REGISTERED NUMBER: 04340742 (England and Wales) |
Scarlet Group Limited |
Group Strategic Report, |
Directors' Report and |
Consolidated Financial Statements |
for the Year Ended 31 May 2023 |
REGISTERED NUMBER: 04340742 (England and Wales) |
Scarlet Group Limited |
Group Strategic Report, |
Directors' Report and |
Consolidated Financial Statements |
for the Year Ended 31 May 2023 |
Scarlet Group Limited (Registered number: 04340742) |
Contents of the Consolidated Financial Statements |
for the year ended 31 May 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Directors' Report | 3 |
Independent Auditors' Report | 5 |
Consolidated Statement of Comprehensive Income | 8 |
Consolidated Balance Sheet | 9 |
Company Balance Sheet | 10 |
Consolidated Statement of Changes in Equity | 11 |
Company Statement of Changes in Equity | 12 |
Consolidated Cash Flow Statement | 13 |
Notes to the Consolidated Financial Statements | 14 |
Scarlet Group Limited |
Company Information |
for the year ended 31 May 2023 |
Directors: |
Registered office: |
Registered number: |
Auditors: |
Statutory Auditor |
178 Buckingham Avenue |
Slough |
Berkshire |
SL1 4RD |
Scarlet Group Limited (Registered number: 04340742) |
Group Strategic Report |
for the year ended 31 May 2023 |
The directors present their strategic report for the year ended 31 May 2023. |
Principal activity |
The principal activity of the company is that of a holding company for three subsidiaries whose principal activities are courier, parcel and pallet delivery services, warehousing and fulfilment. |
Fair review of the business |
The group consists of three trading subsidiaries that operate from 4 depots in the UK. The group continues to work closely with The Alternative Parcel Company Limited (APC) and The Pallet Network Ltd (TPN), the delivery network providers. |
Whilst turnover has decreased slightly compared to 2022, gross margin is 1% higher at 22%. |
The group's key financial and other performance indicators during the year were as follows: |
Unit | 2023 | 2022 |
Turnover | £ | 17,418,742 | 14,885,584 |
Gross Profit | £ | 3,848,554 | 3,697,535 |
Gross Profit Margin | % | 22 | 21 |
Principal risks and uncertainties |
The Directors have reviewed the industry in which the company operates and consider that there are no significant risks and uncertainties that need disclosing within this report. For this reason, they continue to adopt the going concern basis in preparing the financial statements. |
The recent rise in inflation and a recessionary economic outlook leaves us operating in a challenging business environment. Our continued focus on costs and operating efficiency along with a resilient and varied customer base ensures we are well positioned to maintain profitability. We continue to explore diversification opportunities with new and existing clients. |
On behalf of the board: |
Scarlet Group Limited (Registered number: 04340742) |
Directors' Report |
for the year ended 31 May 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 May 2023. |
Principal activity |
The principal activity of the group in the year under review was that of a holding company for a subsidiary whose principal activity was that of a courier and express delivery service. |
Dividends |
An interim dividend of 3p per share was paid on 5 April 2023. The directors recommend that no final dividend be paid. |
The total distribution of dividends for the year ended 31 May 2023 will be £ 3,000 . |
Directors |
The directors shown below have held office during the whole of the period from 1 June 2022 to the date of this report. |
Statement of directors' responsibilities |
The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and 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; |
- | 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. |
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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
Scarlet Group Limited (Registered number: 04340742) |
Directors' Report |
for the year ended 31 May 2023 |
Auditors |
Reappointment of auditor |
The audit business of Haines Watts Farnborough LLP was acquired by Cooper Parry Limited on 14 November 2023. Haines Watts Farnborough LLP has resigned as auditor and Cooper Parry Group Limited has been appointed in its place. |
The auditors, Cooper Parry Group Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
On behalf of the board: |
Independent Auditors' Report to the Members of |
Scarlet Group Limited |
Opinion |
We have audited the financial statements of Scarlet Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 May 2023 which comprise the Consolidated Statement of 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 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 May 2023 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Directors' Report, but does not include the financial statements and our Auditors' Report thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements. |
Independent Auditors' Report to the Members of |
Scarlet Group Limited |
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 Directors' Report. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept 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, 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. |
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 an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We discussed with the Directors the policies and procedures in place regarding compliance with laws and regulations. We discussed amongst the audit team the identified laws and regulations, and remained alert to any indications of non-compliance. |
During the audit we focussed on laws and regulations which could reasonably be expected to give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management. |
Our procedures in relation to fraud included but were not limited to: inquires of management whether they have any knowledge of any actual, suspected or alleged fraud, and discussions amongst the audit team regarding risk of fraud such as opportunities for fraudulent manipulation of financial statements. We determined that the principal risks related to posting manual journal entries to manipulate financial performance and management bias through judgements in accounting estimates. We also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud. |
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
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 Auditors' Report. |
Independent Auditors' Report to the Members of |
Scarlet 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 an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Statutory Auditor |
178 Buckingham Avenue |
Slough |
Berkshire |
SL1 4RD |
Scarlet Group Limited (Registered number: 04340742) |
Consolidated |
Statement of Comprehensive |
Income |
for the year ended 31 May 2023 |
2023 | 2022 |
Notes | £ | £ |
Turnover | 17,418,742 | 14,885,584 |
Cost of sales | (13,570,189 | ) | (11,188,049 | ) |
Gross profit | 3,848,553 | 3,697,535 |
Administrative expenses | (3,563,234 | ) | (3,461,840 | ) |
Operating profit | 285,319 | 235,695 |
Interest payable and similar expenses | 5 | (26,190 | ) | (19,388 | ) |
Profit before taxation | 6 | 259,129 | 216,307 |
Tax on profit | 7 | (46,883 | ) | (43,634 | ) |
Profit for the financial year |
Other comprehensive income | - | - |
Total comprehensive income for the year | 212,246 | 172,673 |
Profit attributable to: |
Owners of the parent | 212,246 | 172,673 |
Total comprehensive income attributable to: |
Owners of the parent | 212,246 | 172,673 |
Scarlet Group Limited (Registered number: 04340742) |
Consolidated Balance Sheet |
31 May 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
Fixed assets |
Intangible assets | 10 | - | - |
Tangible assets | 11 | 390,966 | 274,674 |
Investments | 12 | - | - |
390,966 | 274,674 |
Current assets |
Debtors | 13 | 2,689,476 | 3,249,972 |
Cash in hand | 74,110 | 18,755 |
2,763,586 | 3,268,727 |
Creditors |
Amounts falling due within one year | 14 | 2,170,439 | 2,793,101 |
Net current assets | 593,147 | 475,626 |
Total assets less current liabilities | 984,113 | 750,300 |
Creditors |
Amounts falling due after more than one year |
15 |
(100,000 |
) |
(150,761 |
) |
Provisions for liabilities | 19 | (317,323 | ) | (241,995 | ) |
Net assets | 566,790 | 357,544 |
Capital and reserves |
Called up share capital | 20 | 100 | 100 |
Retained earnings | 21 | 566,690 | 357,444 |
Shareholders' funds | 566,790 | 357,544 |
The financial statements were approved by the Board of Directors and authorised for issue on 25 January 2024 and were signed on its behalf by: |
L J Parsons - Director |
Scarlet Group Limited (Registered number: 04340742) |
Company Balance Sheet |
31 May 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
Fixed assets |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
Creditors |
Amounts falling due within one year | 14 |
Net current liabilities | ( |
) | ( |
) |
Total assets less current liabilities |
Capital and reserves |
Called up share capital | 20 |
Retained earnings | 21 |
Shareholders' funds |
Company's profit for the financial year | 3,000 | - |
The financial statements were approved by the Board of Directors and authorised for issue on |
Scarlet Group Limited (Registered number: 04340742) |
Consolidated Statement of Changes in Equity |
for the year ended 31 May 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 June 2021 | 100 | 184,771 | 184,871 |
Changes in equity |
Total comprehensive income | - | 172,673 | 172,673 |
Balance at 31 May 2022 | 100 | 357,444 | 357,544 |
Changes in equity |
Dividends | - | (3,000 | ) | (3,000 | ) |
Total comprehensive income | - | 212,246 | 212,246 |
Balance at 31 May 2023 | 100 | 566,690 | 566,790 |
Scarlet Group Limited (Registered number: 04340742) |
Company Statement of Changes in Equity |
for the year ended 31 May 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 June 2021 |
Changes in equity |
Balance at 31 May 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 May 2023 |
Scarlet Group Limited (Registered number: 04340742) |
Consolidated Cash Flow Statement |
for the year ended 31 May 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 25 | 429,911 | 206,379 |
Interest paid | (26,190 | ) | (19,388 | ) |
Tax paid | (46,439 | ) | (44,044 | ) |
Net cash from operating activities | 357,282 | 142,947 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (219,349 | ) | (77,453 | ) |
Sale of tangible fixed assets | 8,167 | - |
Net cash from investing activities | (211,182 | ) | (77,453 | ) |
Cash flows from financing activities |
Loan repayments in year | (50,000 | ) | (50,000 | ) |
Capital repayments in year | (37,745 | ) | (9,171 | ) |
Equity dividends paid | (3,000 | ) | - |
Net cash from financing activities | (90,745 | ) | (59,171 | ) |
Increase in cash and cash equivalents | 55,355 | 6,323 |
Cash and cash equivalents at beginning of year |
26 |
18,755 |
12,432 |
Cash and cash equivalents at end of year | 26 | 74,110 | 18,755 |
Scarlet Group Limited (Registered number: 04340742) |
Notes to the Consolidated Financial Statements |
for the year ended 31 May 2023 |
1. | Statutory information |
Scarlet Group Limited is a |
2. | Accounting policies |
Basis of preparing the financial statements |
The financial statements are prepared in sterling which is the functional currency of the company and rounded to the nearest pound. |
Going concern |
The financial statements have been prepared on a going concern basis. The Directors have reviewed and considered relevant information, including the annual budget and future cash flows in making their assessment. Based on these assessments and the current resources available, the Directors have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts. |
Basis of consolidation |
The financial statements consolidate the accounts of Scarlet Group Limited and all of its subsidiary undertakings ('subsidiaries'). |
Significant judgements and estimates |
The preparation of financial statements in conformity with generally accepted accounting practice requires management to make estimates and judgement that affect the reported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reporting period. |
The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates and the physical condition of the assets. |
There is estimation uncertainty in calculating bad debt provisions. A full line by line review of trade debtors is carried out at the end of each month. Whilst every attempt is made to ensure that the bad debt provisions are as accurate as possible, there remains a risk that the provision do not match the level of debts which ultimately prove to be uncollectable. |
There is also estimation uncertainty in calculating deferred tax liability due to temporary timing differences. Unrelieved tax losses and other deferred tax assets are only 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. |
Turnover |
Turnover represents amounts receivable for services provided in the year and is stated net of VAT. Turnover is recognised once the service has been provided. |
Goodwill |
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company's interest in the net fair value of the identifiable assets, liabilities, contingent liabilities of the entity recognised at the date of acquisition. Goodwill is recongised as an intangible asset at cost less accumulated amortisation and accumulated impairment loss. |
Goodwill is amortised over its useful life of 6 and 7.5 years. |
Scarlet Group Limited (Registered number: 04340742) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 May 2023 |
2. | Accounting policies - continued |
Tangible fixed assets |
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases: |
Short-term leasehold | - Over the lease term |
Motor vehicles | - 20-25% straight line |
Office equipment | - 20-25% straight line |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Financial instruments |
Financial assets and financial liabilities are recognised in the balance sheet when the company becomes a party to the contractual provisions of the instrument. |
Trade and other debtors and creditors are classified as basic financial instruments and measured at initial recognition at transaction price. Debtors and creditors are subsequently measured at amortised cost using the effective interest rate method. A provision is established when there is objective evidence that the company will not be able to collect all amounts due. |
Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank and bank overdrafts which are an integral part of the company's cash management. |
Financial liabilities and equity instruments issued by the company are classified in accordance with the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. |
Dilapidation costs of leased premises |
The provision for dilapidations represents the current estimated costs of repairs to leased properties required prior to properties being returned at the end of the leases. |
Investments in subsidiaries |
Investments in subsidiaries are held at cost less provision for impairment. |
3. | Employees and directors |
2023 | 2022 |
£ | £ |
Wages and salaries | 2,635,431 | 2,864,866 |
Social security costs | 365,046 | 268,740 |
Other pension costs | 74,323 | 59,107 |
3,074,800 | 3,192,713 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Management | 7 | 7 |
Administration | 5 | 5 |
Sales | 5 | 5 |
Operational direct | 42 | 46 |
Operational indirect | 30 | 34 |
The average number of employees by undertakings that were proportionately consolidated during the year was 89 (2022 - 97 ) . |
Scarlet Group Limited (Registered number: 04340742) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 May 2023 |
4. | Directors' emoluments |
2023 | 2022 |
£ | £ |
Directors' remuneration | 668,868 | 649,628 |
Directors' pension contributions to money purchase schemes | 18,197 | 9,448 |
Information regarding the highest paid director is as follows: |
2023 | 2022 |
£ | £ |
Emoluments etc | 177,481 | 174,840 |
Pension contributions to money purchase schemes | - | 1,210 |
During the year retirement benefits were accruing to seven directors (2022 - seven) in respect of defined contribution pension schemes. |
Key management personnel |
No one other than the directors are deemed to be key management personnel. |
5. | Interest payable and similar expenses |
2023 | 2022 |
£ | £ |
Bank interest | 16,637 | 13,232 |
Bank loan interest | 1,736 | 1,736 |
Interest payable | 7,817 | 4,420 |
26,190 | 19,388 |
6. | Profit before taxation |
The profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Depreciation - owned assets | 95,557 | 57,311 |
Profit on disposal of fixed assets | (667 | ) | - |
Goodwill amortisation | - | 17,082 |
Auditors' remuneration | 25,250 | 24,132 |
7. | Taxation |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | 36,063 | 46,439 |
Deferred tax | 10,820 | (2,805 | ) |
Tax on profit | 46,883 | 43,634 |
8. | Individual statement of comprehensive income |
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. |
Scarlet Group Limited (Registered number: 04340742) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 May 2023 |
9. | Dividends |
2023 | 2022 |
£ | £ |
Interim | 3,000 | - |
10. | Intangible fixed assets |
Group |
Goodwill |
£ |
Cost |
At 1 June 2022 |
and 31 May 2023 | 256,250 |
Amortisation |
At 1 June 2022 |
and 31 May 2023 | 256,250 |
Net book value |
At 31 May 2023 | - |
At 31 May 2022 | - |
11. | Tangible fixed assets |
Group |
Short | Motor | Office |
leasehold | vehicles | equipment | Totals |
£ | £ | £ | £ |
Cost |
At 1 June 2022 | 22,451 | 72,935 | 357,388 | 452,774 |
Additions | - | 203,782 | 15,567 | 219,349 |
Disposals | - | (8,000 | ) | - | (8,000 | ) |
At 31 May 2023 | 22,451 | 268,717 | 372,955 | 664,123 |
Depreciation |
At 1 June 2022 | 15,341 | 29,371 | 133,388 | 178,100 |
Charge for year | - | 50,021 | 45,536 | 95,557 |
Eliminated on disposal | - | (500 | ) | - | (500 | ) |
At 31 May 2023 | 15,341 | 78,892 | 178,924 | 273,157 |
Net book value |
At 31 May 2023 | 7,110 | 189,825 | 194,031 | 390,966 |
At 31 May 2022 | 7,110 | 43,564 | 224,000 | 274,674 |
Fixed assets, included in the above, which are held under hire purchase contracts carry a net book value of £26,206 (2022: £38,752). |
Scarlet Group Limited (Registered number: 04340742) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 May 2023 |
12. | Fixed asset investments |
Company |
Shares in |
group |
undertakings |
£ |
Cost |
At 1 June 2022 |
and 31 May 2023 |
Net book value |
At 31 May 2023 |
At 31 May 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Delivered (Reading) Ltd |
Registered office: 375 Stirling Road, Cressex Business Park, High Wycombe, HP12 3ST |
Nature of business: Courier and express delivery service |
% |
Class of shares: | holding |
Ordinary | 100.00 |
Delivered (UK) Limited |
Registered office: 375 Stirling Road, Cressex Business Park, High Wycombe, HP12 3ST |
Nature of business: Courier and express delivery service |
% |
Class of shares: | holding |
Ordinary | 100.00 |
Delivered Portsmouth Limited |
Registered office: 375 Stirling Road, Cressex Business Park, High Wycombe, HP12 3ST |
Nature of business: Dormant |
% |
Class of shares: | holding |
Ordinary | 100.00 |
13. | Debtors: amounts falling due within one year |
Group |
2023 | 2022 |
£ | £ |
Trade debtors | 2,219,747 | 2,799,257 |
Other debtors | 90,066 | 54,283 |
Deferred tax asset | - | 32,492 |
Prepayments and accrued income | 379,663 | 363,940 |
2,689,476 | 3,249,972 |
Scarlet Group Limited (Registered number: 04340742) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 May 2023 |
14. | Creditors: amounts falling due within one year |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 16) | 50,000 | 50,000 |
Finance leases (see note 17) | - | 36,984 |
Trade creditors | 1,359,054 | 1,743,044 |
Amounts owed to group undertakings | - | - |
Tax | 36,063 | 46,439 |
Social security and other taxes | 65,254 | 75,640 |
VAT | 197,664 | 238,696 | - | - |
Other creditors | 192,308 | 285,045 |
Accruals and deferred income | 270,096 | 317,253 |
2,170,439 | 2,793,101 |
15. | Creditors: amounts falling due after more than one year |
Group |
2023 | 2022 |
£ | £ |
Bank loans (see note 16) | 100,000 | 150,000 |
Finance leases (see note 17) | - | 761 |
100,000 | 150,761 |
16. | Loans |
An analysis of the maturity of loans is given below: |
Group |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | 50,000 | 50,000 |
Amounts falling due between one and two | years: |
Bank loans - 1-2 years | 100,000 | 150,000 |
17. | Leasing agreements |
Minimum lease payments fall due as follows: |
Group |
Finance leases |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year | - | 36,984 |
Between one and five years | - | 761 |
- | 37,745 |
Scarlet Group Limited (Registered number: 04340742) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 May 2023 |
17. | Leasing agreements - continued |
Group |
Non-cancellable |
operating leases |
2023 | 2022 |
£ | £ |
Within one year | 530,251 | 549,559 |
Between one and five years | 921,658 | 1,286,066 |
In more than five years | 260,000 | 500,000 |
1,711,909 | 2,335,625 |
18. | Secured debts |
The following secured debts are included within creditors: |
Group |
2023 | 2022 |
£ | £ |
Bank loans | 150,000 | 200,000 |
19. | Provisions for liabilities |
Group |
2023 | 2022 |
£ | £ |
Deferred tax | 17,623 | 39,295 |
Other provisions |
Dilapidations provision | 299,700 | 202,700 |
Aggregate amounts | 317,323 | 241,995 |
Group |
Deferred tax |
£ |
Balance at 1 June 2022 | 39,295 |
Provided during year | (21,672 | ) |
Timing difference |
Balance at 31 May 2023 | 17,623 |
20. | Called up share capital |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | 1 | 100 | 100 |
Scarlet Group Limited (Registered number: 04340742) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 May 2023 |
21. | Reserves |
Group |
Retained |
earnings |
£ |
At 1 June 2022 | 357,444 |
Profit for the year | 212,246 |
Dividends | (3,000 | ) |
At 31 May 2023 | 566,690 |
Company |
Retained |
earnings |
£ |
At 1 June 2022 |
Profit for the year |
Dividends | ( |
) |
At 31 May 2023 |
22. | Pension commitments |
The group operates a defined contribution pension scheme for the benefit of directors and senior employees. The assets of the scheme are administered by trustees in funds which are independent from those of the company. |
The total contribution paid in the year by the group amounted to £74,323 (2022: £59,107). Contributions of £11,811 (2022: £13,170) were payable to the scheme at the year end and are included in creditors. |
23. | Ultimate controlling party |
The ultimate controlling party is Mr J J Barber, who owns the majority of the majority of the issued share capital in Scarlet Group Limited. |
24. | Related party disclosures |
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. |
Scarlet Group Limited (Registered number: 04340742) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 May 2023 |
25. | Reconciliation of profit before taxation to cash generated from operations |
2023 | 2022 |
£ | £ |
Profit before taxation | 259,129 | 216,307 |
Depreciation charges | 95,557 | 74,393 |
Profit on disposal of fixed assets | (667 | ) | - |
Finance costs | 26,190 | 19,388 |
380,209 | 310,088 |
Decrease/(increase) in trade and other debtors | 528,004 | (163,476 | ) |
(Decrease)/increase in trade and other creditors | (478,302 | ) | 59,767 |
Cash generated from operations | 429,911 | 206,379 |
26. | 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 May 2023 |
31/5/23 | 1/6/22 |
£ | £ |
Cash and cash equivalents | 74,110 | 18,755 |
Year ended 31 May 2022 |
31/5/22 | 1/6/21 |
£ | £ |
Cash and cash equivalents | 18,755 | 12,432 |
27. | Analysis of changes in net debt |
At 1/6/22 | Cash flow | At 31/5/23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 18,755 | 55,355 | 74,110 |
18,755 | 55,355 | 74,110 |
Debt |
Finance leases | (37,745 | ) | 37,745 | - |
Debts falling due within 1 year | (50,000 | ) | - | (50,000 | ) |
Debts falling due after 1 year | (150,000 | ) | 50,000 | (100,000 | ) |
(237,745 | ) | 87,745 | (150,000 | ) |
Total | (218,990 | ) | 143,100 | (75,890 | ) |