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Registered number: 08403368












PRIME & MODERN LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023


 
REGISTERED NUMBER:08403368
PRIME & MODERN LIMITED

CONSOLIDATED BALANCE SHEET
AS AT 30 APRIL 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 5 
5,236,430
5,819,482

Tangible assets
 6 
32,181
31,593

  
5,268,611
5,851,075

Current assets
  

Stocks and work in progress
  
7,811
12,391

Debtors: amounts falling due within one year
 8 
1,377,352
1,744,132

Cash at bank and in hand
  
744,594
546,699

  
2,129,757
2,303,222

Creditors: amounts falling due within one year
 9 
(3,115,630)
(3,226,135)

Net current liabilities
  
 
 
(985,873)
 
 
(922,913)

Total assets less current liabilities
  
4,282,738
4,928,162

Creditors: amounts falling due after more than one year
 10 
(3,954,226)
(4,801,717)

  

Net assets
  
328,512
126,445


Capital and reserves
  

Called up share capital 
 12 
4
4

Share premium account
  
374,999
374,999

Profit and loss account
  
(46,491)
(248,558)

Equity attributable to owners of the parent Company
  
328,512
126,445


Page 1


 
REGISTERED NUMBER:08403368
PRIME & MODERN LIMITED
    
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 30 APRIL 2023

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The Company has opted not to file the consolidated profit and loss account in accordance with provisions applicable to companies subject to the small companies' regime.

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




A Kucera
Director

Date: 5 February 2024

The notes on pages 7 to 22 form part of these financial statements.

Page 2


 
REGISTERED NUMBER:08403368
PRIME & MODERN LIMITED

COMPANY BALANCE SHEET
AS AT 30 APRIL 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 5 
5,236,429
2,976,695

Tangible fixed assets
 6 
32,180
31,592

Investments
 7 
230,131
3,703,375

  
5,498,740
6,711,662

Current assets
  

Stocks
  
7,811
12,391

Debtors: amounts falling due within one year
 8 
1,299,779
1,047,987

Cash at bank and in hand
  
489,792
362,724

  
1,797,382
1,423,102

Creditors: amounts falling due within one year
 9 
(2,977,580)
(2,785,408)

Net current liabilities
  
 
 
(1,180,198)
 
 
(1,362,306)

Total assets less current liabilities
  
4,318,542
5,349,356

  

Creditors: amounts falling due after more than one year
 10 
(3,954,226)
(4,801,717)

  

Net assets
  
364,316
547,639


Capital and reserves
  

Called up share capital 
 12 
4
4

Share premium account
  
374,999
374,999

Profit and loss account brought forward
  
172,636
165,072

Loss/(profit) for the year after dividends

  

(183,323)
7,564

Profit and loss account carried forward
  
(10,687)
172,636

Total equity
  
364,316
547,639


Page 3


 
REGISTERED NUMBER:08403368
PRIME & MODERN LIMITED
    
COMPANY BALANCE SHEET (CONTINUED)
AS AT 30 APRIL 2023

The Company's financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The Company has opted not to file the consolidated profit and loss account in accordance with provisions applicable to companies subject to the small companies' regime.

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 


A Kucera
Director

Date: 5 February 2024

The notes on pages 7 to 22 form part of these financial statements.

Page 4

 

PRIME & MODERN LIMITED

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2023


Called up share capital
Share premium account
Profit and loss account
Total equity

£
£
£
£


At 1 May 2021
4
10,000
140,575
150,579


Comprehensive income for the year

Profit for the financial year
-
-
25,244
25,244
Total comprehensive income for the year
-
-
25,244
25,244


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(414,377)
(414,377)

Shares issued during the year
-
364,999
-
364,999


Total transactions with owners
-
364,999
(414,377)
(49,378)



At 1 May 2022
4
374,999
(248,558)
126,445


Comprehensive income for the year

Profit for the financial year
-
-
777,251
777,251
Total comprehensive income for the year
-
-
777,251
777,251


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(575,184)
(575,184)


Total transactions with owners
-
-
(575,184)
(575,184)


At 30 April 2023
4
374,999
(46,491)
328,512


Page 5

 

PRIME & MODERN LIMITED

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2023


Called up share capital
Share premium account
Profit and loss account
Total equity

£
£
£
£


At 1 May 2021
4
10,000
165,072
175,076


Comprehensive income for the year

Loss for the financial year
-
-
421,941
421,941
Total comprehensive income for the year
-
-
421,941
421,941


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(414,377)
(414,377)

Shares issued during the year
-
364,999
-
364,999


Total transactions with owners
-
364,999
(414,377)
(49,378)



At 1 May 2022
4
374,999
172,636
547,639


Comprehensive income for the year

Profit for the financial year
-
-
391,863
391,863
Total comprehensive income for the year
-
-
391,863
391,863


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(575,186)
(575,186)


Total transactions with owners
-
-
(575,186)
(575,186)


At 30 April 2023
4
374,999
(10,687)
364,316


Page 6

 

PRIME & MODERN LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023

1.


General information

Prime & Modern Limited is a private company limited by shares incorporated in England and Wales. The registered office is a 16 Great Queen Street, London, WC2B 5AH. 
The financial statements are presented in Sterling (£), the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies.

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own profit and loss account in these financial statements.

The following principal accounting policies have been applied:

  
2.2

Basis of consolidation

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. In the group accounts, the excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries are accounted for at cost less impairment.
The consolidated financial statements incorporate those of Prime and Modern Limited and all of its subsidiaries (i.e. entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.
All financial statements are made up to 30 April 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries stated in note 8 have been included in the group financial statements using the acquisition method of accounting. Accordingly, the group profit and loss account include the results of these companies. The purchase consideration has been allocated to the assets and liabilities on the basis of fair value at the date of acquisition.

Page 7

 

PRIME & MODERN LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023

2.Accounting policies (continued)

 
2.3

Going concern

At the time of approving the financial statements, the directors have considered whether the group has adequate resources to continue in operational existence for the foreseeable future.
The directors note that, although the Group has a net current liability working capital position, the working capital of the company is supported by a medium term bank loan and a recurring monthly income from its contracted client base and that there has been no significant loss of clients during the year. The acquisition of the new businesses has also provided additional gross profit and a net contribution to the group. Having considered post year end trading and financial results and after making enquiries, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence and meet its liabilities as they fall due for the foreseeable future, being a period of at least twelve months from the date these financial statements are approved. 
Accordingly, they continue to adopt the going concern basis in preparing the financial statements

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is Sterling (£).

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

 
2.5

Revenue

Revenue is derived from the sale of IT and telephony services and from the sale of related IT equipment. IT and telephony services are generally provided to clients under fixed term contracts. Revenue from these services is recognised in equal monthly amounts over the duration of the service contract. The directors are of the opinion that this fairly represents the level of service provision over the life of the contract. Revenue from the provision of ad hoc IT services is recognised upon completion of the project when it is billed.

Sale of goods

Revenue from the sale of IT and communications equipment  is recognised when all of the following conditions are satisfied:
the Group has transferred the significant risks and rewards of ownership to the buyer;
the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.
 

Page 8

 

PRIME & MODERN LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023

2.Accounting policies (continued)


2.5
Revenue (continued)

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided and when all of the following conditions are satisfied:
the amount of revenue can be measured reliably; and
it is probable that the Group will receive the consideration due under the contract. 


  
2.6

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. 
Intangible assets are recognised in the development phase of a project if and only if certain specific criteria are met in order to demonstrate that the asset will generate probable future economic benefits and that its cost can be reliably measured. Capitalised development costs are subsequently amortised on a straight line basis over their useful economic lives, which range from 3 to 6 years. The company did not incur any capitalised development costs for the period under review.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

 
2.7

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.8

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.9

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.10

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

Page 9

 

PRIME & MODERN LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023

2.Accounting policies (continued)

 
2.11

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan 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 in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the Group in independently administered funds.

 
2.12

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of the identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the consolidated profit and loss account over its useful economic life.
Other intangible assets 
Other intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 The estimated useful lives range as follows:

Goodwill
-
10
years
Other intangible fixed assets
-
5
years

Previously the cost of goodwill was amortised in equal instalments over 7 years. The goodwill amortisation policy has been revised to reflect the longer useful economic life. 
The residual goodwill as of 1 May 2022 will be amortised over a period of 10 years in equal instalments. 

Page 10

 

PRIME & MODERN LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023

2.Accounting policies (continued)

 
2.13

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the Group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Office equipment
-
straight line over 5 years
Computer equipment
-
straight line over 3 years

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.14

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.15

Stocks

Stocks of IT equipment for resale are stated at the lower of cost and net realisable value, being the estimated selling price. Cost is based on the cost of purchase on a first in, first out basis. 

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price. The impairment loss is recognised immediately in profit or loss.

 
2.16

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Page 11

 

PRIME & MODERN LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023

2.Accounting policies (continued)

  
2.17

Financial instruments

The Group has elected to apply Sections 11 and 12 of FRS 102 in respect of financial instruments.
Financial assets and financial liabilities are recognised when the Group becomes party to the contractual provisions of the instrument. 
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting all of its liabilities.
The Group’s policies for its major classes of financial assets and financial liabilities are set out below. 
Financial assets
Basic financial assets, including trade and other debtors, cash and bank balances, intercompany working capital balances, and intercompany financing 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 for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.
Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment. 
Financial liabilities
Basic financial liabilities, including trade and other creditors and bank loans, 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 for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Impairment of financial assets
Financial assets measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit and loss account. 
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between the asset's carrying amount and the best estimate of the amount the company would receive for the asset if it were to be sold at the reporting date. 
For financial assets measured at amortised cost, the impairment loss is measured as the difference between the asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If the financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. 
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. 

Page 12

 

PRIME & MODERN LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023

2.Accounting policies (continued)

 

Financial instruments (continued)

Derecognition of financial assets and financial liabilities
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.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. 
 
Offsetting of financial assets and financial liabilities
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

  
2.18

Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds.

  
2.19

Holiday pay accrual

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the balance sheet date.

 
2.20

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 13

 

PRIME & MODERN LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023

2.Accounting policies (continued)

  
2.21

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
Current tax is the amount of income tax payable in respect of taxable profit for the year or prior years.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company operates and generates income.
Deferred tax arises from timing differences that are differences between taxable profits and total comprehensive income as stated in the financial statements. These timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:

The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


3.


Employees

The average monthly number of employees, including directors, during the year was 62 (2022 - 36).


4.


Parent company profit for the year

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own profit and loss account in these financial statements. The profit after tax of the parent Company for the year was £391,863 (2022 -  £421,941).

Page 14

 

PRIME & MODERN LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023

5.


Intangible assets

Group





Computer software
Goodwill
Total

£
£
£



Cost


At 1 May 2022
9,450
7,560,562
7,570,012


Hive up of subsidiaries' trade and assets to parent
-
2,908,679
2,908,679


Transfer of trade and assets of subsidiaries to parent 
-
(2,908,679)
(2,908,679)



At 30 April 2023

9,450
7,560,562
7,570,012



Amortisation


At 1 May 2022
1,530
1,749,000
1,750,530


Charge for the year on owned assets
1,896
647,049
648,945


Transfer of amortisation upon hive up
-
(65,893)
(65,893)



At 30 April 2023

3,426
2,330,156
2,333,582



Net book value



At 30 April 2023
6,024
5,230,406
5,236,430



At 30 April 2022
7,920
5,811,562
5,819,482



Page 15

 

PRIME & MODERN LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
 
           5.Intangible assets (continued)

Company




Computer software
Goodwill
Total

£
£
£



Cost


At 1 May 2022
9,450
4,651,882
4,661,332


Additions
-
2,908,679
2,908,679



At 30 April 2023

9,450
7,560,561
7,570,011



Amortisation


At 1 May 2022
1,530
1,683,107
1,684,637


Charge for the year
1,896
647,049
648,945



At 30 April 2023

3,426
2,330,156
2,333,582



Net book value



At 30 April 2023
6,024
5,230,405
5,236,429



At 30 April 2022
7,920
2,968,775
2,976,695

Page 16

 

PRIME & MODERN LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023

6.


Tangible fixed assets

Group






Office equipment
Computer equipment
Total

£
£
£



Cost


At 1 May 2022
16,930
38,176
55,106


Additions
2,596
14,376
16,972



At 30 April 2023

19,526
52,552
72,078



Depreciation


At 1 May 2022
7,042
16,471
23,513


Charge for the year on owned assets
3,857
12,527
16,384



At 30 April 2023

10,899
28,998
39,897



Net book value



At 30 April 2023
8,627
23,554
32,181



At 30 April 2022
9,888
21,705
31,593

Page 17

 

PRIME & MODERN LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023

           6.Tangible fixed assets (continued)


Company






Office equipment
Computer equipment
Total

£
£
£

Cost


At 1 May 2022
16,930
38,175
55,105


Additions
2,596
14,376
16,972



At 30 April 2023

19,526
52,551
72,077



Depreciation


At 1 May 2022
7,042
16,471
23,513


Charge for the year on owned assets
3,857
12,527
16,384



At 30 April 2023

10,899
28,998
39,897



Net book value



At 30 April 2023
8,627
23,553
32,180



At 30 April 2022
9,888
21,704
31,592






Page 18

 

PRIME & MODERN LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023

7.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost


At 1 May 2022
3,703,375


Conversion to goodwill upon hive up 
(3,473,244)



At 30 April 2023
230,131





Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Principal activity

Class of shares

Holding

Control Esc Limited
UK
Telephone & IT services
Ordinary
100%
Our Tech Team Limited
UK
Telephone & IT services
Ordinary
100%
TNSC Limited
UK
Telephone & IT services
Ordinary
100%

Control Esc Limited was dissolved in June 2022 after its trade, assets and liabilities had been transferred to Prime & Modern Limited. 
The trade of Our Tech Team Limited and TNSC Limited has been hived up to the parent company, Prime & Modern Limited. Under the hive accounting provisions the investment in these subsidiaries of £3,700,000 has been converted to goodwill with net book value of £2,558,508. The goodwill balance reflects the amortisation charge since acquisition of the subsidiaries and aligns with the balance carried in the consolidated balance sheet. The residual figure of £231,000 in fixed asset investments represents the remaining positive net assets of TNSC Limited as at 30 April 2023.


8.


Debtors

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Trade debtors
1,089,947
1,154,205
962,722
784,067

Amounts owed by group undertakings
-
-
57,632
23,632

Other debtors
42,979
299,379
34,999
35,836

Prepayments and accrued income
244,426
290,548
244,426
204,452

1,377,352
1,744,132
1,299,779
1,047,987


Page 19

 

PRIME & MODERN LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023

9.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Bank overdrafts
4,389
-
-
-

Bank loans
400,000
400,000
400,000
400,000

Trade creditors
856,346
718,618
642,192
517,635

Amounts owed to group undertakings
-
-
240,455
-

Corporation tax
285,768
127,110
125,806
37,483

Other taxation and social security
308,697
290,369
308,697
243,602

Other creditors
472,011
1,023,306
472,011
1,005,114

Accruals and deferred income
788,419
666,732
788,419
581,574

3,115,630
3,226,135
2,977,580
2,785,408



10.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Bank loans
3,200,000
3,600,000
3,200,000
3,600,000

Other creditors
754,226
1,201,717
754,226
1,201,717

3,954,226
4,801,717
3,954,226
4,801,717


The bank loan included within creditors is secured by fixed and floating charges over the assets of the group.
Page 20

 

PRIME & MODERN LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023

11.


Loans

In the preceding year, Prime & Modern Limited entered into a bank loan arrangement, repayable over four years at an interest rate of LIBOR + 3.75%. The existing loan was refinanced in the year as part of a new loan of £4,000,000 repayable over the next 5 years at an interest rate of the Bank of England base rate plus 4.5%.
 

Analysis of the maturity of loans is given below:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Amounts falling due within one year

Bank loans
400,000
400,000
400,000
400,000

Amounts falling due 1-2 years

Bank loans
400,000
400,000
400,000
400,000

Amounts falling due 2-5 years

Bank loans
2,800,000
3,200,000
2,800,000
3,200,000

2,800,000
3,200,000
2,800,000
3,200,000




12.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



10,262 (2022 - 10,262) Ordinary A shares of £0.0001 each
1.0262
1.0262
12,599 (2022 - 12,599) Ordinary B shares of £0.0001 each
1.2599
1.2599
12,599 (2022 - 12,599) Ordinary C shares of £0.0001 each
1.2599
1.2599
3,438 (2022 - 3,438) Ordinary D shares of £0.0001 each
0.3438
0.3438
2,358 (2022 - 2,358) Ordinary E shares of £0.0001 each
0.2358
0.2358
1 (2022 - 1) Ordinary F share of £0.0001
0.0001
0.0001
1 (2022 - 1) Ordinary G share of £0.0001
0.0001
0.0001
412 (2021 - nil) Ordinary J shares of £0.0001 each
0.0412
0.0412
1,289 (2021 - nil ) Ordinary I shares of £0.0001 each
0.1289
0.1289

4.2959

4.2959

The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company.


Page 21

 

PRIME & MODERN LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023

13.


Commitments under operating leases

At 30 April 2023 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Not later than 1 year
27,613
124,226
27,613
124,226

27,613
124,226
27,613
124,226


14.


Related party transactions

Included within creditors due within one year, and creditors due in more than one year are amounts of £460,965 and £754,226 respectively (2022: £600,000 and £1,201,717) due to the former directors of  subsidiary companies. 

Included in debtors are balances of £nil (2022: £240,456) owed by former directors of subsidiary companies. 
Dividends of £575,186 (2022: £414,377) were paid to the directors and connected persons.


15.


Controlling party

It is the directors' opinion that there is no single controlling party of the group.  


16.


Auditor's information

The auditor's report on the financial statements for the year ended 30 April 2023 was unqualified.

The audit report was signed on 5 February 2024 by Russell Tenzer FCA (senior statutory auditor) on behalf of Blick Rothenberg Audit LLP.

 
Page 22