Registered Number:
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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COMPANY INFORMATION
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CONTENTS
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GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
The principal activity of the Company is a holding company for the wholly owned subsidiaries being Europlaz Technologies Ltd and Nua Medical Limited.
The principal activity of Europlaz Technologies Ltd is to provide design, engineering and manufacturing expertise for the medical device industry. This represents the majority of the Group's turnover. Europlaz works across the entire life cycle of a product, from concept design to manufacturing to after-market services. Nua Medical is a dormant company during the year.
The Group had a very successful year in trading, reporting a 23% increase in turnover and a profit after tax of £2,091,222 (2022: £1,995,357) which has met the Directors’ expectations.
Through careful cost control, the Group has reported an increase in gross margin to 44% (2022: 47%) despite price increases in polymers, energy, packing materials and haulage during the year. The Group has carefully managed the global shortage of manufactured products, closely monitoring lead times and stock turnover. The Group continues to maximise its investment in the business, ensuring that the Group is well placed to meet the increasing challenges of product demand, product availability and manufacturing capacity. The Company achieved an OTIF rating of 98% in the year. The financial position at year end was considered satisfactory by the Directors of the Group to enter its operations for the following year. The Directors feel that the Group is now well placed to exploit market opportunities as they arise or are created, and thereby improve revenue and profitability going forward. During the year the Group continued to invest in improvements to its facilities and allocates a minimum of 25% of EBITDA annually for capital upgrades. The Group replaced two of its injection moulding machines with fully electric energy efficient ones. In addition, the Group has implemented further energy efficiency projects such as solar panelling which has generated a total of 136.8mWh in the year (2022: 79.5mWh) to help mitigate the increased energy costs. For the emissions that we control directly, the Company is focusing on achieving net zero by 2040, with an ambition to reach an 80% reduction by 2028 to 2032.
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
The Group managed to trade successfully throughout the period, given the current state of the economy, and the Directors are pleased that this is a demonstration of the resilience of the overall trading model.
Other key risks faced by the Group are eroding margins in core products and upwards pressure on overheads. The Directors expect profitability to remain under pressure during the coming year with a lot of risk and uncertainty in the world. High inflation rates along with the continued increase in polymer prices and increased energy costs have resulted in cost increases across all areas of the business. The Directors also believe that their employees are a very important resource for the business. It is key that the Group maintains a stable and skilled workforce. Principal financial instruments are trade debtors and creditors arising directly from sales. Liquidity risk: The Group manages its cash requirements to ensure sufficient liquid resources to meet its liabilities as they fall due. They considers working capital management, particularly cash flow, to be key to the management of the Group. Credit risk: Customers are subject to credit verification procedures and debtors are regularly reviewed and action taken to mitigate any potential bad debts.
The Directors consider the key performance indicators to be turnover, margin and unit costs of products. The Directors were satisfied with the resultant KPls which demonstrated that unit costs have been kept under control despite inflationary pressures. Given the challenging economic environment, the Directors are satisfied with the results achieved.
This report was approved by the board on 19 October 2023 and signed on its behalf.
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DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
The directors present their report and the financial statements for the year ended 31 March 2023.
The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation, amounted to £2,091,222 (2022 - £1,995,357).
Particulars of dividends can be found in note 13.
The directors who served during the year were:
Despite the current economic climate and level of uncertainty, the Group has managed to continue to serve customers and make healthy profits ahead of its set budgets. The Group plans to expand its customer base further as well as investing in capital enhancements to service them.
Details of the Group's future developments, financial risk management objectives and policies, use of financial instruments, and the key risks to which it is exposed are included in the Strategic Report.
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OAKLEAF GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
There have been no significant events affecting the Group since the year end.
The auditor, SB Audit LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF OAKLEAF GROUP LIMITED
We have audited the financial statements of Oakleaf Group Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 March 2023, which comprise the Group Statement of Comprehensive Income, the Group and Company Balance Sheets, the Group Statement of Cash Flows, the Group and Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
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 in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
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 or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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OAKLEAF GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF OAKLEAF GROUP LIMITED (CONTINUED)
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.
Other matters - prior year financial statements unaudited The Company was not required to have a statutory audit for the year ended 31 March 2022 as it was entitled to exemption by the provision of the Companies Act 2006 relating to the audit of financial statements by virtue of Section 477 and no member or members requested an audit pursuant to Section 476 of the Act. Accordingly, the corresponding figures for the year ended 31 March 2022 are unaudited.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.
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OAKLEAF GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF OAKLEAF GROUP LIMITED (CONTINUED)
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OAKLEAF GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF OAKLEAF GROUP LIMITED (CONTINUED)
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 Group financial statements.
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 identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience and through discussions and enquiries of Directors and management. During the engagement team briefing, the outcomes of these discussions were shared with the team, as well as consideration as to where and how fraud may occur in the Group. The following laws and regulations were identified as being of significance to the Group: • Those laws and regulations considered to have a direct effect on the financial statements including UK financial reporting standards and UK Company Law; and • Those laws and regulations considered to have an indirect effect on the financial statements including the Health & Safety Act 1974, COSHH, IOS13485 and REACH regulations. Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: enquiries of management and those charged with governance as to whether the Group complies with such regulations; enquiries of management and those charged with governance concerning any actual or potential litigation or claims, inspection of relevant legal documentation, review of board minutes, testing the appropriateness of journal entries and the performance of analytical review to identify any unexpected movements in account balances which may be indicative of fraud. There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's Report.
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OAKLEAF GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF OAKLEAF GROUP LIMITED (CONTINUED)
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
Chartered Accountants
Statutory Auditor
Fitzroy House
Crown Street
Suffolk
IP1 3LG
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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
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CONSOLIDATED BALANCE SHEET
AS AT 31 MARCH 2023
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CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 19 October 2023.
The notes on pages 20 to 40 form part of these financial statements.
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COMPANY BALANCE SHEET
AS AT 31 MARCH 2023
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COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 20 to 40 form part of these financial statements.
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
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COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
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CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
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CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
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CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 MARCH 2023
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
Oakleaf Group Limited (the "Company") is a private company limited by shares, registered in England and Wales. The address of the registered office is Unit 10-12, The Maltings Industrial Estate, Southminster, Essex, CM0 7EQ.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.
The following principal accounting policies have been applied:
On 20 December 2019 Oakleaf Group Limited undertook a group reconstruction. This exercise involved acquiring the share capital of its subsidiary undertaking Europlaz Technologies Ltd on the same date by way of a share for share exchange.
As the net book value of the acquisition would have exceeded 10% of the nominal value of the new shares issued, compliance with the detailed requirements of the Companies Act 2006 would have required the restructuring to be accounted for as an acquisition. This would have resulted in the separable assets and liabilities as at 20 December 2019 being recorded at their fair values, substantial goodwill and amortisation charges and only post group reconstruction results of Europlaz Technologies Ltd being reported in the consolidated profit and loss account. The directors do not believe that this would give a true and fair view of the state of affairs of the group and of its results as in substance the transfer of the ownership represents a group reconstruction in accordance with FRS 102 due to the fact that ultimate ownership has not changed rather than being an acquisition of a business. Consequently the reconstruction has been accounted for using merger accounting principles. The directors consider that this is necessary in order to meet the overriding requirement of the Companies Act 2006 to show a true and fair view. The directors consider that it is not practical to quantify this departure from the detailed accounting requirements. The Group has prepared a consolidated profit and loss account for the year ended 31 March 2023 and a consolidated balance sheet following merger accounting rules.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2.Accounting policies (continued)
The consolidated financial statements consist of the financial statements of the parent company Oakleaf Group Limited together with all entities controlled by the parent company (its subsidiaries).
All financial statements are made up to 31 March 2023. Where necessary, adjustments are made to the financial statements of the subsidiaries to bring the accounting policies used in line with those used by other members of the group. All intra-group transactions, balances and unrealised gains on transactions between Group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Subsidiaries are consolidated in the Group's financial statements from the date that control commences until the date that control ceases.
The Group has a strong financial position at the balance sheet date and has continued to perform strongly since the year-end. The directors have made enquiries, reviewed cashflow forecasts and believe that the Group will be able to continue to trade and meet its liabilities for 12 months from the expected date of approval of these financial statements, which continue to be prepared on a going concern basis.
Functional and presentation currency
Transactions and balances
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2.Accounting policies (continued)
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2.Accounting policies (continued)
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only. Grants of a revenue nature are recognised in the Consolidated Statement of Comprehensive Income in the same period as the related expenditure.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2.Accounting policies (continued)
At each reporting date the Group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2.Accounting policies (continued)
Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2.Accounting policies (continued)
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
The items in the financial statements where estimates and underlying assumptions have been made include valuation of freehold property and freehold investment property, useful economic lives and impairment of fixed assets as well as recoverability of trade debtors, these 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.
Analysis of turnover by geographical market is as follows::
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
12.Taxation (continued)
In the 2021 Spring Budget, the Government announced that from 1 April 2023 the corporation tax rate will increase to 25%. This was substantively enacted in 2021 and is therefore used to measure UK deferred taxes in both 2021 and 2022, to the extent the related timing differences are expected to reverse in 2023 or later.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
The investment properties were valued on an open market basis on 20 June 2022 by Fenn Wright. The directors have adopted this valuation at 31 March 2022 and 31 March 2023.
The investment properties were valued on an open market basis on 20 June 2022 by Fenn Wright. The directors have adopted this valuation at 31 March 2022 and 31 March 2023.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 35 -
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
The obligations under finance lease and hire purchase contracts are secured against the assets to which they relate.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 37 -
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
Revaluation reserve
Profit and loss account
The investment property revaluation reserve as at 31 March 2022 has been updated to gross up fair value losses that had incorrectly been offset against fair value gains. The net impact is an increase to the profit and loss account of £155,215 and a corresponding reduction to the investment property revaluation reserve.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund.The pension cost charge represents contributions payable by the Group to the fund and amounted to £111,564 (2022 - £64,397). Contributions totalling £24,425 (2022 - £19,980) were payable to the fund at the balance sheet date and are included in creditors.
As at 31 March 2023 the Group owed £3,019 to E D O'Keeffe (2022: E D O'Keeffe owed £201,877 to the Group), who is a director of the Company. The maximum overdrawn balance during the year was £419,580 (2022: £420,271). During the year the company charged interest on the balance of £3,764 (2022: £Nil).
As at 31 March 2023 the Group was owed £702,778 (2022: £Nil) by R O'Keeffe, who is a director of the Company. The maximum overdrawn balance during the year was £702,778 (2022: £Nil). As at 31 March 2023 the Company was owed £Nil (2022: £200,000) by Ms K H P O'Keeffe Shah, who is a director of the Europlaz Technologies Ltd. The maximum overdrawn balance during the year was £200,000 (2022: £200,000).
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
The Group considers E D O'Keeffe to be the ultimate controlling party by virtue of his shareholding in the parent company.
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