Company registration number 10358284 (England and Wales)
ATRIUM GROUP HOLDINGS LIMITED (CONSOLIDATED)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
ATRIUM GROUP HOLDINGS LIMITED (CONSOLIDATED)
COMPANY INFORMATION
Directors
Mr U Dormoy
Mrs H Dormoy
Company number
10358284
Registered office
Sixth Floor
Capital Tower
91 Waterloo Road
London
SE1 8RT
Auditor
Arnold Hill & Co LLP
Sixth Floor
Capital Tower
91 Waterloo Road
London
SE1 8RT
ATRIUM GROUP HOLDINGS LIMITED (CONSOLIDATED)
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report
6 - 9
Profit and loss account
10
Group statement of comprehensive income
11
Group balance sheet
12
Company balance sheet
13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Company statement of cash flows
17
Notes to the financial statements
19 - 37
ATRIUM GROUP HOLDINGS LIMITED (CONSOLIDATED)
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 1 -

The directors present the strategic report for the year ended 31 December 2022.

Fair review of the business

Atrium's core proposition revolves firmly around the concept of quality, encompassing the Quality of Light, Quality of Solution, and Quality of Service. Operating within a fiercely competitive sector, we distinguish ourselves by collaboratively engaging with brands of the utmost quality, a synergy that sets us apart from competitors. Unlike many in our industry who are wholly owned subsidiaries of European manufacturers, our independence stands as a significant competitive advantage, particularly in an era where swift decision-making holds increasing importance. Presently, our business boasts a wealth of industry and product knowledge, a diverse skill set, and an extensive customer network. These elements collectively contribute to our well-established and robust reputation.

 

Although trading showed signs of recovery in 2021 following the impact of COVID in 2020, the pace of trading in 2022 was notably slower compared to the previous year. This slowdown can be attributed, in part, to the lingering effects of reduced project initiation during the lockdown period from March 2020 to July 2021. The commercial office sector, which typically contributes 40% to 50% of our annual turnover, experienced a particularly sluggish recovery. The retail sector also faced challenges in returning to pre-pandemic levels.

 

Despite the subdued order intake and invoicing in 2022, we dedicated considerable efforts to fortify our pipeline for 2023. We also enhanced our pipeline management to ensure sustained growth beyond 2023. Additionally, a significant portion of our time and energy was directed toward optimising efficiency through our ERP system, which has evolved into an ongoing improvement initiative. Our current strategic focus centers on driving sustainable growth through efficiency, leveraging the capabilities of AI wherever feasible within our operations.

 

As a result of these investments in future growth, we anticipate closing 2023 with a turnover of approximately £16 million. This positions us well for entering 2024 with a robust pipeline, aligning with the forecasted 8% growth in the construction sector for 2024 and 7% for 2025. Notably, London is experiencing a surge in office building development, reaching levels unseen in the past two decades.

Key Performance Indicators

The Directors’ views on KPIs are that these remain consistent with the prior year as turnover, gross margins and profit before tax.

 

Results                 2022             2021

Turnover             £14,020k        £15,218k

Gross margin             31.68%             31.96%

Loss before tax             (£1,748k)         (£269k)

 

The decline in order volume throughout 2022 resulted in a notable decrease in turnover compared to the levels achieved in 2021. As previously highlighted, 2022 was dedicated to advancing our systems and strengthening our pipeline. The positive outcomes of these initiatives have become evident through the orders secured for 2023, even in the face of a reported negative 20% growth in the construction sector during the same period. While 2022 presented its challenges, our focused efforts have positioned us well to embrace and navigate future growth with confidence.

 

Principal risks and uncertainties

Atrium Group's strategy takes into account risks, as well as opportunities, which need to be actively managed. Effective risk management is essential to executing our strategy, achieving sustainable long-term value, protecting our reputation and ensuring good governance

 

1) Brand and Reputational Risk

The vitality of the Atrium brand and its reputation, along with those of its suppliers, forms the bedrock of our business. Potential harm to Atrium can arise from internal actions or the conduct of external partners, with the risk of enduring and substantial reductions in revenue in the event of brand damage.

 

Atrium distinguishes itself as a brand selector, not merely a collector. Presently, our criteria for choosing brand partners extend beyond the products they offer; we prioritise shared values and a demonstrated commitment to innovation. Our portfolio strikes a balance—sufficiently extensive to provide diverse solutions yet compact enough to allow dedicated attention for effective promotion. Each brand, both collectively and individually, must excel in design, innovation, and responsiveness to the evolving demands of artificial lighting. We maintain continuous monitoring of our relationships with these brands.

ATRIUM GROUP HOLDINGS LIMITED (CONSOLIDATED)
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -

Principal risks and uncertainties (continued)

 

In addition, our commitment extends to providing robust after sales care through a dedicated team, ensuring swift resolution of any issues that may arise.

 

2) Supply Chain

Our adherence to quality standards hinges on the reliability of our chosen brands. The timely delivery and adherence to specifications are crucial factors, as any deviations pose a potential risk to our revenue.

 

To proactively address this risk, we maintain close collaboration with our selected brands. Our strategic approach involves partnering with high-end brands known for delivering exceptional product quality. This deliberate selection process serves as a key measure to mitigate potential impacts on our revenue.

 

3) Economic Activity in the UK

The risk emerges from the decline in economic activity observed in the latter part of 2022, potentially reshaping the competitive dynamics as businesses vie for a reduced pool of opportunities. The prevailing pattern in our competitive landscape has undergone notable shifts over the years, particularly in recent times.

 

The dwindling number of independent organisations is a conspicuous trend, with many succumbing to acquisitions by their prominent foreign suppliers. Atrium's unique position as an independent entity, coupled with the excellence of our products and the commitment of our long-serving, knowledgeable team to delivering superior work, remains the cornerstone of our prosperity—a tradition upheld for the past 45 years.

 

4) Financial Risks

 

a.     Liquidity Risk

Every business faces the inherent risk of being unable to meet its financial obligations when they come due. Atrium addresses this risk through robust management of operating cash flow, complemented by a judicious dividend policy and vigilant credit control measures. In the event that operating cash flow falls short of covering financial obligations, the company has access to credit facilities as a contingency measure. This comprehensive approach ensures a proactive stance in safeguarding the company's financial stability and meeting obligations as they arise.

 

b.     Credit Risk

There is a risk that an Atrium customer may be unable to pay its debts on the due date. The company manages this risk through asking for deposits on account, maintaining strong customer relationships and closely monitoring outstanding debts from all sources.

 

c.     Interest Rate Risk

A substantial increase in interest rates could escalate the cost of debt, exerting a detrimental influence on both cash flow and profitability. The surge in interest rates since the close of 2021 has exerted pressure on the economy, leading to a contraction in consumer spending. Despite the resultant elevation in the cost of debt, we have successfully navigated through these challenges and achieved growth throughout 2023.

 

d.     Foreign Exchange Risk

Atrium, being reliant on imported products, is inherently susceptible to foreign currency risks, predominantly in Euros. The Board consistently reviews and establishes policies to effectively manage exchange rate risks. In appropriate circumstances, the company employs financial instruments to mitigate these risks. All engagements in derivatives, notably forward exchange contracts, are exclusively undertaken for the purpose of risk management, with no speculative transactions being pursued. This cautious approach ensures a proactive stance in safeguarding the company against adverse currency fluctuations.

ATRIUM GROUP HOLDINGS LIMITED (CONSOLIDATED)
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 3 -

Principal risks and uncertainties (continued)

 

5) Our People

Atrium’s performance and success are dependent on its capacity to attract and retain the best people. Not employing the best people at all levels could affect the company’s operations and prospects. We continue to navigate uncertainty caused by Brexit. Global trading disruption continues to impact our people’s ability to meet planned business goals. We are committed to ensuring we have a strong employee brand and culture in order to attract and retain the best people.

 

Actions taken include:

On behalf of the board

Mr U Dormoy
Director
12 March 2024
ATRIUM GROUP HOLDINGS LIMITED (CONSOLIDATED)
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 4 -

The directors present their annual report and financial statements for the year ended 31 December 2022.

Principal activities

The principal activity of the company was the parent of a trading group.

Results and dividends

The results for the year are set out on page 10.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

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

Mr U Dormoy
Mrs H Dormoy
Auditor

In accordance with section 485 of the Companies Act 2006, a resolution proposing that Arnold Hill & Co LLP be reappointed as auditor of the company will be put at a General Meeting.

Statement of disclosure to auditor

So far as each person who was a 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 directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

 

Directors' insurance

During the current and preceding periods, the company has maintained adequate cover for its directors and officers under a director's and officer's liability insurance policy.

 

Going concern

The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The directors continue to monitor the impact of COVID-19 and potential implications on future operations. The directors have undertaken a number of scenario projections to understand the potential impact on the business and remain satisfied that the company is able to meet its liabilities as they fall due over the next 12 months. Thus it has adopted the going concern basis in preparing the annual financial statements.

On behalf of the board
Mr U Dormoy
Director
12 March 2024
ATRIUM GROUP HOLDINGS LIMITED (CONSOLIDATED)
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 5 -

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

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are 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. They are 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.

ATRIUM GROUP HOLDINGS LIMITED (CONSOLIDATED)
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ATRIUM GROUP HOLDINGS LIMITED (CONSOLIDATED)
- 6 -
Opinion

We have audited the financial statements of Atrium Group Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2022 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

 

 

The COVID-19 virus and its sustained impact on the global economy and businesses around the world (as explained in note 1 to the financial statements), indicate the existence of uncertainty which may cast doubt about the company’s ability to continue as a going concern. The financial statements do not include the adjustments that would result if the company was unable to continue as a going concern.

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

ATRIUM GROUP HOLDINGS LIMITED (CONSOLIDATED)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ATRIUM GROUP HOLDINGS LIMITED (CONSOLIDATED)
- 7 -

Opinions on other matters prescribed by the Companies Act 2006

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

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 directors' 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 directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

 

In preparing the financial statements, the directors are responsible for assessing the 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 company or to cease operations, or have 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

ATRIUM GROUP HOLDINGS LIMITED (CONSOLIDATED)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ATRIUM GROUP HOLDINGS LIMITED (CONSOLIDATED)
- 8 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

 

The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.

 

Our approach was as follows:

 

 

 

 

 

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and 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. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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.

ATRIUM GROUP HOLDINGS LIMITED (CONSOLIDATED)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ATRIUM GROUP HOLDINGS LIMITED (CONSOLIDATED)
- 9 -

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.

Mr Justin Moore (Senior Statutory Auditor)
for and on behalf of Arnold Hill & Co LLP
13 March 2024
Chartered Accountants
Statutory Auditor
Sixth Floor
Capital Tower
91 Waterloo Road
London
SE1 8RT
ATRIUM GROUP HOLDINGS LIMITED (CONSOLIDATED)
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 10 -
2022
2021
Notes
£
£
Turnover
3
14,019,958
15,218,120
Cost of sales
(9,578,535)
(10,353,834)
Gross profit
4,441,423
4,864,286
Distribution costs
(2,346,702)
(1,790,807)
Administrative expenses
(3,914,972)
(3,415,705)
Other operating income
127,865
127,714
Operating loss
4
(1,692,386)
(214,512)
Interest receivable and similar income
8
-
0
14
Interest payable and similar expenses
9
(55,867)
(54,060)
Loss before taxation
(1,748,253)
(268,558)
Tax on loss
10
(62,972)
(27,670)
Loss for the financial year
(1,811,225)
(296,228)
ATRIUM GROUP HOLDINGS LIMITED (CONSOLIDATED)
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022
- 11 -
2022
2021
£
£
Loss for the year
(1,811,225)
(296,228)
Other comprehensive income
-
-
Total comprehensive income for the year
(1,811,225)
(296,228)
ATRIUM GROUP HOLDINGS LIMITED (CONSOLIDATED)
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2022
31 December 2022
- 12 -
2022
2021
Notes
£
£
£
£
Fixed assets
Goodwill
11
336,168
668,186
Tangible assets
12
2,219,018
1,664,254
Investments
13
25
25
2,555,211
2,332,465
Current assets
Stocks
16
1,998,185
1,794,867
Debtors
17
6,650,302
7,403,723
Cash at bank and in hand
324,198
931,125
8,972,685
10,129,715
Creditors: amounts falling due within one year
18
(7,154,221)
(5,936,791)
Net current assets
1,818,464
4,192,924
Total assets less current liabilities
4,373,675
6,525,389
Creditors: amounts falling due after more than one year
19
(11,629)
(311,629)
Provisions for liabilities
Deferred tax liability
21
32,361
32,361
(32,361)
(32,361)
Net assets
4,329,685
6,181,399
Capital and reserves
Called up share capital
24
20,000
20,000
Share premium account
12,780,000
12,780,000
Other reserves
(4,780,000)
(4,780,000)
Profit and loss reserves
(3,169,908)
(1,862,138)
Equity attributable to owners of the parent company
4,850,092
6,157,862
Non-controlling interests
(520,407)
23,537
4,329,685
6,181,399
The financial statements were approved by the board of directors and authorised for issue on 12 March 2024 and are signed on its behalf by:
12 March 2024
Mr U  Dormoy
Director
Company registration number 10358284 (England and Wales)
ATRIUM GROUP HOLDINGS LIMITED (CONSOLIDATED)
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2022
31 December 2022
- 13 -
2022
2021
Notes
£
£
£
£
Fixed assets
Investments
13
6,400,134
6,400,134
Current assets
Debtors
17
6,166,463
6,085,461
Cash at bank and in hand
150,177
291,357
6,316,640
6,376,818
Creditors: amounts falling due within one year
18
(21,557)
(20,041)
Net current assets
6,295,083
6,356,777
Net assets
12,695,217
12,756,911
Capital and reserves
Called up share capital
24
20,000
20,000
Share premium account
12,780,000
12,780,000
Profit and loss reserves
(104,783)
(43,089)
Total equity
12,695,217
12,756,911

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £61,694 (2021 - £10,978 loss).

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 by the board of directors and authorised for issue on 12 March 2024 and are signed on its behalf by:
12 March 2024
Mr U  Dormoy
Director
Company registration number 10358284 (England and Wales)
ATRIUM GROUP HOLDINGS LIMITED (CONSOLIDATED)
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 14 -
Share capital
Share premium account
Other reserves
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
£
Balance at 1 January 2021
20,000
12,780,000
(4,780,000)
(1,669,032)
6,350,968
112,890
6,463,858
Year ended 31 December 2021:
Loss and total comprehensive income for the year
-
-
-
(193,106)
(193,106)
(103,121)
(296,228)
Issue of share capital
24
-
0
-
0
-
-
-
13,768
13,768
Balance at 31 December 2021
20,000
12,780,000
(4,780,000)
(1,862,138)
6,157,862
23,537
6,181,399
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
-
-
(1,307,770)
(1,307,770)
(503,455)
(1,811,225)
Purchase of shares in subsidiary from non-controlling interest
-
-
-
-
-
(40,489)
(40,489)
Balance at 31 December 2022
20,000
12,780,000
(4,780,000)
(3,169,908)
4,850,092
(520,407)
4,329,685
ATRIUM GROUP HOLDINGS LIMITED (CONSOLIDATED)
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 15 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2021
20,000
12,780,000
(32,111)
12,767,889
Year ended 31 December 2021:
Loss and total comprehensive income for the year
-
-
(10,978)
(10,978)
Balance at 31 December 2021
20,000
12,780,000
(43,089)
12,756,911
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
-
(61,694)
(61,694)
Balance at 31 December 2022
20,000
12,780,000
(104,783)
12,695,217
ATRIUM GROUP HOLDINGS LIMITED (CONSOLIDATED)
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 16 -
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
27
(1,785,813)
(54,933)
Interest paid
(55,867)
(54,060)
Income taxes refunded/(paid)
1,219,167
(235,624)
Net cash outflow from operating activities
(622,513)
(344,617)
Investing activities
Purchase of tangible fixed assets
(745,283)
(162,873)
Proceeds on disposal of tangible fixed assets
-
25,250
Investment in subsidiaries
-
(120)
Other investments and loans received/ (made)
(283,797)
855,626
Interest received
-
0
14
Net cash (used in)/generated from investing activities
(1,029,080)
717,897
Financing activities
Proceeds from issue of shares
-
13,889
Receipt/ (Payment) of bank loans
(300,000)
(888,371)
Purchase of shares in subsidiary from non-controlling interest
(40,489)
-
Net cash used in financing activities
(340,489)
(874,482)
Net decrease in cash and cash equivalents
(1,992,082)
(501,202)
Cash and cash equivalents at beginning of year
931,125
1,432,327
Cash and cash equivalents at end of year
(1,060,957)
931,125
Relating to:
Cash at bank and in hand
324,198
931,125
Bank overdrafts included in creditors payable within one year
(1,385,155)
-
ATRIUM GROUP HOLDINGS LIMITED (CONSOLIDATED)
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 17 -
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
28
114,820
(348,120)
Income taxes paid
-
(364,473)
Net cash inflow/(outflow) from operating activities
114,820
(712,593)
Investing activities
Proceeds on disposal of subsidiaries
-
0
(120)
Other investments and loans received
(256,000)
-
0
Proceeds from other investments and loans
-
827,876
Net cash (used in)/generated from investing activities
(256,000)
827,756
Net (decrease)/increase in cash and cash equivalents
(141,180)
115,163
Cash and cash equivalents at beginning of year
291,357
176,194
Cash and cash equivalents at end of year
150,177
291,357
ATRIUM GROUP HOLDINGS LIMITED (CONSOLIDATED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 18 -
1
Accounting policies
Company information

Atrium Group Holdings Limited (Consolidated) (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Sixth Floor Capital Tower, 91 Waterloo Road, London, United Kingdom, SE1 8RT.

 

The group consists of Atrium Group Holdings Limited (Consolidated) and all of its subsidiaries.

1.1
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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Basis of consolidation

The consolidated financial statements incorporate those of Atrium Group Holdings Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Atrium Limited and Acanthus Investments Limited, acquired in March 2019 through restructuring, have been consolidated using the merger accounting method. An indirect holding, Kelvin Lighting Limited, was acquired by Atrium Limited in 2019. Kelvin Lighting Limited's results are incorporated within Atrium Limited's results from June 2019 using the purchase method.

 

All financial statements are made up to 31 December 2022. 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.

Atrium Limited and Acanthus Investments Limited have been included in the group financial statements using the merger method of accounting following a restructuring in March 2019.

 

The group profit and loss account and statement of cash flows also include the results and cash flows of the indirect holding of Kelvin Lighting Limited for the period from its acquisition by Atrium Limited in June 2019, and additionally the indirect holding of Atrium Lighting Ireland Limited for the period from its acquisition by Atrium Limited in 2022.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

ATRIUM GROUP HOLDINGS LIMITED (CONSOLIDATED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 19 -

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.3
Going concern

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

 

Additionally, the directors continue to monitor the impact of COVID-19 and potential implications on future operations. The directors have undertaken a number of scenario projections to understand the potential impact on the business and remain satisfied that the Company is able to meet its liabilities as they fall due over the next 12 months. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.4
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. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.5
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 5 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.6
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.

ATRIUM GROUP HOLDINGS LIMITED (CONSOLIDATED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 20 -

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:

Freehold land and buildings
Straight line over 50 years
Leasehold land and buildings
Straight line over 5-50 years
Fixtures, fittings and equipment
15-33.3% on cost per annum
Computers
25% on cost per annum
Motor vehicles
25% on cost per annum

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 profit and loss account.

1.7
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

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.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.8
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

ATRIUM GROUP HOLDINGS LIMITED (CONSOLIDATED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 21 -

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.9
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.10
Cash and cash equivalents

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.

1.11
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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 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 transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

ATRIUM GROUP HOLDINGS LIMITED (CONSOLIDATED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 22 -
Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

ATRIUM GROUP HOLDINGS LIMITED (CONSOLIDATED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 23 -
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.12
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.13
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account 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.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

ATRIUM GROUP HOLDINGS LIMITED (CONSOLIDATED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 24 -
1.14
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.15
Retirement benefits

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

1.16
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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.

1.17
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.18
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

ATRIUM GROUP HOLDINGS LIMITED (CONSOLIDATED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 25 -
3
Turnover and other revenue
2022
2021
£
£
Turnover analysed by class of business
Lighting components and fittings sales
14,019,958
15,218,120
2022
2021
£
£
Other revenue
Interest income
-
14
Grants received
-
35,870
4
Operating loss
2022
2021
£
£
Operating loss for the year is stated after charging/(crediting):
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
157,202
10,319
Government grants
-
(35,870)
Depreciation of owned tangible fixed assets
190,519
130,689
Profit on disposal of tangible fixed assets
-
(14,672)
Amortisation of intangible assets
332,018
332,018
Operating lease charges
744,338
739,521
5
Auditor's remuneration
2022
2021
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
8,250
7,800
Audit of the financial statements of the company's subsidiaries
40,370
41,900
48,620
49,700
6
Employees

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

Group
Company
2022
2021
2022
2021
Number
Number
Number
Number
Management, Sales, Finance, HR & Marketing (including directors)
58
49
-
0
-
0
ATRIUM GROUP HOLDINGS LIMITED (CONSOLIDATED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
6
Employees
(Continued)
- 26 -

Their aggregate remuneration comprised:

Group
Company
2022
2021
2022
2021
£
£
£
£
Wages and salaries
3,483,782
3,010,356
-
0
-
0
Social security costs
449,557
366,426
33,549
-
Pension costs
96,761
83,306
-
0
-
0
4,030,100
3,460,088
33,549
-
0
7
Directors' remuneration
2022
2021
£
£
Remuneration for qualifying services
611,177
520,400
Company pension contributions to defined contribution schemes
21,633
19,733
632,810
540,133
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2022
2021
£
£
Remuneration for qualifying services
219,746
210,400
Company pension contributions to defined contribution schemes
8,000
8,000
8
Interest receivable and similar income
2022
2021
£
£
Interest income
Other interest income
-
14
9
Interest payable and similar expenses
2022
2021
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
55,090
52,524
Other finance costs:
Other interest
777
1,536
Total finance costs
55,867
54,060
ATRIUM GROUP HOLDINGS LIMITED (CONSOLIDATED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 27 -
10
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
25,624
27,670
Adjustments in respect of prior periods
37,348
-
0
Total current tax
62,972
27,670

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

2022
2021
£
£
Loss before taxation
(1,748,253)
(268,558)
Expected tax credit based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
(332,168)
(51,026)
Tax effect of expenses that are not deductible in determining taxable profit
(119,694)
4,562
Unutilised tax losses carried forward
467,309
-
0
Group relief
36,017
19,949
Permanent capital allowances in excess of depreciation
(89,286)
(8,898)
Amortisation on assets not qualifying for tax allowances
63,083
63,083
Under/(over) provided in prior years
37,711
-
0
Taxation charge
62,972
27,670
11
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 January 2022 and 31 December 2022
1,494,081
Amortisation and impairment
At 1 January 2022
825,895
Amortisation charged for the year
332,018
At 31 December 2022
1,157,913
Carrying amount
At 31 December 2022
336,168
At 31 December 2021
668,186
The company had no intangible fixed assets at 31 December 2022 or 31 December 2021.
ATRIUM GROUP HOLDINGS LIMITED (CONSOLIDATED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
11
Intangible fixed assets
(Continued)
- 28 -
Intangible assets of the group consisted of Atrium Limited's purchased goodwill in Kelvin Lighting Limited, which has a remaining amortisation period of 1.5 years as at 31 December 2022.
12
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Fixtures, fittings and equipment
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2022
1,700,000
272,918
90,897
292,515
166,069
2,522,399
Additions
-
427,518
1,995
315,770
-
0
745,283
At 31 December 2022
1,700,000
700,436
92,892
608,285
166,069
3,267,682
Depreciation and impairment
At 1 January 2022
217,507
211,877
85,835
212,493
130,433
858,145
Depreciation charged in the year
40,000
82,938
2,067
55,937
9,577
190,519
At 31 December 2022
257,507
(294,815)
(87,902)
(268,430)
(140,010)
1,048,664
Carrying amount
At 31 December 2022
1,442,493
405,621
4,990
339,855
26,059
2,219,018
At 31 December 2021
1,482,493
61,041
5,062
80,022
35,636
1,664,254
ATRIUM GROUP HOLDINGS LIMITED (CONSOLIDATED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
12
Tangible fixed assets
(Continued)
- 29 -
The company had no tangible fixed assets at 31 December 2022 or 31 December 2021.

Freehold Land and Buildings brought forward comprised a warehouse space owned by Atrium Limited. This warehouse was valued as at 31st December 2015 at a value of £1.7m. This valuation was carried out by an independent valuer, Jones Lang LaSalle Ltd and the valuation was based upon the valuer's experience within the market. Upon transition to FRS 102 in 2015, the company adopted the historical cost accounting policy of recognising this freehold property, with the £1.7m valuation carried forward as the deemed cost of the property.

 

In 2019, the warehouse was sold within the group. The sale of the asset has been adjusted for on consolidation of these accounts.

 

Investment properties rented to another group entity have been accounted for using the cost model. There are no investment properties included within company tangible fixed assets. The carrying value of investment properties included within group tangible fixed assets is £1,442,493 (2021 - £1,482,493).

13
Fixed asset investments
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
6,400,134
6,400,134
Investments in associates
15
25
25
-
0
-
0
25
25
6,400,134
6,400,134
Movements in fixed asset investments
Group
Shares in group undertakings and participating interests
£
Cost or valuation
At 1 January 2022 and 31 December 2022
25
Carrying amount
At 31 December 2022
25
At 31 December 2021
25
ATRIUM GROUP HOLDINGS LIMITED (CONSOLIDATED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
13
Fixed asset investments
(Continued)
- 30 -
Movements in fixed asset investments
Company
Shares in group undertakings
£
Cost or valuation
At 1 January 2022 and 31 December 2022
6,400,134
Carrying amount
At 31 December 2022
6,400,134
At 31 December 2021
6,400,134
14
Subsidiaries

Details of the company's subsidiaries at 31 December 2022 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Atrium Limited*
Sixth Floor, Capital Tower, 91 Waterloo Road, London, SE1 8RT
Ordinary
80.00
-
Kelvin Lighting Limited
Eskmills, Muselburgh, EH217PB
Ordinary
0
80.00
Acanthus Investments Limited
Sixth Floor, Capital Tower, 91 Waterloo Road, London, SE1 8RT
Ordinary
100.00
-
Atrium Lighting Ireland Limited
Block A, Cashel Business Centre, Cashel Road, Dublin 12, Dublin, Ireland D12 XY86
Ordinary
0
80.00
* Whilst the voting percentage held by Atrium Group Holdings Limited is 80% the actual shareholding percentage held by the company is 72.48% due to C shares which do not have any voting rights.
15
Associates

Details of associates at 31 December 2022 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
SBR Management Limited
UK
Ordinary
0
20
16
Stocks
Group
Company
2022
2021
2022
2021
£
£
£
£
Finished goods and goods for resale
1,998,185
1,794,867
-
0
-
0
ATRIUM GROUP HOLDINGS LIMITED (CONSOLIDATED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 31 -
17
Debtors
Group
Company
2022
2021
2022
2021
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,286,209
1,829,878
-
-
0
Corporation tax recoverable
1,324,158
1,776,357
1,299,645
1,299,645
Amounts owed by group undertakings
-
-
1,470,125
1,645,125
Other debtors
3,971,190
3,728,364
3,396,691
3,140,691
Prepayments and accrued income
68,745
69,124
-
0
-
0
6,650,302
7,403,723
6,166,461
6,085,461

Included in other debtors is an amount for £440,115 in respect of a rent deposit for leased office space. This amount is considered to be recoverable in greater than a year.

18
Creditors: amounts falling due within one year
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Bank loans and overdrafts
20
1,685,155
300,000
-
0
-
0
Trade creditors
2,548,598
3,300,550
-
0
1,020
Corporation tax payable
872,522
42,582
-
0
-
0
Other taxation and social security
333,917
632,551
-
-
Deferred income
22
16,322
-
0
-
0
-
0
Other creditors
621,206
631,559
721
1
Accruals and deferred income
1,076,501
1,029,549
20,836
19,020
7,154,221
5,936,791
21,557
20,041
19
Creditors: amounts falling due after more than one year
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Bank loans and overdrafts
20
11,629
311,629
-
0
-
0
ATRIUM GROUP HOLDINGS LIMITED (CONSOLIDATED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 32 -
20
Loans and overdrafts
Group
Company
2022
2021
2022
2021
£
£
£
£
Bank loans
311,629
611,629
-
0
-
0
Bank overdrafts
1,385,155
-
0
-
0
-
0
1,696,784
611,629
-
-
Payable within one year
1,685,155
300,000
-
0
-
0
Payable after one year
11,629
311,629
-
0
-
0
The bank loans are secured by first legal charges over the freehold property held by the group and fixed and floating chare over all assets of the company including book debts.
21
Deferred taxation

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

Liabilities
Liabilities
2022
2021
Group
£
£
Accelerated capital allowances
32,361
32,361
The company has no deferred tax assets or liabilities.
There were no deferred tax movements in the year.
22
Deferred income
Group
Company
2022
2021
2022
2021
£
£
£
£
Other deferred income
16,322
-
-
-
23
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
96,761
83,306
ATRIUM GROUP HOLDINGS LIMITED (CONSOLIDATED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
23
Retirement benefit schemes
(Continued)
- 33 -

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.

24
Share capital
Group and company
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
20,000
20,000
20,000
20,000
25
Operating lease commitments
Lessee

Of the operating lease commitments disclosed, £163,216 payable within the next 12 months and £1,052,184 of the total commitments relate to obligations between members of the group, in regards to leased warehouse space.

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
2022
2021
2022
2021
£
£
£
£
Within one year
907,157
915,714
-
-
Between two and five years
3,016,222
462,885
-
-
In over five years
91,065
-
-
-
4,014,444
1,378,599
-
-
Lessor

The operating leases represent leases of £1,052,184 to members of the group, of which £163,216 is payable within 12 months of the balance sheet date. After 5 years, the lessee has an option to terminate the lease on the provision that 6 months notice is given.

At the reporting end date the group had contracted with tenants for the following minimum lease payments:

Group
Company
2022
2021
2022
2021
£
£
£
£
Within one year
163,216
163,216
-
-
Between two and five years
652,864
652,864
-
-
In over five years
236,104
399,320
-
-
1,052,184
1,215,400
-
-
ATRIUM GROUP HOLDINGS LIMITED (CONSOLIDATED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 34 -
26
Related party transactions

As at 31 December 2022, the directors of the company owed the group £3,396,692 (2021: £3,140,691), of which £3,396,692 was owed to the company (2021: £3,140,691).

 

As at 31 December 2022, the group owed a former director of the company £586,945 (2021: £586,920), of which £nil was owed by the company (2021: £nil).

 

As at 31 December 2022, directors of group subsidiaries owed the group a further £96,003 (2021: £129,357) of which £nil was owed to the company (2021: £nil.)

 

The Directors are considered to be the key management personnel of the company and its subsidiaries and as such, their remuneration is disclosed in note 8 of these financial statements.

 

As at 31 December 2022, the company was owed £45,125 by Atrium Limited (2021: £45,125).

 

During the year, the company's subsidiary Atrium Limited paid rent of £163,216 (2021: £163,216) to Acanthus Investments Limited.

 

As at 31 December 2022, Acanthus Investments Limited owed £600 to Atrium Limited (2021: £nil).

 

Loans were interest-free and repayable on demand.

 

The company has taken advantage of the exemption available in accordance with FRS 102 paragraph 33.1A from the requirements to disclose details of transactions entered into between two or more members of the group, provided that any subsidiary which is party to the transaction is wholly owned by such a member.

27
Cash absorbed by group operations
2022
2021
£
£
Loss for the year after tax
(1,811,225)
(296,228)
Adjustments for:
Taxation charged
62,972
27,670
Finance costs
55,867
54,060
Investment income
-
0
(14)
Gain on disposal of tangible fixed assets
-
(14,672)
Amortisation and impairment of intangible assets
332,018
332,018
Depreciation and impairment of tangible fixed assets
190,519
130,689
Movements in working capital:
Increase in stocks
(203,318)
(823,056)
Decrease in debtors
585,019
303,735
(Decrease)/increase in creditors
(1,013,987)
230,865
Increase in deferred income
16,322
-
Cash absorbed by operations
(1,785,813)
(54,933)
ATRIUM GROUP HOLDINGS LIMITED (CONSOLIDATED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 35 -
28
Cash generated from/(absorbed by) operations - company
2022
2021
£
£
Loss for the year after tax
(61,694)
(10,978)
Movements in working capital:
Decrease in debtors
174,998
354,875
Increase/(decrease) in creditors
1,516
(692,017)
Cash generated from/(absorbed by) operations
114,820
(348,120)
29
Analysis of changes in net funds/(debt) - group
1 January 2022
Cash flows
31 December 2022
£
£
£
Cash at bank and in hand
931,125
(606,927)
324,198
Bank overdrafts
-
0
(1,385,155)
(1,385,155)
931,125
(1,992,082)
(1,060,957)
Borrowings excluding overdrafts
(611,629)
300,000
(311,629)
319,496
(1,692,082)
(1,372,586)
30
Analysis of changes in net funds - company
1 January 2022
Cash flows
31 December 2022
£
£
£
Cash at bank and in hand
291,357
(141,180)
150,177
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