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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: S W Barham
D E Murray
G Rae
A M Ringrose





REGISTERED OFFICE: WG01 Vox Studios 1-45 Durham Street
Vauxhall
London
SE11 5JH





REGISTERED NUMBER: 09501942 (England and Wales)





AUDITORS: Haines Watts, Statutory Auditor
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:





D E Murray - Director


30 November 2023

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.

S W Barham
D E Murray
G Rae
A M Ringrose

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:





D E Murray - Director


30 November 2023

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.




Martin Thomas FCCA (Senior Statutory Auditor)
for and on behalf of Haines Watts, Statutory Auditor
Chartered Accountants
The Lightbox
87 Castle Street
Reading
Berkshire
RG1 7SN

30 November 2023

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 429,602 189,802

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 58,508 159,789
NET CURRENT LIABILITIES (58,508 ) (159,789 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

(58,508

)

(159,789

)

CAPITAL AND RESERVES
Called up share capital 19 91,106 91,106
Capital contribution reserve 20 3,206,320 3,206,320
Retained earnings 20 (3,355,934 ) (3,457,215 )
SHAREHOLDERS' FUNDS (58,508 ) (159,789 )

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 30 November 2023 and were signed on its behalf by:





D E Murray - Director


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 100,100 (3,324,331 ) - (3,224,231 )

Changes in equity
Reduction in share capital (8,994 ) - - (8,994 )
Total comprehensive income - (132,884 ) - (132,884 )
Waiver of loan notes payable
and accrued unpaid interest - - 3,206,320 3,206,320
Balance at 31 May 2022 91,106 (3,457,215 ) 3,206,320 (159,789 )

Changes in equity
Total comprehensive income - 101,281 - 101,281
Balance at 31 May 2023 91,106 (3,355,934 ) 3,206,320 (58,508 )

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 private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

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
566 433

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 1
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

Associated Continuity Teams Bidco Limited
Registered office: United Kingdom
Nature of business: Holding Company
%
Class of shares: holding
Ordinary 100.00

Associated Continuity Teams Limited
Registered office: United Kingdom
Nature of business: Provision of cleaning and support services
%
Class of shares: holding
Ordinary 100.00

ACT Clean Limited
Registered office: United Kingdom
Nature of business: Dormant
%
Class of shares: holding
Ordinary 100.00


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 - - 17,646 -
Tax 122,341 - 25,325 -
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 12,000 48,338
2,247,444 2,497,904 58,508 159,789

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: £ £
6,370,000 Ordinary £0.01 63,700 63,700
2,730,616 A Ordinary £0.01 27,306 27,306
10,000 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.