Company Registration No. 08544723 (England and Wales)
PROCEED SOLUTIONS LTD
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
PROCEED SOLUTIONS LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Accountants' report
4
Statement of comprehensive income
5
Balance sheet
6 - 7
Statement of changes in equity
8
Statement of cash flows
9
Notes to the financial statements
10 - 21
PROCEED SOLUTIONS LTD
COMPANY INFORMATION
Directors
Mr M Day
Mr B B Richards
Company number
08544723
Registered office
Unit 15a
Vicarage Farm Business Park
Winchester Road
Fair Oak
Hampshire
SO50 7HD
Accountants
Leonard Gold Chartered Accountants
24 Landport Terrace
Portsmouth
Hampshire
PO1 2RG
PROCEED SOLUTIONS LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2023
- 1 -
The directors present the strategic report for the year ended 31 August 2023.
Fair review of the business
The company provides highly professional cleaning and support services with a high emphasis on innovation to direct customers and via Property Management organisations focussing on the recruitment, training and retention of motivated ethically employed staff and a customer-facing professional, well-motivated management structure to provide outstanding levels of client service and to help deliver our “best in class” aspirations.
Goals and Objectives
We are focussed on producing environments that are safe, clean and hygienic for our clients, their staff, customers and visitors. We achieve our goals of enhancing the quality of daily working life by delivering outstanding standards through our highly experienced management team and through ethical employment and a sustainable supply chain.
Principal Risks
The principal risks are:
The potential shortage of available candidates for the cleaning sector. We are delighted to report that over 95% of our cleaning colleagues are paid the real living wage, this has assisted recruitment and retention dramatically.
Competition in the marketplace and the general UK economic performance.
Employee Engagement
To improve our employee engagement we have introduced some unique benefits and engagement technology, these include but are not limited to – a quarterly e-newsletter “ProcEcho” to provide employees with a common awareness of company news, bridging loans, an online training package “ProHub”, and workspace technology “Deputy”.
The Management team also have bonus schemes in place allowing them to influence and share in profits.
The company regularly consults with employees on their interest and decisions that will affect them.
Disabled persons
The company policy on hiring, continuing employment and training, career development and promotion for disabled persons is operated where possible and appropriate without discrimination.
Review of the Year
We have had high level of success with our sales, this year, seeing an increase by some 64.23 percent whilst improving customer retention and profit margins.
2022 2023
Gross Profit Margin 23.77% 24.05%
The Board of Directors are satisfied with the year-end position, given that the company maintains a high level of liquidity with minimum borrowings and an excellent sales pipeline.
The company is quite simply going from strength to strength and has no potential bad debtors and maintains its financing without any borrowing,
Future Outlook
The coming financial year we will see significant growth and profit levels retention and the expectation of a further growth of circa 33%, Our Management are highly motivated and take a share in the company’s profits, we have gained strong relationships with Property Management clients and have attained tier 1 contractor approval.
PROCEED SOLUTIONS LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 2 -
Mr M Day
Director
19 April 2024
PROCEED SOLUTIONS LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 AUGUST 2023
- 3 -
The directors present their annual report and financial statements for the year ended 31 August 2023.
Principal activities
The principal activity of the company continued to be that of cleaning of commercial property
Results and dividends
The results for the year are set out on page 5.
Ordinary dividends were paid amounting to £404,000. The directors do not recommend payment of a final 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 M Day
Mr B B Richards
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of the review of the business, principle risks, employee engagement and disabled persons policy.
Small companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr M Day
Mr B B Richards
Director
Director
19 April 2024
PROCEED SOLUTIONS LTD
ACCOUNTANTS' REPORT TO THE BOARD OF DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF PROCEED SOLUTIONS LTD FOR THE YEAR ENDED 31 AUGUST 2023
- 4 -
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Proceed Solutions Ltd for the year ended 31 August 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and the related notes from the company’s accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at https://www.icaew.com/regulation.
This report is made solely to the board of directors of Proceed Solutions Ltd, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the financial statements of Proceed Solutions Ltd and state those matters that we have agreed to state to the board of directors of Proceed Solutions Ltd, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Proceed Solutions Ltd and its board of directors as a body, for our work or for this report.
It is your duty to ensure that Proceed Solutions Ltd has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Proceed Solutions Ltd. You consider that Proceed Solutions Ltd is exempt from the statutory audit requirement for the year.
We have not been instructed to carry out an audit or a review of the financial statements of Proceed Solutions Ltd. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
Leonard Gold Chartered Accountants
22 April 2024
24 Landport Terrace
Portsmouth
Hampshire
PO1 2RG
PROCEED SOLUTIONS LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2023
- 5 -
2023
2022
Notes
£
£
Turnover
3
10,885,847
6,628,695
Cost of sales
(8,267,614)
(5,053,005)
Gross profit
2,618,233
1,575,690
Administrative expenses
(2,058,257)
(1,268,414)
Other operating income
663
Operating profit
4
559,976
307,939
Interest receivable and similar income
7
1,154
Interest payable and similar expenses
8
(22,876)
(7,844)
Profit before taxation
538,254
300,095
Tax on profit
9
(134,415)
(81,753)
Profit for the financial year
403,839
218,342
The profit and loss account has been prepared on the basis that all operations are continuing operations.
PROCEED SOLUTIONS LTD
BALANCE SHEET
AS AT
31 AUGUST 2023
31 August 2023
- 6 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
570,666
284,396
Current assets
Debtors
12
2,153,904
1,287,847
Cash at bank and in hand
804,389
675,779
2,958,293
1,963,626
Creditors: amounts falling due within one year
13
(2,794,937)
(1,647,961)
Net current assets
163,356
315,665
Total assets less current liabilities
734,022
600,061
Creditors: amounts falling due after more than one year
14
(205,550)
(130,150)
Provisions for liabilities
Deferred tax liability
16
129,811
71,089
(129,811)
(71,089)
Net assets
398,661
398,822
Capital and reserves
Called up share capital
18
100
100
Profit and loss reserves
398,561
398,722
Total equity
398,661
398,822
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
PROCEED SOLUTIONS LTD
BALANCE SHEET (CONTINUED)
AS AT
31 AUGUST 2023
31 August 2023
- 7 -
The financial statements were approved by the board of directors and authorised for issue on 19 April 2024 and are signed on its behalf by:
Mr M Day
Mr B B Richards
Director
Director
Company Registration No. 08544723
PROCEED SOLUTIONS LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2023
- 8 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 September 2021
100
430,380
430,480
Year ended 31 August 2022:
Profit and total comprehensive income for the year
-
218,342
218,342
Dividends
10
-
(250,000)
(250,000)
Balance at 31 August 2022
100
398,722
398,822
Year ended 31 August 2023:
Profit and total comprehensive income for the year
-
403,839
403,839
Dividends
10
-
(404,000)
(404,000)
Balance at 31 August 2023
100
398,561
398,661
PROCEED SOLUTIONS LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2023
- 9 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
826,019
402,335
Interest paid
(22,876)
(7,844)
Income taxes paid
(32,224)
(49,485)
Net cash inflow from operating activities
770,919
345,006
Investing activities
Purchase of tangible fixed assets
(408,698)
(255,754)
Proceeds on disposal of tangible fixed assets
6,649
Interest received
1,154
Net cash used in investing activities
(407,544)
(249,105)
Financing activities
Payment of finance leases obligations
169,235
171,674
Dividends paid
(404,000)
(250,000)
Net cash used in financing activities
(234,765)
(78,326)
Net increase in cash and cash equivalents
128,610
17,575
Cash and cash equivalents at beginning of year
675,779
658,204
Cash and cash equivalents at end of year
804,389
675,779
PROCEED SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
- 10 -
1
Accounting policies
Company information
Proceed Solutions Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Unit 15a, Vicarage Farm Business Park, Winchester Road, Fair Oak, Hampshire, SO50 7HD.
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. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet 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.
1.3
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.
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.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold land and buildings
6.67% on cost
Leasehold improvements
6.67% on cost
Plant and equipment
25% on reducing balance
Fixtures and fittings
25% on cost
Computers
25% on cost
Motor vehicles
25% on reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
PROCEED SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 11 -
1.5
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.
1.6
Financial instruments
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.
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.
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 company 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.
PROCEED SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 12 -
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.
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 company’s contractual obligations expire or are discharged or cancelled.
1.7
Equity instruments
Equity instruments issued by the company 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 company.
1.8
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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
PROCEED SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 13 -
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 when the company has 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.
1.9
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.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
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 leases asset are consumed.
1.12
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.
Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.
PROCEED SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 14 -
1.13
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 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 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.
3
Turnover and other revenue
2023
2022
£
£
Other significant revenue
Interest income
1,154
-
Grants received
-
663
4
Operating profit
2023
2022
Operating profit 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
209
Government grants
-
(663)
Depreciation of owned tangible fixed assets
122,426
52,522
Profit on disposal of tangible fixed assets
-
(1,383)
Operating lease charges
43,468
62,436
5
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
162,500
68,759
Company pension contributions to defined contribution schemes
3,075
1,163
165,575
69,922
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022 - 2).
PROCEED SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 15 -
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Cost of sales staff
706
433
Management / administration staff
20
18
Total
726
451
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
7,659,116
4,499,436
Social security costs
418,850
264,774
Pension costs
134,069
71,663
8,212,035
4,835,873
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
1,154
Investment income includes the following:
Interest on financial assets not measured at fair value through profit or loss
1,154
8
Interest payable and similar expenses
2023
2022
£
£
Other finance costs:
Interest on finance leases and hire purchase contracts
22,876
7,844
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
75,741
32,272
Adjustments in respect of prior periods
(48)
Total current tax
75,693
32,272
PROCEED SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
9
Taxation
2023
2022
£
£
(Continued)
- 16 -
Deferred tax
Origination and reversal of timing differences
58,722
49,481
Total tax charge
134,415
81,753
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Profit before taxation
538,254
300,095
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
134,564
57,018
Tax effect of expenses that are not deductible in determining taxable profit
12,612
15,707
Permanent capital allowances in excess of depreciation
(59,015)
(43,314)
Amortisation on assets not qualifying for tax allowances
(78)
Under/(over) provided in prior years
48
Tax at marginal rate
(12,238)
Proft on asset disposal
(263)
Effect of timing differences
(152)
3,076
Deferred taxation
58,722
49,481
Taxation charge for the year
134,415
81,753
10
Dividends
2023
2022
2023
2022
Per share
Per share
Total
Total
£
£
£
£
Ordinary
Interim paid
4,040.00
2,500.00
404,000
250,000
PROCEED SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 17 -
11
Tangible fixed assets
Leasehold land and buildings
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 September 2022
57,733
6,795
18,748
287,004
370,280
Additions
2,980
11,037
16,504
2,285
13,060
362,832
408,698
At 31 August 2023
2,980
11,037
74,237
9,080
31,808
649,836
778,978
Depreciation and impairment
At 1 September 2022
28,370
4,982
9,546
42,988
85,886
Depreciation charged in the year
107
205
8,715
894
4,700
107,805
122,426
At 31 August 2023
107
205
37,085
5,876
14,246
150,793
208,312
Carrying amount
At 31 August 2023
2,873
10,832
37,152
3,204
17,562
499,043
570,666
At 31 August 2022
29,364
1,813
9,202
244,017
284,396
PROCEED SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
11
Tangible fixed assets
(Continued)
- 18 -
The carrying value of land and buildings comprises:
Stamp Duty Land Tax and legal fees on short term leasehold property.
2023
2022
£
£
Short leasehold
2,873
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2023
2022
£
£
Motor vehicles
486,326
244,017
12
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
2,077,009
1,252,986
Other debtors
5,688
8,042
Prepayments and accrued income
71,207
26,819
2,153,904
1,287,847
13
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Obligations under finance leases
15
171,884
78,051
Trade creditors
325,291
287,764
Corporation tax
75,741
32,272
Other taxation and social security
887,402
513,005
Other creditors
1,217,485
636,800
Accruals and deferred income
117,134
100,069
2,794,937
1,647,961
The finance lease liabilities are secured over the assets to which they relate.
14
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Obligations under finance leases
15
205,550
130,150
PROCEED SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 19 -
15
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
171,884
78,051
In two to five years
205,550
130,150
377,434
208,201
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
16
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
129,811
71,089
2023
Movements in the year:
£
Liability at 1 September 2022
71,089
Charge to profit or loss
58,722
Liability at 31 August 2023
129,811
17
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
134,069
71,663
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
18
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
100
100
100
100
PROCEED SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 20 -
19
Operating lease commitments
Lessee
The company is committed to paying £178,333 in regard to a property lease, the last payment being due February 2028. £40,000 is payable within one year. In addition £75,997 (2022 £77,762) is payable re operating leases with the final payment due June 2026. The total due within one year is £21,857 (2022 £41,559).
20
Capital commitments
There are no capital commitments at the year end (2022: None).
21
Directors' transactions
Dividends totalling £404,000 (2002 - £250,000) were paid in the year in respect of shares held by the company's directors.
Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
-
117,347
202,000
120,265
199,082
-
38,919
202,000
40,819
200,100
156,266
404,000
161,084
399,182
22
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
403,839
218,342
Adjustments for:
Taxation charged
134,415
81,753
Finance costs
22,876
7,844
Investment income
(1,154)
Gain on disposal of tangible fixed assets
-
(1,383)
Depreciation and impairment of tangible fixed assets
122,426
52,522
Movements in working capital:
Increase in debtors
(866,057)
(575,505)
Increase in creditors
1,009,674
618,762
Cash generated from operations
826,019
402,335
PROCEED SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 21 -
23
Analysis of changes in net debt
2023
£
Opening net funds/(debt)
Cash at bank and in hand
675,779
Obligations under finance leases
(208,201)
467,578
Changes in net debt arising from:
Cash flows of the entity
(40,625)
Closing net funds/(debt) as analysed below
426,953
Closing net funds/(debt)
Cash at bank and in hand
804,389
Obligations under finance leases
(377,434)
426,955
2023-08-312022-09-01falseCCH SoftwareCCH Accounts Production 2024.100Mr M DayMr B B RichardsfalsefalseFor the financial year ended 31 August 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.085447232022-09-012023-08-3108544723bus:Director12022-09-012023-08-3108544723bus:Director22022-09-012023-08-3108544723bus:RegisteredOffice2022-09-012023-08-31085447232023-08-31085447232021-09-012022-08-3108544723core:RetainedEarningsAccumulatedLosses2021-09-012022-08-3108544723core:RetainedEarningsAccumulatedLosses2022-09-012023-08-31085447232022-08-3108544723core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-08-3108544723core:LeaseholdImprovements2023-08-3108544723core:PlantMachinery2023-08-3108544723core:FurnitureFittings2023-08-3108544723core:ComputerEquipment2023-08-3108544723core:MotorVehicles2023-08-3108544723core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-08-3108544723core:LeaseholdImprovements2022-08-3108544723core:PlantMachinery2022-08-3108544723core:FurnitureFittings2022-08-3108544723core:ComputerEquipment2022-08-3108544723core:MotorVehicles2022-08-3108544723core:CurrentFinancialInstrumentscore:WithinOneYear2023-08-3108544723core:CurrentFinancialInstrumentscore:WithinOneYear2022-08-3108544723core:Non-currentFinancialInstrumentscore:AfterOneYear2023-08-3108544723core:Non-currentFinancialInstrumentscore:AfterOneYear2022-08-3108544723core:CurrentFinancialInstruments2023-08-3108544723core:CurrentFinancialInstruments2022-08-3108544723core:ShareCapital2023-08-3108544723core:ShareCapital2022-08-3108544723core:RetainedEarningsAccumulatedLosses2023-08-3108544723core:RetainedEarningsAccumulatedLosses2022-08-3108544723core:ShareCapital2021-08-3108544723core:RetainedEarningsAccumulatedLosses2021-08-31085447232021-08-3108544723core:ShareCapitalOrdinaryShareClass12023-08-3108544723core:ShareCapitalOrdinaryShareClass12022-08-31085447232022-08-3108544723core:LandBuildingscore:LongLeaseholdAssets2022-09-012023-08-3108544723core:LeaseholdImprovements2022-09-012023-08-3108544723core:PlantMachinery2022-09-012023-08-3108544723core:FurnitureFittings2022-09-012023-08-3108544723core:ComputerEquipment2022-09-012023-08-3108544723core:MotorVehicles2022-09-012023-08-3108544723core:UKTax2022-09-012023-08-3108544723core:UKTax2021-09-012022-08-310854472312022-09-012023-08-310854472312021-09-012022-08-310854472322022-09-012023-08-310854472322021-09-012022-08-310854472332022-09-012023-08-310854472332021-09-012022-08-310854472342022-09-012023-08-310854472342021-09-012022-08-310854472352022-09-012023-08-310854472352021-09-012022-08-310854472362022-09-012023-08-310854472362021-09-012022-08-3108544723bus:OrdinaryShareClass12022-09-012023-08-3108544723bus:OrdinaryShareClass12021-09-012022-08-3108544723core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-08-3108544723core:LeaseholdImprovements2022-08-3108544723core:PlantMachinery2022-08-3108544723core:FurnitureFittings2022-08-3108544723core:ComputerEquipment2022-08-3108544723core:MotorVehicles2022-08-3108544723core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-09-012023-08-3108544723core:LandBuildingscore:ShortLeaseholdAssets2023-08-3108544723core:LandBuildingscore:ShortLeaseholdAssets2022-08-3108544723core:Non-currentFinancialInstruments2023-08-3108544723core:Non-currentFinancialInstruments2022-08-3108544723core:WithinOneYear2023-08-3108544723core:WithinOneYear2022-08-3108544723core:BetweenTwoFiveYears2023-08-3108544723core:BetweenTwoFiveYears2022-08-3108544723bus:OrdinaryShareClass12023-08-3108544723bus:OrdinaryShareClass12022-08-3108544723bus:PrivateLimitedCompanyLtd2022-09-012023-08-3108544723bus:FRS1022022-09-012023-08-3108544723bus:AuditExemptWithAccountantsReport2022-09-012023-08-3108544723bus:FullAccounts2022-09-012023-08-31xbrli:purexbrli:sharesiso4217:GBP