REGISTERED NUMBER: 04704549 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2023 |
FOR |
DATAQUEST GROUP LIMITED |
REGISTERED NUMBER: 04704549 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2023 |
FOR |
DATAQUEST GROUP LIMITED |
DATAQUEST GROUP LIMITED (REGISTERED NUMBER: 04704549) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 6 |
Report of the Independent Auditors | 11 |
Consolidated Income Statement | 15 |
Consolidated Other Comprehensive Income | 16 |
Consolidated Balance Sheet | 17 |
Company Balance Sheet | 18 |
Consolidated Statement of Changes in Equity | 19 |
Company Statement of Changes in Equity | 20 |
Consolidated Cash Flow Statement | 21 |
Notes to the Consolidated Cash Flow Statement | 22 |
Notes to the Consolidated Financial Statements | 23 |
DATAQUEST GROUP LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 MARCH 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants and |
Statutory Auditors |
50 Seymour Street |
London |
W1H 7JG |
DATAQUEST GROUP LIMITED (REGISTERED NUMBER: 04704549) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2023 |
The directors present their strategic report of the company and the group for the year ended 31 March 2023. |
REVIEW OF BUSINESS |
Dataquest Group Limited is the holding company of the Dataquest Group ("the Group") and is a privately owned, independent technology business, that puts the needs and expectations of its clients at the centre of every decision made. |
The Group has developed a range of product offerings including managed print solutions, IT managed services, IT network services, cloud computing and telecommunication services available direct and through its partner channel offering. The principal activity for the company and the Group is to sell these solutions with a view of significantly reducing the customers IT expenditure and also improving the performance of their IT infrastructure and systems. |
The Group has circa 201 employees as at 31 March 2023 dedicated in helping our clients gain a competitive advantage by leveraging the solutions that we offer. |
RESULTS AND PERFORMANCE |
The consolidated results of the Group for the year, as set out on pages fifteen to forty six, show a loss on ordinary activities before tax of £964,538 (2022: Loss £1,331,993). The shareholders' funds of the Group at the year end shows a deficit of £2,495,869 (2022: Deficit £995,862). |
The directors review and monitor all aspects of the business but consider that turnover, gross margins, EBITDA and headcounts are the key performance indicators for the business. The key indicators can be summarised as follows: |
2023 | 2022 | Change |
Turnover | £39,935,548 | £33,781,984 | 18% |
Gross profit margin | 36% | 40% | (4%) |
EBITDA | £1,873,712 | £509,828 | 268% |
EBITDA margin | 4.7% | 1.5% | 3.2% |
The 2023 trading year results show progress towards pre-covid trading performances with significant improvements to turnover. Changes to clients working practices that lead to offices being closed and homeworking being the norm have slowly started to change back to office use being preferred due to the collaborative benefits clients enjoy by being together. Whilst our results this year are significantly better than 2022 the full recovery to pre Covid levels of profit will take longer to achieve. |
Our trading performance resulted from increased spend from most client sectors including strong hospitality expansion and new business wins from several key clients. |
The challenges the Group face include the impact of inflation that puts pressure on supplier negotiations and higher interest rates than were anticipated in 2019 and the impact that has on the economy in the foreseeable future. |
The directors of the company have experienced several recessions over the last twenty years and have a a suite of products and services that can assist clients to make efficiencies which whilst benefitting them offer opportunities to expand our products and services. |
BUSINESS ENVIRONMENT |
Technology is continually advancing and the Group is keen to move with these advancements to ensure that our customers are receiving high quality products and services. |
DATAQUEST GROUP LIMITED (REGISTERED NUMBER: 04704549) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2023 |
STRATEGY |
We have built our reputation and success by delivering high-quality service, value and reliability. This is reflected in our choice of market-leading brands, the business improvements we provide to customers, our commitment to proactive maintenance and the response times we accomplish. |
Dataquest has a proven track record in re-engineering business processes to improve the way organisations deal with documents and information. The benefits are usually multifaceted as improvements to productivity are often accompanied by reduced overheads, lower environmental impact, increased security and a better user experience. |
The company has positioned itself as one of the UK's leading providers of IT services & support, managed cloud, telecommunications, managed print and business process automation. |
In ever changing market conditions and a challenging economic climate, we are committed to deliver industry leading service, technology and value to our clients in a way that meets the goals of their organisation, reflects the needs of their users and rewards Dataquest Group with long term customer loyalty. |
Our services are well positioned to help clients overcome the current challenges they face and our focus is on delivering technological efficiencies and successful contract negotiations producing mutual benefits to all industry sectors. |
DATAQUEST GROUP LIMITED (REGISTERED NUMBER: 04704549) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2023 |
PRINCIPAL RISK AND UNCERTAINTIES |
The following risks have been identified as having the potential to have a significant effect on the performance of the Group and all of its subsidiary entities: |
1) Market risks |
The Group continues to actively review and respond to risks and uncertainties that has affected the whole UK economy and the business environment from the Covid-19 pandemic, Brexit and the ever-changing political situation in the UK. |
The directors remain cautious given the unpredictable nature of the current market risks being faced but believe that the diversified product offering that it has and the strong client relationships it holds can mitigate the effects of these risks in the short term. The Group, like many other organisations, could be impacted by a recession in the UK, especially as a large proportion of the Group's focus is in the UK. |
2) Technology |
The Group operates in a rapidly changing industry sector due to the constant changes in technology. |
However, by supplying equipment from a variety of strategic partners and keeping up to date with their latest innovations, the Group continues to ensure that it is best able to supply and service its customers' requirements. |
3) Cyber and Information Security |
Cyber risk encompasses any risk of financial loss that could damage the reputation of the Group from a potential failure of its information technology system. The Group maintains IT systems and infrastructure for several customers and is therefore potentially at risk of a cyberattack. Any cyber threat could lead to accidental exposure or deliberate theft of sensitive information, loss of service or system availability, significant system changes or upgrades and cybercrime. |
To mitigate this risk, dedicated IT personnel with appropriate technical expertise and support within the group implement best practice IT standards and oversee IT security. Cybersecurity reviews are performed regularly. The Group has accreditations in place in terms of ISO9001, ISO14001, ISO27001 and Cyber essentials which are regularly audited by 3rd party organisations for compliance. In addition, the Group maintains appropriate insurance to cover this risk, especially as no organisation can guarantee it is immune to this risk, which shows the importance that the directors place on mitigating this risk. |
4) Compliance with legal and ethical standards |
A material failure to comply with applicable legal and ethical standards could result in penalties, costs, reputational harm and damage to relationships with suppliers or customers. The group has detailed guidelines and policies for employees for key compliance risks. |
5) Financial risk management and policies: |
a) Credit risk |
The main financial risk arising from the group's activities is credit risk. This risk is limited as hardware sales to customers are normally financed by leasing companies especially for the sale of multifunctional printers. Also, potential customers are subject to appropriate verification procedures in advance of credit being granted and credit limits are regularly monitored. |
b) Liquidity risk |
The Group monitors cash flow as part of its day to day control procedures. The directors consider cash flow projections on a weekly basis for the following 3 months to ensure that sufficient funds are available for its ongoing operations and future growth. The Group regularly monitors its trade debts and the directors do not consider that it carries any material credit risks. |
c) Interest risk |
DATAQUEST GROUP LIMITED (REGISTERED NUMBER: 04704549) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2023 |
The Group is exposed to interest rate risk from bank borrowings at margin and SONIA, especially after its hedging product expires in April 2023. |
STRATEGIC OUTLOOK |
The Group has a focus to help clients navigate the challenges of high inflation and high interest rates. Whilst these challenges are outside of the control of us and our clients through new technologies including AI technologies and increased automation cost efficiencies help balance the new pressures on cashflows. |
Increased activity in all sectors is expected to continue with strong growth both in the UK and through our European entity Dataquest BV. Our ability to service the needs of clients in Europe will continue to increase in demand as clients use our capabilities to overcome the logistical challenges of Brexit. |
Further consideration of the going concern assessment is included within the Directors report and in note 3 to the financial statements. As a result of the uncertainty faced by the economic challenges and the threat of recession, the directors will still operate cautiously but are confident that the Group will continue to improve its profitability and the balance sheet position further over the next year. |
ON BEHALF OF THE BOARD: |
DATAQUEST GROUP LIMITED (REGISTERED NUMBER: 04704549) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MARCH 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 March 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of selling and maintaining IT and telecommunication solutions, managed print services, cloud services and partner lead sales |
DIVIDENDS |
Total dividends of £331,244 (2022: £335,356) have been paid for the year ended 31 March 2023. The directors do not recommend payment of a further dividend. |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2022 to the date of this report. |
Other changes in directors holding office are as follows: |
FINANCIAL INSTRUMENTS |
In addition to the basic financial instruments including cash, debtors and creditors, the group also has an interest rate swap agreement with the bank to manage interest rate risk on its fixed rate borrowing. This financial instrument is initially recognised at fair value on the date on which the swap contract is entered into and is subsequently re-measured at fair value. This financial instrument is carried as an asset when the fair value is positive and as a liability when the fair value is negative. |
DONATIONS |
During the year, the group made charitable donations of £4,316 (2022: £54). |
DATAQUEST GROUP LIMITED (REGISTERED NUMBER: 04704549) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MARCH 2023 |
GOING CONCERN |
The parent company meets is day to day working capital through its own cash balances and funding from the Group. The parent company is part of the Group headed by Dataquest Group Limited ("The Group") and is party to a cross guarantee over the Group's funding facilities. The directors have therefore completed an assessment of the going concern based on the Group's position which is considered necessary as a result of the cross guarantee for a period of at least twelve months following the approval of each Group entity's financial statements (the going concern assessment period). |
In carrying out their duties in respect of going concern, the directors have reviewed the Group's cashflow forecasts, liquidity, borrowing facilities and related covenant requirements and the operational activities of the company and the Group. The company and the Group continue to have the backing of their shareholders and major stakeholders. The company and the Group, due to the unexpected rises in interest rates, have breached their bank loan covenants, however, the bank continues to be supportive and as a consequence have not taken any action at present. However, the bank has stated that it reserves its rights to take any action in the future that it deems appropriate in respect of any relevant defaults. |
Subsequent to the year end, the bank has agreed to extend the current loan facilities to 29 October 2025. |
The Group is in a net liability position as at the balance sheet date at the consolidated level. This is mainly due to the amortisation of the goodwill on consolidation, which is an accounting adjustment and does not affect the Group's cashflow or its working capital funding requirements. |
As such the directors anticipate that the company and the Group will have sufficient funds to meet their liabilities without compromising their working capital requirements for a period of 12 months from the date of signing these financial statements. |
The directors, therefore, consider that it is appropriate to prepare the accounts on a going concern basis. |
DIRECTORS’ INSURANCE AND INDEMNITIES |
The directors have the benefit of the indemnity provisions contained in the company's Articles of Association ('Articles'), and the group has maintained throughout the year, directors' and officers' liability insurance for the benefit of the group, the directors and its officers. The group has entered into qualifying third party indemnity arrangements for the benefit of all its directors in a form and scope which comply with the requirements of the Companies Act 2006 and which were in force throughout the year and remain in force. |
ENGAGEMENT WITH EMPLOYEES |
The group gives full consideration to applications for employment from disabled persons where the candidate’s particular aptitudes and abilities are consistent with adequately meeting the requirements of the job. Opportunities are available to disabled employees for training, career development and promotion. Where existing employees become disabled, it is the group’s policy to provide continuing employment wherever practicable in the same or an alternative position and to provide appropriate training to achieve this aim. |
The group operates a framework for employee information and consultation which complies with the requirements of the Information and Consultation of Employees Regulations 2004. During the year, the policy of providing employees with information about the group has been continued and employees have also been encouraged to present their suggestions and views on the group’s performance. Regular meetings are held between local management and employees to allow a free flow of information and ideas. |
DATAQUEST GROUP LIMITED (REGISTERED NUMBER: 04704549) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MARCH 2023 |
SECTION 172(1) STATEMENT |
The directors, in line with their duties under s172 of the Companies Act 2006, act individually and collectively in the way they consider, in good faith, would be most likely to promote the success of the group for the benefit of its member, and in doing so have regard, amongst other matters, to the: |
- Likely consequences of any decision in the long term |
- Interests of the company's employees |
- Need to foster the company's business relationships with suppliers, customers and others |
- Impact of the company's operations on the community and the environment |
- Desirability of the company maintaining a reputation for high standards of business conduct |
- Need to act fairly as between members of the company |
The directors' regard to these matters is embedded in their decision-making process, through the group's business strategy, culture, governance framework, management information flows and stakeholder engagement processes. |
The group's business strategy is focused on achieving success for the group in the long-term. In setting this strategy, the Board takes into account the impact of relevant factors and stakeholder interests on the group's performance. The Board also identifies principal risks facing the business and sets risk management objectives. |
The Board promotes a culture of upholding the highest standards of business conduct and regulatory conduct. The Board ensures these core values are communicated to the group's employees and embedded in the group's policies and procedures, employee induction and training programmes and its risk control and oversight framework. |
The Board recognises that building strong and lasting relationships with our stakeholders will help us to deliver our strategy in line with our long-term values, and operate a sustainable business. |
The directors are supported in the discharge of their duties by: |
- a director training programme to further their understanding of their duties and obligations under applicable law and regulation |
- processes which ensure the provision of timely management information and escalation through reporting lines to the Board from the company's business areas, its risk and control functions and support teams |
- agenda planning for Board meetings to provide sufficient time for the consideration and discussion of key matters. |
The Board supports the group's goals and initiatives with regard to reducing adverse impacts on the environment and supporting the communities that it touches. The Board intends to give further consideration in 2023/24 to the group's approach to climate change and further measures we can take to contribute to the reduction of our impact on the environment. |
After weighing up all relevant factors, the directors consider which course of action best enables delivery of our strategy through the long-term, taking into consideration the impact on stakeholders. In doing so, our directors act fairly as between the group's members but are not required to balance the group's interest with those of other stakeholders, and this can sometimes mean that certain stakeholder interests may not be fully aligned. |
Stakeholders |
The Board understands the importance of engagement with all of its stakeholders and gives appropriate weighting to the outcome of its decisions for the relevant stakeholder in weighing up how best to promote the success of the group. |
The Board regularly discusses issues concerning employees, clients, suppliers, community and environment, regulators and its shareholders, which it takes into account in its discussions and in its decision-making process. |
In addition to this, the Board seeks to understand the interests and views of the group’s stakeholders by engaging with them directly when required. The below summarises the key stakeholders and how we engage with each: |
DATAQUEST GROUP LIMITED (REGISTERED NUMBER: 04704549) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MARCH 2023 |
Stakeholders | Engagement |
Employees | Our employees contribute to a positive working culture and healthy working environment. Employees are key to the success of our business. In addition to aiming to be a responsible employer in our approach to pay and benefits, we continue to engage with our team to ascertain which training and development opportunities should be made available to improve our team’s productivity and our individual employees’ potential within the business.We continually invest in employee development and wellbeing to create and encourage an inclusive culture within the organisation. Our employee appraisal programme encourages employee feedback and facilities the opportunity for both employees and managers to set performance goals on an annual basis.Our culture invites different perspectives, new ideas and opportunities for growth. We work hard to ensure employees feel welcome and are valued and recognized for their hard work. |
Customers | Customers are at the centre of our business.Our customer service and sales teams build lasting relationships with current and potential customers to understand their objectives and requirements. We are in regular contact with customers in order to meet their defined reporting and service requirements. We have implemented a governance framework for the oversight of the provision of the group’s products and services to our customers. We take a consultative approach with customers focused on building long-term relationships and solving their investment challenges. |
Suppliers | Suppliers are our providers of Technology and are leaders in the IT industry supplying the products and services we need to create the right solutions for our customers. Success as an independent technology solutions provider depends on maintaining the right level of relationships with our suppliers. We engage with suppliers to ensure they comply with our code of conduct to maintain high standards of supply. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
DATAQUEST GROUP LIMITED (REGISTERED NUMBER: 04704549) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MARCH 2023 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, Orcom Civvals Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
DATAQUEST GROUP LIMITED |
Opinion |
We have audited the financial statements of Dataquest Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 March 2023 and of the group's loss for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Material uncertainty related to going concern |
We draw attention to note 3 to the financial statements concerning the parent company and the Group's ability to continue as a going concern and that the Group relies on continued support of its bankers. |
Despite, the parent company and the Group breaching their bank loan covenants, the bank continues to be supportive and has not taken any action in respect of the breaches at present. However, the bank has stated that it reserves its rights to take any action in the future that it deems appropriate in respect of any relevant defaults. It is anticipated that due to the increase in interest rates, there are likely to be covenant breaches in the next 12 month period and the non waiver by the bank of its rights under the loan facility, indicates a potential material uncertainty that may cast a significant doubt on the parent company and the Group's ability to continue as a going concern. |
Notwithstanding the loan covenant breaches, the bank has signalled its ongoing support of the company and the Group by extending the current loan facilities to 29 October 2025. |
Based on their assessment, the directors conclude that the company and the Group will have continued support from the bank and will have sufficient funds to meet their liabilities without compromising its working capital requirements during the going concern assessment period. |
In our evaluation of the directors' conclusion, subject to any potential effect of the matters identified above, we consider that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Our opinion is not modified in respect of this matter. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
DATAQUEST GROUP LIMITED |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page nine, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
DATAQUEST GROUP LIMITED |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to UK taxation, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to management override of controls. Audit procedures performed by the engagement team included: |
- Reviewing minutes of meetings of those charged with governance |
- Enquiry of management and those charged with governance around actual and potential litigation and claims; |
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations, and |
- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness and testing accounting estimates (because of the risk of management bias). |
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
DATAQUEST GROUP LIMITED |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants and |
Statutory Auditors |
50 Seymour Street |
London |
W1H 7JG |
DATAQUEST GROUP LIMITED (REGISTERED NUMBER: 04704549) |
CONSOLIDATED INCOME STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 39,935,548 | 33,781,984 |
Cost of sales | (25,684,356 | ) | (20,133,461 | ) |
GROSS PROFIT | 14,251,192 | 13,648,523 |
Distribution costs | - | (533 | ) |
Administrative expenses | (14,593,821 | ) | (14,965,451 | ) |
(342,629 | ) | (1,317,461 | ) |
Other operating income | - | 109,397 |
OPERATING LOSS | 5 | (342,629 | ) | (1,208,064 | ) |
Interest receivable and similar income | 2,770 | 4,569 |
(339,859 | ) | (1,203,495 | ) |
Interest payable and similar expenses | 6 | (624,679 | ) | (128,498 | ) |
LOSS BEFORE TAXATION | (964,538 | ) | (1,331,993 | ) |
Tax on loss | 7 | (204,224 | ) | (11,657 | ) |
LOSS FOR THE FINANCIAL YEAR | ( |
) | ( |
) |
Loss attributable to: |
Owners of the parent | (1,168,762 | ) | (1,343,650 | ) |
DATAQUEST GROUP LIMITED (REGISTERED NUMBER: 04704549) |
CONSOLIDATED OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 MARCH 2023 |
2023 | 2022 |
Notes | £ | £ |
LOSS FOR THE YEAR | (1,168,762 | ) | (1,343,650 | ) |
OTHER COMPREHENSIVE INCOME |
Purchase of own shares | 36 | - |
Income tax relating to other comprehensive income |
- |
- |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
36 |
- |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
(1,168,726 |
) |
(1,343,650 |
) |
Total comprehensive income attributable to: |
Owners of the parent | (1,168,726 | ) | (1,343,650 | ) |
DATAQUEST GROUP LIMITED (REGISTERED NUMBER: 04704549) |
CONSOLIDATED BALANCE SHEET |
31 MARCH 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 | 9,210,790 | 11,073,999 |
Tangible assets | 11 | 337,234 | 669,525 |
Investments | 12 | - | - |
9,548,024 | 11,743,524 |
CURRENT ASSETS |
Stocks | 13 | 730,171 | 883,826 |
Debtors | 14 | 8,383,505 | 8,246,197 |
Cash at bank and in hand | 2,860,039 | 5,135,819 |
11,973,715 | 14,265,842 |
CREDITORS |
Amounts falling due within one year | 15 | 11,466,616 | 11,965,979 |
NET CURRENT ASSETS | 507,099 | 2,299,863 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
10,055,123 |
14,043,387 |
CREDITORS |
Amounts falling due after more than one year |
16 |
(12,550,000 |
) |
(15,010,295 |
) |
PROVISIONS FOR LIABILITIES | 21 | (992 | ) | (28,954 | ) |
NET LIABILITIES | (2,495,869 | ) | (995,862 | ) |
CAPITAL AND RESERVES |
Called up share capital | 22 | 680 | 717 |
Capital redemption reserve | 23 | 277 | 240 |
Retained earnings | 23 | (2,496,826 | ) | (996,819 | ) |
SHAREHOLDERS' FUNDS | (2,495,869 | ) | (995,862 | ) |
The financial statements were approved by the Board of Directors and authorised for issue on 1 December 2023 and were signed on its behalf by: |
D S Larkin - Director |
DATAQUEST GROUP LIMITED (REGISTERED NUMBER: 04704549) |
COMPANY BALANCE SHEET |
31 MARCH 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
CURRENT ASSETS |
Stocks | 13 |
Debtors | 14 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT (LIABILITIES)/ASSETS | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
16 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 21 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 22 |
Capital redemption reserve | 23 |
Retained earnings | 23 |
SHAREHOLDERS' FUNDS |
Company's profit/(loss) for the financial year |
615,296 |
(2,022,451 |
) |
The financial statements were approved by the Board of Directors and authorised for issue on |
DATAQUEST GROUP LIMITED (REGISTERED NUMBER: 04704549) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 MARCH 2023 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 April 2021 | 717 | 682,187 | 240 | 683,144 |
Changes in equity |
Dividends | - | (335,356 | ) | - | (335,356 | ) |
Total comprehensive income | - | (1,343,650 | ) | - | (1,343,650 | ) |
Balance at 31 March 2022 | 717 | (996,819 | ) | 240 | (995,862 | ) |
Changes in equity |
Issue of share capital | (37 | ) | - | - | (37 | ) |
Dividends | - | (331,244 | ) | - | (331,244 | ) |
Total comprehensive income | - | (1,168,763 | ) | 37 | (1,168,726 | ) |
Balance at 31 March 2023 | 680 | (2,496,826 | ) | 277 | (2,495,869 | ) |
DATAQUEST GROUP LIMITED (REGISTERED NUMBER: 04704549) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 MARCH 2023 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 April 2021 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31 March 2022 |
Changes in equity |
Issue of share capital | ( |
) | - | - | ( |
) |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 March 2023 |
DATAQUEST GROUP LIMITED (REGISTERED NUMBER: 04704549) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 740,087 | (451,828 | ) |
Interest paid | (529,614 | ) | (470,257 | ) |
Interest element of finance lease payments paid |
(2,021 |
) |
(2,263 |
) |
Tax paid | 89,053 | (28,361 | ) |
Net cash from operating activities | 297,505 | (952,709 | ) |
Cash flows from investing activities |
Purchase of tangible fixed assets | (22,861 | ) | (191,470 | ) |
Interest received | 2,770 | 4,569 |
Net cash from investing activities | (20,091 | ) | (186,901 | ) |
Cash flows from financing activities |
Loan repayments in year | (1,950,000 | ) | - |
Repayment of deferred consideration | (250,000 | ) | (308,000 | ) |
Capital repayments in year | (11,217 | ) | (19,669 | ) |
Amount introduced by directors | - | 87,124 |
Amount withdrawn by directors | (10,732 | ) | - |
Share buyback | (1 | ) | - |
Equity dividends paid | (331,244 | ) | (335,356 | ) |
Net cash from financing activities | (2,553,194 | ) | (575,901 | ) |
Decrease in cash and cash equivalents | (2,275,780 | ) | (1,715,511 | ) |
Cash and cash equivalents at beginning of year |
2 |
5,135,819 |
6,851,330 |
Cash and cash equivalents at end of year |
2 |
2,860,039 |
5,135,819 |
DATAQUEST GROUP LIMITED (REGISTERED NUMBER: 04704549) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2023 |
1. | RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Loss before taxation | (964,538 | ) | (1,331,993 | ) |
Depreciation charges | 2,218,363 | 1,720,156 |
Finance costs | 624,679 | 128,498 |
Finance income | (2,770 | ) | (4,569 | ) |
1,875,734 | 512,092 |
Decrease/(increase) in stocks | 153,655 | (80,921 | ) |
Increase in trade and other debtors | (398,742 | ) | (1,480,621 | ) |
(Decrease)/increase in trade and other creditors | (890,560 | ) | 597,622 |
Cash generated from operations | 740,087 | (451,828 | ) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 March 2023 |
31/3/23 | 1/4/22 |
£ | £ |
Cash and cash equivalents | 2,860,039 | 5,135,819 |
Year ended 31 March 2022 |
31/3/22 | 1/4/21 |
£ | £ |
Cash and cash equivalents | 5,135,819 | 6,851,330 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1/4/22 | Cash flow | At 31/3/23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 5,135,819 | (2,275,780 | ) | 2,860,039 |
5,135,819 | (2,275,780 | ) | 2,860,039 |
Debt |
Finance leases | (21,512 | ) | 11,217 | (10,295 | ) |
Debts falling due within 1 year | - | (500,000 | ) | (500,000 | ) |
Debts falling due after 1 year | (15,000,000 | ) | 2,450,000 | (12,550,000 | ) |
(15,021,512 | ) | 1,961,217 | (13,060,295 | ) |
Total | (9,885,693 | ) | (314,563 | ) | (10,200,256 | ) |
DATAQUEST GROUP LIMITED (REGISTERED NUMBER: 04704549) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2023 |
1. | STATUTORY INFORMATION |
Dataquest Group Limited is a |
Dataquest Group Limited 'The company' is the parent undertaking of Dataquest Group Limited and its subsidiaries (together 'The group'). The parent undertaking is the largest and the smallest group for which consolidated accounts have been prepared. Copies of these accounts can be obtained from Companies House, Crown Way, Cardiff CF14 3UZ. |
The principal activity of the Group in the year under review was that of sale and maintenance of office equipment and related products. |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | STATEMENT OF COMPLIANCE |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
These financial statements have been prepared on a going concern basis, under the historical cost convention, as modified by the recognition of certain financial assets and liabilities measured at fair value. |
Going concern |
The parent company meets is day to day working capital through its own cash balances and funding from the Group. The parent company is part of the Group headed by Dataquest Group Limited ("The Group") and is party to a cross guarantee over the Group's funding facilities. The directors have therefore completed an assessment of the going concern based on the Group's position which is considered necessary as a result of the cross guarantee for a period of at least twelve months following the approval of each Group entity's financial statements (the going concern assessment period). |
In carrying out their duties in respect of going concern, the directors have reviewed the Group's cashflow forecasts, liquidity, borrowing facilities and related covenant requirements and the operational activities of the company and the Group. The company and the Group continue to have the backing of their shareholders and major stakeholders. The company and the Group, due to the unexpected rises in interest rates, have breached their bank loan covenants, however, the bank continues to be supportive and as a consequence have not taken any action at present. However, the bank has stated that it reserves its rights to take any action in the future that it deems appropriate in respect of any relevant defaults. |
Subsequent to the year end, the bank has agreed to extend the current loan facilities to 29 October 2025. |
The Group is in a net liability position as at the balance sheet date at the consolidated level. This is mainly due to the amortisation of the goodwill on consolidation, which is an accounting adjustment and does not affect the Group's cashflow or its working capital funding requirements. |
DATAQUEST GROUP LIMITED (REGISTERED NUMBER: 04704549) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
As such the directors anticipate that the company and the Group will have sufficient funds to meet their liabilities without compromising their working capital requirements for a period of 12 months from the date of signing these financial statements. |
The directors, therefore, consider that it is appropriate to prepare the accounts on a going concern basis. |
Basis of consolidation |
The group consolidated financial statements include the financial statements of the company and all of its subsidiary undertakings made up to 31 March. No profit and loss account is presented for Dataquest Group Limited as permitted by Section 408 of the Companies Act 2006. |
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. |
Where a subsidiary has different accounting policies to the group, adjustments are made to those subsidiary financial statements to apply the group’s accounting policies when preparing the consolidated financial statements. |
Any subsidiary undertakings sold or acquired during the period are included up to, or from, the dates of change of control. |
All intra-group transactions, balances, income and expenses are eliminated on consolidation. Adjustments are made to eliminate the profit or loss arising on transactions with associates to the extent of the group’s interest in the entity. |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
DATAQUEST GROUP LIMITED (REGISTERED NUMBER: 04704549) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
3. | ACCOUNTING POLICIES - continued |
Significant judgements and estimates |
The preparation of financial statements in conformity with FRS 102 requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The notes to the financial statements set out areas involving a higher degree of judgement, or areas where assumptions are significant to the group's reporting entity and its financial report such as: |
- useful economic lives of tangible assets |
- timing and amount of impairment of investment in subsidiaries, including reversal of impairment |
- the impairment of goodwill and other identifiable intangible assets |
- fair value of assets and liabilities |
- distinguishing between whether assets or a business is acquired under a business combination, particularly the determination of whether a substantive process exists that, together with an integrated set of activities and assets, significantly contributes to the ability to create an output |
- recoverability of tax receivables, deferred tax assets and measurement of current and deferred tax liabilities can require significant judgement, particularly where the recoverability of such tax balances relies on the estimation of future taxable profits and management's determination of the likelihood that uncertain tax positions will be accepted by the relevant taxation authority |
- the timing of derecognition of assets and liabilities following the disposal of an investment, including the measurement of the associated gain or loss |
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including reasonable expectations of future events. Management believes that the estimates used in preparing this financial statements are reasonable. Actual results in the future may differ from those reported and it is therefore reasonably possible, on the basis of existing knowledge, that outcomes within the next financial year that are different from management's assumptions and estimates could require an adjustment to the carrying amounts of the reported assets and liabilities in future reporting periods. |
DATAQUEST GROUP LIMITED (REGISTERED NUMBER: 04704549) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
3. | ACCOUNTING POLICIES - continued |
Revenue recognition |
Revenue is measured at the fair value of the consideration received or receivable and represents the amount receivable for goods supplied or services rendered, net of returns, discounts and rebates allowed by the group and value added taxes. |
The group recognises revenue when: |
(a) the significant risks and rewards of ownership have been transferred to the buyer; (b) the group retains no continuing involvement or control over the goods; |
(c) the amount of revenue can be measured reliably; |
(d) it is probable that future economic benefits will flow to the entity and |
(e) when the specific criteria relating to each of the company’s sales channels have been met, as described below. |
Turnover can be split into three main categories: |
- Sales |
- Service |
- Telecommunications |
Sales turnover is recognised when the significant risk and rewards of ownership of the goods has transferred to the buyer. This is usually the point at which the items have been delivered and installed. |
Service turnover is recognised in accordance with the contract. Contracts based on copies payable will contain agreed service charges based on usage and turnover is recognised based on consumption. Turnover for contracts containing a minimum quarterly charge is deferred and recognised in the period to which it relates. Revenue earned from the sale of maintenance vouchers is recognised as 50% at the point of invoice and 50% as the vouchers are redeemed and the group meets its contractual obligation by providing a service in return for each voucher. As the vouchers are invoiced in advance, revenue in respect of unused vouchers is included within deferred income. |
Telecommunications turnover is billed in arrears based on consumption and charged using rates in accordance with the contract. |
Business combinations and goodwill |
Business combinations are accounted for by applying the purchase method. |
The cost of a business combination is the fair value of the consideration given, liabilities incurred or assumed and of equity instruments issued plus the costs directly attributable to the business combination. Where control is achieved in stages the cost is the consideration at the date of each transaction. |
Contingent consideration is initially recognised at estimated amount where the consideration is probable and can be measured reliably. |
Where: |
(i) the contingent consideration is not considered probable or cannot be reliably measured but subsequently becomes probable and measurable or |
(ii) contingent consideration previously measured is adjusted, the amounts are recognised as an adjustment to the cost of the business combination. |
DATAQUEST GROUP LIMITED (REGISTERED NUMBER: 04704549) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
3. | ACCOUNTING POLICIES - continued |
On acquisition of a business, fair values are attributed to the identifiable assets, liabilities and contingent liabilities unless the fair value cannot be measured reliably, in which case the value is incorporated in goodwill. Intangible assets are only recognised separately from goodwill where they are separable and arise from contractual or other legal rights. Where the fair value of contingent liabilities cannot be reliably measured they are disclosed on the same basis as other contingent liabilities. |
Goodwill recognised represents the excess of the fair value and directly attributable costs of the purchase consideration over the fair values to the group’s interest in the identifiable net assets, liabilities and contingent liabilities acquired. |
Goodwill is amortised over its expected useful life which is estimated to be between five to ten years. Goodwill is assessed for impairment when there are indicators of impairment and any impairment is charged to the income statement. No reversals of impairment are recognised. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Software Development is being amortised evenly over its estimated useful life of 5 years. |
Where factors, such as technological advancement or changes in market price, indicate that the residual value or useful life have changed, the residual value, useful life or amortisation rate are amended prospectively to reflect the new circumstances. |
The assets are reviewed for impairment if the above factors indicate that the carrying amount may be impaired. |
Costs associated with maintaining computer software are recognised as an expense as incurred. Development costs that are directly attributable to the design and testing of identifiable and unique software products controlled by the group are recognised as intangible assets when the following criteria are met: |
- it is technically feasible to complete the software so that it will be available for use; |
- management intends to complete the software and use or sell it; |
- there is an ability to use or sell the software; |
- it can be demonstrated how the software will generate probable future economic benefits; |
- adequate technical, financial and other resources to complete the development and to use or sell the software are available; |
- the expenditure attributable to the software during its development can be reliably measured. |
Other development expenditures that do not meet these criteria are recognised as an expense as incurred. Development costs previously recognised as an expense are not recognised as an asset in a subsequent period. |
DATAQUEST GROUP LIMITED (REGISTERED NUMBER: 04704549) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
3. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Tangible fixed assets are stated at cost (or deemed cost) less accumulated depreciation and any accumulated impairment losses. Cost includes the original purchase price,costs directly attributable to bringing the asset to its working condition for its intended use, dismantling and restoration costs. |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. |
Fixtures and fittings | 25% on cost |
Computer equipment | 25% on cost |
Short leasehold | Over the term of the lease |
At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in profit or loss. |
If an impairment loss subsequently reverses, the carry amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss. |
Tangible assets are derecognised on disposal or when no future economic benefits are expected. On disposal, the difference between the net disposal proceeds and the carrying amount is recognised in profit or loss. |
Stocks |
Stocks are valued at the lower of cost and estimated selling price less costs to sell. They are recognised as an expense in the period in which the related revenue is recognised. |
The cost of these stock are measured by using the first-in, first-out (FIFO) cost formula and the same cost formula has been used for all stock items having a similar nature and use. Cost includes the purchase price, including taxes and duties and transport and handling directly attributable to bringing the inventory to its present location and condition. |
At the end of each reporting period stocks are assessed for impairment. If an item of stock is impaired, the identified stock is reduced to its selling price less costs to complete and sell and an impairment charge is recognised in the profit and loss account. Where a reversal of the impairment is required the impairment charge is reversed, up to the original impairment loss, and is recognised as a credit in the profit and loss account. |
DATAQUEST GROUP LIMITED (REGISTERED NUMBER: 04704549) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
3. | ACCOUNTING POLICIES - continued |
Financial instruments |
The group has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments. |
i) Financial assets |
Basic financial assets, including trade and other receivables, cash and bank balances and investments in commercial paper, are initially recognised at transaction price, 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. |
Such assets are subsequently carried at amortised cost using the effective interest method. |
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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. |
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. |
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled; or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party; or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. |
ii) Financial liabilities |
Basic financial liabilities, including trade and other payables, 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. |
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates. |
DATAQUEST GROUP LIMITED (REGISTERED NUMBER: 04704549) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
3. | ACCOUNTING POLICIES - continued |
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. |
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. |
iii) Accounting of interest rate swaps |
To manage interest rate risk, the company manages its fixed rate borrowings by utilising interest rate swap agreement. Amounts payable and receivable in respect of this agreement is recognised as adjustments to interest payable over the period of the agreement. This derivative financial instrument is initially recognised at fair value as at the date of the agreement and is subsequently re-measured at fair value at the year end. This financial instrument is carried as an asset when the fair value is positive and as a liability when the fair value is negative. |
The change in fair value of this hedging derivative is recognised in the income statement. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
DATAQUEST GROUP LIMITED (REGISTERED NUMBER: 04704549) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
3. | ACCOUNTING POLICIES - continued |
Leases |
At inception the group assesses agreements that transfer the right to use assets. The assessment considers whether the arrangement is, or contains, a lease based on the substance of the arrangement. |
i) Finance leased assets |
Leases of assets that transfer substantially all the risks and rewards incidental to ownership are classified as finance leases. |
Finance leases are capitalised at commencement of the lease as assets at the fair value of the leased asset or, if lower, the present value of the minimum lease payments calculated using the interest rate implicit in the lease. Where the implicit rate cannot be determined, the group’s incremental borrowing rate is used. |
Incremental direct costs, incurred in negotiating and arranging the lease, are included in the cost of the asset. |
Assets are depreciated over the shorter of the lease term and the estimated useful life of the asset. Assets are assessed for impairment at each reporting date. |
The capital element of lease obligations is recorded as a liability on inception of the arrangement. Lease payments are apportioned between capital repayment and finance charge, using the effective interest rate method, to produce a constant rate of charge on the balance of the capital repayments outstanding. |
ii) Operating leased assets |
Leases that do not transfer all the risks and rewards of ownership are classified as operating leases. Payments under operating leases are charged to the profit and loss account on a straight-line basis over the period of the lease. |
iii) Lease incentives |
Incentives received to enter into an operating lease are credited to the profit and loss account, to reduce the lease expense, on a straight-line basis over the period of the lease. |
DATAQUEST GROUP LIMITED (REGISTERED NUMBER: 04704549) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
3. | ACCOUNTING POLICIES - continued |
Employee benefits |
The group provides the following: |
i) Defined pension contribution plans |
The company operates a defined contribution plans for its employees. A defined contribution plan is a pension plan under which the group pays fixed contributions into a separate entity. Once the contributions have been paid the group has no further payment obligations. The contributions are recognised as an expense when they are due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the group in independently administered funds. |
ii) Share-based payments |
The company provides share-based payment arrangements to certain employees. |
Equity-settled arrangements are measured at fair value (excluding the effect of nonmarket based vesting conditions) at the date of the grant. The fair value is expensed on a straight-line basis over the vesting period. The amount recognised as an expense is adjusted to reflect the actual number of shares or options that will vest. |
Where equity-settled arrangements are modified, and are of benefit to the employee, the incremental fair value is recognised over the period from the date of modification to date of vesting. Where a modification is not beneficial to the employee there is no change to the charge for share-based payment. Settlements and cancellations are treated as an acceleration of vesting and the unvested amount is recognised immediately in the income statement. |
Debtors |
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment. |
Creditors |
Short term trade creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method. |
Cash and cash equivalents |
Cash and cash equivalents includes cash in hand, deposits held at call with banks. Bank overdrafts, when applicable, are shown within borrowings in current liabilities. |
4. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 9,419,893 | 9,930,258 |
Social security costs | 1,080,894 | 1,081,760 |
Other pension costs | 213,721 | 203,593 |
10,714,508 | 11,215,611 |
DATAQUEST GROUP LIMITED (REGISTERED NUMBER: 04704549) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
4. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
2023 | 2022 |
Head office | 31 | 35 |
Sales | 42 | 45 |
Project management | 8 | 8 |
IT | 73 | 90 |
Service | 43 | 44 |
Communications | 4 | 4 |
2023 | 2022 |
£ | £ |
Directors' remuneration | 291,946 | 415,202 |
Directors' pension contributions to money purchase schemes | 11,475 | (562 | ) |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 2 | 2 |
Information regarding the highest paid director is as follows: |
2023 | 2022 |
£ | £ |
Emoluments etc | 260,106 | 255,916 |
Pension contributions to money purchase schemes | 10,275 | 10,119 |
5. | OPERATING LOSS |
The operating loss is stated after charging: |
2023 | 2022 |
£ | £ |
Other operating leases | 978,823 | 968,093 |
Depreciation - owned assets | 355,152 | 500,226 |
Goodwill amortisation | 1,825,663 | 1,182,384 |
Computer software amortisation | 37,546 | 37,546 |
Audit fees | 21,000 | 20,000 |
Audit fees of subsidiaries | 30,386 | 22,000 |
Auditors' remuneration for non-audit work - Other services | 54,200 | 44,800 |
Auditors' remuneration for non-audit work - taxation | 1,000 | 1,000 |
DATAQUEST GROUP LIMITED (REGISTERED NUMBER: 04704549) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank loan interest | 529,359 | 470,010 |
Other interest | 255 | 247 |
Unwinding of discount | - | (44,705 | ) |
Fair value movement in |
financial instrument (asset)/ |
liability | 93,044 | (299,317 | ) |
Leasing | 2,021 | 2,263 |
624,679 | 128,498 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the loss for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | 232,186 | 34,416 |
Deferred tax | (27,962 | ) | (22,759 | ) |
Tax on loss | 204,224 | 11,657 |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Loss before tax | (964,538 | ) | (1,331,993 | ) |
Loss multiplied by the standard rate of corporation tax in the UK of 19 % (2022 - 19 %) |
(183,262 |
) |
(253,079 |
) |
Effects of: |
Expenses not deductible for tax purposes | 21,629 | 27,986 |
Depreciation in excess of capital allowances | 44,113 | 26,178 |
Amortisation on asset not qualifying for tax allowances | 354,010 | 231,787 |
Deferred tax | (27,962 | ) | (22,759 | ) |
Taxed at (lower)/higher rate | (4,304 | ) | 1,544 |
Total tax charge | 204,224 | 11,657 |
DATAQUEST GROUP LIMITED (REGISTERED NUMBER: 04704549) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
7. | TAXATION - continued |
Tax effects relating to effects of other comprehensive | income |
2023 |
Gross | Tax | Net |
£ | £ | £ |
Purchase of own shares | 36 | - | 36 |
8. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
9. | DIVIDENDS |
Total dividends of £331,244 (2022: £335,356) have been paid for the year ended 31 March 2023. |
10. | INTANGIBLE FIXED ASSETS |
Group |
Computer |
Goodwill | software | Totals |
£ | £ | £ |
COST |
At 1 April 2022 |
and 31 March 2023 | 20,774,764 | 187,729 | 20,962,493 |
AMORTISATION |
At 1 April 2022 | 9,838,433 | 50,061 | 9,888,494 |
Amortisation for year | 1,825,663 | 37,546 | 1,863,209 |
At 31 March 2023 | 11,664,096 | 87,607 | 11,751,703 |
NET BOOK VALUE |
At 31 March 2023 | 9,110,668 | 100,122 | 9,210,790 |
At 31 March 2022 | 10,936,331 | 137,668 | 11,073,999 |
DATAQUEST GROUP LIMITED (REGISTERED NUMBER: 04704549) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
11. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Short | and | Computer |
leasehold | Photocopiers | fittings | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 April 2022 | 676,879 | 1,331,241 | 729,364 | 1,326,507 | 4,063,991 |
Additions | - | - | 19,481 | 3,380 | 22,861 |
At 31 March 2023 | 676,879 | 1,331,241 | 748,845 | 1,329,887 | 4,086,852 |
DEPRECIATION |
At 1 April 2022 | 420,488 | 1,331,241 | 583,149 | 1,059,588 | 3,394,466 |
Charge for year | 135,840 | - | 74,501 | 144,811 | 355,152 |
At 31 March 2023 | 556,328 | 1,331,241 | 657,650 | 1,204,399 | 3,749,618 |
NET BOOK VALUE |
At 31 March 2023 | 120,551 | - | 91,195 | 125,488 | 337,234 |
At 31 March 2022 | 256,391 | - | 146,215 | 266,919 | 669,525 |
Company |
Fixtures |
Short | and | Computer |
leasehold | fittings | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 April 2022 |
Additions |
At 31 March 2023 |
DEPRECIATION |
At 1 April 2022 |
Charge for year |
At 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
DATAQUEST GROUP LIMITED (REGISTERED NUMBER: 04704549) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
12. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST OR VALUATION |
At 1 April 2022 |
and 31 March 2023 |
PROVISIONS |
At 1 April 2022 |
and 31 March 2023 | 2,900,000 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
Cost or valuation at 31 March 2023 is represented by: |
Shares in |
group |
undertakings |
£ |
Cost | 19,151,176 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: 24 Chiswell Street, London EC1Y 4TY, United Kingdom |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
DATAQUEST GROUP LIMITED (REGISTERED NUMBER: 04704549) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
12. | FIXED ASSET INVESTMENTS - continued |
Registered office: 24 Chiswell Street, London EC1Y 4TY, United Kingdom |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
Registered office: 24 Chiswell Street, London EC1Y 4TY, United Kingdom |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Registered office: 4834 TM Breda, Allerheiligenweg 1 Netherlands |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
13. | STOCKS |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Stocks | 730,171 | 883,826 |
DATAQUEST GROUP LIMITED (REGISTERED NUMBER: 04704549) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade debtors | 5,459,341 | 4,992,995 |
Amounts owed by group undertakings | - | - |
Other debtors | 201,808 | 72,976 |
Derivative financial |
instrument asset | 110,753 | 203,797 | 110,753 | 203,797 |
Directors' current accounts | 10,723 | - | 10,723 | - |
Corporation tax recoverable | - | 179,111 |
Prepayments | 2,049,547 | 2,528,680 |
Accrued income | 551,333 | 268,638 | 239,683 | 142,524 |
8,383,505 | 8,246,197 |
Amounts owed by group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand. |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 17) | 500,000 |
- |
Finance leases (see note 18) | 10,295 | 11,217 |
Trade creditors | 3,711,705 | 3,040,567 |
Amounts owed to group undertakings | - | - |
Tax | 236,000 | 93,872 |
Social security and other taxes | 334,440 | 390,381 |
VAT | 868,357 | 1,423,288 | 512,150 | 680,953 |
Other creditors | 129,554 | 137,856 |
Directors' current accounts | - | 9 | - | 9 |
Accruals and deferred income | 5,676,265 | 6,618,789 |
Deferred consideration | - | 250,000 | - | 250,000 |
11,466,616 | 11,965,979 |
Amounts owed to group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand. |
DATAQUEST GROUP LIMITED (REGISTERED NUMBER: 04704549) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans (see note 17) | 12,550,000 | 15,000,000 |
Finance leases (see note 18) | - | 10,295 |
12,550,000 | 15,010,295 |
17. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Amounts falling due within one year | or on demand: |
Bank loans | 500,000 | - |
Amounts falling due between two and | five years: |
Bank loans - 2-5 years | 12,550,000 | 15,000,000 |
DATAQUEST GROUP LIMITED (REGISTERED NUMBER: 04704549) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
18. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Finance leases |
2023 | 2022 |
£ | £ |
Gross obligations repayable: |
Within one year | 12,134 | 13,238 |
Between one and five years | - | 12,134 |
12,134 | 25,372 |
Finance charges repayable: |
Within one year | 1,839 | 2,021 |
Between one and five years | - | 1,839 |
1,839 | 3,860 |
Net obligations repayable: |
Within one year | 10,295 | 11,217 |
Between one and five years | - | 10,295 |
10,295 | 21,512 |
Group |
Non-cancellable | operating leases |
2023 | 2022 |
£ | £ |
Within one year | 607,343 | 921,508 |
Between one and five years | 182,964 | 772,401 |
790,307 | 1,693,909 |
Company |
Non-cancellable | operating leases |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
DATAQUEST GROUP LIMITED (REGISTERED NUMBER: 04704549) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
19. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans | 13,050,000 | 15,000,000 |
Deferred consideration | - | 250,000 | - | 250,000 |
13,050,000 | 15,250,000 |
The above interest bearing bank loan and deferred consideration are secured by fixed and floating charges over the assets of the company and its subsidiary undertakings. |
20. | FINANCIAL INSTRUMENTS |
The group has the following financial instruments: |
Note | 2023 | 2022 |
£ | £ |
Financial assets at fair value through profit or loss | - | - |
Financial assets that are debt instruments measured at amortised |
- Trade receivables | 14 | 5,466,518 | 4,992,995 |
- Other debtors | 14 | 194,631 | 72,976 |
5,661,149 | 5,065,971 |
Financial liabilities measured at fair value through profit or loss |
- Deferred consideration | 15,16 | - | 250,000 |
- Derivative financial instruments | 15,16 | - | - |
- | 250,000 |
Financial liabilities measured at amortised cost |
- Bank loans and overdrafts | 15,16 | 13,050,000 | 15,000,000 |
- Trade creditors | 15 | 3,711,705 | 3,040,567 |
- Other creditors | 15 | 144,040 | 137,856 |
16,905,745 | 18,178,423 |
DATAQUEST GROUP LIMITED (REGISTERED NUMBER: 04704549) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
21. | PROVISIONS FOR LIABILITIES |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Deferred tax | 992 | 28,954 | 992 | 28,954 |
Group |
Deferred |
tax |
£ |
Balance at 1 April 2022 | 28,954 |
Credit to Income Statement during year | (27,962 | ) |
Balance at 31 March 2023 | 992 |
Company |
Deferred |
tax |
£ |
Balance at 1 April 2022 |
Credit to Income Statement during year | ( |
) |
Balance at 31 March 2023 |
22. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
A Ordinary | 1p | 510 | 510 |
15,000 | B Ordinary | 1p | 150 | 150 |
2,000 | C Growth | 1p | 20 | 20 |
NIL | E Ordinary | 1p | - | 26 |
NIL | Deferred shares | 1p | - | 11 |
(2022 - 1,142) |
680 | 717 |
DATAQUEST GROUP LIMITED (REGISTERED NUMBER: 04704549) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
22. | CALLED UP SHARE CAPITAL - continued |
A Ordinary and B Ordinary shares have full rights in the company with respect to voting and dividend. They are also entitled to 40% of the capital distribution in excess of £20,000,000 after deducting capital distribution for E Ordinary shares. |
C Growth shares are entitled to 60% of the capital distribution in excess of £20,000,000 after deducting capital distribution for E Ordinary shares. |
E Ordinary shares have full rights in the company in respect to voting and dividend. It has a capital distribution rights in amounts in excess of £1,150,000. |
Deferred shares have no right to vote, no right to distributions or other dividends and may be bought back by the company in aggregate for £1 without obtaining the sanction of the holder at any time. |
On 21/12/22, an ordinary resolution was passed to redesignate each of the 2,595 issued E Ordinary shares as a Deferred share of £0.01 and the company to buyback all the 3,737 deferred shares of £0.01 each for a total consideration of £1. |
23. | RESERVES |
Group |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1 April 2022 | (996,819 | ) | 240 | (996,579 | ) |
Deficit for the year | (1,168,762 | ) | (1,168,762 | ) |
Dividends | (331,244 | ) | (331,244 | ) |
Purchase of own shares | (1 | ) | 37 | 36 |
At 31 March 2023 | (2,496,826 | ) | 277 | (2,496,549 | ) |
Company |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1 April 2022 | 3,144,604 |
Profit for the year |
Dividends | ( |
) | ( |
) |
Purchase of own shares | (1 | ) | 37 | 36 |
At 31 March 2023 | 3,428,692 |
DATAQUEST GROUP LIMITED (REGISTERED NUMBER: 04704549) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
24. | PENSION COMMITMENTS |
2022 | 2021 |
Defined contribution schemes | £ | £ |
Charge to profit or loss in respect of defined contribution schemes |
203,593 |
283,977 |
The group 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. |
25. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to directors subsisted during the years ended 31 March 2023 and 31 March 2022: |
2023 | 2022 |
£ | £ |
D R Jones |
Balance outstanding at start of year | - | - |
Amounts advanced | 1,574 | - |
Amounts repaid | - | - |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | 1,574 | - |
G Young |
Balance outstanding at start of year | (9 | ) | 87,115 |
Amounts advanced | 9,148 | - |
Amounts repaid | - | (87,124 | ) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | 9,139 | (9 | ) |
The balance on the directors' loan accounts will be repaid within 9 months of the end of the accounting period. |
26. | RELATED PARTY DISCLOSURES |
During the year, dividends of £331,244 (2022: £335,356) were paid to the directors and their wives. |
27. | POST BALANCE SHEET EVENTS |
The bank has agreed to extend the maturity date of its loan facility by another 12 months to 29 October 2025. |
There were no other material events subsequent to 31 March 2023 and up until the authorisation of the financial statements for issue, that have not been disclosed elsewhere in the financial statements. |
DATAQUEST GROUP LIMITED (REGISTERED NUMBER: 04704549) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
28. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party throughout the year was G Young by virtue of his majority shareholdings. |
29. | SHARE-BASED PAYMENT TRANSACTIONS |
The group operates a Key-employee share option scheme which provides additional remuneration for those employees who are key to the operations of the company. The options granted will be for unissued D ordinary shares with an exercise price equalling the nominal value of the shares, are exercisable at the earliest of the occurrence of an exit event after the date of grant which was 12 December 2018 and expire ten years after the date of grant. Employees are not entitled to dividends until the shares are exercised. Vesting of the options is subject to continued employment within the group and meeting agreed revenue targets (non-market performance conditions). The group did not make any grants in the year to 31 March 2023. |
A reconciliation of the share option movements over the period to 31 March 2023 is shown below: |
Weighted average exercise price |
Number | £ |
Outstanding at 1 April 2022 | 4,208 | 25.43 |
Granted | Nil | - |
Forfeited | (526 | ) | - |
Exercised | Nil | - |
Expired | Nil | - |
Outstanding at 31 March 2023 | 3,682 | 25.43 |
Exercisable at 31 March 2023 | 3,682 | 25.43 |