Company registration number 09637956 (England and Wales)
COMMON GRIND LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
COMMON GRIND LIMITED
COMPANY INFORMATION
Directors
Mr R Voce
Mr M Broadbent
Mrs V Leaver
Mr B Macmillan
Company number
09637956
Registered office
First Floor
1 Des Roches Square
Witan Way
Witney
Oxfordshire
OX28 4BE
Auditor
DSA Prospect Audit Limited
First Floor
1 Des Roches Square
Witan Way
Witney
OX28 4BE
Business address
Unit 18-19
17-19 Sunbeam Road
London
NW10 6JP
COMMON GRIND LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Profit and loss account
9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Company statement of cash flows
16
Notes to the financial statements
17 - 33
COMMON GRIND LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 1 -

The directors present the strategic report for the year ended 30 November 2023.

Review of the business

The company’s core sector focus is predominantly on the UK’s catering markets, working predominantly as an in house catering function. The company endeavours to diversify it’s portfolio and market in order to be sustainable and grow, with production catering and procurement services researched.

 

The financial period has closed satisfactorily in light of the prevailing and somewhat challenging economic conditions generally and specific market conditions affecting the catering sector.

Principal risks and uncertainties

The principal risk faced by the business is as a consequence of the UK’s general economic situation which is reflected mostly the closure of sites and the need to reduce staff numbers. Driven mainly as a consequence of rising costs and businesses looking to reduce costs where they can with catering being deemed less of a necessity. UK Inflation in the period has driven up certain costs such as labour, however these are expected to ease somewhat during the next period which may assist with recovery and growth.

 

 

Development and performance

The company has much experience in the catering sector, continually seeking to innovate and increasingly diversifying into other sectors and specialisms.

 

The business continues to be well positioned to capture clients’ current and future needs through expertise, approach and customer care, delivered via continued investment in training and innovation to ensure that existing clients return and that new client relationships are formed.

 

Employee numbers have reduced during the period due to site closures and the increased pressures from customers to cut costs. This however has not distorted turnover or gross profit which has remained consistent over the current and previous financial year.

Key performance indicators
The key performance indicators below reflect the company's performance for the period.
2023
2022
Change
£'000
£'000
+/-
Turnover
11,657
11,704
-
Operating profit
59
679
91%
Profit for the financial year
26
512
95%
Total equity
401
456
12%
Profit after tax as a % of turnover
-
4%
95%
Current ratio
1.20
1.42
15%
Number of COS staff
287
305
-
ER NI markup
46%
40%
15%
COS GP markup
24%
24%
2%
COMMON GRIND LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 2 -
Credit risk

Credit risk arises when a failure by counter parties to discharge their obligations could reduce the amount of future cash inflows from financial assets on hand at the reporting date. Significant client’s are those that represent more than 10% of the company's total revenue or gross accounts receivable balance. As at 30 November 2023, the company has one major customer at present, however is always looking to diversify it's portfolio to reduce potential credit risks.

 

Liquidity risk

Liquidity risk is the risk that arises when the maturity of assets and liabilities does not match. An unmatched position potentially enhances profitability but can also increase the risk of losses. The company have procedures with the objective of minimizing such losses, such as, appropriate management of working capital and close monitoring of forecasted cash flows, with the aim of maintaining adequate cash to service the company’s current needs.

Other information and explanations

Looking ahead, the company continue to be well positioned to capture clients’ current and future needs through expertise, approach and customer care, delivered via continued investment in training and innovation to ensure that our existing clients return and that new client relationships are formed.

On behalf of the board

Mr R Voce
Director
17 April 2024
COMMON GRIND LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 3 -

The directors present their annual report and financial statements for the year ended 30 November 2023.

Principal activities

The principal activity of the company and group continued to be that of catering services.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £81,429. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr R Voce
Mr M Broadbent
Mrs V Leaver
Mr B Macmillan
Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

The group's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.

 

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.

 

There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.

Post reporting date events

The directors do not believe there are any material post reporting date events to disclose.

Auditor

DSA Prospect Audit Limited were appointed as auditor to the group and in accordance with section 485 of the

Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

COMMON GRIND LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 4 -
On behalf of the board
Mr R Voce
Director
17 April 2024
COMMON GRIND LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 5 -

The directors are responsible for preparing the Annual 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

COMMON GRIND LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF COMMON GRIND LIMITED
- 6 -
Opinion

We have audited the financial statements of Common Grind Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 November 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including 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:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:

COMMON GRIND LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF COMMON GRIND LIMITED
- 7 -
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 their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 is 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 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's 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 auditor's 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

COMMON GRIND LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF COMMON GRIND LIMITED
- 8 -

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

To address the risk of fraud through management bias and override of controls, we:

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

 

Mr Gary John McHale FCCA (Senior Statutory Auditor)
For and on behalf of DSA Prospect Audit Limited
17 April 2024
Chartered Certified Accountants
Statutory Auditor
First Floor
1 Des Roches Square
Witan Way
Witney
OX28 4BE
COMMON GRIND LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
11,656,590
11,703,752
Cost of sales
(9,387,744)
(9,459,737)
Gross profit
2,268,846
2,244,015
Administrative expenses
(2,209,918)
(1,565,071)
Operating profit
4
58,928
678,944
Interest receivable and similar income
8
5,702
121
Interest payable and similar expenses
9
(37,555)
(30,716)
Profit before taxation
27,075
648,349
Tax on profit
10
(869)
(135,866)
Profit for the financial year
23
26,206
512,483
Profit for the financial year is all attributable to the owners of the parent company.
COMMON GRIND LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 10 -
2023
2022
£
£
Profit for the year
26,206
512,483
Other comprehensive income
-
-
Total comprehensive income for the year
26,206
512,483
Total comprehensive income for the year is all attributable to the owners of the parent company.
COMMON GRIND LIMITED
GROUP BALANCE SHEET
AS AT
30 NOVEMBER 2023
30 November 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
12
10,873
16,375
Negative goodwill
12
(48,121)
(72,031)
Net goodwill
(37,248)
(55,656)
Other intangible assets
12
10,320
-
0
Total intangible assets
(26,928)
(55,656)
Tangible assets
13
12,196
11,555
(14,732)
(44,101)
Current assets
Debtors
16
2,577,005
1,228,357
Cash at bank and in hand
102,484
660,237
2,679,489
1,888,594
Creditors: amounts falling due within one year
17
(2,226,698)
(1,332,081)
Net current assets
452,791
556,513
Total assets less current liabilities
438,059
512,412
Creditors: amounts falling due after more than one year
18
(34,167)
(54,166)
Provisions for liabilities
Deferred tax liability
20
3,049
2,180
(3,049)
(2,180)
Net assets
400,843
456,066
Capital and reserves
Called up share capital
22
1,000
1,000
Profit and loss reserves
23
399,843
455,066
Total equity
400,843
456,066

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 17 April 2024 and are signed on its behalf by:
17 April 2024
Mr R Voce
Director
Company registration number 09637956 (England and Wales)
COMMON GRIND LIMITED
COMPANY BALANCE SHEET
AS AT 30 NOVEMBER 2023
30 November 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
13
12,133
11,476
Investments
14
482
482
12,615
11,958
Current assets
Debtors
16
2,577,005
1,287,596
Cash at bank and in hand
83,383
598,043
2,660,388
1,885,639
Creditors: amounts falling due within one year
17
(2,242,842)
(1,477,828)
Net current assets
417,546
407,811
Total assets less current liabilities
430,161
419,769
Creditors: amounts falling due after more than one year
18
(16,667)
(26,666)
Provisions for liabilities
Deferred tax liability
20
3,033
2,180
(3,033)
(2,180)
Net assets
410,461
390,923
Capital and reserves
Called up share capital
22
1,000
1,000
Profit and loss reserves
23
409,461
389,923
Total equity
410,461
390,923

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £100,966 (2022 - £342,529 profit).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.true

The financial statements were approved by the board of directors and authorised for issue on 17 April 2024 and are signed on its behalf by:
17 April 2024
Mr R Voce
Director
Company registration number 09637956 (England and Wales)
COMMON GRIND LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 December 2021
1,000
2,583
3,583
Year ended 30 November 2022:
Profit and total comprehensive income
-
512,483
512,483
Dividends
11
-
(60,000)
(60,000)
Balance at 30 November 2022
1,000
455,066
456,066
Year ended 30 November 2023:
Profit and total comprehensive income
-
26,206
26,206
Dividends
11
-
(81,429)
(81,429)
Balance at 30 November 2023
1,000
399,843
400,843
COMMON GRIND LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 14 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 December 2021
1,000
107,394
108,394
Year ended 30 November 2022:
Profit and total comprehensive income for the year
-
342,529
342,529
Dividends
11
-
(60,000)
(60,000)
Balance at 30 November 2022
1,000
389,923
390,923
Year ended 30 November 2023:
Profit and total comprehensive income
-
100,967
100,967
Dividends
11
-
(81,429)
(81,429)
Balance at 30 November 2023
1,000
409,461
410,461
COMMON GRIND LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
28
(923,417)
680,279
Interest paid
(37,555)
(30,716)
Income taxes paid
(122,394)
(17,101)
Net cash (outflow)/inflow from operating activities
(1,083,366)
632,462
Investing activities
Purchase of intangible assets
(10,320)
-
Purchase of tangible fixed assets
(2,553)
(9,172)
Repayment of loans
(218,880)
(66,592)
Interest received
5,702
121
Net cash used in investing activities
(226,051)
(75,643)
Financing activities
Repayment of bank loans
(19,999)
(20,000)
Dividends paid to equity shareholders
(81,429)
(60,000)
Net cash used in financing activities
(101,428)
(80,000)
Net (decrease)/increase in cash and cash equivalents
(1,410,845)
476,819
Cash and cash equivalents at beginning of year
660,237
183,418
Cash and cash equivalents at end of year
(750,608)
660,237
Relating to:
Cash at bank and in hand
102,484
660,237
Bank overdrafts included in creditors payable within one year
(853,092)
-
COMMON GRIND LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 16 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
29
(1,214,570)
681,030
Interest paid
(36,730)
(29,449)
Income taxes paid
(89,293)
(17,924)
Net cash (outflow)/inflow from operating activities
(1,340,593)
633,657
Investing activities
Purchase of tangible fixed assets
(2,553)
(9,172)
Repayment of loans
(218,880)
(66,912)
Interest received
5,702
68
Dividends received
280,000
-
0
Net cash generated from/(used in) investing activities
64,269
(76,016)
Financing activities
Repayment of bank loans
(9,999)
(10,000)
Dividends paid to equity shareholders
(81,429)
(60,000)
Net cash used in financing activities
(91,428)
(70,000)
Net (decrease)/increase in cash and cash equivalents
(1,367,752)
487,641
Cash and cash equivalents at beginning of year
598,043
110,402
Cash and cash equivalents at end of year
(769,709)
598,043
Relating to:
Cash at bank and in hand
83,383
598,043
Bank overdrafts included in creditors payable within one year
(853,092)
-
COMMON GRIND LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 17 -
1
Accounting policies
Company information

Common Grind Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is First Floor, 1 Des Roches Square, Witan Way, Witney, OX28 4BE.

 

The group consists of Common Grind Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Business combinations

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. 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, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Common Grind Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 30 November 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 are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

COMMON GRIND LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 18 -

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.7
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Software
20% Straight line
COMMON GRIND LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 19 -
1.8
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and equipment
15% Reducing balance
Computers
15% Reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.9
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

COMMON GRIND LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 20 -
1.10
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.11
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.12
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

COMMON GRIND LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 21 -
Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

COMMON GRIND LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 22 -
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.13
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.14
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

COMMON GRIND LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 23 -
1.15
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.16
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Catering services
11,656,590
11,703,752
2023
2022
£
£
Other revenue
Interest income
5,702
121
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
1,912
1,107
Amortisation of intangible assets
(18,408)
(18,408)
COMMON GRIND LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 24 -
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
9,000
-
For other services
Other assurance services
3,900
3,655
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
308
326
302
320

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
9,816,971
9,396,213
9,816,888
9,393,669
Social security costs
974,489
948,585
974,489
948,585
Pension costs
172,338
283,027
172,338
283,027
10,963,798
10,627,825
10,963,715
10,625,281
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
1,229,563
660,986
Company pension contributions to defined contribution schemes
5,283
113,855
1,234,846
774,841

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2022 - 4).

COMMON GRIND LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
7
Directors' remuneration
(Continued)
- 25 -
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
284,570
232,957
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
-
0
68
Other interest income
5,702
53
Total income
5,702
121
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
-
68
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
1,631
6,567
Interest on invoice finance arrangements
35,924
24,149
37,555
30,716
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
-
0
134,330
Deferred tax
Origination and reversal of timing differences
869
1,536
Total tax charge
869
135,866
COMMON GRIND LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
10
Taxation
(Continued)
- 26 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
27,075
648,349
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
6,769
123,186
Tax effect of expenses that are not deductible in determining taxable profit
-
0
18,682
Unutilised tax losses carried forward
(1,775)
(1,986)
Group relief
(517)
-
0
Permanent capital allowances in excess of depreciation
(660)
(2,266)
Depreciation on assets not qualifying for tax allowances
478
211
Amortisation on assets not qualifying for tax allowances
(4,602)
(3,497)
Deferred tax adjustments in respect of prior years
869
1,536
307
-
0
Taxation charge
869
135,866
11
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
81,429
60,000
12
Intangible fixed assets
Group
Goodwill
Negative goodwill
Software
Total
£
£
£
£
Cost
At 1 December 2022
27,509
(119,851)
-
0
(92,342)
Additions
-
0
-
0
10,320
10,320
At 30 November 2023
27,509
(119,851)
10,320
(82,022)
Amortisation and impairment
At 1 December 2022
11,134
(47,820)
-
0
(36,686)
Amortisation charged for the year
5,502
(23,910)
-
0
(18,408)
At 30 November 2023
16,636
(71,730)
-
0
(55,094)
COMMON GRIND LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
12
Intangible fixed assets
(Continued)
- 27 -
Carrying amount
At 30 November 2023
10,873
(48,121)
10,320
(26,928)
At 30 November 2022
16,375
(72,031)
-
0
(55,656)
The company had no intangible fixed assets at 30 November 2023 or 30 November 2022.
13
Tangible fixed assets
Group
Plant and equipment
Computers
Total
£
£
£
Cost
At 1 December 2022
67
12,859
12,926
Additions
-
0
2,553
2,553
At 30 November 2023
67
15,412
15,479
Depreciation and impairment
At 1 December 2022
16
1,355
1,371
Depreciation charged in the year
8
1,904
1,912
At 30 November 2023
24
3,259
3,283
Carrying amount
At 30 November 2023
43
12,153
12,196
At 30 November 2022
51
11,504
11,555
COMMON GRIND LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
13
Tangible fixed assets
(Continued)
- 28 -
Company
Plant and equipment
Computers
Total
£
£
£
Cost
At 1 December 2022
67
12,742
12,809
Additions
-
0
2,553
2,553
At 30 November 2023
67
15,295
15,362
Depreciation and impairment
At 1 December 2022
16
1,317
1,333
Depreciation charged in the year
8
1,888
1,896
At 30 November 2023
24
3,205
3,229
Carrying amount
At 30 November 2023
43
12,090
12,133
At 30 November 2022
51
11,425
11,476

Tangible fixed assets with a carrying amount of £12,133 have been pledged to secure borrowings of the company. The company is not allowed to pledge these assets as security for other borrowings.

14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
482
482

 

 

 

 

 

 

Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 December 2022 and 30 November 2023
482
Carrying amount
At 30 November 2023
482
At 30 November 2022
482
COMMON GRIND LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 29 -
15
Subsidiaries

Details of the company's subsidiaries at 30 November 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Save Your Bacon Limited
United Kingdom
Ordinary
100.00
Bread and Honey Events Limited
United Kingdom
Ordinary
100.00
Haul and Porter Limited
United Kingdom
Ordinary
100.00
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,201,436
3,000
1,201,436
-
0
Amounts owed by group undertakings
-
-
-
64,802
Other debtors
320,747
93,992
320,747
91,429
Prepayments and accrued income
1,054,822
1,131,365
1,054,822
1,131,365
2,577,005
1,228,357
2,577,005
1,287,596

Debtors with a carrying amount of £2,525,435 have been pledged to secure borrowings of the company. The company is not allowed to pledge these assets as security for other borrowings.

17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
19
873,092
20,000
863,092
10,000
Trade creditors
73,917
9,406
71,791
19,226
Amounts owed to group undertakings
-
0
-
0
42,143
3,612
Corporation tax payable
11,936
134,330
11,936
101,229
Other taxation and social security
601,575
916,539
592,782
916,539
Other creditors
62,631
130,610
62,631
130,546
Accruals and deferred income
603,547
121,196
598,467
296,676
2,226,698
1,332,081
2,242,842
1,477,828
18
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
19
34,167
54,166
16,667
26,666
COMMON GRIND LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 30 -
19
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
54,167
74,166
26,667
36,666
Bank overdrafts
853,092
-
0
853,092
-
0
907,259
74,166
879,759
36,666
Payable within one year
873,092
20,000
863,092
10,000
Payable after one year
34,167
54,166
16,667
26,666

The maximum funding limit is currently set at £1.5m and is personally guaranteed by the directors up to £230,000 in total.

 

The facility is factoring facility and the funds are held within a separate bank account of the facility provider.

20
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
3,049
2,180
Liabilities
Liabilities
2023
2022
Company
£
£
Accelerated capital allowances
3,033
2,180
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 December 2022
2,180
2,180
Charge to profit or loss
180
164
Effect of change in tax rate - profit or loss
689
689
Liability at 30 November 2023
3,049
3,033

The deferred tax liability set out above is expected to reverse once the fixed assets on the balance sheet have been fully depreciated, and relates to accelerated capital allowances.

COMMON GRIND LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 31 -
21
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
172,338
283,027

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

22
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A of £1 each
700
700
700
700
Ordinary B of £1 each
150
150
150
150
Ordinary C of £1 each
150
150
150
150
1,000
1,000
1,000
1,000

A Ordinary shares have full voting rights, rights to dividends and have capital distribution rights.

 

B Ordinary shares have full voting rights, rights to dividends and have capital distribution rights.

 

C Ordinary shares have full voting rights, rights to dividends and have capital distribution rights.

23
Profit and loss reserves
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning of the year
455,066
2,583
389,923
107,394
Profit for the year
26,206
512,483
100,967
342,529
Dividends
(81,429)
(60,000)
(81,429)
(60,000)
At the end of the year
399,843
455,066
409,461
389,923
24
Financial commitments, guarantees and contingent liabilities

The company has an outstanding fixed and floating charge, which contains a negative pledge, against certain assets of the company in respect of group liabilities.

25
Events after the reporting date

There are no events after the reporting date that the directors believe need disclosing.

COMMON GRIND LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 32 -
26
Directors' transactions

Dividends totalling £81,429 (2022 - £60,000) were paid in the year in respect of shares held by the company's directors.

Description
% Rate
Opening balance
Amounts advanced
Interest charged
Amounts repaid
Closing balance
£
£
£
£
£
Directors loan
2.00
(72,176)
130,588
1,053
-
59,465
Directors loan
2.00
57,073
140,555
2,979
(57,000)
143,607
Directors loan
2.00
6,429
35,929
856
-
43,214
Directors loan
2.00
6,429
59,857
814
(24,429)
42,671
(2,245)
366,929
5,702
(81,429)
288,957

The advances due from the directors at the year end will be repaid within 9 months with the exception of £35,364 of which section 455 tax has been charged at 33.75% in the current year. This gives rise to a tax charge of £11,936.

27
Controlling party

The ultimate controlling parties are Mr M Broadbent and Mr R Voce.

28
Cash (absorbed by)/generated from group operations
2023
2022
£
£
Profit for the year after tax
26,206
512,483
Adjustments for:
Taxation charged
869
135,866
Finance costs
37,555
30,716
Investment income
(5,702)
(121)
Amortisation and impairment of intangible assets
(18,408)
(18,408)
Depreciation and impairment of tangible fixed assets
1,912
1,107
Movements in working capital:
Increase in debtors
(1,129,768)
(312,544)
Increase in creditors
163,919
331,180
Cash (absorbed by)/generated from operations
(923,417)
680,279
COMMON GRIND LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 33 -
29
Cash (absorbed by)/generated from operations - company
2023
2022
£
£
Profit for the year after tax
100,967
342,529
Adjustments for:
Taxation charged
853
102,765
Finance costs
36,730
29,449
Investment income
(285,702)
(68)
Depreciation and impairment of tangible fixed assets
1,896
1,087
Movements in working capital:
Increase in debtors
(1,070,529)
(460,529)
Increase in creditors
1,215
665,797
Cash (absorbed by)/generated from operations
(1,214,570)
681,030
30
Analysis of changes in net funds/(debt) - group
1 December 2022
Cash flows
30 November 2023
£
£
£
Cash at bank and in hand
660,237
(557,753)
102,484
Bank overdrafts
-
0
(853,092)
(853,092)
660,237
(1,410,845)
(750,608)
Borrowings excluding overdrafts
(74,166)
19,999
(54,167)
586,071
(1,390,846)
(804,775)
31
Analysis of changes in net funds/(debt) - company
1 December 2022
Cash flows
30 November 2023
£
£
£
Cash at bank and in hand
598,043
(514,660)
83,383
Bank overdrafts
-
0
(853,092)
(853,092)
598,043
(1,367,752)
(769,709)
Borrowings excluding overdrafts
(36,666)
9,999
(26,667)
561,377
(1,357,753)
(796,376)
2023-11-302022-12-01falseCCH SoftwareCCH Accounts Production 2023.300Mr R VoceMr M BroadbentMrs V LeaverMr B MacmillanMr B 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