Registration number:
2 AM Management Company Limited
for the Year Ended 31 March 2023
2 AM Management Company Limited
Contents
Company Information |
|
Strategic Report |
|
Directors' Report |
|
Statement of Directors' Responsibilities |
|
Independent Auditor's Report |
|
Consolidated Profit and Loss Account |
|
Consolidated Statement of Comprehensive Income |
|
Consolidated Balance Sheet |
|
Balance Sheet |
|
Consolidated Statement of Changes in Equity |
|
Statement of Changes in Equity |
|
Consolidated Statement of Cash Flows |
|
Notes to the Financial Statements |
2 AM Management Company Limited
Company Information
Directors |
Mr Christopher Allender Mr Christopher McGinley |
Company secretary |
Mr Christopher Allender |
Registered office |
|
Auditor |
|
2 AM Management Company Limited
Strategic Report for the Year Ended 31 March 2023
The directors present their strategic report for the year ended 31 March 2023.
Fair review of the business
The overall sales received an increase of 8% on the previous year, gross profit was up on the previous year by 4%, and the resultant profit before tax had an decrease of 12% on the previous year.
The Directors are suitably pleased with the results and the direction the group has been following which has beaten internal budgets and exceeded expectations.
Principal risks and uncertainties
There are a number of risks and uncertainties that affect the operational activities of the group, increasing interest rates are adding an extra financial load to the group and industry in general. The Ukraine war is also contributing to variability with fuel prices and excess pressure within the transport sector, this is also another consideration driving the economic climate going forward.
Key Performance Indicators
We rely on the below Key performance indicators along with a number of internal KPI's including cash flow management, sales growth, weekly P&L, monthly internal management accounts and more.
2023 |
2022 |
Difference |
% |
|
Sales |
24,925,670 |
23,146,449 |
1,779,221 |
8 |
Gross Profit |
4,222,548 |
4,076,969 |
145,579 |
4 |
Operating Profit |
1,473,587 |
1,534,486 |
(60,899) |
(4) |
Profit Before Tax |
1,272,050 |
1,441,381 |
(169,331) |
(12) |
Approved and authorised by the
......................................... |
......................................... |
2 AM Management Company Limited
Directors' Report for the Year Ended 31 March 2023
The directors present their report and the for the year ended 31 March 2023.
Directors of the group
The directors who held office during the year were as follows:
Information included in the Strategic Report
The results for the year are set out on page 10. The profit for the year after taxation was £1,120,371. The dividends paid during the year totalled £478,365.
The directors are confident that the company will continue to increase turnover and profitability in the future period.
Employment of disabled persons
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
Employee involvement
The group's policy is to consult and discuss with employees, though unions, staff councils and at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance
the directors introduced a Employee Ownership Trust after the year end date, as a means of further encouraging the involvment of employees in the company's performance.
Disclosure of information to the auditor
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Auditor
The auditor, GBAC Limited, is deemed to be reappointed under section 487 (2) of the Companies Act 2006.
2 AM Management Company Limited
Directors' Report for the Year Ended 31 March 2023
Approved and authorised by the
......................................... |
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2 AM Management Company Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and the company and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
• |
select suitable accounting policies and apply them consistently; |
• |
make judgements and accounting estimates that are reasonable and prudent; |
• |
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• |
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
2 AM Management Company Limited
Independent Auditor's Report to the Members of 2 AM Management Company Limited
Opinion
We have audited the financial statements of 2am Management Company Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023 which comprise the group income statement, the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the group's and the parent company's affairs as at 31 March 2023 and of the group's profit for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
2 AM Management Company Limited
Independent Auditor's Report to the Members of 2 AM Management Company Limited
Other information
The other information comprises the information included in the annual report other than the financial statements and our auditors' 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.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
• |
the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the parent company financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors' remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the 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 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 company or to cease operations, or have no realistic alternative but to do so.
2 AM Management Company Limited
Independent Auditor's Report to the Members of 2 AM Management Company Limited
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
We obtained an understanding of the company and the sector in which it operates to identify laws and regulations that could reasonably be expected to have a direct effect on the financial statements. We obtained our understanding in this regard through discussions with management, application of cumulative audit knowledge and experience of the sector.
We determined the principal laws and regulations relevant to the company in this regard to be those arising from the Companies Act 2006, Local tax laws and regulations, Anti Money Laundering Legislation, Bribery Act 2010, Road Vehicles (Authorised Weight) Regulations 1998, Road Traffic Act 1988, Employment Agencies Act 1973 and Conduct of Employment Agencies & Employment Business Regulations 2003
We designed our audit procedures to ensure the audit team considered whether there were any indications of non-compliance by the company with those laws and regulations. These procedures included, but were not limited to; a review of general ledger transactions and discussions with management.
We also identified the risks of material misstatement of the financial statements due to fraud. We considered, in addition to the non-rebuttable presumption of a risk of fraud arising from management override of controls, including the potential for management bias identified in relation to the provisions and estimates and we addressed this by challenging the assumptions and judgements made by management when auditing that significant accounting estimate.
As in all of our audits, we addressed the risk of fraud arising from management override of controls by performing audit procedures which included, but were not limited to: the testing of journals; reviewing accounting estimates for evidence of bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditors/audit-assurance-ethics/auditors-responsibilities-for-the-audit. This description forms part of our auditors' report.
2 AM Management Company Limited
Independent Auditor's Report to the Members of 2 AM Management Company Limited
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
......................................
For and on behalf of
Old Linen Court
83-85 Shambles Street
South Yorkshire
S70 2SB
2 AM Management Company Limited
Consolidated Profit and Loss Account for the Year Ended 31 March 2023
Note |
2023 |
2022 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Other operating income |
|
|
|
Operating profit |
|
|
|
Other interest receivable and similar income |
|
|
|
Interest payable and similar expenses |
( |
( |
|
(201,537) |
(93,105) |
||
Profit before tax |
|
|
|
Tax on profit |
( |
( |
|
Profit for the financial year |
|
|
|
Profit/(loss) attributable to: |
|||
Owners of the company |
|
|
|
Minority interests |
|
|
|
|
|
2 AM Management Company Limited
Consolidated Statement of Comprehensive Income for the Year Ended 31 March 2023
2023 |
2022 |
|
Profit for the year |
|
|
Surplus on property, plant and equipment revaluation |
- |
|
Total comprehensive income for the year |
|
|
Total comprehensive income attributable to: |
||
Owners of the company |
|
|
Minority interests |
|
|
|
|
2 AM Management Company Limited
(Registration number: 06817611)
Consolidated Balance Sheet as at 31 March 2023
Note |
2023 |
2022 |
|
Fixed assets |
|||
Tangible assets |
|
|
|
Investment property |
|
|
|
Other financial assets |
25,000 |
25,000 |
|
|
|
||
Current assets |
|||
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
2 |
2 |
|
Revaluation reserve |
777,184 |
777,184 |
|
Other reserves |
(145,300) |
(145,300) |
|
Retained earnings |
3,816,286 |
3,203,892 |
|
Equity attributable to owners of the company |
4,448,172 |
3,835,778 |
|
Minority interests |
49,870 |
24,158 |
|
Shareholders' funds |
4,498,042 |
3,859,936 |
2 AM Management Company Limited
(Registration number: 06817611)
Consolidated Balance Sheet as at 31 March 2023
Approved and authorised by the
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......................................... |
2 AM Management Company Limited
(Registration number: 06817611)
Balance Sheet as at 31 March 2023
Note |
2023 |
2022 |
|
Fixed assets |
|||
Tangible assets |
|
|
|
Investment property |
|
|
|
Investments |
|
|
|
|
|
||
Current assets |
|||
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
2 |
2 |
|
Revaluation reserve |
777,184 |
777,184 |
|
Retained earnings |
3,366,280 |
2,754,935 |
|
Shareholders' funds |
4,143,466 |
3,532,121 |
As permitted by S408 Companies Act 2006, the company has not presented its own profit and loss account and related disclosures.
The company made a profit after tax for the financial year of £961,065 (2022 - profit of £956,306).
Approved and authorised by the
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2 AM Management Company Limited
Consolidated Statement of Changes in Equity for the Year Ended 31 March 2023
Share capital |
Revaluation reserve |
Other reserves |
Retained earnings |
Total |
Non- controlling interests |
Total equity |
|
At 1 April 2022 |
|
|
( |
|
|
|
|
Profit for the year |
- |
- |
- |
|
|
|
|
Dividends |
- |
- |
- |
( |
( |
- |
( |
At 31 March 2023 |
|
|
( |
|
|
|
|
Share capital |
Revaluation reserve |
Other reserves |
Retained earnings |
Total |
Non- controlling interests |
Total equity |
|
At 1 April 2021 |
|
- |
( |
|
|
- |
|
Profit for the year |
- |
- |
- |
|
|
|
|
Other comprehensive income |
- |
|
- |
- |
|
- |
|
Total comprehensive income |
- |
|
- |
|
|
|
|
Dividends |
- |
- |
- |
( |
( |
- |
( |
At 31 March 2022 (As restated) |
2 |
777,184 |
(145,300) |
3,203,892 |
3,835,778 |
24,158 |
3,859,936 |
2 AM Management Company Limited
Statement of Changes in Equity for the Year Ended 31 March 2023
Equity attributable to the parent company
Share capital |
Revaluation reserve |
Retained earnings |
Total |
|
At 1 April 2022 |
|
|
|
|
Profit for the year |
- |
- |
|
|
Dividends |
- |
- |
( |
( |
At 31 March 2023 |
|
|
|
|
Share capital |
Revaluation reserve |
Retained earnings |
Total |
|
At 1 April 2021 |
|
- |
|
|
Profit for the year |
- |
- |
|
|
Other comprehensive income |
- |
|
- |
|
Total comprehensive income |
- |
|
|
|
Dividends |
- |
- |
( |
( |
At 31 March 2022 |
|
|
|
|
2 AM Management Company Limited
Consolidated Statement of Cash Flows for the Year Ended 31 March 2023
Note |
2023 |
2022 |
|
Cash flows from operating activities |
|||
Profit for the year |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Profit on disposal of tangible assets |
( |
( |
|
Finance income |
( |
( |
|
Finance costs |
|
|
|
Income tax expense |
|
|
|
|
|
||
Working capital adjustments |
|||
Increase in trade debtors |
( |
( |
|
Decrease in trade creditors |
( |
( |
|
Cash generated from operations |
|
|
|
Income taxes paid |
( |
( |
|
Net cash flow from operating activities |
|
|
|
Cash flows from investing activities |
|||
Interest received |
|
|
|
Acquisitions of tangible assets |
( |
( |
|
Proceeds from sale of tangible assets |
|
|
|
Acquisition of investment properties |
( |
- |
|
Dividend income |
- |
|
|
Net cash flows from investing activities |
( |
( |
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Proceeds from bank borrowing draw downs |
- |
( |
|
Repayment of other borrowing |
( |
|
|
Payments to finance lease creditors |
|
|
|
Dividends paid |
( |
( |
|
Net cash flows from financing activities |
( |
|
|
Net (decrease)/increase in cash and cash equivalents |
( |
|
|
Cash and cash equivalents at 1 April |
|
|
|
Cash and cash equivalents at 31 March |
1,223,966 |
2,287,702 |
2 AM Management Company Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
General information |
The company is a private company limited by share capital, incorporated in England.
The address of its registered office is:
These financial statements were authorised for issue by the
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 March 2023.
2 AM Management Company Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company 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.
Key sources of estimation uncertainty
The preparation of financial information requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Judgements and estimates are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The resulting accounting estimates may differ from the related actual results.
There are no key judgements, estimates or assumptions that have been made by the directors in the preparation of these financial statements.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the group’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the group.
2 AM Management Company Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the consolidated financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
2 AM Management Company Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Office Equipment |
33% Straight Line |
Motor Vehicles |
20% Straight Line |
Fixtures and Fittings |
33% Straight Line |
Plant and equipment |
2 year straight Line |
Investment property
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the receivables.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
2 AM Management Company Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the group’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recoginised as part of the cost of stock or non-current assets.
The cost of any unused holiday entitlement is recogined 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.
2 AM Management Company Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
Revenue |
The analysis of the group's revenue for the year from continuing operations is as follows:
2023 |
2022 |
|
Hiring out commercial vehicles and drivers |
17,203,861 |
16,111,319 |
Provision of temporary staff |
7,648,194 |
6,985,797 |
Rental income |
73,615 |
49,333 |
|
|
The analysis of the group's Turnover for the year by market is as follows:
2023 |
2022 |
|
UK |
|
|
Other operating income |
The analysis of the group's other operating income for the year is as follows:
2023 |
2022 |
|
Government grants |
|
|
Miscellaneous other operating income |
|
|
|
|
Other gains and losses |
The analysis of the group's other gains and losses for the year is as follows:
2023 |
2022 |
|
Gain on disposal of Tangible assets |
|
|
Operating profit |
Arrived at after charging/(crediting)
2023 |
2022 |
|
Depreciation expense |
|
|
Profit on disposal of property, plant and equipment |
( |
( |
2 AM Management Company Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
Other interest receivable and similar income |
2023 |
2022 |
|
Interest income on bank deposits |
|
|
Dividend income |
- |
|
|
|
Interest payable and similar expenses |
2023 |
2022 |
|
Interest on bank overdrafts and borrowings |
- |
|
Interest on obligations under finance leases and hire purchase contracts |
|
|
Interest expense on other finance liabilities |
|
|
Other finance costs |
|
|
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2023 |
2022 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Other short-term employee benefits |
|
|
Pension costs, defined contribution scheme |
|
|
Other employee expense |
|
|
|
|
The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:
2023 |
2022 |
|
Administration and support |
|
|
Distribution |
|
|
Other departments |
|
|
|
|
2 AM Management Company Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
Directors' remuneration |
The directors' remuneration for the year was as follows:
2023 |
2022 |
|
Remuneration |
|
|
Contributions paid to money purchase schemes |
|
|
139,765 |
134,241 |
Auditors' remuneration |
2023 |
2022 |
|
Group and Parent |
4,000 |
1,900 |
Subsidiaries |
14,000 |
14,785 |
|
|
Taxation |
Tax charged/(credited) in the consolidated profit and loss account
2023 |
2022 |
|
Current taxation |
||
UK corporation tax |
|
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
|
|
Tax expense in the income statement |
|
|
2 AM Management Company Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2022 - the same as the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2023 |
2022 |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Tax (decrease)/increase from effect of capital allowances and depreciation |
( |
|
Total tax charge |
|
|
The future taxable losses carried forward are £1,099,702.
2 AM Management Company Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
Tangible assets |
Group
Land and buildings |
Furniture, fittings and equipment |
Motor vehicles |
Other tangible assets |
Total |
|
Cost or valuation |
|||||
At 1 April 2022 |
|
|
|
|
|
Additions |
|
|
|
|
|
Disposals |
- |
- |
( |
- |
( |
At 31 March 2023 |
|
|
|
|
|
Depreciation |
|||||
At 1 April 2022 |
- |
|
|
|
|
Charge for the year |
- |
|
|
|
|
Eliminated on disposal |
- |
- |
( |
- |
( |
At 31 March 2023 |
- |
|
|
|
|
Carrying amount |
|||||
At 31 March 2023 |
|
|
|
|
|
At 31 March 2022 (As Restated) |
|
|
|
|
|
Included within the net book value of land and buildings above is £1,925,579 (2022 - £1,900,000) in respect of leasehold land and buildings.
2 AM Management Company Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
Assets held under finance leases and hire purchase contracts
The depreciation charged during the year was £642,173 (2022: £459,760).
The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:
2023 |
2022 |
|
Plant & Machinery |
2,975,244 |
1,961,989 |
2 AM Management Company Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
Company
Land and buildings |
Furniture, fittings and equipment |
Motor vehicles |
Other tangible assets |
Total |
|
Cost or valuation |
|||||
At 1 April 2022 |
|
|
|
|
|
Additions |
|
|
- |
- |
|
At 31 March 2023 |
|
|
|
|
|
Depreciation |
|||||
At 1 April 2022 |
- |
|
|
|
|
Charge for the year |
- |
|
|
|
|
At 31 March 2023 |
- |
|
|
|
|
Carrying amount |
|||||
At 31 March 2023 |
|
|
|
|
|
At 31 March 2022 (As Restated) |
|
|
|
|
|
Included within the net book value of land and buildings above is £1,925,579 (2022 - £1,900,000) in respect of leasehold land and buildings.
2 AM Management Company Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
Investment properties |
Group
2023 |
Restated |
|
At 1 April |
|
- |
Acquired through business combinations |
|
248,827 |
At 31 March |
|
248,827 |
There has been no valuation of investment property by an independent valuer.
The original valuations upon purchase were £550,000.
Company
2023 |
Restated |
|
At 1 April |
|
- |
Acquired through business combinations |
|
248,827 |
At 31 March |
|
248,827 |
There has been no valuation of investment property by an independent valuer.
The original valuations upon purchase were £550,000.
Investments |
Group
Details of undertakings
Details of the investments in which the group holds 20% or more of the nominal value of any class of share capital are as follows:
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
2023 |
2022 |
|||
Subsidiary undertakings |
||||
|
|
|
|
|
England |
||||
|
|
|
|
|
England |
2 AM Management Company Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
|
|
|
|
|
England |
Subsidiary undertakings
Talstaff Limited The principal activity of Talstaff Limited is |
Stanton Logistics Limited The principal activity of Stanton Logistics Limited is |
Transport & Logistics Staff Limited The principal activity of Transport & Logistics Staff Limited is |
Company
2023 |
2022 |
|
Investments in subsidiaries |
|
|
Subsidiaries |
£ |
Cost or valuation |
|
At 1 April 2022 |
|
Provision |
|
Carrying amount |
|
At 31 March 2023 |
|
At 31 March 2022 |
|
2 AM Management Company Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
Other financial assets |
Group
Financial assets at cost less impairment |
Total |
|
Non-current financial assets |
||
Cost or valuation |
||
At 1 April 2022 |
25,000 |
25,000 |
At 31 March 2023 |
25,000 |
25,000 |
Impairment |
||
Carrying amount |
||
At 31 March 2023 |
|
25,000 |
Debtors |
Group |
Company |
||||
Current |
Note |
2023 |
2022 |
2023 |
2022 |
Trade debtors |
|
|
|
|
|
Other debtors |
|
|
|
|
|
Prepayments |
|
|
|
|
|
Accrued income |
|
|
- |
- |
|
Income tax asset |
- |
|
- |
|
|
|
|
|
|
Group
The carrying amount of trade debtors pledged as security for liabilities amounted to £1,666.100 (2022 - £2,336,599).
Cash and cash equivalents |
Group |
Company |
|||
2023 |
2022 |
2023 |
2022 |
|
Cash at bank |
|
|
|
|
2 AM Management Company Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
Creditors |
Group |
Company |
||||
Note |
2023 |
2022 |
2023 |
2022 |
|
Due within one year |
|||||
Loans and borrowings |
|
|
- |
- |
|
Trade creditors |
|
|
|
|
|
Social security and other taxes |
|
|
|
|
|
Outstanding defined contribution pension costs |
|
|
|
- |
|
Other payables |
|
|
- |
|
|
Accruals |
|
|
|
|
|
Income tax liability |
99,830 |
108,338 |
29,510 |
- |
|
|
|
|
|
||
Due after one year |
|||||
Loans and borrowings |
|
|
- |
- |
Provisions for liabilities |
Group
Deferred tax |
Total |
|
At 1 April 2022 |
|
|
Additional provisions |
|
|
At 31 March 2023 |
|
|
|
Company
Deferred tax |
Total |
|
At 1 April 2022 |
|
|
Additional provisions |
( |
( |
At 31 March 2023 |
|
|
|
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £
Contributions totalling £
2 AM Management Company Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
Share capital |
Allotted, called up and fully paid shares
2023 |
2022 |
|||
No. |
£ |
No. |
£ |
|
|
|
1.80 |
|
1.80 |
|
|
0.20 |
|
0.20 |
|
|
|
|
Loans and borrowings |
Group |
Company |
|||
2023 |
2022 |
2023 |
2022 |
|
Non-current loans and borrowings |
||||
Finance lease liabilities |
|
|
- |
- |
Group |
Company |
|||
2023 |
2022 |
2023 |
2022 |
|
Current loans and borrowings |
||||
Finance lease liabilities |
|
|
- |
- |
Other borrowings |
|
|
- |
- |
|
|
- |
- |
Group
Finance leases are secured against the assets to which they relate.
Other Borrowings
Advances against invoices in Stanton Logistics Limited and Talstaff Limited are secured by a first charge over trade debtors, a personal guarantee of £25,000 from each director and a cross guarantee with 2AM Management Company Ltd.
Commitments |
Group
Capital commitments
The total amount contracted for but not provided in the financial statements was £Nil (2022 - £
2 AM Management Company Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
Related party transactions |
Group
Summary of transactions with other related parties
During the year the group borrowed money to CMA Lettings and Developments Ltd, a company in which Mr C McGinley and Mr C Allender are directors. The balance outstanding at the year of the year was £760,325 owing to 2AM Management Company Ltd.
Non adjusting events after the financial period |
|
Prior year adjustment |
The accounts have been restated to incorporate the misclassification of £248,827 of Investment properties as freehold property. The minority interest was amended.