REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTOR AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
FOR |
COMPASS SUPPLY SOLUTIONS LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTOR AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
FOR |
COMPASS SUPPLY SOLUTIONS LIMITED |
COMPASS SUPPLY SOLUTIONS LIMITED (REGISTERED NUMBER: 03176107) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Director | 5 |
Report of the Independent Auditors | 7 |
Statement of Comprehensive Income | 11 |
Balance Sheet | 12 |
Statement of Changes in Equity | 13 |
Notes to the Financial Statements | 14 |
COMPASS SUPPLY SOLUTIONS LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
DIRECTOR: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
30 - 34 North Street |
Hailsham |
East Sussex |
BN27 1DW |
COMPASS SUPPLY SOLUTIONS LIMITED (REGISTERED NUMBER: 03176107) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
The director presents his strategic report for the year ended 31 October 2023. |
REVIEW OF BUSINESS |
We are an industry leading supply & distribution expert to the global travel retail industry, backed by the infrastructure and personnel to make the company the largest UK based duty-free FMCG provider within 5 years. Our network of preferred partners provides us with the scale, focus and execution to provide specialist logistics, distribution and consolidation, supplying tailor-made, bespoke delivery options to guarantee ease, expediency and exceptional customer service to our busy clients. |
Over the next few years, we will continue to extend our reach within both the international Aviation and Maritime sectors, opening up new supply routes into domestic and international Military, NATO and Duty-Free Retail, while continuing to grow our historic UK customer base. |
Key Performance Indicators of the company |
The below key performance indicators are used by the director to measure the group's success against tangible objectives and target setting: |
2023 Actual |
2022 Actual |
Yr-on-Yr Change |
2023 Budget |
2022 Budget |
Yr-on-Yr Change |
£ | £ | % | £ | £ | % |
Turnover(Ex VAT) |
13,505,763 |
10,949,582 |
23% |
12,774,904 |
10,000,546 |
28% |
Gross Profit | 2,820,392 | 2,390,437 | 18% | 2,666,702 | 2,042,310 | 31% |
Margin | 21% | 22% | 20% |
We track our performance using a mixture of financial and non-financial measures, which we believe best reflect our strategic priorities for growth, efficiency and shareholder returns underpinned by safe and responsible working practices. |
COMPASS SUPPLY SOLUTIONS LIMITED (REGISTERED NUMBER: 03176107) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES |
In addition to the ongoing competitive pressures, the principal risks facing the company are the continued economic uncertainty due to Covid-19 and the impact this has on the recovery of the Duty-Free Travel sector, increased regulation post Brexit and security concerns that impact upon the travel and tourist industry. The director continues to assess the implications of these risks and mitigate them by working closely with our core customers and suppliers to manage the current economic uncertainty and sector security concerns whilst continuing to manage and improve our robust due diligence process. |
Going concern |
The director has considered it appropriate to prepare these financial statements on a going concern basis. |
The company is closely monitored by the director and the after effect of the pandemic on the hospitality industry. The company has seen an increase in the trading following the easing of lockdown measures and continues to receive support from its bankers and parent company. In addition, forecasts have been prepared which indicate the company will have sufficient funds to meet its liabilities. The company has access to cash balances, if required, from associated companies and beneficial owners and is therefore well placed to cover working capital and funding requirements. |
Credit risk |
The company's main financial assets are cash and trade debtors. The director considers there to be minimal risk in relation to the company's cash balances as these are all held at reputable financial institutions. The director manages credit risk in respect of the company's trade debtors by reviewing and stipulating credit limits for all customers. The company has implemented policies to undertake due diligence and credit checks on customers to manage credit risk. |
Liquidity risk |
The company actively manages its liquidity risk in order to meet its foreseeable needs both in the short term and medium term. |
Currency risk |
A small proportion of the company's sales and purchases are denominated in currencies other than Sterling. Therefore, the directors consider there to be limited exposure to currency risk and where limited risk arises, the company makes use of short term forward currency contracts as required. |
FUTURE PROSPECTS AND COVID 19 |
The company has implemented measures to ensure our skilled workforce are retained. With our staff and our financial investors remaining strong, this places the company in a very strong position to take advantage of the forthcoming travel boom. We are already seeing a growth due to the company fulfilling the underlying needs of customers where many of our competitors have not fared so well. |
As we continue to drive forward our award-winning Global Travel Retail and Bonded Solutions business(es) within the wider group, investing in talent, supporting the modern-day apprenticeship schemes and vital real world experience is fundamental to our continued success and the retention of people. |
The group contains a general storage & distribution warehouse; we see huge potential to compete against not only the main UK bonds, but with borders returning to the UK following Brexit, we are competing with the major EU bonds exporting outside the EU. |
COMPASS SUPPLY SOLUTIONS LIMITED (REGISTERED NUMBER: 03176107) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
THANKS |
No business is successful without the full support and commitment of its employees. The result for the year is built on their dedication and hard work for which the Board would like to thank them. |
ON BEHALF OF THE BOARD: |
COMPASS SUPPLY SOLUTIONS LIMITED (REGISTERED NUMBER: 03176107) |
REPORT OF THE DIRECTOR |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
The director presents his report with the financial statements of the company for the year ended 31 October 2023. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 October 2023. |
DIRECTORS |
The directors who have held office during the period from 1 November 2022 to the date of this report are as follows: |
DISCLOSURE IN THE STRATEGIC REPORT |
In accordance with s414C(11) of the Companies Act 2006, the information relating to risk management and future developments is included in the Strategic Report. |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Strategic Report, the Report of the Director 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
COMPASS SUPPLY SOLUTIONS LIMITED (REGISTERED NUMBER: 03176107) |
REPORT OF THE DIRECTOR |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
AUDITORS |
The auditors, Watson Associates (Audit Services) Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
COMPASS SUPPLY SOLUTIONS LIMITED |
Opinion |
We have audited the financial statements of Compass Supply Solutions Limited (the 'company') for the year ended 31 October 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 October 2023 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the 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 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 director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
COMPASS SUPPLY SOLUTIONS LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Director. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of director's remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of director |
As explained more fully in the Statement of Director's Responsibilities set out on page five, 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 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 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 company or to cease operations, or has no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
COMPASS SUPPLY SOLUTIONS LIMITED |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to employment laws and we considered the extent to which non-compliance might have a material effect on the financial statements. |
We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determine that the principal risks were related to posting inappropriate journal entries to achieve desired financial results and the manipulation of exceptional items and management bias in accounting estimates. |
Audit procedures performed by the engagement team included: |
- enquiries with management, including consideration of known or suspected instances of fraud and non-compliance with laws and regulations and examining supporting calculations where a provision has been made in respect of these; |
- reading key correspondence with regulatory authorities in relation to compliance with certain employment laws; |
- understanding and evaluating the design and implementation of management’s controls designed to prevent and detect irregularities; |
- challenging assumptions and judgements made by management in their significant accounting estimates, in particular in relation to valuation of investment property, impairment of investments in subsidiaries and the measurement and classification of exceptional items; |
- identifying and testing journal entries, in particular any journal entries posted with unusual account combinations and postings by unusual users. |
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
COMPASS SUPPLY SOLUTIONS LIMITED |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
30 - 34 North Street |
Hailsham |
East Sussex |
BN27 1DW |
COMPASS SUPPLY SOLUTIONS LIMITED (REGISTERED NUMBER: 03176107) |
STATEMENT OF COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 4 |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT |
Administrative expenses | ( |
) | ( |
) |
OPERATING PROFIT | 6 |
Interest receivable and similar income |
646,085 | 663,501 |
Interest payable and similar expenses | 8 | ( |
) | ( |
) |
PROFIT BEFORE TAXATION |
Tax on profit | 9 | ( |
) | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
COMPASS SUPPLY SOLUTIONS LIMITED (REGISTERED NUMBER: 03176107) |
BALANCE SHEET |
31 OCTOBER 2023 |
2023 | 2022 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
CURRENT ASSETS |
Stocks | 13 |
Debtors | 14 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 15 | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
16 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 20 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Retained earnings |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the director and authorised for issue on |
COMPASS SUPPLY SOLUTIONS LIMITED (REGISTERED NUMBER: 03176107) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 November 2021 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 October 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 October 2023 |
COMPASS SUPPLY SOLUTIONS LIMITED (REGISTERED NUMBER: 03176107) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
1. | STATUTORY INFORMATION |
Compass Supply Solutions Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of Section 7 Statement of Cash Flows. |
Preparation of consolidated financial statements |
The financial statements contain information about Compass Supply Solutions Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 399(2A) of the Companies Act 2006 from the requirements to prepare consolidated financial statements. |
Significant judgements and estimates |
In the process of applying the company's accounting policies management has made the following judgements that have the most significant effect on the amounts recognised in the financial statements. |
The key assumptions concerning the future, and other key sources of estimation uncertainty at the balance sheet date, that have significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are also discussed below: |
Impairment of trade receivables (including off-invoice discounts and rebates) |
Balances owed from third parties are reviewed for impairment on a regular basis and whenever events or circumstance indicate that the related balance may not be recoverable. Management undertake such steps as they consider necessary to minimise risk of impairment including the use of credit references and insurance against debtor default. |
Stock obsolescence |
Management review all stock lines on a regular basis and whenever an indication exists that individual lines may be over-valued, an appropriate adjustment is made. Stock is held at the lower of cost and net realisable value. |
COMPASS SUPPLY SOLUTIONS LIMITED (REGISTERED NUMBER: 03176107) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Revenue |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as fair value of the consideration received or receivable, excluding rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised: |
Sale of goods |
Revenue from the sale of goods is recognised when all of the following conditions are satisfied; |
- the company has transferred the significant risks and rewards of ownership to the buyer; the company retains neither continuing managerial involvement to the degree usually associated with |
- ownership nor effective control over the goods sold; |
- the amount of revenue can be reliably measured |
- it is probable that the company will receive the consideration due under the transaction; and |
- the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
Goodwill |
Goodwill represents the difference between amounts paid on the cost of a business combination and the aquirer's interest in the fair value of the identifiable assets and liabilities of the aquiree at the date of aquisition. Subsequent to initial recognition, Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill has been fully amortised. |
Tangible fixed assets |
Short leasehold | - |
Fixtures and fittings | - |
Motor vehicles | - |
Investments in subsidiaries |
Investments in subsidiaries are measured at cost less accumulated impairment. |
Investments in unlisted company shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the profit and loss for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of the purchase on a first in, first out basis and is stated net of contributions from suppliers under trade agreements. |
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 the profit and loss account. |
COMPASS SUPPLY SOLUTIONS LIMITED (REGISTERED NUMBER: 03176107) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The company only enters into basic financial instruments transactions that result in the recognition of the financial assets and liabilities like trade and other accounts receivable and payable, loans from bank and other third parties, and loans to related parties. |
Debt instruments that are payable or receivable within one year, are measured, initially and subsequently at the undiscounted amount of the cash or other consideration expected to be paid or received; other debt instruments are initially measured at present value of the future payments and subsequently at the amortised cost using the effective interest method |
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 profit or loss. |
Financial assets and liabilities are offset and the net amount reported in the balance sheet only when there is an enforceable right to set off the recognised amounts and there is no intention to settle on a net basis or to realise the asset and settle the liability simultaneously. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
COMPASS SUPPLY SOLUTIONS LIMITED (REGISTERED NUMBER: 03176107) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Employee benefits |
The costs of short-term employee benefits are recognised as a liability and an expense. |
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. |
Going concern |
The directors considers it appropriate to prepare these financial statements on a going concern basis. |
The company is closely monitored by the director and the after effect of the pandemic on the hospitality industry. The company has seen an increase in trading following the easing of lockdown measures and continues to receive support from its bankers and parent company. In addition, forecasts have been prepared which indicate the company will have sufficient funds to meet its liabilities. The company has access to cash balances, if required, from associates companies and beneficial owners and is therefore well placed to cover working capital and funding requirements. |
Finance costs |
Finance costs are charged to profit and loss account over the term of the debt using 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. |
3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
No significant judgements have had to be made by management in preparing these financial statements. |
There were no key assumptions made concerning the future, and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. |
4. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by geographical market is given below: |
2023 | 2022 |
£ | £ |
United Kingdom |
Europe |
Rest of the world | 3,746,253 | 3,684,217 |
The turnover and profit (2022 - profit) before taxation are attributable to the one principal activity of the company. |
COMPASS SUPPLY SOLUTIONS LIMITED (REGISTERED NUMBER: 03176107) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
5. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2023 | 2022 |
Directors | 1 | 1 |
Administration | 18 | 17 |
Warehouse and distribution | 19 | 19 |
2023 | 2022 |
£ | £ |
Directors' remuneration |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Other operating leases |
Depreciation - owned assets |
Foreign exchange differences | ( |
) | ( |
) |
7. | AUDITORS' REMUNERATION |
2023 | 2022 |
£ | £ |
Fees payable to the company's auditors for the audit of the financial statements |
30,000 |
22,000 |
Fees payable to the company's auditors for the audit of the financial statements - prior year under-accrual |
- |
14,855 |
Fees payable to company's auditors for non-audit services | - | 11,000 |
30,000 | 47,855 |
COMPASS SUPPLY SOLUTIONS LIMITED (REGISTERED NUMBER: 03176107) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank interest |
Hire purchase |
9. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax | ( |
) |
Tax on profit |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Depreciation in excess of capital allowances | - |
Utilisation of tax losses | ( |
) |
Change in deferred tax rate | (9,479 | ) | 20,426 |
Permanent impact of super deduction allowance | - | (49 | ) |
Group relief impact | (52,419 | ) | - |
Total tax charge | 63,742 | 87,120 |
At Budget 2021, the government announced that the Corporation Tax main rate for the years starting 1 April 2023 will increase from 19% to 25%. In addition, the government legislated in Finance Bill 2021 to introduce a small profits rate of 19% for financial year April 2023. The small profits rate will apply to profits of £50,000 or less. |
COMPASS SUPPLY SOLUTIONS LIMITED (REGISTERED NUMBER: 03176107) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
10. | INTANGIBLE FIXED ASSETS |
Goodwill |
£ |
COST |
At 1 November 2022 |
and 31 October 2023 |
AMORTISATION |
At 1 November 2022 |
and 31 October 2023 |
NET BOOK VALUE |
At 31 October 2023 |
At 31 October 2022 |
11. | TANGIBLE FIXED ASSETS |
Fixtures |
Short | and | Motor |
leasehold | fittings | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 November 2022 |
Additions |
At 31 October 2023 |
DEPRECIATION |
At 1 November 2022 |
Charge for year |
At 31 October 2023 |
NET BOOK VALUE |
At 31 October 2023 |
At 31 October 2022 |
The net book value of assets held under finance leases or hire purchase contracts, included above, are £97,126 (2022: £132,511). The depreciation charge for the year on assets held under finance leases or hire purchase contracts, included above, was £27,750 (2022: £68,508). |
COMPASS SUPPLY SOLUTIONS LIMITED (REGISTERED NUMBER: 03176107) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
12. | FIXED ASSET INVESTMENTS |
Shares in |
group | Unlisted |
undertakings | investments | Totals |
£ | £ | £ |
COST |
At 1 November 2022 |
and 31 October 2023 | 22,948 |
NET BOOK VALUE |
At 31 October 2023 | 22,948 |
At 31 October 2022 | 22,948 |
The company's investments at the Balance Sheet date in the share capital of companies include the following: |
Registered office: Unit 3, Crompton Way, Segensworth West, Fareham, Hampshire, PO15 5SS |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Schiphol Boulevard 359, WTC Schiphol Airport, D-Tower 11th Floor, 1118BJ Schiphol |
Nature of business: |
% |
Class of shares: | holding |
13. | STOCKS |
2023 | 2022 |
£ | £ |
Goods for resale | 1,713,198 | 1,403,262 |
14. | DEBTORS |
2023 | 2022 |
£ | £ |
Amounts falling due within one year: |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
VAT |
Prepayments and accrued income |
COMPASS SUPPLY SOLUTIONS LIMITED (REGISTERED NUMBER: 03176107) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
14. | DEBTORS - continued |
2023 | 2022 |
£ | £ |
Amounts falling due after more than one year: |
Amounts owed by group undertakings |
Aggregate amounts |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts (see note 17) |
Hire purchase contracts (see note 18) |
Trade creditors |
Amounts owed to group undertakings |
Tax |
Social security and other taxes |
Accruals and deferred income |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans (see note 17) |
Hire purchase contracts (see note 18) |
17. | LOANS |
An analysis of the maturity of loans is given below: |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
Bank loans |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
COMPASS SUPPLY SOLUTIONS LIMITED (REGISTERED NUMBER: 03176107) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
18. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable | operating leases |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
19. | SECURED DEBTS |
The following secured debts are included within creditors: |
2023 | 2022 |
£ | £ |
Bank overdrafts |
Bank loans |
Hire purchase contracts | 41,966 | 97,346 |
The hire purchase contracts are secured over the assets they relate to. |
The company has a facility with HSBC Bank Plc, the balance at the year end amounted to £1,970,916 (2022: £999,183). This facility is secured by way of fixed and floating charge over the assets of the company. The company has an arranged overdraft in place which is also secured. |
The company has a Coronavirus Business Interruption Loan Scheme (CBILS) of £2,000,000. The loan is repayable within 6 years from the date of the drawdown of the loan. The loan includes a guarantee in favour of the bank from a beneficial owner guaranteeing all liabilities of the borrower under the facility limited to £200,000. |
20. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
£ | £ |
Deferred tax | 54,607 | 64,086 |
COMPASS SUPPLY SOLUTIONS LIMITED (REGISTERED NUMBER: 03176107) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
20. | PROVISIONS FOR LIABILITIES - continued |
Deferred |
tax |
£ |
Balance at 1 November 2022 |
Provided during year | ( |
) |
Balance at 31 October 2023 |
The deferred tax provision of £54,607 (2022: £64,086) relates to an asset of £NIL (2022: £NIL) for trading losses carried forward expected to be utilised against future profits, an asset of £NIL (2022: £NIL) for unpaid employer pension contributions expected to be paid and allowed as an expense for corporation tax in a future period, and a provision of £54,607 (£2022: £64,086) for capital allowances in excess of depreciation. |
21. | CALLED UP SHARE CAPITAL |
Ordinary shares have full voting rights and entitlement to dividends and the repayment of capital. |
22. | CONTINGENT LIABILITIES |
The company holds a Movement Guarantee to the value of £250,000. This is in relation to the movement of duty suspended products within the EU and for export. The company's bank acts as a guarantor for the full value and retains a fixed and floating charge against all current and future assets of the company for security. This liability would only crystalise in the event of HMRC deeming it necessary to recoup duty on good which entered the UK market. There is no evidence of any events this year that would cause crystalisation. |
A class guarantee of £400,000 is in place and relates to increased supplier credit terms and as such the actual liability is included within trade creditors. |
An unlimited multilateral guarantee is in place with Compass Supply Solutions Limited, Ltd, CSS Group Limited, Chichester Bond Limited and a related company. |
A composite company unlimited multilateral guarantee was given by Compass Supply Solutions Limited and CSS Group Limited. |
The company has committed to support CSS On-Trade Limited by providing adequate financial assistance where necessary to allow the company to continue to trade for the foreseeable future.This is for a minimum of 12 months from the date of signing the balance sheet. |
23. | RELATED PARTY DISCLOSURES |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
CSS Group Limited is regarded by the director as being the company's ultimate parent company. |