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Registration number: 03997988

Cintra Corporation UK Limited

Annual Report and Financial Statements

for the Year Ended 31 March 2023

 

Cintra Corporation UK Limited

Contents

Company Information

1

Strategic Report

2

Directors' Report

3 to 4

Statement of Directors' Responsibilities

5

Independent Auditor's Report

6 to 8

Profit and Loss Account

9

Balance Sheet

10

Statement of Changes in Equity

11

Statement of Cash Flows

12

Notes to the Financial Statements

13 to 27

 

Cintra Corporation UK Limited

Company Information

Directors

A R Sheikh

B McNamee

Registered office

Freshford House
Redcliffe Way
Bristol
BS1 6NL

Auditors

Milsted Langdon LLP
Chartered Accountants
Freshford House
Redcliffe Way
Bristol
BS1 6NL

 

Cintra Corporation UK Limited

Strategic Report for the Year Ended 31 March 2023

The directors present their strategic report for the year ended 31 March 2023.

Principal activity

The principal activity of the company is information technology consultancy.

Fair review of the business

The company's turnover in the year has only decreased by 3%. Turnover is still at a high level considering the company is still recovering from the impact of Covid-19 in previous years. The directors consider this a success. The high level of turnover is due to the increased market share in all the company's core markets and services provision.

The company's key financial and other performance indicators during the year were as follows:

 

Unit

2023

2022

Turnover

£

13,911,969

14,308,094

Gross profit

£

1,770,144

1,212,576

Gross profit margin

%

13

8

Turnover per employee

£

180,675

216,789

Principal risks and uncertainties

Competitive market
The company operates in a competitive market that could result in losing sales to competitors. The company manages this risk by providing value added service to its customers based on quality, integrity and innovative product solutions backed by competitive finance packages and longstanding experience in the market.

Research and development

During the year the company undertook research and development activity relating to future software development.

Outlook

The directors do not foresee any material changes in the principal activities and performance of the company. By managing costs in line with revenue, the directors are confident the company can continue to trade for the foreseeable future.

Approved and authorised by the Board on 26 March 2024 and signed on its behalf by:
 

.........................................
B McNamee
Director

 

Cintra Corporation UK Limited

Directors' Report for the Year Ended 31 March 2023

The directors present their report and the financial statements for the year ended 31 March 2023.

Directors of the company

The directors who held office during the year were as follows:

A R Sheikh

B McNamee

The Directors have chosen to present the following information required under schedule 7 of the 'Large and Medium-sized Companies Regulations 2008' within the strategic report:

• Principal Activities
• Future developments

Dividends

The directors' recommend an interim dividend of 0p per share being £nil for the year ended 31 March 2023 (2022 - £71,429).

Objectives and policies

Financial instruments
The company has procedures to identify risk and protect and manage the company from events that may hinder its financial performance objectives. The objectives aim to limit counterparty exposure, ensure sufficient working capital exists and monitor risk and manage it. The company does not consider it necessary to employ derivatives such as forward currency contracts to manage risk based on the company's current activities.

Objectives and policies
The company is exposed to price risk, credit risk, liquidity and cashflow risk. Appropriate policies have been developed and implemented to identify, evaluate and manage key risks and the directors review risk management strategies regularly.

The company is constantly looking for ways to expand its market offering and for different ways to market and strives to ensure that its outlets provide the highest levels of customer service which will put the company well placed to take advantage of any opportunities that may arise.

Price risk, credit risk, liquidity risk and cash flow risk

Price risk - the company's exposure to price risk is mitigated by all prices being reviewed and set by management.

Credit risk - the company is exposed to credit risk and management ensure credit checks are completed on all new customers and chase debts on a regular basis once they become overdue.

Liquidity and cash flow risk - the company's exposure to liquidity risk is minimal and the company has adequate working capital. The company is exposed to cash flow risk as a result of the timing between paying suppliers and the receipt of money from customers and management manage this through the use of customer credit checks and daily cash flow management.

 

Cintra Corporation UK Limited

Directors' Report for the Year Ended 31 March 2023

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Reappointment of auditors

The auditors Milsted Langdon LLP are deemed to be reappointed under section 487(2) of the Companies Act 2006.

Approved by the Board on 26 March 2024 and signed on its behalf by:

B McNamee
Director

   
     
 

Cintra Corporation UK Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities 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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

Cintra Corporation UK Limited

Independent Auditor's Report to the Members of Cintra Corporation UK Limited

Opinion

We have audited the financial statements of Cintra Corporation UK Limited (the 'company') for the year ended 31 March 2023, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the company's affairs as at 31 March 2023 and of its profit for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the 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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

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

Other 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.

 

Cintra Corporation UK Limited

Independent Auditor's Report to the Members of Cintra Corporation UK Limited

Opinion on other matter prescribed by the Companies Act 2006

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

the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

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

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page 5, 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 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 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.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the company operates in and how the company is complying with the legal and regulatory framework;

inquired of management, and those charged with governance, about their own identification and assessment of the risks or irregularities, including known and actual, suspected or alleged instances of fraud;

 

Cintra Corporation UK Limited

Independent Auditor's Report to the Members of Cintra Corporation UK Limited

discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud.

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity’s operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://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.

......................................
Guy Armitage-Norton (Senior Statutory Auditor)
For and on behalf of Milsted Langdon LLP, Statutory Auditor
Chartered Accountants
Freshford House
Redcliffe Way
Bristol
BS1 6NL

29 March 2024

 

Cintra Corporation UK Limited

Profit and Loss Account for the Year Ended 31 March 2023

Note

2023
£

2022
£

Turnover

3

13,911,969

14,308,094

Cost of sales

 

(12,141,825)

(13,095,518)

Gross profit

 

1,770,144

1,212,576

Administrative expenses

 

(1,107,678)

(942,031)

Operating profit

4

662,466

270,545

Other interest receivable and similar income

5

173,139

21,178

Interest payable and similar expenses

6

(4,963)

(15,831)

   

168,176

5,347

Profit before tax

 

830,642

275,892

Tax on profit

10

36,910

(70,788)

Profit for the financial year

 

867,552

205,104

The above results were derived from continuing operations.

The company has no recognised gains or losses for this or the preceeding year other than the results above. Accordingly, a separate Statement of Other Comprehensive Income is not presented.

 

Cintra Corporation UK Limited

(Registration number: 03997988)
Balance Sheet as at 31 March 2023

Note

2023
£

2022
£

Fixed assets

 

Intangible assets

11

127,360

12,444

Tangible assets

12

325,535

374,621

 

452,895

387,065

Current assets

 

Debtors

13

2,906,552

2,478,655

Cash at bank and in hand

14

2,885,647

2,395,060

 

5,792,199

4,873,715

Creditors: Amounts falling due within one year

15

(3,400,721)

(2,666,478)

Net current assets

 

2,391,478

2,207,237

Total assets less current liabilities

 

2,844,373

2,594,302

Creditors: Amounts falling due after more than one year

15

-

(586,099)

Provisions for liabilities

16

(40,338)

(71,720)

Net assets

 

2,804,035

1,936,483

Capital and reserves

 

Called up share capital

18

260,784

260,784

Profit and loss account

2,543,251

1,675,699

Total equity

 

2,804,035

1,936,483

Approved and authorised by the Board on 26 March 2024 and signed on its behalf by:
 

B McNamee
Director

   
     
 

Cintra Corporation UK Limited

Statement of Changes in Equity for the Year Ended 31 March 2023

Share capital
£

Retained earnings
£

Total
£

At 1 April 2022

260,784

1,675,699

1,936,483

Profit for the year

-

867,552

867,552

At 31 March 2023

260,784

2,543,251

2,804,035


 

Share capital
£

Retained earnings
£

Total
£

At 1 April 2021

260,784

1,542,024

1,802,808

Profit for the year

-

205,104

205,104

Dividends

-

(71,429)

(71,429)

At 31 March 2022

260,784

1,675,699

1,936,483


 

 

Cintra Corporation UK Limited

Statement of Cash Flows for the Year Ended 31 March 2023

Note

2023
£

2022
£

Cash flows from operating activities

Profit for the year

 

867,552

205,104

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

4

191,630

56,138

Finance income

5

(173,139)

(21,178)

Finance costs

6

4,963

15,831

Income tax expense

10

(36,910)

70,788

 

854,096

326,683

Working capital adjustments

 

(Increase)/decrease in trade debtors

13

(422,369)

86,289

Increase/(decrease) in trade creditors

15

868,144

(1,362,137)

Net cash flow from operating activities

 

1,299,871

(949,165)

Cash flows from investing activities

 

Interest received

5

173,139

21,178

Acquisitions of tangible assets

(128,215)

(276,060)

Proceeds from sale of tangible assets

 

35

-

Acquisition of intangible assets

11

(129,280)

-

Net cash flows from investing activities

 

(84,321)

(254,882)

Cash flows from financing activities

 

Interest paid

6

(4,963)

(15,831)

Proceeds from bank borrowing draw downs

 

(720,000)

-

Repayment of bank borrowing

 

-

(80,000)

Dividends paid

21

-

(71,429)

Net cash flows from financing activities

 

(724,963)

(167,260)

Net increase/(decrease) in cash and cash equivalents

 

490,587

(1,371,307)

Cash and cash equivalents at 1 April

 

2,395,060

3,766,367

Cash and cash equivalents at 31 March

 

2,885,647

2,395,060

 

Cintra Corporation UK Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Freshford House
Redcliffe Way
Bristol
BS1 6NL

The principal place of business is:
The Coach House
Eastwood Park
Falfield
Wotton-under-Edge
Gloucestershire
GL12 8DA

These financial statements were authorised for issue by the Board on 26 March 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The financial statements are presented in pound sterling, which is the functional currency of the company and are rounded to the nearest pound.

Going concern

The company made a profit before tax of £830,642 (2022- £275,892) and had cash at bank of £2,885,647 (2022 - £2,395,060) at the year end.

Based on the above and information available to the Directors at the date of approval, the company continues to adopt the going concern basis in preparing these financial statements and has adequate resources to continue to trade for the foreseeable future being twelve months from approval of these financial statements.

 

Cintra Corporation UK Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
- the amount of revenue can be reliably measured;
- all of the significant risks and rewards of ownership have been transferred to the customer;
- the costs incurred or to be incurred in respect of he transaction can be measured reliably;
- it is probable that future economic benefits will flow to the entity; and
- specific criteria have been met for each of the company's activities.

Finance income and costs policy

Interest income and expenses are recognised using the effective interest rate method.

Foreign currency transactions and balances

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting date 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 are included in the profit and loss account for the period.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

 

Cintra Corporation UK Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

Asset class

Depreciation method and rate

Leasehold property improvements

25% straight line

Furniture, fittings and equipment

25% reducing balance

Motor vehicles

33% straight line

Intangible assets

Separately acquired software have a finite useful life and are recognised at cost less any subsequent accumulated amortisation and any accumulated impairment losses.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Computer software

25% straight line


Development costs
Research and development expenditure is written off as incurred, except that development expenditure incurred on an individual project is capitalised as an intangible asset when the company can demonstrate the technical feasibility of completing the intangible asset so that it will be available for use or sale, its intention to complete and its ability to use or sell the asset, how the asset will generate future economic benefits, the availability of resources to complete the asset and the ability to measure reliably the expenditure during development.

Following initial recognition of the development expenditure as an asset, the cost model is applied requiring the asset to be carried at cost less any accumulated amortisation and accumulated impairment losses. Amortisation of the asset begins when development is complete and the asset is available for use. It is amortised evenly over the period of expected future benefit. During the period of development the asset is tested for impairment annually.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Debtors

Trade debtors are amounts due from customers for services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

 

Cintra Corporation UK Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

Creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

 

Cintra Corporation UK Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

Share based payments

The cost and corresponding increase in equity in respect of equity-settled share-based payment transactions with employees are measured by reference to the fair value of equity instruments issued at the date of grant. Amounts are expensed on a straight line basis over the vesting period based on the estimate of shares that will eventually vest and adjusted for the effect of non market-based vesting conditions. The cost and fair value of the liability incurred in respect of cash-settled transactions is measured using an appropriate option pricing model with changes in fair value recognised in profit or loss for the period.

Financial instruments

Classification
The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

 Recognition and measurement
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.

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 company 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.

 

 

Cintra Corporation UK Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

Judgements and key sources of estimation uncertainty

In the application of the company'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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The company recognises deferred income on the basis of income billed in advance for future periods. The estimation and judgement that directors make in recognising deferred income are based on contracted amounts and any other factors that are considered to be relevant.

3

Turnover

The analysis of the company's turnover for the year from continuing operations is as follows:

2023
£

2022
£

Sale of goods

1,637,927

962,934

Rendering of services

12,274,042

13,345,160

13,911,969

14,308,094

The analysis of the company's turnover for the year by market is as follows:

2023
£

2022
£

UK

12,274,042

13,345,160

Europe

38,424

37,108

Rest of world

1,599,503

925,826

13,911,969

14,308,094

4

Operating profit

Arrived at after charging/(crediting):

2023
£

2022
£

Depreciation expense

177,266

51,125

Amortisation expense

14,364

5,013

Operating lease expense - property

39,495

38,273

 

Cintra Corporation UK Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

5

Other interest receivable and similar income

2023
£

2022
£

Interest income on bank deposits

-

54

Other finance income

173,139

21,124

173,139

21,178

6

Interest payable and similar expenses

2023
£

2022
£

Interest on bank overdrafts and borrowings

4,963

15,831

7

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2023
£

2022
£

Wages and salaries

5,628,415

4,964,558

Social security costs

948,634

777,200

Pension costs, defined contribution scheme

291,474

234,304

Other employee expense

236,038

198,726

7,104,561

6,174,788

The average number of persons employed by the company (including directors) during the year, analysed by category, was as follows:

2023
No.

2022
No.

Administration and support

77

66

77

66

8

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
£

2022
£

Remuneration

56,983

387,247

Contributions paid to money purchase schemes

2,848

9,416

59,831

396,663



 

 

Cintra Corporation UK Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

During the year the number of directors who were receiving benefits and share incentives was as follows:

2023
No.

2022
No.

Accruing benefits under money purchase pension scheme

2

2

In respect of the highest paid director:

2023
£

2022
£

Remuneration

38,371

200,593

9

Auditors' remuneration

2023
£

2022
£

Audit of the financial statements

16,000

16,000

Other fees to auditors

All other compliance services

5,970

19,800


 

10

Taxation

Tax charged/(credited) in the income statement:

2023
£

2022
£

Current taxation

UK corporation tax

(5,528)

-

Deferred taxation

Arising from origination and reversal of timing differences

(31,382)

70,788

Tax (receipt)/expense in the income statement

(36,910)

70,788

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2022 - the same as the standard rate of corporation tax in the UK) of 19% (2022 - 19%).

The differences are reconciled below:

 

Cintra Corporation UK Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

2023
£

2022
£

Profit before tax

830,642

275,892

Corporation tax at standard rate

157,822

52,419

Effect of expense not deductible in determining taxable profit (tax loss)

6,536

1,730

Deferred tax credit from unrecognised tax loss or credit

(31,382)

-

Tax increase/(decrease) from effect of capital allowances and depreciation

8,971

(350)

Tax (decrease)/increase from changes in tax provisions due to legislation

(178,857)

16,989

Total tax (credit)/charge

(36,910)

70,788

11

Intangible assets

Computer software
 £

Total
£

Cost or valuation

At 1 April 2022

20,055

20,055

Additions acquired separately

129,280

129,280

At 31 March 2023

149,335

149,335

Amortisation

At 1 April 2022

7,611

7,611

Amortisation charge

14,364

14,364

At 31 March 2023

21,975

21,975

Carrying amount

At 31 March 2023

127,360

127,360

At 31 March 2022

12,444

12,444

 

Cintra Corporation UK Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

12

Tangible assets

Short leasehold land and buildings
 £

Furniture, fittings and equipment
 £

Motor vehicles
 £

Total
£

Cost or valuation

At 1 April 2022

45,685

84,914

399,906

530,505

Additions

-

6,215

122,000

128,215

Disposals

-

(46)

-

(46)

At 31 March 2023

45,685

91,083

521,906

658,674

Depreciation

At 1 April 2022

45,685

67,302

42,897

155,884

Charge for the year

-

5,037

172,229

177,266

Eliminated on disposal

-

(11)

-

(11)

At 31 March 2023

45,685

72,328

215,126

333,139

Carrying amount

At 31 March 2023

-

18,755

306,780

325,535

At 31 March 2022

-

17,612

357,009

374,621

13

Debtors

Current

Note

2023
£

2022
£

Trade debtors

 

1,948,457

1,386,425

Amounts owed by related parties

23

607,923

418,677

Other debtors

 

25,660

54,156

Prepayments and accrued income

 

214,994

515,407

Income tax asset

 

109,518

103,990

   

2,906,552

2,478,655

14

Cash and cash equivalents

2023
£

2022
£

Cash at bank

2,885,647

2,395,060

 

Cintra Corporation UK Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

15

Creditors

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

19

-

133,901

Trade creditors

 

399,025

477,422

Amounts due to related parties

23

1,256,192

9,096

Social security and other taxes

 

716,998

696,863

Other creditors

 

15,986

11,162

Accruals and deferred income

 

1,012,520

1,338,034

 

3,400,721

2,666,478

Due after one year

 

Loans and borrowings

19

-

586,099

16

Provisions for liabilities

Deferred tax
£

Total
£

At 1 April 2022

71,720

71,720

Increase (decrease) in existing provisions

(31,382)

(31,382)

At 31 March 2023

40,338

40,338

17

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £291,474 (2022 - £234,304).

18

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary of £0.50 each

521,568

260,784

521,568

260,784

         
 

Cintra Corporation UK Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

19

Loans and borrowings

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

-

586,099

2023
£

2022
£

Current loans and borrowings

Bank borrowings

-

133,901

Bank loans are demoninated in GBP and are repayable in accordance with repayment terms at a nominal rate of interest plus the prevailing base rate.

The borrowings are secured by fixed and floating charges including first legal charges over the assets to which they relate.

20

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

39,495

39,495

Later than one year and not later than five years

41,886

48,694

81,381

88,189

The amount of non-cancellable operating lease payments recognised as an expense during the year was £39,495 (2022 - £38,273).

21

Dividends

Interim dividends paid

   

2023
£

 

2022
£

Interim dividend of £0.1369 per each Ordinary

 

-

 

71,429

         
 

Cintra Corporation UK Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

22

Analysis of changes in net debt

At 1 April 2022
£

Financing cash flows
£

At 31 March 2023
£

Cash and cash equivalents

Cash

2,395,060

490,587

2,885,647

Borrowings

Long term borrowings

586,099

(586,099)

-

Short term borrowings

133,901

(133,901)

-

720,000

(720,000)

-

 

3,115,060

(229,413)

2,885,647

 

Cintra Corporation UK Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

23

Related party transactions

The company has taken advantage of the exemptions available in Financial Reporting Standard 102 and has not disclosed transactions between wholly owned companies within the same group.

Key management compensation

2023
£

2022
£

Salaries and other short term employee benefits

92,485

198,667

Post-employment benefits

4,301

8,333

96,786

207,000

Summary of transactions with other related parties

Other related parties relate to transactions with entities under common control.
 

Expenditure with and payables to related parties

2023

Other related parties
£

Rendering of services

1,022,898

2022

Other related parties
£

Rendering of services

435,791

Amounts payable to related party

167,399

Loans to related parties

2023

Key management
£

Total
£

At start of period

37,500

37,500

Repaid

(37,500)

(37,500)

At end of period

-

-

2022

Key management
£

Total
£

Advanced

37,500

37,500

At end of period

37,500

37,500

Terms of loans to related parties

The loans to the parent are interest free and repayable on demand.
 

 

Cintra Corporation UK Limited

Notes to the Financial Statements for the Year Ended 31 March 2023






 

Loans from related parties

2023

Key management
£

Other related parties
£

Total
£

At start of period

9,096

-

9,096

Advanced

1,115,726

131,370

1,247,096

At end of period

1,124,822

131,370

1,256,192

2022

Key management
£

Total
£

At start of period

46,729

46,729

Repaid

(37,633)

(37,633)

At end of period

9,096

9,096

Terms of loans from related parties

The loans from the parent are interest free and repayable on demand.
 

24

Financial instruments

Categorisation of financial instruments

2023
 £

2022
 £

Financial assets measured at cost through profit or loss

2,691,558

1,963,248

Financial liabilities measured at cost through profit or loss

(2,388,201)

(1,899,306)

25

Parent and ultimate parent undertaking

The company's immediate parent is Cintra Group Holdings LLC, incorporated in United States of America.

  These financial statements are available upon request from 3 Park Avenue, 32nd Floor, New York, NY 10016, United States