REGISTERED NUMBER: 06034018 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTOR AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
FOR |
CSS GROUP LIMITED |
REGISTERED NUMBER: 06034018 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTOR AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
FOR |
CSS GROUP LIMITED |
CSS GROUP LIMITED (REGISTERED NUMBER: 06034018) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Director | 5 |
Report of the Independent Auditors | 7 |
Consolidated Income Statement | 11 |
Consolidated Other Comprehensive Income | 12 |
Consolidated Balance Sheet | 13 |
Company Balance Sheet | 14 |
Consolidated Statement of Changes in Equity | 15 |
Company Statement of Changes in Equity | 16 |
Consolidated Cash Flow Statement | 17 |
Notes to the Consolidated Cash Flow Statement | 18 |
Notes to the Consolidated Financial Statements | 20 |
CSS GROUP 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 |
CSS GROUP LIMITED (REGISTERED NUMBER: 06034018) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
The director presents his strategic report of the company and the group 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) |
14,395,544 |
12,017,141 |
20% |
13,746,621 |
11,000,546 |
25% |
Gross Profit | 3,278,922 | 2,859,584 | 15% | 2,749,324 | 2,200,109 | 20% |
Margin | 23% | 24% | 20% | 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. |
CSS GROUP LIMITED (REGISTERED NUMBER: 06034018) |
GROUP 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. |
CSS GROUP LIMITED (REGISTERED NUMBER: 06034018) |
GROUP 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: |
CSS GROUP LIMITED (REGISTERED NUMBER: 06034018) |
REPORT OF THE DIRECTOR |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
The director presents his report with the financial statements of the company and the group for the year ended 31 October 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of a holding company. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 October 2023. |
DIRECTORS |
Other changes in directors holding office are as follows: |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Group 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). 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group'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 group's auditors are aware of that information. |
CSS GROUP LIMITED (REGISTERED NUMBER: 06034018) |
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 |
CSS GROUP LIMITED |
Opinion |
We have audited the financial statements of CSS Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 group's and of the parent company affairs as at 31 October 2023 and of the group's 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 group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report. |
Other information |
The director is responsible for the other information. The other information comprises the information in the Group 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CSS GROUP LIMITED |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group 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 Group Strategic Report and the Report of the Director 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company 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 group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the group or the parent company or to cease operations, or has no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CSS GROUP 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 determined 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 |
CSS GROUP 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 |
CSS GROUP LIMITED (REGISTERED NUMBER: 06034018) |
CONSOLIDATED INCOME STATEMENT |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 14,395,544 | 12,017,141 |
Cost of sales | (11,116,622 | ) | (9,157,557 | ) |
GROSS PROFIT | 3,278,922 | 2,859,584 |
Administrative expenses | (2,970,920 | ) | (2,310,983 | ) |
OPERATING PROFIT | 4 | 308,002 | 548,601 |
Interest receivable and similar income | (1 | ) | 610 |
308,001 | 549,211 |
Interest payable and similar expenses | 5 | (139,407 | ) | (145,450 | ) |
PROFIT BEFORE TAXATION | 168,594 | 403,761 |
Tax on profit | 6 | (62,366 | ) | (88,956 | ) |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 106,228 | 314,805 |
CSS GROUP LIMITED (REGISTERED NUMBER: 06034018) |
CONSOLIDATED OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 106,228 | 314,805 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
106,228 |
314,805 |
Total comprehensive income attributable to: |
Owners of the parent | 106,228 | 314,805 |
CSS GROUP LIMITED (REGISTERED NUMBER: 06034018) |
CONSOLIDATED BALANCE SHEET |
31 OCTOBER 2023 |
2023 | 2022 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 8 | 286,624 | 382,293 |
Tangible assets | 9 | 261,154 | 325,352 |
Investments | 10 | 7,500 | 7,500 |
555,278 | 715,145 |
CURRENT ASSETS |
Stocks | 11 | 1,740,261 | 1,403,262 |
Debtors | 12 | 3,894,107 | 2,627,516 |
Cash at bank | 32,749 | 49,709 |
5,667,117 | 4,080,487 |
CREDITORS |
Amounts falling due within one year | 13 | (4,785,258 | ) | (3,013,861 | ) |
NET CURRENT ASSETS | 881,859 | 1,066,626 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
1,437,137 |
1,781,771 |
CREDITORS |
Amounts falling due after more than one year |
14 |
(946,790 |
) |
(1,388,173 |
) |
PROVISIONS FOR LIABILITIES | 18 | (54,607 | ) | (64,086 | ) |
ACCRUALS AND DEFERRED INCOME | 19 | 2,495 | 2,495 |
NET ASSETS | 438,235 | 332,007 |
CAPITAL AND RESERVES |
Called up share capital | 20 | 351,000 | 351,000 |
Share premium | 21 | 8,263,951 | 8,263,951 |
Retained earnings | 21 | (8,176,716 | ) | (8,282,944 | ) |
438,235 | 332,007 |
The financial statements were approved by the director and authorised for issue on 31 July 2024 and were signed by: |
B K H Thakrar - Director |
CSS GROUP LIMITED (REGISTERED NUMBER: 06034018) |
COMPANY BALANCE SHEET |
31 OCTOBER 2023 |
2023 | 2022 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 8 |
Tangible assets | 9 |
Investments | 10 |
CURRENT ASSETS |
Debtors | 12 |
Prepayments and accrued income |
CREDITORS |
Amounts falling due within one year | 13 | ( |
) | ( |
) |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
14 |
( |
) |
( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 20 | 351,000 | 351,000 |
Share premium | 21 | 8,263,951 | 8,263,951 |
Retained earnings | 21 | (4,161,600 | ) | (3,928,626 | ) |
Company's loss for the financial year | (232,974 | ) | (147,783 | ) |
The financial statements were approved by the director and authorised for issue on |
CSS GROUP LIMITED (REGISTERED NUMBER: 06034018) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 November 2021 | 351,000 | (8,597,749 | ) | 8,263,951 | 17,202 |
Changes in equity |
Total comprehensive income | - | 314,805 | - | 314,805 |
Balance at 31 October 2022 | 351,000 | (8,282,944 | ) | 8,263,951 | 332,007 |
Changes in equity |
Total comprehensive income | - | 106,228 | - | 106,228 |
Balance at 31 October 2023 | 351,000 | (8,176,716 | ) | 8,263,951 | 438,235 |
CSS GROUP LIMITED (REGISTERED NUMBER: 06034018) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 November 2021 | 351,000 | (3,780,843 | ) | 8,263,951 | 4,834,108 |
Changes in equity |
Total comprehensive income | - | (147,783 | ) | - | (147,783 | ) |
Balance at 31 October 2022 | 351,000 | (3,928,626 | ) | 8,263,951 | 4,686,325 |
Changes in equity |
Total comprehensive income | - | (232,974 | ) | - | (232,974 | ) |
Balance at 31 October 2023 | 351,000 | (4,161,600 | ) | 8,263,951 | 4,453,351 |
CSS GROUP LIMITED (REGISTERED NUMBER: 06034018) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | (785,448 | ) | (181,889 | ) |
Interest paid | (134,586 | ) | (130,099 | ) |
Interest element of hire purchase payments paid |
(4,821 |
) |
(15,351 |
) |
Tax paid | (218 | ) | - |
Taxation refund | - | 65,851 |
Net cash from operating activities | (925,073 | ) | (261,488 | ) |
Cash flows from investing activities |
Purchase of intangible fixed assets | (6,648 | ) | (8,864 | ) |
Purchase of tangible fixed assets | (62,237 | ) | (8,990 | ) |
Interest received | (1 | ) | 610 |
Net cash from investing activities | (68,886 | ) | (17,244 | ) |
Cash flows from financing activities |
New loans in year | 971,733 | 713,414 |
Loan repayments in year | (429,629 | ) | (209,876 | ) |
Capital repayments in year | (23,188 | ) | (63,103 | ) |
Net cash from financing activities | 518,916 | 440,435 |
(Decrease)/increase in cash and cash equivalents | (475,043 | ) | 161,703 |
Cash and cash equivalents at beginning of year |
2 |
(811,988 |
) |
(973,691 |
) |
Cash and cash equivalents at end of year |
2 |
(1,287,031 |
) |
(811,988 |
) |
CSS GROUP LIMITED (REGISTERED NUMBER: 06034018) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation | 168,594 | 403,761 |
Depreciation charges | 228,752 | 224,297 |
Finance costs | 139,407 | 145,450 |
Finance income | 1 | (610 | ) |
536,754 | 772,898 |
Increase in stocks | (336,999 | ) | (824,792 | ) |
Increase in trade and other debtors | (1,266,590 | ) | (274,086 | ) |
Increase in trade and other creditors | 281,387 | 144,091 |
Cash generated from operations | (785,448 | ) | (181,889 | ) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 October 2023 |
31.10.23 | 1.11.22 |
£ | £ |
Cash and cash equivalents | 32,749 | 49,709 |
Bank overdrafts | (1,319,780 | ) | (861,697 | ) |
(1,287,031 | ) | (811,988 | ) |
Year ended 31 October 2022 |
31.10.22 | 1.11.21 |
£ | £ |
Cash and cash equivalents | 49,709 | 105,201 |
Bank overdrafts | (861,697 | ) | (1,078,892 | ) |
(811,988 | ) | (973,691 | ) |
CSS GROUP LIMITED (REGISTERED NUMBER: 06034018) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.11.22 | Cash flow | At 31.10.23 |
£ | £ | £ |
Net cash |
Cash at bank | 49,709 | (16,960 | ) | 32,749 |
Bank overdrafts | (861,697 | ) | (458,083 | ) | (1,319,780 | ) |
(811,988 | ) | (475,043 | ) | (1,287,031 | ) |
Debt |
Finance leases | (97,346 | ) | 55,380 | (41,966 | ) |
Debts falling due within 1 year | (1,443,133 | ) | (957,413 | ) | (2,400,546 | ) |
Debts falling due after 1 year | (1,346,173 | ) | 415,308 | (930,865 | ) |
(2,886,652 | ) | (486,725 | ) | (3,373,377 | ) |
Total | (3,698,640 | ) | (961,768 | ) | (4,660,408 | ) |
CSS GROUP LIMITED (REGISTERED NUMBER: 06034018) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
1. | STATUTORY INFORMATION |
CSS Group Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Goodwill |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Short leasehold | - |
Fixtures and fittings | - |
Motor vehicles | - |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
The cost of inventories is stated net of contributions from suppliers under trade agreements. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, 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. |
CSS GROUP LIMITED (REGISTERED NUMBER: 06034018) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
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 group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
3. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 1,043,135 | 870,919 |
Social security costs | 75,715 | 84,522 |
Other pension costs | 14,368 | 11,390 |
1,133,218 | 966,831 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Directors | 1 | 31 |
Administration | 18 | 5 |
Warehouse and distribution | 19 | 1 |
The average number of employees by undertakings that were proportionately consolidated during the year was NIL (2022 - NIL). |
2023 | 2022 |
£ | £ |
Directors' remuneration | 143,605 | 162,770 |
CSS GROUP LIMITED (REGISTERED NUMBER: 06034018) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
4. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Other operating leases | 637,400 | 508,708 |
Depreciation - owned assets | 126,435 | 122,618 |
Goodwill amortisation | 101,679 | 101,679 |
Computer software amortisation | 638 | - |
Auditors' remuneration | 30,000 | 47,855 |
Foreign exchange differences | (10,554 | ) | (2,248 | ) |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank interest | 134,586 | 130,099 |
Hire purchase | 4,821 | 15,351 |
139,407 | 145,450 |
6. | 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 | 71,845 | 1,836 |
Deferred tax | (9,479 | ) | 87,120 |
Tax on profit | 62,366 | 88,956 |
CSS GROUP LIMITED (REGISTERED NUMBER: 06034018) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
6. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax | 168,594 | 403,761 |
Profit multiplied by the standard rate of corporation tax in the UK of 22.500 % (2022 - 19 %) |
37,934 |
76,715 |
Effects of: |
Depreciation in excess of capital allowances | 33,169 | 36,949 |
Effect of tax in overseas entity | 742 | 1,102 |
Deferred taxation | (9,479 | ) | 87,120 |
Loss relief brought forward from prior periods | - | (112,930 | ) |
Total tax charge | 62,366 | 88,956 |
7. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
8. | INTANGIBLE FIXED ASSETS |
Group |
Computer |
Goodwill | software | Totals |
£ | £ | £ |
COST |
At 1 November 2022 | 5,522,508 | 8,864 | 5,531,372 |
Additions | - | 6,648 | 6,648 |
At 31 October 2023 | 5,522,508 | 15,512 | 5,538,020 |
AMORTISATION |
At 1 November 2022 | 5,149,079 | - | 5,149,079 |
Amortisation for year | 101,679 | 638 | 102,317 |
At 31 October 2023 | 5,250,758 | 638 | 5,251,396 |
NET BOOK VALUE |
At 31 October 2023 | 271,750 | 14,874 | 286,624 |
At 31 October 2022 | 373,429 | 8,864 | 382,293 |
CSS GROUP LIMITED (REGISTERED NUMBER: 06034018) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
9. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Short | and | Motor |
leasehold | fittings | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 November 2022 | 294,698 | 272,580 | 122,242 | 689,520 |
Additions | 5,955 | 56,282 | - | 62,237 |
At 31 October 2023 | 300,653 | 328,862 | 122,242 | 751,757 |
DEPRECIATION |
At 1 November 2022 | 92,075 | 179,192 | 92,901 | 364,168 |
Charge for year | 42,809 | 54,285 | 29,341 | 126,435 |
At 31 October 2023 | 134,884 | 233,477 | 122,242 | 490,603 |
NET BOOK VALUE |
At 31 October 2023 | 165,769 | 95,385 | - | 261,154 |
At 31 October 2022 | 202,623 | 93,388 | 29,341 | 325,352 |
10. | FIXED ASSET INVESTMENTS |
Group |
Unlisted |
investments |
£ |
COST |
At 1 November 2022 |
and 31 October 2023 | 7,500 |
NET BOOK VALUE |
At 31 October 2023 | 7,500 |
At 31 October 2022 | 7,500 |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 November 2022 |
and 31 October 2023 |
NET BOOK VALUE |
At 31 October 2023 |
At 31 October 2022 |
CSS GROUP LIMITED (REGISTERED NUMBER: 06034018) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
10. | FIXED ASSET INVESTMENTS - continued |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: Unit 3, Crompton Way, Segensworth West, Fareham, Hampshire, PO15 5SS |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Unit 3, Crompton Way, Segensworth West, Fareham, Hampshire, PO15 5SS |
Nature of business: |
% |
Class of shares: | holding |
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 |
*Denotes investment held in Compass Supply Solutions Ltd |
11. | STOCKS |
Group |
2023 | 2022 |
£ | £ |
Valuation | 1,740,261 | 1,403,262 |
CSS GROUP LIMITED (REGISTERED NUMBER: 06034018) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade debtors | 2,604,090 | 2,168,414 |
Amounts owed by group undertakings | - | - |
Amounts owed by participating interests | 181,982 | 128,500 | 128,500 | 128,500 |
Other debtors | 487,113 | 58,888 |
VAT | 441,797 | 153,758 | - | - |
Prepayments and accrued income | 179,125 | 117,956 |
3,894,107 | 2,627,516 |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 15) | 3,720,326 | 2,304,830 |
Hire purchase contracts (see note 16) | 26,041 | 55,346 |
Trade creditors | 847,125 | 532,328 |
Amounts owed to group undertakings | - | - |
Tax | 73,477 | 1,850 |
Social security and other taxes | 17,897 | 4,717 |
VAT | 19,232 | 21,162 | - | - |
Other creditors | 11,757 | - |
Accruals and deferred income | 69,403 | 93,628 |
4,785,258 | 3,013,861 |
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans (see note 15) | 930,865 | 1,346,173 |
Hire purchase contracts (see note 16) | 15,925 | 42,000 |
Amounts owed to group undertakings | - | - | 1,400,000 | 1,400,000 |
946,790 | 1,388,173 |
CSS GROUP LIMITED (REGISTERED NUMBER: 06034018) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
15. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on | demand: |
Bank overdrafts | 1,319,780 | 861,697 |
Bank loans | 2,400,546 | 1,443,133 |
3,720,326 | 2,304,830 |
Amounts falling due between one and two | years: |
Bank loans - 1-2 years | 429,630 | - |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | 501,235 | 1,346,173 |
16. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year | 26,041 | 55,346 |
Between one and five years | 15,925 | 42,000 |
41,966 | 97,346 |
CSS GROUP LIMITED (REGISTERED NUMBER: 06034018) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
17. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2023 | 2022 |
£ | £ |
Bank overdrafts | 1,319,780 | 861,697 |
Bank loans | 3,331,411 | 2,789,306 |
Hire purchase contracts | 41,966 | 97,346 |
4,693,157 | 3,748,349 |
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. |
18. | PROVISIONS FOR LIABILITIES |
Group |
2023 | 2022 |
£ | £ |
Deferred tax | 54,607 | 64,086 |
Group |
Deferred |
tax |
£ |
Balance at 1 November 2022 | 64,086 |
Credit to Income Statement during year | (9,479 | ) |
Balance at 31 October 2023 | 54,607 |
19. | ACCRUALS AND DEFERRED INCOME |
Group |
2023 | 2022 |
£ | £ |
Accruals and deferred income | (2,495 | ) | (2,495 | ) |
CSS GROUP LIMITED (REGISTERED NUMBER: 06034018) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number |
Class |
Nominal Value |
2022 |
2021 |
£ | £ |
175,000 | Ordinary | 1 | 175,000 | 175,000 |
175,000 | Ordinary A | 1 | 175,000 | 175,000 |
500 | Ordinary B | 1 | 500 | 500 |
500 | Ordinary C | 1 | 500 | 500 |
351,000 | 351,000 |
21. | RESERVES |
Group |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 November 2022 | (8,282,944 | ) | 8,263,951 | (18,993 | ) |
Profit for the year | 106,228 | 106,228 |
At 31 October 2023 | (8,176,716 | ) | 8,263,951 | 87,235 |
Company |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 November 2022 | (3,928,626 | ) | 8,263,951 | 4,335,325 |
Deficit for the year | (232,974 | ) | (232,974 | ) |
At 31 October 2023 | (4,161,600 | ) | 8,263,951 | 4,102,351 |
22. | RELATED PARTY DISCLOSURES |
At the year end a balance of £181,882 (2022 - £128,500) by a company under the control of the directors. This amount is interest free and repayable upon demand. |