IRIS Accounts Production v24.1.0.578 03176107 director 1.11.22 31.10.23 31.10.23 logistics. true true false true true false false false true false iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureutr:tonnesutr:kWh031761072022-10-31031761072023-10-31031761072022-11-012023-10-31031761072021-10-31031761072021-11-012022-10-31031761072022-10-3103176107ns15:EnglandWales2022-11-012023-10-3103176107ns14:PoundSterling2022-11-012023-10-3103176107ns10:Director12022-11-012023-10-3103176107ns10:PrivateLimitedCompanyLtd2022-11-012023-10-3103176107ns10:FRS1022022-11-012023-10-3103176107ns10:Audited2022-11-012023-10-3103176107ns10:LargeMedium-sizedCompaniesRegimeForDirectorsReport2022-11-012023-10-3103176107ns10:LargeMedium-sizedCompaniesRegimeForAccounts2022-11-012023-10-3103176107ns10:FullAccounts2022-11-012023-10-310317610712022-11-012023-10-3103176107ns10:CompanySecretary12022-11-012023-10-3103176107ns10:RegisteredOffice2022-11-012023-10-3103176107ns10:Director22022-11-012023-10-3103176107ns5:CurrentFinancialInstruments2023-10-3103176107ns5:CurrentFinancialInstruments2022-10-3103176107ns5:Non-currentFinancialInstruments2023-10-3103176107ns5:Non-currentFinancialInstruments2022-10-3103176107ns5:ShareCapital2023-10-3103176107ns5:ShareCapital2022-10-3103176107ns5:RetainedEarningsAccumulatedLosses2023-10-3103176107ns5:RetainedEarningsAccumulatedLosses2022-10-3103176107ns5:ShareCapital2021-10-3103176107ns5:RetainedEarningsAccumulatedLosses2021-10-3103176107ns5:RetainedEarningsAccumulatedLosses2021-11-012022-10-3103176107ns5:RetainedEarningsAccumulatedLosses2022-11-012023-10-3103176107ns5:NetGoodwill2022-11-012023-10-3103176107ns5:ShortLeaseholdAssetsns5:LandBuildings2022-11-012023-10-3103176107ns5:FurnitureFittings2022-11-012023-10-3103176107ns5:MotorVehicles2022-11-012023-10-310317610712022-11-012023-10-3103176107ns15:UnitedKingdom2022-11-012023-10-3103176107ns15:UnitedKingdom2021-11-012022-10-3103176107ns15:Europe2022-11-012023-10-3103176107ns15:Europe2021-11-012022-10-3103176107ns5:TotalGeographicSegmentsIncludingAnyUnallocatedAmount2022-11-012023-10-3103176107ns5:TotalGeographicSegmentsIncludingAnyUnallocatedAmount2021-11-012022-10-3103176107ns5:OwnedAssets2022-11-012023-10-3103176107ns5:OwnedAssets2021-11-012022-10-3103176107ns5:HirePurchaseContracts2022-11-012023-10-3103176107ns5:HirePurchaseContracts2021-11-012022-10-3103176107ns5:NetGoodwill2022-10-3103176107ns5:NetGoodwill2023-10-3103176107ns5:NetGoodwill2022-10-3103176107ns5:ShortLeaseholdAssetsns5:LandBuildings2022-10-3103176107ns5:FurnitureFittings2022-10-3103176107ns5:MotorVehicles2022-10-3103176107ns5:ShortLeaseholdAssetsns5:LandBuildings2023-10-3103176107ns5:FurnitureFittings2023-10-3103176107ns5:MotorVehicles2023-10-3103176107ns5:ShortLeaseholdAssetsns5:LandBuildings2022-10-3103176107ns5:FurnitureFittings2022-10-3103176107ns5:MotorVehicles2022-10-3103176107ns5:CostValuation2022-10-3103176107ns5:UnlistedNon-exchangeTradedns5:CostValuation2022-10-3103176107ns5:UnlistedNon-exchangeTraded2023-10-3103176107ns5:UnlistedNon-exchangeTraded2022-10-3103176107ns5:Subsidiary12022-11-012023-10-3103176107ns5:Subsidiary112022-11-012023-10-3103176107ns5:Subsidiary22022-11-012023-10-31031761073ns5:Subsidiary22022-11-012023-10-3103176107ns5:CurrentFinancialInstrumentsns5:WithinOneYear2023-10-3103176107ns5:CurrentFinancialInstrumentsns5:WithinOneYear2022-10-3103176107ns5:Non-currentFinancialInstrumentsns5:BetweenOneTwoYears2023-10-3103176107ns5:Non-currentFinancialInstrumentsns5:BetweenOneTwoYears2022-10-3103176107ns5:Non-currentFinancialInstrumentsns5:BetweenTwoFiveYears2023-10-3103176107ns5:Non-currentFinancialInstrumentsns5:BetweenTwoFiveYears2022-10-3103176107ns5:HirePurchaseContractsns5:CurrentFinancialInstrumentsns5:WithinOneYear2023-10-3103176107ns5:HirePurchaseContractsns5:CurrentFinancialInstrumentsns5:WithinOneYear2022-10-3103176107ns5:BetweenOneFiveYearsns5:HirePurchaseContracts2023-10-3103176107ns5:BetweenOneFiveYearsns5:HirePurchaseContracts2022-10-3103176107ns5:HirePurchaseContracts2023-10-3103176107ns5:HirePurchaseContracts2022-10-3103176107ns5:WithinOneYear2023-10-3103176107ns5:WithinOneYear2022-10-3103176107ns5:BetweenOneFiveYears2023-10-3103176107ns5:BetweenOneFiveYears2022-10-3103176107ns5:AllPeriods2023-10-3103176107ns5:AllPeriods2022-10-3103176107ns5:Secured2023-10-3103176107ns5:Secured2022-10-3103176107ns5:DeferredTaxation2022-10-3103176107ns5:DeferredTaxation2022-11-012023-10-3103176107ns5:DeferredTaxation2023-10-31
REGISTERED NUMBER: 03176107 (England and Wales)













STRATEGIC REPORT, REPORT OF THE DIRECTOR AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2023

FOR

COMPASS SUPPLY SOLUTIONS LIMITED

COMPASS SUPPLY SOLUTIONS LIMITED (REGISTERED NUMBER: 03176107)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023




Page

Company Information 1

Strategic Report 2

Report of the Director 5

Report of the Independent Auditors 7

Statement of Comprehensive Income 11

Balance Sheet 12

Statement of Changes in Equity 13

Notes to the Financial Statements 14


COMPASS SUPPLY SOLUTIONS LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 OCTOBER 2023







DIRECTOR: B K H Thakrar





SECRETARY: Mrs S Crompton





REGISTERED OFFICE: Unit 3 Crompton Way
Segensworth West
Fareham
Hampshire
PO15 5SS





REGISTERED NUMBER: 03176107 (England and Wales)





AUDITORS: Watson Associates (Audit Services) Ltd
30 - 34 North Street
Hailsham
East Sussex
BN27 1DW

COMPASS SUPPLY SOLUTIONS LIMITED (REGISTERED NUMBER: 03176107)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023

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

REVIEW OF BUSINESS
We are an industry leading supply & distribution expert to the global travel retail industry, backed by the infrastructure and personnel to make the company the largest UK based duty-free FMCG provider within 5 years. Our network of preferred partners provides us with the scale, focus and execution to provide specialist logistics, distribution and consolidation, supplying tailor-made, bespoke delivery options to guarantee ease, expediency and exceptional customer service to our busy clients.

Over the next few years, we will continue to extend our reach within both the international Aviation and Maritime sectors, opening up new supply routes into domestic and international Military, NATO and Duty-Free Retail, while continuing to grow our historic UK customer base.

Key Performance Indicators of the company

The below key performance indicators are used by the director to measure the group's success against tangible objectives and target setting:



2023 Actual

2022 Actual
Yr-on-Yr
Change
2023
Budget
2022
Budget
Yr-on-Yr
Change
£ £ % £ £ %
Turnover(Ex
VAT)

13,505,763

10,949,582

23%

12,774,904

10,000,546

28%
Gross Profit 2,820,392 2,390,437 18% 2,666,702 2,042,310 31%
Margin 21% 22% 20%

We track our performance using a mixture of financial and non-financial measures, which we believe best reflect our strategic priorities for growth, efficiency and shareholder returns underpinned by safe and responsible working practices.


COMPASS SUPPLY SOLUTIONS LIMITED (REGISTERED NUMBER: 03176107)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023

PRINCIPAL RISKS AND UNCERTAINTIES
In addition to the ongoing competitive pressures, the principal risks facing the company are the continued economic uncertainty due to Covid-19 and the impact this has on the recovery of the Duty-Free Travel sector, increased regulation post Brexit and security concerns that impact upon the travel and tourist industry. The director continues to assess the implications of these risks and mitigate them by working closely with our core customers and suppliers to manage the current economic uncertainty and sector security concerns whilst continuing to manage and improve our robust due diligence process.

Going concern

The director has considered it appropriate to prepare these financial statements on a going concern basis.

The company is closely monitored by the director and the after effect of the pandemic on the hospitality industry. The company has seen an increase in the trading following the easing of lockdown measures and continues to receive support from its bankers and parent company. In addition, forecasts have been prepared which indicate the company will have sufficient funds to meet its liabilities. The company has access to cash balances, if required, from associated companies and beneficial owners and is therefore well placed to cover working capital and funding requirements.

Credit risk

The company's main financial assets are cash and trade debtors. The director considers there to be minimal risk in relation to the company's cash balances as these are all held at reputable financial institutions. The director manages credit risk in respect of the company's trade debtors by reviewing and stipulating credit limits for all customers. The company has implemented policies to undertake due diligence and credit checks on customers to manage credit risk.

Liquidity risk

The company actively manages its liquidity risk in order to meet its foreseeable needs both in the short term and medium term.

Currency risk

A small proportion of the company's sales and purchases are denominated in currencies other than Sterling. Therefore, the directors consider there to be limited exposure to currency risk and where limited risk arises, the company makes use of short term forward currency contracts as required.

FUTURE PROSPECTS AND COVID 19
The company has implemented measures to ensure our skilled workforce are retained. With our staff and our financial investors remaining strong, this places the company in a very strong position to take advantage of the forthcoming travel boom. We are already seeing a growth due to the company fulfilling the underlying needs of customers where many of our competitors have not fared so well.

As we continue to drive forward our award-winning Global Travel Retail and Bonded Solutions business(es) within the wider group, investing in talent, supporting the modern-day apprenticeship schemes and vital real world experience is fundamental to our continued success and the retention of people.

The group contains a general storage & distribution warehouse; we see huge potential to compete against not only the main UK bonds, but with borders returning to the UK following Brexit, we are competing with the major EU bonds exporting outside the EU.


COMPASS SUPPLY SOLUTIONS LIMITED (REGISTERED NUMBER: 03176107)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023

THANKS
No business is successful without the full support and commitment of its employees. The result for the year is built on their dedication and hard work for which the Board would like to thank them.

ON BEHALF OF THE BOARD:





B K H Thakrar - Director


31 July 2024

COMPASS SUPPLY SOLUTIONS LIMITED (REGISTERED NUMBER: 03176107)

REPORT OF THE DIRECTOR
FOR THE YEAR ENDED 31 OCTOBER 2023

The director presents his report with the financial statements of the company for the year ended 31 October 2023.

DIVIDENDS
No dividends will be distributed for the year ended 31 October 2023.

DIRECTORS
The directors who have held office during the period from 1 November 2022 to the date of this report are as follows:

F R Welkerling - resigned 1 June 2023
B K H Thakrar - appointed 31 May 2023

DISCLOSURE IN THE STRATEGIC REPORT
In accordance with s414C(11) of the Companies Act 2006, the information relating to risk management and future developments is included in the Strategic Report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES
The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

COMPASS SUPPLY SOLUTIONS LIMITED (REGISTERED NUMBER: 03176107)

REPORT OF THE DIRECTOR
FOR THE YEAR ENDED 31 OCTOBER 2023


AUDITORS
The auditors, Watson Associates (Audit Services) Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





B K H Thakrar - Director


31 July 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
COMPASS SUPPLY SOLUTIONS LIMITED

Opinion
We have audited the financial statements of Compass Supply Solutions Limited (the 'company') for the year ended 31 October 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 October 2023 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

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

Other information
The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
COMPASS SUPPLY SOLUTIONS LIMITED


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Director.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of director's remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of director
As explained more fully in the Statement of Director's Responsibilities set out on page five, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
COMPASS SUPPLY SOLUTIONS LIMITED


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

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to employment laws and we considered the extent to which non-compliance might have a material effect on the financial statements.

We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determine that the principal risks were related to posting inappropriate journal entries to achieve desired financial results and the manipulation of exceptional items and management bias in accounting estimates.

Audit procedures performed by the engagement team included:
- enquiries with management, including consideration of known or suspected instances of fraud and non-compliance with laws and regulations and examining supporting calculations where a provision has been made in respect of these;
- reading key correspondence with regulatory authorities in relation to compliance with certain employment laws;
- understanding and evaluating the design and implementation of management’s controls designed to prevent and detect irregularities;
- challenging assumptions and judgements made by management in their significant accounting estimates, in particular in relation to valuation of investment property, impairment of investments in subsidiaries and the measurement and classification of exceptional items;
- identifying and testing journal entries, in particular any journal entries posted with unusual account combinations and postings by unusual users.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
COMPASS SUPPLY SOLUTIONS LIMITED


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




Stephen James Moore (Senior Statutory Auditor)
for and on behalf of Watson Associates (Audit Services) Ltd
30 - 34 North Street
Hailsham
East Sussex
BN27 1DW

31 July 2024

COMPASS SUPPLY SOLUTIONS LIMITED (REGISTERED NUMBER: 03176107)

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2023

2023 2022
Notes £    £   

TURNOVER 4 13,505,763 10,949,582

Cost of sales (10,685,371 ) (8,559,145 )
GROSS PROFIT 2,820,392 2,390,437

Administrative expenses (2,248,299 ) (1,807,312 )
OPERATING PROFIT 6 572,093 583,125

Interest receivable and similar income 73,992 80,376
646,085 663,501

Interest payable and similar expenses 8 (139,407 ) (145,440 )
PROFIT BEFORE TAXATION 506,678 518,061

Tax on profit 9 (63,742 ) (87,120 )
PROFIT FOR THE FINANCIAL YEAR 442,936 430,941

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

442,936

430,941

COMPASS SUPPLY SOLUTIONS LIMITED (REGISTERED NUMBER: 03176107)

BALANCE SHEET
31 OCTOBER 2023

2023 2022
Notes £    £   
FIXED ASSETS
Intangible assets 10 - -
Tangible assets 11 261,154 325,352
Investments 12 22,948 22,948
284,102 348,300

CURRENT ASSETS
Stocks 13 1,713,198 1,403,262
Debtors 14 6,762,168 5,208,506
Cash at bank - 15,717
8,475,366 6,627,485
CREDITORS
Amounts falling due within one year 15 (4,802,049 ) (3,010,440 )
NET CURRENT ASSETS 3,673,317 3,617,045
TOTAL ASSETS LESS CURRENT
LIABILITIES

3,957,419

3,965,345

CREDITORS
Amounts falling due after more than one
year

16

(946,790

)

(1,388,173

)

PROVISIONS FOR LIABILITIES 20 (54,607 ) (64,086 )
NET ASSETS 2,956,022 2,513,086

CAPITAL AND RESERVES
Called up share capital 21 3 3
Retained earnings 2,956,019 2,513,083
SHAREHOLDERS' FUNDS 2,956,022 2,513,086

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


COMPASS SUPPLY SOLUTIONS LIMITED (REGISTERED NUMBER: 03176107)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 November 2021 3 2,082,142 2,082,145

Changes in equity
Total comprehensive income - 430,941 430,941
Balance at 31 October 2022 3 2,513,083 2,513,086

Changes in equity
Total comprehensive income - 442,936 442,936
Balance at 31 October 2023 3 2,956,019 2,956,022

COMPASS SUPPLY SOLUTIONS LIMITED (REGISTERED NUMBER: 03176107)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

1. STATUTORY INFORMATION

Compass Supply Solutions Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows.

Preparation of consolidated financial statements
The financial statements contain information about Compass Supply Solutions Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 399(2A) of the Companies Act 2006 from the requirements to prepare consolidated financial statements.

Significant judgements and estimates
In the process of applying the company's accounting policies management has made the following judgements that have the most significant effect on the amounts recognised in the financial statements.

The key assumptions concerning the future, and other key sources of estimation uncertainty at the balance sheet date, that have significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are also discussed below:

Impairment of trade receivables (including off-invoice discounts and rebates)
Balances owed from third parties are reviewed for impairment on a regular basis and whenever events or circumstance indicate that the related balance may not be recoverable. Management undertake such steps as they consider necessary to minimise risk of impairment including the use of credit references and insurance against debtor default.

Stock obsolescence
Management review all stock lines on a regular basis and whenever an indication exists that individual lines may be over-valued, an appropriate adjustment is made. Stock is held at the lower of cost and net realisable value.

COMPASS SUPPLY SOLUTIONS LIMITED (REGISTERED NUMBER: 03176107)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2023

2. ACCOUNTING POLICIES - continued

Revenue
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

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

Sale of goods
Revenue from the sale of goods is recognised when all of the following conditions are satisfied;
- the company has transferred the significant risks and rewards of ownership to the buyer; the company retains neither continuing managerial involvement to the degree usually associated with
- ownership nor effective control over the goods sold;
- the amount of revenue can be reliably measured
- it is probable that the company will receive the consideration due under the transaction; and
- the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 0, is being amortised evenly over its estimated useful life of nil years.

Goodwill represents the difference between amounts paid on the cost of a business combination and the aquirer's interest in the fair value of the identifiable assets and liabilities of the aquiree at the date of aquisition. Subsequent to initial recognition, Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill has been fully amortised.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Short leasehold - in accordance with the property
Fixtures and fittings - 25% on cost
Motor vehicles - 25% on cost

Investments in subsidiaries
Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted company shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the profit and loss for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of the purchase on a first in, first out basis and is stated net of contributions from suppliers under trade agreements.

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

COMPASS SUPPLY SOLUTIONS LIMITED (REGISTERED NUMBER: 03176107)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2023

2. ACCOUNTING POLICIES - continued

Financial instruments
The company only enters into basic financial instruments transactions that result in the recognition of the financial assets and liabilities like trade and other accounts receivable and payable, loans from bank and other third parties, and loans to related parties.

Debt instruments that are payable or receivable within one year, are measured, initially and subsequently at the undiscounted amount of the cash or other consideration expected to be paid or received; other debt instruments are initially measured at present value of the future payments and subsequently at the amortised cost using the effective interest method

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss.

Financial assets and liabilities are offset and the net amount reported in the balance sheet only when there is an enforceable right to set off the recognised amounts and there is no intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

COMPASS SUPPLY SOLUTIONS LIMITED (REGISTERED NUMBER: 03176107)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2023

2. ACCOUNTING POLICIES - continued

Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.

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

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

Going concern
The directors considers it appropriate to prepare these financial statements on a going concern basis.

The company is closely monitored by the director and the after effect of the pandemic on the hospitality industry. The company has seen an increase in trading following the easing of lockdown measures and continues to receive support from its bankers and parent company. In addition, forecasts have been prepared which indicate the company will have sufficient funds to meet its liabilities. The company has access to cash balances, if required, from associates companies and beneficial owners and is therefore well placed to cover working capital and funding requirements.

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

3. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

No significant judgements have had to be made by management in preparing these financial statements.

There were no key assumptions made concerning the future, and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

4. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2023 2022
£    £   
United Kingdom 7,171,054 4,976,760
Europe 2,588,456 2,288,605
Rest of the world 3,746,253 3,684,217
13,505,763 10,949,582

The turnover and profit (2022 - profit) before taxation are attributable to the one principal activity of the company.

COMPASS SUPPLY SOLUTIONS LIMITED (REGISTERED NUMBER: 03176107)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2023

5. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 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 1
Administration 18 17
Warehouse and distribution 19 19
38 37

2023 2022
£    £   
Directors' remuneration 143,605 162,770

6. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2023 2022
£    £   
Other operating leases 278,483 248,708
Depreciation - owned assets 126,435 122,618
Foreign exchange differences (12,420 ) (3,340 )

7. AUDITORS' REMUNERATION

2023 2022
£ £
Fees payable to the company's auditors for the audit of the financial
statements

30,000

22,000
Fees payable to the company's auditors for the audit of the financial
statements - prior year under-accrual

-

14,855
Fees payable to company's auditors for non-audit services - 11,000
30,000 47,855

COMPASS SUPPLY SOLUTIONS LIMITED (REGISTERED NUMBER: 03176107)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2023

8. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank interest 134,586 130,089
Hire purchase 4,821 15,351
139,407 145,440

9. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 73,221 -

Deferred tax (9,479 ) 87,120
Tax on profit 63,742 87,120

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit before tax 506,678 518,061
Profit multiplied by the standard rate of corporation tax in the UK of
22.520% (2022 - 19%)

114,104

98,432

Effects of:
Expenses not deductible for tax purposes - 1,066
Depreciation in excess of capital allowances 11,536 -
Utilisation of tax losses - (32,755 )
Change in deferred tax rate (9,479 ) 20,426
Permanent impact of super deduction allowance - (49 )
Group relief impact (52,419 ) -
Total tax charge 63,742 87,120

At Budget 2021, the government announced that the Corporation Tax main rate for the years starting 1 April 2023 will increase from 19% to 25%. In addition, the government legislated in Finance Bill 2021 to introduce a small profits rate of 19% for financial year April 2023. The small profits rate will apply to profits of £50,000 or less.

COMPASS SUPPLY SOLUTIONS LIMITED (REGISTERED NUMBER: 03176107)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2023

10. INTANGIBLE FIXED ASSETS
Goodwill
£   
COST
At 1 November 2022
and 31 October 2023 266,792
AMORTISATION
At 1 November 2022
and 31 October 2023 266,792
NET BOOK VALUE
At 31 October 2023 -
At 31 October 2022 -

11. TANGIBLE FIXED ASSETS
Fixtures
Short and Motor
leasehold fittings vehicles Totals
£    £    £    £   
COST
At 1 November 2022 294,698 245,872 122,242 662,812
Additions 5,955 56,282 - 62,237
At 31 October 2023 300,653 302,154 122,242 725,049
DEPRECIATION
At 1 November 2022 92,075 152,484 92,901 337,460
Charge for year 42,809 54,285 29,341 126,435
At 31 October 2023 134,884 206,769 122,242 463,895
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

The net book value of assets held under finance leases or hire purchase contracts, included above, are £97,126 (2022: £132,511). The depreciation charge for the year on assets held under finance leases or hire purchase contracts, included above, was £27,750 (2022: £68,508).

COMPASS SUPPLY SOLUTIONS LIMITED (REGISTERED NUMBER: 03176107)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2023

12. FIXED ASSET INVESTMENTS
Shares in
group Unlisted
undertakings investments Totals
£    £    £   
COST
At 1 November 2022
and 31 October 2023 15,448 7,500 22,948
NET BOOK VALUE
At 31 October 2023 15,448 7,500 22,948
At 31 October 2022 15,448 7,500 22,948

The company's investments at the Balance Sheet date in the share capital of companies include the following:

CSS On-Trade Limited
Registered office: Unit 3, Crompton Way, Segensworth West, Fareham, Hampshire, PO15 5SS
Nature of business: Domestic beverage market supplies
%
Class of shares: holding
Ordinary 100.00

Compass Supply Solutions B.V
Registered office: Schiphol Boulevard 359, WTC Schiphol Airport, D-Tower 11th Floor, 1118BJ Schiphol
Nature of business: Wholesale of beverages
%
Class of shares: holding
Ordinary 100.00

13. STOCKS
2023 2022
£    £   
Goods for resale 1,713,198 1,403,262

14. DEBTORS
2023 2022
£    £   
Amounts falling due within one year:
Trade debtors 2,601,081 2,039,589
Amounts owed by group undertakings 1,716,559 1,501,075
Other debtors 435,905 -
VAT 434,070 153,360
Prepayments and accrued income 174,553 114,482
5,362,168 3,808,506

COMPASS SUPPLY SOLUTIONS LIMITED (REGISTERED NUMBER: 03176107)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2023

14. DEBTORS - continued
2023 2022
£    £   
Amounts falling due after more than one year:
Amounts owed by group undertakings 1,400,000 1,400,000

Aggregate amounts 6,762,168 5,208,506

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 17) 3,795,792 2,385,080
Hire purchase contracts (see note 18) 26,041 55,346
Trade creditors 801,133 486,889
Amounts owed to group undertakings 25,766 -
Tax 73,221 -
Social security and other taxes 17,897 4,717
Accruals and deferred income 62,199 78,408
4,802,049 3,010,440

16. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2023 2022
£    £   
Bank loans (see note 17) 930,865 1,346,173
Hire purchase contracts (see note 18) 15,925 42,000
946,790 1,388,173

17. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 1,395,246 941,947
Bank loans 2,400,546 1,443,133
3,795,792 2,385,080

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

COMPASS SUPPLY SOLUTIONS LIMITED (REGISTERED NUMBER: 03176107)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2023

18. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2023 2022
£    £   
Net obligations repayable:
Within one year 26,041 55,346
Between one and five years 15,925 42,000
41,966 97,346

Non-cancellable operating leases
2023 2022
£    £   
Within one year 480,000 254,000
Between one and five years 1,200,000 867,833
1,680,000 1,121,833

19. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Bank overdrafts 1,395,246 941,947
Bank loans 3,331,411 2,789,306
Hire purchase contracts 41,966 97,346
4,768,623 3,828,599

The hire purchase contracts are secured over the assets they relate to.

The company has a facility with HSBC Bank Plc, the balance at the year end amounted to £1,970,916 (2022: £999,183). This facility is secured by way of fixed and floating charge over the assets of the company. The company has an arranged overdraft in place which is also secured.

The company has a Coronavirus Business Interruption Loan Scheme (CBILS) of £2,000,000. The loan is repayable within 6 years from the date of the drawdown of the loan. The loan includes a guarantee in favour of the bank from a beneficial owner guaranteeing all liabilities of the borrower under the facility limited to £200,000.

20. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 54,607 64,086

COMPASS SUPPLY SOLUTIONS LIMITED (REGISTERED NUMBER: 03176107)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2023

20. PROVISIONS FOR LIABILITIES - continued

Deferred
tax
£   
Balance at 1 November 2022 64,086
Provided during year (9,479 )
Balance at 31 October 2023 54,607

The deferred tax provision of £54,607 (2022: £64,086) relates to an asset of £NIL (2022: £NIL) for trading losses carried forward expected to be utilised against future profits, an asset of £NIL (2022: £NIL) for unpaid employer pension contributions expected to be paid and allowed as an expense for corporation tax in a future period, and a provision of £54,607 (£2022: £64,086) for capital allowances in excess of depreciation.

21. CALLED UP SHARE CAPITAL

Ordinary shares have full voting rights and entitlement to dividends and the repayment of capital.

22. CONTINGENT LIABILITIES

The company holds a Movement Guarantee to the value of £250,000. This is in relation to the movement of duty suspended products within the EU and for export. The company's bank acts as a guarantor for the full value and retains a fixed and floating charge against all current and future assets of the company for security. This liability would only crystalise in the event of HMRC deeming it necessary to recoup duty on good which entered the UK market. There is no evidence of any events this year that would cause crystalisation.

A class guarantee of £400,000 is in place and relates to increased supplier credit terms and as such the actual liability is included within trade creditors.

An unlimited multilateral guarantee is in place with Compass Supply Solutions Limited, Ltd, CSS Group Limited, Chichester Bond Limited and a related company.

A composite company unlimited multilateral guarantee was given by Compass Supply Solutions Limited and CSS Group Limited.

The company has committed to support CSS On-Trade Limited by providing adequate financial assistance where necessary to allow the company to continue to trade for the foreseeable future.This is for a minimum of 12 months from the date of signing the balance sheet.

23. RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

CSS Group Limited is regarded by the director as being the company's ultimate parent company.