REGISTERED NUMBER: 12353157 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MAY 2022 |
FOR |
TNC GROUP HOLDINGS LIMITED |
TRADING AS |
KSD GROUP |
REGISTERED NUMBER: 12353157 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MAY 2022 |
FOR |
TNC GROUP HOLDINGS LIMITED |
TRADING AS |
KSD GROUP |
TNC GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 12353157) |
TRADING AS KSD GROUP |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MAY 2022 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Consolidated Statement of Income and Retained Earnings |
9 |
Consolidated Balance Sheet | 10 |
Company Balance Sheet | 11 |
Consolidated Cash Flow Statement | 12 |
Notes to the Consolidated Cash Flow Statement | 13 |
Notes to the Consolidated Financial Statements | 15 |
TNC GROUP HOLDINGS LIMITED |
TRADING AS KSD GROUP |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 MAY 2022 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditor |
20 Havelock Road |
Hastings |
East Sussex |
TN34 1BP |
SOLICITORS: |
Vallance Hall |
Hove Street |
Hove |
East Sussex |
TNC GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 12353157) |
TRADING AS KSD GROUP |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MAY 2022 |
The directors present their strategic report of the company and the group for the year ended 31 May 2022. |
REVIEW OF BUSINESS |
The trading element of the KSD Group of Companies will continue to identify related, market- sector clients for potential engagement and the current portfolio of planning applications for substantial land development schemes and opportunities in the South-East will underpin future investment and growth within the group as a whole. |
KSD Support Services (KSD SS) provides building maintenance, building fabric and support services within the whole UK footprint, supporting over 10,000 retail stores. Its major clients operate within the food retail, commercial property and education sectors and these account for over 90% of group turnover. |
At the end of the period net assets totalled £25,014,461, an increase of 40% on the previous year. KSD's key financial metrics and other performance indicators during the period were as follows: |
2022 | 2021 |
£ | £ |
Turnover | 28,230,342 | 24,764,272 |
Gross profit | 8,752,252 | 8,225,657 |
EBITDA & revaluation | 14.9% | 16.4% |
The improved financial metrics are mainly due to increased workloads with our major clients and the successful onboarding of new customers. This has resulted in turnover increasing by £3,463,070 compared to 2021, an increase of 14.19%. Whilst margin has reduced slightly, the increase in turnover had contributed to an increase in gross profit on an aggregate basis. |
New land and property has been acquired via the purchase of another company as well as directly with the latter shown in 'work in progress'. |
FUTURE DEVELOPMENTS |
Our business development status is proudly supported by achieved ISO 9001, ISO 14001 and OHSAS 45001 accreditations assessed and regularly audited by the British Standards Institute (BSI). |
The trading part of the Group will continue to provide dedicated services to its blue-chip client-base going forwards and several key planning applications for land scheme opportunities will continue to evolve within the Group of Companies in a positive manner. |
TNC GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 12353157) |
TRADING AS KSD GROUP |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MAY 2022 |
PRINCIPAL RISKS AND UNCERTAINTIES |
Further diversification in terms of customer sectors has decreased the company's reliance on any one sector in particular, with a large amount of specialist services now delivered by CIS contractors and expert sub-contractors. |
Cash management remains central to our ability to meet contractual payment obligations as and when they fall due. We continually monitor cash flow models and work to ensure adequate sources of existing and alternative funding are always readily available. |
ON BEHALF OF THE BOARD: |
TNC GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 12353157) |
TRADING AS KSD GROUP |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MAY 2022 |
The directors present their report with the financial statements of the company and the group for the year ended 31 May 2022. |
DIVIDENDS |
The Group has not declared any dividends during this or the preceding year. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 June 2021 to the date of this report. |
FINANCIAL INSTRUMENTS |
The Group's principal financial instruments comprise bank balances, trade creditors, trade debtors, operating lease agreements, bank loans and directors' loans. The main purpose of these instruments is to finance the Group's operations. |
Due to the nature of the financial instruments used by the Group there is no exposure to price risk. The Group's approach to managing other risks applicable to the financial instruments concerned is shown below. |
In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdrafts at floating rates of interest. |
The CBILS loan from the bank does not have interest charged nor repayments made in the first year. The directors are aware of the Group's finance requirements and have determined that the liquidity risk inherent in this formal bank loans is acceptable with the initial repayment holiday. |
The loans from the directors do not have interest charged but are repayable on demand. The directors are aware of the Group's required finance and have determined that these will only be repaid, in whole or in part, when finance is available. |
The credit risk arising from loans made to directors is considered to be acceptable, given the substantial asset portfolio supporting them. |
The Group's operating lease commitments are in respect of the property from which the company operates as well as motor vehicles. The liquidity risk in respect of these is managed in the same way as loans above. |
The Group's trade debtors are factored thorough a financial services company although the Group retains all significant benefits and risks in respect of these. These are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. |
Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due. |
POLITICAL DONATIONS AND EXPENDITURE |
Donations and sponsorship of £9,252.91 (2021: £11,465) have been paid to local charities. |
TNC GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 12353157) |
TRADING AS KSD GROUP |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MAY 2022 |
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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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. |
AUDITORS |
The auditors, Ashdown Hurrey Auditors Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
TNC GROUP HOLDINGS LIMITED |
Opinion |
We have audited the financial statements of Tnc Group Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 May 2022 which comprise the Consolidated Statement of Income and Retained Earnings, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion,except for the possible effects of the matter described in the basis for qualified opinion section of our report, the financial statements: |
- give a true and fair view of the state of the company's affairs as at 31 May 2022 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 qualified opinion |
Due to a lack of response to our and the Group's balance confirmation requests, we have been unable to confirm that a balance of £599,677 which is included within Other Debtors, is correct and complete. We have been unable to satisfy ourselves as to the veracity of this balance by using other audit procedures. |
Consequently we were unable to determine whether any adjustment to this amount was necessary. This amount is in excess of our calculated materiality figure. |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified 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. |
Key audit matters |
Except for the matter described in the basis for qualified opinion section, we have determined that there are no key audit matters to be communicated in our report. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
TNC GROUP HOLDINGS LIMITED |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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. |
As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning the correctness and completeness of the Other debtor balance of £599,677. We have concluded that where the other information refers to Other debtors or related balances , it may be materially misstated for the same reason. |
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 not been able to obtain all information required for the purposes of our audit, as noted in the basis for qualified opinion section, |
- | 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. |
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 |
TNC GROUP HOLDINGS LIMITED |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We 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 not in line with the applicable laws and regulations, including fraud. |
We understood how the Company is complying with those laws and regulations by making enquiries of management concerning actual and potential litigation and claims. We corroborated our enquiries through our review of board minutes and any correspondence with regulatory bodies to evaluate whether there were any instances of non-compliance. Additionally, we obtained an understanding of management's procedures relating to detecting and responding to risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud. |
Our procedures included agreeing the financial statement disclosures to underlying supporting documentation where relevant and challenging the assumptions and judgements made by management in relation to significant accounting items, including recognition of revenue. We have also identified amd challenged management on any journal entries outside our usual expectation for this type of business. |
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Statutory Auditor |
20 Havelock Road |
Hastings |
East Sussex |
TN34 1BP |
TNC GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 12353157) |
TRADING AS KSD GROUP |
CONSOLIDATED STATEMENT OF INCOME AND RETAINED EARNINGS |
FOR THE YEAR ENDED 31 MAY 2022 |
31.5.22 | 31.5.21 |
as restated |
Notes | £ | £ |
TURNOVER | 3 | 28,230,342 | 24,764,272 |
Cost of sales | (19,478,070 | ) | (16,538,615 | ) |
GROSS PROFIT | 8,752,272 | 8,225,657 |
Administrative expenses | (5,719,440 | ) | (5,167,291 | ) |
3,032,832 | 3,058,366 |
Other operating income | 4 | 554,373 | 622,380 |
Gain/loss on revaluation of investment property |
4,771,893 |
- |
OPERATING PROFIT | 6 | 8,359,098 | 3,680,746 |
Interest receivable and similar income | 589,500 | 8 |
8,948,598 | 3,680,754 |
Interest payable and similar expenses | 7 | (581,922 | ) | (340,948 | ) |
PROFIT BEFORE TAXATION | 8,366,676 | 3,339,806 |
Tax on profit | 8 | (1,099,260 | ) | (728,517 | ) |
PROFIT FOR THE FINANCIAL YEAR |
Retained earnings at beginning of year as previously reported |
4,382,645 |
2,093,438 |
Dividends | 10 | - | 90,000 |
Prior year adjustment - corrections of material errors |
11 |
- |
(412,082 |
) |
RETAINED EARNINGS FOR THE GROUP AT END OF YEAR |
11,650,061 |
4,382,645 |
Profit attributable to: |
Owners of the parent | 7,267,416 | 2,611,289 |
TNC GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 12353157) |
TRADING AS KSD GROUP |
CONSOLIDATED BALANCE SHEET |
31 MAY 2022 |
31.5.22 | 31.5.21 |
as restated |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 12 | 4,980,983 | 4,907,861 |
Tangible assets | 13 | 4,551,064 | 3,419,606 |
Investments | 14 | - | - |
Investment property | 15 | 18,820,000 | 12,048,107 |
28,352,047 | 20,375,574 |
CURRENT ASSETS |
Stocks | 16 | 3,400,714 | 1,177,847 |
Debtors | 17 | 15,836,208 | 13,866,679 |
Cash at bank | 14,034 | 4,489 |
19,250,956 | 15,049,015 |
CREDITORS |
Amounts falling due within one year | 18 | 16,264,924 | 12,019,841 |
NET CURRENT ASSETS | 2,986,032 | 3,029,174 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
31,338,079 |
23,404,748 |
CREDITORS |
Amounts falling due after more than one year |
19 |
(5,292,647 |
) |
(5,412,374 |
) |
PROVISIONS FOR LIABILITIES | 23 | (1,030,971 | ) | (245,329 | ) |
NET ASSETS | 25,014,461 | 17,747,045 |
CAPITAL AND RESERVES |
Called up share capital | 24 | 17,369,400 | 17,369,400 |
Fair value reserve | 25 | 745,000 | (4,005,000 | ) |
Retained earnings | 25 | 6,900,061 | 4,382,645 |
SHAREHOLDERS' FUNDS | 25,014,461 | 17,747,045 |
The financial statements were approved by the Board of Directors and authorised for issue on 17 November 2023 and were signed on its behalf by: |
P F J McDonnell - Director |
TNC GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 12353157) |
TRADING AS KSD GROUP |
COMPANY BALANCE SHEET |
31 MAY 2022 |
31.5.22 | 31.5.21 |
as restated |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 12 |
Tangible assets | 13 |
Investments | 14 |
Investment property | 15 |
CURRENT ASSETS |
Stocks | 16 |
Debtors | 17 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 18 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
19 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 24 |
Fair value reserve | 25 | ( |
) | ( |
) |
Retained earnings | 25 | ( |
) | ( |
) |
SHAREHOLDERS' FUNDS |
Company's profit/(loss) for the financial year |
3,941,070 |
(88,051 |
) |
The financial statements were approved by the Board of Directors and authorised for issue on |
TNC GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 12353157) |
TRADING AS KSD GROUP |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MAY 2022 |
31.5.22 | 31.5.21 |
as restated |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 1,547,643 | 2,571,850 |
Interest paid | (409,107 | ) | (174,200 | ) |
Interest element of hire purchase payments paid |
(146,815 |
) |
(79,568 |
) |
Net cash from operating activities | 991,721 | 2,318,082 |
Cash flows from investing activities |
Purchase of intangible fixed assets | (40,882 | ) | - |
Purchase of tangible fixed assets | (5,892 | ) | - |
Purchase of fixed asset investments | - | (36,534 | ) |
Purchase of investment property | - | (32,907 | ) |
Sale of tangible fixed assets | 49,000 | 2,900 |
Interest received | 37 | 8 |
Loans to related entity | (544,426 | ) | - |
Net cash from investing activities | (542,163 | ) | (66,533 | ) |
Cash flows from financing activities |
New loans in year | 2,874,563 | - |
Loan repayments in year | (3,129,472 | ) | (1,620,250 | ) |
Capital repayments in year | (461,150 | ) | (241,295 | ) |
Amount introduced by directors | 143,769 | 22,580 |
Amount withdrawn by directors | (1,339,270 | ) | (914,442 | ) |
Financing of debtors | 1,361,780 | (971,933 | ) |
Government grants | 25,135 | 183,758 |
Net cash from financing activities | (524,645 | ) | (3,541,582 | ) |
Decrease in cash and cash equivalents | (75,087 | ) | (1,290,033 | ) |
Cash and cash equivalents at beginning of year |
2 |
(316,652 |
) |
973,381 |
Cash and cash equivalents at end of year |
2 |
(391,739 |
) |
(316,652 |
) |
TNC GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 12353157) |
TRADING AS KSD GROUP |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MAY 2022 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.5.22 | 31.5.21 |
as restated |
£ | £ |
Profit before taxation | 8,366,676 | 3,339,806 |
Depreciation charges | 602,160 | 366,538 |
Profit on disposal of fixed assets | (710 | ) | (521 | ) |
Gain on revaluation of fixed assets | (4,771,893 | ) | - |
Reversal of impairment losses | (262,424 | ) | - |
Non cash transactions through DCA | - | 146,868 |
Government grants | (25,135 | ) | (183,758 | ) |
Finance costs | 581,922 | 340,948 |
Finance income | (589,500 | ) | (8 | ) |
3,901,096 | 4,009,873 |
Increase in stocks | (2,222,867 | ) | (1,150,003 | ) |
Increase in trade and other debtors | (688,284 | ) | (1,222,134 | ) |
Increase in trade and other creditors | 557,698 | 934,114 |
Cash generated from operations | 1,547,643 | 2,571,850 |
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 May 2022 |
31.5.22 | 1.6.21 |
£ | £ |
Cash and cash equivalents | 14,034 | 4,489 |
Bank overdrafts | (405,773 | ) | (321,141 | ) |
(391,739 | ) | (316,652 | ) |
Year ended 31 May 2021 |
31.5.21 | 1.6.20 |
as restated |
£ | £ |
Cash and cash equivalents | 4,489 | 1,500,482 |
Bank overdrafts | (321,141 | ) | (527,101 | ) |
(316,652 | ) | 973,381 |
TNC GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 12353157) |
TRADING AS KSD GROUP |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MAY 2022 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.6.21 | Cash flow | At 31.5.22 |
£ | £ | £ |
Net cash |
Cash at bank | 4,489 | 9,545 | 14,034 |
Bank overdrafts | (321,141 | ) | (84,632 | ) | (405,773 | ) |
(316,652 | ) | (75,087 | ) | (391,739 | ) |
Debt |
Finance leases | (1,254,334 | ) | (1,241,752 | ) | (2,496,086 | ) |
Debts falling due within 1 year | (2,585,273 | ) | (4,218,625 | ) | (6,803,898 | ) |
Debts falling due after 1 year | (4,438,347 | ) | 1,021,853 | (3,416,494 | ) |
(8,277,954 | ) | (4,438,524 | ) | (12,716,478 | ) |
Total | (8,594,606 | ) | (4,513,611 | ) | (13,108,217 | ) |
TNC GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 12353157) |
TRADING AS KSD GROUP |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MAY 2022 |
1. | STATUTORY INFORMATION |
Tnc Group Holdings Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. |
The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £1. |
Going concern |
In preparing the financial statements, the directors are required to make an assessment of the ability of the Group to continue as a going concern. |
On the basis of forecasts and the fact that the Group has substantial net current assets and net assets, the directors are confident that the Group has adequate resources to continue in operational existence and to meet its liabilities as they fall due for the foreseeable future. In reaching this conclusion they are satisfied that no material uncertainty exists. As a result of the above, the directors have concluded that it remains appropriate to adopt a going concern basis of preparation in these financial statements and that no material uncertainty exists in reaching this conclusion. |
Basis of consolidation |
The Group financial statements consolidate the financial statements of the Company and its subsidiary undertakings drawn up to 31 May each year. The results of subsidiaries acquired or sold are consolidated for the periods from or to the date on which control passed. |
Business combinations are accounted for under the merger method as these meet the requirements of FRS102 s19.27. Where necessary,adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by the Group. All intra-group transactions, balances, income and expenses are eliminated on consolidation. |
Significant judgements and estimates |
In the application of the accounting policies, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. |
The key judgements that management have made in applying the accounting policies relate to the valuation of investment property and recoverability of debtors, both trade and other. |
The investment property has been valued based upon historical property prices as well as actual and anticipated rental yields. These take into accounts known future rental receipts from let areas and use these to anticipate future potential rental income for the currently void areas. Development land is valued based upon the future potential income following development, this calculation uses industry expected standards for development. |
The estimates and underlying assumptions for debtors 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. |
TNC GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 12353157) |
TRADING AS KSD GROUP |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2022 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover is recognised when the work has been performed. Turnover represents amounts invoiced, net of value added tax, and adjusted for the value of work performed to date on contracts at the period end. |
When the outcome of a construction contract can be estimated reliably, contract costs and turnover are recognised by reference to the stage of completion at the balance sheet date. Stage of completion is measured by reference to the work completed to that date. |
Where the outcome cannot be measured reliably, contract costs are recognised as an expense in the period in which they are incurred and contract turnover is recognised to the extent of costs incurred that it is probable will be recoverable. |
When it is probable that contract costs will exceed the total contract turnover, the expected loss is recognised as an expense immediately, with a corresponding provision. |
Goodwill |
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 |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Investment property |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
Stocks |
Stocks have been valued at the lower of cost and estimated selling price less costs to sell. |
Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate. |
Work in progress comprises costs incurred for a single design and build project and is valued at cost to the company less any anticipated losses. |
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. |
TNC GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 12353157) |
TRADING AS KSD GROUP |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2022 |
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 post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by class of business is given below: |
31.5.22 | 31.5.21 |
as restated |
£ | £ |
Facilities management | 28,230,342 | 24,764,272 |
28,230,342 | 24,764,272 |
An analysis of turnover by geographical market is given below: |
31.5.22 | 31.5.21 |
as restated |
£ | £ |
United Kingdom | 28,230,342 | 24,764,272 |
28,230,342 | 24,764,272 |
TNC GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 12353157) |
TRADING AS KSD GROUP |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2022 |
4. | OTHER OPERATING INCOME |
Included within Other income are the following amounts received from the UK government in respect of COVID 19 grants and reliefs: |
31.5.21 | 31.5.21 |
£ | £ |
Coronavirus Job Retention Scheme (CJRS) | 18,722 | 69,772 |
Interest settlement in respect of the Coronavirus Business Interruption Loan Scheme (CBILS) |
- |
34,900 |
Local authority grants | 6,413 | 79,086 |
25,135 | 183,758 |
There are no unfulfilled conditions or other contingencies attaching to any of the above amounts. |
5. | EMPLOYEES AND DIRECTORS |
31.5.22 | 31.5.21 |
as restated |
£ | £ |
Wages and salaries | 4,336,683 | 3,098,111 |
Social security costs | 436,478 | 255,367 |
Other pension costs | 71,464 | 38,473 |
4,844,625 | 3,391,951 |
The average number of employees during the year was as follows: |
31.5.22 | 31.5.21 |
as restated |
Administration | 24 | 23 |
Direct | 51 | 46 |
Indirect | 41 | 18 |
The average number of employees by undertakings that were proportionately consolidated during the year was 116 (2021 - 87 ) . |
31.5.22 | 31.5.21 |
as restated |
£ | £ |
Directors' remuneration | - | 2,398 |
TNC GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 12353157) |
TRADING AS KSD GROUP |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2022 |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
31.5.22 | 31.5.21 |
as restated |
£ | £ |
Hire of plant and machinery | 18,232 | 72,573 |
Other operating leases | 6,622 | 56,848 |
Depreciation - owned assets | 42,048 | 58,273 |
Depreciation - assets on hire purchase contracts | 482,753 | 236,008 |
Profit on disposal of fixed assets | (710 | ) | (521 | ) |
Goodwill amortisation | 75,581 | 65,344 |
Computer software amortisation | 1,778 | 6,914 |
Auditors' remuneration | 38,730 | 32,200 |
Auditors' remuneration for non audit work | 5,500 | - |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.5.22 | 31.5.21 |
as restated |
£ | £ |
Bank interest | 12,102 | 13,343 |
Other interest | 39,393 | 1,533 |
Loan | 324,364 | 122,080 |
Invoice discounting | 42,686 | 82,322 |
HMRC interest | 16,562 | 42,102 |
Hire purchase | 146,815 | 79,568 |
581,922 | 340,948 |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.5.22 | 31.5.21 |
as restated |
£ | £ |
Current tax: |
UK corporation tax | 324,772 | 530,715 |
Deferred tax | 774,488 | 197,802 |
Tax on profit | 1,099,260 | 728,517 |
TNC GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 12353157) |
TRADING AS KSD GROUP |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2022 |
8. | TAXATION - continued |
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: |
31.5.22 | 31.5.21 |
as restated |
£ | £ |
Profit before tax | 8,366,676 | 3,339,806 |
Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2021 - 19 %) |
1,589,668 |
634,563 |
Effects of: |
Expenses not deductible for tax purposes | 22,904 | 20,386 |
Income not taxable for tax purposes | (1,002,733 | ) | - |
Depreciation in excess of capital allowances | 141,563 | 73,568 |
Utilisation of tax losses | 11,198 | - |
Investment Property Revaluation | 336,660 | - |
Total tax charge | 1,099,260 | 728,517 |
9. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
10. | DIVIDENDS |
31.5.22 | 31.5.21 |
as restated |
£ | £ |
Ordinary shares of £1 each |
Interim | - | (90,000 | ) |
The prior year includes a negative amount. This was In order to adjust for a non-material error in previous financial statements, whereby Directors' loan repayments were incorrectly treated as dividends, therefore the related dividends expense is included as negative balance during this period. |
11. | PRIOR YEAR ADJUSTMENT |
During the year it was identified that the value of assets and associated liabilities transferred into the Group by the owners from their partnership in May 2020 had been misstated. This resulted in the value of Investment property being increased by £450,000 from £11,598,107 to £12,048,107. Share capital has been educed by £475,405 from £17,844,805 to 17,369,400. Amount due to the owners in respect of these mis statements increased by £925,405 , taking liabilities from £11,094,436 to £12,019,841. |
There has been no effect upon profits nor net reserves. |
TNC GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 12353157) |
TRADING AS KSD GROUP |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2022 |
12. | INTANGIBLE FIXED ASSETS |
Group |
Computer |
Goodwill | software | Totals |
£ | £ | £ |
COST |
At 1 June 2021 | 5,227,465 | 22,444 | 5,249,909 |
Additions | 150,481 | - | 150,481 |
At 31 May 2022 | 5,377,946 | 22,444 | 5,400,390 |
AMORTISATION |
At 1 June 2021 | 326,717 | 15,331 | 342,048 |
Amortisation for year | 75,581 | 1,778 | 77,359 |
At 31 May 2022 | 402,298 | 17,109 | 419,407 |
NET BOOK VALUE |
At 31 May 2022 | 4,975,648 | 5,335 | 4,980,983 |
At 31 May 2021 | 4,900,748 | 7,113 | 4,907,861 |
13. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Long | Plant and | and |
leasehold | machinery | fittings |
£ | £ | £ |
COST |
At 1 June 2021 | 2,000,000 | 194,881 | 306,729 |
Additions | - | 4,763 | 215 |
Disposals | - | - | - |
At 31 May 2022 | 2,000,000 | 199,644 | 306,944 |
DEPRECIATION |
At 1 June 2021 | - | 164,830 | 219,478 |
Charge for year | - | 8,108 | 21,872 |
Eliminated on disposal | - | - | - |
At 31 May 2022 | - | 172,938 | 241,350 |
NET BOOK VALUE |
At 31 May 2022 | 2,000,000 | 26,706 | 65,594 |
At 31 May 2021 | 2,000,000 | 30,051 | 87,251 |
TNC GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 12353157) |
TRADING AS KSD GROUP |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2022 |
13. | TANGIBLE FIXED ASSETS - continued |
Group |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 June 2021 | 1,697,540 | 126,959 | 4,326,109 |
Additions | 1,698,903 | 668 | 1,704,549 |
Disposals | (71,320 | ) | - | (71,320 | ) |
At 31 May 2022 | 3,325,123 | 127,627 | 5,959,338 |
DEPRECIATION |
At 1 June 2021 | 427,517 | 94,678 | 906,503 |
Charge for year | 485,499 | 9,322 | 524,801 |
Eliminated on disposal | (23,030 | ) | - | (23,030 | ) |
At 31 May 2022 | 889,986 | 104,000 | 1,408,274 |
NET BOOK VALUE |
At 31 May 2022 | 2,435,137 | 23,627 | 4,551,064 |
At 31 May 2021 | 1,270,023 | 32,281 | 3,419,606 |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Motor |
vehicles |
£ |
COST |
At 1 June 2021 | 1,672,354 |
Additions | 1,698,903 |
Disposals | (71,320 | ) |
At 31 May 2022 | 3,299,937 |
DEPRECIATION |
At 1 June 2021 | 387,943 |
Charge for year | 482,753 |
Eliminated on disposal | (23,030 | ) |
At 31 May 2022 | 847,666 |
NET BOOK VALUE |
At 31 May 2022 | 2,452,271 |
At 31 May 2021 | 1,284,411 |
TNC GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 12353157) |
TRADING AS KSD GROUP |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2022 |
14. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 June 2021 |
Additions |
At 31 May 2022 |
NET BOOK VALUE |
At 31 May 2022 |
At 31 May 2021 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: England & Wales |
Nature of business: |
% |
Class of shares: | holding |
31.5.22 | 31.5.21 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Registered office: England & Wales |
Nature of business: |
% |
Class of shares: | holding |
31.5.22 |
£ |
Aggregate capital and reserves |
Profit for the year |
Threadneedle Estates Ltd was acquired by TNC Group Holdings Ltd on 7th June 2021. |
TNC GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 12353157) |
TRADING AS KSD GROUP |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2022 |
15. | INVESTMENT PROPERTY |
Group |
Total |
£ |
FAIR VALUE |
At 1 June 2021 | 12,048,107 |
Additions | 2,000,000 |
Revaluations | 4,771,893 |
At 31 May 2022 | 18,820,000 |
NET BOOK VALUE |
At 31 May 2022 | 18,820,000 |
At 31 May 2021 | 12,048,107 |
Fair value at 31 May 2022 is represented by: |
£ |
Valuation in 2020 | (4,417,082 | ) |
Valuation in 2022 | 4,771,893 |
Cost | 18,465,189 |
18,820,000 |
If the investment properties had not been revalued they would have been included at the following historical cost: |
31.5.22 | 31.5.21 |
as restated |
£ | £ |
Cost | 18,465,189 | 16,465,189 |
The investment properties were valued on an open market basis on 31 May 2022 by the directors . |
Company |
Total |
£ |
FAIR VALUE |
At 1 June 2021 |
Revaluations | 4,000,000 |
At 31 May 2022 |
NET BOOK VALUE |
At 31 May 2022 |
At 31 May 2021 |
Fair value at 31 May 2022 is represented by: |
£ |
Valuation in 2020 | (4,005,000 | ) |
Valuation in 2022 | 4,000,000 |
Cost | 9,420,000 |
9,415,000 |
TNC GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 12353157) |
TRADING AS KSD GROUP |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2022 |
15. | INVESTMENT PROPERTY - continued |
Company |
If the investment properties had not been revalued they would have been included at the following historical cost: |
31.5.22 | 31.5.21 |
as restated |
£ | £ |
Cost | 9,420,000 | 9,420,000 |
The investment properties were valued on an open market basis basis on 31 May 2021 by the directors . |
16. | STOCKS |
Group | Company |
31.5.22 | 31.5.21 | 31.5.22 | 31.5.21 |
as restated | as restated |
£ | £ | £ | £ |
Stocks | 38,400 | 64,798 |
Work-in-progress | 3,362,314 | 1,113,049 |
3,400,714 | 1,177,847 |
17. | DEBTORS |
Group | Company |
31.5.22 | 31.5.21 | 31.5.22 | 31.5.21 |
as restated | as restated |
£ | £ | £ | £ |
Amounts falling due within one year: |
Trade debtors | 6,297,435 | 4,812,847 |
Amounts owed by group undertakings | - | - |
Other debtors | 1,794,839 | 909,104 |
Owed by entities under common | 3,697,136 | 3,546,688 | - | - |
Other amounts owed | - | 454,415 | - | - |
Loans receivable | 1,331,568 | - | - | - |
Tax | 357,204 | 301,981 |
Prepayments and accrued income | 2,358,026 | 3,424,366 |
15,836,208 | 13,449,401 |
Amounts falling due after more than one | year: |
Other debtors | - | 417,278 |
Aggregate amounts | 15,836,208 | 13,866,679 |
TNC GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 12353157) |
TRADING AS KSD GROUP |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2022 |
18. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.5.22 | 31.5.21 | 31.5.22 | 31.5.21 |
as restated | as restated |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 20) | 4,317,733 | 1,376,256 |
Other loans (see note 20) | 2,891,938 | 1,530,158 |
Hire purchase contracts (see note 21) | 619,933 | 280,307 |
Trade creditors | 3,323,673 | 2,730,819 |
Amounts owed to group undertakings | - | - |
Tax | 1,447,572 | 1,067,542 |
Social security and other taxes | 528,047 | 167,041 |
VAT | 810,755 | 616,011 | - | - |
Other creditors | 804,490 | 1,460,629 |
Directors' loan accounts | 1,205,050 | 2,089,826 | 1,052,480 | 2,057,306 |
Accruals and deferred income | 93,876 | 104,901 |
Accrued expenses | 221,857 | 596,351 |
16,264,924 | 12,019,841 |
19. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
31.5.22 | 31.5.21 | 31.5.22 | 31.5.21 |
as restated | as restated |
£ | £ | £ | £ |
Bank loans (see note 20) | 3,416,494 | 4,438,347 |
Hire purchase contracts (see note 21) | 1,876,153 | 974,027 |
5,292,647 | 5,412,374 |
20. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
31.5.22 | 31.5.21 | 31.5.22 | 31.5.21 |
as restated | as restated |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Bank overdrafts | 405,773 | 321,141 |
Bank loans | 3,911,960 | 1,055,115 |
Other loans | 2,891,938 | 1,530,158 |
7,209,671 | 2,906,414 |
Amounts falling due between one and two | years: |
Bank loans - 1-2 years | 1,044,595 | 1,055,115 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | 2,150,046 | 3,383,232 |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans more 5 yr by instal | 221,853 | - | 221,853 | - |
TNC GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 12353157) |
TRADING AS KSD GROUP |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2022 |
21. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
31.5.22 | 31.5.21 |
as restated |
£ | £ |
Gross obligations repayable: |
Within one year | 740,568 | 358,766 |
Between one and five years | 2,049,815 | 1,100,106 |
2,790,383 | 1,458,872 |
Finance charges repayable: |
Within one year | 120,635 | 78,459 |
Between one and five years | 173,662 | 126,079 |
294,297 | 204,538 |
Net obligations repayable: |
Within one year | 619,933 | 280,307 |
Between one and five years | 1,876,153 | 974,027 |
2,496,086 | 1,254,334 |
Group |
Non-cancellable operating | leases |
31.5.22 | 31.5.21 |
as restated |
£ | £ |
Within one year | 72,004 | 122,647 |
Between one and five years | 71,943 | 20,943 |
143,947 | 143,590 |
The company pays a rent for its head office, Patcham Place, and also an office in Scotland. There are however no formal leases or unexpired leases in respect of these properties. |
TNC GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 12353157) |
TRADING AS KSD GROUP |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2022 |
22. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
31.5.22 | 31.5.21 |
as restated |
£ | £ |
Bank overdraft | 405,773 | 321,141 |
Bank loans | 7,328,454 | 5,493,462 |
Financing of trade debtors | 1,891,938 | - |
9,626,165 | 5,814,603 |
The bank overdraft and loan account from National Westminster Bank plc are secured by way of a fixed and floating charge over all of the assets of KSD Support Services Ltd.. |
The financing of trade debtors by RBS Invoice Finance Ltd is secured by a fixed and floating change over the assets of KSD Support Services Ltd.. (supported by the personal guarantees of the directors). This charge contains a negative pledge. |
Lendwell Funding 1 Ltd. holds charges over certain of the Group's property assets, namely 1 - 8 The Old Stable Block in Stanmer, East Sussex, and Kent's Farm land in Hurstpierpoint in East Sussex. |
23. | PROVISIONS FOR LIABILITIES |
Group |
31.5.22 | 31.5.21 |
as restated |
£ | £ |
Deferred tax |
Accelerated capital allowances | 565,661 | 245,329 |
Other timing differences | 179,948 | - |
Deferred tax | 285,362 | - |
1,030,971 | 245,329 |
Group |
Deferred |
tax |
£ |
Balance at 1 June 2021 | 245,329 |
Provided during year | 785,642 |
Balance at 31 May 2022 | 1,030,971 |
24. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.5.22 | 31.5.21 |
value: | as restated |
£ | £ |
Ordinary | £1 | 17,369,400 | 17,369,400 |
TNC GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 12353157) |
TRADING AS KSD GROUP |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2022 |
25. | RESERVES |
Group |
Fair |
Retained | value |
earnings | reserve | Totals |
£ | £ | £ |
At 1 June 2021 | 4,382,645 | (4,005,000 | ) | 377,645 |
Profit for the year | 7,267,416 | 7,267,416 |
Reserves transfer | (4,750,000 | ) | 4,750,000 | - |
At 31 May 2022 | 6,900,061 | 745,000 | 7,645,061 |
Company |
Fair |
Retained | value |
earnings | reserve | Totals |
£ | £ | £ |
At 1 June 2021 | ( |
) | ( |
) | (4,258,187 | ) |
Profit for the year |
Reserves transfer | (4,000,000 | ) | 4,000,000 | - |
At 31 May 2022 | ( |
) | ( |
) | (317,117 | ) |
26. | RELATED PARTY DISCLOSURES |
Entities with control, joint control or significant influence over the entity |
31.5.22 | 31.5.21 |
as restated |
£ | £ |
Movements in the year | 1,100,119 | - |
Amount due to related party | 1,945,149 | 3,045,268 |
Entities over which the entity has control, joint control or significant influence |
31.5.22 | 31.5.21 |
as restated |
£ | £ |
Transfers | 908,779 | (65,077 | ) |
Amount due from related party | 5,077,030 | 4,198,923 |
The disclosures above relate to entities which are connected by virtue of the fact that they have common directors and/or shareholders to the company. |
Key management personnel of the entity or its parent (in the aggregate) |
31.5.22 | 31.5.21 |
as restated |
£ | £ |
Transfers | - | (47,214 | ) |
Compensation paid | 402,292 | 273,000 |
Amount due to related party | - | 537,164 |
TNC GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 12353157) |
TRADING AS KSD GROUP |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2022 |
26. | RELATED PARTY DISCLOSURES - continued |
Entities that provide key management personnel services to the entity |
31.5.22 | 31.5.21 |
as restated |
£ | £ |
Purchases | 79,297 | 49,678 |
Amount due from related party | - | 454,415 |
Other related parties |
31.5.22 | 31.5.21 |
as restated |
£ | £ |
Transfers | - | (84,872 | ) |
Amounts written off the balance | - | (16,306 | ) |
Amount due from related party | - | 110,906 |
27. | ULTIMATE CONTROLLING PARTY |
The Group is controlled by the shareholders jointly. There is no ultimate controlling party. |