | - | 477 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | - | 1 |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Hire of plant and machinery | 98,726 | 115,240 |
Depreciation - owned assets | 173,261 | 143,195 |
Profit on disposal of fixed assets | (7,915 | ) | (3,463 | ) |
Auditors' remuneration | 4,000 | 4,000 |
Auditors' remn - subsidiaries | 9,000 | 9,000 |
TREMORFA GROUP | LIMITED (REGISTERED NUMBER: 06209568) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2023 |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank loan interest | 26,130 | 6,060 |
Loan | 41,978 | 44,551 |
Hire purchase | 13,612 | 5,911 |
81,720 | 56,522 |
8. | 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 | 54,659 | 18,854 |
Adjustment for prior years | (17,141 | ) | - |
Total current tax | 37,518 | 18,854 |
Deferred tax | 80,075 | - |
Tax on profit | 117,593 | 18,854 |
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: |
2023 | 2022 |
£ | £ |
Profit before tax | 515,365 | 303,066 |
Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2022 - 19 %) |
97,919 |
57,583 |
Effects of: |
Expenses not deductible for tax purposes | 259 | 158 |
Income not taxable for tax purposes | (1,504 | ) | (665 | ) |
Capital allowances in excess of depreciation | (24,643 | ) | (19,445 | ) |
Utilisation of tax losses | (17,372 | ) | (18,777 | ) |
Adjustments to tax charge in respect of previous periods | (17,141 | ) | - |
Deferred tax | 80,075 | - |
Total tax charge | 117,593 | 18,854 |
9. | 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. |
TREMORFA GROUP | LIMITED (REGISTERED NUMBER: 06209568) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2023 |
10. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Freehold | Plant and | and | Motor |
property | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST OR VALUATION |
At 1 February 2022 | 3,715,490 | 302,116 | 565,870 | 526,721 | 5,110,197 |
Additions | 8,500 | 219 | 2,381 | 219,180 | 230,280 |
Disposals | - | - | - | (114,741 | ) | (114,741 | ) |
At 31 January 2023 | 3,723,990 | 302,335 | 568,251 | 631,160 | 5,225,736 |
DEPRECIATION |
At 1 February 2022 | 62,406 | 263,859 | 371,916 | 296,016 | 994,197 |
Charge for year | 20,480 | 22,277 | 50,142 | 80,362 | 173,261 |
Eliminated on disposal | - | - | - | (114,741 | ) | (114,741 | ) |
At 31 January 2023 | 82,886 | 286,136 | 422,058 | 261,637 | 1,052,717 |
NET BOOK VALUE |
At 31 January 2023 | 3,641,104 | 16,199 | 146,193 | 369,523 | 4,173,019 |
At 31 January 2022 | 3,653,084 | 38,257 | 193,954 | 230,705 | 4,116,000 |
Included in cost or valuation of land and buildings is freehold land of £1,179,778 (2022 - £1,179,778) which is not depreciated. |
Cost or valuation at 31 January 2023 is represented by: |
Fixtures |
Freehold | Plant and | and | Motor |
property | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
Valuation in 2018 | 940,000 | - | - | - | 940,000 |
Cost | 2,783,990 | 302,335 | 568,251 | 631,160 | 4,285,736 |
3,723,990 | 302,335 | 568,251 | 631,160 | 5,225,736 |
Included in fixed assets are assets held under hire purchase contracts. The net book value of these assets is £383,162 (2022: £186,229). The depreciation charge for the year for assets on hire purchase was £35,640 (2022: £21,574) |
TREMORFA GROUP | LIMITED (REGISTERED NUMBER: 06209568) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2023 |
11. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 February 2022 |
and 31 January 2023 |
NET BOOK VALUE |
At 31 January 2023 |
At 31 January 2022 |
The group or the company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
Subsidiaries |
Tremorfa Limited |
Registered office: The Terrace Suite, St Mellons Hotel, Castleton, Cardiff CF3 2XR |
Nature of business: Electrical Installation and maintenance |
% |
Class of shares: | holding |
Ordinary £1 | 100.00 |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves | 2,002,970 | 1,582,399 |
Profit for the year | 420,571 | 247,753 |
Tremorfa Property Limited |
Registered office: The Terrace Suite, St Mellons Hotel, Castleton, Cardiff CF3 2XR |
Nature of business: Hotel |
% |
Class of shares: | holding |
Ordinary £1 | 100.00 |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves | 875,341 | 898,143 |
(Loss)/profit for the year | (22,799 | ) | 36,460 |
12. | STOCKS |
Group |
2023 | 2022 |
£ | £ |
Goods for resale | 1,363 | 1,950 |
TREMORFA GROUP | LIMITED (REGISTERED NUMBER: 06209568) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2023 |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group |
2023 | 2022 |
£ | £ |
Trade debtors | 1,801,700 | 1,234,180 |
Bad debt provision | - | (15,420 | ) |
Amounts recoverable on contract | 374,858 | 296,621 |
Other debtors | 116 | - |
Directors' current accounts | 15,000 | - |
Prepayments | 13,337 | 11,588 |
2,205,011 | 1,526,969 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 16) | 215,362 | 9,666 |
Other loans (see note 16) | 213,714 | 206,221 |
Hire purchase contracts (see note 17) | 91,701 | 65,015 |
Trade creditors | 952,529 | 849,154 |
Amounts owed to group undertakings | - | - |
Tax | 74,321 | 18,854 |
Social security and other taxes | 68,865 | 73,167 |
VAT | 137,346 | 238,289 | - | - |
Other creditors | 104,878 | 104,570 |
Directors' current accounts | - | 185,000 | - | - |
Accruals and deferred income | 138,768 | 32,195 |
Accrued expenses | 646,051 | 696,505 |
2,643,535 | 2,478,636 |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2023 | 2022 |
£ | £ |
Bank loans (see note 16) | 24,112 | 34,035 |
Other loans (see note 16) | 1,204,975 | 1,377,096 |
Hire purchase contracts (see note 17) | 274,531 | 165,254 |
1,503,618 | 1,576,385 |
TREMORFA GROUP | LIMITED (REGISTERED NUMBER: 06209568) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2023 |
16. | 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 | 205,451 | - |
Bank loans | 9,911 | 9,666 |
Other loans | 137,788 | 137,788 |
Other loans < 1 year | 75,926 | 68,433 |
429,076 | 215,887 |
Amounts falling due between one and | two years: |
Bank loans - 1-2 years | 10,162 | 9,911 |
Other loans - 1-2 years | 222,187 | 213,462 |
232,349 | 223,373 |
Amounts falling due between two and | five years: |
Bank loans - 2-5 years | 13,950 | 24,124 |
Other loans - 2-5 years | 490,170 | 573,838 |
504,120 | 597,962 |
Amounts falling due in more than five | years: |
Repayable by instalments |
Other loans more 5yrs instal | 492,618 | 589,796 |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year | 91,701 | 65,015 |
Between one and five years | 274,531 | 165,254 |
366,232 | 230,269 |
TREMORFA GROUP | LIMITED (REGISTERED NUMBER: 06209568) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2023 |
17. | LEASING AGREEMENTS - continued |
Group |
Non-cancellable | operating leases |
2023 | 2022 |
£ | £ |
Within one year | 17,199 | 32,009 |
Between one and five years | 17,999 | 17,999 |
35,198 | 50,008 |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2023 | 2022 |
£ | £ |
Hire purchase contracts | 366,232 | 230,269 |
Bank loans | 1,215,580 | 1,278,734 |
Funding Circle loan | 237,132 | 304,582 |
1,818,944 | 1,813,585 |
The bank loan with HSBC is secured by a debenture creating a fixed and floating charge over the assets of the company both present and future. In addition there is a first legal charge over St Mellons Hotel & Country Club, Marshfield, Newport and an unlimited multilateral guarantee given by Tremorfa Property Limited, Tremorfa Limited, Tremorfa Group Limited and Tasicca Limited. |
The Funding Circle Loan is secured via a personal guarantee from Mr M Hosken, who is a director of the company. |
Obligations under hire purchase contracts are secured on the assets to which they relate. |
19. | PROVISIONS FOR LIABILITIES |
Group |
2023 | 2022 |
£ | £ |
Deferred tax | 258,675 | 178,600 |
Group |
Deferred |
tax |
£ |
Balance at 1 February 2022 | 178,600 |
Charge to Income Statement during year | 80,075 |
Balance at 31 January 2023 | 258,675 |
TREMORFA GROUP | LIMITED (REGISTERED NUMBER: 06209568) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2023 |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 99,500 | 99,500 |
21. | RESERVES |
Group |
Capital |
Retained | Revaluation | redemption |
earnings | reserve | reserve | Totals |
£ | £ | £ | £ |
At 1 February 2022 | 1,528,287 | 761,400 | 500 | 2,290,187 |
Profit for the year | 397,772 | 397,772 |
At 31 January 2023 | 1,926,059 | 761,400 | 500 | 2,687,959 |
Company |
Capital |
Retained | Share | redemption |
earnings | premium | reserve | Totals |
£ | £ | £ | £ |
At 1 February 2022 | 507,493 |
Profit for the year |
At 31 January 2023 | 507,493 |
22. | PENSION COMMITMENTS |
The group operates a defined contribution pension scheme. The assets are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £48,204 (2022: £63,464). |
23. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to a director subsisted during the years ended 31 January 2023 and 31 January 2022: |
2023 | 2022 |
£ | £ |
M W Hosken |
Balance outstanding at start of year | - | - |
Amounts advanced | 15,000 | - |
Amounts repaid | - | - |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | 15,000 | - |
TREMORFA GROUP | LIMITED (REGISTERED NUMBER: 06209568) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2023 |
24. | RELATED PARTY DISCLOSURES |
At the balance sheet date £nil (2022: £185,000) was owed to Mr M Hosken. No interest was |
charged on this loan. |
During the year, a total of key management personnel compensation of £ 80,930 (2022 - £ 32,920 ) was paid. |
25. | ULTIMATE CONTROLLING PARTY |
The group is controlled by Mr M Hosken, director and majority shareholder. |
26. | EXEMPTION FROM AUDIT BY PARENT GUARANTEE |
The following subsidiaries, included in the consolidated accounts, are exempt from the requirements of Companies Act 2006 relating to audit of individual accounts, by virtue of guarantee provided by the parent company, Tremorfa Group Limited under Section 479A of the Companies Act 2006. |
Company Name | Registered Number |
Tremorfa Property Limited | 09094834 |