Company Registration No. 10779280 (England and Wales)
Abzorb Group Ltd
Annual report and consolidated
financial statements
For the year ended 31 October 2023
Abzorb Group Ltd
Company Information
Director
S Beeby
Company number
10779280
Registered office
Armytage Road
Brighouse
West Yorkshire
HD6 1QF
Auditor
B M Howarth Ltd
West House
King Cross Road
Halifax
West Yorkshire
HX1 1EB
Abzorb Group Ltd
Contents
Page
Strategic report
1 - 2
Director's report
3 - 4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group statement of financial position
9
Company statement of financial position
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 25
Abzorb Group Ltd
Strategic report
for the year ended 31 October 2023
- 1 -

The director presents the strategic report for the year ended 31 October 2023.

Fair review of the business

I aim to present a balanced and comprehensive review of the development and performance of the business during the year and its position at the year end. My review is consistent with the size and nature of our business and is written in the context of the opportunities and risks the group face.

Results

The profit before tax for the year is £1,151,827 (2022: £776,699). Net assets of the group at the balance sheet date is £7,084,987 (2022: £7,265,782).

Key performance indicators
31 Oct
31 Oct
2023
2022
Turnover
20,304,137
19,646,614
Gross profit
5,997,364
5,376,256
Gross profit margin
29.54%
27.36%
EBITDA
2,485,609
2,200,453
Cash at bank
4,122,027
2,708,724

The Group has again exceeded its performance against its budgeted activities. This has been achieved by way of organic growth and by improving operational efficiencies.

Principal risks and uncertainties

Supplier Contracts

The Group has strategic relationships with some of the UK’s largest suppliers, including those of the UK’s major network providers for mobile and fixed communications. The Group’s core services rely on these direct relationships. The Group takes great pride in maintaining strong relationships with suppliers on a multi-level basis and coupled with regularly reviewing our contracts feels that this risk is constantly monitored.

 

Technological Changes

Being in a highly technological industry, in order to mitigate the risk that the Group may fall behind with developments that may occur, the Group puts resource into continually researching market trends, nurturing relationships between existing customers and suppliers and by seeking out new and inventive partners to help develop and offer future dynamic products and services.

 

Key Personnel

The Group prides itself on being experts in its field, and as such, relies heavily on its personnel at all levels, be it sales, administration or technology. Whilst this reliance could pose a risk, the Group alleviates this by offering strong remuneration packages, training and development and by having a positive workplace culture in order to retain and recruit staff of the highest calibre.

 

Regulatory Risk

The Group acknowledges that the pricing of its products and services can be affected by regulatory bodies in the UK, EU and the rest of the world. The result of this could have an impact to the Group’s profitability. The Group seeks to mitigate this risk by assessing the likelihood of changes and regularly reviewing the impact that these changes may have.

 

Credit risk

The Group seeks to manage its credit risk by dealing with well-established customers, performing regular credit checks and having a robust credit checking and onboarding process for any new and potential customers.

Going Concern

I am confident that the Group has adequate resources to continue in operational existence for the foreseeable future and fully expect the Group to meet all its liabilities as and when they fall due. I continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis are disclosed in the accounting policies and notes of the financial statements.

Abzorb Group Ltd
Strategic report (continued)
for the year ended 31 October 2023
- 2 -
Future developments

The Group is forecasting year on year growth on its business-as-usual activities for year ending 31 October 2024. The underlying growth will be through organic sales and diversifying to enlarge our product portfolio, along with continued internal technology developments. I therefore look forward to another successful and profitable year.

On behalf of the board

S Beeby
Director
7 March 2024
Abzorb Group Ltd
Director's report
for the year ended 31 October 2023
- 3 -

The director presents his annual report and financial statements for the year ended 31 October 2023.

Principal activities

The principal activity of the company continued to be that of a holding company, the principal activity of the group continued to be that of telecommunications services and supply and maintenance of telecommunication systems.

Director

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

S Beeby
Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £819,126. The director does not recommend payment of a further dividend.

Auditor

The auditor, B M Howarth Ltd, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of director's responsibilities

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

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

 

 

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

Strategic report

The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.

Abzorb Group Ltd
Director's report (continued)
for the year ended 31 October 2023
- 4 -
Statement of disclosure to auditor

So far as the director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the director has taken all the necessary steps that he ought to have taken as a director in order to make himself aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
S Beeby
Director
7 March 2024
Abzorb Group Ltd
Independent Auditor's Report
to the members of Abzorb Group Ltd
- 5 -
Opinion

We have audited the financial statements of Abzorb Group Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2023 which comprise the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

 

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

 

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

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Abzorb Group Ltd
Independent Auditor's Report (continued)
to the members of Abzorb Group Ltd
- 6 -
Matters on which we are required to report by exception

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

 

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

Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is 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 director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the director is responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the parent company or to cease operations, or has no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Based on our understanding of the group and the sectors in which it operates, our audit work considers the risk of material misstatement on the financial statements as a result of non-compliance with laws and regulations, this includes fraud. These laws and regulations include, but are not limited to, those that relate to the form and content of the financial statements, such as the Company accounting policies, the financial reporting framework and the UK Companies Act 2006.

 

We evaluated management incentives and opportunities for fraudulent manipulation of the financial statements and determined that the principal risks related to management bias in accounting estimates and understatement or overstatement of revenue. Our audit procedures included, but were not limited to:

 

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion.

 

There are inherent limitations in audit procedures, the further removed non compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

Abzorb Group Ltd
Independent Auditor's Report (continued)
to the members of Abzorb Group Ltd
- 7 -

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

Use of our report

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

James Bell (Senior Statutory Auditor)
For and on behalf of B M Howarth Ltd
Chartered Accountants
Statutory Auditor
West House
King Cross Road
Halifax
West Yorkshire
HX1 1EB
7 March 2024
Abzorb Group Ltd
Group Statement of comprehensive income
for the year ended 31 October 2023
- 8 -
2023
2022
Notes
£
£
Turnover
2
20,304,137
19,646,614
Cost of sales
(14,306,773)
(14,270,358)
Gross profit
5,997,364
5,376,256
Administrative expenses
(4,803,200)
(4,467,505)
Operating profit
3
1,194,164
908,751
Interest receivable
6
73,374
12,133
Interest payable
8
(115,711)
(144,185)
Profit before taxation
1,151,827
776,699
Tax on profit
10
(513,496)
(388,981)
Profit for the financial year
23
638,331
387,718
Total comprehensive income for the year is all attributable to the owners of the parent company.
Abzorb Group Ltd
Group Statement Of Financial Position
as at 31 October 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
11
5,082,566
6,320,469
Tangible assets
12
1,439,018
1,449,521
6,521,584
7,769,990
Current assets
Stocks
15
38,106
80,904
Debtors
16
4,225,175
2,945,563
Cash at bank and in hand
4,122,027
2,708,724
8,385,308
5,735,191
Creditors: amounts falling due within one year
17
(6,411,882)
(4,075,977)
Net current assets
1,973,426
1,659,214
Total assets less current liabilities
8,495,010
9,429,204
Creditors: amounts falling due after more than one year
18
(1,375,500)
(2,137,964)
Provisions for liabilities
Deferred tax liability
19
34,523
25,458
(34,523)
(25,458)
Net assets
7,084,987
7,265,782
Capital and reserves
Called up share capital
20
6,536,842
6,536,842
Capital redemption reserve
22
2,171,152
1,565,752
Profit and loss reserves
23
(1,623,007)
(836,812)
Total equity
7,084,987
7,265,782

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved and signed by the director and authorised for issue on 7 March 2024
07 March 2024
S Beeby
Director
Company registration number 10779280 (England and Wales)
Abzorb Group Ltd
Company Statement Of Financial Position
as at 31 October 2023
31 October 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
1,200,000
1,200,000
Investments
13
16,129,371
16,129,371
17,329,371
17,329,371
Current assets
Debtors
16
1,564,460
1,001,207
Cash at bank and in hand
654,684
520,810
2,219,144
1,522,017
Creditors: amounts falling due within one year
17
(2,097,562)
(1,796,458)
Net current assets/(liabilities)
121,582
(274,441)
Total assets less current liabilities
17,450,953
17,054,930
Creditors: amounts falling due after more than one year
18
(1,375,500)
(2,011,606)
Net assets
16,075,453
15,043,324
Capital and reserves
Called up share capital
20
6,536,842
6,536,842
Capital redemption reserve
22
2,171,152
1,565,752
Profit and loss reserves
23
7,367,459
6,940,730
Total equity
16,075,453
15,043,324

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £1,851,256 (2022 - £1,578,738 profit).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved and signed by the director and authorised for issue on 7 March 2024
07 March 2024
S Beeby
Director
Company registration number 10779280 (England and Wales)
Abzorb Group Ltd
Group Statement of Changes in Equity
for the year ended 31 October 2023
- 11 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 November 2021
6,536,842
989,937
(303,715)
7,223,064
Year ended 31 October 2022:
Profit and total comprehensive income
-
-
387,718
387,718
Dividends
9
-
-
(345,000)
(345,000)
Redemption of shares
20
-
575,815
(575,815)
-
0
Balance at 31 October 2022
6,536,842
1,565,752
(836,812)
7,265,782
Year ended 31 October 2023:
Profit and total comprehensive income
-
-
638,331
638,331
Dividends
9
-
-
(819,126)
(819,126)
Redemption of shares
20
-
605,400
(605,400)
-
0
Balance at 31 October 2023
6,536,842
2,171,152
(1,623,007)
7,084,987
Abzorb Group Ltd
Company Statement of Changes in Equity
for the year ended 31 October 2023
- 12 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 November 2021
6,536,842
989,937
6,282,807
13,809,586
Year ended 31 October 2022:
Profit and total comprehensive income for the year
-
-
1,578,738
1,578,738
Dividends
9
-
-
(345,000)
(345,000)
Redemption of shares
20
-
575,815
(575,815)
-
0
Balance at 31 October 2022
6,536,842
1,565,752
6,940,730
15,043,324
Year ended 31 October 2023:
Profit and total comprehensive income
-
-
1,851,255
1,851,255
Dividends
9
-
-
(819,126)
(819,126)
Redemption of shares
20
-
605,400
(605,400)
-
0
Balance at 31 October 2023
6,536,842
2,171,152
7,367,459
16,075,453
Abzorb Group Ltd
Group Statement of cash flows
for the year ended 31 October 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
3,401,501
1,669,134
Interest paid
(131,826)
(144,185)
Income taxes paid
(464,215)
(404,698)
Net cash inflow from operating activities
2,805,460
1,120,251
Investing activities
Purchase of tangible fixed assets
(43,039)
(96,570)
Increase in directors loans
2,034
(321,159)
Interest received
73,374
12,133
Net cash generated from/(used in) investing activities
32,369
(405,596)
Financing activities
Repayment of preference shares
28
(605,400)
(575,815)
Dividends paid to equity shareholders
(819,126)
(345,000)
Net cash used in financing activities
(1,424,526)
(920,815)
Net increase/(decrease) in cash and cash equivalents
1,413,303
(206,160)
Cash and cash equivalents at beginning of year
2,708,724
2,914,884
Cash and cash equivalents at end of year
4,122,027
2,708,724
Abzorb Group Ltd
Notes to the financial statements
for the year ended 31 October 2023
- 14 -
1
Accounting policies
Accounting convention

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

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

The financial statements have been prepared under the historical cost convention.The principal accounting policies adopted are set out below.

Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Abzorb Group Ltd together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 October 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Going concern

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

Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes.

Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

Abzorb Group Ltd
Notes to the financial statements (continued)
for the year ended 31 October 2023
1
Accounting policies
(continued)
- 15 -
Tangible fixed assets

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

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

Fixtures, fittings & IT Equipment
25% reducing balance
Motor vehicles
25% reducing balance

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

Fixed asset investments

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

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

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

Cash at bank and in hand

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

Retirement benefits

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

Abzorb Group Ltd
Notes to the financial statements (continued)
for the year ended 31 October 2023
1
Accounting policies
(continued)
- 16 -
Leases

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

2
Turnover

The group's turnover all derives from it's principal activity within the UK.

2023
2022
£
£
Turnover analysed by class of business
Rendering of services
17,782,610
16,412,857
Kit sales
2,334,300
3,072,029
Management charges received
187,227
161,728
20,304,137
19,646,614
3
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging:
Depreciation of owned tangible fixed assets
53,542
53,799
Amortisation of intangible assets
1,237,903
1,237,903
4
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Group and company
10,000
10,000
Subsidiaries
14,000
12,500
24,000
22,500
Abzorb Group Ltd
Notes to the financial statements (continued)
for the year ended 31 October 2023
- 17 -
5
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Sales and administration
66
62
-
-
Directors
1
1
1
1
Total
67
63
1
1

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
2,546,620
2,291,519
-
0
-
0
Pension costs
45,642
40,040
-
0
-
0
2,592,262
2,331,559
-
0
-
0
6
Interest receivable
2023
2022
£
£
Interest income
Interest on bank deposits
58,372
1,462
Other interest income
15,002
10,671
Total income
73,374
12,133
7
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss
45,642
40,040

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

8
Interest payable
2023
2022
£
£
Interest paid on deferred consideration
115,711
144,185
Abzorb Group Ltd
Notes to the financial statements (continued)
for the year ended 31 October 2023
- 18 -
9
Dividends
2023
2022
£
£
Interim paid
819,126
345,000
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
562,162
388,670
Adjustments in respect of prior periods
(57,731)
(15)
Total current tax
504,431
388,655
Deferred tax
Origination and reversal of timing differences
9,065
326
Total tax charge
513,496
388,981

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

2023
2022
£
£
Profit before taxation
1,151,827
776,699
Expected tax charge based on the standard rate of corporation tax in the UK of 22.50% (2022: 19.00%)
259,161
147,573
Tax effect of expenses that are not deductible in determining taxable profit
24,358
8,398
Adjustments in respect of prior years
(57,731)
(15)
Effect of change in corporation tax rate
9,180
-
Permanent capital allowances in excess of depreciation
-
0
(2,177)
Goodwill amortisation
278,528
235,202
Taxation charge
513,496
388,981
Abzorb Group Ltd
Notes to the financial statements (continued)
for the year ended 31 October 2023
- 19 -
11
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 November 2022 and 31 October 2023
12,379,029
Amortisation and impairment
At 1 November 2022
6,058,560
Amortisation charged for the year
1,237,903
At 31 October 2023
7,296,463
Carrying amount
At 31 October 2023
5,082,566
At 31 October 2022
6,320,469
The company had no intangible fixed assets at 31 October 2023 or 31 October 2022.
12
Tangible fixed assets
Group
Freehold land and buildings
Fixtures, fittings & IT equipment
Motor vehicles
Total
£
£
£
£
Cost or valuation
At 1 November 2022
1,200,000
396,977
58,385
1,655,362
Additions
-
0
43,039
-
0
43,039
At 31 October 2023
1,200,000
440,016
58,385
1,698,401
Depreciation and impairment
At 1 November 2022
-
0
193,677
12,164
205,841
Depreciation charged in the year
-
0
41,987
11,555
53,542
At 31 October 2023
-
0
235,664
23,719
259,383
Carrying amount
At 31 October 2023
1,200,000
204,352
34,666
1,439,018
At 31 October 2022
1,200,000
203,300
46,221
1,449,521
Abzorb Group Ltd
Notes to the financial statements (continued)
for the year ended 31 October 2023
12
Tangible fixed assets
(continued)
- 20 -
Company
Freehold land and buildings
£
Cost or valuation
At 1 November 2022 and 31 October 2023
1,200,000
Depreciation and impairment
At 1 November 2022 and 31 October 2023
-
0
Carrying amount
At 31 October 2023
1,200,000
At 31 October 2022
1,200,000

The fair value of the freehold land and buildings on it becoming a group asset was determined by the director at a market value of £1,200,000. In the opinion of the director the value of the property remains valid as at 31 October 2023.

13
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
16,129,371
16,129,371
14
Subsidiaries

The company holds the ordinary share capital of the following companies incorporated in England and

Wales:
Name of undertaking
Address
Class of
shares held
% Held
Abzorb Ltd
1
Ordinary
100
Abzorb Services Ltd
1
Ordinary
100
Abzorb Solutions Ltd
1
Ordinary
100
Abzorb Systems Ltd
1
Ordinary
100
Abzorb Data Ltd
1
Ordinary
100

Registered office addresses (all UK unless otherwise indicated):

1
Armytage Road, Brighouse, West Yorkshire, HD6 1QF
Abzorb Group Ltd
Notes to the financial statements (continued)
for the year ended 31 October 2023
- 21 -
15
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Work in progress
-
6,078
-
-
Finished goods and goods for resale
38,106
74,826
-
0
-
0
38,106
80,904
-
-
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,587,492
1,113,956
497,511
167,527
Amounts owed by group undertakings
-
-
-
19,174
Other debtors
2,139,661
1,050,347
1,066,949
814,506
Prepayments and accrued income
498,022
733,157
-
0
-
0
4,225,175
2,897,460
1,564,460
1,001,207
Amounts falling due after more than one year:
Other debtors
-
0
48,103
-
0
-
0
Total debtors
4,225,175
2,945,563
1,564,460
1,001,207
17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Preference shares
20
636,506
605,800
636,506
605,800
Trade creditors
4,488,703
2,268,020
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
1,384,115
1,136,768
Corporation tax payable
264,942
224,726
35,666
18,469
Other taxation and social security
387,369
453,272
10,101
12,025
Other creditors
18,514
34,629
-
0
-
0
Accruals and deferred income
615,848
489,530
31,174
23,396
6,411,882
4,075,977
2,097,562
1,796,458
Abzorb Group Ltd
Notes to the financial statements (continued)
for the year ended 31 October 2023
- 22 -
18
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Preference shares
20
1,375,500
2,011,606
1,375,500
2,011,606
Other taxation and social security
-
107,844
-
0
-
0
Other creditors
-
0
18,514
-
0
-
0
1,375,500
2,137,964
1,375,500
2,011,606
19
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
34,523
25,458
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 November 2022
25,458
-
Charge to profit or loss
9,065
-
Liability at 31 October 2023
34,523
-

 

Abzorb Group Ltd
Notes to the financial statements (continued)
for the year ended 31 October 2023
- 23 -
20
Share capital
Group and company
2023
2022
Ordinary share capital
£
£
Issued and fully paid
6,210,000 Ordinary shares of £1 each
6,210,000
6,210,000
326,842 A Ordinary shares of £1 each
326,842
326,842
6,536,842
6,536,842
Preference share capital
Issued and fully paid
2,012,006 (2022: 2,617,406) Preference shares of £1 each
2,012,006
2,617,406
Preference shares classified as liabilities
2,012,006
2,617,406
21
Operating lease commitments

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
23,044
19,298
-
-
Between two and five years
20,169
11,934
-
-
43,213
31,232
-
-
22
Capital redemption reserve
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning of the year
1,565,752
989,937
1,565,752
989,937
Transfers
605,400
575,815
605,400
575,815
At the end of the year
2,171,152
1,565,752
2,171,152
1,565,752
Abzorb Group Ltd
Notes to the financial statements (continued)
for the year ended 31 October 2023
- 24 -
23
Profit and loss reserves
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning of the year
(836,812)
(303,715)
6,940,730
6,282,807
Profit for the year
638,331
387,718
1,851,255
1,578,738
Dividends
(819,126)
(345,000)
(819,126)
(345,000)
Share redemption or reduction
(605,400)
(575,815)
(605,400)
(575,815)
At the end of the year
(1,623,007)
(836,812)
7,367,459
6,940,730
24
Related party transactions

During the year the group made the following arms length transactions with Abzorb U Ltd a company which S Beeby is a director and shareholder in its holding company:

 

Sales of £633,771 (2022: £515,503) and purchase of goods and services £4,432,651 (2022: £4,386,929).

 

At 31 October 2023, the amount due from Abzorb U Ltd to the group was £1,290,342 (2022: £1,209,483).

 

At 31 October 2023, the amount due from Beeby's Buildings Ltd, a company which S Beeby is a director and shareholder, was £72,989 (2022: £70,876).

 

During the year the company loaned money to Hall and Rhodes Holdings Ltd. At 31 October 2023 Hall and Rhodes Holdings Ltd owed Abzorb Group Ltd £404,477 (2022 : £Nil).

S Beeby is a director of Hall and Rhodes Holdings Ltd.

25
Directors' transactions

Advances or credits have been granted by the group to its directors as follows:

Description
% Rate
Opening balance
Amounts advanced
Interest charged
Amounts repaid
Closing balance
£
£
£
£
£
S Beeby -
2.25
664,506
801,596
15,002
(818,632)
662,472
664,506
801,596
15,002
(818,632)
662,472
26
Controlling party

S Beeby, the director of the company, controls the company as a result of his direct holding of issued ordinary shares.

Abzorb Group Ltd
Notes to the financial statements (continued)
for the year ended 31 October 2023
- 25 -
27
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
638,331
387,718
Adjustments for:
Taxation charged
513,496
388,981
Finance costs
115,711
144,185
Investment income
(73,374)
(12,133)
Amortisation and impairment of intangible assets
1,237,903
1,237,903
Depreciation and impairment of tangible fixed assets
53,542
53,799
Movements in working capital:
Decrease in stocks
42,798
13,768
Increase in debtors
(1,281,646)
(489,509)
Increase/(decrease) in creditors
2,154,740
(55,578)
Cash generated from operations
3,401,501
1,669,134
28
Analysis of changes in net funds - group
1 November 2022
Cash flows
31 October 2023
£
£
£
Cash at bank and in hand
2,708,724
1,413,303
4,122,027
Borrowings excluding overdrafts
(2,617,406)
605,400
(2,012,006)
91,318
2,018,703
2,110,021
29
Company information

Abzorb Group Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Armytage Road, Brighouse, West Yorkshire, HD6 1QF.

 

The group consists of Abzorb Group Ltd and all of its subsidiaries.

2023-10-312022-11-01falseCCH SoftwareCCH Accounts Production 2023.300S Beebyfalse107792802022-11-012023-10-3110779280bus:Director12022-11-012023-10-3110779280bus:RegisteredOffice2022-11-012023-10-3110779280bus:Consolidated2022-11-012023-10-3110779280bus:Consolidated2021-11-012022-10-3110779280bus:Consolidated2023-10-31107792802023-10-31107792802021-11-012022-10-3110779280core:Goodwillbus:Consolidated2023-10-3110779280core:Goodwillbus:Consolidated2022-10-3110779280bus:Consolidated2022-10-31107792802022-10-3110779280core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2023-10-3110779280core:PlantMachinerybus:Consolidated2023-10-3110779280core:MotorVehiclesbus:Consolidated2023-10-3110779280core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2022-10-3110779280core:PlantMachinerybus:Consolidated2022-10-3110779280core:MotorVehiclesbus:Consolidated2022-10-3110779280core:LandBuildingscore:OwnedOrFreeholdAssets2023-10-3110779280core:LandBuildingscore:OwnedOrFreeholdAssets2022-10-3110779280core:ShareCapitalbus:Consolidated2023-10-3110779280core:ShareCapitalbus:Consolidated2022-10-3110779280core:CapitalRedemptionReservebus:Consolidated2023-10-3110779280core:CapitalRedemptionReservebus:Consolidated2022-10-3110779280core:ShareCapital2023-10-3110779280core:ShareCapital2022-10-3110779280core:CapitalRedemptionReserve2023-10-3110779280core:CapitalRedemptionReserve2022-10-3110779280core:RetainedEarningsAccumulatedLosses2023-10-3110779280core:ShareCapitalbus:Consolidated2021-10-3110779280core:CapitalRedemptionReservebus:Consolidated2021-10-3110779280core:RetainedEarningsAccumulatedLossesbus:Consolidated2021-10-3110779280core:RetainedEarningsAccumulatedLossesbus:Consolidated2022-10-3110779280core:RetainedEarningsAccumulatedLossesbus:Consolidated2023-10-3110779280core:ShareCapital2021-10-3110779280core:CapitalRedemptionReserve2021-10-3110779280core:RetainedEarningsAccumulatedLosses2021-10-3110779280core:RetainedEarningsAccumulatedLosses2022-10-3110779280bus:Consolidated2021-10-3110779280core:Goodwill2022-11-012023-10-3110779280core:FurnitureFittings2022-11-012023-10-3110779280core:MotorVehicles2022-11-012023-10-3110779280core:UKTaxbus:Consolidated2022-11-012023-10-3110779280core:UKTaxbus:Consolidated2021-11-012022-10-3110779280bus:Consolidated12022-11-012023-10-3110779280bus:Consolidated12021-11-012022-10-3110779280core:Goodwillbus:Consolidated2022-10-3110779280core:Goodwillbus:Consolidated2022-11-012023-10-3110779280core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2022-10-3110779280core:PlantMachinerybus:Consolidated2022-10-3110779280core:MotorVehiclesbus:Consolidated2022-10-3110779280bus:Consolidated2022-10-3110779280core:LandBuildingscore:OwnedOrFreeholdAssets2022-10-3110779280core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2022-11-012023-10-3110779280core:PlantMachinerybus:Consolidated2022-11-012023-10-3110779280core:MotorVehiclesbus:Consolidated2022-11-012023-10-3110779280core:CurrentFinancialInstruments2023-10-3110779280core:CurrentFinancialInstruments2022-10-3110779280core:Non-currentFinancialInstrumentsbus:Consolidated2023-10-3110779280core:Non-currentFinancialInstrumentsbus:Consolidated2022-10-3110779280core:Non-currentFinancialInstruments2023-10-3110779280core:Non-currentFinancialInstruments2022-10-3110779280core:CurrentFinancialInstrumentsbus:Consolidated2023-10-3110779280core:CurrentFinancialInstrumentsbus:Consolidated2022-10-3110779280core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2023-10-3110779280core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2022-10-3110779280core:CurrentFinancialInstrumentscore:WithinOneYear2023-10-3110779280core:CurrentFinancialInstrumentscore:WithinOneYear2022-10-3110779280core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated12023-10-3110779280core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated12022-10-3110779280core:Non-currentFinancialInstrumentscore:AfterOneYear22023-10-3110779280core:Non-currentFinancialInstrumentscore:AfterOneYear22022-10-3110779280bus:PrivateLimitedCompanyLtd2022-11-012023-10-3110779280bus:FRS1022022-11-012023-10-3110779280bus:Audited2022-11-012023-10-3110779280bus:ConsolidatedGroupCompanyAccounts2022-11-012023-10-3110779280bus:FullAccounts2022-11-012023-10-31xbrli:purexbrli:sharesiso4217:GBP