Company registration number 06238305 (England and Wales)
TMT TECHNOLOGY GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
TMT TECHNOLOGY GROUP LIMITED
COMPANY INFORMATION
Director
Mr A R Whitehouse
Secretary
Mrs Louise Whitehouse
Company number
06238305
Registered office
Holditch House
Holditch Road
Newcastle under Lyme
Staffordshire
United Kingdom
ST5 9JQ
Auditor
BK Plus Audit Limited
Azzurri House
Walsall Road
Aldridge
Walsall
England
WS9 0RB
TMT TECHNOLOGY GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3
Director's responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Company statement of cash flows
15
Notes to the financial statements
16 - 31
TMT TECHNOLOGY GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2023
- 1 -

The director presents the strategic report for the year ended 31 July 2023.

Review of the business

The strategic focus of our company continues to be on capitalising opportunities within the circular economy, guided by our mission of "keeping technology alive for longer". Our core activities include: (i) Repairing and servicing electronic devices such as mobile phones, wearables, tablets, and laptops, (ii) Buying back mobile devices from consumers and trade partners for repair and refurbishment, (iii) Selling refurbished mobile devices into the UK trade and consumer markets.

 

The business has continued to build on our strengths in these key areas while expanding our client and partner base and focusing on creating more diversified revenue streams. In this regard our strategy involves enhancing existing relationships and building new partnerships to broaden our market reach and reinforce our commitment to sustainability.

 

The directors maintain their confidence given the revenue growth and the company's strong pipeline of opportunities and we are optimistic about our ability to leverage these opportunities and solidify our position in the market. Our strategic emphasis remains to innovate and adapt in an evolving market in ways that will drive growth in our business and contribute positively to the circular economy. As we move forward, we are committed to enhancing our operational efficiencies, improving customer satisfaction, and achieving sustainability goals, thereby ensuring long-term success and value creation for our stakeholders.

Principal risks and uncertainties

The directors are continually assessing the risks and uncertainties and are confident that by working closely with its clients and partners, it will be able to maintain and grow its business by leveraging the strategic capabilities and industry leading new technologies that it has developed, whilst at the same time monitoring changing market forces and client service expectations that will require continued investment in the business.

 

In our assessment of risks, there is an ongoing dependency on a small number of key clients, which exposes the company to potential revenue volatility if any of these clients reduce their volumes or cease their partnership. To mitigate this risk, we are actively pursuing a diversification strategy aimed at broadening our client base. This involves expanding our marketing efforts to reach new segments within the consumer and trade markets, leveraging digital marketing to increase brand visibility and attract new business partnerships.

 

Additionally, we are enhancing our service offerings to include more value-added services, such as developing the direct to consumer proposition and creating innovate repair solutions, which are designed to reduce costs and appeal to a wider range of customers. By broadening our client base and enhancing our service offerings, we aim to reduce our dependency on individual clients and thereby ensuring greater financial resilience and long-term business sustainability.

 

Development and performance

The business has made good progress in perusing new business opportunities disrupted by the aftermath of COVID-19 and the associated supply chain disruptions that affected many of the businesses plans through the first half of the year. In taking the decision to make investments in the business for the long-term, including adding additional management expertise and building capacity to support growth, the business completed the year with significant progress against its strategic goals and momentum in delivering against financial targets.

 

Our revenue growth this year reflects these positive dynamics. We achieved a notable increase in both the volume of devices processed and the profitability per unit, thanks to improvements in operational efficiency and the strategic of our partnerships that broadened over the year. Looking forward, we are well-positioned to capitalise on the expanding demand for product and services in the sector. Our ongoing investments in technology to enhance the repair and refurbishment process and in helping clients deliver against their service and ESG goals is expected to further strengthen our market position and in the long-term enhance shareholder value.

 

As we continue to innovate, we remain optimistic about our future prospects in the circular economy. Our commitment to keeping technology alive for longer not only supports environmental sustainability but also drives economic value as it aligns well with customer priorities in an emerging market and is contributing positively to our long-term business strategy.

TMT TECHNOLOGY GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 2 -
Key performance indicators

The directors consider that the key financial performance indicators are turnover, gross margin and net profit.

 

The turnover for the group was £18,431,207 (2022 - £15,092,967) an increase of 22.1% from the previous year, with a gross profit of £2,064,265 (2022 - £2,108,457) a fall of 2% on the previous year. The gross profit margin was 11.2% compared to 13.97% in 2022.

 

The group incurred a loss before tax £176,539 (2022 - loss of £265,016).

On behalf of the board

Mr A R Whitehouse
Director
25 July 2024
TMT TECHNOLOGY GROUP LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 JULY 2023
- 3 -

The director presents his annual report and financial statements for the year ended 31 July 2023.

Principal activities

The principal activity of the company and group continued to be that of the provision of mobile device repair and service solutions and the sale of refurbished devices into the UK SME, mid sized business and consumer markets.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £230,000. The director does not recommend payment of a further dividend.

Director

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

Mr A R Whitehouse
Auditor

BK Plus Audit Limited were appointed as auditor to the company 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.

On behalf of the board
Mr A R Whitehouse
Director
25 July 2024
TMT TECHNOLOGY GROUP LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 JULY 2023
- 4 -

The director is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

 

 

The director is 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. He is 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.

TMT TECHNOLOGY GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TMT TECHNOLOGY GROUP LIMITED
- 5 -
Opinion

We have audited the financial statements of TMT Technology Group Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 July 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 director's 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 director 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 director is 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:

TMT TECHNOLOGY GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TMT TECHNOLOGY GROUP LIMITED
- 6 -
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 director's 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 director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the parent company or to cease operations, or has 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.

 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

 

From the preliminary stages of the audit, we ensure our understanding of the entity is up to date. This includes, but is not limited to, current knowledge of their activities, the business and control environments, and their compliance with the applicable legal and regulatory frameworks. This information supports our risk identification and the subsequent design of audit procedures to mitigate those risks; ensuring that the audit evidence obtained is sufficient and appropriate to support our opinion.

 

In response to the risks identified, specific to this entity, we designed procedures which included, but were not limited to:

 

 

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.

TMT TECHNOLOGY GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TMT TECHNOLOGY GROUP LIMITED
- 7 -

The purpose of our audit work and to whom we owe our responsibilities

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Christopher Hession C.A
Senior Statutory Auditor
For and on behalf of BK Plus Audit Limited
25 July 2024
Chartered Certified Accountants
Azzurri House
Statutory Auditor
Walsall Road
Aldridge
Walsall
England
WS9 0RB
TMT TECHNOLOGY GROUP LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 JULY 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
18,431,207
15,092,967
Cost of sales
(16,366,942)
(12,984,510)
Gross profit
2,064,265
2,108,457
Administrative expenses
(2,124,785)
(2,333,146)
Other operating income
2,543
8,641
Operating loss
4
(57,977)
(216,048)
Interest receivable and similar income
7
820
291
Interest payable and similar expenses
8
(119,382)
(49,379)
Loss before taxation
(176,539)
(265,136)
Tax on loss
9
195,728
291,041
Profit for the financial year
19,189
25,905
Profit for the financial year is all attributable to the owners of the parent company.
TMT TECHNOLOGY GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JULY 2023
- 9 -
2023
2022
£
£
Profit for the year
19,189
25,905
Other comprehensive income
-
-
Total comprehensive income for the year
19,189
25,905
Total comprehensive income for the year is all attributable to the owners of the parent company.
TMT TECHNOLOGY GROUP LIMITED
GROUP BALANCE SHEET
AS AT
31 JULY 2023
31 July 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
11
8,300
8,300
Other intangible assets
11
49,048
49,048
Total intangible assets
57,348
57,348
Tangible assets
12
581,306
647,756
638,654
705,104
Current assets
Stocks
15
1,571,106
2,078,556
Debtors
16
2,609,245
2,594,071
Cash at bank and in hand
887,575
205,705
5,067,926
4,878,332
Creditors: amounts falling due within one year
17
(3,439,042)
(2,588,426)
Net current assets
1,628,884
2,289,906
Total assets less current liabilities
2,267,538
2,995,010
Creditors: amounts falling due after more than one year
18
(1,304,415)
(1,819,229)
Provisions for liabilities
Deferred tax liability
21
61,415
63,262
(61,415)
(63,262)
Net assets
901,708
1,112,519
Capital and reserves
Called up share capital
23
11,000
11,000
Profit and loss reserves
890,708
1,101,519
Total equity
901,708
1,112,519
The financial statements were approved and signed by the director and authorised for issue on 25 July 2024
25 July 2024
Mr A R Whitehouse
Director
Company registration number 06238305 (England and Wales)
TMT TECHNOLOGY GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 31 JULY 2023
31 July 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
13
9,000
9,000
Current assets
Debtors
16
154,260
29,260
Cash at bank and in hand
3,491
3,466
157,751
32,726
Creditors: amounts falling due within one year
17
(41,328)
(41,328)
Net current assets/(liabilities)
116,423
(8,602)
Total assets less current liabilities
125,423
398
Creditors: amounts falling due after more than one year
18
(110,706)
(295,681)
Net assets/(liabilities)
14,717
(295,283)
Capital and reserves
Called up share capital
23
11,000
11,000
Profit and loss reserves
3,717
(306,283)
Total equity
14,717
(295,283)

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 £540,000 (2022 - £0 profit).

The financial statements were approved and signed by the director and authorised for issue on 25 July 2024
25 July 2024
Mr A R Whitehouse
Director
Company registration number 06238305 (England and Wales)
TMT TECHNOLOGY GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2023
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 August 2021
11,000
1,075,614
1,086,614
Year ended 31 July 2022:
Profit and total comprehensive income
-
25,905
25,905
Balance at 31 July 2022
11,000
1,101,519
1,112,519
Year ended 31 July 2023:
Profit and total comprehensive income
-
19,189
19,189
Dividends
10
-
(230,000)
(230,000)
Balance at 31 July 2023
11,000
890,708
901,708
TMT TECHNOLOGY GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2023
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 August 2021
11,000
(306,283)
(295,283)
Year ended 31 July 2022:
Profit and total comprehensive income for the year
-
-
-
0
Balance at 31 July 2022
11,000
(306,283)
(295,283)
Year ended 31 July 2023:
Profit and total comprehensive income
-
540,000
540,000
Dividends
10
-
(230,000)
(230,000)
Balance at 31 July 2023
11,000
3,717
14,717
TMT TECHNOLOGY GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JULY 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
858,354
161,723
Interest paid
(119,382)
(49,379)
Income taxes refunded
361,215
202,204
Net cash inflow from operating activities
1,100,187
314,548
Investing activities
Purchase of tangible fixed assets
(94,740)
(129,561)
Repayment of loans
(171,721)
-
Interest received
820
291
Net cash used in investing activities
(265,641)
(129,270)
Financing activities
Repayment of borrowings
155,000
(155,000)
Repayment of bank loans
(100,000)
(116,667)
Payment of finance leases obligations
22,324
24,991
Dividends paid to equity shareholders
(230,000)
-
0
Net cash used in financing activities
(152,676)
(246,676)
Net increase/(decrease) in cash and cash equivalents
681,870
(61,398)
Cash and cash equivalents at beginning of year
205,705
267,103
Cash and cash equivalents at end of year
887,575
205,705
TMT TECHNOLOGY GROUP LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JULY 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
28
(166,328)
(41,328)
Investing activities
Dividends received
540,000
-
0
Net cash generated from/(used in) investing activities
540,000
-
Financing activities
Repayment of borrowings
(143,647)
94,708
Repayment of bank loans
-
(50,000)
Dividends paid to equity shareholders
(230,000)
-
Net cash (used in)/generated from financing activities
(373,647)
44,708
Net increase in cash and cash equivalents
25
3,380
Cash and cash equivalents at beginning of year
3,466
86
Cash and cash equivalents at end of year
3,491
3,466
TMT TECHNOLOGY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
- 16 -
1
Accounting policies
Company information

TMT Technology Group Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Holditch House, Holditch Road, Newcastle under Lyme, Staffordshire, ST5 9JQ.

 

The group consists of TMT Technology Group Ltd 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 TMT Technology Group Ltd 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 31 July 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.

TMT TECHNOLOGY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 17 -
1.4
Going concern

At the time of approving the financial statements, the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues 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 goods and 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.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.6
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.7
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.

 

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.

1.8
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:

Development costs
10% straight line
TMT TECHNOLOGY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 18 -
1.9
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:

Leasehold improvements
10% straight line
Plant and equipment
25% straight line
Fixtures and fittings
25% straight line
Computers
33% straight line
Motor vehicles
33% straight line

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.

1.10
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.

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

1.11
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.

TMT TECHNOLOGY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 19 -

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.

1.12
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.13
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.

1.14
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.

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.

TMT TECHNOLOGY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 20 -
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.

Other financial liabilities

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.

TMT TECHNOLOGY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 21 -
1.15
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.

1.16
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.

1.17
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.

1.18
Retirement benefits

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

1.19
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

TMT TECHNOLOGY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 22 -
1.20
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the director is 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 geographical market
UK
18,166,289
14,987,541
Europe
190,203
105,426
Rest of the World
74,715
-
18,431,207
15,092,967
2023
2022
£
£
Other revenue
Interest income
820
291
Grants received
2,543
8,641
4
Operating loss
2023
2022
£
£
Operating loss for the year is stated after charging/(crediting):
Exchange losses/(gains)
1,787
(1,917)
Government grants
(2,543)
(8,641)
Depreciation of owned tangible fixed assets
161,190
157,112
TMT TECHNOLOGY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 23 -
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
8,500
8,000
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
Operations
103
108
-
-
Directors
42
21
1
1
Total
145
129
1
1

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
3,248,325
2,525,242
-
0
-
0
Social security costs
264,465
212,765
-
-
Pension costs
53,158
42,738
-
0
-
0
3,565,948
2,780,745
-
0
-
0
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
820
18
Other interest income
-
273
Total income
820
291
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
820
18
TMT TECHNOLOGY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 24 -
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
20,612
7,926
Interest on invoice finance arrangements
64,294
17,630
84,906
25,556
Other finance costs:
Interest on finance leases and hire purchase contracts
34,476
23,823
Total finance costs
119,382
49,379
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
(187,036)
(255,000)
Deferred tax
Origination and reversal of timing differences
18,212
(11,368)
Adjustment in respect of prior periods
(26,904)
(24,673)
Total deferred tax
(8,692)
(36,041)
Total tax credit
(195,728)
(291,041)

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

2023
2022
£
£
Loss before taxation
(176,539)
(265,136)
Expected tax credit based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
(33,542)
(50,376)
Tax effect of expenses that are not deductible in determining taxable profit
33,883
33,185
Tax effect of income not taxable in determining taxable profit
(20,792)
(30,519)
Unutilised tax losses carried forward
20,451
47,687
Change in unrecognised deferred tax assets
18,212
(11,344)
Research and development tax credit
(187,036)
(255,000)
Deferred tax adjustments in respect of prior years
(26,904)
(24,674)
Taxation credit
(195,728)
(291,041)
TMT TECHNOLOGY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 25 -
10
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
230,000
-
11
Intangible fixed assets
Group
Goodwill
Development costs
Total
£
£
£
Cost
At 1 August 2022 and 31 July 2023
8,300
49,048
57,348
Amortisation and impairment
At 1 August 2022 and 31 July 2023
-
0
-
0
-
0
Carrying amount
At 31 July 2023
8,300
49,048
57,348
At 31 July 2022
8,300
49,048
57,348
The company had no intangible fixed assets at 31 July 2023 or 31 July 2022.
12
Tangible fixed assets
Group
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 August 2022
725,386
91,580
154,804
814,877
7,862
1,794,509
Additions
6,155
-
0
7,712
62,173
18,700
94,740
At 31 July 2023
731,541
91,580
162,516
877,050
26,562
1,889,249
Depreciation and impairment
At 1 August 2022
422,305
20,397
127,975
573,183
2,893
1,146,753
Depreciation charged in the year
62,177
15,937
8,395
67,953
6,728
161,190
At 31 July 2023
484,482
36,334
136,370
641,136
9,621
1,307,943
Carrying amount
At 31 July 2023
247,059
55,246
26,146
235,914
16,941
581,306
At 31 July 2022
303,081
71,183
26,829
241,694
4,969
647,756
The company had no tangible fixed assets at 31 July 2023 or 31 July 2022.
TMT TECHNOLOGY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 26 -
13
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
9,000
9,000
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 August 2022 and 31 July 2023
9,000
Carrying amount
At 31 July 2023
9,000
At 31 July 2022
9,000
14
Subsidiaries

Details of the company's subsidiaries at 31 July 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
TMT First Limited
England
Ordinary
100.00
Mobile Phone Solutions Limited
England
Ordinary
100.00

The following subsidiary company is exempt from the requirements of the Companies Act 2006 relating

to the audit of individual accounts by virtue of S479A:-

 

Mobile Phone Solutions Limited - Company Registered Number - 04391290

15
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Work in progress
69,799
321,766
-
-
Finished goods and goods for resale
1,501,307
1,756,790
-
0
-
0
1,571,106
2,078,556
-
-
TMT TECHNOLOGY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 27 -
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,075,934
1,456,312
-
0
-
0
Corporation tax recoverable
187,036
334,311
-
0
-
0
Amounts owed by group undertakings
-
-
125,000
-
Other debtors
844,400
327,838
-
0
-
0
Prepayments and accrued income
253,597
207,273
-
0
-
0
2,360,967
2,325,734
125,000
-
Deferred tax asset (note 21)
248,278
268,337
29,260
29,260
2,609,245
2,594,071
154,260
29,260
17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
19
100,000
100,000
-
0
-
0
Obligations under finance leases
20
16,434
11,236
-
0
-
0
Trade creditors
1,671,484
1,045,136
-
0
-
0
Other taxation and social security
181,629
185,201
-
-
Other creditors
1,319,526
1,185,174
41,328
41,328
Accruals and deferred income
149,969
61,679
-
0
-
0
3,439,042
2,588,426
41,328
41,328
18
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
19
225,000
325,000
-
0
-
0
Obligations under finance leases
20
45,082
27,956
-
0
-
0
Other borrowings
19
-
0
(155,000)
-
0
143,647
Other creditors
1,034,333
1,621,273
110,706
152,034
1,304,415
1,819,229
110,706
295,681
TMT TECHNOLOGY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 28 -
19
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
325,000
425,000
-
0
-
0
Loans from group undertakings
-
0
-
0
-
0
298,647
Other loans
-
0
(155,000)
-
0
(155,000)
325,000
270,000
-
143,647
Payable within one year
100,000
100,000
-
0
-
0
Payable after one year
225,000
170,000
-
0
143,647

The bank loans are secured by fixed charges and floating charges over all the property or undertakings of the company.

20
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
16,434
11,236
-
0
-
0
In two to five years
34,024
18,290
-
0
-
0
In over five years
11,058
9,666
-
0
-
0
61,516
39,192
-
-

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

21
Deferred taxation

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

Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Group
£
£
£
£
Accelerated capital allowances
61,415
63,262
-
-
Tax losses
-
-
248,278
268,337
61,415
63,262
248,278
268,337
TMT TECHNOLOGY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
21
Deferred taxation
(Continued)
- 29 -
Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Company
£
£
£
£
Tax losses
-
-
29,260
29,260
Group
Company
2023
2023
Movements in the year:
£
£
Asset at 1 August 2022
(205,075)
(29,260)
Charge to profit or loss
18,212
-
Asset at 31 July 2023
(186,863)
(29,260)

The deferred tax asset set out above is expected to reverse in future periods (but not within the next 12 months) and relates to the utilisation of tax losses against future expected profits of the same period.

22
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
53,158
42,738

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.

23
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
11,000
11,000
11,000
11,000
24
Related party transactions

Transactions concerning directors and companies under common control.

 

The company has taken advantage of the exemption available under FRS 102 section 33.1A from disclosing transactions with other wholly owned subsidiaries of TMT Technology Group Limited.

 

As at 31 July 2023 the following amounts were owed to the TMT First Limited by related parties:

Westfield Ventures Limited £140,273 (2022 - £55,000)

Bespoke Fridges Limited £36,726 (2022 - £31,224)

The director, Mr Adam Whitehouse is a director and shareholder of both the above companies.

TMT TECHNOLOGY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 30 -
25
Controlling party

The ultimate controlling party is the director, Mr A Whitehouse, by virtue of his interest in the issued share capital.

26
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
19,189
25,905
Adjustments for:
Taxation credited
(195,728)
(291,041)
Finance costs
119,382
49,379
Investment income
(820)
(291)
Depreciation and impairment of tangible fixed assets
161,189
157,112
Movements in working capital:
Decrease/(increase) in stocks
507,451
(417,055)
Increase in debtors
(10,787)
(94,656)
Increase in creditors
258,478
732,370
Cash generated from operations
858,354
161,723
27
Analysis of changes in net funds/(debt) - group
1 August 2022
Cash flows
31 July 2023
£
£
£
Cash at bank and in hand
205,705
681,870
887,575
Borrowings excluding overdrafts
(270,000)
(55,000)
(325,000)
Obligations under finance leases
(39,192)
(22,324)
(61,516)
(103,487)
604,546
501,059
28
Cash absorbed by operations - company
2023
2022
£
£
Profit for the year after tax
540,000
-
Adjustments for:
Investment income
(540,000)
-
0
Movements in working capital:
Increase in debtors
(125,000)
-
Decrease in creditors
(41,328)
(41,328)
Cash absorbed by operations
(166,328)
(41,328)
TMT TECHNOLOGY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 31 -
29
Analysis of changes in net funds/(debt) - company
1 August 2022
Cash flows
31 July 2023
£
£
£
Cash at bank and in hand
3,466
25
3,491
Borrowings excluding overdrafts
(143,647)
143,647
-
(140,181)
143,672
3,491
2023-07-312022-08-01falseCCH SoftwareCCH Accounts Production 2024.100Mr A R WhitehouseMrs Louise 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