Company registration number 05192024 (England and Wales)
CQR SECURITY LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
CQR SECURITY LIMITED
COMPANY INFORMATION
Directors
D Grey MBE
M J Grey
C Rivett
N Berry
P Croker
(Appointed 5 May 2023)
Secretary
V Richardson
Company number
05192024
Registered office
c/o OSL Cutting Technologies Ltd
Burgess Road
Attercliffe
Sheffield
S9 3WD
Auditor
Hart Shaw LLP
Europa Link
Sheffield Business Park
Sheffield
S9 1XU
Business address
125 Pasture Road
Moreton
Wirral
CH46 4TH
CQR SECURITY LIMITED
CONTENTS
Page
Directors' report
1 - 2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Statement of income and retained earnings
7
Balance sheet
8
Notes to the financial statements
9 - 17
CQR SECURITY LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The directors present their annual report and financial statements for the year ended 31 December 2023.
Principal activities
The principal activities of the business are the manufacturing of intrusion detection, access control and fire-retardant cables; and the manufacturing and factoring of magnetic contacts, panic buttons, call points, internal & external sounders, and other related ancillary products.
Our systems and products are designed for the protection of Domestic, Residential and Commercial property. We reach the end through an established network of Security Distributors and OEM partners both in the U.K. and overseas markets.
Fair review of the business
2023 was a significant year of operational change as we undertook the formal merger of Securefast Ltd post-acquisition within our Group. ERP integration of the Securefast business at the midway point of the year, along with relocating a warehouse facility from the Midlands to our Moreton facility, took centre stage as key operational projects. This allowed us to streamline our operations, bringing manufacturing, assembly, and stock all under one roof as we mapped our strategic direction for future growth. The integration of Securefast allowed us to reach a broader market in the UK, increasing revenues, coupled with strong margin expansion. Our extended range of product categories now includes access control, providing a clear platform for future innovation while immediately enhancing our value proposition for new and existing customers. The merger was underpinned with a re-brand initiative to articulate the post-acquisition image of the organisation and our vision for the future.
Notwithstanding the success of several key initiatives throughout 2023, our export market continued to experience a downturn as a result of the ongoing Russia-Ukraine war, but the outlook for 2024 is considerably more optimistic with construction expected to restart in key regions. Supply chain reliability improved significantly, along with freight costs returning to pre-Covid levels, but rising inflation continued to disrupt our domestic and overseas markets, with project business experiencing delays during the course of the year.
Overall turnover increased from £7,843,000 in 2022 to £10,686,000 in 2023 although this is largely the result of the business acquisition of Securefast Ltd into the numbers from July 1st 2023.
Profit before tax was £342,000 compared with £209,000 in 2022 with a further £137,000 of profit recorded in the accounts of Securefast Ltd.
The Company is not dependent upon any single customer or supplier. The Company trades in foreign currencies, primarily the Euro and to a lesser extent the US Dollar. Exposure to currency fluctuation is managed centrally within the group.
The Company is aware of its impact on the environment, and in all its activities considers the environmental impact of its decisions as it seeks to attain its business objectives. To this end accreditation to ISO 14001 was attained in 2023 and confirmed on surveillance in February of this year. Our focus remains on manufacturing efficiencies and growing revenue across our key channels.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
D Grey MBE
M J Grey
C Rivett
G Swift
(Resigned 18 January 2023)
N Berry
P Croker
(Appointed 5 May 2023)
Auditor
The auditor, Hart Shaw LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
CQR SECURITY LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
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 company’s auditor 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 company’s auditor is aware of that information.
Small-sized comanies exepmtion
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
On behalf of the board
M J Grey
Director
25 July 2024
CQR SECURITY LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
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 company and of the profit or loss of the company 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 transactions and disclose with reasonable accuracy at any time the financial position of the 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
CQR SECURITY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF CQR SECURITY LIMITED
- 4 -
Opinion
We have audited the financial statements of CQR Security Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of income and retained earnings, the balance sheet 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:
give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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 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 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.
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:
the information given in the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the directors' report has been prepared in accordance with applicable legal requirements.
CQR SECURITY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF CQR SECURITY LIMITED
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
we have not received all the information and explanations we require for our audit; or
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the directors' report and from the requirement to prepare a strategic report.
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 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 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.
Extent to which the audit was considered capable of detecting irregularities, including fraud and the audit response
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.
At the planning stage we identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience and through discussion with the directors and other management, as required by auditing standards. The potential effect of any laws and regulation on the financial statements can vary considerably. There are laws and regulations that directly affect the financial statements (e.g. the Companies Act) as well as many other operational laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements. Owing to the size, nature and complexity of the organisation and the applicable laws and regulations to which it must adhere, the risk of material misstatement was deemed to be low, therefore the procedures performed by the audit team were limited to:
Communicating identified laws and regulations at planning throughout the audit team to remain alert to any indications of non-compliance throughout the audit.
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as non-compliance with laws and regulations.
Reviewing minutes of meetings of those charged with governance.
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
CQR SECURITY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF CQR SECURITY LIMITED
- 6 -
We have assessed the overall susceptibility of the financial statements to material misstatement due to fraud. Management override is the most likely way in which fraud might present itself and is therefore inherently high risk on any audit. Management override, which may cause there to be a material misstatement within the financial statements, may present itself in a number of ways, for example:
Override of internal controls (e.g. segregation of duties)
Entering into transactions outside the normal course of business, especially with related parties
Fraudulent revenue recognition, including fictitious sales and sales being recorded in the wrong period
Presenting bias in accounting judgements and estimates.
In order to reduce the risk of material misstatement to an acceptable level, numerous audit procedures were performed including:
Enquiries of management as to whether they had any knowledge of any actual or suspected fraud
Review of material journal entries made throughout the year as well as those made to prepare the financial statements
Reviewing the underlying rationale behind transactions in order to assess whether they were outside the normal course of business
Reviewing the minutes of meetings held by management.
Increased substantive testing across all material income streams.
Assessing whether management’s judgements and estimates indicated potential bias.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected material misstatements in the financial statements, even though we have performed our audit in accordance with auditing standards. Furthermore, as with all audits, there is a higher risk of irregularities (especially those relating to fraud) being undetected, as these may involve the override of internal controls, collusion, intentional omissions and misrepresentations etc. We are not responsible for preventing non-compliance or fraud and therefore cannot be expected to detect all instances of such. Our audit was not designed to identify misstatements or other irregularities that would not be considered to be material to the financial statements. 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.
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.
This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.
Adam Shield (Senior Statutory Auditor)
For and on behalf of Hart Shaw LLP
13 August 2024
Chartered Accountants
Statutory Auditor
Europa Link
Sheffield Business Park
Sheffield
S9 1XU
CQR SECURITY LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
Notes
£'000
£'000
Turnover
3
10,686
7,843
Cost of sales
(7,726)
(6,046)
Gross profit
2,960
1,797
Administrative expenses
(2,372)
(1,450)
Management charge income
98
Management charges
(245)
(236)
Operating profit
343
209
Interest payable and similar expenses
(1)
Profit before taxation
342
209
Tax on profit
6
(116)
(13)
Profit for the financial year
226
196
Retained earnings brought forward
2,846
2,650
Dividends
(250)
Retained earnings carried forward
2,822
2,846
The profit and loss account has been prepared on the basis that all operations are continuing operations.
CQR SECURITY LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 8 -
2023
2022
Notes
£'000
£'000
£'000
£'000
Fixed assets
Intangible assets
7
36
Tangible assets
8
789
451
825
451
Current assets
Stocks
9
3,290
2,780
Debtors
10
3,024
1,858
Cash at bank and in hand
322
267
6,636
4,905
Creditors: amounts falling due within one year
11
(4,556)
(2,438)
Net current assets
2,080
2,467
Total assets less current liabilities
2,905
2,918
Creditors: amounts falling due after more than one year
12
(15)
(1)
Provisions for liabilities
(68)
(71)
Net assets
2,822
2,846
Capital and reserves
Called up share capital
14
Profit and loss reserves
2,822
2,846
Total equity
2,822
2,846
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 25 July 2024 and are signed on its behalf by:
M J Grey
Director
Company registration number 05192024 (England and Wales)
CQR SECURITY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
1
Accounting policies
Company information
CQR Security Limited is a private company, limited by shares and incorporated in England and Wales. The registered office is C/O OSL Cutting Technologies Ltd Burgess Road, Attercliffe, Sheffield, South Yorkshire, England, S9 3WD.
The business address is 125 Pasture Road, Moreton, Wirral, CH46 4TH. The company's registration number is 05192024.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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 £'000.
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.
CQR Security Limited is a wholly owned subsidiary of OSL Group Holdings Limited and the results of CQR Security Limited are included in the consolidated financial statements of OSL Group Holdings Limited which are available from Burgess Road, Attercliffe, Sheffield, S9 3WD.
1.2
Business combination/group reorganisation
The group reorganisation has been accounted for using the hybrid accounting method. Therefore assets and liabilities have been transferred at book values and there have been no fair value adjustments nor any goodwill recognised. Merger accounting has not been implemented and therefore comparative amounts have not been restated.
1.3
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.
1.4
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 3 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
CQR SECURITY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 10 -
1.5
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 design
20% straight line
1.6
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
Life of the lease
Plant and machinery
10 - 20% straight line
Fixtures, fittings & equipment
10 - 33% straight line
Assets in the course of construction are not depreciated.
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 credited or charged to profit or loss.
1.7
Impairment of fixed assets
At each reporting period end date, the company 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.
1.8
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. Cost is calculated using the standard cost method.
1.9
Cash at bank and in hand
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.
CQR SECURITY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 11 -
1.10
Financial instruments
The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with 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.
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 company 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.
1.11
Equity instruments
Equity instruments issued by the company 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 company.
1.12
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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
CQR SECURITY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
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.
1.13
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.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
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 leases asset are consumed.
1.16
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.17
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
There are no key judgements or material sources of estimation uncertainty.
3
Turnover and other revenue
CQR SECURITY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Turnover and other revenue
(Continued)
- 13 -
In the year 29% (2022 - 39%) of the company's turnover was to markets outside of the United Kingdom.
4
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£'000
£'000
For audit services
Audit of the financial statements of the company
15
10
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
51
45
6
Taxation
2023
2022
£'000
£'000
Deferred tax
Origination and reversal of timing differences
116
13
7
Intangible fixed assets
Goodwill
Other
Total
£'000
£'000
£'000
Cost
At 1 January 2023
Additions
9
9
Transfers from group company
35
35
At 31 December 2023
35
9
44
Amortisation and impairment
At 1 January 2023
Amortisation charged for the year
7
1
8
At 31 December 2023
7
1
8
Carrying amount
At 31 December 2023
28
8
36
At 31 December 2022
CQR SECURITY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
8
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£'000
£'000
£'000
Cost
At 1 January 2023
96
3,407
3,503
Additions
39
391
430
Transfers from group company
22
22
At 31 December 2023
135
3,820
3,955
Depreciation and impairment
At 1 January 2023
71
2,981
3,052
Depreciation charged in the year
5
109
114
At 31 December 2023
76
3,090
3,166
Carrying amount
At 31 December 2023
59
730
789
At 31 December 2022
25
426
451
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2023
2022
£'000
£'000
Plant and machinery
27
2
27
2
Depreciation charge for the year in respect of leased assets
5
1
Included within plant and machinery is £215,000 (2022 - £nil) of assets under construction. No depreciation is charged on these assets.
9
Stocks
2023
2022
£'000
£'000
Raw materials and consumables
693
1,169
Work in progress
25
4
Finished goods and goods for resale
2,029
1,189
Stock in transit
543
418
3,290
2,780
CQR SECURITY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
10
Debtors
2023
2022
Amounts falling due within one year:
£'000
£'000
Trade debtors
2,773
1,742
Amounts owed by group undertakings
116
6
Prepayments and accrued income
135
110
3,024
1,858
Included in trade debtors is an amount of £2,273,000 (2022 - £1,548,000), which is subject to an invoice discount agreement.
Amounts owed by group undertakings are unsecured, non interest bearing and repayable on demand.
11
Creditors: amounts falling due within one year
2023
2022
£'000
£'000
Bank loans and overdrafts
1,202
988
Obligations under finance leases
7
1
Trade creditors
1,313
1,071
Amounts owed to group undertakings
1,390
27
Taxation and social security
287
128
Other creditors
14
8
Accruals and deferred income
343
215
4,556
2,438
Included in bank loans and overdrafts is £1,202,000 (2022 - £988,000) which has been advanced under invoice discounting and is secured over the debts to which the finance relates.
The obligations under finance leases are secured on the fixed assets to which the finance relates.
Amounts owed to group undertakings are unsecured, non interest bearing and repayable on demand.
12
Creditors: amounts falling due after more than one year
2023
2022
£'000
£'000
Obligations under finance leases
15
1
The obligations under finance leases are secured on the fixed assets to which the finance relates.
CQR SECURITY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
13
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2023
2022
Balances:
£'000
£'000
Accelerated capital allowances
140
71
Tax losses
(72)
-
68
71
2023
Movements in the year:
£'000
Liability at 1 January 2023
71
Charge to profit or loss
116
Other
(119)
Liability at 31 December 2023
68
The deferred tax liability set out above is expected to reverse within 4 years and relates to accelerated capital allowances that are expected to mature within the same period.
Other movements relate to amounts transferred from group company, see note 15.
14
Called up share capital
2023
2022
Allotted, issued and fully paid up
1 Ordinary share of £1
1
1
15
Acquisition of a business/group reorganisation
On 1 July 2023 the company acquired the trade and assets of Securefast Limited a fellow wholly owned group company.
The group reorganisation has been accounted for using the hybrid accounting method. Therefore assets and liabilities have been transferred at book values and there have been no fair value adjustments nor any goodwill recognised. Merger accounting has not been implemented and therefore comparative amounts have not been restated.
CQR SECURITY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
16
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£'000
£'000
Within one year
183
155
Between two and five years
545
542
In over five years
43
728
740
17
Financial commitments, guarantees and contingent liabilities
The company has given an unlimited cross guarantee in favour of Barclays, in respect of bank borrowings of fellow group companies. The outstanding borrowings of these companies at 31 December 2023 were £3,631,000 (2022 - £5,695,000).
18
Capital commitments
Amounts contracted for but not provided in the financial statements:
2023
2022
£'000
£'000
Acquisition of tangible fixed assets
263
478
A group wide asset finance facility is in place to assist with the purchase of the above.
19
Related party transactions
The company has taken advantage of the exemptions allowed by FRS 102 section 33.1A and has not disclosed transactions with fellow group companies. The company's accounts are consolidated into the accounts of the parent company as a wholly owned subsidiary.
20
Parent company
The immediate and ultimate parent company is OSL Group Holdings Limited, a company registered in England & Wales, who prepare group consolidated accounts. Their registered office is Burgess Road, Attercliffe, Sheffield, S9 3WD.
The ultimate controlling party is D Grey MBE who owns a majority shareholding in OSL Group Holdings Limited.
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