Company registration number 03811782 (England and Wales)
FLINT CONSULTING LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
FLINT CONSULTING LIMITED
COMPANY INFORMATION
Directors
N P Burbidge
P L Blake
I D M Ashford
A Goodchild
Secretary
R Smith
Company number
03811782
Registered office
Bre Site Building 3
Bucknalls Lane
Garston
Watford
Herts
WD25 9XX
Auditors
Harwood Hutton Limited
22 Wycombe End
Beaconsfield
Buckinghamshire
HP9 1NB
Business address
Bre Site Building 3
Bucknalls Lane
Garston
Watford
Herts
WD25 9XX
FLINT CONSULTING LIMITED
CONTENTS
Page
Strategic report
1 - 4
Directors' report
5 - 6
Independent auditor's report
7 - 9
Profit and loss account
10
Group statement of comprehensive income
11
Group balance sheet
12
Company balance sheet
13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Company statement of cash flows
17
Notes to the financial statements
18 - 37
FLINT CONSULTING LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 1 -
The directors present the strategic report for the year ended 31 December 2022.
Fair review of the business
During the year-ended 31st December 2022, a number of significant changes took place at Flint Consulting Limited (Flint). Most significantly, in November 2022, the UK trade of Flint Consulting Limited was demerged into a new entity (Flint UK Technology Services Limited) through a capital reduction demerger. The UK business was subsequently sold into an Employee Ownership Trust for the benefit of the UK employees. As part of this process, a dividend in specie was declared for £2.8m, reducing the net assets of Flint Consulting Limited to £1m.
Furthermore, following the Russian invasion of Ukraine in February 2022, Flint took the decision to wind down the operations of its Russian subsidiary. The entity is currently dormant and is expected to remain so until the formal closure process has been completed.
Significant challenges persisted in the company’s Middle-Eastern operations, leading to a decision by the board to adjust how it accounts for the Saudi associate from the equity method to the cost method. As a result Flint no longer recognises their share of the Saudi associate’s profits as a separate line within the group profit and loss.
Having spun off the UK business. the board of Flint are focussed on developing its international business. This includes growing the revenue of its subsidiaries, as well as securing revenue directly from its global customers. The company had considerable success in both of these areas during 2022 leading up to the demerger, and this continued into 2023. Turnover for the group increased 7% to £49.2m, with profit after tax decreasing 7.4% to £2.7m.
The board has an optimistic outlook for the future of the Group and anticipate significant growth will continue from international business in areas where the company intends to expand into, as well as from existing geographies.
Principal risks and uncertainties
Given the size of the company, the directors have not delegated the responsibility of monitoring financial risk management, and the company’s finance department implements the policies set by the board of directors.
The department has implemented policies that require appropriate credit checks on potential customers before accounts are accepted. The amount of exposure to any individual debtor is limited and is assessed continually by the board and management.
The company has interest bearing assets and liabilities. Interest bearing assets include cash balances that only earn interest at a floating rate. Interest bearing liabilities include hire purchase contracts, bank overdrafts and debt factoring arrangements. The company policies ensure that interest can be paid by the company when it falls due.
Rising interest rates increase the cost of borrowing for the company. As a result, the company has increased its focus on working capital management to reduce the borrowing required as much as possible.
Expenditure made by the company is authorised prior to it being made by the management, in order to ensure that goods and services are not obtained at a higher price than necessary.
As an international group the company is exposed to currency fluctuations. The business manages this by matching the currency of income with related expenditure as far as possible.
Development and performance
The directors have set certain key targets for sales development and profitability and are cognisant of the
challenges faced by the company operating in the ICT sector with its inherently rapid change. The directors review
the business at a local and an international level to ensure developments at an entity level are given due
consideration, while at the same time taking advantage of opportunities that present themselves at a global level.
The directors are actively reviewing strategic options that harness the value of the significant geographical reach the
business has to develop a more effective, streamlined and profitable group.
FLINT CONSULTING LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -
Environmental and social matters
The Group is committed to being a responsible corporate citizen in managing the impact of our business activities on the environment for all stakeholders including clients, colleagues and the wider community. We seek to
minimise our environmental footprint
provide a professional and supportive workplace
attract develop and retain people from diverse backgrounds
deliver the best possible service to all our clients.
To bolster sustainability throughout the Group, we aim to engage our colleagues and stakeholders, including our broader communities, to consider sustainability alongside other key business drivers.
The directors have reviewed the required energy and carbon reporting for the year ended 31 December 2022 and have concluded that its inclusion in this report is impractical. The directors are committed to improving collation of this data to aid future reporting.
Anti-bribery policy
The Group values its reputation and is committed to maintain the highest level of ethical standards in the conduct of its business affairs. The actions and conduct of our staff as well as others acting on the firm’s behalf are key to maintaining these standard. The Group does not tolerate bribery or corruption in any form.
The firm prohibits the offering, giving, solicitation or the acceptance of any bribe or corrupt inducement, whether in cash or in any other form:
To or from any person or company wherever located, whether a public official or public body, or a private person or company
By any individual employee, director, agent, consultant, contractor or other person or body acting on the firm’s behalf
To gain any commercial, contractual or other advantage for the firm in any way which is unethical or to gain any personal advantage for the individual or anyone connected to the individual.
Our policies cover reporting requirement, restrictions on gifts and hospitality and facilitation payment, our approach to politically exposed persons, information security, our procurement approach and charitable gifts and donations.
Respect for human rights
The Group acknowledges its responsibilities in relation to tackling modern slavery and commits to complying with the provisions in the Modern Slavery Act 2015. The Group understands that this requires an ongoing review of both its internal practices in relation to its labour force and, additionally, its supply chains.
The Group does not enter into business with any other Group, in the United Kingdom or abroad, which knowingly supports or is found to involve itself in slavery, servitude and forced or compulsory labour.
No labour provided to the Group in the pursuance of the provision of its own services is obtained by means of slavery or human trafficking. The Group strictly adheres to the minimum standards required in relation to its responsibilities under relevant employment legislation.
The Group carries out due diligence processes in relation to ensuring slavery and/or human trafficking does not take place in its Group or supply chains, including conducting a review of the controls of its suppliers.
The Group has not, to its knowledge, conducted any business with another Group which has been found to have involved itself with modern slavery.
In accordance with section 54(4) of the Modern Slavery Act 2015, the Group has taken the following steps to ensure that modern slavery is not taking place:
reviewing supplier contracts to include termination powers in the event that the supplier is, or is suspected, to be involved in modern slavery,
taken actions to embed a zero-tolerance policy towards modern slavery.
FLINT CONSULTING LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 3 -
Key performance indicators
Group turnover increased to £49,241,842 for the year, from £46,022,439 in the previous period.
Group profit before tax decreased to £3,326,247 for the year, from £3,345,495 in the previous period.
Group gross profit margins decreased to 16.76% for the year, from 17.74% in the previous period.
Section 172(1) Statement
This section comprises our Section 172(1) Statement and should be read in conjunction with the strategic report.
The directors of the Company have acted in a way they considered, in good faith, to be most likely to promote the success of the Company for the benefit of the members as a whole. The majority of the members of the parent company had a position on the Flint Consulting Limited board, and were therefore invested in promoting the long-term success of the company. In making their decisions they had regard, among other things to:
• the likely long-term consequences
• the impact on business relationships with customers, associates and others
• the effect on the wider community and the environment
• the reputation of the business
Values
The Flint Consulting Group has three core values – professionalism, innovation and caring. These values drive the way Flint and its board interact with each other, our clients, partners, associates, vendors and everyone we else come into contact with through our endeavours. Defined by the board of Flint Consulting Limited, they are used by all of our employees to guide them in their everyday activities.
Governance and Control
The governance and control framework in place across the Flint Group ensures that our core values are upheld and that decisions made by the board of the Company give due regard to the long-term impact of those decisions, the interests of the Group and Company’s stakeholders, the impact of the Company’s activities on the community, the environment and the Company’s reputation. The key stakeholders which are considered by the Board when making decisions include our people, clients and shareholders, as well as suppliers, the environment and the communities around us.
Key Board Considerations
During the year, the Board addressed, amongst other things, the following specific issues:
Covid-19 and its ongoing impact on the safety of employees, the wider community and the financial impact on Flint.
How the group is structured to enable members to realise value from their investments, while creating secure and prosperous long-term opportunities for employees.
The inappropriateness of trading in Russia following its invasion of Ukraine, and how best to withdraw from operations there.
Challenges in getting clarity on multiple issues surrounding the Saudi entity and its operations.
The merits and drawbacks of separating the UK trade from the Flint group
Stakeholder Engagement
The directors of the Company have considered the interests of a wide group of stakeholders in their decision-making, with regular communication of decisions made and company performance shared with employees. Feedback from employees is proactively sought, and customers are frequently engaged with to ensure harmonious relationships are maintained.
FLINT CONSULTING LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 4 -
P L Blake
Director
27 October 2023
FLINT CONSULTING LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 5 -
The directors present their annual report and financial statements for the year ended 31 December 2022.
Principal activities
The principal activity of the company continued to be that of telecommunication consultants.
The company has eight subsidiaries; Flint Integration Services Ireland Limited, Flint Limited Liability Company (Russia), Flint Group Polska, Flint GmbH (Germany), Flint S.I d.o.o (Slovenia), Flint Consulting LLC (Kazakhstan), Flint Consulting Inc (USA) and Flint BT Ltd. STi. (Turkey) all of which have the same principal activity as the company.
The company has four associates; Flint South Africa Pty Limited, Flint Consulting Africa Ltd, Flint United Arab Emirates and Flint IT Services Canada Ltd, all of which have the same principal activity as the company.
The company also has a branch in Italy with the same principal activity as the company.
Results and dividends
The results for the year are set out on page 10.
Ordinary dividends were paid amounting to £3,383,118. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
K Barker
(Resigned 13 February 2023)
A R Bryant
(Resigned 13 February 2023)
N P Burbidge
G S Moore
(Resigned 13 February 2023)
P L Blake
I D M Ashford
(Appointed 13 February 2023)
A Goodchild
(Appointed 13 February 2023)
Auditor
The auditor, Harwood Hutton Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of directors' responsibilities
The directors are responsible for preparing the Annual Report 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 group and company, 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;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
FLINT CONSULTING LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 6 -
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of financial risk objectives, future developments and disclosures regarding engagement with suppliers, customers and others in a business relationship.
On behalf of the board
P L Blake
Director
27 October 2023
FLINT CONSULTING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FLINT CONSULTING LIMITED
- 7 -
Opinion
We have audited the financial statements of Flint Consulting Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2022 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including 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 the parent company's affairs as at 31 December 2022 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
FLINT CONSULTING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FLINT CONSULTING LIMITED
- 8 -
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 their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
Arising solely from the limitation on the scope of our work relating to FCSA referred to above:
• we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and
• we were unable to determine whether adequate accounting records have been kept.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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 parent company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
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 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 reviewing legal and professional fee invoices;
we reviewed the minutes of board meetings to identify any references to non-compliance with laws and regulations.
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;
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
FLINT CONSULTING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FLINT CONSULTING LIMITED
- 9 -
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 set out in note 2 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;
reading the minutes of meetings of those charged with governance;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with HMRC, relevant regulators and the company’s legal advisors.
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 is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's 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 an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Keir Singleton
For and on behalf of Harwood Hutton Limited
27 October 2023
Chartered Accountants
Statutory Auditor
22 Wycombe End
Beaconsfield
Buckinghamshire
HP9 1NB
FLINT CONSULTING LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 10 -
Continuing
Discontinued
31 December
Continuing
Discontinued
31 December
operations
operations
2022
operations
operations
2021
Notes
£
£
£
£
£
£
Turnover
3
18,939,382
30,302,460
49,241,842
19,156,686
26,865,753
46,022,439
Cost of sales
(14,529,871)
(26,457,407)
(40,987,278)
(15,012,739)
(22,843,663)
(37,856,402)
Gross profit
4,409,511
3,845,053
8,254,564
4,143,947
4,022,090
8,166,037
Administrative expenses
(3,930,407)
(1,981,980)
(5,912,387)
(3,400,923)
(2,172,883)
(5,573,806)
Other operating income
506,578
-
506,578
107,313
-
107,313
Operating profit
4
985,682
1,863,073
2,848,755
850,337
1,849,207
2,699,544
Share of results of associates and joint ventures
182,180
-
182,180
657,566
-
657,566
Interest receivable and similar income
8
335,688
-
335,688
12,768
239
13,007
Interest payable and similar expenses
9
(11,745)
(4,342)
(16,087)
(23,031)
(1,591)
(24,622)
Amounts written off investments
10
(24,289)
-
(24,289)
-
-
-
Profit before taxation
1,467,516
1,858,731
3,326,247
1,497,640
1,847,855
3,345,495
Tax on profit
11
(369,862)
(293,914)
(663,776)
(319,901)
(150,239)
(470,140)
Profit for the financial year
1,097,654
1,564,817
2,662,471
1,177,739
1,697,616
2,875,355
Profit for the financial year is attributable to:
- Owners of the parent company
2,235,142
2,478,008
- Non-controlling interests
427,329
397,347
2,662,471
2,875,355
FLINT CONSULTING LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022
- 11 -
2022
2021
£
£
Profit for the year
2,662,471
2,875,355
Other comprehensive income
Currency translation gain/(loss) taken to retained earnings
254,224
(121,203)
Total comprehensive income for the year
2,916,695
2,754,152
Total comprehensive income for the year is attributable to:
- Owners of the parent company
2,489,366
2,356,805
- Non-controlling interests
427,329
397,347
2,916,695
2,754,152
FLINT CONSULTING LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2022
31 December 2022
- 12 -
2022
2021
Notes
£
£
£
£
Fixed assets
Goodwill
15
24,289
Negative goodwill
15
(62,719)
Other intangible assets
15
13,967
22,209
Total intangible assets
(48,752)
46,498
Tangible assets
16
211,806
285,739
Investments
17
2,750,115
2,634,349
2,913,169
2,966,586
Current assets
Stocks
142
23
Debtors
20
9,500,364
15,529,622
Cash at bank and in hand
5,615,676
1,677,584
15,116,182
17,207,229
Creditors: amounts falling due within one year
21
(11,890,638)
(13,543,608)
Net current assets
3,225,544
3,663,621
Total assets less current liabilities
6,138,713
6,630,207
Creditors: amounts falling due after more than one year
22
-
(12,997)
Provisions for liabilities
26
-
(12,074)
Net assets
6,138,713
6,605,136
Capital and reserves
Called up share capital
28
80
80
Capital redemption reserve
20
20
Profit and loss reserves
5,007,463
5,901,215
Equity attributable to owners of the parent company
5,007,563
5,901,315
Non-controlling interests
1,131,150
703,821
6,138,713
6,605,136
The accompanying accounting policies and notes form part of these financial statements.
The financial statements were approved by the board of directors and authorised for issue on 27 October 2023 and are signed on its behalf by:
27 October 2023
P L Blake
Director
FLINT CONSULTING LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2022
31 December 2022
- 13 -
2022
2021
Notes
£
£
£
£
Fixed assets
Intangible assets
15
10,663
15,995
Tangible assets
16
8,266
113,398
Investments
17
88,481
112,770
107,410
242,163
Current assets
Debtors
20
7,474,129
13,816,419
Cash at bank and in hand
3,559,166
166,852
11,033,295
13,983,271
Creditors: amounts falling due within one year
21
(10,018,438)
(11,751,963)
Net current assets
1,014,857
2,231,308
Total assets less current liabilities
1,122,267
2,473,471
Creditors: amounts falling due after more than one year
22
(12,997)
Provisions for liabilities
26
(12,074)
Net assets
1,122,267
2,448,400
Capital and reserves
Called up share capital
28
80
80
Capital redemption reserve
20
20
Profit and loss reserves
1,122,167
2,448,300
Total equity
1,122,267
2,448,400
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £2,056,985 (2021 - £1,576,723 ).
The accompanying accounting policies and notes form part of these financial statements.
The financial statements were approved by the board of directors and authorised for issue on 27 October 2023 and are signed on its behalf by:
27 October 2023
P L Blake
Director
Company Registration No. 03811782
FLINT CONSULTING LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 14 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
Balance at 1 January 2021
80
20
4,084,410
4,084,510
306,474
4,390,984
Year ended 31 December 2021:
Profit for the year
-
-
2,478,008
2,478,008
397,347
2,875,355
Other comprehensive income:
Currency translation differences
-
-
(121,203)
(121,203)
-
(121,203)
Total comprehensive income for the year
-
-
2,356,805
2,356,805
397,347
2,754,152
Dividends
13
-
-
(540,000)
(540,000)
-
(540,000)
Balance at 31 December 2021
80
20
5,901,215
5,901,315
703,821
6,605,136
Year ended 31 December 2022:
Profit for the year
-
-
2,235,142
2,235,142
427,329
2,662,471
Other comprehensive income:
Currency translation differences
-
-
254,224
254,224
254,224
Total comprehensive income for the year
-
-
2,489,366
2,489,366
427,329
2,916,695
Dividends
13
-
-
(3,383,118)
(3,383,118)
-
(3,383,118)
Balance at 31 December 2022
80
20
5,007,463
5,007,563
1,131,150
6,138,713
FLINT CONSULTING LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 15 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2021
80
20
1,411,577
1,411,677
Year ended 31 December 2021:
Profit and total comprehensive income for the year
-
-
1,576,723
1,576,723
Dividends
13
-
-
(540,000)
(540,000)
Balance at 31 December 2021
80
20
2,448,300
2,448,400
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
2,056,985
2,056,985
Dividends
13
-
-
(3,383,118)
(3,383,118)
Balance at 31 December 2022
80
20
1,122,167
1,122,267
FLINT CONSULTING LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 16 -
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
31
8,266,360
1,162,257
Interest paid
(10,343)
(22,248)
Income taxes paid
(675,001)
(351,108)
Net cash inflow from operating activities
7,581,016
788,901
Investing activities
Purchase of intangible assets
-
(17,528)
Purchase of tangible fixed assets
(40,361)
(185,000)
Purchase of subsidiaries, net of cash acquired
42,220
-
Interest received
505
12,651
Dividends received
335,183
212,452
Net cash generated from investing activities
337,547
22,575
Financing activities
Repayment of bank loans
(3,405,333)
(43,731)
Payment of finance leases obligations
(13,896)
(17,856)
Dividends paid to equity shareholders
(556,687)
(540,000)
Net cash used in financing activities
(3,975,916)
(601,587)
Net increase in cash and cash equivalents
3,942,647
209,889
Cash and cash equivalents at beginning of year
1,677,584
1,536,550
Effect of foreign exchange rates
(4,555)
(68,855)
Cash and cash equivalents at end of year
5,615,676
1,677,584
FLINT CONSULTING LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 17 -
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
32
7,450,628
509,767
Income taxes paid
(400,000)
(100,000)
Net cash inflow from operating activities
7,050,628
409,767
Investing activities
Purchase of intangible assets
(15,995)
Purchase of tangible fixed assets
(17,580)
(25,423)
Dividends received
335,183
212,452
Net cash generated from investing activities
317,603
171,034
Financing activities
Repayment of bank loans
(3,405,334)
(39,625)
Payment of finance leases obligations
(13,896)
(17,856)
Dividends paid to equity shareholders
(556,687)
(540,000)
Net cash used in financing activities
(3,975,917)
(597,481)
Net increase/(decrease) in cash and cash equivalents
3,392,314
(16,680)
Cash and cash equivalents at beginning of year
166,852
183,532
Cash and cash equivalents at end of year
3,559,166
166,852
FLINT CONSULTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 18 -
1
Accounting policies
Company information
Flint Consulting Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Bre Site Building 3, Bucknalls Lane, Garston, Watford, Herts, WD25 9XX.
The group consists of Flint Consulting Limited and all of its subsidiaries listed in Note 16.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Basis of consolidation
The consolidated financial statements incorporate those of Flint Consulting Limited and all non-dormant subsidiaries as listed in note 15.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation.
1.3
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.4
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of discounts and VAT.
Revenue arises from the provision of telecommunication consultancy and services. Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.
1.5
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
1.6
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives.
FLINT CONSULTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 19 -
1.7
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures and fittings
33.33% per annum on a reducing balance basis
Motor vehicles
25% per annum on a reducing balance basis
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
1.8
Fixed asset investments
In the parent company financial statements, and where the subsidiary is dormant in the consolidated financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.9
Impairment of fixed assets
At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
1.10
Financial instruments
The company has elected to apply the provisions of Section 11 ”Basic financial Instruments” to all of its financial instruments.
Financial instruments are recognised in the company’s balance sheet when the company becomes party to the contractual provisions of the instrument.
Basic financial assets
Short term debtors are measured at transaction price less any provision for impairment. Loans receivable are measured initially at fair value, net of transaction costs and are subsequently carried at amortised costs using the effective interest method, less any provision for impairment.
Basic financial liabilities
Short term creditors are measured at transaction price. Other financial liabilities, including bank loans and other loans, are measured initially at fair value, net of transaction costs and are subsequently carried at amortised costs using the effective interest method.
FLINT CONSULTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 20 -
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease.
1.15
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
FLINT CONSULTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 21 -
1.16
Debts are factored by The Royal Bank of Scotland. Separate presentation has been adopted; trade debtors are shown within assets and a corresponding liability in respect of the proceeds of advanced drawdowns are shown within liabilities.
2
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The directors make material judgements, estimates and assumptions when accounting for revenue on contracts in accordance with note 1.4. The directors use all available knowledge including expectations based on historical data to ascertain the stage of completion of contracts based on costs incurred to date, future expected costs and the contract sales value.
3
Turnover and other revenue
An analysis of the group's turnover is as follows:
2022
2021
£
£
Turnover analysed by class of business
Provision of services
49,241,842
46,022,439
2022
2021
£
£
Turnover analysed by geographical market
UK
31,977,240
29,289,837
Europe
8,801,088
12,746,346
Rest of the World
8,463,514
3,986,256
49,241,842
46,022,439
2022
2021
£
£
Other revenue
Interest income
505
13,007
Dividends received
335,183
-
Grants received
-
17,548
FLINT CONSULTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 22 -
4
Operating profit
2022
2021
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange gains
(109,391)
(1,477)
Government grants
-
(17,548)
Depreciation of owned tangible fixed assets
178,395
179,204
Depreciation of tangible fixed assets held under finance leases
19,546
16,889
Loss on disposal of tangible fixed assets
5,540
-
Amortisation of intangible assets
8,447
5,898
Impairment of intangible assets
24,289
Operating lease charges
127,265
138,689
5
Auditor's remuneration
2022
2021
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
49,925
41,974
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2022
2021
2022
2021
Number
Number
Number
Number
Office and management
35
24
14
12
Sales, technical and operational
117
119
43
54
Total
152
143
57
66
Their aggregate remuneration comprised:
Group
Company
2022
2021
2022
2021
£
£
£
£
Wages and salaries
6,177,926
6,786,552
2,862,823
3,110,347
Social security costs
357,217
476,391
321,102
344,868
Pension costs
89,579
106,093
89,579
106,093
6,624,722
7,369,036
3,273,504
3,561,308
FLINT CONSULTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 23 -
7
Directors' remuneration
2022
2021
£
£
Remuneration for qualifying services
202,834
134,201
Company pension contributions to defined contribution schemes
41,893
46,794
244,727
180,995
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 5 (2021 - 5).
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2022
2021
£
£
Remuneration for qualifying services
126,242
n/a
Company pension contributions to defined contribution schemes
2,026
n/a
As directors remuneration did not exceed £200,000 in the prior year comparative amounts for the highest paid director have not been disclosed.
Key management personnel consists solely of the directors and therefore key management personnel compensation is represented by directors remuneration.
8
Interest receivable and similar income
2022
2021
£
£
Interest income
Interest on bank deposits
505
Other interest income
-
13,007
Total interest revenue
505
13,007
Other income from investments
Dividends received
335,183
Total income
335,688
13,007
FLINT CONSULTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 24 -
9
Interest payable and similar expenses
2022
2021
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
10,343
22,820
Other interest on financial liabilities
965
-
11,308
22,820
Other finance costs:
Interest on finance leases and hire purchase contracts
1,677
1,802
Other interest
3,102
-
Total finance costs
16,087
24,622
10
Amounts written off investments
2022
2021
£
£
Other gains and losses
(24,289)
-
11
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
404,300
309,984
Adjustments in respect of prior periods
(83,441)
Total UK current tax
404,300
226,543
Foreign current tax on profits for the current period
275,001
245,902
Total current tax
679,301
472,445
Deferred tax
Origination and reversal of timing differences
(15,525)
(2,305)
Total tax charge
663,776
470,140
FLINT CONSULTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
11
Taxation
(Continued)
- 25 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2022
2021
£
£
Profit before taxation
3,326,247
3,345,495
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
631,987
635,644
Tax effect of expenses that are not deductible in determining taxable profit
38,087
7,244
Tax effect of income not taxable in determining taxable profit
(94,189)
(40,366)
Adjustments in respect of prior years
(83,442)
Permanent capital allowances in excess of depreciation
(493)
(1,381)
Other permanent differences
(18,496)
Tax effect of foreign profits not subject to UK tax
(133,507)
(168,523)
Foreign tax charge
275,001
245,902
Profits of associates and joint ventures
(34,614)
(124,938)
Taxation charge
663,776
470,140
An increase in the UK corporation tax rate from 19% to 25% (effective from 1 April 2023) was substantively enacted on 24 May 2021. This will increase the group’s future tax charge accordingly and increase the deferred tax balance, although the extent of this effect cannot currently be quantified with any degree of certainty.
12
Discontinued operations
As detailed in the strategic report, the UK element of the trade and assets of the company were transferred to the immediate parent company at that time, Flint UK Technology Services Limited, in November 2022. Following this transfer, the entity now primarily continues to trade only within Europe and the rest of the world. As a result, nearly all operations in relation to the UK trade have been considered discontinued.
13
Dividends
2022
2021
Recognised as distributions to equity holders:
£
£
Interim paid
3,383,118
540,000
FLINT CONSULTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 26 -
14
Impairments
Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:
2022
2021
Notes
£
£
In respect of:
Fixed asset investments
17
24,289
-
Recognised in:
Amounts written off investments
24,289
-
15
Intangible fixed assets
Group
Goodwill
Negative goodwill
Software
Patents & licences
Total
£
£
£
£
£
Cost
At 1 January 2022
24,289
15,995
11,955
52,239
Additions
(62,719)
(62,719)
Exchange adjustments
647
647
At 31 December 2022
24,289
(62,719)
15,995
12,602
(9,833)
Amortisation and impairment
At 1 January 2022
5,741
5,741
Amortisation charged for the year
5,332
3,115
8,447
Impairment losses
24,289
24,289
Exchange adjustments
442
442
At 31 December 2022
24,289
5,332
9,298
38,919
Carrying amount
At 31 December 2022
(62,719)
10,663
3,304
(48,752)
At 31 December 2021
24,289
15,995
6,214
46,498
Company
Software
£
Cost
At 1 January 2022 and 31 December 2022
15,995
Amortisation and impairment
At 1 January 2022
Amortisation charged for the year
5,332
At 31 December 2022
5,332
FLINT CONSULTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
15
Intangible fixed assets
(Continued)
- 27 -
Carrying amount
At 31 December 2022
10,663
At 31 December 2021
15,995
More information on impairment movements in the year is given in note 14.
16
Tangible fixed assets
Group
Fixtures and fittings
Motor vehicles
Total
£
£
£
Cost
At 1 January 2022
751,429
91,994
843,423
Additions
36,784
53,690
90,474
Disposals
(282,965)
(145,684)
(428,649)
Exchange adjustments
24,901
24,901
At 31 December 2022
530,149
530,149
Depreciation and impairment
At 1 January 2022
516,357
41,327
557,684
Depreciation charged in the year
178,395
19,546
197,941
Eliminated in respect of disposals
(238,586)
(60,873)
(299,459)
Exchange adjustments
(137,823)
(137,823)
At 31 December 2022
318,343
318,343
Carrying amount
At 31 December 2022
211,806
211,806
At 31 December 2021
235,072
50,667
285,739
FLINT CONSULTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
16
Tangible fixed assets
(Continued)
- 28 -
Company
Fixtures and fittings
Motor vehicles
Total
£
£
£
Cost
At 1 January 2022
295,685
91,994
387,679
Additions
14,002
53,690
67,692
Disposals
(282,965)
(145,684)
(428,649)
At 31 December 2022
26,722
26,722
Depreciation and impairment
At 1 January 2022
232,954
41,327
274,281
Depreciation charged in the year
24,088
19,546
43,634
Eliminated in respect of disposals
(238,586)
(60,873)
(299,459)
At 31 December 2022
18,456
18,456
Carrying amount
At 31 December 2022
8,266
8,266
At 31 December 2021
62,731
50,667
113,398
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Group
Company
2022
2021
2022
2021
£
£
£
£
Motor vehicles
50,667
50,667
17
Fixed asset investments
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Investments in subsidiaries
18
17,267
41,556
Investments in associates
19
71,214
71,214
71,214
71,214
Share of net assets of associates
1,148,299
2,561,422
Unlisted investments
1,530,603
1,714
2,750,115
2,634,349
88,481
112,770
FLINT CONSULTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
17
Fixed asset investments
(Continued)
- 29 -
Movements in fixed asset investments
Group
Shares in associates
Share of net assets of associates
Other investments
Total
£
£
£
£
Cost or valuation
At 1 January 2022
71,214
2,561,422
1,714
2,634,350
Additions
-
-
1,530,603
1,530,603
Foreign exchange difference on consolidation
-
87,748
-
87,748
Share of associates profits
-
29,731
-
29,731
Disposals
-
(1,530,603)
(1,714)
(1,532,317)
At 31 December 2022
71,214
1,148,298
1,530,603
2,750,115
Carrying amount
At 31 December 2022
71,214
1,148,298
1,530,603
2,750,115
At 31 December 2021
71,214
2,561,422
1,714
2,634,350
The £1.5m disposal within share of net assets of associates and addition to other investments relates to the investment in Flint Saudi Arabia Consulting Co Ltd whose registered office is in Saudi Arabia. The company hold a 30% shareholding in Flint Saudi Arabia Consulting Co Ltd.
The directors believe that the appropriate way to account for their investment in Flint Saudi Arabia Consulting Co Ltd is no longer under the equity model but instead under the cost model.
During the year Flint GmbH increased their shareholding in Flint BT Ltd STi to 100%, increasing the company's indirect shareholding in Flint BT Ltd STi to 62.5%. As a result the results of Flint BT Ltd STi have been consolidated into the group accounts under the acquisition method from the date of acquisition.
Movements in fixed asset investments
Company
Shares in subsidiaries and associates
£
Cost or valuation
At 1 January 2022
112,770
Amounts written off investments
(24,289)
At 31 December 2022
88,481
Carrying amount
At 31 December 2022
88,481
At 31 December 2021
112,770
18
Subsidiaries
Details of the company's subsidiaries at 31 December 2022 are as follows:
FLINT CONSULTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
18
Subsidiaries
(Continued)
- 30 -
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Flint Group Polska Sp. z o.o.
Poland
Ordinary
100.00
-
Flint Integration Services Ireland Limited
Ireland
Ordinary
100.00
-
Flint Limited Liability Company
Russia
Ordinary
75.00
-
Flint GmbH
Germany
Ordinary
62.50
-
Flint SI D.oo
Slovenia
Ordinary
51.00
-
Flint Consulting LLC
Kazakhstan
Ordinary
60.00
-
Flint Consulting Inc
U.S.A
Ordinary
100.00
-
Flint BT Ltd STi
Turkey
Ordinary
0
62.50
19
Associates
Details of associates at 31 December 2022 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Flint SA (PTY) Limited
South Africa
Ordinary
42
Flint UAE (United Arab Emirates)
United Arab Emirates
Ordinary
40
Flint Consulting Africa Ltd
South Africa
Ordinary
49
Flint IT Services Canada Ltd
Canada
Ordinary
43
20
Debtors
Group
Company
2022
2021
2022
2021
Amounts falling due within one year:
£
£
£
£
Trade debtors
7,732,285
12,029,719
5,720,527
10,276,189
Corporation tax recoverable
338
338
Amounts owed by group undertakings
-
-
654,530
739,994
Amounts owed by undertakings in which the company has a participating interest
239,148
135,942
239,148
135,942
Other debtors
622,867
672,734
101,140
Prepayments and accrued income
902,275
2,691,227
754,995
2,664,294
9,496,913
15,529,622
7,470,678
13,816,419
Amounts falling due after more than one year:
Deferred tax asset (note 26)
3,451
3,451
Total debtors
9,500,364
15,529,622
7,474,129
13,816,419
FLINT CONSULTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 31 -
21
Creditors: amounts falling due within one year
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Bank loans
23
527,379
5,324,847
472,088
5,292,381
Obligations under finance leases
24
25,797
25,797
Trade creditors
4,906,104
2,567,724
4,348,048
1,800,188
Amounts owed to group undertakings
108
30,624
Amounts owed to undertakings in which the group has a participating interest
86,480
15,175
7,959
Corporation tax payable
228,302
220,362
228,302
220,362
Other taxation and social security
732,048
997,435
463,176
634,065
Deferred income
25
1,087,524
1,016,351
Other creditors
4,031,950
515,848
3,684,013
56,000
Accruals and deferred income
1,378,375
2,788,896
822,703
2,668,236
11,890,638
13,543,608
10,018,438
11,751,963
22
Creditors: amounts falling due after more than one year
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Obligations under finance leases
24
12,997
12,997
23
Loans and overdrafts
Group
Company
2022
2021
2022
2021
£
£
£
£
Bank loans
527,379
5,324,847
472,088
5,292,381
Payable within one year
527,379
5,324,847
472,088
5,292,381
Included within loans and overdrafts is an amount of £472,088 (2021 - £5,292,381) due to The Royal Bank of Scotland Commercial Services Limited and RBS Invoice Finance Limited which is secured via fixed and floating charges over all undertakings of the company, and £nil (2021 - £62,594) due to Bibby Financial Services Ltd, secured on the book debts of the company.
FLINT CONSULTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 32 -
24
Finance lease obligations
Group
Company
2022
2021
2022
2021
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
27,038
27,038
In two to five years
14,308
14,308
-
41,346
-
41,346
Less: future finance charges
(2,552)
(2,552)
-
38,794
38,794
Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
Net obligations under finance leases and hire purchase contracts were secured by fixed charges on the assets concerned.
During the year any outstanding finance lease obligations were transferred to Flint UK Technology Services Ltd as part of the transfer of the UK trade.
25
Deferred income
Group
Company
2022
2021
2022
2021
£
£
£
£
Other deferred income
-
1,087,524
-
1,016,351
26
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
Assets
Assets
2022
2021
2022
2021
Group
£
£
£
£
Accelerated capital allowances
-
12,832
2,743
-
Retirement benefit obligations
-
(758)
708
-
-
12,074
3,451
-
FLINT CONSULTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
26
Deferred taxation
(Continued)
- 33 -
Liabilities
Liabilities
Assets
Assets
2022
2021
2022
2021
Company
£
£
£
£
Accelerated capital allowances
-
12,832
2,743
-
Retirement benefit obligations
-
(758)
708
-
-
12,074
3,451
-
Group
Company
2022
2022
Movements in the year:
£
£
Liability at 1 January 2022
12,074
12,074
Credit to profit or loss
(15,525)
(15,525)
Asset at 31 December 2022
(3,451)
(3,451)
27
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
89,579
106,093
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
28
Share capital
Group and company
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
"A" Ordinary shares of £1 each
-
20
-
20
"B" Ordinary shares of £1 each
-
20
-
20
"C" Ordinary shares of £1 each
-
20
-
20
"D" Ordinary shares of £1 each
-
20
-
20
Ordinary shares of £1 each
80
-
80
-
80
80
80
80
During the year the four classes of 'A', 'B', 'C' and 'D' Ordinary shares were re-designated as Ordinary shares. There are no restrictions on the distribution of dividends and the repayment of capital.
FLINT CONSULTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 34 -
29
Related party transactions
In respect of wholly owned subsidiaries, the company has taken advantage of the exemption permitted by Section 33 "Related Party Disclosures" not to provide disclosures of transactions entered into with other wholly owned members of the group.
At the balance sheet date, the company was owed £4,862 (2021 - £294,910) by its non-wholly owned subsidiaries, and owed £169,470 (2021 - £73,870) to its non-wholly owned subsidiaries. The company made purchases of £1,535,060 (2021 - £4,227,438) from non-wholly owned subsidiaries. The company made sales of £28,444 (2021 - £7,901) and charged management fees of £128,387 (2021 - £145,083) to non-wholly owned subsidiaries.
During the year the company made purchases of £1,183,929 (2021 - £195,817) from and sales of £203,831 (2021 - £428,137) and management fees of £285,441 (2021 - £89,765) to associates. The company also received dividends of £495,732 (2021 - £212,452) from its associates.
At the balance sheet date the company was owed £537,262 (2021 - £363,149) by associates and owed £108,012 (2021 - £nil) to its associates.
During the year the company transferred the UK element of its trade and assets to Flint UK Technology Services Limited via a dividend in specie, who was the company's immediate parent company from 21 November 2022 to 24 November 2022. The results of Flint UK Technology Services Limited have not been consolidated into the group accounts on grounds of materiality.
The company made purchases of £3,273,274 (2021 - £nil) and sales of £3,273,274 (2021 - £nil) to Flint UK Technology Services Limited as well as charging management fees of £61,000 (£nil) during the year.
The company also collected income of £5,707,686 (2021 - £nil) and made payments of £2,026,058 (2021 - £nil) on behalf of Flint UK Technology Services Limited during the year.
At the balance sheet date the company owed Flint UK Technology Services Limited £7,471,627 (2021 - £nil).
All balances due to or from related parties as at the balance sheet date are unsecured, interest free and repayable on demand.
30
Controlling party
The ultimate controlling party of the group is Flint Consulting Holdings Limited whose registered office is Bre Site Building, 3 Bucknalls Lane, Garston, Watford, England, WD25 9XX
FLINT CONSULTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 35 -
31
Cash generated from group operations
2022
2021
£
£
Profit for the year after tax
2,662,471
2,875,355
Adjustments for:
Share of results of associates and joint ventures
(182,180)
(657,566)
Taxation charged
663,776
470,140
Finance costs
16,087
24,622
Investment income
(335,688)
(13,007)
Loss on disposal of tangible fixed assets
5,540
-
Amortisation and impairment of intangible assets
8,447
5,898
Depreciation and impairment of tangible fixed assets
197,941
196,093
Other gains and losses
24,289
-
Movements in working capital:
(Increase)/decrease in stocks
(119)
32
Increase in debtors
(4,089,739)
(1,877,191)
Increase in creditors
7,343,535
742,887
Increase/(decrease) in deferred income
1,952,000
(605,006)
Cash generated from operations
8,266,360
1,162,257
32
Cash generated from operations - company
2022
2021
£
£
Profit for the year after tax
2,056,985
1,576,723
Adjustments for:
Taxation charged
388,775
224,238
Finance costs
5,744
2,374
Investment income
(495,732)
(212,808)
Loss on disposal of tangible fixed assets
5,540
-
Amortisation and impairment of intangible assets
5,332
-
Depreciation and impairment of tangible fixed assets
43,634
40,379
Other gains and losses
24,289
-
Movements in working capital:
Increase in debtors
(3,867,466)
(519,419)
Increase in creditors
7,260,354
74,459
Increase/(decrease) in deferred income
2,023,173
(676,179)
Cash generated from operations
7,450,628
509,767
FLINT CONSULTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 36 -
33
Analysis of changes in net funds/(debt) - group
1 January 2022
Cash flows
Other non-cash changes
Market value movements
Exchange rate movements
31 December 2022
£
£
£
£
£
£
Cash at bank and in hand
1,677,584
3,942,647
-
-
(4,555)
5,615,676
Borrowings excluding overdrafts
(5,324,847)
2,835,909
1,955,815
5,744
-
(527,379)
Obligations under finance leases
(38,794)
13,896
24,898
-
-
-
(3,686,057)
6,792,452
1,980,713
5,744
(4,555)
5,088,297
FLINT CONSULTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 37 -
34
Analysis of changes in net funds/(debt) - company
1 January 2022
Cash flows
Other non-cash changes
Market value movements
31 December 2022
£
£
£
£
£
Cash at bank and in hand
166,852
3,392,314
-
-
3,559,166
Borrowings excluding overdrafts
(5,292,381)
2,858,734
1,955,815
5,744
(472,088)
Obligations under finance leases
(38,794)
13,896
24,898
-
-
(5,164,323)
6,264,944
1,980,713
5,744
3,087,078
2022-12-312022-01-01falseCCH SoftwareCCH Accounts Production 2023.300K BarkerN P BurbidgeG S MooreP L BlakeI D M AshfordA GoodchildA GoodchildR Smithfalse03811782bus:Consolidated2022-01-012022-12-31038117822022-01-012022-12-3103811782bus:Director22022-01-012022-12-3103811782bus:Director42022-01-012022-12-3103811782bus:Director52022-01-012022-12-3103811782bus:Director62022-01-012022-12-3103811782bus:CompanySecretary12022-01-012022-12-3103811782bus:Director12022-01-012022-12-3103811782bus:CompanySecretaryDirector12022-01-012022-12-3103811782bus:Director32022-01-012022-12-3103811782bus:Director72022-01-012022-12-3103811782bus:Consolidated2022-12-31038117822022-12-3103811782bus:Consolidated2021-01-012021-12-31038117822021-01-012021-12-3103811782core:RetainedEarningsAccumulatedLossesbus:Consolidated2022-01-012022-12-3103811782core:RetainedEarningsAccumulatedLossesbus:Consolidated2021-01-012021-12-3103811782core:Goodwillbus:Consolidated2022-12-3103811782core:Goodwillbus:Consolidated2021-12-3103811782core:NegativeGoodwillbus:Consolidated2022-12-3103811782core:NegativeGoodwillbus:Consolidated2021-12-3103811782core:OtherResidualIntangibleAssetsbus:Consolidated2022-12-3103811782core:OtherResidualIntangibleAssetsbus:Consolidated2021-12-3103811782core:ComputerSoftwarebus:Consolidated2022-12-3103811782core:PatentsTrademarksLicencesConcessionsSimilarbus:Consolidated2022-12-3103811782core:ComputerSoftwarebus:Consolidated2021-12-3103811782core:PatentsTrademarksLicencesConcessionsSimilarbus:Consolidated2021-12-3103811782bus:Consolidated2021-12-3103811782core:ComputerSoftware2022-12-3103811782core:ComputerSoftware2021-12-31038117822021-12-3103811782core:FurnitureFittingsbus:Consolidated2022-12-3103811782core:MotorVehiclesbus:Consolidated2022-12-3103811782core:FurnitureFittingsbus:Consolidated2021-12-3103811782core:MotorVehiclesbus:Consolidated2021-12-3103811782core:FurnitureFittings2022-12-3103811782core:MotorVehicles2022-12-3103811782core:FurnitureFittings2021-12-3103811782core:MotorVehicles2021-12-3103811782core:ShareCapitalbus:Consolidated2022-12-3103811782core:ShareCapitalbus:Consolidated2021-12-3103811782core:CapitalRedemptionReservebus:Consolidated2022-12-3103811782core:CapitalRedemptionReservebus:Consolidated2021-12-3103811782core:ShareCapital2022-12-3103811782core:ShareCapital2021-12-3103811782core:CapitalRedemptionReserve2022-12-3103811782core:CapitalRedemptionReserve2021-12-3103811782core:RetainedEarningsAccumulatedLosses2022-12-3103811782core:ShareCapitalbus:Consolidated2020-12-3103811782core:CapitalRedemptionReservebus:Consolidated2020-12-3103811782core:RetainedEarningsAccumulatedLossesbus:Consolidated2020-12-3103811782core:RetainedEarningsAccumulatedLossesbus:Consolidated2021-12-3103811782core:Non-controllingInterestsbus:Consolidated2021-12-3103811782core:RetainedEarningsAccumulatedLossesbus:Consolidated2022-12-3103811782core:Non-controllingInterestsbus:Consolidated2022-12-3103811782core:ShareCapital2020-12-3103811782core:CapitalRedemptionReserve2020-12-3103811782core:RetainedEarningsAccumulatedLosses2020-12-3103811782core:RetainedEarningsAccumulatedLosses2021-12-3103811782core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3103811782core:CurrentFinancialInstrumentscore:WithinOneYear2021-12-3103811782core:Non-currentFinancialInstrumentscore:AfterOneYear2022-12-3103811782core:Non-currentFinancialInstrumentscore:AfterOneYear2021-12-3103811782core:CurrentFinancialInstruments2022-12-3103811782core:CurrentFinancialInstruments2021-12-3103811782bus:Consolidated2020-12-31038117822020-12-3103811782core:Goodwill2022-01-012022-12-3103811782core:IntangibleAssetsOtherThanGoodwill2022-01-012022-12-3103811782core:FurnitureFittings2022-01-012022-12-3103811782core:MotorVehicles2022-01-012022-12-3103811782core:UKTaxbus:Consolidated2022-01-012022-12-3103811782core:UKTaxbus:Consolidated2021-01-012021-12-3103811782core:ForeignTaxbus:Consolidated2022-01-012022-12-3103811782core:ForeignTaxbus:Consolidated2021-01-012021-12-3103811782bus:Consolidated12022-01-012022-12-3103811782bus:Consolidated12021-01-012021-12-3103811782bus:Consolidated22022-01-012022-12-3103811782bus:Consolidated22021-01-012021-12-3103811782bus:Consolidated32022-01-012022-12-3103811782bus:Consolidated32021-01-012021-12-3103811782bus:Consolidated42022-01-012022-12-3103811782bus:Consolidated42021-01-012021-12-3103811782core:Goodwillbus:Consolidated2021-12-3103811782core:NegativeGoodwillbus:Consolidated2021-12-3103811782core:ComputerSoftwarebus:Consolidated2021-12-3103811782core:PatentsTrademarksLicencesConcessionsSimilarbus:Consolidated2021-12-3103811782bus:Consolidated2021-12-3103811782core:ComputerSoftware2021-12-3103811782core:Goodwillcore:ExternallyAcquiredIntangibleAssetsbus:Consolidated2022-01-012022-12-3103811782core:NegativeGoodwillcore:ExternallyAcquiredIntangibleAssetsbus:Consolidated2022-01-012022-12-3103811782core:ComputerSoftwarecore:ExternallyAcquiredIntangibleAssetsbus:Consolidated2022-01-012022-12-3103811782core:PatentsTrademarksLicencesConcessionsSimilarcore:ExternallyAcquiredIntangibleAssetsbus:Consolidated2022-01-012022-12-3103811782core:ExternallyAcquiredIntangibleAssetsbus:Consolidated2022-01-012022-12-3103811782core:Goodwillbus:Consolidated2022-01-012022-12-3103811782core:NegativeGoodwillbus:Consolidated2022-01-012022-12-3103811782core:ComputerSoftwarebus:Consolidated2022-01-012022-12-3103811782core:PatentsTrademarksLicencesConcessionsSimilarbus:Consolidated2022-01-012022-12-3103811782core:ComputerSoftware2022-01-012022-12-3103811782core:FurnitureFittingsbus:Consolidated2021-12-3103811782core:MotorVehiclesbus:Consolidated2021-12-3103811782core:FurnitureFittings2021-12-3103811782core:MotorVehicles2021-12-31038117822021-12-3103811782core:FurnitureFittingsbus:Consolidated2022-01-012022-12-3103811782core:MotorVehiclesbus:Consolidated2022-01-012022-12-3103811782core:UnlistedNon-exchangeTradedbus:Consolidated2022-12-3103811782core:UnlistedNon-exchangeTradedbus:Consolidated2021-12-3103811782core:UnlistedNon-exchangeTraded2022-12-3103811782core:UnlistedNon-exchangeTraded2021-12-3103811782core:Subsidiary12022-01-012022-12-3103811782core:Subsidiary22022-01-012022-12-3103811782core:Subsidiary32022-01-012022-12-3103811782core:Subsidiary42022-01-012022-12-3103811782core:Subsidiary52022-01-012022-12-3103811782core:Subsidiary62022-01-012022-12-3103811782core:Subsidiary72022-01-012022-12-3103811782core:Subsidiary82022-01-012022-12-3103811782core:Subsidiary112022-01-012022-12-3103811782core:Subsidiary212022-01-012022-12-3103811782core:Subsidiary312022-01-012022-12-3103811782core:Subsidiary412022-01-012022-12-3103811782core:Subsidiary512022-01-012022-12-3103811782core:Subsidiary612022-01-012022-12-3103811782core:Subsidiary712022-01-012022-12-3103811782core:Subsidiary812022-01-012022-12-3103811782core:Associate12022-01-012022-12-3103811782core:Associate22022-01-012022-12-3103811782core:Associate32022-01-012022-12-3103811782core:Associate42022-01-012022-12-3103811782core:Associate112022-01-012022-12-3103811782core:Associate212022-01-012022-12-3103811782core:Associate312022-01-012022-12-3103811782core:Associate412022-01-012022-12-3103811782core:CurrentFinancialInstrumentsbus:Consolidated2022-12-3103811782core:CurrentFinancialInstrumentsbus:Consolidated2021-12-3103811782core:Non-currentFinancialInstrumentsbus:Consolidated2022-12-3103811782core:Non-currentFinancialInstrumentsbus:Consolidated2021-12-3103811782core:Non-currentFinancialInstruments2022-12-3103811782core:Non-currentFinancialInstruments2021-12-3103811782core:WithinOneYearbus:Consolidated2022-12-3103811782core:WithinOneYearbus:Consolidated2021-12-3103811782core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2022-12-3103811782core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2021-12-3103811782core:WithinOneYear2022-12-3103811782core:WithinOneYear2021-12-3103811782core:BetweenTwoFiveYearsbus:Consolidated2022-12-3103811782core:BetweenTwoFiveYearsbus:Consolidated2021-12-3103811782core:BetweenTwoFiveYears2022-12-3103811782core:BetweenTwoFiveYears2021-12-3103811782bus:PrivateLimitedCompanyLtd2022-01-012022-12-3103811782bus:FRS1022022-01-012022-12-3103811782bus:Audited2022-01-012022-12-3103811782bus:ConsolidatedGroupCompanyAccounts2022-01-012022-12-3103811782bus:FullAccounts2022-01-012022-12-31xbrli:purexbrli:sharesiso4217:GBP