Company registration number 00624843 (England and Wales)
CED LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
CED LIMITED
COMPANY INFORMATION
Directors
Mr M E W Heap
Mr T Spink
Mr G Ewing
Mr C S Fraser
Mr G E J W Heap
Mr H White
Secretary
Mr R R Davies
Company number
00624843
Registered office
728 London Road
West Thurrock
Grays
Essex
United Kingdom
RM20 3LU
Auditor
CED LIMITED
CONTENTS
Page
Strategic report
1 - 4
Directors' report
5
Directors' responsibilities statement
6
Independent auditor's report
7 - 9
Profit and loss account
10
Group statement of comprehensive income
11
Group balance sheet
12
Company balance sheet
13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Company statement of cash flows
17
Notes to the financial statements
18 - 37
CED LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 1 -

The directors present the strategic report for the year ended 31 December 2022.

Fair review of the business

The results for the year and the financial position of the group are as shown in the annexed financial statements.

 

The income statement shows turnover for the year of £16,621,113 and loss for the year of £343,673.

 

The trading period has shown the same level of turnover as 2021. There was however an increase within the Commercial sector of 27% and a reduction in the private sector of 6.4%.

 

The Commercial sector was relatively buoyant in 2022 and in the first half of 2023 as delayed projects finally went live.

 

Although an increase in Commercial sales was seen, this was more than offset by inflationary cost increases to shipping and logistics caused by the Russia-Ukraine war, many of these costs the Company did not pass on to clients unless absolutely necessary.

 

The private sector was adversely affected by several factors outside of the control of the company, namely the start of the Russia Ukraine conflict, the death of Queen Elizabeth II and the 6 week economic uncertainty from the initial policy objectives introduced by Liz Truss.

 

In view of all of the above factors being taken into account the Directors feel that the trading loss made in 2022 is acceptable and we are continuing to maximise sales and exert rigorous control of all overhead expenditure in order to minimise controllable costs.

 

In the Spring of 2022, the shareholders who are also directors completed the estate affairs of Miss J. Heap, a close family relative. Miss Heap had loaned to CED Ltd a considerable loan to the value of £573,715 including interest. After some lengthy negotiations with HMRC it was agreed that the loan should be converted into shares in the company. This has resulted in an increase in the net asset position by £573,715.

Principal risks and uncertainties

The market for the supply and distribution of specialised stones, paving, aggregates, and sands for the construction, civil engineering, and landscape industries and other users remains highly competitive in the UK.

 

The company has considerable expertise and knowledge of materials and their use by its customers. Improving response times in the supply of products, by the prompt and efficient handling of customer enquiries and by maintaining strong relationships and local representation with its customers, it achieves a significant competitive advantage.

 

Most purchases from mainland Europe and Ireland are made in Euros. From the rest of the world most purchases are made in US dollars. The company is therefore exposed to movements in the Euro and US dollar exchange rates. The Finance Director monitors the exposure of the company to exchange rate risks and takes out forward contracts to fix the exchange rate when this is considered appropriate. Moving forward, due to the increased shipping rates it was decided in late 2021 that imports from China would be significantly reduced which as a direct consequence reduces our exposure to both FX fluctuations and volatile shipping rates.

 

The company's credit risk is primarily attributable to its trade debtors. It manages credit risk by running credit checks on new customers, reviewing credit extended to existing customers and by monitoring payments against contractual agreements.

CED LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -
Development and performance

The company continues to make significant progress in the development of new products, some of which are already achieving good sales, and some are just entering the market.

 

These products will have a significantly beneficial effect on the future performance of the company as they will bring increased turnover without significantly increasing fixed costs or reducing the sales of existing products.

 

Financial Reporting Standard 102

The company prepares its accounts in accordance with this accounting standard.

 

In view of the recent sale of premises the deferred tax provision is deemed commensurate with the value on the balance sheet. It is however anticipated that the future intended purchase of replacement land and buildings will qualify for rollover relief and that this provision will be negated as a result.

 

Brexit

Trading with the EU continues to be administratively difficult, however the Company will respond to any changes to the regulations as and when they occur.

 

The company continues to hedge currency prudently and is well placed to deal with any future negative impacts on exchange rates in the short to mid-term.

 

Russia Conflict with Ukraine

 

The ongoing conflict fo 2022 and 2023 with Russia and Ukraine appears to be affecting the UK economy as a whole and general spending by the private sector has temporarily slowed. Although this has stabilised in 2023 the company is active in negating risk in this area should things escalate in the future.

 

Inflation

 

Inflation during 2022 and 2023 has been unprecented compared to recent years. The company has had to initially absorb some inflationary supplier and shipping prices, particularly on Commercial projects but has been able to subsequently pass on higher prices to customers, particularly in the private sector.

 

 

COVID 19

 

Although Covid 19 was relatively stable during 2022 this did have a knock on effect within the private sector due to the restrictions on travel being lifted. Many people were able to take postponed 2021 holidays as well as their usual 2022 holidays which reduced their spend on home renovations.

 

Other factors in 2022

 

The death of HM Queen Elizabeth II caused a temporary slow down in sales due to the nation mourning the death of our monarch. In addition the 6 week period with Liz Truss in charge of the government caused a large ripple with the financial markets and the economy resulting in poor sales during that period.

CED LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 3 -
Other information and explanations

2023:

 

Ethical Trading:

 

The challenges created by Brexit, Covid 19, inflated shipping rates and world economic events are still having “knock on” effects for workers in our supply chain.

This means there continues to be a greater risk of potential salient human rights abuses across production sites in the natural stone industry. Many of our Ethical Trade work, such as worker interviews, worker training and site inspections are still curtailed and so our visibility of workers is somewhat diminished.

 

We continue ethical focus on the following:

 

 

Transparency – as part of ETI (Ethical Trading Initiative) Corporate Transparency Framework requirements, we now share a lot more information in the public domain. This includes: Geographical spread of our overseas supply chain, supplier factory locations and salient labour rights issues and risks. A good portion of our work in this area is now used by ETI as guidance for other Commercials to follow.

 

New Policies on Website include:

Corporate Governance and Accountability Structure.

FOA (Freedom Of Association) and Collective Bargaining Policy.

 

Ethical initiatives and collaborations:

 

Working with ETI and ITF (International Transport Workers' Federation) – a hidden part of our supply chain was always Seafarers working on the ships that carry our containerised goods from Asia. We now make sure that the ships we use, have a current ITF labour rights agreements in place. This guarantees Seafarers trade union consultation, negotiation, ongoing engagement, and monitoring in both implementation and grievances, essential for HRDD compliance.

 

Working with the General Merchandising Group and ETI, we are analysing and improving Purchasing Practices. The aim is to improve working conditions at manufacturing sites by trialling and implementing more Responsible Purchasing Practices.

 

QUALITY ASSURANCE:

 

ISO 9001: 2015 Quality accreditation:

Annual audit successfully completed and certified. We have continued to develop our Commercial quality systems and work procedures, to induce improvements in both supplier and staff performance. Our aim is to continually improve levels of customer service and satisfaction.

 

ENVIRONMENTAL:

 

ISO 14001: 2015 Certification for Environmental Management:

Once again successfully audited for environmental management at our Head Office yard and offices in West Thurrock.

 

 

CED LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 4 -

On behalf of the board

Mr T Spink
Director
22 November 2023
CED LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 5 -

The directors present their annual report and financial statements for the year ended 31 December 2022.

Principal activities

The Company is a stone merchant. It is engaged in the supply and distribution of specialised stones, paving, aggregates, and sands which are sourced worldwide for the construction, civil engineering, and landscape industries and other users, principally in the UK.

Results and dividends

The results for the year are set out on page 10.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr M E W Heap
Mr T Spink
Mr G Ewing
Mr C S Fraser
Mr G E J W Heap
Mr H White
Auditor

The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
Mr T Spink
Director
22 November 2023
CED LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 6 -

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

CED LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CED LIMITED
- 7 -
Opinion

We have audited the financial statements of CED Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2022 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

CED LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CED LIMITED
- 8 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

CED LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CED LIMITED
- 9 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Julian Golding (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
26 November 2023
Chartered Accountants
Statutory Auditor
1 Nelson Street
Southend-On-Sea
Essex
United Kingdom
SS1 1EG
CED LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 10 -
2022
2021
Notes
£
£
Turnover
3
16,621,113
16,265,631
Cost of sales
(12,788,632)
(12,529,894)
Gross profit
3,832,481
3,735,737
Administrative expenses
(3,873,392)
(3,659,961)
Other operating income
-
183,948
Operating (loss)/profit
4
(40,911)
259,724
Interest payable and similar expenses
8
(302,762)
(178,446)
(Loss)/profit before taxation
(343,673)
81,278
Tax on (loss)/profit
9
-
0
-
0
(Loss)/profit for the financial year
27
(343,673)
81,278
(Loss)/profit for the financial year is attributable to:
- Owners of the parent company
(348,847)
81,278
- Non-controlling interests
5,174
-
(343,673)
81,278
CED LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022
- 11 -
2022
2021
£
£
(Loss)/profit for the year
(343,673)
81,278
Other comprehensive income
Revaluation of tangible fixed assets
400,283
-
0
Total comprehensive income for the year
56,610
81,278
Total comprehensive income for the year is attributable to:
- Owners of the parent company
51,436
81,278
- Non-controlling interests
5,174
-
56,610
81,278
CED LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2022
31 December 2022
- 12 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
11
6,856,919
6,491,941
Current assets
Stocks
15
3,251,593
3,778,907
Debtors
16
2,642,304
2,813,437
Cash at bank and in hand
67,671
50,690
5,961,568
6,643,034
Creditors: amounts falling due within one year
17
(6,143,031)
(6,404,624)
Net current (liabilities)/assets
(181,463)
238,410
Total assets less current liabilities
6,675,456
6,730,351
Creditors: amounts falling due after more than one year
18
(2,347,892)
(3,127,005)
Provisions for liabilities
Deferred tax liability
21
639,191
545,298
(639,191)
(545,298)
Net assets
3,688,373
3,058,048
Capital and reserves
Called up share capital
23
25,805
21,554
Share premium account
24
765,848
196,384
Revaluation reserve
25
3,960,964
3,560,681
Other reserves
(5,644)
(5,644)
Profit and loss reserves
27
(1,063,774)
(714,927)
Equity attributable to owners of the parent company
3,683,199
3,058,048
Non-controlling interests
5,174
-
3,688,373
3,058,048
The financial statements were approved by the board of directors and authorised for issue on 22 November 2023 and are signed on its behalf by:
22 November 2023
Mr T Spink
Director
Company registration number 00624843 (England and Wales)
CED LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2022
31 December 2022
- 13 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
11
6,856,919
6,491,941
Investments
12
7,808
7,808
6,864,727
6,499,749
Current assets
Stocks
15
3,251,593
3,778,907
Debtors
16
2,663,603
2,803,388
Cash at bank and in hand
38,797
40,729
5,953,993
6,623,024
Creditors: amounts falling due within one year
17
(6,295,597)
(6,610,740)
Net current (liabilities)/assets
(341,604)
12,284
Total assets less current liabilities
6,523,123
6,512,033
Creditors: amounts falling due after more than one year
18
(2,347,892)
(3,127,005)
Provisions for liabilities
Deferred tax liability
21
639,191
545,298
(639,191)
(545,298)
Net assets
3,536,040
2,839,730
Capital and reserves
Called up share capital
23
25,805
21,554
Share premium account
24
765,848
196,384
Revaluation reserve
25
3,960,964
3,560,681
Profit and loss reserves
27
(1,216,577)
(938,889)
Total equity
3,536,040
2,839,730

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £277,688 (2021 - £83,270 profit).

The financial statements were approved by the board of directors and authorised for issue on 22 November 2023 and are signed on its behalf by:
22 November 2023
Mr T Spink
Director
Company registration number 00624843 (England and Wales)
CED LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 14 -
Share capital
Share premium account
Revaluation reserve
Merger reserve
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
£
£
£
£
£
£
£
£
Balance at 1 January 2021
21,554
196,384
3,560,681
(5,644)
(796,205)
2,976,770
-
2,976,770
Year ended 31 December 2021:
Profit and total comprehensive income
-
-
-
-
81,278
81,278
-
81,278
Balance at 31 December 2021
21,554
196,384
3,560,681
(5,644)
(714,927)
3,058,048
-
0
3,058,048
Year ended 31 December 2022:
Loss for the year
-
-
-
-
(348,847)
(348,847)
5,174
(343,673)
Other comprehensive income:
Revaluation of tangible fixed assets
-
-
400,283
-
-
400,283
-
400,283
Total comprehensive income
-
-
400,283
-
(348,847)
51,436
5,174
56,610
Other movements
4,251
569,464
-
-
-
573,715
-
573,715
Balance at 31 December 2022
25,805
765,848
3,960,964
(5,644)
(1,063,774)
3,683,199
5,174
3,688,373
CED LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 15 -
Share capital
Share premium account
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 January 2021
21,554
196,384
3,560,681
(1,022,160)
2,756,459
Year ended 31 December 2021:
Profit and total comprehensive income for the year
-
-
-
83,271
83,271
Balance at 31 December 2021
21,554
196,384
3,560,681
(938,889)
2,839,730
Year ended 31 December 2022:
Profit for the year
-
-
-
(277,688)
(277,688)
Other comprehensive income:
Revaluation of tangible fixed assets
-
-
400,283
-
400,283
Total comprehensive income
-
-
400,283
(277,688)
122,595
Other movements
4,251
569,464
-
-
573,715
Balance at 31 December 2022
25,805
765,848
3,960,964
(1,216,577)
3,536,040
CED LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 16 -
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
121,937
608,578
Interest paid
(302,762)
(178,446)
Income taxes refunded
1
-
0
Net cash (outflow)/inflow from operating activities
(180,824)
430,132
Investing activities
Purchase of tangible fixed assets
(108,429)
(383,845)
Proceeds from disposal of tangible fixed assets
67,200
71,917
Net cash used in investing activities
(41,229)
(311,928)
Financing activities
Proceeds from issue of shares
573,715
-
Repayment of borrowings
308,337
339,984
Repayment of bank loans
(496,219)
(572,509)
Payment of finance leases obligations
(146,799)
120,778
Net cash generated from/(used in) financing activities
239,034
(111,747)
Net increase in cash and cash equivalents
16,981
6,457
Cash and cash equivalents at beginning of year
50,690
44,233
Cash and cash equivalents at end of year
67,671
50,690
CED LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 17 -
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
30
102,885
634,614
Interest paid
(302,623)
(178,446)
Income taxes refunded
1
-
0
Net cash (outflow)/inflow from operating activities
(199,737)
456,168
Investing activities
Purchase of tangible fixed assets
(108,429)
(383,845)
Proceeds from disposal of tangible fixed assets
67,200
71,917
Net cash used in investing activities
(41,229)
(311,928)
Financing activities
Proceeds from issue of shares
573,715
-
Repayment of borrowings
308,337
339,984
Repayment of bank loans
(496,219)
(572,509)
Payment of finance leases obligations
(146,799)
120,778
Net cash generated from/(used in) financing activities
239,034
(111,747)
Net (decrease)/increase in cash and cash equivalents
(1,932)
32,493
Cash and cash equivalents at beginning of year
40,729
8,236
Cash and cash equivalents at end of year
38,797
40,729
CED LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 18 -
1
Accounting policies
Company information

CED Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 728 London Road, West Thurrock, Grays, Essex, RM20 3LU.

 

The group consists of CED Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties at fair value. The principal accounting policies adopted are set out below.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

 

Merger accounting is also used as a basis of consolidation when applicable.

1.3
Basis of consolidation

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

CED LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 19 -

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

 

At the time of approving the financial statements, the directors note that trading conditions remain challenging but due to the sale and short-term leaseback of their head office to enable the company to expand onto a new site at a price well in excess of the balance sheet valuation the company is now unencumbered and has substantial working capital to continue in operational existence for the foreseeable future.
Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.6
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Patents & licences
nil years
1.7
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

CED LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 20 -

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold buildings
2% on cost
Leasehold improvements
2% on cost
Plant and equipment
25% on reducing balance and 15% on cost
Fixtures and fittings
25% on cost, 10% on reducing balance and 5% on reducing balance
Motor vehicles
33% on reducing balance and 25% on cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

CED LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 21 -
1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.10
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.11
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

CED LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 22 -
1.12
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

CED LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 23 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.13
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.14
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.15
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

CED LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 24 -
1.16
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.17
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.18
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Turnover and other revenue
2022
2021
£
£
Other revenue
Grants received
-
183,945
CED LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 25 -
4
Operating (loss)/profit
2022
2021
£
£
Operating (loss)/profit for the year is stated after charging/(crediting):
Exchange gains
(42,088)
(6,168)
Government grants
-
(183,945)
Depreciation of owned tangible fixed assets
58,826
126,093
Depreciation of tangible fixed assets held under finance leases
133,805
93,398
Profit on disposal of tangible fixed assets
(22,205)
(23,473)
Operating lease charges
389,793
354,823
5
Auditor's remuneration
2022
2021
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
16,800
28,200

The 2021 balance is inflated as includes the impact of under provisions in previous periods totalling £8,000.

6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2022
2021
2022
2021
Number
Number
Number
Number
Directors
8
8
6
6
Admin, Sales and Distribution
74
78
74
78
Total
82
86
80
84

Their aggregate remuneration comprised:

Group
Company
2022
2021
2022
2021
£
£
£
£
Wages and salaries
2,704,334
2,577,979
2,673,116
2,577,979
Social security costs
255,917
252,710
255,917
252,710
Pension costs
114,867
122,771
114,867
122,771
3,075,118
2,953,460
3,043,900
2,953,460
CED LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 26 -
7
Directors' remuneration
2022
2021
£
£
Remuneration for qualifying services
453,291
433,826
Company pension contributions to defined contribution schemes
45,089
40,578
498,380
474,404
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2022
2021
£
£
Remuneration for qualifying services
94,809
91,315
Company pension contributions to defined contribution schemes
8,353
8,131
8
Interest payable and similar expenses
2022
2021
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
259,042
148,422
Other finance costs:
Interest on finance leases and hire purchase contracts
43,720
30,024
Total finance costs
302,762
178,446
9
Taxation

The actual charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:

2022
2021
£
£
(Loss)/profit before taxation
(343,673)
81,278
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
(65,298)
15,443
Unutilised tax losses carried forward
53,173
17,150
Permanent capital allowances in excess of depreciation
16,344
(28,133)
Profit/loss on sale of tangible assets
(4,219)
(4,460)
Taxation charge
-
-
CED LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 27 -
10
Intangible fixed assets
Group
Patents & licences
£
Cost
At 1 January 2022 and 31 December 2022
120,000
Amortisation and impairment
At 1 January 2022 and 31 December 2022
120,000
Carrying amount
At 31 December 2022
-
0
At 31 December 2021
-
0
Company
Patents & licences
£
Cost
At 1 January 2022 and 31 December 2022
120,000
Amortisation and impairment
At 1 January 2022 and 31 December 2022
120,000
Carrying amount
At 31 December 2022
-
0
At 31 December 2021
-
0
CED LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 28 -
11
Tangible fixed assets
Group
Freehold buildings
Leasehold improvements
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
Cost or valuation
At 1 January 2022
5,771,999
48,660
1,392,517
1,853,354
479,448
9,545,978
Additions
-
0
-
0
7,018
17,666
83,745
108,429
Disposals
-
0
-
0
-
0
-
0
(104,597)
(104,597)
Revaluation
494,175
-
0
-
0
-
0
-
0
494,175
At 31 December 2022
6,266,174
48,660
1,399,535
1,871,020
458,596
10,043,985
Depreciation and impairment
At 1 January 2022
41,622
17,181
1,178,163
1,591,916
225,155
3,054,037
Depreciation charged in the year
6,323
4,866
54,086
42,016
85,340
192,631
Eliminated in respect of disposals
-
0
-
0
-
0
-
0
(59,602)
(59,602)
At 31 December 2022
47,945
22,047
1,232,249
1,633,932
250,893
3,187,066
Carrying amount
At 31 December 2022
6,218,229
26,613
167,286
237,088
207,703
6,856,919
At 31 December 2021
5,730,377
31,479
214,354
261,438
254,293
6,491,941
CED LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
11
Tangible fixed assets
(Continued)
- 29 -
Company
Freehold buildings
Leasehold improvements
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
Cost or valuation
At 1 January 2022
5,771,999
48,660
1,392,517
1,853,354
479,448
9,545,978
Additions
-
0
-
0
7,018
17,666
83,745
108,429
Disposals
-
0
-
0
-
0
-
0
(104,597)
(104,597)
Revaluation
494,175
-
0
-
0
-
0
-
0
494,175
At 31 December 2022
6,266,174
48,660
1,399,535
1,871,020
458,596
10,043,985
Depreciation and impairment
At 1 January 2022
41,622
17,181
1,178,163
1,591,916
225,155
3,054,037
Depreciation charged in the year
6,323
4,866
54,086
42,016
85,340
192,631
Eliminated in respect of disposals
-
0
-
0
-
0
-
0
(59,602)
(59,602)
At 31 December 2022
47,945
22,047
1,232,249
1,633,932
250,893
3,187,066
Carrying amount
At 31 December 2022
6,218,229
26,613
167,286
237,088
207,703
6,856,919
At 31 December 2021
5,730,377
31,479
214,354
261,438
254,293
6,491,941

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2022
2021
2022
2021
£
£
£
£
Plant and equipment
145,395
193,861
145,395
193,861
Motor vehicles
181,802
254,293
181,802
254,293
327,197
448,154
327,197
448,154

Land and buildings with a carrying amount of £6,218,229 were revalued in November 2022 by Lambert Smith Hampton, being independent valuers not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties.

 

The revaluation surplus is disclosed in note 25.

The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:

CED LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
11
Tangible fixed assets
(Continued)
- 30 -
2022
2021
£
£
Group
Cost
1,164,980
1,164,980
Accumulated depreciation
118,860
95,560
Carrying value
1,283,840
1,260,540
Company
Cost
1,164,980
1,164,980
Carrying value
1,164,980
1,164,980
12
Fixed asset investments
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
7,808
7,808
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2022 and 31 December 2022
7,808
Carrying amount
At 31 December 2022
7,808
At 31 December 2021
7,808
13
Subsidiaries

Details of the company's subsidiaries at 31 December 2022 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
CED Stone (North America) Inc
204 Notre-Dame West, Suite 350, Montreal, Quebec, H2Y IT3, Canada
Ordinary
80.00
Vercroft Limited
Unit 16B, Hooton Works, Hooton, Wirral, CH66 7NB
Ordinary
100.00
CED Stone Group Limited
728 London Road, West Thurrock, Grays, Essex, RM20 3LU
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
CED LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
13
Subsidiaries
(Continued)
- 31 -
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
CED Stone (North America) Inc
88,602
25,870
CED Stone Group Limited
224,571
(1,394)
14
Financial instruments
Group
Company
2022
2021
2022
2021
£
£
£
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
-
-
-
21,275

Derivative financial instruments - Forward contract and options

 

The Company enters into forward foreign currency contracts and options to mitigate the exchange rate risk for certain foreign currency payables. At 31 December 2022 and 2021, the outstanding contracts all mature within 12 months from the period end.

 

The forward currency contract and options are measured at fair value, which is determined using valuation techniques that utilise observable inputs. The key inputs in valuing the derivative are the forward exchange rates for GBP:USD and GBP:EUR. The fair value of the forward-foreign currency contracts and options are £nil (2021 - CR £21,275).

15
Stocks
Group
Company
2022
2021
2022
2021
£
£
£
£
Finished goods and goods for resale
3,251,593
3,778,907
3,251,593
3,778,907
16
Debtors
Group
Company
2022
2021
2022
2021
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,736,176
1,656,718
1,642,814
1,656,718
Amounts owed by group undertakings
-
-
190,118
-
Other debtors
130,340
112,507
54,883
102,458
Prepayments and accrued income
775,788
1,044,212
775,788
1,044,212
2,642,304
2,813,437
2,663,603
2,803,388
CED LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 32 -
17
Creditors: amounts falling due within one year
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Bank loans
19
771,331
627,491
771,331
627,491
Obligations under finance leases
20
157,575
165,320
157,575
165,320
Other borrowings
19
1,456,005
1,147,668
1,456,005
1,147,668
Trade creditors
2,432,513
2,639,821
2,390,675
2,639,821
Amounts owed to group undertakings
-
0
-
0
597,926
580,214
Corporation tax payable
22,272
22,272
-
0
-
0
Other taxation and social security
326,026
344,042
310,572
344,042
Other creditors
986,548
1,384,213
623,752
1,034,637
Accruals and deferred income
(9,239)
73,797
(12,239)
71,547
6,143,031
6,404,624
6,295,597
6,610,740
18
Creditors: amounts falling due after more than one year
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Bank loans and overdrafts
19
2,159,941
2,800,000
2,159,941
2,800,000
Obligations under finance leases
20
187,951
327,005
187,951
327,005
2,347,892
3,127,005
2,347,892
3,127,005
19
Loans and overdrafts
Group
Company
2022
2021
2022
2021
£
£
£
£
Bank loans
2,931,272
3,427,491
2,931,272
3,427,491
Other loans
1,456,005
1,147,668
1,456,005
1,147,668
4,387,277
4,575,159
4,387,277
4,575,159
Payable within one year
2,227,336
1,775,159
2,227,336
1,775,159
Payable after one year
2,159,941
2,800,000
2,159,941
2,800,000
CED LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
19
Loans and overdrafts
(Continued)
- 33 -

Obligations held under hire purchase and finance lease contracts are secured on the assets concerned.

 

The company entered into a new finance agreement with Leumi as part of a group re-organisation in December 2020, As well as loans provided, this included an invoice discounting facility.

 

The bank loans and facilities are secured by way of both fixed and floating charges over the assets of the company and its subsidiary undertakings.

 

The company obtained a short term loan in November 2022 of £250,000. As at 31st December 2022, £171,331 is outstanind, and is due to be reparid wtihin 1 year.

 

There is a cross guarantee in placed between CED Limited and its subsidiary companies on all borrowings outstanding within the group as at the balance sheet date.

 

20
Finance lease obligations
Group
Company
2022
2021
2022
2021
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
157,575
165,320
157,575
165,320
In two to five years
187,951
327,005
187,951
327,005
345,526
492,325
345,526
492,325

Finance lease payments represent rentals payable by the company for certain items of plant and machinery and motor vehicles. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

 

21
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2022
2021
Group
£
£
Accelerated capital allowances
639,191
545,298
Liabilities
Liabilities
2022
2021
Company
£
£
Accelerated capital allowances
639,191
545,298
CED LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
21
Deferred taxation
(Continued)
- 34 -
Group
Company
2022
2022
Movements in the year:
£
£
Liability at 1 January 2022
545,298
545,298
Charge to profit or loss
93,893
93,893
Liability at 31 December 2022
639,191
639,191
22
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
114,867
122,771

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

23
Share capital
Group and company
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
25,805
21,554
25,805
21,554

The rights of the ordinary redeemable shares are as detailed in the memorandum and articles of association of the company.

In 2022 a share issue was carried out, to reflect the conversion of a previously held loan from Miss Heap of the value of £573,715 including interest. After negotiations with HMRC it was agreed that the loan should be converted into shares in the company. This process was completed on 19th April 2022.

24
Share premium account
Group
Company
2022
2021
2022
2021
£
£
£
£
At the beginning of the year
196,384
196,384
196,384
196,384
Other movements
569,464
-
569,464
-
At the end of the year
765,848
196,384
765,848
196,384
CED LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 35 -
25
Revaluation reserve
Group
Company
2022
2021
2022
2021
£
£
£
£
At the beginning of the year
3,560,681
3,560,681
3,560,681
3,560,681
Revaluation surplus arising in the year
400,283
-
0
400,283
-
0
At the end of the year
3,960,964
3,560,681
3,960,964
3,560,681
26
Merger reserve
2022
2021
Group
£
£
At the beginning and end of the year
(5,644)
(5,644)
2022
2021
Company
£
£
At the beginning and end of the year
-
-
27
Profit and loss reserves
Group
Company
2022
2021
2022
2021
£
£
£
£
At the beginning of the year
(714,927)
(796,205)
(938,889)
(1,022,160)
Profit/(loss) for the year
(348,847)
81,278
(277,688)
83,271
At the end of the year
(1,063,774)
(714,927)
(1,216,577)
(938,889)
28
Events after the reporting date

In August 2023, the company completed the sale and subsequent short-term lease back of their West Thurrock Head Office premises to enable expansion onto a new site. All secured and invoice financing with Leumi was discharged leaving the company unencumbered and with significant cash reserves after bringing creditors up to date in full.

CED LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 36 -
29
Cash generated from group operations
2022
2021
£
£
(Loss)/profit for the year after tax
(343,673)
81,278
Adjustments for:
Finance costs
302,762
178,446
Gain on disposal of tangible fixed assets
(22,205)
(23,473)
Depreciation and impairment of tangible fixed assets
192,631
219,491
Movements in working capital:
Decrease/(increase) in stocks
527,314
(1,199,675)
Decrease/(increase) in debtors
171,133
(46,166)
(Decrease)/increase in creditors
(706,025)
1,398,677
Cash generated from operations
121,937
608,578
30
Cash generated from operations - company
2022
2021
£
£
(Loss)/profit for the year after tax
(277,688)
83,271
Adjustments for:
Finance costs
302,623
178,446
Gain on disposal of tangible fixed assets
(22,205)
(23,473)
Depreciation and impairment of tangible fixed assets
192,631
219,491
Movements in working capital:
Decrease/(increase) in stocks
527,314
(1,199,675)
Decrease/(increase) in debtors
139,785
(46,117)
(Decrease)/increase in creditors
(759,575)
1,422,671
Cash generated from operations
102,885
634,614
31
Analysis of changes in net debt - group
1 January 2022
Cash flows
31 December 2022
£
£
£
Cash at bank and in hand
50,690
16,981
67,671
Borrowings excluding overdrafts
(4,575,159)
187,882
(4,387,277)
Obligations under finance leases
(492,325)
146,799
(345,526)
(5,016,794)
351,662
(4,665,132)
CED LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 37 -
32
Analysis of changes in net debt - company
1 January 2022
Cash flows
31 December 2022
£
£
£
Cash at bank and in hand
40,729
(1,932)
38,797
Borrowings excluding overdrafts
(4,575,159)
187,882
(4,387,277)
Obligations under finance leases
(492,325)
146,799
(345,526)
(5,026,755)
332,749
(4,694,006)
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