|
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 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. |
|
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 there is material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this or 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 strategic report and the directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
● |
the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements. |
|
Extent to which the audit was considered capable of detecting irregularities, including fraud |
The extent to which our procedures are capable of detecting Irregularities, including fraud, is detailed below. |
We identified and assessed the risks of material misstatement of the financial statements, in respect of irregularities whether due to fraud or error, or non compliance with laws and regulations and then designed and performed audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following: |
We obtained an understanding of the legal and regulatory frameworks that are applicable to the Company by discussion and enquiry with the directors and management team and our general knowledge and experience of the debt collection industry. |
We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, employment, and health and safety legislation; |
We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management, reviewing correspondence with relevant regulators |
Audit responses to risks identified |
We assessed the susceptibility of the Company’s financial statements to material misstatement, including how fraud might occur. Audit procedures performed included but were not limited to: |
- |
Discussions with directors and management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; |
- |
Confirming our understanding of controls by performing a walk through test or observation and enquiry; |
- |
Performing analytical procedures to identify any unusual or unexpected relationships; |
- |
Challenging assumptions and judgements made by management in accounting for valuations of investments; |
- |
Identifying and testing journal entries; |
- |
Reviewing unusual or unexpected transactions; and |
- |
Agreeing the financial statement disclosures to underlying supporting documentation. |
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
A further description of our responsibilities is available on the Financial Reporting Council's website at https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. |
Use of our report |
This report is made solely to the 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 auditors' 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. |
|
|
Frances Clapham |
(Senior Statutory Auditor) |
No4 Castle Court 2 |
for and on behalf of |
Castlegate Way |
CK Audit |
Dudley |
Accountants and Statutory Auditors |
West Midlands |
21 August 2024 |
DY1 4RH |
|
Broadriver (Holdings) Ltd |
Statement of Cash Flows |
for the year ended 31 December 2023 |
|
|
|
|
|
|
|
|
Notes |
|
2023 |
|
2022 |
£ |
£ |
Operating activities |
(Loss)/profit for the financial year |
(8,537) |
|
2,767,230 |
|
Adjustments for: |
Income from investments |
- |
|
(2,769,167) |
Interest payable |
4,137 |
|
1,637 |
(Increase)/decrease in debtors |
(2,800) |
|
28,203 |
Increase in creditors |
11,337 |
|
180,570 |
|
|
|
4,137 |
|
208,473 |
|
Dividends received |
- |
|
2,769,167 |
Interest paid |
|
|
(4,137) |
|
(1,637) |
Own shares re-purchased |
Cash generated by operating activities |
- |
|
2,976,003 |
|
|
|
|
|
|
Investing activities |
Payments to acquire investments |
- |
|
(206,836) |
|
Cash used in investing activities |
- |
|
(206,836) |
|
|
|
|
|
|
Financing activities |
Equity dividends paid |
- |
|
(2,769,167) |
Proceeds from the issue of shares |
- |
|
227 |
|
Cash used in financing activities |
- |
|
(2,768,940) |
|
|
|
|
|
|
Net cash generated |
Cash generated by operating activities |
- |
|
2,976,003 |
Cash used in investing activities |
- |
|
(206,836) |
Cash used in financing activities |
- |
|
(2,768,940) |
|
Net cash generated |
- |
|
227 |
|
Cash and cash equivalents at 1 January |
227 |
|
- |
Cash and cash equivalents at 31 December |
227 |
|
227 |
|
|
|
|
|
|
Cash and cash equivalents comprise: |
Cash at bank |
227 |
|
227 |
|
|
|
|
|
|
|
Broadriver (Holdings) Ltd |
Notes to the Accounts |
for the year ended 31 December 2023 |
|
|
|
|
|
|
|
|
|
|
1 |
Summary of significant accounting policies |
|
|
Basis of preparation |
|
The financial statements have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. |
|
|
Investments |
|
Investments in unquoted equity instruments are measured at cost less impairment. |
|
|
Debtors |
|
Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are recognised at transaction price including any transaction costs. |
|
|
Creditors |
|
Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are recognised at transaction price net of any transaction costs. |
|
|
Taxation |
|
A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference. Current and deferred tax assets and liabilities are not discounted. |
|
2 |
Prior year adjustment |
|
|
In 2022 an accounting entry regarding payments for investments was incorrectly shown as an increase in investments when it represented a payment of amounts owing to former shareholders. The amount of £116,400 has been corrected and has no impact on the profit and loss or the net assets at 31 December 2022. |
|
3 |
Average number of employees during the year |
2023 |
|
2022 |
£ |
£ |
|
|
Directors |
3 |
|
3 |
|
|
|
|
|
|
|
|
|
|
4 |
Interest payable |
2023 |
|
2022 |
£ |
£ |
|
|
Other loans |
4,137 |
|
1,637 |
|
|
|
|
|
|
|
|
|
|
5 |
Taxation |
2023 |
|
2022 |
£ |
£ |
|
Analysis of charge in period |
|
|
Tax on profit on ordinary activities |
- |
|
- |
|
|
|
|
|
|
|
|
|
|
|
Factors affecting tax charge for period |
|
The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows: |
|
|
|
|
|
|
|
2023 |
|
2022 |
£ |
£ |
|
(Loss)/profit on ordinary activities before tax |
(8,537) |
|
2,767,230 |
|
|
|
|
|
|
|
|
|
|
Standard rate of corporation tax in the UK |
25% |
|
25% |
|
£ |
£ |
|
Profit on ordinary activities multiplied by the standard rate of corporation tax |
|
(2,134) |
|
691,808 |
|
|
Effects of: |
|
Expenses not deductible for tax purposes and intergroup surrender |
2,134 |
|
(691,808) |
|
|
Current tax charge for period |
- |
|
- |
|
|
|
|
|
|
|
|
|
|
|
Factors that may affect future tax charges |
|
The provision for deferred tax is calculated based on tax rates enacted or substantially enacted at the balance sheet date. The rate of corporation tax at 1 April 2023 is 25%. It is expected that the deferred tax will unwind at the rate of 25%. |
|
|
6 |
Investments |
2023 |
|
2022 |
£ |
£ |
|
|
Shares in subsidiary undertakings |
942,642 |
|
942,642 |
|
|
|
|
|
|
|
|
|
|
Dividends and other distributions from associates included in income |
|
- |
|
2,769,167 |
|
|
|
|
|
|
|
|
|
|
|
The company holds 20% or more of the share capital of the following companies: |
|
Capital and |
Profit (loss) |
|
Company |
Shares held |
reserves |
for the year |
|
|
Class |
% |
£ |
£ |
|
Broadriver Ltd |
Ordinary |
100 |
|
100 |
|
- |
|
Sinclair Taylor Management Services Ltd |
Ordinary |
100 |
|
155,833 |
|
(27,010) |
|
Datatrace Consumer Services (UK) Ltd |
Ordinary |
75 |
|
356,376 |
|
(67,594) |
|
|
Broadriver Ltd holds 100% of the share capital of Controlaccount Ltd |
|
|
7 |
Debtors |
2023 |
|
2022 |
£ |
£ |
|
|
Amounts owed by group undertakings |
|
2,800 |
|
- |
|
|
|
|
|
|
|
|
|
|
8 |
Creditors: amounts falling due within one year |
2023 |
|
2022 |
£ |
£ |
|
|
Amounts owed to group undertakings |
|
353,109 |
|
256,184 |
|
Other creditors |
31,443 |
|
117,031 |
|
|
|
|
|
|
384,552 |
|
373,215 |
|
|
9 |
Share capital |
Nominal |
|
2023 |
|
2023 |
|
2022 |
value |
Number |
£ |
£ |
|
Allotted, called up and fully paid: |
|
Ordinary shares |
£1 each |
|
750 |
|
750 |
|
977 |
|
B Ordinary shares |
£1 each |
|
96 |
|
96 |
|
C Ordinary shares |
£1 each |
|
131 |
|
131 |
|
- |
|
|
|
|
|
|
977 |
|
977 |
|
|
|
|
|
|
|
|
|
|
10 |
Profit and loss account |
2023 |
|
2022 |
£ |
£ |
|
|
At 1 January |
568,677 |
|
570,614 |
|
(Loss)/profit for the financial year |
(8,537) |
|
2,767,230 |
|
Dividends |
- |
|
(2,769,167) |
|
|
At 31 December |
560,140 |
|
568,677 |
|
|
|
|
|
|
|
|
|
|
11 |
Dividends |
2023 |
|
2022 |
£ |
£ |
|
|
Dividends on ordinary shares (note 10) |
- |
|
2,769,167 |
|
|
|
|
|
|
|
|
|
|
|
12 |
Analysis of changes in net debt |
|
|
At 1 January |
Cash flows |
Other non cash changes |
|
At 31 December |
|
|
2023 |
|
|
|
|
|
2023 |
£ |
£ |
£ |
£ |
|
Cash and cash equivalents |
|
Cash |
227 |
|
- |
|
|
|
227 |
|
Borrowings |
|
Debt due within one year |
- |
|
- |
|
|
|
- |
|
Debt due after one year |
- |
|
- |
|
|
|
- |
|
|
- |
|
- |
|
- |
|
- |
|
|
Total |
227 |
|
- |
|
- |
|
227 |
|
|
|
|
|
|
|
|
|
|
13 |
Controlling party |
|
|
The company is a wholly owned subsidiary of Broadriver Eot Ltd a company incorporated in England and Wales. The results are included in the consolidated accounts of Broadriver Eot Ltd and copies of the consolidated accounts can be obtained from the registered office. |
|
14 |
Presentation currency |
|
|
The financial statements are presented in Sterling. |
|
|
15 |
Legal form of entity and country of incorporation |
|
|
Broadriver (Holdings) Ltd is a private company limited by shares and incorporated in England. |
|
|
16 |
Principal place of business |
|
|
The address of the company's principal place of business and registered office is: |
|
|
Compass House Waterside |
|
Hanbury Road |
|
Bromsgrove |
|
Worcestershire |
|
B60 4FD |