REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MAY 2023 |
FOR |
ASSOCIATED CONTINUITY TEAMS BIDCO |
LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MAY 2023 |
FOR |
ASSOCIATED CONTINUITY TEAMS BIDCO |
LIMITED |
ASSOCIATED CONTINUITY TEAMS BIDCO |
LIMITED (REGISTERED NUMBER: 10572983) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MAY 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Statement of Comprehensive Income | 10 |
Balance Sheet | 11 |
Statement of Changes in Equity | 12 |
Notes to the Financial Statements | 13 |
ASSOCIATED CONTINUITY TEAMS BIDCO |
LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 MAY 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
The Lightbox |
87 Castle Street |
Reading |
Berkshire |
RG1 7SN |
ASSOCIATED CONTINUITY TEAMS BIDCO |
LIMITED (REGISTERED NUMBER: 10572983) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MAY 2023 |
The directors present their strategic report for the year ended 31 May 2023. |
REVIEW OF BUSINESS |
The Company's key performance indicators include revenue, operating profit, gross profit, gross profit percentage and administrative expenses, each of which is discussed in detail later in the report. |
The year ended 31 May 2023 has been clear of the impact of the Covid pandemic and unaffected by lockdowns and trading performance of the trading subsidiary Associated Continuity Teams Limited has consistently and steadily increased over the year and the directors are satisfied with the reported level of revenue and trading profitability within the subsidiary for the year. |
During the year ended 31 May 2021 the Company secured new bank funding through the governments CBILS initiative. Trading levels, profitability and cash generation within the subsidiary company have since exceeded the forecast prepared in agreeing the new funding and the Company has comfortably met all repayments and obligations of the funding. |
The directors are confident of further recovery in activity, expecting increased revenues and profitability in future years. |
PRINCIPAL RISKS AND UNCERTAINTIES |
UK Economy |
The 2016 referendum vote for the UK to leave the European Community may eventually impact the level of net migration into the UK, through the full impact cannot be assessed. The Company is confident that in the current competitive market for staff recruitment, that its recruitment channels and systems will continue to ensure its success in attracting new employees. |
Liquidity risk |
The business is in part funded by loans from other group companies and invoice discounting facility. The loans and invoice discounting facility were agreed in May 2021. The Company has operated well within the total amount of the available facility and the directors are confident that all future obligations will be met. |
Market risk |
The Company continues to develop its skills offerings and understanding and improving service levels to clients as we feel these are vital to the management and mitigation of market risks. |
Human Resources |
The business has continually developed its human resource recruitment and payroll systems and will continue to do so. This will improve reliability and efficiency in the volume processing of staff. |
ASSOCIATED CONTINUITY TEAMS BIDCO |
LIMITED (REGISTERED NUMBER: 10572983) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MAY 2023 |
ENGAGEMENT WITH EMPLOYEES |
The Company places considerable value on the involvement of its employees and continues to keep them informed on matters affecting them as employees and on the various factors affecting the performance of the Company. |
The Company has a policy of continuous improvement at all levels throughout the business and actively seeks to promote advancement of front line staff to supervisor and management positions, both within the operations team and into the support teams. |
We have a strong diversity culture and employ people from a large number of countries and ethnic backgrounds. |
DISABLED EMPLOYEES |
Applications for employment by disabled persons are always fully considered, bering in mind the abilities of the applicant concerned. In the event of members of staff becoming disabled every effort is made to ensure that their employment with the Company continues and that appropriate training is arranged. It is the policy of the Company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees. |
GOING CONCERN |
As the country recovered from the Covid-19 pandemic and with increased visibility of returning revenues and a substantial reduction in overhead costs in the trading subsidiary, the company secured new bank funding via the Governments CBILS facilities in May 2021. In addition to the CBILS facilities the Company has agreed with its bankers an invoice discounting facility sufficient to fund working capital increase as future trading activity increases in the trading subsidiary. |
During the year ended the 31 May 2023 the level of trading profitability and cash generation in the trading subsidiary exceeded that assumed in the post recovery forecast and the group has passed all banking covenant tests. The current levels of trading and profitability is sufficient to ensure future banking covenant tests will be passed even with no further recovery. |
With the operating profit in the main trading company at the level included in the forecasts the directors have a reasonable expectation that there are adequate resources to continue in operational existence for the foreseeable future. |
Whilst there is some uncertainty relating to future trading due to the current UK economic position. The directors have completed a conservative set of forecasts based on no improvement to current trading levels that show that the company will be able to meet liabilities as they fall due. |
The directors therefore continue to adopt the going concern basis of accounting in preparing these financial statements. |
ON BEHALF OF THE BOARD: |
ASSOCIATED CONTINUITY TEAMS BIDCO |
LIMITED (REGISTERED NUMBER: 10572983) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MAY 2023 |
The directors present their report with the financial statements of the company for the year ended 31 May 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of a holding company and management services company. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 May 2023. |
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 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 of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and 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 transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
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 company'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 company's auditors are aware of that information. |
ASSOCIATED CONTINUITY TEAMS BIDCO |
LIMITED (REGISTERED NUMBER: 10572983) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MAY 2023 |
AUDITORS |
The auditors, Haines Watts, Statutory Auditor, 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 |
ASSOCIATED CONTINUITY TEAMS BIDCO |
LIMITED |
Opinion |
We have audited the financial statements of Associated Continuity Teams Bidco Limited (the 'company') for the year ended 31 May 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 May 2023 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements 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 matters |
The financial statements of the Company for the year-ended 31 May 2022 were audited by another auditor who expressed an unmodified opinion of those statements on 20 December 2022. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ASSOCIATED CONTINUITY TEAMS BIDCO |
LIMITED |
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 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 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ASSOCIATED CONTINUITY TEAMS BIDCO |
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: |
We obtained an understanding of the legal and regulatory framework applicable to the Company and the industry in which it operates. We determined that the following laws and regulations were most significant: FRS102 - the Financial Reporting Standard applicable in the UK & The Republic of Ireland, the Companies Act 2006 and relevant tax compliance regulations in the UK. |
We obtained an understanding of how the Company is complying with those legal and regulatory frameworks by making enquiries of management. |
We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur, by meeting with management to understand where management considered there was susceptibility to fraud. Audit procedures performed by the audit team included: |
- Challenging assumptions and judgements made by management in its significant accounting estimates; |
- Identifying and testing journal entries, with a focus on entries made with unusual accounting combinations; |
- Confirming with management whether they have knowledge of any actual, suspected or illegal fraud; |
- Evaluating whether there was evidence of bias by management that represents a risk of material |
misstatement due to fraud. |
These procedures were designed to provide reasonable assurance that the financial statements were free from fraud or error. |
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance will all laws and regulations. |
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 |
ASSOCIATED CONTINUITY TEAMS BIDCO |
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 |
The Lightbox |
87 Castle Street |
Reading |
Berkshire |
RG1 7SN |
ASSOCIATED CONTINUITY TEAMS BIDCO |
LIMITED (REGISTERED NUMBER: 10572983) |
STATEMENT OF COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 MAY 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
157,557 | 165,965 |
Other operating income |
OPERATING PROFIT | 5 |
Interest payable and similar expenses | 6 |
PROFIT/(LOSS) BEFORE TAXATION | ( |
) |
Tax on profit/(loss) | 7 |
PROFIT/(LOSS) FOR THE FINANCIAL YEAR |
( |
) |
ASSOCIATED CONTINUITY TEAMS BIDCO |
LIMITED (REGISTERED NUMBER: 10572983) |
BALANCE SHEET |
31 MAY 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Investments | 8 |
CURRENT ASSETS |
Debtors | 9 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 10 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
11 |
NET LIABILITIES | ( |
) | ( |
) |
CAPITAL AND RESERVES |
Called up share capital | 14 |
Capital contribution reserve | 15 |
Retained earnings | 15 | ( |
) | ( |
) |
SHAREHOLDERS' FUNDS | ( |
) | ( |
) |
The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on |
ASSOCIATED CONTINUITY TEAMS BIDCO |
LIMITED (REGISTERED NUMBER: 10572983) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 MAY 2023 |
Called up | Capital |
share | Retained | contribution | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 June 2021 | ( |
) | ( |
) |
Changes in equity |
Total comprehensive income | - | ( |
) | ( |
) |
Waiver of loan notes payable |
and accrued unpaid interest | - | - | 10,023,439 | 10,023,439 |
Balance at 31 May 2022 | ( |
) | ( |
) |
Changes in equity |
Total comprehensive income | - |
Balance at 31 May 2023 | ( |
) | ( |
) |
ASSOCIATED CONTINUITY TEAMS BIDCO |
LIMITED (REGISTERED NUMBER: 10572983) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MAY 2023 |
1. | STATUTORY INFORMATION |
Associated Continuity Teams Bidco Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Going concern |
As the country recovered from the Covid-19 pandemic and with increased visibility of returning revenues and a substantial reduction in overhead costs in the trading subsidiary, the Company secured new bank funding via the Governments CBILS facilities in May 2021. In addition to the CBILS facilities the Company has agreed with its bankers an invoice discounting facility sufficient to fund working capital increase as future trading activity increases in the trading subsidiary. |
During the year ended the 31 May 2023 the level of trading profitability and cash generation in the trading subsidiary exceeded that assumed in the post recovery forecast and the Group has passed all banking covenant tests. The current levels of trading and profitability is sufficient to ensure future banking covenant tests will be passed even with no further recovery. |
With the operating profit in the main trading company at the level included in the forecasts the directors have a reasonable expectation that there are adequate resources to continue in operational existence for the foreseeable future. |
Whilst there is some uncertainty relating to future trading due to the current UK economic position. The directors have completed a conservative set of forecasts based on no improvement to current trading levels that show that the Company will be able to meet liabilities as they fall due. |
The directors therefore continue to adopt the going concern basis of accounting in preparing these financial statements. |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of Section 7 Statement of Cash Flows; |
• | the requirement of paragraph 3.17(d); |
• | the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c); |
• | the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A; |
• | the requirements of paragraphs 26.18(b), 26.19 to 26.21 and 26.23; |
• | the requirement of paragraph 33.7. |
ASSOCIATED CONTINUITY TEAMS BIDCO |
LIMITED (REGISTERED NUMBER: 10572983) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
2. | ACCOUNTING POLICIES - continued |
Preparation of consolidated financial statements |
The financial statements contain information about Associated Continuity Teams Bidco Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, Associated Continuity Teams Holdings Limited, WG01 Vox Studios 1-45 Durham Street, London, SE11 5JH. |
Revenue |
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. Revenue comprises revenue recognised by the Company in respect of the provision of management services during the year. |
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when the following conditions are satisfied: |
- | the amount of revenue can be measured reliably |
- | it is probable that the Company will received the consideration due under the contract; and |
- | the stage of completion of the contract at the end of the reporting period can be measured reliably |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost less any provision for impairment. |
ASSOCIATED CONTINUITY TEAMS BIDCO |
LIMITED (REGISTERED NUMBER: 10572983) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The Company has elected to apply the provisions of Section 11 'Basic Financial Instruments' of FRS 102 to all of its financial instruments. |
Financial instruments are recognised when the Company becomes party to the contractual provisions of the instrument. |
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, |
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. |
Basic financial assets |
Basic financial assets, which include trade and other debtors and cash and bank balances, are |
initially measured at transaction price including transaction costs and are subsequently carried at |
amortised cost using the effective interest method unless the arrangement constitutes a financing |
transaction, where the financial asset is measured at the present value of the future receipts |
discounted at a market rate of interest. |
Basic financial liabilities |
Basic financial liabilities, including trade and other creditors and amounts owed to group undertakings are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value fo the future payments discounted at a market rate of interest. |
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
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. |
Cash and cash equivalents |
Cash and cash equivalents are basic financial instruments and include cash in hand, deposits held at call with banks and other short term liquid investments with original maturities of three months or |
less. |
Creditors |
Short term creditors are measured at the transaction price. Other financial liabilities, include bank |
loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortized cost using the effective interest method. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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. |
ASSOCIATED CONTINUITY TEAMS BIDCO |
LIMITED (REGISTERED NUMBER: 10572983) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
2. | ACCOUNTING POLICIES - continued |
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. |
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. |
Interest payable and expenses |
Interest payable and expenses are charged to profit or loss over the term of the debt using the effective interest rate 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. |
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. |
Provisions for liabilities |
Provisions are made when an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and reliable estimate can be made of the amount of the obligation. |
Provisions are charged as an expense to the Income Statement in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. |
When payments are eventually made, they are charged to the provision carried in the balance sheet. |
ASSOCIATED CONTINUITY TEAMS BIDCO |
LIMITED (REGISTERED NUMBER: 10572983) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
In application of the Company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
Impairment of investments |
Determining whether there are indicators of impairment of the group's fixed and intangible assets, including goodwill. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a large cash-generating unit, the viability and expected future performance of that unit. |
An impairment review has been completed based upon the directors forecast of the volume of pre Covid 19 customer activity expected to return and assumptions for further recovery and trading in the subsidiary entity Associated Continuity Teams Limited. The forecast future cash flows have been discounted at the weighted average cost of capital of 17% over a 10 year useful life using long term growth rates of 1% from year 4 onwards. A positive and a conservative recovery scenario has been forecast and the impairment of the investments has been made upon the directors assessment of each scenario. |
The directors consider that based upon the results of the impairment review and the ongoing level of uncertainty in the hospitality market that no further impairment loss provision be made against the carrying value of investments. |
4. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2023 | 2022 |
Management |
2023 | 2022 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
Information regarding the highest paid director is as follows: |
2023 | 2022 |
£ | £ |
Emoluments etc |
Pension contributions to money purchase schemes |
ASSOCIATED CONTINUITY TEAMS BIDCO |
LIMITED (REGISTERED NUMBER: 10572983) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
5. | OPERATING PROFIT |
The operating profit is stated after charging: |
2023 | 2022 |
£ | £ |
Auditors' remuneration |
Auditors' remuneration for non audit work |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
CBILs loan interest |
Loan |
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 |
Adjustment in prior year | 1,346 | - |
Tax on profit/(loss) |
UK corporation tax has been charged at 20% . |
ASSOCIATED CONTINUITY TEAMS BIDCO |
LIMITED (REGISTERED NUMBER: 10572983) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
7. | TAXATION - continued |
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 |
£ | £ |
Profit/(loss) before tax | ( |
) |
Profit/(loss) multiplied by the standard rate of corporation tax in the UK of |
( |
) |
Effects of: |
Expenses not deductible for tax purposes |
Adjustments to tax charge in respect of previous periods |
Movement in deferred tax not recognised | - | (16,851 | ) |
Remeasurement of deferred tax for changes in rates | - | 4,044 |
Group relief surrendered | - | (7,895 | ) |
Marginal relief | (27 | ) | - |
Total tax charge | 15,574 | 10,831 |
As of 1 April 2023, the UK Government has increased the main rate of corporation tax from 19% to 25%. |
8. | FIXED ASSET INVESTMENTS |
Shares in |
group |
undertakings |
£ |
COST |
At 1 June 2022 |
and 31 May 2023 |
PROVISIONS |
At 1 June 2022 |
and 31 May 2023 | 6,668,252 |
NET BOOK VALUE |
At 31 May 2023 |
At 31 May 2022 |
ASSOCIATED CONTINUITY TEAMS BIDCO |
LIMITED (REGISTERED NUMBER: 10572983) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
8. | FIXED ASSET INVESTMENTS - continued |
The company's investments at the Balance Sheet date in the share capital of companies include the following: |
Registered office: United Kingdom |
Nature of business: |
% |
Class of shares: | holding |
Registered office: United Kingdom |
Nature of business: |
% |
Class of shares: | holding |
9. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
VAT |
10. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts (see note 12) |
Amounts owed to group undertakings |
Tax |
Accruals and deferred income |
11. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans (see note 12) |
12. | LOANS |
An analysis of the maturity of loans is given below: |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
ASSOCIATED CONTINUITY TEAMS BIDCO |
LIMITED (REGISTERED NUMBER: 10572983) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
12. | LOANS - continued |
2023 | 2022 |
£ | £ |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
13. | SECURED DEBTS |
The following secured debts are included within creditors: |
2023 | 2022 |
£ | £ |
Bank loans |
Following the Covid 19 pandemic beginning in March 2020, the group experienced a significant reduction in trading and as a result looked to restructure its bank loan funding. During the year ended 31 May 2021 the group restructured its bank loan funding, repaying all existing bank loans and obtaining new funding via the Governments CBILS scheme and an Invoice Discounting Facility secured against the Group Trade Debtors. |
The CBILS loan of £1,500,000 was drawn on 27 May 2021. The loan is repayable by 20 consecutive instalments of £75,000 payable each quarter with the first repayment on 31 May 2022. Interest is charged at a margin of 3.8% plus Base Rate. Interest in the first year of the CBILS loan was covered by a UK Government Business Interruption Payment. |
Bank loans are secured against the current and future assets of the group. |
14. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 1 | 1 |
15. | RESERVES |
Retained earning |
Retained earnings relates to the cumulative loss less amounts distributed to shareholders. |
Capital Contribution Reserve |
Additional contributions from shareholders arising from transactions such as share issues or waivers of amounts due to shareholders. |
16. | 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. |
During the year the company made purchases of £46,161 (2022 - £52,415) from Ringrose Associates Limited a company controlled by company director Adrian Ringrose. |
ASSOCIATED CONTINUITY TEAMS BIDCO |
LIMITED (REGISTERED NUMBER: 10572983) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
17. | ULTIMATE CONTROLLING PARTY |
Associated Continuity Teams Bidco Limited's immediate parent company is Associated Continuity Teams Holdings Limited. |
The largest group in which the results of the company are consolidated is that headed by Associated Continuity Teams Holdings Limited, whose registered address is Unit WG01 Vox Studios, 1-45 Durham Street, London, SE11 5JH. |
The consolidated accounts of Associated Continuity Teams Holdings Limited are available to the public and may be obtained from Companies House, Crown Way, Cardiff. No other group accounts include the results of the company, |
In the opinion of the directors the ultimate controlling party of this company is Connection Capital LLP, a limited liability partnership incorporated in England and Wales whose registered address is One Eleven, Edmund Street, Birmingham, B3 2HJ. |