NORTH GROUP LIMITED
SC328699
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
NORTH GROUP LIMITED
COMPANY INFORMATION
Directors
Lee Garden
John Campbell
Andrew Hayes
Secretary
John Campbell
Company number
SC328699
Registered office
Saltire House
Blackness Avenue
Altens
Aberdeen
AB12 3PG
Business address
Saltire House
Blackness Avenue
Altens
Aberdeen
AB12 3PG
Auditor
Hall Morrice LLP
6 & 7 Queens Terrace
Aberdeen
AB10 1XL
Bankers
Bank of Scotland
48 Upperkirkgate
Aberdeen
AB10 1BA
Solicitors
Raeburn Christie Clark & Wallace
399 Union Street
Aberdeen
AB11 6BX
NORTH GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 31
NORTH GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 1 -

The directors present the strategic report for the year ended 31 October 2023.

Fair review of the business

The group key performance indicators are turnover, gross profit, net profit, cash in hand and net asset position.

 

The group has seen turnover increase by 46% on the previous year to £13.5m. The directors are pleased with the performance of the group, which has continued to improve.

 

The group generated a gross profit of £3.0m (2022 - £2.2m), with a decreased gross margin of 22% (2022 - 24%).

 

Management have continued to closely monitor costs. This has helped the group to record an operating profit for the year of £1.2m (2022 - £772k) and a profit before tax of £1.1m (2022 - £776k).

 

At the balance sheet date the group had net assets of £6.3m (2022 - £5.6m) and net current assets of £5.4m (2022 - £4.2m), with a healthy cash position allowing the business to react quickly to any market opportunities or changes.

 

In addition to the above financial KPI's the group monitor the development, performance and position of the business using other key performance indicators.

 

The group are committed to health and safety and ensuring that all works are carried out with due care and vigilance to both staff and third parties.

 

Emphasis is placed on providing high quality products and services for its customers. Through the operation of a Quality Management System in accordance with ISO 9001 the group has maintained this quality during the year. To complement this system the group operates an Environmental Management System in accordance with ISO 14001 and together such standards have improved the overall management of the business. Efficiencies have been found, waste has been minimised and the group is more environmentally conscious.

 

The group continually strives to meet and improve health and safety, quality, environmental and energy policies.

Principal risks and uncertainties

The principal risk facing the company is the unpredictability of the local economy caused by the changes in oil prices. The directors have given due consideration to the impact on the company of such oil & gas sector downturns and consequently have sought to extend and diversify its client base. Over the past few years considerable work has been undertaken on government backed projects and this has served to alleviate pressures from local economy downturns. As a result, the adverse effect of competition has been de risked and the company’s profit margins have been maintained.

The directors are confident that the company is well placed to meet any challenges, with a strong management team in place and an excellent reserve base. The company has factored risk into their worst-case forecasts and believe that they have adequate funds to trade successfully and meet their liabilities as they fall due. The financial position of the company will continue to be monitored very closely by the directors.

Financial instruments
Financial management policies are set at a group level. The group strategy is to provide a complete refurbishment service both onshore and offshore, together with the manufacture of specialist joinery and the supply of construction trades people, materials and equipment. The group therefore looks to secure the resources required for the future development of the business and to expand its capabilities, and as a result, the company's activities expose it to a number of financial risks including liquidity risk, interest rate risk, price risk and credit risk.
Liquidity risk

The group manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the group has sufficient liquid resources to meet the operating needs of the business.

NORTH GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 2 -
Interest rate risk
The group is exposed to fair value interest rate risk on its fixed rate borrowings and cash flow interest rate risk on floating rate deposits, bank overdrafts and loans. The group uses interest rate derivatives to manage the mix of fixed and variable rate debt so as to reduce its exposure to changes in interest rates.
Price risk

Contracts are subject to competitive tendering and the directors are confident that the group operates efficiently enough to meet the requirements of the market, and price their products and services appropriately.

Credit risk

Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board.

 

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

Future Developments

The group will continue to provide high quality products and services to its client base and to seek new opportunities in the market place in order to continually improve its key performance indicators.

On behalf of the board

John Campbell
Director
31 July 2024
NORTH GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 3 -

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

Principal activities

The principal activity of the company continued to be that of a holding company.

 

The principal activity of the group continued to be that of refurbishment of onshore and offshore property.

Results and dividends

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

Ordinary dividends were paid amounting to £120,000 (2022 - £120,000). The directors do not recommend payment of a further dividend.

Directors

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

Lee Garden
John Campbell
Andrew Hayes
Adam Howitt
(Appointed 12 March 2024 and resigned 4 June 2024)
Recardo Patrick
(Appointed 12 March 2024 and resigned 4 June 2024)
Auditor

In accordance with the company's articles, a resolution proposing that be reappointed as auditor of the group will be put at a General Meeting.

Statement of directors' responsibilities

The directors are responsible for preparing the Strategic report, 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

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

NORTH GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 4 -
Statement of disclosure to auditor

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

On behalf of the board
John Campbell
Director
31 July 2024
NORTH GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF NORTH GROUP LIMITED
- 5 -
Opinion

We have audited the financial statements of North Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2023 which comprise the group profit and loss account, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

 

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

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

NORTH GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF NORTH GROUP LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

 

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, as set out in the Directors' report, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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.

In identifying and assessing the risk of material misstatement due to non-compliance with laws and regulations we have:

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

In identifying and assessing the risk of material misstatement due to irregularities, including fraud and how it may occur, and the potential for management bias and the override of controls we have:

 

 

We did not identify any matters relating to non-compliance with laws and regulations, or relating to fraud.

 

Because of the inherent limitations of an audit, there is an unavoidable risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. The risk of not detecting a material misstatement due to fraud is inherently more difficult than detecting those that result from error as fraud may involve intentional concealment, forgery, collusion, omission or misrepresentation. In addition, the further removed any 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.

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

Use of our report

This report is made solely to the group’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 group’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 group and the group’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Robert J C Bain MA CA CTA
Senior Statutory Auditor
For and on behalf of Hall Morrice LLP
Statutory Auditor
Aberdeen
31 July 2024
NORTH GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
13,490,742
9,238,561
Cost of sales
(10,462,828)
(7,011,685)
Gross profit
3,027,914
2,226,876
Administrative expenses
(1,572,625)
(1,490,459)
Other operating income
33,832
36,050
Other operating expenses
(240,000)
-
Operating profit
4
1,249,121
772,467
Interest receivable and similar income
8
46,226
3,048
Fair value gains and losses on investment properties
(150,000)
-
0
Profit before taxation
1,145,347
775,515
Tax on profit
9
(327,525)
(122,949)
Profit for the financial year
24
817,822
652,566
The Statement of comprehensive income has been prepared on the basis that all operations are continuing operations.
NORTH GROUP LIMITED
GROUP BALANCE SHEET
AS AT
31 OCTOBER 2023
31 October 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
12
61,518
123,035
Tangible assets
13
640,297
890,545
Investment properties
14
160,000
310,000
861,815
1,323,580
Current assets
Stocks
17
19,231
19,986
Debtors
18
4,051,152
3,191,891
Cash at bank and in hand
5,646,094
3,525,349
9,716,477
6,737,226
Creditors: amounts falling due within one year
19
(4,303,905)
(2,487,681)
Net current assets
5,412,572
4,249,545
Total assets less current liabilities
6,274,387
5,573,125
Provisions for liabilities
20
(22,080)
(18,640)
Net assets
6,252,307
5,554,485
Capital and reserves
Called up share capital
23
500,000
500,000
Profit and loss reserves
24
5,752,307
5,054,485
Total equity
6,252,307
5,554,485
The financial statements were approved by the board of directors and authorised for issue on 31 July 2024 and are signed on its behalf by:
31 July 2024
John Campbell
Director
NORTH GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 31 OCTOBER 2023
31 October 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
13
600,000
864,000
Investments
15
1,500,001
1,500,001
2,100,001
2,364,001
Current assets
Debtors
18
1,537,877
1,683,277
Cash at bank and in hand
22,259
48,074
1,560,136
1,731,351
Creditors: amounts falling due within one year
19
(2,076,805)
(2,314,066)
Net current liabilities
(516,669)
(582,715)
Total assets less current liabilities
1,583,332
1,781,286
Provisions for liabilities
20
(12,764)
(12,860)
Net assets
1,570,568
1,768,426
Capital and reserves
Called up share capital
23
500,000
500,000
Profit and loss reserves
24
1,070,568
1,268,426
Total equity
1,570,568
1,768,426

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company's loss for the year was £17,486 (2022 - profit of £196,216).

The financial statements were approved by the board of directors and authorised for issue on 31 July 2024 and are signed on its behalf by:
31 July 2024
John Campbell
Director
Company Registration No. SC328699
NORTH GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2023
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 November 2021
500,000
4,521,919
5,021,919
Year ended 31 October 2022:
Profit and total comprehensive income for the year
-
652,566
652,566
Dividends
10
-
(120,000)
(120,000)
Balance at 31 October 2022
500,000
5,054,485
5,554,485
Year ended 31 October 2023:
Profit and total comprehensive income for the year
-
817,822
817,822
Dividends
10
-
(120,000)
(120,000)
Balance at 31 October 2023
500,000
5,752,307
6,252,307
NORTH GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2023
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 November 2021
500,000
1,192,210
1,692,210
Year ended 31 October 2022:
Profit and total comprehensive income for the year
-
196,216
196,216
Dividends
10
-
(120,000)
(120,000)
Balance at 31 October 2022
500,000
1,268,426
1,768,426
Year ended 31 October 2023:
Loss and total comprehensive income for the year
-
(77,858)
(77,858)
Dividends
10
-
(120,000)
(120,000)
Balance at 31 October 2023
500,000
1,070,568
1,570,568
NORTH GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
2,346,463
623,322
Income taxes (paid)/refunded
(120,954)
14,347
Net cash inflow from operating activities
2,225,509
637,669
Investing activities
Purchase of tangible fixed assets
(33,490)
(23,136)
Proceeds on disposal of tangible fixed assets
2,500
3,750
Interest received
46,226
3,048
Net cash generated from/(used in) investing activities
15,236
(16,338)
Financing activities
Dividends paid to equity shareholders
(120,000)
(120,000)
Net cash used in financing activities
(120,000)
(120,000)
Net increase in cash and cash equivalents
2,120,745
501,331
Cash and cash equivalents at beginning of year
3,525,349
3,024,018
Cash and cash equivalents at end of year
5,646,094
3,525,349
NORTH GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 14 -
1
Accounting policies
1.1
Accounting convention

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

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


The company is a qualifying entity for the purposes of FRS 102, being the parent of a group that prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company North Group Limited together with all entities controlled by the parent company (its subsidiaries).

 

All financial statements are made up to 31 October 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group and company have adequate resources to continue in operational existence for at least twelve months from the date of signing the financial statements. The group has obtained written confirmation from the directors that they will not demand repayment of monies totalling £1.5 million which have been advanced post year end for a period of at least 12 months from the date of signing the financial statements if it would prevent the group from being able to discharge their liabilities as they fall due. Furthermore, the directors have demonstrated their willingness to provide financial support to the group and company for a period of at least 12 months from the date of signing the financial statements. Thus the directors have continued to adopt the going concern basis of accounting in preparing the financial statements.

1.4
Turnover

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

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

NORTH GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies (continued)
- 15 -

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.5
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

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

1.6
Tangible fixed assets

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

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

Heritable buildings
2% Straight line
Tenants improvements
10% Straight line
Plant and equipment
10% - 33.33% Straight line
Fixtures and fittings
25% - 33.33% Straight line
Motor vehicles
25% Straight line

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

1.7
Investment properties

Investment properties, which are properties held to earn rentals and/or for capital appreciation, are initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently they are measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

1.8
Fixed asset investments

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

 

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

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

NORTH GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies (continued)
- 16 -
1.9
Impairment of fixed assets

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

 

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

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

 

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

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

1.10
Stocks

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

 

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

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

1.11
Work in progress

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

 

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

 

Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.

NORTH GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies (continued)
- 17 -
1.12
Cash and cash equivalents

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

1.13
Financial instruments

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

 

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

 

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

Basic financial assets

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

Other financial assets

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

Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

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

Classification of financial liabilities

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

NORTH GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies (continued)
- 18 -
Basic financial liabilities

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

 

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

 

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

Other financial liabilities

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

 

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

Derecognition of financial liabilities

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

1.14
Equity instruments

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

1.15
Taxation

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

Current tax

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

NORTH GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies (continued)
- 19 -
Deferred tax

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

 

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

1.16
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.17
Employee benefits

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

 

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

 

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

1.18
Retirement benefits

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

1.19
Leases

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.20
Government grants

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

 

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

NORTH GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies (continued)
- 20 -
1.21
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

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

 

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

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Revaluation of investment properties

The group carries its investment properties at fair value, with changes in fair value being recognised in profit or loss. The fair value at each reporting date is normally determined by the directors at estimated market value. Annual professional valuations are not obtained due to the cost involved and the fact that the directors have no intention to sell the investment properties in the medium to long term. Periodic professional valuations are obtained when there is considered to have been a material change in the economic environment. The carrying amount of the investment properties is disclosed in note 14.

Useful economic lives of tangible fixed assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful lives and residual values of the assets. The useful economic lives and residual values are re-assessed 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 13 for the carrying amount of each asset and note 1.7 for the useful economic lives for each class of asset.

Useful economic life of goodwill

The group establishes a reliable estimate of the useful life of goodwill arising on business combinations. This estimate is based on a variety of factors such as the expected use of the acquired business, the expected usual life of the cash generating units to which the goodwill is attributed, any legal, regulatory or contractual provisions that can limit useful life and assumptions that market participants would consider in respect of similar businesses. See note 12 for the carrying amount of the goodwill and note 1.6 for its useful economic life.

Revenue recognition

In recognising revenue with reference to the stage of completion at the year end date, there has to be reliable estimates made of the outcome of each contract, the stage of completion, future costs and collectability of billings. This results in key judgements and estimates which impact upon the results for the year.

3
Turnover

In the opinion of the directors it would be seriously prejudicial to the group to disclose segmental information by class of business or by geographical split.

NORTH GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 21 -
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Property rental income
(13,135)
(18,222)
Government grants
(20,697)
(17,828)
Depreciation of owned tangible fixed assets
43,738
51,746
Impairment of owned tangible fixed assets
240,000
-
Profit on disposal of tangible fixed assets
(2,500)
(3,750)
Amortisation of intangible assets
61,517
61,517
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
5,400
3,000
Audit of the financial statements of the company's subsidiaries
16,800
10,000
22,200
13,000
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Management and administration
20
20
3
3
Production
50
45
-
-
Total
70
65
3
3

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
2,495,160
2,114,061
52,000
52,000
Social security costs
246,154
215,945
4,759
4,816
Pension costs
76,075
75,442
22,500
22,500
2,817,389
2,405,448
79,259
79,316
NORTH GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 22 -
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
75,434
72,601
Company pension contributions to defined contribution schemes
22,500
22,500
Sums paid to third parties for directors' services
9,315
8,245
107,249
103,346

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022 - 2).

8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
45,790
2,217
Other interest income
436
831
Total income
46,226
3,048
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
366,756
163,625
Adjustments in respect of prior periods
(42,671)
(40,550)
Total current tax
324,085
123,075
Deferred tax
Origination and reversal of timing differences
3,440
(126)
Total tax charge
327,525
122,949

Changes to the UK corporation tax rates were substantively enacted as part of Finance Bill 2023 (on 10 January 2023). These changes included an increase in the main rate to 25% from April 2023. Deferred taxes at the balance sheet date, in relation to UK companies, are measured using tax rates enacted as at the balance sheet date (25%).

NORTH GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
9
Taxation (continued)
- 23 -

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

2023
2022
£
£
Profit before taxation
1,145,347
775,515
Expected tax charge based on the standard rate of corporation tax in the UK of 23% (2022: 19%)
257,907
147,348
Tax effect of expenses that are not deductible in determining taxable profit
5,799
347
Adjustments in respect of prior years
(42,671)
(40,550)
Permanent capital allowances in excess of depreciation
92,859
4,273
Amortisation on assets not qualifying for tax allowances
13,852
11,688
Other permanent differences
(562)
(1)
Remeasurement of deferred tax for changes in tax rates
341
(156)
Taxation charge
327,525
122,949
10
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
120,000
120,000
11
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2023
2022
Notes
£
£
In respect of:
Property, plant and equipment
13
240,000
-
Recognised in:
Administrative expenses
240,000
-

The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.

NORTH GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 24 -
12
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 November 2022 and 31 October 2023
878,817
Amortisation and impairment
At 1 November 2022
755,782
Amortisation charged for the year
61,517
At 31 October 2023
817,299
Carrying amount
At 31 October 2023
61,518
At 31 October 2022
123,035
The company had no intangible fixed assets at 31 October 2023 or 31 October 2022.

 

13
Tangible fixed assets
Group
Heritable buildings
Tenants improvements
Plant and machinery
Fixtures, fittings and equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 November 2022
1,200,000
13,475
225,542
141,887
144,804
1,725,708
Additions
-
0
-
0
-
0
-
0
33,490
33,490
Disposals
-
0
-
0
-
0
-
0
(28,480)
(28,480)
At 31 October 2023
1,200,000
13,475
225,542
141,887
149,814
1,730,718
Depreciation and impairment
At 1 November 2022
336,000
13,475
222,525
139,474
123,689
835,163
Depreciation charged in the year
24,000
-
0
3,017
1,352
15,369
43,738
Impairment losses
240,000
-
0
-
0
-
0
-
0
240,000
Eliminated in respect of disposals
-
0
-
0
-
0
-
0
(28,480)
(28,480)
At 31 October 2023
600,000
13,475
225,542
140,826
110,578
1,090,421
Carrying amount
At 31 October 2023
600,000
-
0
-
0
1,061
39,236
640,297
At 31 October 2022
864,000
-
0
3,017
2,413
21,115
890,545
NORTH GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
13
Tangible fixed assets (continued)
- 25 -
Company
Heritable buildings
£
Cost
At 1 November 2022 and 31 October 2023
1,200,000
Depreciation and impairment
At 1 November 2022
336,000
Depreciation charged in the year
24,000
Impairment losses
240,000
At 31 October 2023
600,000
Carrying amount
At 31 October 2023
600,000
At 31 October 2022
864,000

More information on impairment movements in the year is given in note 11.

NORTH GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 26 -
14
Investment properties
Group
Company
2023
2023
£
£
Fair value
At 1 November 2022 and 31 October 2023
310,000
-
Net gains or losses through fair value adjustments
(150,000)
-
At 31 October 2023
160,000
-

Investment properties comprise of five flats held for rental purposes. The fair value of the investment properties have been arrived at on the basis of a valuation carried out at 30 November 2023 by Allied Surveyors Scotland, who are not connected with the company. The valuations were made on an open market value basis by reference to market evidence of transaction prices for similar properties.

 

The directors are of the opinion that this valuation is appropriate as at 31 October 2023.

15
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
16
-
0
-
0
1,500,001
1,500,001
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost
At 1 November 2022 and 31 October 2023
1,500,001
Carrying amount
At 31 October 2023
1,500,001
At 31 October 2022
1,500,001
16
Subsidiaries

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

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
North Offshore Limited
United Kingdom
Onshore and offshore refurbishment
Ordinary shares
100.00
NORTH GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 27 -
17
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
19,231
19,986
-
-
18
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,377,905
1,395,333
-
0
-
0
Gross amounts owed by contract customers
54,941
36,500
-
0
-
0
Corporation tax recoverable
201,500
242,050
201,500
201,500
Other debtors
1,387,993
149,847
1,327,677
128,077
Prepayments and accrued income
28,813
23,161
8,700
8,700
4,051,152
1,846,891
1,537,877
338,277
Amounts falling due after more than one year:
Other debtors
-
0
1,345,000
-
0
1,345,000
Total debtors
4,051,152
3,191,891
1,537,877
1,683,277
19
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Trade creditors
2,889,711
1,194,142
7,949
7,830
Amounts owed to group undertakings
-
0
-
0
2,000,000
2,250,000
Corporation tax payable
366,756
163,625
60,468
51,294
Other taxation and social security
151,036
450,467
1,813
1,942
Accruals and deferred income
896,402
679,447
6,575
3,000
4,303,905
2,487,681
2,076,805
2,314,066

The bank holds a floating charge over all assets of the company. There is also a standard security over the premises at Blackness Avenue, Altens, Aberdeen, AB12 3PG.

NORTH GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 28 -
20
Provisions for liabilities
Group
Company
2023
2022
2023
2022
£
£
£
£
Deferred tax liabilities
21
22,080
18,640
12,764
12,860
21
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
22,392
18,952
Tax losses
(312)
(312)
22,080
18,640
Liabilities
Liabilities
2023
2022
Company
£
£
Accelerated capital allowances
12,764
12,860
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 November 2022
18,640
12,860
Charge/(credit) to profit or loss
3,440
(96)
Liability at 31 October 2023
22,080
12,764
22
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
76,075
75,442

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

 

Contributions totalling £2,000 (2022 - £2,000) were payable to the scheme at the end of the year and are included in creditors.

NORTH GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 29 -
23
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
500,000
500,000
500,000
500,000

The company's ordinary shares, which carry no right to fixed income, each carry the right to one vote at general meetings of the company.

24
Reserves
Profit and loss reserves

This reserve records the accumulated distributable profits made by the company net of distributions to shareholders.

25
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
26,100
26,100
26,100
26,100
Between two and five years
104,400
104,400
104,400
104,400
In over five years
2,718,333
2,744,433
2,718,333
2,744,433
2,848,833
2,874,933
2,848,833
2,874,933
Lessor

At the reporting end date the group had contracted with tenants for the following minimum lease payments:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
975
1,465
-
-
26
Events after the reporting date

On 12 March 2024, the entire share capital of North Group Limited was purchased by Dunham Massey Investment Group No6 Ltd. On 4 June 2024, the entire share capital of Dunham Massey Investment Group No6 Ltd was purchased by the previous owners of North Group Limited prior to the 12 March 2024 sale.

NORTH GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 30 -
27
Related party transactions
Transactions with related parties

During the year the group entered into the following transactions with related parties:

Fees
Fees
2023
2022
£
£
Company
Other related parties
9,315
8,245
Fees
Fees
2023
2022
£
£
Group
Other related parties
9,315
8,245

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2023
2022
Balance
Balance
£
£
Group
Other related parties
705,000
850,000
Company
Other related parties
705,000
850,000
28
Directors' transactions

As at 31 October 2023 two of the directors were due the company £620,000 (2022 - £620,000). The loans are interest free with no set repayment terms.

NORTH GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 31 -
29
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
817,822
652,566
Adjustments for:
Taxation charged
327,525
122,949
Investment income
(46,226)
(3,048)
Gain on disposal of tangible fixed assets
(2,500)
(3,750)
Fair value loss on investment properties
150,000
-
0
Amortisation and impairment of intangible assets
61,517
61,517
Depreciation and impairment of tangible fixed assets
283,738
51,746
Movements in working capital:
Decrease/(increase) in stocks
755
(418)
(Increase)/decrease in debtors
(859,261)
78,380
Increase/(decrease) in creditors
1,613,093
(336,620)
Cash generated from operations
2,346,463
623,322
30
Analysis of changes in net funds - group
1 November 2022
Cash flows
31 October 2023
£
£
£
Cash at bank and in hand
3,525,349
2,120,745
5,646,094
31
Company information

North Group Limited ("the company") is a private limited company domiciled and incorporated in Scotland. The registered office is Saltire House, Blackness Avenue, Altens, Aberdeen, AB12 3PG.

 

The group consists of North Group Limited and all of its subsidiary, North Offshore Limited. The registered office for this subsidiary is Saltire House, Blackness Avenue, Altens, Aberdeen, AB12 3PG.

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