Registration number:
CNC Group Holdings Limited
for the Year Ended 30 April 2023
CNC Group Holdings Limited
Contents
Company Information |
|
Strategic Report |
|
Directors' Report |
|
Statement of Directors' Responsibilities |
|
Independent Auditor's Report |
|
Consolidated Profit and Loss Account |
|
Consolidated Statement of Comprehensive Income |
|
Consolidated Balance Sheet |
|
Balance Sheet |
|
Consolidated Statement of Changes in Equity |
|
Statement of Changes in Equity |
|
Consolidated Statement of Cash Flows |
|
Statement of Cash Flows |
|
Notes to the Financial Statements |
CNC Group Holdings Limited
Company Information
Directors |
Mr M A Coleman Ms L Morris Mr M A Carless Mr G Rowe Mr G Blaszczak Mr Bradshaw |
Company secretary |
Ms L Morris |
Registered office |
|
Solicitors |
|
Bankers |
|
Auditors |
|
CNC Group Holdings Limited
Strategic Report for the Year Ended 30 April 2023
The directors present their strategic report for the year ended 30 April 2023.
Principal activity
The principal activity of CNC Group Holdings Limited is the parent group of four trading companies known collectively as Colemans.
A third-generation family business celebrating 60 years of trading, the group has been at the forefront of market-leading, innovative changes in the demolition and wider construction sector.
We combine a highly skilled, experienced team with innovative processes and the latest technology to deliver an integrated portfolio of services fit for the present and designed for the future.
These services span demolition and deconstruction, land remediation, specialist cutting and engineered solutions – delivered worldwide, all with a focus on safety, sustainability and quality.
Customers include everyone from multinational companies to public sector organisations and individual developers, with a great emphasis on collaboration to make sure Colemans is successful in all activities.
Our specialist services are globally recognised by clients, competitors and others within the industry, including the wider construction sector. Thanks to a collaborative approach and integrated solutions, Colemans have built a reputation for delivering the most complex and challenging projects in some of the most high-risk environments.
Fair review of the business
Colemans is a resilient company, trading at a healthy profit margin.
The group has had a successful trading period, growing turnover by 13% to continue our trajectory towards sustainable growth and returning a net profit before tax of £252,889. Given the existing pipeline of work, the directors consider the current profit margin to be sustainable.
60th anniversary
In October 2022 we celebrated the 60th anniversary of incorporation of the group’s main trading company, Coleman & Company Limited, representing a significant milestone for the business. As part of the anniversary celebrations, we raised over £30,000 through fundraising activities, which the business doubled so we could donate over £60,000 to our nominated charity, SIFA Fireside, the main day centre facility supporting people experiencing homelessness in Birmingham. We have a long relationship with SIFA Fireside dating back to the 1960s when our co-founder Norah Coleman lived next door to SIFA’s founder, Sister Sabina.
CNC Group Holdings Limited
Strategic Report for the Year Ended 30 April 2023
Rebrand and website
The 60th anniversary was also the catalyst to launch the new Colemans brand and website as part of a £60,000 investment to re-invigorate our external branding with a bold and fresh new look. We have been delighted with the initial reaction.
One of the most pleasing things has been the way in which people have identified with some of the reasons behind the rebrand, from our proud Irish roots to the friendly, personal approach that underpins the way we do business. Here is the reasoning behind the rebrand in a bit more detail.
• A green business with roots on the Emerald Isle: Switching to green for our main corporate colour was a conscious decision that not only promotes our focus on environmental performance and improvement but reinforces our proud Irish roots too. John and Norah Coleman moved from Ireland to Birmingham before setting up the business in 1962 and the Coleman family still sees Ireland as its spiritual home.
• A more informal name: The most significant change has been to switch from Coleman & Company Limited to simply ‘Colemans’, better reflecting the personal approach and family values that shape our business. We’re a people-first organisation, placing great emphasis on relationships and wellbeing - a long way from the corporate entity that our old name suggested.
• A nod to our recent past: The red full stop in the new Colemans logo also maintains some consistency with the red in our previous Coleman & Co logo, designed by our previous Chairman, David Coleman.
• A company you can trust: Many have also noticed the connected letters C and O in the Colemans logo - not only the first two letters of our name, but also leading into some of our customer working styles too. A leading contractor that really focuses on collaboration and co-working.
As we close the year on our 60th Anniversary celebrations, we are pleased to have received four industry awards:
• British Demolition Awards 2023
1. Award for the best project of the year under £1m
2. Award for Environmental Innovation
• World Demolition Awards 2023
1. Award for Recycling and Environmental
2. The prestigious “Best of the Best” award, which was in recognition of our pioneering approach to the circular economy.
To be recognised, both at home and globally, for our work in mitigating environmental impacts was a very proud achievement, and was doubly well received as the World Demolition Awards coincided with the day Mark Coleman celebrated 30 years’ service with the company.
CNC Group Holdings Limited
Strategic Report for the Year Ended 30 April 2023
Financial stability
The group is financially stable with no borrowings, the lowest gearing (zero) of any demolition contractor in the UK.
This was made possible by a series of strategic decisions, notably a new approach to plant management, a commitment to support the environment and a continued focus on our people - all of which sets us apart from competitors and delivers significant benefits for customers.
Throughout challenging times, we have maintained focus on project delivery control, selective tendering, cash management and disciplined cost containment. We work closely with clients, partners, suppliers, communities and other stakeholders to collaboratively deliver the best possible results on each individual project.
We have built strong relationships with suppliers, and we now outsource heavy plant and equipment, working only with market leaders in their respective fields. This strategy means we can source the most up-to-date, environmentally friendly, and technically advanced equipment for all projects.
We are proud to be delivering results today whilst taking steps to make improvements for the future, always looking forward to support people and the planet.
Circular economy and sustainability
In the last 12 months we have continued to develop our circular economy approach, taking steps to enable materials re-use and drive carbon reduction under our wider sustainability strategy.
By maintaining or improving the value of materials, products or components, we help clients to unlock value where previously there was only cost. Making material streams accessible, functional and attractive, we’re enabling buildings to be disassembled the lowest possible resource use, minimal contamination and without loss of quality.
This approach is made possible by having a detailed knowledge of circular materials and an intimate understanding of supply chains. We have built partnerships with a range of manufacturers and technology providers to help manage material flows by supplying positive circular materials, facilitating waste material upcycling and building inventories of existing assets to enable them for circular reuse.
We have invested £45,000 in the latest 3D scanning hardware and software that allows us to scan structures, itemise material inventory and provide our clients with an inventory of 'reusable' products prior to design. The creation of an 'inventory' is the first step in creating a compliant, traceable 'material passport' for the reusable building materials that aligns with stringent UK and EU legal requirements when designing for deconstruction and adaptive reuse. It also increases yields by supporting the development of healthy, low carbon and flexible buildings that are more attractive, viable assets for occupiers.
Through genuine industry collaboration, we are also developing a positive change in sustainable carbon engineered solutions - identifying genuine opportunities for reuse and recycling to enhance the environmental performance of our activities. We have built a strategy to reduce the environmental impact of our activities, incorporating a holistic approach across plant, travel, recycling and more. The Board have set a target to achieve net zero and we are confident that we will reach this target by 2025.
CNC Group Holdings Limited
Strategic Report for the Year Ended 30 April 2023
Health and wellbeing
With a focus on physical and mental wellbeing across the entire organisation, Colemans is committed to our people. We have developed a structured programme of training and development together with wellbeing, reward and recruitment initiatives that give our teams the platform to succeed.
Colemans is investing in the development of The Skelligs Retreat, a global leading wellness retreat in Kerry, Ireland.
As well as regulatory compliance, we continue our focus on operational compliance and audit through investment in our Integrated Management System and the tools and systems which allow it to be implemented across the business. We believe we remain uniquely positioned to deliver the most complex schemes to the highest standards.
Outlook
Our objective is to drive continuous improvement in delivering a better service for our clients and building stronger relationships for collaboration. In doing so, we have created a business that can better withstand economic headwinds.
Colemans continues to apply strong risk management procedures at a corporate and project level to ensure we select the right projects that will deliver the expectations of our clients and stakeholders.
Key performance indicators
The group has developed an internal culture of key performance measures in order to monitor and continually improve management, objectivity and efficiencies at all levels.
Non-Financial KPI's
We have set targets for continued reduction in health and safety incident rates. Incidents are reviewed at business board meeting level, together with incident rate statistics, near misses and trend analysis to assist with prevention of future incidents.
Strategic plans, considered and implemented by the board, are designed to ensure the company maintains the highest standard of business conduct.
The company continues to advance training and professional development programmes for all employees, ensuring resilience from the industry skills shortage.
Financial Risk Management
Target |
30 April 2023 |
30 April 2022 |
||
Turnover |
12,983,392 |
11,736,354 |
||
Gross profit margin |
18% |
24.5% |
30.4% |
|
Profit before tax ratio |
5% |
2.1% |
21.7% |
CNC Group Holdings Limited
Strategic Report for the Year Ended 30 April 2023
Principal risks and uncertainties
The major risks to the group are considered to include:
Economic Risk:
Market uncertainties, exacerbated by global socio-political, economic events and changes in the economic environment, government policy and regulatory developments, including how the UK economy responds and adapts to the global events like military conflicts or regional economic disruption, can have a significant impact on new projects and the group's profitability.
Act of force majeure, including COVID-19 pandemic and extreme weather events could have operational and financial impact on the business.
Safety Risk:
The safe delivery of services is of paramount importance to us, with project appraisals considering risk analysis, buildability, value engineering, programme and logistics. The group is embracing digital technologies to drive continuous improvements in sustainability, efficiency and quality. We use the latest interactive technology in a common data environment to design detailed methodologies, reduce the risk of design errors and enhance project communication. However, while risks are minimised to the greatest possible extent, it remains the case that some of the activity is by its nature high risk.
Environmental risks:
As a responsible contractor, Colemans’ focus is on using innovative technologies and developing new ways of working that can reduce the environmental risk of our operations.
We are committed to progress and transparency, working safely and in collaboration with clients to help them on their net zero journey as we pursue our own. This includes developing environmentally friendly and less aggressive alternatives to the traditional methods of demolition, supported by outsourcing plant and equipment to enable the most appropriate and energy efficient plant and equipment for each individual project (e.g. electric powered).
Colemans is a proud member of the SME Climate Hub, a global initiative that empowers small to medium sized companies to take climate action and build more resilient businesses. We have also committed to PAS 2060 accreditation which will be in place by 2025.
We have invested heavily in market leading initiatives and are working with specialist Carbon Reduction Accountants to support our ambitious focus. As a result, we are confident of achieving net zero by 2025, well ahead of our target.
We recognise the need to educate our people and build strategies to deliver our ambitions, which must be well thought through, clear and enabled by effective communication along with external auditing.
Legislation:
The business has a strong focus on organisational design and accountabilities, which has supported the development of consistent processes and procedures, clear governance around key business decisions and the evolution of a strong compliance culture.
CNC Group Holdings Limited
Strategic Report for the Year Ended 30 April 2023
Competition Risk:
The sector is dynamic and in a state of constant evolution, but the directors believe that the group's focus on quality, innovation and on maintaining excellent stakeholder relationships are strong mitigating factors against the risks posed by competitors. The business has a number of framework agreements which reduces competition. The company has robust procedures in place to eliminate anti-competitive practices.
Contingent liabilities:
There continues to be an uncertainty in relation to a non-concluded enquiry into an incident 7 years ago, for which no further correspondence has been received from external authorities, as detailed in the notes to the financial statements.
Data security risk:
A loss of our key systems through a lack of resilience or an information break or attack threat would impact the successful delivery of projects and lead to loss of confidential data, damaging our reputation and brand. The company invests in appropriate IT solutions to combat this. Penetration tests have been carried out with an assessment of our data security which found that our data security is secure. Although we recognise continual investment in this area to ensure we maintain this high standard.
Financial risks:
The directors of the group continually monitor the risks and uncertainties facing the company with particular reference to price, liquidity and credit risks. They are confident that there are suitable policies in place and there are no material risks and uncertainties which have not been considered.
The group uses various financial instruments which include cash, trade debtors and trade creditors that arise from its operations. The main purpose of these financial instruments is to manage the group's daily operations.
Interest rate risk:
The group in not directly affected by interest rate rises as it has eliminated borrowings from financial institutions from its business model. However, this may have an indirect effect upon the business if this impacts activity in the construction industry as a whole.
Currency risk
The group makes very few transactions in foreign currencies so the exposure to translation and foreign exchange currency risk and do not consider this to have a significant impact on its operations.
Credit risk
The group's principal credit risk arises around trade debts. In order to manage credit risk the directors review debt aging on a regular basis to ensure debts are collected are received in line with agreed credit terms.
Liquidity risk
The group manages its financial risk by closely monitoring its working capital requirements and ensuring sufficient liquidity is available to meet foreseeable needs.
CNC Group Holdings Limited
Strategic Report for the Year Ended 30 April 2023
Objectives & Policies
The group has robust business ethics, regulatory compliance, training for all staff on modern slavery, anti-bribery and corruption, and competition law, with enhanced training for those who fulfil high-risk roles.
The group's policy is to establish and maintain long term strategic relationships where both parties’ interests are aligned to deliver mutual benefit.
Colemans is committed to our people and has built initiatives to support the physical and mental wellbeing of our people. We have developed a structured programme of training and development together with wellbeing, reward and recruitment initiatives that give our teams the platform to succeed.
The group continues to invest in our highly experienced and qualified staff and to engage with our professional subcontract supply chain to provide the services to all our clients.
By virtue of our breadth of activities we are well placed to recover, or harvest reusable materials, and have done so extensively, and have engaged with partners on take-back schemes to increase re-use and reduce waste of building materials from fixtures, fittings and structural steel work and precast concrete sections.
Our ESG (Environmental, Social and Governance) commitment is further supported by the continued development of lower carbon activities and resource optimization. Examples include the use of electric-powered plant, new methodologies that reduce water usage, increased use of digital resources to minimise travel and a continued commitment to recycling across all sites and offices.
Against a backdrop of macroeconomic uncertainty, we are focused on maintaining a strong cash position, low gearing - no debt, controlling costs and securing margin enhancing work in target markets to deliver greater certainty and value to all our stakeholders.
We are concentrating on delivering projects throughout the Midlands and London geographical areas and beyond, driving certainty for clients through value-led solutions rather than the race to the bottom, characterised by low margins and high-risk contracting, where understanding how to deliver on contracted commitments is an afterthought. These behaviours continue to plague our industry and remain entirely unsustainable.
In contrast, our activities are driven firstly by delivering a profitable performance and then focused on the scale of the turnover. We focus on being value-led, efficient and dependable rather than with an obsession for scale. We can do this because we understand our own value proposition and strive to deliver projects that are aligned with it.
Approved and authorised by the
......................................... |
CNC Group Holdings Limited
Directors' Report for the Year Ended 30 April 2023
The directors present their report and the for the year ended 30 April 2023.
Directors of the group
The directors who held office during the year were as follows:
Dividends
Particulars of dividends are detailed in Note 27 of the financial statements.
Information included in the Strategic Report
Strategic plans, considered and implemented by the board, are designed to ensure the company maintains the highest standard of business conduct.
Please refer to the strategic report on Page 2 regarding the financial overview, key performance indicators and principal risks and uncertainties.
Disclosure of information to the auditor
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Approved and authorised by the
......................................... |
CNC Group Holdings Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities 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 the 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 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 financial statements; and |
• |
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
CNC Group Holdings Limited
Independent Auditor's Report to the Members of CNC Group Holdings Limited
Opinion
We have audited the financial statements of CNC Group Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2023, which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the group's and parent company's affairs as at 30 April 2023 and of its profit for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor 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 or the parent company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
CNC Group Holdings Limited
Independent Auditor's Report to the Members of CNC Group Holdings Limited
We have nothing to report in this regard.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
• |
the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our 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 Strategic Report and Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the parent company financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors' remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities (set out on page 7), 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 the financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.
CNC Group Holdings Limited
Independent Auditor's Report to the Members of CNC Group Holdings Limited
Auditor 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:
We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to the applicable laws and regulations including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
We focussed on laws and regulations which could give risk to material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our test included agreeing the financial statements disclosures to underlying supporting documentation, enquiries with management and enquiries of legal counsel where considered necessary. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing of journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud. |
|
Audit response to risks identified:
|
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
CNC Group Holdings Limited
Independent Auditor's Report to the Members of CNC Group Holdings Limited
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in 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.
......................................
For and on behalf of
29 Wood Street
Warwickshire
CV37 6JG
CNC Group Holdings Limited
Consolidated Profit and Loss Account for the Year Ended 30 April 2023
Note |
30 April |
30 April |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Exceptional income |
- |
|
|
Operating profit |
|
|
|
Other interest receivable and similar income |
|
|
|
Interest payable and similar expenses |
( |
( |
|
41,509 |
(94,324) |
||
Profit before tax |
|
|
|
Tax on profit |
|
|
|
Profit for the financial year |
|
|
|
Profit/(loss) attributable to: |
|||
Owners of the company |
|
|
The group has no recognised gains or losses for the year other than the results above.
CNC Group Holdings Limited
Consolidated Statement of Comprehensive Income for the Year Ended 30 April 2023
30 April |
30 April |
|
Profit for the year |
|
|
Surplus on property, plant and equipment revaluation |
- |
|
Total comprehensive income for the year |
|
|
Total comprehensive income attributable to: |
||
Owners of the company |
|
|
CNC Group Holdings Limited
(Registration number: 04776218)
Consolidated Balance Sheet as at 30 April 2023
Note |
30 April |
(As restated) |
|
Fixed assets |
|||
Intangible assets |
|
|
|
Tangible assets |
|
|
|
Investment property |
|
|
|
Other financial assets |
31,409 |
31,409 |
|
|
|
||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
1,299 |
1,932 |
|
Capital redemption reserve |
633 |
- |
|
Revaluation reserve |
256,491 |
256,491 |
|
Other reserves |
(873,024) |
(873,024) |
|
Retained earnings |
6,994,407 |
7,257,992 |
|
Equity attributable to owners of the company |
6,379,806 |
6,643,391 |
|
Shareholders' funds |
6,379,806 |
6,643,391 |
Approved and authorised by the
......................................... |
CNC Group Holdings Limited
(Registration number: 04776218)
Balance Sheet as at 30 April 2023
Note |
30 April |
30 April |
|
Fixed assets |
|||
Intangible assets |
|
|
|
Tangible assets |
|
|
|
Investment property |
|
|
|
Investments |
|
|
|
|
|
||
Current assets |
|||
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
1,299 |
1,932 |
|
Capital redemption reserve |
633 |
- |
|
Revaluation reserve |
256,491 |
256,491 |
|
Retained earnings |
3,067,209 |
3,555,971 |
|
Shareholders' funds |
3,325,632 |
3,814,394 |
The company made a profit after tax for the financial year of £84,238 (2022 - profit of £3,044,235).
Approved and authorised by the
......................................... |
CNC Group Holdings Limited
Consolidated Statement of Changes in Equity for the Year Ended 30 April 2023
Equity attributable to the parent company
Share capital |
Capital redemption reserve |
Revaluation reserve |
Merger reserve |
Profit and loss account |
Total |
Total equity |
|
At 1 May 2022 |
|
- |
|
( |
|
|
|
Prior period adjustment |
- |
- |
- |
- |
|
|
|
At 1 May 2022 (As restated) |
|
- |
|
( |
|
|
|
Profit for the year |
- |
- |
- |
- |
|
|
|
Dividends |
- |
- |
- |
- |
( |
( |
( |
Purchase of own share capital |
(633) |
- |
- |
- |
(525,000) |
(525,633) |
(525,633) |
Other capital redemption reserve movements |
- |
633 |
- |
- |
- |
633 |
633 |
At 30 April 2023 |
|
|
|
( |
|
|
|
Share capital |
Revaluation reserve |
Merger reserve |
Other reserves |
Profit and loss account |
Total |
Total equity |
|
At 1 May 2021 |
|
- |
( |
|
|
|
|
Prior period adjustment |
- |
- |
- |
- |
|
|
|
At 1 May 2021 (As restated) |
|
- |
( |
|
|
|
|
Profit for the year |
- |
- |
- |
- |
|
|
|
Other comprehensive income |
- |
|
- |
- |
- |
|
|
Total comprehensive income |
- |
|
- |
- |
|
|
|
Dividends |
- |
- |
- |
- |
( |
( |
( |
Transfers |
- |
- |
- |
(141,806) |
141,806 |
- |
- |
CNC Group Holdings Limited
Consolidated Statement of Changes in Equity for the Year Ended 30 April 2023
Equity attributable to the parent company
Share capital |
Revaluation reserve |
Merger reserve |
Other reserves |
Profit and loss account |
Total |
Total equity |
|
At 30 April 2022 |
1,932 |
256,491 |
(873,024) |
- |
7,257,992 |
6,643,391 |
6,643,391 |
CNC Group Holdings Limited
Statement of Changes in Equity for the Year Ended 30 April 2023
Share capital |
Capital redemption reserve |
Revaluation reserve |
Retained earnings |
Total |
|
At 1 May 2022 |
|
- |
|
|
|
Profit for the year |
- |
- |
- |
|
|
Dividends |
- |
- |
- |
( |
( |
Purchase of own share capital |
(633) |
- |
- |
(525,000) |
(525,633) |
Other capital redemption reserve movements |
- |
633 |
- |
- |
633 |
At 30 April 2023 |
|
|
|
|
|
Share capital |
Revaluation reserve |
Other reserves |
Profit and loss account |
Total |
|
At 1 May 2021 |
|
- |
|
|
|
Profit for the year |
- |
- |
- |
|
|
Other comprehensive income |
- |
|
- |
- |
|
Total comprehensive income |
- |
|
- |
|
|
Dividends |
- |
- |
- |
( |
( |
Transfers |
- |
- |
(141,806) |
141,806 |
- |
At 30 April 2022 |
1,932 |
256,491 |
- |
3,555,971 |
3,814,394 |
CNC Group Holdings Limited
Consolidated Statement of Cash Flows for the Year Ended 30 April 2023
Note |
30 April |
(As restated) |
|
Cash flows from operating activities |
|||
Profit for the year |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Loss/(profit) on disposal of tangible assets |
|
( |
|
Finance income |
( |
( |
|
Finance costs |
|
|
|
Income tax expense |
( |
( |
|
|
|
||
Working capital adjustments |
|||
Decrease/(increase) in stocks |
|
( |
|
(Increase)/decrease in trade debtors |
( |
|
|
Increase/(decrease) in trade creditors |
|
( |
|
Cash generated from operations |
( |
|
|
Income taxes received |
|
|
|
Net cash flow from operating activities |
( |
|
|
Cash flows from investing activities |
|||
Interest received |
|
|
|
Acquisitions of tangible assets |
( |
( |
|
Proceeds from sale of tangible assets |
|
|
|
Acquisition of intangible assets |
( |
( |
|
Acquisition of investment properties |
( |
( |
|
Proceeds from sale of investment properties |
- |
|
|
Net cash flows from investing activities |
( |
|
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Payments for purchase of own shares |
( |
- |
|
Repayment of bank borrowing |
- |
( |
|
Redemption of shares classified as liabilities |
- |
( |
|
Payments to finance lease creditors |
- |
( |
|
Interest on preference shares |
- |
( |
|
Dividends paid |
( |
( |
|
Net cash flows from financing activities |
( |
( |
|
Net (decrease)/increase in cash and cash equivalents |
( |
|
CNC Group Holdings Limited
Consolidated Statement of Cash Flows for the Year Ended 30 April 2023
Note |
30 April |
(As restated) |
|
Cash and cash equivalents at 1 May |
|
|
|
Cash and cash equivalents at 30 April |
3,096,380 |
4,728,109 |
CNC Group Holdings Limited
Statement of Cash Flows for the Year Ended 30 April 2023
Note |
30 April |
30 April |
|
Cash flows from operating activities |
|||
Profit for the year |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Profit on disposal of tangible assets |
- |
( |
|
Finance income |
( |
( |
|
Finance costs |
|
|
|
Income tax expense |
|
( |
|
|
|
||
Working capital adjustments |
|||
Decrease in trade debtors |
|
|
|
(Decrease)/increase in trade creditors |
( |
|
|
Net cash flow from operating activities |
( |
|
|
Cash flows from investing activities |
|||
Interest received |
|
|
|
Acquisitions of tangible assets |
- |
( |
|
Proceeds from sale of tangible assets |
- |
|
|
Acquisition of intangible assets |
( |
( |
|
Acquisition of investment properties |
( |
( |
|
Proceeds from sale of investment properties |
- |
|
|
Net cash flows from investing activities |
( |
|
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Payments for purchase of own shares |
( |
- |
|
Repayment of bank borrowing |
- |
( |
|
Repayment of other borrowing |
- |
( |
|
Redemption of shares classified as liabilities |
- |
( |
|
Interest on preference shares |
- |
( |
|
Dividends paid |
( |
( |
|
Net cash flows from financing activities |
( |
( |
|
Net (decrease)/increase in cash and cash equivalents |
( |
|
|
Cash and cash equivalents at 1 May |
|
|
|
Cash and cash equivalents at 30 April |
585,067 |
2,317,810 |
CNC Group Holdings Limited
Notes to the Financial Statements for the Year Ended 30 April 2023
General information |
The company is a private company limited by share capital, incorporated in England & Wales.
The address of its registered office is:
These financial statements were authorised for issue by the
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The financial statements are prepared in Sterling which is the functional currency of the group and company, and are rounded to the nearest £1.
Summary of disclosure exemptions
The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements..
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 30 April 2023.
CNC Group Holdings Limited
Notes to the Financial Statements for the Year Ended 30 April 2023
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.
CNC Group Holdings Limited issued shares credited as fully paid as consideration for the acquisition of Coleman & Company Limited, as if it had always been owned. Accordingly, the whole results, assets, liabilities and shareholders funds of the merged companies are consolidated regardless of the actual merger date.
Therefore, the group continues to recognise a merger reserve which arose on a past business combination that was accounted for as a merger in accordance with UK GAAP as applied at that time.
CNC Group Holdings Limited
Notes to the Financial Statements for the Year Ended 30 April 2023
Judgements
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
Critical accounting estimates and assumptions |
The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. |
Long term contracts |
Income is recognised based on costs incurred to date as a percentage of the total expected costs on the contract, which is deemed best estimate of the stage of completion of each project. Provisions have been made on contracts where there are disputes, damages or foreseeable losses. Losses are provided in full in the period the contract is forecast to make a loss. |
Impairment of debtors |
The company makes an estimate of the recoverable value of trade and other debtors. When assessing the impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. |
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the group’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the group.
The group recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the group's activities.
CNC Group Holdings Limited
Notes to the Financial Statements for the Year Ended 30 April 2023
Contract revenue recognition
Long term contracts
The Group enters into long term contracts and projects and recognises revenue and costs associated with the contract using the percentage of completion method.
Percentage of completion is determined by comparing the proportion of costs incurred for work performed to date against the estimated total costs. Costs incurred for work performed to date do not include costs relating to future activity, such as prepayments. Costs relating to such future activity are recognised as an asset only if it is probable that such costs will be recovered. Where the recovery of such costs is not probable then an expense is recognised immediately.
Management recognise revenue and profits from the start of the project. Costs are included based on best estimate.
Regular contract reviews are performed by senior and project staff, management support the process.
Where it is probable that contract costs will exceed total contract revenue the expected loss is immediately recognised.
Scrap income
Revenue from scrap income is recognised at the point of sale.
Retention income
Revenue from retentions is recognised as they are paid.
Rental income
Rental income is recognised on a straight line basis over the life of the contract.
Government grants
Grants are accounted for under he accruals model as permitted by FRS 102. Grants relating to expenditure on tangible assets are credited to the Consolidated Statement of Comprehensive Income at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised on the Consolidated Statement of Comprehensive Income in the same period as the related expenditure.
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
CNC Group Holdings Limited
Notes to the Financial Statements for the Year Ended 30 April 2023
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the consolidated financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Freehold property |
2% straight line |
Improvements to leasehold property |
straight line basis over the life of the lease |
Plant and machinery |
Straight line of 10 - 20% to a residual value of 15%, followed by straight line depreciation of the residual NBV over the lower of remaining life and 5 years. |
Investment property
Business combinations
Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.
CNC Group Holdings Limited
Notes to the Financial Statements for the Year Ended 30 April 2023
Intangible assets
Separately acquired trademarks and licences are shown at historical cost.
Trademarks, licences (including software) and customer-related intangible assets acquired in a business combination are recognised at fair value at the acquisition date.
Trademarks, licences and customer-related intangible assets have a finite useful life and are carried at cost less accumulated amortisation and any accumulated impairment losses.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Computer software |
3 years straight line |
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the receivables.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
CNC Group Holdings Limited
Notes to the Financial Statements for the Year Ended 30 April 2023
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Provisions
Provisions are made where an event has taken place that gives the group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to Consolidated Statement of Comprehensive Income in the year that the group becomes aware of the obligation, and are measured at the best estimate at the Balance Sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Asset held under finance leases are recognised at the lower of their fair value at the inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as finance lease obligation.
Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
CNC Group Holdings Limited
Notes to the Financial Statements for the Year Ended 30 April 2023
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the group’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Financial instruments
Classification
Preference shares are measured at fair value with changes recognised in the Consolidated Statement of Comprehensive Income if the shares are publicly traded or their fair value can otherwise be measured reliably.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flow and subsequently at amortised costs using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount if cash or other consideration expected to be paid or received.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised it the Consolidated Statement of Comprehensive Income.
CNC Group Holdings Limited
Notes to the Financial Statements for the Year Ended 30 April 2023
Revenue |
The analysis of the group's turnover for the year from continuing operations is as follows:
30 April |
30 April |
|
Sale of goods |
|
|
Rental income from investment property |
- |
|
Other revenue |
|
|
|
|
Exceptional income |
30 April |
30 April |
|
Profit from tangible asset disposal |
- |
|
Operating profit |
Arrived at after charging/(crediting)
30 April |
30 April |
|
Depreciation expense |
|
|
Operating lease expense - plant and machinery |
- |
|
Loss/(profit) on disposal of property, plant and equipment |
|
( |
Government grants |
The amount of grants recognised in the financial statements was £Nil (2022 - £
Other interest receivable and similar income |
30 April |
30 April |
|
Interest income on bank deposits |
|
|
Other finance income |
( |
|
|
|
CNC Group Holdings Limited
Notes to the Financial Statements for the Year Ended 30 April 2023
Interest payable and similar expenses |
30 April |
30 April |
|
Interest on bank overdrafts and borrowings |
|
|
Interest on preference shares |
- |
|
Interest expense on other finance liabilities |
( |
|
Foreign exchange gains |
- |
|
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
30 April |
30 April |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
|
|
CNC Group Holdings Limited
Notes to the Financial Statements for the Year Ended 30 April 2023
The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:
30 April |
30 April |
|
Production |
|
|
Administration and support |
|
|
Sales |
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
30 April |
30 April |
|
Remuneration |
|
|
Contributions paid to money purchase schemes |
|
|
573,312 |
648,627 |
During the year the number of directors who were receiving benefits and share incentives was as follows:
30 April |
30 April |
|
Accruing benefits under money purchase pension scheme |
|
|
In respect of the highest paid director:
30 April |
30 April |
|
Remuneration |
|
|
Company contributions to money purchase pension schemes |
- |
|
CNC Group Holdings Limited
Notes to the Financial Statements for the Year Ended 30 April 2023
Auditors' remuneration |
30 April |
30 April |
|
Audit of these financial statements |
7,000 |
9,573 |
Audit of the financial statements of subsidiaries of the company pursuant to legislation |
28,158 |
32,215 |
|
|
Taxation |
Tax charged/(credited) in the consolidated profit and loss account
30 April |
30 April |
|
Current taxation |
||
UK corporation tax |
( |
( |
UK corporation tax adjustment to prior periods |
- |
( |
(50,000) |
(142,269) |
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
|
( |
Tax receipt in the income statement |
( |
( |
CNC Group Holdings Limited
Notes to the Financial Statements for the Year Ended 30 April 2023
The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2022 - the same as the standard rate of corporation tax in the UK) of
The differences are reconciled below:
30 April |
30 April |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
Effect of tax losses |
( |
( |
Deferred tax credit from unrecognised tax loss or credit |
- |
( |
Decrease in UK and foreign current tax from adjustment for prior periods |
- |
( |
Tax decrease from effect of capital allowances and depreciation |
( |
( |
Tax increase from effect of unrelieved tax losses carried forward |
- |
|
Tax decrease from effect of adjustment in research and development tax credit |
( |
( |
Tax decrease from effect of indexation allowance on capital gains |
- |
( |
Total tax credit |
( |
( |
Deferred tax
Group
Deferred tax assets and liabilities
2023 |
Asset |
Liability |
Accelerated capital allowances |
- |
|
Fair value gains on investment properties |
- |
|
- |
|
2022 |
Asset |
Liability |
Accelerated capital allowances |
- |
|
Fair value gains on investment properties |
- |
|
- |
|
Company
Deferred tax assets and liabilities
2023 |
Asset |
Liability |
Accelerated capital allowances |
- |
|
Fair value gains on investment properties |
- |
|
- |
|
CNC Group Holdings Limited
Notes to the Financial Statements for the Year Ended 30 April 2023
2022 |
Asset |
Liability |
Accelerated capital allowances |
- |
|
Fair value gains on investment properties |
- |
|
- |
|
Intangible assets |
Group
Trademarks, patents and licenses |
Other intangible assets |
Total |
|
Cost or valuation |
|||
At 1 May 2022 |
|
|
|
Additions acquired separately |
|
- |
|
At 30 April 2023 |
|
|
|
Amortisation |
|||
At 1 May 2022 |
- |
|
|
At 30 April 2023 |
- |
|
|
Carrying amount |
|||
At 30 April 2023 |
|
- |
|
At 30 April 2022 |
|
- |
|
Company
Trademarks, patents and licenses |
Total |
|
Cost or valuation |
||
At 1 May 2022 |
|
|
Additions acquired separately |
|
|
At 30 April 2023 |
|
|
Amortisation |
||
Carrying amount |
||
At 30 April 2023 |
|
|
At 30 April 2022 |
|
|
CNC Group Holdings Limited
Notes to the Financial Statements for the Year Ended 30 April 2023
Tangible assets |
Group
Land and buildings |
Fixtures and fittings |
Plant and machinery |
Office equipment |
Total |
|
Cost or valuation |
|||||
At 1 May 2022 |
|
|
|
|
|
Additions |
- |
- |
|
|
|
Disposals |
- |
- |
( |
- |
( |
At 30 April 2023 |
|
|
|
|
|
Depreciation |
|||||
At 1 May 2022 |
|
|
|
|
|
Charge for the year |
|
|
|
|
|
Eliminated on disposal |
- |
- |
( |
- |
( |
At 30 April 2023 |
|
|
|
|
|
Carrying amount |
|||||
At 30 April 2023 |
|
|
|
|
|
At 30 April 2022 |
|
|
|
|
|
Included within the net book value of land and buildings above is £974,830 (2022 - £991,533) in respect of freehold land and buildings and £Nil (2022 - £Nil) in respect of long leasehold land and buildings.
Revaluation
The fair value of the group's land and buildings was revalued on
Had this class of asset been measured on a historical cost basis, the carrying amount would have been £
CNC Group Holdings Limited
Notes to the Financial Statements for the Year Ended 30 April 2023
Company
Land and buildings |
Plant and machinery |
Total |
|
Cost or valuation |
|||
At 1 May 2022 |
|
|
|
At 30 April 2023 |
|
|
|
Depreciation |
|||
At 1 May 2022 |
|
|
|
Charge for the year |
|
|
|
At 30 April 2023 |
|
|
|
Carrying amount |
|||
At 30 April 2023 |
|
|
|
At 30 April 2022 |
|
|
|
Included within the net book value of land and buildings above is £974,830 (2022 - £991,533) in respect of freehold land and buildings.
Revaluation
The fair value of the company's land and buildings was revalued on
Had this class of asset been measured on a historical cost basis, the carrying amount would have been £
CNC Group Holdings Limited
Notes to the Financial Statements for the Year Ended 30 April 2023
Investment properties |
Group and Company
30 April |
|
At 1 May |
|
Additions |
|
At 30 April |
|
Investment properties are recorded at cost, which is considered by the directors to reflect their market value when they were acquired. The properties, which were acquired in the year ended 30 April 2022 and 2023, and are expected to be revalued in 2025, are considered by the directors to reflect their fair value at the balance sheet date.
Investments |
Company
30 April |
30 April |
|
Investments in subsidiaries |
|
|
Subsidiaries |
£ |
Cost or valuation |
|
At 1 May 2022 |
|
Provision |
|
At 1 May 2022 |
|
Carrying amount |
|
At 30 April 2023 |
|
At 30 April 2022 |
|
CNC Group Holdings Limited
Notes to the Financial Statements for the Year Ended 30 April 2023
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
2023 |
2022 |
|||
Subsidiary undertakings |
||||
|
Shady Lane
England & Wales |
|
|
|
|
Shady Lane
England & Wales |
|
|
|
|
Selecta Avenue
England & Wales |
|
|
|
|
Shady Lane
England & Wales |
|
|
|
|
Shady Lane
England & Wales |
|
|
|
|
Shady Lane
England & Wales |
|
|
|
|
Shady Lane
England & Wales |
|
|
|
CNC Group Holdings Limited
Notes to the Financial Statements for the Year Ended 30 April 2023
Subsidiary undertakings |
Coleman & Company Limited The principal activity of Coleman & Company Limited is |
Coleman Remediation Services Limited The principal activity of Coleman Remediation Services Limited is |
Coleman & Company Specialist Cutting Services Limited The principal activity of Coleman & Company Specialist Cutting Services Limited is |
Coleman & Company Plant Hire Limited The principal activity of Coleman & Company Plant Hire Limited is |
Coleman Regeneration Limited The principal activity of Coleman Regeneration Limited is |
Coleman Engineering Services Limited The principal activity of Coleman Engineering Services Limited is |
Completely Engineered Solutions Limited The principal activity of Completely Engineered Solutions Limited is |
CNC Group Holdings Limited
Notes to the Financial Statements for the Year Ended 30 April 2023
Other financial assets |
Group
Financial assets at cost less impairment |
Total |
|
Non-current financial assets |
||
Cost or valuation |
||
At 1 May 2022 |
31,409 |
31,409 |
At 30 April 2023 |
31,409 |
31,409 |
Impairment |
||
Carrying amount |
||
At 30 April 2023 |
|
31,409 |
Stocks |
Group |
Company |
|||
30 April |
30 April |
30 April |
30 April |
|
Other inventories |
|
|
- |
- |
CNC Group Holdings Limited
Notes to the Financial Statements for the Year Ended 30 April 2023
Debtors |
Group |
Company |
||||
Current |
Note |
30 April |
(As restated) |
30 April |
30 April |
Trade debtors |
|
|
- |
|
|
Amounts owed by related parties |
|
|
|
|
|
Other debtors |
|
|
|
|
|
Prepayments |
|
|
|
|
|
Gross amount due from customers for contract work |
|
|
- |
|
|
Income tax asset |
|
|
- |
- |
|
|
|
|
|
Cash and cash equivalents |
Group |
Company |
|||
30 April |
30 April |
30 April |
30 April |
|
Cash on hand |
- |
|
- |
- |
Cash at bank |
|
|
|
|
Short-term deposits |
|
|
- |
- |
|
|
|
|
CNC Group Holdings Limited
Notes to the Financial Statements for the Year Ended 30 April 2023
Creditors |
Group |
Company |
||||
Note |
30 April |
30 April |
30 April |
30 April |
|
Due within one year |
|||||
Trade creditors |
|
|
|
|
|
Amounts due to related parties |
|
|
|
|
|
Social security and other taxes |
|
|
- |
- |
|
Outstanding defined contribution pension costs |
|
|
- |
- |
|
Other payables |
|
|
- |
- |
|
Accruals |
|
|
|
|
|
Income tax liability |
30,405 |
30,405 |
30,405 |
30,405 |
|
|
|
|
|
||
Due after one year |
|||||
Loans and borrowings |
|
|
- |
- |
CNC Group Holdings Limited
Notes to the Financial Statements for the Year Ended 30 April 2023
Provisions for liabilities |
Group
Deferred tax |
Total |
|
At 1 May 2022 |
|
|
Additional provisions |
|
|
At 30 April 2023 |
|
|
|
Company
Deferred tax |
Total |
|
At 1 May 2022 |
|
|
Additional provisions |
|
|
At 30 April 2023 |
|
|
|
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £
Contributions totalling £
Share capital |
Allotted, called up and fully paid shares
30 April |
30 April |
|||
No. |
£ |
No. |
£ |
|
|
|
650 |
|
650 |
|
|
649 |
|
649 |
|
- |
- |
|
633 |
|
|
|
|
The "A", "B" and "C" shares rank pari passu for all purposes except that the directors may at any time resolve to declare a dividend on one or more classes of share and not one or other classes.
CNC Group Holdings Limited
Notes to the Financial Statements for the Year Ended 30 April 2023
Loans and borrowings |
Group |
Company |
|||
30 April |
30 April |
30 April |
30 April |
|
Non-current loans and borrowings |
||||
Redeemable preference shares |
|
|
- |
- |
Group
Other borrowings
Preference shares classified as debt is denominated in Sterling with a nominal interest rate of 5%. The carrying amount at year end is £2,692 (2022 - £2,692).
In April 2017 the group issued 5% preference shares that the group are obliged to redeem between April 2024 but no later than April 2029. Shares are redeemable in minimum multiples of £35,000 at an amount equal to the issue price plus 10% of the issue price.
Preference shares carry no voting rights.
Obligations under leases and hire purchase contracts |
Group
Operating leases
The total of future minimum lease payments is as follows:
30 April |
30 April |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Company
Operating leases
The total of future minimum lease payments is as follows:
30 April |
30 April |
|
Not later than one year |
|
|
Later than one year and not later than five years |
- |
|
|
|
CNC Group Holdings Limited
Notes to the Financial Statements for the Year Ended 30 April 2023
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Operating leases - lessor
The total of future minimum lease payments is as follows:
30 April |
30 April |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
|
|
Total contingent rents recognised as income in the period are £Nil (2022 - £Nil).
Dividends |
Interim dividends paid
30 April |
30 April |
|||
Interim dividend of £ |
|
|
||
Interim dividend of £Nil per each |
- |
- |
||
Interim dividend of £Nil per each |
- |
- |
||
|
|
Contingent liabilities |
Group
During 2017 financial statements the company experienced an incident on a major contract.
Causation of the incident is still unknown, and the matter continues to be investigated by the appropriate authorities. The company continues to co-operate fully with all involved.
Based upon rigorous inquiries undertaken by independent specialists and on professional advice, the directors do not believe the company is responsible for the cause of the incident.
It is totally impracticable for the directors to provide any estimate of the financial liability, if any, arising from the matter, and the likely timescale for it to be settled. However, the directors are confident that comprehensive insurance arrangements, with adequate limits of indemnity, exist to cover the financial consequences should any liability attach.
At the period end the group had committed to surety for performance bonds on contracts in the sum of £262,095 (2022 - £80,000).
CNC Group Holdings Limited
Notes to the Financial Statements for the Year Ended 30 April 2023
Related party transactions |
Group
Dividends paid to directors
30 April |
30 April |
|||
Mr M A Coleman |
||||
Dividends paid |
48,000 |
304,000 |
||
Summary of transactions with other related parties
Amounts of £Nil (2022 - £49,020) are included in other debtors for payments made on behalf of the scheme at the balance sheet date.
Skelligs Site Services Limited and Skelligs Retreat Limited
Skelligs Site Services Limited and Skelligs Retreat Limited are companies registered in the Republic of Ireland which are owned by M A Coleman, director. At the balance sheet date amounts of £95,152 (2022: £115,507) were owed to the group.
Controlling party |
The ultimate controlling party is