REGISTERED NUMBER: 11952409 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 |
FOR |
VIS GROUP LIMITED |
REGISTERED NUMBER: 11952409 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 |
FOR |
VIS GROUP LIMITED |
VIS GROUP LIMITED (REGISTERED NUMBER: 11952409) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
for the Year Ended 31 MARCH 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 7 |
Consolidated Income Statement | 10 |
Consolidated Other Comprehensive Income | 11 |
Consolidated Balance Sheet | 12 |
Company Balance Sheet | 14 |
Consolidated Statement of Changes in Equity | 15 |
Company Statement of Changes in Equity | 16 |
Consolidated Cash Flow Statement | 17 |
Notes to the Consolidated Cash Flow Statement | 18 |
Notes to the Consolidated Financial Statements | 20 |
VIS GROUP LIMITED |
COMPANY INFORMATION |
for the Year Ended 31 MARCH 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
and Statutory Auditor |
61 Queen Square |
Bristol |
BS1 4JZ |
VIS GROUP LIMITED (REGISTERED NUMBER: 11952409) |
GROUP STRATEGIC REPORT |
for the Year Ended 31 MARCH 2023 |
The directors present their strategic report of the company and the group for the year ended 31 March 2023. |
REVIEW OF BUSINESS |
The Directors are very pleased to be able to report another very successful year of trading. |
Despite difficult trading conditions the group has seen an increase in growth in this financial year, with turnover increasing by 132% to £52.6M from £22.6M the previous year. |
Profit before taxation for the year was £3.78M and the net assets of the group have increased to £3.86M. |
Maintenance & Contracting Services Ltd (MCS) has again continued to benefit from consistent repeat work from some of the UK's biggest main contractors. |
The strategy initiated in our previous financial year has allowed us to further strengthen our existing client relations and continue the substantial increase in turnover also seen in 2020/21. |
As MCS have demonstrated in previous years of accounting, it is a key objective for us to have a period of substantial growth followed by a year of stabilisation, which we have achieved with growth in 2022/23 after |
last year's results. |
Next year's strategy is to focus on strengthening the relationships in our small client base and to build on the mean order value of our contracts. At the time of publication of these financial statements, actual secured revenue work for 2023/24 is in excess of £55M. |
Our consistent increase in turnover over recent years, and further projected significant increases in turnover for the next five years, is in line with the company's ambition of sustainable long-term growth. |
MCS Integrated Solutions Limited, focusing on small works and Facilities Management opportunities, has remained stable. From October 2022, MCS Integrated Solutions has been under new leadership, and key objectives for growth have been set. The forward order book for MCS Integrated Solutions is also looking strong with further FM contracts and tier 2 reactive works orders having been secured. |
On 28 October 2022, the group acquired the entire issued share capital of Safety Test UK Ltd, a company specialising in electrical inspection and testing, to enhance the group's service offering. |
VIS GROUP LIMITED (REGISTERED NUMBER: 11952409) |
GROUP STRATEGIC REPORT |
for the Year Ended 31 MARCH 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The commercial activities of Maintenance & Contracting Services Ltd and MCS Integrated Solutions Limited are subject to risks which are constantly monitored and evaluated by the directors. Key areas of risk include the financial stability of clients and suppliers together with the economic activity of the industry sector, risks exacerbated in the period by the impact of the COVID-19 pandemic. |
There is no currency risk exposure as the group does not trade overseas. |
Liquidity risk is managed by forecasting future cash flow requirements of the business and by monitoring and maintaining sufficient bank balances to meet these. To mitigate risks posed by the economic outlook the directors continue to carefully manage cash and costs. |
The group manages its credit risk exposure by trading only with credit worthy clients, ensuring up to date credit ratings are monitored for key client accounts. |
The group also monitors the concentration of its trading activities by customer to help mitigate over-reliance upon key customers. |
KEY PERFORMANCE INDICATORS |
The board's preferred measure of underlying performance is earnings before interest, taxation, |
depreciation and amortisation ("EBITDA"). 2023 EBITDA was £3,936,468 (2022 - £1,631,159). |
The reconciliation of group EBITDA to the financial statements is: |
2023 | 2022 |
£'000 | £'000 |
Operating profit | 3,810 | 1,558 |
Add back: |
Depreciation (Note 4) | 98 | 62 |
Amortisation (Note 4) | 28 | 28 |
(Profit) on disposal of fixed assets (Note 4) | - | (17 | ) |
EBITDA | 3,936 | 1,631 |
VIS GROUP LIMITED (REGISTERED NUMBER: 11952409) |
GROUP STRATEGIC REPORT |
for the Year Ended 31 MARCH 2023 |
GOING CONCERN |
No material uncertainties that cast significant doubt about the ability of the group and the company to continue as a going concern have been identified by the directors. |
ON BEHALF OF THE BOARD: |
VIS GROUP LIMITED (REGISTERED NUMBER: 11952409) |
REPORT OF THE DIRECTORS |
for the Year Ended 31 MARCH 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 March 2023. |
PRINCIPAL ACTIVITIES |
The principal activities of the group in the year under review were those of providing high quality mechanical and electrical contracting services. |
DIVIDENDS |
Dividends paid in the year are disclosed in the notes to the financial statements. No final dividend is recommended by the directors. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2022 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
VIS GROUP LIMITED (REGISTERED NUMBER: 11952409) |
REPORT OF THE DIRECTORS |
for the Year Ended 31 MARCH 2023 |
AUDITORS |
The auditors, Burnside, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
VIS GROUP LIMITED |
Opinion |
We have audited the financial statements of VIS Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement, Notes to the Consolidated Cash Flow Statement, 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 of the parent company affairs as at 31 March 2023 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
VIS GROUP LIMITED |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
VIS GROUP LIMITED |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
An understanding of the legal and regulatory framework applicable to the entity was obtained from management and those charged with governance of the entity and its subsidiaries, and the audit engagement team was confirmed to have the appropriate competence and capabilities to identify non-compliance with such a framework. |
No significant instances of fraud, non-compliance with laws and regulations or other irregularities were communicated to the engagement team by management or those charged with governance, and no particular audit areas or legislation were identified that gave rise to any significant risks of material misstatement in respect of such irregularities. |
Due to the size and nature of the entity, its susceptibility to material misstatement resulting from fraud, non-compliance with laws and regulations, or other irregularities is considered to be low, and the audit approach was appropriately planned so as to address this risk. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants |
and Statutory Auditor |
61 Queen Square |
Bristol |
BS1 4JZ |
VIS GROUP LIMITED (REGISTERED NUMBER: 11952409) |
CONSOLIDATED INCOME STATEMENT |
for the Year Ended 31 MARCH 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 52,653,583 | 22,645,296 |
Cost of sales | 41,827,381 | 17,016,334 |
GROSS PROFIT | 10,826,202 | 5,628,962 |
Administrative expenses | 7,016,256 | 4,070,755 |
OPERATING PROFIT | 4 | 3,809,946 | 1,558,207 |
Interest receivable and similar income | 16,885 | 253 |
3,826,831 | 1,558,460 |
Interest payable and similar expenses | 5 | 46,577 | 18,768 |
PROFIT BEFORE TAXATION | 3,780,254 | 1,539,692 |
Tax on profit | 6 | 630,203 | 246,242 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 2,312,512 | 776,805 |
Non-controlling interests | 837,539 | 516,645 |
3,150,051 | 1,293,450 |
VIS GROUP LIMITED (REGISTERED NUMBER: 11952409) |
CONSOLIDATED OTHER COMPREHENSIVE INCOME |
for the Year Ended 31 MARCH 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 3,150,051 | 1,293,450 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
3,150,051 |
1,293,450 |
Total comprehensive income attributable to: |
Owners of the parent | 2,312,512 | 776,805 |
Non-controlling interests | 837,539 | 516,645 |
3,150,051 | 1,293,450 |
VIS GROUP LIMITED (REGISTERED NUMBER: 11952409) |
CONSOLIDATED BALANCE SHEET |
31 MARCH 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 | 834,967 | 503,092 |
Tangible assets | 10 | 881,534 | 941,217 |
Investments | 11 |
Interest in associate | 1 | 1 |
1,716,502 | 1,444,310 |
CURRENT ASSETS |
Stocks | 12 | 28,566 | 34,567 |
Debtors | 13 | 9,253,104 | 8,668,234 |
Cash at bank and in hand | 2,256,658 | 1,000,343 |
11,538,328 | 9,703,144 |
CREDITORS |
Amounts falling due within one year | 14 | 8,380,832 | 7,290,425 |
NET CURRENT ASSETS | 3,157,496 | 2,412,719 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
4,873,998 |
3,857,029 |
CREDITORS |
Amounts falling due after more than one year |
15 |
(1,001,047 |
) |
(1,297,067 |
) |
PROVISIONS FOR LIABILITIES | 19 | (12,059 | ) | (19,125 | ) |
NET ASSETS | 3,860,892 | 2,540,837 |
VIS GROUP LIMITED (REGISTERED NUMBER: 11952409) |
CONSOLIDATED BALANCE SHEET - continued |
31 MARCH 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
CAPITAL AND RESERVES |
Called up share capital | 20 | 70 | 70 |
Share premium | 21 | 1,310,176 | 1,310,176 |
Retained earnings | 21 | 1,892,194 | 848,218 |
SHAREHOLDERS' FUNDS | 3,202,440 | 2,158,464 |
NON-CONTROLLING INTERESTS | 658,452 | 382,373 |
TOTAL EQUITY | 3,860,892 | 2,540,837 |
The financial statements were approved by the Board of Directors and authorised for issue on 7 November 2023 and were signed on its behalf by: |
S Hill - Director |
VIS GROUP LIMITED (REGISTERED NUMBER: 11952409) |
COMPANY BALANCE SHEET |
31 MARCH 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
Investments | 11 |
CURRENT ASSETS |
Debtors | 13 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Share premium | 21 |
Retained earnings | 21 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 1,279,043 | 1,124,026 |
The financial statements were approved by the Board of Directors and authorised for issue on |
VIS GROUP LIMITED (REGISTERED NUMBER: 11952409) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
for the Year Ended 31 MARCH 2023 |
Called up |
share | Retained | Share |
capital | earnings | premium |
£ | £ | £ |
Balance at 1 April 2021 | 70 | 835,403 | 1,310,176 |
Changes in equity |
Dividends | - | (763,990 | ) | - |
Total comprehensive income | - | 776,805 | - |
Balance at 31 March 2022 | 70 | 848,218 | 1,310,176 |
Changes in equity |
Dividends | - | (1,268,536 | ) | - |
Total comprehensive income | - | 2,312,512 | - |
70 | 1,892,194 | 1,310,176 |
Non-controlling interest arising on business combination |
- |
- |
- |
Balance at 31 March 2023 | 70 | 1,892,194 | 1,310,176 |
Non-controlling | Total |
Total | interests | equity |
£ | £ | £ |
Balance at 1 April 2021 | 2,145,649 | 392,766 | 2,538,415 |
Changes in equity |
Dividends | (763,990 | ) | (527,038 | ) | (1,291,028 | ) |
Total comprehensive income | 776,805 | 516,645 | 1,293,450 |
Balance at 31 March 2022 | 2,158,464 | 382,373 | 2,540,837 |
Changes in equity |
Dividends | (1,268,536 | ) | (576,640 | ) | (1,845,176 | ) |
Total comprehensive income | 2,312,512 | 837,539 | 3,150,051 |
3,202,440 | 643,272 | 3,845,712 |
Non-controlling interest arising on business combination |
- |
15,180 |
15,180 |
Balance at 31 March 2023 | 3,202,440 | 658,452 | 3,860,892 |
VIS GROUP LIMITED (REGISTERED NUMBER: 11952409) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
for the Year Ended 31 MARCH 2023 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 April 2021 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31 March 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31 March 2023 |
VIS GROUP LIMITED (REGISTERED NUMBER: 11952409) |
CONSOLIDATED CASH FLOW STATEMENT |
for the Year Ended 31 MARCH 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 4,058,836 | (351,991 | ) |
Interest paid | (42,493 | ) | (17,067 | ) |
Interest element of hire purchase payments paid |
(4,084 |
) |
(1,701 |
) |
Tax paid | (231,655 | ) | (127,571 | ) |
Net cash from operating activities | 3,780,604 | (498,330 | ) |
Cash flows from investing activities |
Purchase of tangible fixed assets | (19,015 | ) | (812,236 | ) |
Purchase of fixed asset investments | - | (1 | ) |
Sale of tangible fixed assets | - | 19,224 |
Acquisition of subsidiary | (374,438 | ) | - |
Interest received | 16,885 | 253 |
Net cash from investing activities | (376,568 | ) | (792,760 | ) |
Cash flows from financing activities |
Loan repayments in year | (266,980 | ) | (586,096 | ) |
HP capital repayments in year | (33,493 | ) | (13,956 | ) |
Amount withdrawn by directors | (2,072 | ) | - |
Equity dividends paid | (1,268,536 | ) | (763,990 | ) |
Dividends paid to minority interests | (576,640 | ) | (527,038 | ) |
Net cash from financing activities | (2,147,721 | ) | (1,891,080 | ) |
Increase/(decrease) in cash and cash equivalents | 1,256,315 | (3,182,170 | ) |
Cash and cash equivalents at beginning of year |
2 |
1,000,343 |
4,182,513 |
Cash and cash equivalents at end of year |
2 |
2,256,658 |
1,000,343 |
VIS GROUP LIMITED (REGISTERED NUMBER: 11952409) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
for the Year Ended 31 MARCH 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation | 3,780,254 | 1,539,692 |
Depreciation charges | 126,522 | 90,182 |
Profit on disposal of fixed assets | - | (17,230 | ) |
Finance costs | 46,577 | 18,768 |
Finance income | (16,885 | ) | (253 | ) |
3,936,468 | 1,631,159 |
Decrease in stocks | 8,001 | 17,750 |
Increase in trade and other debtors | (550,258 | ) | (4,070,040 | ) |
Increase in trade and other creditors | 664,625 | 2,069,140 |
Cash generated from operations | 4,058,836 | (351,991 | ) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 March 2023 |
31.3.23 | 1.4.22 |
£ | £ |
Cash and cash equivalents | 2,256,658 | 1,000,343 |
Year ended 31 March 2022 |
31.3.22 | 1.4.21 |
£ | £ |
Cash and cash equivalents | 1,000,343 | 4,182,513 |
VIS GROUP LIMITED (REGISTERED NUMBER: 11952409) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
for the Year Ended 31 MARCH 2023 |
3. | ANALYSIS OF CHANGES IN NET (DEBT)/FUNDS |
At 1.4.22 | Cash flow | At 31.3.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,000,343 | 1,256,315 | 2,256,658 |
1,000,343 | 1,256,315 | 2,256,658 |
Debt |
Finance leases | (86,525 | ) | 33,493 | (53,032 | ) |
Debts falling due within 1 year | (269,869 | ) | 4,453 | (265,416 | ) |
Debts falling due after 1 year | (1,244,035 | ) | 262,527 | (981,508 | ) |
(1,600,429 | ) | 300,473 | (1,299,956 | ) |
Total | (600,086 | ) | 1,556,788 | 956,702 |
4. | ACQUISITION OF BUSINESS |
On 28 October 2022, the group acquired the entire issued share capital of Safety Test UK Ltd, a company registered in England and Wales. The net assets acquired and the consideration were as follows: |
£ |
Fixed assets | 19,873 |
Intangible fixed assets | 1 |
Stocks | 2,000 |
Debtors | 46,177 |
Creditors | (38,258 | ) |
Less minority interest share | (15,180 | ) |
14,613 |
Consideration, net cash | 374,438 |
Goodwill recognised | 359,825 |
Consideration was £398,862 in cash, less £14,424 cash acquired in the company. Goodwill will be amortised over its estimated useful life of 20 years. Since the acquisition date, the group has recognised £140,382 revenue and £10,016 profit after tax in respect of Safety Test UK Ltd in these consolidated financial statements. |
VIS GROUP LIMITED (REGISTERED NUMBER: 11952409) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
for the Year Ended 31 MARCH 2023 |
1. | STATUTORY INFORMATION |
VIS Group Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The consolidated financial statements include the results of VIS Group Limited and all of its subsidiary undertakings made up to the same accounting date. All intra-group balances, transactions, income and expenses are eliminated in full on consolidation. The results of subsidiary undertakings acquired or disposed of during the period are included or excluded from the income statement from the effective date of acquisition or disposal. |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
Significant judgements and estimates |
In the application of the group's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both the current and future periods. |
VIS GROUP LIMITED (REGISTERED NUMBER: 11952409) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 MARCH 2023 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover represents the value of sales of goods and services rendered during the year, excluding value added tax and trade discounts. Turnover in respect of contracts ongoing at the year end is measured in accordance with valuations of work completed as certified by customers. |
In respect of long term contracts and contracts for on-going services, turnover represents the value of work done in the year, including estimates of amounts not invoiced. Turnover in respect of long-term contracts and contracts for on-going services is recognised by reference to the stage of completion. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Freehold property | - |
Plant and machinery | - |
Motor vehicles | - |
Office equipment | - |
Goodwill |
Goodwill, being the amount paid in connection with the acquisition of businesses in 2019 and 2022, is being amortised evenly over its estimated useful life of twenty years. |
Investments in associates |
Investments in associate undertakings are recognised at cost. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
VIS GROUP LIMITED (REGISTERED NUMBER: 11952409) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 MARCH 2023 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other short term employee benefits |
The group makes contributions to personal pension schemes of certain employees. Contributions payable to the schemes are charged to the profit and loss account in the period to which they relate. |
Other short term employee benefits including holiday pay and annual bonuses are also accrued as services are rendered. |
VIS GROUP LIMITED (REGISTERED NUMBER: 11952409) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 MARCH 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
Financial assets and liabilities are recognised in the balance sheet when the group becomes party to the contractual provisions of the instrument. |
Trade and other debtors and creditors are classified as basic financial instruments and are measured on initial recognition at transaction price. Debtors and creditors are subsequently measured at amortised cost using the effective interest rate method. A provision is established when there is objective evidence that the group may not be able to collect all amounts due. |
Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank. |
Financial liabilities and equity instruments issued by the group are classified in accordance with the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities. Equity instruments issued by the group are recorded at the proceeds received, net of any direct issue costs. |
Interest bearing bank loans which meet the criteria of basic financial instruments are initially recorded at the present value of cash payable to the bank, usually being equivalent to the proceeds received net of direct issue costs. These liabilities are subsequently measured at amortised cost, using the effective interest rate method. |
Going concern |
The directors have considered the company's and group's ability to continue as a going concern for at least 12 months from the date of signing the financial statements and have concluded that they consider the company and group a going concern. |
3. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 3,935,649 | 2,164,532 |
Social security costs | 483,433 | 250,146 |
Other pension costs | 66,551 | 38,739 |
4,485,633 | 2,453,417 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Directors | 2 | 2 |
Management | 6 | 6 |
Operational | 55 | 32 |
VIS GROUP LIMITED (REGISTERED NUMBER: 11952409) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 MARCH 2023 |
3. | EMPLOYEES AND DIRECTORS - continued |
2023 | 2022 |
£ | £ |
Directors' remuneration | 24,301 | 24,195 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | - | 2 |
4. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Hire of plant and machinery | 160,580 | 228,439 |
Other operating leases | 4,718 | 22,063 |
Depreciation - owned assets | 55,911 | 42,390 |
Depreciation - assets on hire purchase contracts | 42,660 | 19,842 |
Profit on disposal of fixed assets | - | (17,230 | ) |
Goodwill amortisation | 27,951 | 27,950 |
Auditors' remuneration | 19,900 | 15,000 |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank loan interest | 42,493 | 17,067 |
Hire purchase interest | 4,084 | 1,701 |
46,577 | 18,768 |
VIS GROUP LIMITED (REGISTERED NUMBER: 11952409) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 MARCH 2023 |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | 637,269 | 231,631 |
Deferred tax | (7,066 | ) | 14,611 |
Tax on profit | 630,203 | 246,242 |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax | 3,780,254 | 1,539,692 |
Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2022 - 19 %) |
718,248 |
292,541 |
Effects of: |
Expenses not deductible for tax purposes | 91,580 | 72,871 |
Capital allowances in excess of depreciation | - | (1,184 | ) |
Depreciation in excess of capital allowances | 3,521 | - |
R&D enhanced claim | (194,400 | ) | (128,576 | ) |
Tax losses carried not recognised | 5,144 | 10,590 |
Taxes not previously recognised | 3,940 | - |
Deferred tax provided at a higher rate | 2,170 | - |
Total tax charge | 630,203 | 246,242 |
7. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
VIS GROUP LIMITED (REGISTERED NUMBER: 11952409) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 MARCH 2023 |
8. | DIVIDENDS |
2023 | 2022 |
£ | £ |
A Ordinary shares of £1 each |
Interim | 634,268 | 381,995 |
B Ordinary shares of £1 each |
Interim | 634,268 | 381,995 |
1,268,536 | 763,990 |
9. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 April 2022 | 558,992 |
Additions | 359,825 |
Acquired with subsidiary | 1 |
At 31 March 2023 | 918,818 |
AMORTISATION |
At 1 April 2022 | 55,900 |
Amortisation for year | 27,951 |
At 31 March 2023 | 83,851 |
NET BOOK VALUE |
At 31 March 2023 | 834,967 |
At 31 March 2022 | 503,092 |
VIS GROUP LIMITED (REGISTERED NUMBER: 11952409) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 MARCH 2023 |
10. | TANGIBLE FIXED ASSETS |
Group |
Freehold | Plant and | Motor | Office |
property | machinery | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 April 2022 | 665,475 | 55,298 | 250,971 | 38,662 | 1,010,406 |
Additions | - | 19,015 | - | - | 19,015 |
Acquired with subsidiary | - | - | 819 | 19,054 | 19,873 |
At 31 March 2023 | 665,475 | 74,313 | 251,790 | 57,716 | 1,049,294 |
DEPRECIATION |
At 1 April 2022 | 20,273 | 4,840 | 30,384 | 13,692 | 69,189 |
Charge for year | 20,273 | 14,203 | 56,410 | 7,685 | 98,571 |
At 31 March 2023 | 40,546 | 19,043 | 86,794 | 21,377 | 167,760 |
NET BOOK VALUE |
At 31 March 2023 | 624,929 | 55,270 | 164,996 | 36,339 | 881,534 |
At 31 March 2022 | 645,202 | 50,458 | 220,587 | 24,970 | 941,217 |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Motor |
vehicles |
£ |
COST |
At 1 April 2022 |
and 31 March 2023 | 190,481 |
DEPRECIATION |
At 1 April 2022 | 19,842 |
Charge for year | 42,660 |
At 31 March 2023 | 62,502 |
NET BOOK VALUE |
At 31 March 2023 | 127,979 |
At 31 March 2022 | 170,639 |
VIS GROUP LIMITED (REGISTERED NUMBER: 11952409) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 MARCH 2023 |
11. | FIXED ASSET INVESTMENTS |
Group |
Interest |
in |
associate |
£ |
COST |
At 1 April 2022 |
and 31 March 2023 | 1 |
NET BOOK VALUE |
At 31 March 2023 | 1 |
At 31 March 2022 | 1 |
Company |
Shares in | Interest |
group | in |
undertakings | associate | Totals |
£ | £ | £ |
COST |
At 1 April 2022 |
and 31 March 2023 | 2,261,276 |
NET BOOK VALUE |
At 31 March 2023 | 2,261,276 |
At 31 March 2022 | 2,261,276 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: 61 Queen Square, Bristol. BS1 4JZ |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
VIS GROUP LIMITED (REGISTERED NUMBER: 11952409) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 MARCH 2023 |
11. | FIXED ASSET INVESTMENTS - continued |
Registered office: 61 Queen Square, Bristol. BS1 4JZ |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves | ( |
) | ( |
) |
Loss for the year | ( |
) | ( |
) |
Registered office: 61 Queen Square, Bristol. BS1 4JZ |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Associated company |
Registered office: 61 Queen Square, Bristol. BS1 4JZ |
Nature of business: |
% |
Class of shares: | holding |
£ | £ |
Aggregate capital and reserves | ( |
) | ( |
) |
Loss for the year/period | ( |
) | ( |
) |
The associate had made no sales by its last year end, 31 August 2022. A loss was made up to that date, so no share of profits has been recognised in these financial statements, Profits are expected to be made in the year ended 31 August 2023 as sales have been made. |
VIS GROUP LIMITED (REGISTERED NUMBER: 11952409) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 MARCH 2023 |
12. | STOCKS |
Group |
2023 | 2022 |
£ | £ |
Stocks | 875 | 875 |
Finished goods | 27,691 | 33,692 |
28,566 | 34,567 |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade debtors | 2,581,415 | 2,295,100 |
Amounts owed by group undertakings | - | - |
Amounts recoverable on |
contracts | 5,991,267 | 5,815,797 |
Other debtors | 218,524 | 119,890 |
Directors' current accounts | 2,072 | - | - | - |
VAT | 279,315 | 291,899 |
Prepayments and accrued income | 180,511 | 145,548 |
9,253,104 | 8,668,234 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 16) | 265,416 | 269,869 |
Hire purchase contracts (see note 17) | 33,493 | 33,493 |
Payments on account | 154,082 | 638,414 |
Trade creditors | 3,032,172 | 2,496,424 |
Amounts owed to group undertakings | - | - |
Corporation tax | 653,670 | 231,631 |
Social security and other taxes | 213,864 | 122,873 |
Other creditors | 1,507,881 | 572,498 |
Directors' current accounts | - | - | 2,928 | - |
Accruals and deferred income | 2,520,254 | 2,925,223 |
8,380,832 | 7,290,425 |
VIS GROUP LIMITED (REGISTERED NUMBER: 11952409) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 MARCH 2023 |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2023 | 2022 |
£ | £ |
Bank loans (see note 16) | 981,508 | 1,244,035 |
Hire purchase contracts (see note 17) | 19,539 | 53,032 |
1,001,047 | 1,297,067 |
16. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or | on demand: |
Bank loans | 265,416 | 269,869 |
Amounts falling due between one and | two years: |
Bank loans - 1-2 years | 266,525 | 270,519 |
Amounts falling due between two and | five years: |
Bank loans - 2-5 years | 473,727 | 732,335 |
Amounts falling due in more than five | years: |
Repayable by instalments |
Bank loans more 5 yr by instal | 241,256 | 241,181 |
VIS GROUP LIMITED (REGISTERED NUMBER: 11952409) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 MARCH 2023 |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase | contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year | 33,493 | 33,493 |
Between one and five years | 19,539 | 53,032 |
53,032 | 86,525 |
Group |
Non-cancellable | operating leases |
2023 | 2022 |
£ | £ |
Within one year | 129,402 | 83,870 |
Between one and five years | 118,483 | 45,150 |
247,885 | 129,020 |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2023 | 2022 |
£ | £ |
Bank loans | 1,246,924 | 1,513,904 |
Hire purchase contracts | 53,032 | 86,525 |
1,299,956 | 1,600,429 |
Bank borrowings are secured by a charge over all subsidiary company property and assets in the company borrowing the money. Assets held under hire purchase contracts are detailed in the notes. |
VIS GROUP LIMITED (REGISTERED NUMBER: 11952409) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 MARCH 2023 |
19. | PROVISIONS FOR LIABILITIES |
Group |
2023 | 2022 |
£ | £ |
Deferred tax |
Accelerated capital allowances | 15,581 | 20,376 |
Other timing differences | (3,522 | ) | (1,251 | ) |
12,059 | 19,125 |
Group |
Deferred |
tax |
£ |
Balance at 1 April 2022 | 19,125 |
Credit to Income Statement during year | (7,066 | ) |
Balance at 31 March 2023 | 12,059 |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
A Ordinary | £1 | 53 | 51 |
B Ordinary | £1 | 17 | 19 |
70 | 70 |
On 5 April 2022, 2 B Ordinary shares of £1 each were redesignated as 2 A Ordinary shares of £1 each |
Each class of share ranks equally in all respects except the payment of dividends. |
VIS GROUP LIMITED (REGISTERED NUMBER: 11952409) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 MARCH 2023 |
21. | RESERVES |
Group |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 April 2022 | 848,218 | 1,310,176 | 2,158,394 |
Profit for the year | 2,312,512 | - | 2,312,512 |
Dividends | (1,268,536 | ) | - | (1,268,536 | ) |
At 31 March 2023 | 1,892,194 | 1,310,176 | 3,202,370 |
Company |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 April 2022 | 2,345,113 |
Profit for the year | - |
Dividends | ( |
) | - | ( |
) |
At 31 March 2023 | 2,355,620 |
22. | RELATED PARTY DISCLOSURES |
At the year end, one of the directors owed the group £2,072. This has since been fully repaid. |
23. | ULTIMATE CONTROLLING PARTY |
The controlling party is S Hill. |