Company registration number 11027715 (England and Wales)
CROSSCO (1427) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
CROSSCO (1427) LIMITED
COMPANY INFORMATION
Directors
C R Stirling
A Gillard
G J Short
A S Moore
J S Hammond
Company number
11027715
Registered office
Unit A
Riverside Drive
Cleckheaton
West Yorkshire
England
BD19 4DH
Auditor
BHP LLP
New Chartford House
Centurion Way
Cleckheaton
Bradford
West Yorkshire
BD19 3QB
Bankers
Clydesdale Bank PLC
94 Briggate
Leeds
LS1 6NP
CROSSCO (1427) LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Directors' responsibilities statement
6
Independent auditor's report
7 - 9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 33
CROSSCO (1427) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 1 -

The directors present the strategic report for the year ended 30 April 2024.

Review of the business

The group has had a successful trading year with growth to key KPI’s including sales, average sales per customer, volume of customers, gross profit margin, gross profit generation and EBITDA. This is despite a difficult manufacturing market which suffered 11 months of negative PMI and the macro-economic conditions of a recessionary economy and high interest rates.

The management team have been focussed on business improvements including:

 

•    Product diversification into adjacent groups

 

•    Reducing supply chain costs and increasing goods-in efficiency

 

•    Continuous development of the ecommerce strategy

 

•    Growth of the sales team

 

•    Improving supplier relationships and terms

 

Whilst the UK manufacturing market continues with difficult trading conditions due to lack of growth, the business is confident that it can continue to grow, whilst successfully managing customer debt and risk.

Principal risks and uncertainties

The key business risks and uncertainties affecting the Group relate to uncertainty of supply in the manufacturing sector and economic instability.

Suppliers and supply chain disruption

The Group relies upon a relatively small number of key suppliers to provide the products sold to our customers. Strong existing long-term relationships with these suppliers and a short supply chain mitigate the risks of disruption to supply to customers. The Group has continued to invest in stock holding to mitigate delays in deliveries from suppliers and has implemented a procurement management system which uses both demand and supply side data points to identify optimal stock holdings at a part level.

Employees safety and retention

Investment in the people is a key pillar of the Group's success, the retention and development of our highly engaged workforce will continue through both internal and external training, career development and well-rounded rewards packages. Health and safety procedures are embedded in our daily routines with monthly reviews undertaken by an external consultant.

CROSSCO (1427) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -

Economic instability and currency Fluctuations

 

The Group purchases the majority of our products lines in Euros and therefore is exposed to transaction and translation foreign exchange risk. Exposure is partly minimised by natural hedging of matching Euro revenues with purchase costs, with the remaining exposure mitigated via hedging using forward exchange contracts. Wherever possible the company seeks to buy in Sterling, even from overseas suppliers, in order to mitigate the risk of currency fluctuations. Whilst the Group has exposure to overheads and purchases for resale inflationary pressures, they are able to absorb the impacts, offset via operational efficiencies or mitigate with dynamic pricing.

The Group is exposed to credit risk, this is mitigated by controls around provision of credit limits and clear debtor collection procedures supported by a collection system implemented in the year.

 

Working Capital

 

Working capital efficiency continued to be a focus in the year with regular monitoring of cashflow and refinement of stock purchasing strategies. The implementation of stock procurement management and debtor collection systems in the previous financial year has supported efficiencies.

 

Data Security, GDPR & Cyber Security

 

Security of data and compliance with GDPR regulations are managed through a GDPR framework which identifies where risks may arise. The framework is reviewed periodically to refresh risks. Cyber Security risks are managed through maintaining a robust and up to date infrastructure with our IT partners. There is continuous training of all staff to ensure the risk of social engineering is minimised. All systems are audited annually by independent, third party, consultants including penetration testing.

Key performance indicators

 

The Directors consider the key performance indicators for the Group to be:

 

• Revenue of £28m (2023: £26m). Increase of 8% on PY driven by increased average spend per customer and increased numbers of regular spending customers.

 

• Gross Profit of £11.9m (2023: £10.7m). Margin increased by 1.44% due to cost saving initiative around carriage and changes to ordering patterns to lower shipment frequencies.

 

• Operating Profit before depreciation, goodwill amortisation and exception items of £6.1m (2023: £5.1m). Continued investment in people and headcount to drive growth in following years.

 

• Cashflow of £(0.5m) (2023: £(0.2m): Decrease in cash seen in both years, with continued repayment of borrowings, but strong cash balance of £1m (2023: £1.5m) held at year end.

 

• Net debt of £13.5m (2023: £17.4m): Decrease of £4m upon the repayment of the bank loans.

 

Management use a number of operating KPIs to measure and improve business performance including;

 

• Daily sales and gross profit.

 

• Gross margin by product line.

 

• Stock turnover.

 

• Debtor days and cash collected.

 

• Staff costs as % of sales.

 

• Number of trading customers.

CROSSCO (1427) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 3 -

Future developments

 

Management do not believe there are any future developments to note other than those noted in the risk management and review of the business section. The business is continuing to grow.

 

Employee & Environmental Matters

 

The Environment and Social Governance framework has operated throughout the year. Positive employee engagement continues which was indicated in a strong and stable eNPS score. Specific people focussed initiatives during the year included mental health support, charitable support in the local community, an increase in investment in management training to support internal promotions and a discount scheme on retail items to assist employees with cost of living pressures.

 

In the year, the Group engaged an external body to define our climate mission, measure our emissions and build a route to aim to remove Scope 1 and 2 emissions by 2030. Alongside this we continue to improve our recycling levels and we worked with our suppliers on packaging usage reduction.

On behalf of the board

A S Moore
Director
2 August 2024
CROSSCO (1427) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 4 -

The directors present their annual report and financial statements for the year ended 30 April 2024.

Principal activities

The principle activity of the Group is the supply of engineering cutting tools, machine tool accessories, precision measuring tools, lubricants and machine shop accessories to a wide range of companies in precision engineering and metalworking industry. The business offers expert technical support and advice alongside prompt delivery to UK and Irish customers across from a range of over 100,000 stock lines.

Results and dividends

Dividends paid of £nil (2023: £394,571).

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

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

C R Stirling
A Gillard
G J Short
A S Moore
J S Hammond
Auditor

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

Statement of disclosure to auditor

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

Going concern

The directors have a reasonable expectation that the Company and Group has adequate resources to continue in operational existence based on the following assessments, considering the principal risks and uncertainties detailed above;

 

The group showed a net liability position at year end of £0.07m (2023: £1.5m), the group is supported by bank loans which are not due for repayment until 2027.

Thus, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

CROSSCO (1427) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 5 -
On behalf of the board
A S Moore
Director
2 August 2024
CROSSCO (1427) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 APRIL 2024
- 6 -

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

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

CROSSCO (1427) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CROSSCO (1427) LIMITED
- 7 -
Opinion

We have audited the financial statements of Crossco (1427) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

 

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

 

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

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

CROSSCO (1427) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CROSSCO (1427) LIMITED
- 8 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

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

Auditor's responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

We gained an understanding of the legal and regulatory framework applicable to the Group and the industry in which it operates and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that 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.

We focussed on laws and regulations, relevant to the Group, which could give rise to a material misstatement in the financial statements. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management, review of company minutes and legal expenses. There are inherent limitations in the audit procedures described 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.

As part of our audit, we addressed the risk of management override of internal controls, including testing of journals and review of nominal ledger. We evaluated whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

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

CROSSCO (1427) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CROSSCO (1427) LIMITED
- 9 -

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 an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Jamie Williams (Senior Statutory Auditor)
For and on behalf of BHP LLP
2 August 2024
Chartered Accountants
Statutory Auditor
New Chartford House
Centurion Way
Cleckheaton
Bradford
West Yorkshire
BD19 3QB
CROSSCO (1427) LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024
- 10 -
2024
2023
Notes
£
£
Turnover
3
27,938,618
25,987,888
Cost of sales
(16,039,617)
(15,293,544)
Gross profit
11,899,001
10,694,344
Administrative expenses
(7,879,936)
(7,598,925)
Operating profit
4
4,019,065
3,095,419
Interest receivable and similar income
7
-
0
1,145
Interest payable and similar expenses
8
(1,463,946)
(1,479,471)
Profit before taxation
2,555,119
1,617,093
Tax on profit
9
(1,105,234)
(589,787)
Profit for the financial year
23
1,449,885
1,027,306
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
CROSSCO (1427) LIMITED
GROUP BALANCE SHEET
AS AT
30 APRIL 2024
30 April 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
11
7,187,404
8,984,255
Other intangible assets
11
49,769
87,406
Total intangible assets
7,237,173
9,071,661
Tangible assets
12
356,297
435,575
7,593,470
9,507,236
Current assets
Stocks
15
3,702,078
3,594,361
Debtors
16
5,296,132
5,362,706
Cash at bank and in hand
997,479
1,517,928
9,995,689
10,474,995
Creditors: amounts falling due within one year
17
(7,047,530)
(6,466,257)
Net current assets
2,948,159
4,008,738
Total assets less current liabilities
10,541,629
13,515,974
Creditors: amounts falling due after more than one year
18
(10,556,667)
(14,976,667)
Provisions for liabilities
Deferred tax liability
20
51,756
55,986
(51,756)
(55,986)
Net liabilities
(66,794)
(1,516,679)
Capital and reserves
Called up share capital
22
21,080
21,080
Share premium account
23
426,420
426,420
Profit and loss reserves
23
(514,294)
(1,964,179)
Total equity
(66,794)
(1,516,679)

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 2 August 2024 and are signed on its behalf by:
02 August 2024
A S Moore
Director
Company registration number 11027715 (England and Wales)
CROSSCO (1427) LIMITED
COMPANY BALANCE SHEET
AS AT 30 APRIL 2024
30 April 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
13
1
1
Current assets
Debtors
16
592,639
544,947
Cash at bank and in hand
56,250
56,246
648,889
601,193
Creditors: amounts falling due within one year
17
-
(11,536)
Net current assets
648,889
589,657
Net assets
648,890
589,658
Capital and reserves
Called up share capital
22
21,080
21,080
Share premium account
23
426,420
426,420
Profit and loss reserves
23
201,390
142,158
Total equity
648,890
589,658

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £59,232 (2023 - £347,795 profit).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 2 August 2024 and are signed on its behalf by:
02 August 2024
A S Moore
Director
Company registration number 11027715 (England and Wales)
CROSSCO (1427) LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 13 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 May 2022
21,080
426,420
(2,596,914)
(2,149,414)
Year ended 30 April 2023:
Profit and total comprehensive income
-
-
1,027,306
1,027,306
Dividends
10
-
-
(394,571)
(394,571)
Balance at 30 April 2023
21,080
426,420
(1,964,179)
(1,516,679)
Year ended 30 April 2024:
Profit and total comprehensive income
-
-
1,449,885
1,449,885
Balance at 30 April 2024
21,080
426,420
(514,294)
(66,794)
CROSSCO (1427) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 14 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 May 2022
21,080
426,420
188,934
636,434
Year ended 30 April 2023:
Profit and total comprehensive income for the year
-
-
347,795
347,795
Dividends
10
-
-
(394,571)
(394,571)
Balance at 30 April 2023
21,080
426,420
142,158
589,658
Year ended 30 April 2024:
Profit and total comprehensive income
-
-
59,232
59,232
Balance at 30 April 2024
21,080
426,420
201,390
648,890
CROSSCO (1427) LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024
- 15 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
5,782,501
4,925,282
Interest paid
(1,463,946)
(1,479,471)
Income taxes paid
(859,705)
(556,981)
Net cash inflow from operating activities
3,458,850
2,888,830
Investing activities
Purchase of intangible assets
-
(59,086)
Purchase of tangible fixed assets
(67,299)
(149,192)
Proceeds from disposal of tangible fixed assets
8,000
29,249
Interest received
-
0
1,145
Net cash used in investing activities
(59,299)
(177,884)
Financing activities
Repayment of borrowings
-
(14,587,283)
Proceeds from new bank loans
-
13,500,000
Repayment of bank loans
(3,920,000)
(1,418,922)
Dividends paid to equity shareholders
-
0
(394,571)
Net cash used in financing activities
(3,920,000)
(2,900,776)
Net decrease in cash and cash equivalents
(520,449)
(189,830)
Cash and cash equivalents at beginning of year
1,517,928
1,707,758
Cash and cash equivalents at end of year
997,479
1,517,928
CROSSCO (1427) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 16 -
1
Accounting policies
Company information

Crossco (1427) Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Unit A, Riverside Drive, Cleckheaton, West Yorkshire, England, BD19 4DH.

 

The group consists of Crossco (1427) Limited and all of its subsidiaries.

1.1
Accounting convention

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

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

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

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

 

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Crossco (1427) 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 30 April 2024. 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.

CROSSCO (1427) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 17 -

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

1.4
Going concern

The directors have a reasonable expectation that the Company and Group has adequate resources to continue in operational existence based on the following assessments, considering the principal risks and uncertainties detailed above;

 

The group showed a net asset position at year end of £0.07m (2023: liability of £1.5m), the group is supported by bank loans which are not due for repayment until 2027.

Thus, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

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

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

1.6
Intangible fixed assets - goodwill

Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business.

 

Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight-line basis over its useful life. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed ten years.

1.7
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

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

Website development costs
33% straight line
CROSSCO (1427) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 18 -
1.8
Tangible fixed assets

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

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

Leasehold property improvements
10% straight line
Fixtures and fittings
20% straight line
Equipment
33% straight line
Motor vehicles
25% straight line

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

1.9
Fixed asset investments

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

 

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

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

1.10
Impairment of fixed assets

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

 

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

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

 

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

CROSSCO (1427) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 19 -

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

1.11
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.

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

1.12
Cash and cash equivalents

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

1.13
Financial instruments

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

 

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

 

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

Basic financial assets

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

Other financial assets

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

CROSSCO (1427) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 20 -
Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

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

Classification of financial liabilities

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

Basic financial liabilities

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

 

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

 

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

Other financial liabilities

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

 

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

CROSSCO (1427) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 21 -
Derecognition of financial liabilities

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

1.14
Equity instruments

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

1.15
Taxation

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

Current tax

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

Deferred tax

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

 

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

1.16
Provisions

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

 

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

CROSSCO (1427) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 22 -
1.17
Employee benefits

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

 

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

 

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

1.18
Retirement benefits

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

1.19
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Grants received in the prior year in relation to the government Coronavirus Job Retention Scheme (Furlough) have been recognised within other operating income. The grant is accounted for on the accruals basis once the related payroll return has been submitted.

1.20
Foreign exchange

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

CROSSCO (1427) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 23 -
2
Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the Statement of Financial Position date and the amounts reported for the revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.

Impairment of goodwill

The group reviews, on an annual basis, whether the investment has suffered any impairment. The recoverable amount is determined based from two calculations.

The higher of the two outputs is used for the assessment. Actual outcomes may vary.

Useful lives of property, plant and equipment

Property, plant and equipment is depreciated over its useful life. Useful lives are based on management's estimates of the periods within which the assets will generate revenue and which are periodically reviewed for continued appropriateness. Changes to judgements can result in significant variations in the carrying value and amounts charged to the Statement of Comprehensive Income.

Stock

Management estimates the net realisable values of stock, taking into account the most reliable evidence available at each reporting date. The future realisation of these stocks may be affected by future technology or other market-driven changes that may reduce future selling prices.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sale of goods
27,938,618
25,987,888
2024
2023
£
£
Other revenue
Interest income
-
1,145
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
27,368,638
25,442,384
Overseas
569,980
545,504
27,938,618
25,987,888
CROSSCO (1427) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 24 -
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange gains
(1,613)
(57,256)
Fees payable to the group's auditor for the audit of the group's financial statements
21,820
20,390
Depreciation of owned tangible fixed assets
142,949
173,060
Profit on disposal of tangible fixed assets
(4,372)
(5,479)
Amortisation of intangible assets
1,830,077
1,862,860
Operating lease charges
120,210
130,435
5
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Sales
45
41
-
-
Administration
26
24
-
-
Warehouse
19
23
-
-
Directors
4
4
-
-
Total
94
92
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
3,541,737
3,272,904
-
0
-
0
Social security costs
332,956
314,945
-
-
Pension costs
95,502
90,483
-
0
-
0
3,970,195
3,678,332
-
0
-
0
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
550,500
510,483
Company pension contributions to defined contribution schemes
31,081
31,577
581,581
542,060
CROSSCO (1427) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
6
Directors' remuneration
(Continued)
- 25 -

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2023 - 3).

Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
185,600
168,850
Company pension contributions to defined contribution schemes
10,822
10,076
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
-
1,145
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
1,463,946
880,092
Other interest
-
599,379
Total finance costs
1,463,946
1,479,471
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
1,109,464
689,069
Adjustments in respect of prior periods
-
0
(65,268)
Total current tax
1,109,464
623,801
Deferred tax
Origination and reversal of timing differences
(4,230)
(34,014)
Total tax charge
1,105,234
589,787
CROSSCO (1427) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
9
Taxation
(Continued)
- 26 -

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

2024
2023
£
£
Profit before taxation
2,555,119
1,617,093
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.49%)
638,780
315,222
Tax effect of expenses that are not deductible in determining taxable profit
451,940
363,689
Adjustments in respect of prior years
-
0
(65,268)
Effect of capital allowances and depreciation
1,329
(4,338)
Effect of changes in deferred tax closing position
2,377
(4,104)
Effect of other timing differences
10,808
(15,385)
Marginal relief
-
(29)
Taxation charge
1,105,234
589,787
10
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
-
394,571
CROSSCO (1427) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 27 -
11
Intangible fixed assets
Group
Goodwill
Website development costs
Total
£
£
£
Cost
At 1 May 2023
17,885,706
261,191
18,146,897
Disposals
-
0
(154,631)
(154,631)
At 30 April 2024
17,885,706
106,560
17,992,266
Amortisation and impairment
At 1 May 2023
8,901,451
173,785
9,075,236
Amortisation charged for the year
1,796,851
33,226
1,830,077
Disposals
-
0
(150,220)
(150,220)
At 30 April 2024
10,698,302
56,791
10,755,093
Carrying amount
At 30 April 2024
7,187,404
49,769
7,237,173
At 30 April 2023
8,984,255
87,406
9,071,661
The company had no intangible fixed assets at 30 April 2024 or 30 April 2023.
CROSSCO (1427) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 28 -
12
Tangible fixed assets
Group
Leasehold property improvements
Fixtures and fittings
Equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 May 2023
546,618
133,945
422,703
22,464
1,125,730
Additions
35,818
1,567
29,914
-
0
67,299
Disposals
-
0
(83,723)
(258,481)
-
0
(342,204)
At 30 April 2024
582,436
51,789
194,136
22,464
850,825
Depreciation and impairment
At 1 May 2023
284,711
106,724
298,252
468
690,155
Depreciation charged in the year
52,086
9,886
75,361
5,616
142,949
Eliminated in respect of disposals
-
0
(83,723)
(254,853)
-
0
(338,576)
At 30 April 2024
336,797
32,887
118,760
6,084
494,528
Carrying amount
At 30 April 2024
245,639
18,902
75,376
16,380
356,297
At 30 April 2023
261,907
27,221
124,451
21,996
435,575
The company had no tangible fixed assets at 30 April 2024 or 30 April 2023.
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
1
1
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 May 2023 and 30 April 2024
1
Carrying amount
At 30 April 2024
1
At 30 April 2023
1
CROSSCO (1427) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 29 -
14
Subsidiaries

Details of the company's subsidiaries at 30 April 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Crossco (1432) Limited
Unit A, Riverside Drive, Cleckheaton, BD19 4DH
Ordinary
100.00
-
Cutwel Limited
Unit A, Riverside Drive, Cleckheaton, BD19 4DH
Ordinary
-
100.00
15
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
3,702,078
3,594,361
-
0
-
0

The directors do not believe there is a material difference between the carrying cost and replacement value. This applied in both the current and prior financial periods.

16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
4,939,694
5,160,999
-
0
-
0
Corporation tax recoverable
11,154
11,154
-
0
-
0
Amounts owed by group undertakings
-
-
592,639
544,947
Other debtors
5,838
4,885
-
0
-
0
Prepayments and accrued income
339,446
185,668
-
0
-
0
5,296,132
5,362,706
592,639
544,947

Amounts owed by group companies are repayable on demand and attract a market rate of interest.

CROSSCO (1427) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 30 -
17
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
19
2,920,000
2,420,000
-
0
-
0
Trade creditors
2,365,228
2,260,194
-
0
-
0
Corporation tax payable
547,692
297,933
-
0
11,536
Other taxation and social security
908,514
946,799
-
-
Other creditors
108,480
98,255
-
0
-
0
Accruals and deferred income
197,616
443,076
-
0
-
0
7,047,530
6,466,257
-
0
11,536

The bank loans are secured by a fixed and floating charge over the company's property, assets and rights.

18
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
19
10,556,667
14,976,667
-
0
-
0

The bank loans are secured by a fixed and floating charge over the group's property, assets and rights.

19
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
13,476,667
17,396,667
-
0
-
0
Payable within one year
2,920,000
2,420,000
-
0
-
0
Payable after one year
10,556,667
14,976,667
-
0
-
0

In respect of liabilities payable or repayable by instalments, the following is included within creditors: amounts falling due within one year: £2,920,000 (2023: £2,420,000), amounts falling due within two to five years: £10,556,667 (2023: £14,976,667).

 

Bank loans

 

Facility A bears interest at a floating rate based on SONIA. The facility is repayable in instalments commencing in January 2023 and will be repaid in July 2026. The balance in respect of Facility A at 30 April 2024 was £6,250,000 (2023: £10,250,000).

 

Facility B bears interest at a floating rate based on SONIA. The facility is repayable in full in September 2027. The balance in respect of Facility B at 30 April 2023 was £7,500,000 (2023: £7,500,000).

 

Interest on the bank loan of £1,463,946 (2023: £880,092) was paid during the year in quarterly instalments. The bank loans are secured by a fixed and floating charge over the company's property, assets and right.

CROSSCO (1427) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 31 -
20
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
52,176
77,682
Other timing differences
(420)
(21,696)
51,756
55,986
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 May 2023
55,986
-
Credit to profit or loss
(4,230)
-
Liability at 30 April 2024
51,756
-
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
95,502
90,483

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

22
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A1 shares of 0.1p each
16,000,000
16,000,000
16,000
16,000
Ordinary A2 shares of 0.01p each
50,000
50,000
5
5
Ordinary B1 shares of 0.4p each
1,200,000
1,200,000
4,800
4,800
Ordinary B2 shares of 0.01p each
2,750,000
2,750,000
275
275
Ordinary B3 shares of 0.01p each
1,000
1,000
-
-
20,001,000
20,001,000
21,080
21,080
CROSSCO (1427) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
22
Share capital
(Continued)
- 32 -

Subject to article 6 of the company's articles of association, holders of the A1 and A2 ordinary shares are entitled to one vote, the B1 holders 4 votes and the B2/B3 holders no votes. Holders of all classes of ordinary shares rank Parri Passu in the entitlement to dividends, except for B3 holders who are not entitled to such payments. None of the shares are redeemable.

 

In the case of winding up, the holders of the shares would firstly be entitled to an amount equal to the nominal value of the shareholding. Any remaining surplus would be divided pro rata as between such holders to their respective holdings of the relevant class as if such shares constituted a single class.

23
Reserves
Profit and loss reserves

Share premium account - this reserve records the amount above the nominal value received for shares sold, less transaction costs.

 

Profit and loss account - this reserve records retained earnings and accumulated losses,

24
Financial commitments, guarantees and contingent liabilities

Guarantees

The bank loans within Crossco (1432) Limited are covered by a cross guarantee including Crossco (1427) Limited. This is secured by a fixed and floating charge over the company's property, assets and rights.

25
Operating lease commitments
Lessee

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

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
146,213
120,210
-
-
Between two and five years
490,529
389,139
-
-
In over five years
440,000
413,333
-
-
1,076,742
922,682
-
-
26
Related party transactions

Amounts paid to NorthEdge Capital LLP in relation to monitoring fees for the financial year were £76,042 (2023: £75,000). This is inclusive of board member remuneration/fees.

27
Controlling party

The controlling party is NorthEdge Capital Fund II, LP.

 

The registered office is: 13th Floor Number One Spinningfields, 1 Hardman Square Spinningfields, Manchester, M3 3EB.

CROSSCO (1427) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 33 -
28
Directors' transactions

Dividends totalling £0 (2023 - £341,021) were paid in the year in respect of shares held by the company's directors.

29
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
1,449,885
1,027,306
Adjustments for:
Taxation charged
1,105,234
589,787
Finance costs
1,463,946
1,479,471
Investment income
-
0
(1,145)
Gain on disposal of tangible fixed assets
(4,372)
(5,479)
Amortisation and impairment of intangible assets
1,830,077
1,862,860
Depreciation and impairment of tangible fixed assets
142,949
173,060
Movements in working capital:
Increase in stocks
(107,717)
(434,155)
Decrease/(increase) in debtors
66,574
(597,786)
(Decrease)/increase in creditors
(164,075)
831,363
Cash generated from operations
5,782,501
4,925,282
30
Analysis of changes in net debt - group
1 May 2023
Cash flows
30 April 2024
£
£
£
Cash at bank and in hand
1,517,928
(520,449)
997,479
Borrowings excluding overdrafts
(17,396,667)
3,920,000
(13,476,667)
(15,878,739)
3,399,551
(12,479,188)
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