REGISTERED NUMBER: 09501942 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MAY 2023 |
FOR |
ASSOCIATED CONTINUITY TEAMS HOLDINGS |
LIMITED |
REGISTERED NUMBER: 09501942 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MAY 2023 |
FOR |
ASSOCIATED CONTINUITY TEAMS HOLDINGS |
LIMITED |
ASSOCIATED CONTINUITY TEAMS HOLDINGS |
LIMITED (REGISTERED NUMBER: 09501942) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MAY 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Consolidated Statement of Comprehensive Income | 10 |
Consolidated Balance Sheet | 11 |
Company Balance Sheet | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Financial Statements | 18 |
ASSOCIATED CONTINUITY TEAMS HOLDINGS |
LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 MAY 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
The Lightbox |
87 Castle Street |
Reading |
Berkshire |
RG1 7SN |
ASSOCIATED CONTINUITY TEAMS HOLDINGS |
LIMITED (REGISTERED NUMBER: 09501942) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MAY 2023 |
The directors present their strategic report of the company and the group for the year ended 31 May 2023. |
REVIEW OF BUSINESS |
The Company's key performance indicators include revenue, operating profit, gross profit, gross profit percentage and administrative expenses, each of which is discussed in detail later in the report. |
The year ended 31 May 2023 has been clear of the impact of the Covid pandemic and unaffected by lockdowns and trading performance of the trading subsidiary Associated Continuity Teams Limited has consistently and steadily increased over the year and the directors are satisfied with the reported level of revenue and trading profitability within the subsidiary for the year. |
During the year ended 31 May 2021 the group secured new bank funding through the governments CBILS initiative. Trading levels, profitability and cash generation within the trading subsidiary company have since exceeded the forecast prepared in agreeing the new funding and the group has comfortably met all repayments and obligations of the funding. |
The directors are confident of further recovery in activity, expecting increased revenues and profitability in future years. |
PRINCIPAL RISKS AND UNCERTAINTIES |
UK Economy |
The 2016 referendum vote for the UK to leave the European Community may eventually impact the level of net migration into the UK, through the full impact cannot be assessed. The Company is confident that in the current competitive market for staff recruitment, that its recruitment channels and systems will continue to ensure its success in attracting new employees. |
Liquidity risk |
The business is in part funded by loans from other group companies and invoice discounting facility. The loans and invoice discounting facility were agreed in May 2021. The Company has operated well within the total amount of the available facility and the directors are confident that all future obligations will be met. |
Market risk |
The Company continues to develop its skills offerings and understanding and improving service levels to clients as we feel these are vital to the management and mitigation of market risks. |
Human Resources |
The business has continually developed its human resource recruitment and payroll systems and will continue to do so. This will improve reliability and efficiency in the volume processing of staff. |
ASSOCIATED CONTINUITY TEAMS HOLDINGS |
LIMITED (REGISTERED NUMBER: 09501942) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MAY 2023 |
ENGAGEMENT WITH EMPLOYEES |
The Company places considerable value on the involvement of its employees and continues to keep them informed on matters affecting them as employees and on the various factors affecting the performance of the Company. |
The Company has a policy of continuous improvement at all levels throughout the business and actively seeks to promote advancement of front line staff to supervisor and management positions, both within the operations team and into the support teams. |
We have a strong diversity culture and employ people from a large number of countries and ethnic backgrounds. |
DISABLED EMPLOYEES |
Applications for employment by disabled persons are always fully considered, bering in mind the abilities of the applicant concerned. In the event of members of staff becoming disabled every effort is made to ensure that their employment with the Company continues and that appropriate training is arranged. It is the policy of the Company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees. |
GOING CONCERN |
As the country recovered from the Covid-19 pandemic and with increased visibility of returning revenues and a substantial reduction in overhead costs in the trading subsidiary, the Group secured new bank funding via the Governments CBILS facilities in May 2021. In addition to the CBILS facilities the Group has agreed with its bankers an invoice discounting facility sufficient to fund working capital increase as future trading activity increases in the trading subsidiary. |
During the year ended the 31 May 2023 the level of trading profitability and cash generation in the trading subsidiary exceeded that assumed in the post recovery forecast and the Group has passed all banking covenant tests. The current levels of trading and profitability is sufficient to ensure future banking covenant tests will be passed even with no further recovery. |
With the operating profit in the main trading company at the level included in the forecasts the directors have a reasonable expectation that there are adequate resources to continue in operational existence for the foreseeable future. |
Whilst there is some uncertainty relating to future trading due to the current UK economic position. The directors have completed a conservative set of forecasts based on no improvement to current trading levels that show that the Company will be able to meet liabilities as they fall due. |
The directors therefore continue to adopt the going concern basis of accounting in preparing these financial statements. |
ON BEHALF OF THE BOARD: |
ASSOCIATED CONTINUITY TEAMS HOLDINGS |
LIMITED (REGISTERED NUMBER: 09501942) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MAY 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 May 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of providing cleaning and support services to the luxury hospitality sector. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 May 2023. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 June 2022 to the date of this report. |
When the COVID-19 pandemic locked down the UK Hospitality market in March 2020 trading revenues reduced to just 1% of the pre COVID rate, with all our restaurant and hotel customers closing their businesses. The business immediately focused upon the collection of the pre COVID debtor book and the control and reduction of all non-necessary overhead spend. The majority of the workforce were furloughed under the Job Retention Scheme and the business took advantage of the HMRC deferrals of PAYE and VAT payments to assist cashflow. |
As the country recovered from the COVID-19 pandemic and with increased visibility of returning revenues and with a substantial reduction in overhead costs, the Group prepared a post recovery forecast and secured new bank funding via the Governments CBILS facilities in May 2021. In addition to the CBILS facilities, the Group has agreed with its bankers an invoice discounting facility sufficient to fund working capital increase as future trading activity increases. |
During the year ended 31 May 2023, the level of trading profitability and cash generation exceeded that assumed in the post recovery forecast and the Group has passed all banking covenant tests. The current levels of trading and profitability is sufficient to ensure future bank covenant tests will be passed even with no further recovery. |
Whilst any further negative impact from the coronavirus would seem small, there is now some uncertainty relating to future trading due to the current UK economic position. The directors have completed a conservative set of forecasts based on no improvement to current trading levels that show that the Group will be able to meet liabilities as they fall due, the Group will not breach its bank covenants. |
The directors believe that they have a strong relationship with investors and bankers and therefore should a scenario worse that the conservative scenario present itself, amended terms of funding would be agreed with the Group's bankers or new financing arrangements obtained to allow the business to continue to trade. |
The directors therefore continue to adopt the going concern basis of accounting in preparing these financial statements. The financial statements do not include the adjustments that would result if the Group and Company were unable to continue as a going concern. |
ASSOCIATED CONTINUITY TEAMS HOLDINGS |
LIMITED (REGISTERED NUMBER: 09501942) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MAY 2023 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, Haines Watts, Statutory Auditor, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ASSOCIATED CONTINUITY TEAMS HOLDINGS |
LIMITED |
Opinion |
We have audited the financial statements of Associated Continuity Teams Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 May 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 May 2023 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other matters |
The financial statements of the Company for the year-ended 31 May 2022 were audited by another auditor who expressed an unmodified opinion of those statements on 20 December 2022. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ASSOCIATED CONTINUITY TEAMS HOLDINGS |
LIMITED |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ASSOCIATED CONTINUITY TEAMS HOLDINGS |
LIMITED |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We obtained an understanding of the legal and regulatory framework applicable to the Group, including the Company, and the industry in which it operates. We determined that the following laws and regulations were most significant: FRS - the Financial Reporting Standard applicable in the UK & The Republic of Ireland, the Companies Act 2006 and relevant tax compliance regulations in the UK. |
We obtained an understanding of how the Group is complying with those legal and regulatory frameworks by making enquiries of management. |
We assessed the susceptibility of the group's financial statements to material misstatement, including how fraud might occur, by meeting with management to understand where management considered there was susceptibility to fraud. Audit procedures performed by the audit team included: |
- Challenging assumptions and judgements made by management in its significant accounting estimates; |
- Identifying and testing journal entries, with a focus on entries made with unusual accounting combinations; |
- Confirming with management whether they have knowledge of any actual, suspected or illegal fraud; |
- Evaluating whether there was evidence of bias by management that represents a risk of material |
misstatement due to fraud. |
These procedures were designed to provide reasonable assurance that the financial statements were free from fraud or error. |
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance will all laws and regulations. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ASSOCIATED CONTINUITY TEAMS HOLDINGS |
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 a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants |
The Lightbox |
87 Castle Street |
Reading |
Berkshire |
RG1 7SN |
ASSOCIATED CONTINUITY TEAMS HOLDINGS |
LIMITED (REGISTERED NUMBER: 09501942) |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 MAY 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 13,010,826 | 10,779,488 |
Cost of sales | 10,462,848 | 8,432,014 |
GROSS PROFIT | 2,547,978 | 2,347,474 |
Administrative expenses | 1,927,467 | 1,836,449 |
620,511 | 511,025 |
Other operating income | - | 69,494 |
OPERATING PROFIT | 5 | 620,511 | 580,519 |
Interest payable and similar expenses | 7 | 105,401 | 319,486 |
PROFIT BEFORE TAXATION | 515,110 | 261,033 |
Tax on profit | 8 | 85,508 | 71,231 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
429,602 |
189,802 |
Profit attributable to: |
Owners of the parent | 429,602 | 189,802 |
Total comprehensive income attributable to: |
Owners of the parent | 429,602 | 189,802 |
ASSOCIATED CONTINUITY TEAMS HOLDINGS |
LIMITED (REGISTERED NUMBER: 09501942) |
CONSOLIDATED BALANCE SHEET |
31 MAY 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 | 321,657 | 482,486 |
Tangible assets | 11 | 109,763 | 52,010 |
Investments | 12 | - | - |
431,420 | 534,496 |
CURRENT ASSETS |
Debtors | 13 | 1,901,548 | 1,864,981 |
Cash at bank and in hand | 48,579 | 137,935 |
1,950,127 | 2,002,916 |
CREDITORS |
Amounts falling due within one year | 14 | 2,247,444 | 2,497,904 |
NET CURRENT LIABILITIES | (297,317 | ) | (494,988 | ) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
134,103 |
39,508 |
CREDITORS |
Amounts falling due after more than one year |
15 |
(825,000 |
) |
(1,125,000 |
) |
PROVISIONS FOR LIABILITIES | 18 | (85,615 | ) | (120,622 | ) |
NET LIABILITIES | (776,512 | ) | (1,206,114 | ) |
CAPITAL AND RESERVES |
Called up share capital | 19 | 91,106 | 91,106 |
Capital contribution reserve | 20 | 10,115,647 | 10,115,647 |
Retained earnings | 20 | (10,983,265 | ) | (11,412,867 | ) |
SHAREHOLDERS' FUNDS | (776,512 | ) | (1,206,114 | ) |
The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on 30 November 2023 and were signed on its behalf by: |
D E Murray - Director |
ASSOCIATED CONTINUITY TEAMS HOLDINGS |
LIMITED (REGISTERED NUMBER: 09501942) |
COMPANY BALANCE SHEET |
31 MAY 2023 |
2023 | 2022 |
Notes | £ | £ |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
( |
) |
( |
) |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Capital contribution reserve | 20 |
Retained earnings | 20 | ( |
) | ( |
) |
SHAREHOLDERS' FUNDS | ( |
) | ( |
) |
Company's profit/(loss) for the financial year |
101,281 |
(132,884 |
) |
The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on |
ASSOCIATED CONTINUITY TEAMS HOLDINGS |
LIMITED (REGISTERED NUMBER: 09501942) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 MAY 2023 |
Called up | Capital |
share | Retained | contribution | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 June 2021 | 100,100 | (11,602,669 | ) | - | (11,502,569 | ) |
Changes in equity |
Reduction in share capital | (8,994 | ) | - | - | (8,994 | ) |
Total comprehensive income | - | 189,802 | - | 189,802 |
Waiver of loan notes payable |
and accrued unpaid interest | - | - | 10,115,647 | 10,115,647 |
Balance at 31 May 2022 | 91,106 | (11,412,867 | ) | 10,115,647 | (1,206,114 | ) |
Changes in equity |
Total comprehensive income | - | 429,602 | - | 429,602 |
Balance at 31 May 2023 | 91,106 | (10,983,265 | ) | 10,115,647 | (776,512 | ) |
ASSOCIATED CONTINUITY TEAMS HOLDINGS |
LIMITED (REGISTERED NUMBER: 09501942) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 MAY 2023 |
Called up | Capital |
share | Retained | contribution | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 June 2021 | ( |
) | ( |
) |
Changes in equity |
Reduction in share capital | (8,994 | ) | - | - | (8,994 | ) |
Total comprehensive income | - | ( |
) | ( |
) |
Waiver of loan notes payable |
and accrued unpaid interest | - | - | 3,206,320 | 3,206,320 |
Balance at 31 May 2022 | ( |
) | ( |
) |
Changes in equity |
Total comprehensive income | - |
Balance at 31 May 2023 | ( |
) | ( |
) |
ASSOCIATED CONTINUITY TEAMS HOLDINGS |
LIMITED (REGISTERED NUMBER: 09501942) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MAY 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 288,189 | (771,043 | ) |
Interest paid | (105,401 | ) | (17,546 | ) |
Tax paid | 117,586 | (33,574 | ) |
Net cash from operating activities | 300,374 | (822,163 | ) |
Cash flows from investing activities |
Purchase of tangible fixed assets | (89,730 | ) | (25,738 | ) |
Net cash from investing activities | (89,730 | ) | (25,738 | ) |
Cash flows from financing activities |
Loan repayments in year | (300,000 | ) | (75,000 | ) |
Share issue | - | (8,994 | ) |
Net cash from financing activities | (300,000 | ) | (83,994 | ) |
Decrease in cash and cash equivalents | (89,356 | ) | (931,895 | ) |
Cash and cash equivalents at beginning of year |
2 |
137,935 |
1,069,830 |
Cash and cash equivalents at end of year |
2 |
48,579 |
137,935 |
ASSOCIATED CONTINUITY TEAMS HOLDINGS |
LIMITED (REGISTERED NUMBER: 09501942) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MAY 2023 |
1. | RECONCILIATION OF PROFIT FOR THE FINANCIAL YEAR TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit for the financial year | 429,602 | 189,802 |
Depreciation charges | 192,805 | 202,897 |
Amounts owed by related parties | (107,742 | ) | 119,547 |
CBILS Business interruption payment | - | (61,800 | ) |
Finance costs | 105,401 | 319,486 |
Taxation | 85,508 | 71,231 |
705,574 | 841,163 |
Increase in trade and other debtors | (152,327 | ) | (1,067,410 | ) |
Decrease in trade and other creditors | (265,058 | ) | (544,796 | ) |
Cash generated from operations | 288,189 | (771,043 | ) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 May 2023 |
31/5/23 | 1/6/22 |
£ | £ |
Cash and cash equivalents | 48,579 | 137,935 |
Year ended 31 May 2022 |
31/5/22 | 1/6/21 |
£ | £ |
Cash and cash equivalents | 137,935 | 1,069,830 |
ASSOCIATED CONTINUITY TEAMS HOLDINGS |
LIMITED (REGISTERED NUMBER: 09501942) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MAY 2023 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1/6/22 | Cash flow | At 31/5/23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 137,935 | (89,356 | ) | 48,579 |
137,935 | (89,356 | ) | 48,579 |
Debt |
Debts falling due within 1 year | (300,000 | ) | - | (300,000 | ) |
Debts falling due after 1 year | (1,125,000 | ) | 300,000 | (825,000 | ) |
(1,425,000 | ) | 300,000 | (1,125,000 | ) |
Total | (1,287,065 | ) | 210,644 | (1,076,421 | ) |
ASSOCIATED CONTINUITY TEAMS HOLDINGS |
LIMITED (REGISTERED NUMBER: 09501942) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MAY 2023 |
1. | STATUTORY INFORMATION |
Associated Continuity Teams Holdings Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Going concern |
As the country recovered from the Covid-19 pandemic and with increased visibility of returning revenues and a substantial reduction in overhead costs in the trading subsidiary, the group secured new bank funding via the Governments CBILS facilities in May 2021. In addition to the CBILS facilities the Group has agreed with its bankers an invoice discounting facility sufficient to fund working capital increase as future trading activity increases in the trading subsidiary. |
During the year ended the 31 May 2023 the level of trading profitability and cash generation in the trading subsidiary exceeded that assumed in the post recovery forecast and the Group has passed all banking covenant tests. The current levels of trading and profitability is sufficient to ensure future banking covenant tests will be passed even with no further recovery. |
With the operating profit in the main trading company at the level included in the forecasts the directors have a reasonable expectation that there are adequate resources to continue in operational existence for the foreseeable future. |
Whilst there is some uncertainty relating to future trading due to the current UK economic position. The directors have completed a conservative set of forecasts based on no improvement to current trading levels that show that the Company will be able to meet liabilities as they fall due. |
The directors therefore continue to adopt the going concern basis of accounting in preparing these financial statements. |
Basis of consolidation |
The financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full. |
The consolidated financial statement incorporate the results of business combinations using the purchase method. In the balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. the results of the acquired operations are included in the consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases. |
ASSOCIATED CONTINUITY TEAMS HOLDINGS |
LIMITED (REGISTERED NUMBER: 09501942) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
2. | ACCOUNTING POLICIES - continued |
Revenue |
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. Revenue comprises revenue recognised by the Company in respect of the provision of support services during the year. |
The Company provides services on both fixed and variable contracts with revenue recognised as the services are delivered. Variable contracts are set on agreed charge rates per hour and the hours agreed weekly with customers. Fixed Contracts are agreed in advance with customers and a fixed price charged for the services delivered against an agreed service specification. Actual hours delivered are consistently monitored and variances regularly investigated. The majority of customers are invoiced on a weekly basis. |
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when the following conditions are satisfied: |
- | the amount of revenue can be measured reliably |
- | it is probable that the Company will received the consideration due under the contract; and |
- | the stage of completion of the contract at the end of the reporting period can be measured reliably |
Goodwill |
Goodwill represents the excess of the cost of a business combination over the fair value of the Group's share of the net identifiable assets of the acquired subsidiary at the date of acquisition. Goodwill on acquisition of subsidiaries is included in "intangible assets". Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. Goodwill is carried at cost less accumulated amortisation and accumulated impairment losses. Goodwill amortisation is calculated by applying the straight-line method to its estimated useful life. Goodwill is being amortised to "administrative expenses" over 10 years. |
Estimates of the useful economic life of goodwill are based on a variety of factors such as the expected use of the acquired business, the expected useful life of the cash generating units to which the goodwill is attributed, any legal, regulatory or contractual provisions that can limit useful life and assumptions that market participants would consider in respect of similar businesses. |
ASSOCIATED CONTINUITY TEAMS HOLDINGS |
LIMITED (REGISTERED NUMBER: 09501942) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
2. | ACCOUNTING POLICIES - continued |
Intangible assets |
Intangible fixed assets under the cost model are stated at historical cost less accumulated and any amortisation accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. |
Amortisation is charged so as to allocated the cost of the assets less their residual value over their estimated useful lives, using the straight-line method. |
Amortisation is provided on the following basis: |
Customer relationships | - 10% straight line |
Brand | - 10% straight line |
The assets' residual values, useful lives and amortisation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. |
Tangible fixed assets |
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. |
Depreciation is charged so as to allocated the cost of the assets less their residual value over their estimated useful lives, using the straight-line method. |
Depreciation is provided on the following basis: |
Plant and machinery | - 20% straight line |
Fixtures and fittings | - 20% straight line |
Computer equipment | - 33% straight line |
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 the income statement. |
Impairment of fixed assets and goodwill |
Fixed and intangible assets, including goodwill, that are subject to depreciation or amortisation are assessed at each reporting date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or gash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each reporting date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased, except for goodwill where impairment losses previously recognised are not reversed. |
ASSOCIATED CONTINUITY TEAMS HOLDINGS |
LIMITED (REGISTERED NUMBER: 09501942) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The Group has elected to apply the provisions of Section 11 'Basic Financial Instruments' of FRS 102 to all of its financial instruments. |
Financial instruments are recognised when the Company becomes party to the contractual provisions of the instrument. |
Financial assets and liabilities are offset, with 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 trade and other 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 financial asset is measured at the present value of the future receipts |
discounted at a market rate of interest. |
Basic financial liabilities |
Basic financial liabilities, including trade and other creditors and amounts owed to group undertakings are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value fo the future payments discounted at a market rate of interest. |
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
Debtors |
Short term debtors are measured at transaction price, less any impairment. Loans receivable are |
measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment. |
Cash and cash equivalents |
Cash and cash equivalents are basic financial instruments and include cash in hand, deposits held at call with banks and other short term liquid investments with original maturities of three months or |
less. |
Creditors |
Short term creditors are measured at the transaction price. Other financial liabilities, include bank |
loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortized cost using the effective interest method. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
ASSOCIATED CONTINUITY TEAMS HOLDINGS |
LIMITED (REGISTERED NUMBER: 09501942) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Dividends |
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting. |
Holiday pay accrual |
A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the balance sheet date. |
Provisions for liabilities |
Provisions are made when an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and reliable estimate can be made of the amount of the obligation. |
Provisions are charged as an expense to the Income Statement in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. |
When payments are eventually made, they are charged to the provision carried in the balance sheet. |
ASSOCIATED CONTINUITY TEAMS HOLDINGS |
LIMITED (REGISTERED NUMBER: 09501942) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
The preparation of financial statements in conformity with generally accepted accepted accounting practice requires management to make estimates and judgements that affect the reported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reported period. |
Judgements |
Financial instruments classification |
The classification of financial instruments as "basic" or "other" requires judgement as to whether all the applicable conditions for classification as basic are met. This includes consideration of the form of the instrument and its return. |
Key sources of estimation uncertainty |
Holiday pay accrual |
The Group operates an on-line holiday booking system allowing each employee to book holiday which is then approved by operational management before processed. Each employee has a unique holiday reference year. at the balance sheet date the Group has visibility of accrued holiday entitlements for each employee. Based upon monitored holiday statistics a provision is calculated and included in the balance sheet against the estimated cost of earner unused holiday at the year end. |
Bad debt provisions |
The trade debtor balance of £1,786,515 (2022: £1,700,334) recorded in the Group's balance sheet comprises a relatively large number of small balances. A full line by line review of trade debtors is carried out at the end of each month. Whilst every attempt is made to ensure that the bad debt provisions are as accurate as possible, there remains a risk that the provision do not match the level of debts which ultimately prove to be uncollectible. |
4. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 10,339,442 | 8,356,347 |
Social security costs | 864,993 | 719,332 |
Other pension costs | 164,777 | 128,417 |
11,369,212 | 9,204,096 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Management | 18 | 14 |
Non-management | 548 | 419 |
2023 | 2022 |
£ | £ |
Directors' remuneration | 350,656 | 356,556 |
Directors' pension contributions to money purchase schemes | - | 1,321 |
ASSOCIATED CONTINUITY TEAMS HOLDINGS |
LIMITED (REGISTERED NUMBER: 09501942) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
4. | EMPLOYEES AND DIRECTORS - continued |
Information regarding the highest paid director is as follows: |
2023 | 2022 |
£ | £ |
Emoluments etc | 167,672 | 168,554 |
Pension contributions to money purchase schemes | - | 1,321 |
5. | OPERATING PROFIT |
The operating profit is stated after charging: |
2023 | 2022 |
£ | £ |
Depreciation - owned assets | 31,977 | 42,068 |
Customer relationships amortisation | 160,829 | 160,829 |
6. | AUDITORS' REMUNERATION |
2023 | 2022 |
£ | £ |
Fees payable to the company's auditors for the audit of the company's financial statements |
40,000 |
63,700 |
Auditors' remuneration for non audit work | 12,000 | 29,300 |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank interest | - | 184 |
Other interest | 18,721 | 17,362 |
CBILs loan interest | 86,680 | 61,800 |
Loan | - | 240,140 |
105,401 | 319,486 |
ASSOCIATED CONTINUITY TEAMS HOLDINGS |
LIMITED (REGISTERED NUMBER: 09501942) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | 122,341 | 111,699 |
Adjustment in the prior year | (1,826 | ) | (261 | ) |
Total current tax | 120,515 | 111,438 |
Deferred tax | (35,007 | ) | (40,207 | ) |
Tax on profit | 85,508 | 71,231 |
UK corporation tax has been charged at 20 % (2022 - 19 %). |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax | 515,110 | 261,033 |
Profit multiplied by the standard rate of corporation tax in the UK of 20.003 % (2022 - 19 %) |
103,037 |
49,596 |
Effects of: |
Expenses not deductible for tax purposes | (25,315 | ) | 61,551 |
Income not taxable for tax purposes | - | (11,987 | ) |
Depreciation in excess of capital allowances | 9,641 | 147 |
Adjustments to tax charge in respect of previous periods | (1,826 | ) | (261 | ) |
Adjustments in respect of previous periods - deferred tax | - | 343 |
Remeasurement of deferred tax for change in rates | - | (3,912 | ) |
Deferred tax not recognised | - | (24,246 | ) |
Marginal relief | (29 | ) | - |
Total tax charge | 85,508 | 71,231 |
As of 1 April 2023, the UK Government has increased the main rate of corporation tax from 19% to 25%. |
9. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
ASSOCIATED CONTINUITY TEAMS HOLDINGS |
LIMITED (REGISTERED NUMBER: 09501942) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
10. | INTANGIBLE FIXED ASSETS |
Group |
Customer |
Goodwill | Brand | relationships | Totals |
£ | £ | £ | £ |
COST |
At 1 June 2022 |
and 31 May 2023 | 3,826,160 | 2,689,121 | 4,539,549 | 11,054,830 |
AMORTISATION |
At 1 June 2022 | 3,826,160 | 2,689,121 | 4,057,063 | 10,572,344 |
Amortisation for year | - | - | 160,829 | 160,829 |
At 31 May 2023 | 3,826,160 | 2,689,121 | 4,217,892 | 10,733,173 |
NET BOOK VALUE |
At 31 May 2023 | - | - | 321,657 | 321,657 |
At 31 May 2022 | - | - | 482,486 | 482,486 |
11. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Plant and | and | Computer |
machinery | fittings | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 June 2022 | 77,564 | 2,194 | 73,872 | 153,630 |
Additions | 31,270 | - | 58,460 | 89,730 |
At 31 May 2023 | 108,834 | 2,194 | 132,332 | 243,360 |
DEPRECIATION |
At 1 June 2022 | 51,916 | 552 | 49,152 | 101,620 |
Charge for year | 13,189 | 438 | 18,350 | 31,977 |
At 31 May 2023 | 65,105 | 990 | 67,502 | 133,597 |
NET BOOK VALUE |
At 31 May 2023 | 43,729 | 1,204 | 64,830 | 109,763 |
At 31 May 2022 | 25,648 | 1,642 | 24,720 | 52,010 |
ASSOCIATED CONTINUITY TEAMS HOLDINGS |
LIMITED (REGISTERED NUMBER: 09501942) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
12. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 June 2022 |
and 31 May 2023 |
PROVISIONS |
At 1 June 2022 |
and 31 May 2023 | 1 |
NET BOOK VALUE |
At 31 May 2023 |
At 31 May 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: United Kingdom |
Nature of business: |
% |
Class of shares: | holding |
Registered office: United Kingdom |
Nature of business: |
% |
Class of shares: | holding |
Registered office: United Kingdom |
Nature of business: |
% |
Class of shares: | holding |
ASSOCIATED CONTINUITY TEAMS HOLDINGS |
LIMITED (REGISTERED NUMBER: 09501942) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group |
2023 | 2022 |
£ | £ |
Trade debtors | 1,786,515 | 1,700,334 |
Other debtors | 81,480 | 8,806 |
Tax | - | 115,760 |
Prepayments and accrued income | 33,553 | 40,081 |
1,901,548 | 1,864,981 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 16) | 300,000 | 300,000 |
Trade creditors | 110,747 | 79,591 |
Amounts owed to group undertakings | - | - |
Tax | 122,341 | - |
Social security and other taxes | 847,421 | 1,082,932 |
Amount owed to related parties | 95,103 | 202,847 | 3,537 | 111,451 |
Accruals and deferred income | 771,832 | 832,534 |
2,247,444 | 2,497,904 |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2023 | 2022 |
£ | £ |
Bank loans (see note 16) | 825,000 | 1,125,000 |
16. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or | on demand: |
Bank loans | 300,000 | 300,000 |
Amounts falling due between one and | two years: |
Bank loans - 1-2 years | 825,000 | 1,125,000 |
ASSOCIATED CONTINUITY TEAMS HOLDINGS |
LIMITED (REGISTERED NUMBER: 09501942) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
16. | LOANS - continued |
Following the COVID-19 pandemic beginning in March 2020, the Group experienced a significant reduction in trading and as a result looked to restructure its bank loan funding. During the year,ended 31 May 2021, the Group repaid all its existing bank loans and obtaining new funding via the Governments CBILs Scheme and an invoice discounting facility secured against the Group's trade debtors. |
The CBILs loan of £1,500,000 was drawn on 27 May 2021. The loan is repayable by 20 consecutive instalments of £75,000 payable each quarter. Interest is charged at a margin of 3.8% plus base rate. |
Further loan restructuring took place on 16 September 2021, with the holders of the Loan notes agreeing to waive their loan notes and accrued interest. |
The Loan Notes waived compromised Fixed Rate Investor Loan Notes of £4,936,300 plus accrued unpaid interest of £1,973,027 and Fixed Rate Management Loan Notes of £2,127,259 plus accrued unpaid interest of £1,079,061. |
The Invoice Discounting Facility can be drawn to the maximum of 80% of approved trade debtors or £2,000,000. |
Bank loans are secured against the current and future assets of the Group. |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Non-cancellable |
operating leases |
2023 | 2022 |
£ | £ |
Within one year | 45,588 | 25,995 |
Between one and five years | 26,690 | 7,074 |
72,278 | 33,069 |
18. | PROVISIONS FOR LIABILITIES |
Group |
2023 | 2022 |
£ | £ |
Deferred tax | 85,615 | 120,622 |
Group |
Deferred tax |
£ |
Balance at 1 June 2022 | 120,622 |
Credit to Statement of Comprehensive Income during year | (35,007 | ) |
Balance at 31 May 2023 | 85,615 |
ASSOCIATED CONTINUITY TEAMS HOLDINGS |
LIMITED (REGISTERED NUMBER: 09501942) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £0.01 | 63,700 | 63,700 |
A Ordinary | £0.01 | 27,306 | 27,306 |
B Ordinary | £0.01 | 100 | 100 |
91,106 | 91,106 |
The holders of the Ordinary shares and A Ordinary shares shall not be entitled to dividends until such time as the Investor Loan Notes and the Management Loan notes are redeemed in full. |
The holders of the B Ordinary shares shall never be entitled to any dividends. |
The Ordinary shares and the A Ordinary shares confer one vote per share. |
The B Ordinary shares have no voting rights. |
20. | RESERVES |
Retained earnings |
The reserve relates to the cumulative retained earnings less amounts distributed to shareholders. |
Capital contribution reserve |
Additional contributions from shareholders arising from transaction such as share issues or waivers of amounts due to shareholders. |
21. | PENSION COMMITMENTS |
The Group operate a defined contribution 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 £164,777 (2022 - £128,417) and £4,264 of contributions were payable at the balance sheet date (2022 - £5,532) |
ASSOCIATED CONTINUITY TEAMS HOLDINGS |
LIMITED (REGISTERED NUMBER: 09501942) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
22. | RELATED PARTY DISCLOSURES |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
During the year, the group made purchases of £69,535 (2022: £216,264) from Connection Capital LLP, the immediate and ultimate controlling party of the Group. At the year end, the Group owed Connection Capital LLP £95,101 (2022: £199,164) in respect of unpaid invoices. |
During the year, the Group made purchases of £46,161 (2022: £52,415) from Ringrose Associates limited a company under common control. |
At the year end, the Group owed £3,537 (2022: £3,537) to Connection Capital LLP for other amounts received. |
23. | ULTIMATE CONTROLLING PARTY |
In the opinion of the directors, the immediate and ultimate controlling party of the Group is Connection Capital LLP, a limited liability partnership incorporated in England and Wales whose registered address is One Eleven, Edmund Street, Birmingham, B3 2HJ. |