Caseware UK (AP4) 2023.0.135 2023.0.135 2023-05-312023-05-314182falsetruetruetruetruetrue91true2022-06-01104false 02730700 2022-06-01 2023-05-31 02730700 2021-06-01 2022-05-31 02730700 2023-05-31 02730700 2022-05-31 02730700 2021-06-01 02730700 c:Exceptional 2022-06-01 2023-05-31 02730700 c:Exceptional 2021-06-01 2022-05-31 02730700 d:CompanySecretary1 2022-06-01 2023-05-31 02730700 d:Director1 2022-06-01 2023-05-31 02730700 d:Director1 2023-05-31 02730700 d:Director2 2022-06-01 2023-05-31 02730700 d:Director3 2022-06-01 2023-05-31 02730700 d:RegisteredOffice 2022-06-01 2023-05-31 02730700 c:Buildings c:LongLeaseholdAssets 2022-06-01 2023-05-31 02730700 c:Buildings c:LongLeaseholdAssets 2023-05-31 02730700 c:Buildings c:LongLeaseholdAssets 2022-05-31 02730700 c:Buildings c:ShortLeaseholdAssets 2022-06-01 2023-05-31 02730700 c:PlantMachinery 2022-06-01 2023-05-31 02730700 c:PlantMachinery 2023-05-31 02730700 c:PlantMachinery 2022-05-31 02730700 c:PlantMachinery c:OwnedOrFreeholdAssets 2022-06-01 2023-05-31 02730700 c:PlantMachinery c:LeasedAssetsHeldAsLessee 2022-06-01 2023-05-31 02730700 c:MotorVehicles 2022-06-01 2023-05-31 02730700 c:MotorVehicles 2023-05-31 02730700 c:MotorVehicles 2022-05-31 02730700 c:MotorVehicles c:OwnedOrFreeholdAssets 2022-06-01 2023-05-31 02730700 c:MotorVehicles c:LeasedAssetsHeldAsLessee 2022-06-01 2023-05-31 02730700 c:FurnitureFittings 2022-06-01 2023-05-31 02730700 c:FurnitureFittings 2023-05-31 02730700 c:FurnitureFittings 2022-05-31 02730700 c:FurnitureFittings c:OwnedOrFreeholdAssets 2022-06-01 2023-05-31 02730700 c:FurnitureFittings c:LeasedAssetsHeldAsLessee 2022-06-01 2023-05-31 02730700 c:OwnedOrFreeholdAssets 2022-06-01 2023-05-31 02730700 c:LeasedAssetsHeldAsLessee 2022-06-01 2023-05-31 02730700 c:PatentsTrademarksLicencesConcessionsSimilar 2023-05-31 02730700 c:PatentsTrademarksLicencesConcessionsSimilar 2022-05-31 02730700 c:Goodwill 2022-06-01 2023-05-31 02730700 c:Goodwill 2023-05-31 02730700 c:Goodwill 2022-05-31 02730700 c:CopyrightsPatentsTrademarksServiceOperatingRights 2022-06-01 2023-05-31 02730700 c:CurrentFinancialInstruments 2023-05-31 02730700 c:CurrentFinancialInstruments 2022-05-31 02730700 c:Non-currentFinancialInstruments 2023-05-31 02730700 c:Non-currentFinancialInstruments 2022-05-31 02730700 c:CurrentFinancialInstruments c:WithinOneYear 2023-05-31 02730700 c:CurrentFinancialInstruments c:WithinOneYear 2022-05-31 02730700 c:Non-currentFinancialInstruments c:AfterOneYear 2023-05-31 02730700 c:Non-currentFinancialInstruments c:AfterOneYear 2022-05-31 02730700 e:UnitedKingdom 2022-06-01 2023-05-31 02730700 e:UnitedKingdom 2021-06-01 2022-05-31 02730700 e:RestEuropeOutsideUK 2022-06-01 2023-05-31 02730700 e:RestEuropeOutsideUK 2021-06-01 2022-05-31 02730700 e:RestWorldOutsideUK 2022-06-01 2023-05-31 02730700 e:RestWorldOutsideUK 2021-06-01 2022-05-31 02730700 c:UKTax 2022-06-01 2023-05-31 02730700 c:UKTax 2021-06-01 2022-05-31 02730700 c:ShareCapital 2023-05-31 02730700 c:ShareCapital 2022-05-31 02730700 c:CapitalRedemptionReserve 2022-06-01 2023-05-31 02730700 c:OtherMiscellaneousReserve 2023-05-31 02730700 c:OtherMiscellaneousReserve 2022-05-31 02730700 c:RetainedEarningsAccumulatedLosses 2022-06-01 2023-05-31 02730700 c:RetainedEarningsAccumulatedLosses 2023-05-31 02730700 c:RetainedEarningsAccumulatedLosses c:PriorPeriodIncreaseDecrease 2022-06-01 2023-05-31 02730700 c:RetainedEarningsAccumulatedLosses 2021-06-01 2022-05-31 02730700 c:RetainedEarningsAccumulatedLosses 2022-05-31 02730700 c:RetainedEarningsAccumulatedLosses c:PriorPeriodIncreaseDecrease 2021-06-01 2022-05-31 02730700 c:RetainedEarningsAccumulatedLosses 2021-06-01 02730700 c:AcceleratedTaxDepreciationDeferredTax 2023-05-31 02730700 c:AcceleratedTaxDepreciationDeferredTax 2022-05-31 02730700 c:TaxLossesCarry-forwardsDeferredTax 2023-05-31 02730700 c:TaxLossesCarry-forwardsDeferredTax 2022-05-31 02730700 c:FurtherSpecificTypeProvisionContingentLiability2ComponentTotalProvisionsContingentLiabilities 2023-05-31 02730700 c:FurtherSpecificTypeProvisionContingentLiability2ComponentTotalProvisionsContingentLiabilities 2022-05-31 02730700 d:OrdinaryShareClass1 2022-06-01 2023-05-31 02730700 d:OrdinaryShareClass1 2023-05-31 02730700 d:OrdinaryShareClass1 2022-05-31 02730700 d:FRS102 2022-06-01 2023-05-31 02730700 d:Audited 2022-06-01 2023-05-31 02730700 d:FullAccounts 2022-06-01 2023-05-31 02730700 d:PrivateLimitedCompanyLtd 2022-06-01 2023-05-31 02730700 c:Subsidiary1 2022-06-01 2023-05-31 02730700 c:Subsidiary1 1 2022-06-01 2023-05-31 02730700 c:Subsidiary2 2022-06-01 2023-05-31 02730700 c:Subsidiary2 1 2022-06-01 2023-05-31 02730700 c:WithinOneYear 2023-05-31 02730700 c:WithinOneYear 2022-05-31 02730700 c:BetweenOneFiveYears 2023-05-31 02730700 c:BetweenOneFiveYears 2022-05-31 02730700 c:HirePurchaseContracts c:WithinOneYear 2023-05-31 02730700 c:HirePurchaseContracts c:WithinOneYear 2022-05-31 02730700 c:HirePurchaseContracts c:BetweenOneFiveYears 2023-05-31 02730700 c:HirePurchaseContracts c:BetweenOneFiveYears 2022-05-31 02730700 4 2022-06-01 2023-05-31 02730700 6 2022-06-01 2023-05-31 02730700 c:PlantMachinery c:LeasedAssetsHeldAsLessee 2023-05-31 02730700 c:PlantMachinery c:LeasedAssetsHeldAsLessee 2022-05-31 02730700 c:MotorVehicles c:LeasedAssetsHeldAsLessee 2023-05-31 02730700 c:MotorVehicles c:LeasedAssetsHeldAsLessee 2022-05-31 02730700 c:LeasedAssetsHeldAsLessee 2023-05-31 02730700 c:LeasedAssetsHeldAsLessee 2022-05-31 iso4217:GBP xbrli:shares xbrli:pure

Registered number: 02730700









ETHOS COMMUNICATION SOLUTIONS LTD









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2023

 
ETHOS COMMUNICATION SOLUTIONS LTD
 
 
COMPANY INFORMATION


Directors
S E Yavuz 
M Norris 




Company secretary
S E Yavuz



Registered number
02730700



Registered office
72 Leadenhall Market

London

EC3V 1LT




Independent auditor
Barnes Roffe LLP
Chartered Accountants 
Statutory Auditors

Leytonstone House

Leytonstone

London

E11 1GA





 
ETHOS COMMUNICATION SOLUTIONS LTD
 

CONTENTS



Page
Strategic report
 
1 - 2
Directors' report
 
3 - 4
Independent auditor's report
 
5 - 8
Statement of income and retained earnings
 
9
Balance sheet
 
10 - 11
Notes to the financial statements
 
12 - 31


 
ETHOS COMMUNICATION SOLUTIONS LTD
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2023

Introduction
 
This is a balanced and comprehensive review of the performance of our business during the year and its position at the year end consistent with the size and nature of our business and is written in the context of the risks and uncertainties we face.

Business review
 
Ethos Communication Solutions is a provider of managed print, document, integrated solutions, and IT services in the UK. 
Headquartered in the City of London with two regional offices and operates across 40 countries, partnering with leading document and software solution providers. 
The results for Ethos Communication Solutions Limited is set out on page 9.
The year’s results of £18.6m turnover, £9.5m gross profit and £2.0m profit before tax and exceptional costs are at similar levels to prior years figures.
Ethos Communication Solutions will continue to innovate and transform into an IT centric organisation with managed print services at its core. Digitalisation, software, and IT services represent not only an extension of the Group's core activities but meets the growing needs of a lot of organisations to not only centralise information and make it available to a disparate work force, but to improve business and process efficiencies. Ethos is supporting their existing and prospective clients to develop and execute their digital transformation strategies and providing a clear path forward for those businesses who recognise the need for change.

Principal risks and uncertainties
 
Financial risk management objectives and policies
The directors are aware of the risks associated with a growing business and have implemented business process and management review policies to ensure that there is full visibility and managerial responsibility for the effect of gross margin and overheads on the business. 

Liquidity risk

Management closely monitors available bank and other credit facilities in comparison to the Company's outstanding commitments on a regular basis to ensure that the Company has sufficient funds to meet its obligations as they fall due. 
The Board receives regular debt management and cash forecasts which estimate the cash inflows and outflows over the next eighteen months, so that management can ensure that sufficient financing can be arranged as it is required. In addition, management monitors cash outflows on interest payments closely to ensure that the Company minimises its exposure to fluctuating interest rates.
Credit risk
Trade debtors are managed in respect of credit risk by policies relating to the credit offered to customers and the regular monitoring of amounts owed.

Page 1

 
ETHOS COMMUNICATION SOLUTIONS LTD
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023

Financial key performance indicators
 
The directors review and monitor all aspects of the business but consider that turnover, gross profit, EBITDA and EBITDA margins are the key performance indicators for the business. There are a number of operational KPIs that support these main ones and are monitored particularly around the service and performance.

The table below summarises the key performance indicators:
KPI                              2023         2022
Turnover (£'000s)       18,560      17,819
Gross profit (£'000s)     9,529        9,297 
Gross profit margin        51%          52%
EBITDA (£'000s)          2,445        2,386
EBITDA margin              13%          13%

The Board are happy that the company continue to achieve healthy margins and are confident that it will continue to maintain these margins. 


This report was approved by the board on 30 July 2024 and signed on its behalf.






S E Yavuz
Director 

Page 2

 
ETHOS COMMUNICATION SOLUTIONS LTD
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2023

The directors present their report and the financial statements for the year ended 31 May 2023.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Principal activity

The principal activity of the company during the period was the provision of equipment, services, consumables and the supply of digital document print, copy and management systems. 

Results and dividends

The profit for the year, after taxation, amounted to £1,778,038 (2022 - £2,183,416).

The directors do not recommend the payment of a final dividend. 

Directors

The directors who served during the year were:

B Matthews (resigned 1 September 2023)
S E Yavuz 

On 9 August 2023, M Norris and C Norris were appointed as directors. On 18 March 2024, C Norris resigned as a director.

Future developments

The Company plans to continue to grow across all business activities, capitalising on opportunities as deemed
appropriate.

Page 3

 
ETHOS COMMUNICATION SOLUTIONS LTD
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023

Research and development activities

The Company carries out certain research and development activities in the normal course of its business. 

Engagement with employees

The Company keeps employees informed of matters affecting them as employees and the financial and economic factors affecting the performance of the Company by the method of ad-hoc internal communications.

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

This report was approved by the board on 30 July 2024 and signed on its behalf.
 





S E Yavuz
Director

Page 4

 
ETHOS COMMUNICATION SOLUTIONS LTD
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ETHOS COMMUNICATION SOLUTIONS LTD
 

Opinion


We have audited the financial statements of Ethos Communication Solutions Ltd (the 'Company') for the year ended 31 May 2023, which comprise the Statement of income and retained earnings, the Balance sheet and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 May 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Page 5

 
ETHOS COMMUNICATION SOLUTIONS LTD
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ETHOS COMMUNICATION SOLUTIONS LTD (CONTINUED)


Other information


The directors are responsible for the other information. The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 


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.


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the 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:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Page 6

 
ETHOS COMMUNICATION SOLUTIONS LTD
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ETHOS COMMUNICATION SOLUTIONS LTD (CONTINUED)


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 3, 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 Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


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:

the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the relevant sector, including Companies Act 2006;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
laws and regulations identified were communicated with the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

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

making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations
 
To address the risk of fraud through management bias and override of controls, we:
 
reviewed the financial statement disclosures and tested to supporting documentation to assess compliance with provisions of relevant laws and regulations;
performed analytical procedures and tested journal entries to identify any unusual or unexpected relationships or transactions.

 
Page 7

 
ETHOS COMMUNICATION SOLUTIONS LTD
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ETHOS COMMUNICATION SOLUTIONS LTD (CONTINUED)


There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial statements, 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.  


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's report.


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our 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.





Gary Leonard (Senior statutory auditor)
for and on behalf of
Barnes Roffe LLP
Chartered Accountants
Statutory Auditor
Leytonstone House
Leytonstone
London
E11 1GA

30 July 2024
Page 8

 
ETHOS COMMUNICATION SOLUTIONS LTD
 
 
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 MAY 2023

2023
2022
Note
£
£

  

Turnover
 4 
18,560,363
17,818,624

Cost of sales
  
(9,031,299)
(8,521,489)

Gross profit
  
9,529,064
9,297,135

Distribution costs
  
(293,032)
(290,754)

Administrative expenses
  
(6,933,657)
(7,638,556)

Exceptional administrative expenses
  
(248,666)
(213,411)

Other operating income
 5 
2,000
850,913

Operating profit
 6 
2,055,709
2,005,327

Interest receivable and similar income
  
1,100
17,724

Interest payable and similar expenses
 10 
(93,074)
(303,996)

Profit before tax
  
1,963,735
1,719,055

Tax on profit
 11 
(185,697)
464,361

Profit after tax
  
1,778,038
2,183,416

-  as previously stated
  
7,975,244
13,281,625

-  correction of a prior period error
  
-
(4,489,797)

At the beginning of the year as restated
  
7,975,244
8,791,828

  

Profit for the year
  
1,778,038
2,183,416

Dividends declared and paid
  
-
(3,000,000)

Retained earnings at the end of the year
  
9,753,282
7,975,244

There were no recognised gains and losses for 2023 or 2022 other than those included in the statement of income and retained earnings.

The notes on pages 12 to 31 form part of these financial statements.

Page 9

 
ETHOS COMMUNICATION SOLUTIONS LTD
REGISTERED NUMBER: 02730700

BALANCE SHEET
AS AT 31 MAY 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 15 
204,949
286,742

Investments
 16 
8,899
8,899

  
213,848
295,641

Current assets
  

Stocks
 17 
1,671,031
1,985,865

Debtors: amounts falling due within one year
 18 
19,190,985
16,578,370

Cash at bank and in hand
 19 
157
101,315

  
20,862,173
18,665,550

Creditors: amounts falling due within one year
 20 
(10,850,835)
(10,453,254)

Net current assets
  
 
 
10,011,338
 
 
8,212,296

Total assets less current liabilities
  
10,225,186
8,507,937

Creditors: amounts falling due after more than one year
 21 
(78,184)
(138,973)

Provisions for liabilities
  

Other provisions
 24 
(25,720)
(25,720)

Net assets
  
10,121,282
8,343,244


Capital and reserves
  

Called up share capital 
 25 
300,000
300,000

Other reserves
 26 
68,000
68,000

Profit and loss account
 26 
9,753,282
7,975,244

  
10,121,282
8,343,244


Page 10

 
ETHOS COMMUNICATION SOLUTIONS LTD
REGISTERED NUMBER: 02730700
    
BALANCE SHEET (CONTINUED)
AS AT 31 MAY 2023

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 30 July 2024.




S E Yavuz
Director

The notes on pages 12 to 31 form part of these financial statements.

Page 11

 
ETHOS COMMUNICATION SOLUTIONS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

1.


General information

Ethos Communication Solutions Limited is a private company limited by shares and incorporated in England and Wales, United Kingdom. Its registered office is 72 Leadenhall Market, London, EC3V 1LT.

The principal activity of the Company during the period was the provision of equipment, services, consumables and the supply of digital document print, copy and management systems.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The level of rounding applied is to the nearest £. 

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Ethos Group Holdings  as at 31 May 2023 and these financial statements may be obtained from 72 Leadenhall Market, London, EC3V 1LT.

 
2.3

Exemption from preparing consolidated financial statements

The Company is a parent company that is also a subsidiary included in the consolidated financial statements of a larger group by a parent undertaking established under the law of a state other than the United Kingdom and is therefore exempt from the requirement to prepare consolidated financial statements under section 401 of the Companies Act 2006.

Page 12

 
ETHOS COMMUNICATION SOLUTIONS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

2.Accounting policies (continued)

 
2.4

Going concern

The company's business activities, executed management restructure, operating cost reduction, planned transformation, growth, together with the factors likely to affect its future development, it's financial position, financial risk management objectives, details of its financial instruments and derivative activities, and its exposures to price, credit, liquidity and cash flow risks are described in the Strategic Report on pages 1 to 2. 
The directors have considered the going concern basis of preparation of the financial statements, noting the result for the year, forecasts and plans going forward. The directors consider that the Company, with the ongoing support of the bank, has sufficient working capital and cash reserves to enable the company to continue trading for the foreseeable future and, on the basis of cash flow information prepared, will be sufficient for the company's needs. 
The company’s development, its financial position, financial risk management objectives, details of its business activities, together with the factors likely to affect its future financial instruments and derivative activities, and its exposures to price, credit, liquidity and cash flow risk have been assessed by the directors. The Company has considerable financial resources together with long-term contracts with several customers and suppliers across different geographic areas and industries. As a consequence, the directors believe that the company is well placed to manage its business risks successfully. 
The group has restructured its management team and other operational areas of the business to reduce operating costs by c£1.6m by Dec-24 on a proforma basis with the majority, c£1m already crystalised. Working with the bank, revised covenant levels have been agreed and the forecasts show they will be met. The forecasts have been independently reviewed. After making enquiries, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. On this basis, the directors consider it appropriate to prepare the financial statements on the going concern basis.

 
2.5

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

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

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

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Page 13

 
ETHOS COMMUNICATION SOLUTIONS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

2.Accounting policies (continued)

 
2.6

Turnover

Turnover  is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Turnover  is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Turnover on the sale of digital document printing, copying and management systems is recognised when an order is confirmed during the period and is either: 

1) Installed during the period, or;
                                                                                                                                                              
2) Would have been installed during the period but for a delay in delivery to meet the commercial objectives of the customer, or;
                                                                                                                                                               3) If relating to meterage, is recognised in the period in which it relates.
                                                                                                                                                                 All maintenance and service income is credited to the Statement of income and retained earnings in the period to which the income relates.

 
2.7

Operating leases: the Company as lessee

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

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

 
2.8

Leased assets: the Company as lessee

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

 
2.9

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

Page 14

 
ETHOS COMMUNICATION SOLUTIONS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

2.Accounting policies (continued)

 
2.10

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of income and retained earnings in the same period as the related expenditure.

 
2.11

Finance costs

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

 
2.12

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.13

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

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

Page 15

 
ETHOS COMMUNICATION SOLUTIONS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

2.Accounting policies (continued)

 
2.14

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.

 
2.15

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Statement of income and retained earnings over its useful economic life.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

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

 The estimated useful lives range as follows:

Goodwill
-
10
years
Trademarks
-
7
years

 
2.16

Tangible fixed assets

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

Page 16

 
ETHOS COMMUNICATION SOLUTIONS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

2.Accounting policies (continued)


2.16
Tangible fixed assets (continued)

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

Depreciation is provided on the following basis:

Product development
-
25%
Straight line
Leasehold improvements
-
20%
Straight line
Plant and machinery
-
25%
Straight line
Motor vehicles
-
25%
Straight line
Fixtures and fittings
-
20%
Straight line

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

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

 
2.17

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.18

Stocks

Stocks are stated at the lower of cost and net realisable value. Stocks consist of equipment, spare
parts and consumables.

The majority of stock relates to consumables parts that are held at customers premises. This stock
is expensed to the profit and loss account as it is used by the customer.

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

 
2.19

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.20

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. 

 
2.21

Creditors

Short-term creditors are measured at the transaction price. 

Page 17

 
ETHOS COMMUNICATION SOLUTIONS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

2.Accounting policies (continued)

 
2.22

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Balance sheet.

 
2.23

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of income and retained earnings.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

 
2.24

Dividends

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

Page 18

 
ETHOS COMMUNICATION SOLUTIONS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimated and assumptions 

The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

i) Useful economic lives of tangible assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 15 for the carrying amount of tangible assets.
                                                                                                                                                                                 ii) Impairment of debtors

The Company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors, and historical experience. See note 18 for the net carrying amount of the debtors.

iii) Stock
                                                                                                                                                        Consumable stocks held at customer premises are expensed to the profit and loss account as they are used. The Company makes an estimate of the estimated useful life/usage of the consumable stock. See note 17 for the carrying value of stock.


4.


Turnover

The whole of the turnover is attributable to the principal activity of the company. 

Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
18,296,939
17,580,858

Rest of Europe
263,019
227,327

Rest of the world
405
10,439

18,560,363
17,818,624


Page 19

 
ETHOS COMMUNICATION SOLUTIONS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

5.


Other operating income

2023
2022
£
£

Other operating income
2,000
664,255

CJRS Grant
-
186,658

2,000
850,913



6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Exchange differences
(13,122)
(10,169)

Other operating lease rentals
171,021
178,486

Depreciation of tangible fixed assets (charged to admin expenses)
141,268
163,612

Amortisation of intangible assets, including goodwill (charged to admin expenses)
-
4,262

Defined contribution pension cost
86,431
99,168


7.


Research and development expenditure

Included within the Statement of income and retained earnings were costs charged to cost of sales and administrative expenses in respect of research and development expenditure. 


8.


Auditor's remuneration

2023
2022
£
£

Fees payable to the Company's auditor for the audit of the Company's financial statements

32,000
30,000

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.

Page 20

 
ETHOS COMMUNICATION SOLUTIONS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

9.


Employees

Staff costs were as follows:


2023
2022
£
£

Wages and salaries
4,081,399
4,421,257

Social security costs
481,439
518,425

Cost of defined contribution scheme
86,431
99,168

4,649,269
5,038,850


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Administration
33
36



Services
40
46



Sales & Marketing
18
22

91
104


10.


Interest payable and similar expenses

2023
2022
£
£


Bank interest
81,257
78,922

Other loan interest
-
213,020

Finance leases and hire purchase contracts
11,817
12,054

93,074
303,996

Page 21

 
ETHOS COMMUNICATION SOLUTIONS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

11.


Taxation


2023
2022
£
£

Corporation tax


Adjustments in respect of previous periods
-
(205,694)


Deferred tax


Origination and reversal of timing differences
185,697
(258,667)


Taxation on profit/(loss) on ordinary activities
185,697
(464,361)

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - lower than) the standard rate of corporation tax in the UK of 25% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
1,963,735
1,719,055


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2022 - 19%)
490,934
326,620

Effects of:


Expenses not deductible for tax purposes
16,497
58,264

Capital allowances for year in excess of depreciation
11,586
(2,427)

Utilisation of tax losses
(334,853)
(382,151)

Adjustments to tax charge in respect of prior periods
-
(205,694)

Short-term timing difference leading to an increase (decrease) in taxation
185,697
-

Unrelieved tax losses carried forward
-
(196,900)

Other differences leading to an increase (decrease) in the tax charge
(22,057)
(161,117)

Group relief
(162,107)
99,044

Total tax charge for the year
185,697
(464,361)

Page 22

 
ETHOS COMMUNICATION SOLUTIONS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
 
11.Taxation (continued)


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


12.


Dividends

2023
2022
£
£


Dividends declared
-
3,000,000


13.


Exceptional items

2023
2022
£
£


Registration and restructuring costs
248,666
213,411

Page 23

 
ETHOS COMMUNICATION SOLUTIONS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

14.


Intangible assets




Trademarks
Goodwill
Total

£
£
£



Cost


At 1 June 2022
123,495
968,209
1,091,704



At 31 May 2023

123,495
968,209
1,091,704



Amortisation


At 1 June 2022
123,495
968,209
1,091,704



At 31 May 2023

123,495
968,209
1,091,704



Net book value



At 31 May 2023
-
-
-



At 31 May 2022
-
-
-



Page 24

 
ETHOS COMMUNICATION SOLUTIONS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

15.


Tangible fixed assets





Leasehold property improvements
Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£
£



Cost or valuation


At 1 June 2022
255,880
1,727,158
356,243
401,592
2,740,873


Additions
-
59,475
-
-
59,475



At 31 May 2023

255,880
1,786,633
356,243
401,592
2,800,348



Depreciation


At 1 June 2022
247,204
1,540,352
268,231
398,344
2,454,131


Charge for the year on owned assets
4,182
51,760
-
1,520
57,462


Charge for the year on financed assets
-
32,328
51,478
-
83,806



At 31 May 2023

251,386
1,624,440
319,709
399,864
2,595,399



Net book value



At 31 May 2023
4,494
162,193
36,534
1,728
204,949



At 31 May 2022
8,676
186,806
88,012
3,248
286,742




The net book value of land and buildings may be further analysed as follows:


2023
2022
£
£

Long leasehold
4,494
8,676


Page 25

 
ETHOS COMMUNICATION SOLUTIONS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

           15.Tangible fixed assets (continued)

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2023
2022
£
£



Plant and machinery
66,756
95,485

Motor vehicles
36,534
88,012

103,290
183,497


16.


Fixed asset investments





Investments in subsidiary companies

£



Cost or valuation


At 1 June 2022
8,899



At 31 May 2023
8,899





Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

Ethos Commmunication Solutions (Services) Limited
72 Leadenhall Market, London. EC3V 1LT
Ordinary
100%
Ethos Trustees Limited
72 Leadenhall Market, London. EC3V 1LT
Ordinary
100%


17.


Stocks

2023
2022
£
£

Finished goods and goods for resale
1,671,031
1,985,865


Page 26

 
ETHOS COMMUNICATION SOLUTIONS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

18.


Debtors

2023
2022
£
£


Trade debtors
1,345,729
1,726,886

Amounts owed by group and associated undertakings
14,926,953
12,247,174

Other debtors
2,060,959
1,553,993

Prepayments and accrued income
857,344
864,620

Deferred taxation
-
185,697

19,190,985
16,578,370


Included in other debtors is an amount of £122,002 (2022 - £122,002) which was contributed to an Employee Benefit Trust ("The EBT") which at the year end was held by the EBT for the benefit of employees of the company.


19.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
157
101,315

Less: bank overdrafts
(157,234)
-

(157,077)
101,315


Page 27

 
ETHOS COMMUNICATION SOLUTIONS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

20.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank overdrafts
157,234
-

Trade creditors
1,206,348
1,644,575

Amounts owed to group undertakings
5,117,421
3,875,397

Other taxation and social security
546,707
810,316

Obligations under finance lease and hire purchase contracts
97,616
47,062

Other creditors
1,593,912
2,079,898

Accruals and deferred income
2,131,597
1,996,006

10,850,835
10,453,254


Obligations under finance lease and hire purchase contracts of £97,616 (2022 - £47,062) are secured on the assets to which they relate.
The bank overdraft of £157,234
 (2022 - £Nil) is secured by a debenture. Security has also been provided by fellow subsidiary companies included within the Group.


21.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Net obligations under finance leases and hire purchase contracts
78,184
138,973


Obligations under finance lease and hire purchase contracts of £78,184 (2022 - £138,973) are secured on the assets to which they relate.


22.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

2023
2022
£
£


Within one year
97,616
47,062

Between 1-5 years
78,184
138,973

175,800
186,035

Page 28

 
ETHOS COMMUNICATION SOLUTIONS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

23.


Deferred taxation




2023
2022


£

£






At beginning of year
185,697
(17,007)


Movement during the year
(185,697)
202,704



At end of year
-
185,697

The deferred tax asset is made up as follows:

2023
2022
£
£


Accelerated capital allowances
-
(11,203)

Tax losses carried forward
-
196,900

-
185,697


24.


Provisions




Dilapidation provision

£





At 1 June 2022
25,720



At 31 May 2023
25,720

A provision has been made to reflect the director's best current estimates of repairs and other costs required to satisfy the terms of the property lease agreements. The timing of the utilisation of the provision will be in line with the lease agreement. 


25.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



300,000 (2022 - 300,000) Ordinary shares shares of £1.00 each
300,000
300,000


Page 29

 
ETHOS COMMUNICATION SOLUTIONS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

26.


Reserves

Capital redemption reserve

A non-distributable reserve into which amounts are transferred following the redemption or purchase of a
company's own shares.

Profit and loss account

Includes all current and prior period retained profits and losses less any dividends paid.


27.


Contingent liabilities

The Company is part of a VAT registration, together with Ethos Group Holdings Limited and Ethos Documents Solutions Limited, and as such is jointly and severally liable for the VAT liabilities of the other members of the VAT group. 
There is an unlimited cross-guarantee in respect of bank balances of group companies. 


28.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £86,431 (2022 - £99,168). Contributions totalling £19,096 (2022 - £23,114) were payable to the fund at the balance sheet date and are included in creditors.


29.


Commitments under operating leases

At 31 May 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
200,887
274,332

Later than 1 year and not later than 5 years
149,302
353,744

350,189
628,076

Page 30

 
ETHOS COMMUNICATION SOLUTIONS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

30.


Transactions with directors

During the year, the following transactions occurred with the directors:

2023
2022
£
£
Balance brought forward

651,195

647,605
 
Advances and interest

606,808

689,830
 
Repayments

(150,000)

(686,240)
 
Balance carried forward
1,108,003

651,195
 

Interest in charged at the H M Revenue & Customs beneficial loan rate applicable on each transaction during the period.


31.


Related party transactions

The Company has taken advantage of the exemption available not to disclose related party transactions with companies that are wholly owned within the Group.
                                                                                                                                                                                                                      At the year end an amount of £449,984
 (2022 - £449,984) was owed form associated undertakings in which the directors have a controlling interest. 

Included within other creditors at the year end are amounts of £100,258 (2022 - £288,819) owed to a director of the Company. 


32.


Controlling party

Ethos Group Holdings Limited is the ultimate parent company.

Ethos Group Holdings Limited prepre group financial statements and copies can be obtained from 72
Leadenhall Market, London, EC3V 1LT.

The ultimate controlling party is Michelle Norris.

 
Page 31