REGISTERED NUMBER: 10505980 (England and Wales) |
ABSOLUTE GROUP HOLDINGS UK LTD |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE PERIOD 1 JULY 2022 TO 29 JUNE 2023 |
REGISTERED NUMBER: 10505980 (England and Wales) |
ABSOLUTE GROUP HOLDINGS UK LTD |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE PERIOD 1 JULY 2022 TO 29 JUNE 2023 |
ABSOLUTE GROUP HOLDINGS UK LTD (REGISTERED NUMBER: 10505980) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE PERIOD 1 JULY 2022 TO 29 JUNE 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 7 |
Consolidated Statement of Comprehensive Income | 10 |
Consolidated Statement of Financial Position | 11 |
Company Statement of Financial Position | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Statement of Cash Flows | 15 |
Notes to the Consolidated Statement of Cash Flows | 16 |
Notes to the Consolidated Financial Statements | 18 |
ABSOLUTE GROUP HOLDINGS UK LTD |
COMPANY INFORMATION |
FOR THE PERIOD 1 JULY 2022 TO 29 JUNE 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants and Statutory Auditor |
15-17 Church Street |
Stourbridge |
West Midlands |
DY8 1LU |
ABSOLUTE GROUP HOLDINGS UK LTD (REGISTERED NUMBER: 10505980) |
GROUP STRATEGIC REPORT |
FOR THE PERIOD 1 JULY 2022 TO 29 JUNE 2023 |
The directors present their strategic report of the company and the group for the period 1 July 2022 to 29 June 2023. |
PRINCIPLE ACTIVITY |
The principal activities of the group are that of commercial roofing contractors and the manufacturing of bespoke engineered products for the roofing sector. |
The group has 2 main trading areas: |
Absolute Roofing Solutions specialise in all aspects of roofing refurbishments including, asbestos replacement, roof sheeting comprising of built up and composite panel systems, built up felt roofing, gutter maintenance and re lining and reactive roof maintenance. We work with clients from the original survey continuing throughout the project right up to practical completion to ensure that the best possible service is provided at every stage of the process. |
Oakham Sheet Metal Company Limited (Oakham) and J.P.M Press Brake Sections Limited (JPM) are both well known, well respected and long-standing manufacturers of gutters and flashings for the roofing industry. Oakham specializes in the manufacture of flashings, gutters and downpipes, whilst JPM focuses on the fabrication of single skin and insulated gutters including ancillary items such as stop ends, outlets, corners, weirs and rainwater pipes etc. |
Our manufacturing businesses have each over 40 years of experience and in 2023 our roofing business celebrated their 10-year anniversary. |
REVIEW OF BUSINESS |
We are proud to remain a privately owned group and operate from 3 locations, our roofing business in Coleshill and our manufacturing businesses in Brierley Hill and West Bromwich. |
During the year, the group was able to acquire the freehold of its head office premises in Coleshill for £1.8m. This was a strategic decision made by the directors and creates an additional passive income rental income stream. |
The group has seen continued growth, evidenced by a 14.9% increase in group revenues from FY22 to FY23. Whilst this was influenced by the acquisition of JPM on 31 January 2022 it has been predominantly down to organic growth. |
Trading conditions remain difficult and at times challenging especially across the construction and refurbishment sector. Despite this the group is exceptionally pleased to be able to, once again, report growth which has been achieved through the hard work and persistence of all of our teams. |
ABSOLUTE GROUP HOLDINGS UK LTD (REGISTERED NUMBER: 10505980) |
GROUP STRATEGIC REPORT |
FOR THE PERIOD 1 JULY 2022 TO 29 JUNE 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The directors are constantly on-guard monitoring and mitigating business risks which arise by having widespread product and customer base. The principle risks and uncertainties faced by the business include: shortage of skilled labour, raw material prices, the construction sector conditions and financial instruments / interest rate risks. |
Shortage of skilled labour: a key risk to productivity is the lack of skilled labour which has been a recurring challenge in recent years. Whilst this appears to have reduced slightly, we continue to invest in our people and management systems to improve the efficiency in both our manufacturing and contract management. |
Raw material prices: when raw material prices are volatile the directors believe the key risk is the groups ability to pass increases on to our customers. The group manages this risk by a mix of developing strong supplier relationships and customer communication. The group is committed to operate transparent pricing with our customers and is focused on balancing price increases with maintaining a competitive price. |
Construction sector conditions: given the principal activities of the group, both our roofing operation and our manufacturing businesses are all exposed to what has been a volatile construction sector. A slowdown in certain areas of construction impacted on parts of the group. However, as the group is active in both new construction and refurbishments this was manageable. This remains a risk to the group and we will continue to identify opportunities of diversification to reduce this further. |
Financial instruments / Interest rates: the group has and continues to use bank and other borrowings to fund the working capital demand of the business. The business therefore operates under credit, liquidity and interest risks. The main trading entities operate an Invoice discounting facility through which a degree of headroom exists. This allows flexibility in funding and allows, to some degree, the interest risk to be managed. |
STRATEGY |
The group's strategy is to grow the business by the provision of a competitively priced, flexible and efficient service for the whole industrial and commercial roofing sector. In addition, the group will look for opportunities to grow both organically and via acquisition, where products and services are complementary or open to new markets. The group continues to investigate new opportunities as they become available. |
ABSOLUTE GROUP HOLDINGS UK LTD (REGISTERED NUMBER: 10505980) |
GROUP STRATEGIC REPORT |
FOR THE PERIOD 1 JULY 2022 TO 29 JUNE 2023 |
FINANCIAL KEY PERFORMANCE INDICATORS (KPIS) |
The directors believe that the KPIs are those that communicate the financial performance and strength of the group as a whole. These are summarized below: |
FY23 | FY22 |
Sales (£ ) | 14,828 | 12,904 |
Gross Profit Margin (%) | 22.5 | 18.2 |
EBITDA (£ ) | 1,014 | 851 |
Debtor Days | 65.6 | 100.1 |
Creditor Days | 70.6 | 96.0 |
The group is pleased to report a successful year that has been delivered by particularly strong sales activity and ongoing cost control exercises. |
ON BEHALF OF THE BOARD: |
ABSOLUTE GROUP HOLDINGS UK LTD (REGISTERED NUMBER: 10505980) |
REPORT OF THE DIRECTORS |
FOR THE PERIOD 1 JULY 2022 TO 29 JUNE 2023 |
The directors present their report with the financial statements of the company and the group for the period 1 July 2022 to 29 June 2023. |
PRINCIPAL ACTIVITY |
The principal activities of the group are that of commercial roofing contractors and the manufacturing of bespoke engineered products for the roofing sector. |
DIVIDENDS |
The total distribution of dividends for the period ended 29 June 2023 will be £ 200,000 . |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 July 2022 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are 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 directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
ABSOLUTE GROUP HOLDINGS UK LTD (REGISTERED NUMBER: 10505980) |
REPORT OF THE DIRECTORS |
FOR THE PERIOD 1 JULY 2022 TO 29 JUNE 2023 |
AUDITORS |
The auditors, Folkes Worton LLP, having been appointed during the year, will be proposed for re-appointment at the forthcoming Annual General Meeting.will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ABSOLUTE GROUP HOLDINGS UK LTD |
Opinion |
We have audited the financial statements of Absolute Group Holdings UK Ltd (the 'parent company') and its subsidiaries (the 'group') for the period ended 29 June 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 29 June 2023 and of the group's profit for the period then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the 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 the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ABSOLUTE GROUP HOLDINGS UK LTD |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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 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 group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ABSOLUTE GROUP HOLDINGS UK LTD |
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. |
Based on our understanding of the group, the company and their industry, we identified the principal risks of non-compliance with laws and regulations 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 Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements and determined that the principal risks were related to posting inappropriate journal entries to increase revenue or reduce expenditure, and management bias in accounting estimates and judgements. In response to the above identified risks audit procedures were designed to appropriately drawn conclusions. Audit procedures such as; |
-Reviewing and challenging journal entries, in particular unusual account combinations; |
-Challenging assumptions and judgements made by management in their significant accounting estimates; and |
-Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud |
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remains a risk of not detecting irregularities, as these may include collusion, forgery, intentional omissions, misrepresentations or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. |
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. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants and Statutory Auditor |
15-17 Church Street |
Stourbridge |
West Midlands |
DY8 1LU |
ABSOLUTE GROUP HOLDINGS UK LTD (REGISTERED NUMBER: 10505980) |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME |
FOR THE PERIOD 1 JULY 2022 TO 29 JUNE 2023 |
Period |
1/7/22 |
to | Year Ended |
29/6/23 | 30/6/22 |
(Unaudited) |
Notes | £ | £ |
TURNOVER | 14,828,748 | 12,904,343 |
Cost of sales | 11,488,281 | 10,557,001 |
GROSS PROFIT | 3,340,467 | 2,347,342 |
Administrative expenses | 2,874,148 | 1,725,160 |
466,319 | 622,182 |
Other operating income | 262,718 | 25,314 |
OPERATING PROFIT | 4 | 729,037 | 647,496 |
Interest receivable and similar income | 66 | 3 |
729,103 | 647,499 |
Interest payable and similar expenses | 5 | 264,535 | 132,438 |
PROFIT BEFORE TAXATION | 464,568 | 515,061 |
Tax on profit | 6 | 22,975 | 107,150 |
PROFIT FOR THE FINANCIAL PERIOD |
ABSOLUTE GROUP HOLDINGS UK LTD (REGISTERED NUMBER: 10505980) |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
29 JUNE 2023 |
2023 | 2022 |
(Unaudited) |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 | 53,584 | 68,282 |
Tangible assets | 10 | 4,194,655 | 2,116,995 |
Investments | 11 | - | 2 |
4,248,239 | 2,185,279 |
CURRENT ASSETS |
Stocks | 12 | 195,585 | 452,852 |
Debtors | 13 | 3,577,282 | 4,079,367 |
Cash at bank and in hand | 215,397 | 455,613 |
3,988,264 | 4,987,832 |
CREDITORS |
Amounts falling due within one year | 14 | 4,053,120 | 4,547,023 |
NET CURRENT (LIABILITIES)/ASSETS | (64,856 | ) | 440,809 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
4,183,383 |
2,626,088 |
CREDITORS |
Amounts falling due after more than one year | 15 | (2,595,617 | ) | (1,360,771 | ) |
PROVISIONS FOR LIABILITIES | 18 | (458,560 | ) | (377,704 | ) |
NET ASSETS | 1,129,206 | 887,613 |
CAPITAL AND RESERVES |
Called up share capital | 19 | 100 | 100 |
Retained earnings | 20 | 1,129,106 | 887,513 |
SHAREHOLDERS' FUNDS | 1,129,206 | 887,613 |
The financial statements were approved by the Board of Directors and authorised for issue on 2 August 2024 and were signed on its behalf by: |
Mr A McManus - Director |
ABSOLUTE GROUP HOLDINGS UK LTD (REGISTERED NUMBER: 10505980) |
COMPANY STATEMENT OF FINANCIAL POSITION |
29 JUNE 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
Investments | 11 |
CURRENT ASSETS |
Debtors | 13 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 15 | ( |
) | ( |
) |
PROVISIONS FOR LIABILITIES | 18 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Retained earnings | 20 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 299,368 | 667,587 |
The financial statements were approved by the Board of Directors and authorised for issue on |
ABSOLUTE GROUP HOLDINGS UK LTD (REGISTERED NUMBER: 10505980) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE PERIOD 1 JULY 2022 TO 29 JUNE 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 July 2021 | 100 | 681,922 | 682,022 |
Changes in equity |
Dividends | - | (202,320 | ) | (202,320 | ) |
Total comprehensive income | - | 407,911 | 407,911 |
Balance at 30 June 2022 | 100 | 887,513 | 887,613 |
Changes in equity |
Dividends | - | (200,000 | ) | (200,000 | ) |
Total comprehensive income | - | 441,593 | 441,593 |
Balance at 29 June 2023 | 100 | 1,129,106 | 1,129,206 |
ABSOLUTE GROUP HOLDINGS UK LTD (REGISTERED NUMBER: 10505980) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE PERIOD 1 JULY 2022 TO 29 JUNE 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 July 2021 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 30 June 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 29 June 2023 |
ABSOLUTE GROUP HOLDINGS UK LTD (REGISTERED NUMBER: 10505980) |
CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE PERIOD 1 JULY 2022 TO 29 JUNE 2023 |
Period |
1/7/22 |
to | Year Ended |
29/6/23 | 30/6/22 |
(Unaudited) |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 1,253,632 | 752,261 |
Interest paid | (233,658 | ) | (110,817 | ) |
Interest element of hire purchase and finance lease rental payments paid |
(30,877 |
) |
(21,621 |
) |
Government grants received | 11,896 | 17,796 |
Tax paid | (59,530 | ) | (48,892 | ) |
Net cash from operating activities | 941,463 | 588,727 |
Cash flows from investing activities |
Purchase of intangible fixed assets | - | (73,492 | ) |
Purchase of tangible fixed assets | (1,881,884 | ) | (1,239,170 | ) |
Sale of tangible fixed assets | 36,670 | 127,334 |
Sale of fixed asset investments | 2 | - |
Interest received | 66 | 3 |
Net cash from investing activities | (1,845,146 | ) | (1,185,325 | ) |
Cash flows from financing activities |
New loans in year | 1,176,131 | 455,147 |
Loan repayments in year | (90,349 | ) | - |
Capital repayments in year | (185,114 | ) | 194,561 |
Amount withdrawn by directors | (37,201 | ) | (47,019 | ) |
Equity dividends paid | (200,000 | ) | (202,320 | ) |
Net cash from financing activities | 663,467 | 400,369 |
Decrease in cash and cash equivalents | (240,216 | ) | (196,229 | ) |
Cash and cash equivalents at beginning of period |
2 |
455,613 |
651,842 |
Cash and cash equivalents at end of period | 2 | 215,397 | 455,613 |
ABSOLUTE GROUP HOLDINGS UK LTD (REGISTERED NUMBER: 10505980) |
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE PERIOD 1 JULY 2022 TO 29 JUNE 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
Period |
1/7/22 |
to | Year Ended |
29/6/23 | 30/6/22 |
(Unaudited) |
£ | £ |
Profit before taxation | 464,568 | 515,061 |
Depreciation charges | 316,366 | 239,079 |
Profit on disposal of fixed assets | (23,650 | ) | (30,266 | ) |
Government grants | (11,896 | ) | (17,796 | ) |
Finance costs | 264,535 | 132,438 |
Finance income | (66 | ) | (3 | ) |
1,009,857 | 838,513 |
Decrease/(increase) in stocks | 257,267 | (147,866 | ) |
Decrease/(increase) in trade and other debtors | 582,630 | (2,112,329 | ) |
(Decrease)/increase in trade and other creditors | (596,122 | ) | 2,173,943 |
Cash generated from operations | 1,253,632 | 752,261 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Period ended 29 June 2023 |
29/6/23 | 1/7/22 |
£ | £ |
Cash and cash equivalents | 215,397 | 455,613 |
Year ended 30 June 2022 |
30/6/22 | 1/7/21 |
(Unaudited) |
£ | £ |
Cash and cash equivalents | 455,613 | 651,842 |
ABSOLUTE GROUP HOLDINGS UK LTD (REGISTERED NUMBER: 10505980) |
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE PERIOD 1 JULY 2022 TO 29 JUNE 2023 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
Other |
non-cash |
At 1/7/22 | Cash flow | changes | At 29/6/23 |
£ | £ | £ | £ |
Net cash |
Cash at bank |
and in hand | 455,613 | (240,216 | ) | 215,397 |
455,613 | (240,216 | ) | 215,397 |
Debt |
Hire purchase and |
finance leases | (501,934 | ) | 185,114 | (510,464 | ) | (827,284 | ) |
Debts falling due |
within 1 year | (63,629 | ) | (46,371 | ) | - | (110,000 | ) |
Debts falling due |
after 1 year | (904,165 | ) | (1,039,411 | ) | - | (1,943,576 | ) |
(1,469,728 | ) | (900,668 | ) | (510,464 | ) | (2,880,860 | ) |
Total | (1,014,115 | ) | (1,140,884 | ) | (510,464 | ) | (2,665,463 | ) |
ABSOLUTE GROUP HOLDINGS UK LTD (REGISTERED NUMBER: 10505980) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE PERIOD 1 JULY 2022 TO 29 JUNE 2023 |
1. | STATUTORY INFORMATION |
Absolute Group Holdings UK Ltd is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The consolidated group financial statements consist of the financial statements of the parent company Absolute Group Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group's share of its interests in joint ventures and associates. |
All financial statements are made up to 31 December 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. |
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. |
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). |
Revenue from contracts for roofing services is recognised by reference to the stage of completion when the stage of completion, costs incurred and cost 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. |
Goodwill |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
ABSOLUTE GROUP HOLDINGS UK LTD (REGISTERED NUMBER: 10505980) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 JULY 2022 TO 29 JUNE 2023 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Freehold property | - |
Improvements to property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
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 and loss. Reversals of impairment losses are also recognised in profit or loss. |
Taxation |
Taxation for the period comprises current and deferred tax. Tax is recognised in the Consolidated 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 statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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 period end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
ABSOLUTE GROUP HOLDINGS UK LTD (REGISTERED NUMBER: 10505980) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 JULY 2022 TO 29 JUNE 2023 |
2. | ACCOUNTING POLICIES - continued |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
3. | EMPLOYEES AND DIRECTORS |
Period |
1/7/22 |
to | Year Ended |
29/6/23 | 30/6/22 |
(Unaudited) |
£ | £ |
Wages and salaries | 1,794,360 | 1,291,953 |
Social security costs | 118,884 | 92,973 |
Other pension costs | 18,307 | 13,688 |
1,931,551 | 1,398,614 |
The average number of employees during the period was as follows: |
Period |
1/7/22 |
to | Year Ended |
29/6/23 | 30/6/22 |
(Unaudited) |
Production | 26 | 22 |
Sales | 10 | 11 |
Administration and finance | 16 | 14 |
Information regarding the highest paid directer is as follows; |
Period 1/7/22 to 29/6/23 |
Year Ended 30/6/22 (Unaudited) |
Highest remunerated director- salary | £107,423 | £105,000 |
Highest remunerated director- pension | £1,321 | £1,321 |
ABSOLUTE GROUP HOLDINGS UK LTD (REGISTERED NUMBER: 10505980) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 JULY 2022 TO 29 JUNE 2023 |
4. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
Period |
1/7/22 |
to | Year Ended |
29/6/23 | 30/6/22 |
(Unaudited) |
£ | £ |
Hire of plant and machinery | 1,455,931 | 746,436 |
Depreciation - owned assets | 301,668 | 233,869 |
Profit on disposal of fixed assets | (23,650 | ) | (30,266 | ) |
Goodwill amortisation | 14,698 | 5,210 |
Auditors' remuneration | 18,750 | - |
CITB apprenticeship grants received | (11,896 | ) | (17,796 | ) |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
Period |
1/7/22 |
to | Year Ended |
29/6/23 | 30/6/22 |
(Unaudited) |
£ | £ |
Bank interest | 1,811 | 20,293 |
Bank loan interest | 105,882 | 6,639 |
Other interest costs | 9,329 | - |
Invoice finance charges | 116,636 | 83,885 |
Hire purchase interest | 30,877 | 21,621 |
264,535 | 132,438 |
ABSOLUTE GROUP HOLDINGS UK LTD (REGISTERED NUMBER: 10505980) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 JULY 2022 TO 29 JUNE 2023 |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the period was as follows: |
Period |
1/7/22 |
to | Year Ended |
29/6/23 | 30/6/22 |
(Unaudited) |
£ | £ |
Current tax: |
UK corporation tax | (26,983 | ) | 71,291 |
Prior year tax adjustment | (30,898 | ) | - |
Total current tax | (57,881 | ) | 71,291 |
Deferred tax | 80,856 | 35,859 |
Tax on profit | 22,975 | 107,150 |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the period is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
Period |
1/7/22 |
to | Year Ended |
29/6/23 | 30/6/22 |
(Unaudited) |
£ | £ |
Profit before tax | 464,568 | 515,061 |
Profit multiplied by the standard rate of corporation tax in the UK of 20.480 % (2022 - 19 %) |
95,144 |
97,862 |
Effects of: |
Expenses not deductible for tax purposes | 15,048 | 9,288 |
Depreciation in excess of capital allowances | 20,428 | - |
Adjustments to tax charge in respect of previous periods | (30,898 | ) | - |
Research and development enhanced expenditure | (76,747 | ) | - |
Total tax charge | 22,975 | 107,150 |
7. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
ABSOLUTE GROUP HOLDINGS UK LTD (REGISTERED NUMBER: 10505980) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 JULY 2022 TO 29 JUNE 2023 |
8. | DIVIDENDS |
Period |
1/7/22 |
to | Year Ended |
29/6/23 | 30/6/22 |
£ | £ |
Interim | 200,000 | 202,320 |
9. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 July 2022 |
and 29 June 2023 | 73,492 |
AMORTISATION |
At 1 July 2022 | 5,210 |
Amortisation for period | 14,698 |
At 29 June 2023 | 19,908 |
NET BOOK VALUE |
At 29 June 2023 | 53,584 |
At 30 June 2022 | 68,282 |
ABSOLUTE GROUP HOLDINGS UK LTD (REGISTERED NUMBER: 10505980) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 JULY 2022 TO 29 JUNE 2023 |
10. | TANGIBLE FIXED ASSETS |
Group |
Improvements |
Freehold | to | Plant and |
property | property | machinery |
£ | £ | £ |
COST |
At 1 July 2022 | 1,432,500 | 41,819 | 904,281 |
Additions | 1,778,818 | - | 297,922 |
Disposals | - | - | - |
At 29 June 2023 | 3,211,318 | 41,819 | 1,202,203 |
DEPRECIATION |
At 1 July 2022 | 6,583 | 37,351 | 620,186 |
Charge for period | 52,789 | 3,829 | 59,945 |
Eliminated on disposal | - | - | - |
At 29 June 2023 | 59,372 | 41,180 | 680,131 |
NET BOOK VALUE |
At 29 June 2023 | 3,151,946 | 639 | 522,072 |
At 30 June 2022 | 1,425,917 | 4,468 | 284,095 |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 July 2022 | 154,937 | 739,919 | 51,277 | 3,324,733 |
Additions | 10,935 | 288,396 | 16,277 | 2,392,348 |
Disposals | - | (67,957 | ) | - | (67,957 | ) |
At 29 June 2023 | 165,872 | 960,358 | 67,554 | 5,649,124 |
DEPRECIATION |
At 1 July 2022 | 139,000 | 371,829 | 32,789 | 1,207,738 |
Charge for period | 6,915 | 169,768 | 8,422 | 301,668 |
Eliminated on disposal | - | (54,937 | ) | - | (54,937 | ) |
At 29 June 2023 | 145,915 | 486,660 | 41,211 | 1,454,469 |
NET BOOK VALUE |
At 29 June 2023 | 19,957 | 473,698 | 26,343 | 4,194,655 |
At 30 June 2022 | 15,937 | 368,090 | 18,488 | 2,116,995 |
ABSOLUTE GROUP HOLDINGS UK LTD (REGISTERED NUMBER: 10505980) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 JULY 2022 TO 29 JUNE 2023 |
10. | TANGIBLE FIXED ASSETS - continued |
Company |
Freehold | Plant and |
property | machinery | Totals |
£ | £ | £ |
COST |
At 1 July 2022 |
Additions |
At 29 June 2023 |
DEPRECIATION |
At 1 July 2022 |
Charge for period |
At 29 June 2023 |
NET BOOK VALUE |
At 29 June 2023 |
At 30 June 2022 |
11. | FIXED ASSET INVESTMENTS |
Group |
Shares in |
group |
undertakings |
£ |
COST |
At 1 July 2022 | 2 |
Disposals | (2 | ) |
At 29 June 2023 | - |
NET BOOK VALUE |
At 29 June 2023 | - |
At 30 June 2022 | 2 |
ABSOLUTE GROUP HOLDINGS UK LTD (REGISTERED NUMBER: 10505980) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 JULY 2022 TO 29 JUNE 2023 |
11. | FIXED ASSET INVESTMENTS - continued |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 July 2022 |
and 29 June 2023 |
NET BOOK VALUE |
At 29 June 2023 |
At 30 June 2022 |
12. | STOCKS |
Group |
2023 | 2022 |
(Unaudited |
£ | £ |
Stocks | 195,585 | 452,852 |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
(Unaudited) |
£ | £ | £ | £ |
Trade debtors | 2,666,494 | 3,538,286 |
Amounts owed by group undertakings | - | - |
Other debtors | 94,805 | 457,452 |
Tax | 94,348 | 13,803 |
VAT | - | 8,436 |
Prepayments | 721,635 | 61,390 |
3,577,282 | 4,079,367 |
ABSOLUTE GROUP HOLDINGS UK LTD (REGISTERED NUMBER: 10505980) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 JULY 2022 TO 29 JUNE 2023 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
(Unaudited) |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 16) | 110,000 | 63,629 |
Hire purchase contracts and finance leases (see note 17) | 228,062 |
117,103 |
Trade creditors | 2,221,401 | 2,894,901 |
Amounts owed to group undertakings | - | - |
Tax | 58,734 | 95,600 |
Social security and other taxes | 230,087 | 87,728 |
Other creditors | 787,214 | 1,183,165 |
Directors' current accounts | 5,476 | 42,677 | 5,476 | 42,677 |
Accruals | 412,146 | 62,220 |
4,053,120 | 4,547,023 |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
(Unaudited) |
£ | £ | £ | £ |
Bank loans (see note 16) | 1,943,576 | 904,165 |
Hire purchase contracts and finance leases (see note 17) | 599,222 |
384,831 |
Other creditors | 52,819 | 71,775 |
2,595,617 | 1,360,771 |
ABSOLUTE GROUP HOLDINGS UK LTD (REGISTERED NUMBER: 10505980) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 JULY 2022 TO 29 JUNE 2023 |
16. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2023 | 2022 | 2023 | 2022 |
(Unaudited) |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | 110,000 | 63,629 |
Amounts falling due between one and two | years: |
Bank loans | 189,667 | 904,165 |
Amounts falling due between two and five | years: |
Bank loans | 237,000 | - |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans | 1,516,909 | - | 1,516,909 | - |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts | Finance leases |
2023 | 2022 | 2023 | 2022 |
(Unaudited) |
£ | £ | £ | £ |
Net obligations repayable: |
Within one year | 116,847 | 33,431 | 111,215 | 83,672 |
Between one and five years | 305,693 | 94,209 | 293,529 | 290,622 |
422,540 | 127,640 | 404,744 | 374,294 |
Company |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year |
ABSOLUTE GROUP HOLDINGS UK LTD (REGISTERED NUMBER: 10505980) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 JULY 2022 TO 29 JUNE 2023 |
17. | LEASING AGREEMENTS - continued |
Company |
Non-cancellable operating | leases |
2023 | 2022 |
£ | £ |
Within one year |
18. | PROVISIONS FOR LIABILITIES |
Group | Company |
2023 | 2022 | 2023 | 2022 |
(Unaudited) |
£ | £ | £ | £ |
Deferred tax | 458,560 | 377,704 | 2,569 | 5,600 |
Group |
Deferred |
tax |
£ |
Balance at 1 July 2022 | 377,704 |
Charge to Statement of Comprehensive Income during period | 80,856 |
Balance at 29 June 2023 | 458,560 |
Company |
Deferred |
tax |
£ |
Balance at 1 July 2022 |
Credit to Income Statement during period | ( |
) |
Balance at 29 June 2023 |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 100 | 100 |
ABSOLUTE GROUP HOLDINGS UK LTD (REGISTERED NUMBER: 10505980) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 JULY 2022 TO 29 JUNE 2023 |
20. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1 July 2022 | 887,513 |
Profit for the period | 441,593 |
Dividends | (200,000 | ) |
At 29 June 2023 | 1,129,106 |
Company |
Retained |
earnings |
£ |
At 1 July 2022 |
Profit for the period |
Dividends | ( |
) |
At 29 June 2023 |
ABSOLUTE GROUP HOLDINGS UK LTD (REGISTERED NUMBER: 10505980) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 JULY 2022 TO 29 JUNE 2023 |
21. | RELATED PARTY DISCLOSURES |
During the year transactions were entered into at market value with companies under common directorship. These transactions are shown below and also any balances which were due/owed at the year end. |
Sales | Purchases |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Absolute Building & Maintenance Ltd | 225,212 | 99,906 | 78,408 | 17,458 |
Absolute Electrical & Renewables Ltd | 79,372 | 478 | 37,600 | 405 |
Absolute Roof Tiling Ltd | 420,180 | 516,728 | 25,841 | 63,376 |
Absolute Self Storage Ltd | 11,573 | - | 1,476 | - |
Absolute Waterproofing Ltd | 123,334 | 119,313 | 307,698 | 75,048 |
859,671 | 736,425 | 451,023 | 156,287 |
Balances (due to) owed from at the year end |
2023 |
£ |
Absolute Building & Maintenance Ltd | 16,931 |
Absolute Electrical & Renewables Ltd | - |
Absolute Roof Tiling Ltd | (19,102 | ) |
Absolute Self Storage Ltd | 7,647 |
Absolute Waterproofing Ltd | (19,236 | ) |
(13,760 | ) |
22. | ULTIMATE CONTROLLING PARTY |
The directors, Mr Anthony McManus and Mr Victor Pepperell, by virtue of their shareholdings consider themselves to be the ultimate controlling parties. |