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REGISTERED NUMBER: 03161559 (England and Wales)







GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

FOR

CROSS HOLDINGS LIMITED

CROSS HOLDINGS LIMITED (REGISTERED NUMBER: 03161559)

CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023










Page

Company Information 1

Group Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 4

Consolidated Income Statement 7

Consolidated Other Comprehensive Income 8

Consolidated Balance Sheet 9

Company Balance Sheet 10

Consolidated Statement of Changes in Equity 11

Company Statement of Changes in Equity 12

Consolidated Cash Flow Statement 13

Notes to the Consolidated Cash Flow Statement 14

Notes to the Consolidated Financial Statements 15


CROSS HOLDINGS LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023







DIRECTORS: D W Shadbolt
M D Scudamore





SECRETARY: D W Shadbolt





REGISTERED OFFICE: Shady Lane
Great Barr
Birmingham
B44 9EU





REGISTERED NUMBER: 03161559 (England and Wales)





INDEPENDENT AUDITORS: Prime
Chartered Accountants
Statutory Auditor
161 Newhall Street
Birmingham
B3 1SW

CROSS HOLDINGS LIMITED (REGISTERED NUMBER: 03161559)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023


The directors present their strategic report of the company and the group for the year ended 31 December 2023.

REVIEW OF BUSINESS
Cross Holdings Limited is a dormant holding company which owns 100% of T.D. Cross Limited, the trading company within the group.

The group trading as Cross & Morse is a leading manufacturer and distributor of mechanical power transmission products. The group has been well established in the UK for over 100 years, operating from its factory in Birmingham. It also sells worldwide to over 70 countries.

2023 was a very challenging year for industry in the UK and the world beyond. Turnover has been affected accordingly, falling from £5.4m in 2022 to £5.2m. Inflationary pressures continued to increase material, labour and overhead input costs. In particular there was a significant increase in energy costs in the final quarter of 2023. In a competitive marketplace we have been unable to pass on these increases to customers. As a result, net profit before tax fell from £621k in 2022 to £292k in 2023.

The Balance Sheet however remains strong with total assets now in excess of £6m. The group continued to generate cash, now just under £1.4m. This together with the group's wide customer and extensive industry base will allow the group to weather any further economic challenges.

PRINCIPAL RISKS AND UNCERTAINTIES
The substantial increase in energy costs (270%) will have a significant impact on our costs in the first three quarters of 2024. Thereafter we should see reductions with the expectation that they will eventually fall to more like pre pandemic levels. Increased shipping costs continue to impact margins, arising from both the disruption in the Middle East and arising from Brexit. Selling into the EU continues to be a challenge with customers having to incur customs charges. The group is looking to other geographical areas to offset this.

Whilst there has been some relief with lower steel prices, increase in the above costs and higher labour rates will continue to squeeze margins in a market where customers are now looking for more competitive pricing.

DEVELOPMENT AND PERFORMANCE
The group spent £375k on capital expenditure, principally on additional CNC turning capacity. The continuing investment in apprenticeships assists in the retention of skills, crucial in a competitive jobs market.

KEY PERFORMANCE INDICATORS
In conjunction with its ISO accreditation the group monitors a number of KPIs.

The financial KPI is value added per £1 of payroll cost. A target of 1.80 was set for 2023, 1.63 was achieved, arising from lower sales and higher labour costs. Other KPIs comprise performance to promise to customers, level of works order rejects and on time works orders. All of these for 2023 were within target.

ON BEHALF OF THE BOARD:





D W Shadbolt - Director


13 August 2024

CROSS HOLDINGS LIMITED (REGISTERED NUMBER: 03161559)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023


The directors present their report with the financial statements of the company for the year ended
31 December 2023.

DIVIDENDS
No dividends will be distributed for the year ended 31 December 2023 (2022; £Nil).

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

D W Shadbolt
M D Scudamore

DIRECTORS' RESPONSIBILITIES STATEMENT
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

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

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

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

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

AUDITORS
The auditors, Prime, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





D W Shadbolt - Director


13 August 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
CROSS HOLDINGS LIMITED


Qualified Opinion
We have audited the financial statements of Cross Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion, except for the possible effects on the corresponding figures of the matter described in the
basis for qualified opinion section of our report, the financial statements:
- give a true and fair view of the state of the company's affairs as at 31 December 2023 and of the company's profit for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
and
- have been prepared in accordance with the requirements of the Companies Act 2006

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

We were not appointed as auditor for the group until after 31 December 2022 and thus did not carry out any checks of physical stocks at the end of that year. We were unable to confirm the stock quantities held at 31 December 2022 using other audit procedures, the value of which is included in the Balance Sheet at £1,461,890.

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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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

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

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
CROSS HOLDINGS LIMITED


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

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

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

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

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

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

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the industry sector;
- 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 and data protection, anti-bribery, employment, environmental and health and safety legislation;
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence;

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
CROSS HOLDINGS LIMITED


We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:
- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries to identify unusual transactions;
- assessed whether judgements and assumptions made in determining accounting estimates were indicative of potential bias; and
- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
- agreeing financial statement disclosures to underlying supporting documentation;
- enquiring of management as to actual and potential litigation and claims; and
- reviewing correspondence with HMRC and other relevant parties.

There are inherent limitations in our audit procedures described above. 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 for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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




Morgan Davies FCA (Senior Statutory Auditor)
for and on behalf of Prime
Chartered Accountants
Statutory Auditor
161 Newhall Street
Birmingham
B3 1SW

16 August 2024

CROSS HOLDINGS LIMITED (REGISTERED NUMBER: 03161559)

CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £    £    £   

TURNOVER 5,243,132 5,437,695

Cost of sales 1,827,704 1,863,642
GROSS PROFIT 3,415,428 3,574,053

Distribution costs 2,185,014 2,159,729
Administrative expenses 953,981 792,370
3,138,995 2,952,099
OPERATING PROFIT 4 276,433 621,954

Interest receivable and similar income 16,043 -
PROFIT BEFORE TAXATION 292,476 621,954

Tax on profit 5 69,880 110,987
PROFIT FOR THE FINANCIAL YEAR 222,596 510,967
Profit attributable to:
Owners of the parent 222,596 510,967

CROSS HOLDINGS LIMITED (REGISTERED NUMBER: 03161559)

CONSOLIDATED OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £   

PROFIT FOR THE YEAR 222,596 510,967


OTHER COMPREHENSIVE INCOME
Revaluation surplus - 600,000
Income tax relating to other
comprehensive income

-

(150,000

)
OTHER COMPREHENSIVE INCOME
FOR THE YEAR, NET OF INCOME TAX

-

450,000
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

222,596

960,967

Total comprehensive income attributable to:
Owners of the parent 222,596 960,967

CROSS HOLDINGS LIMITED (REGISTERED NUMBER: 03161559)

CONSOLIDATED BALANCE SHEET
31 DECEMBER 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 7 - -
Tangible assets 8 2,339,132 2,104,532
Investments 9 - -
2,339,132 2,104,532

CURRENT ASSETS
Stocks 10 1,332,319 1,461,890
Debtors 11 1,015,008 1,080,123
Cash at bank and in hand 1,379,946 1,285,571
3,727,273 3,827,584
CREDITORS
Amounts falling due within one year 12 709,706 747,665
NET CURRENT ASSETS 3,017,567 3,079,919
TOTAL ASSETS LESS CURRENT
LIABILITIES

5,356,699

5,184,451

PROVISIONS FOR LIABILITIES 13 477,665 417,013
NET ASSETS 4,879,034 4,767,438

CAPITAL AND RESERVES
Called up share capital 14 1,132,749 1,243,749
Share premium 15 79,507 79,507
Revaluation reserve 15 400,132 400,132
Capital redemption reserve 15 145,250 145,250
Retained earnings 15 3,121,396 2,898,800
SHAREHOLDERS' FUNDS 4,879,034 4,767,438

The financial statements were approved by the Board of Directors and authorised for issue on 13 August 2024 and were signed on its behalf by:





D W Shadbolt - Director


CROSS HOLDINGS LIMITED (REGISTERED NUMBER: 03161559)

COMPANY BALANCE SHEET
31 DECEMBER 2023

2023 2022
Notes £    £   
FIXED ASSETS
Intangible assets 7 - -
Tangible assets 8 - -
Investments 9 3,000,000 3,000,000
3,000,000 3,000,000
TOTAL ASSETS LESS CURRENT
LIABILITIES

3,000,000

3,000,000

CAPITAL AND RESERVES
Called up share capital 14 1,132,749 1,243,749
Share premium 79,507 79,507
Capital redemption reserve 145,250 145,250
Retained earnings 1,642,494 1,531,494
SHAREHOLDERS' FUNDS 3,000,000 3,000,000

Company's profit for the financial year 111,000 141,000

The 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 13 August 2024 and were signed on its behalf by:





D W Shadbolt - Director


CROSS HOLDINGS LIMITED (REGISTERED NUMBER: 03161559)

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023

Called up
share Retained Share
capital earnings premium
£    £    £   
Balance at 1 January 2022 1,384,749 2,387,833 79,507

Changes in equity
Reduction in share capital (141,000 ) - -
Total comprehensive income - 510,967 -
Balance at 31 December 2022 1,243,749 2,898,800 79,507

Changes in equity
Reduction in share capital (111,000 ) - -
Total comprehensive income - 222,596 -
Balance at 31 December 2023 1,132,749 3,121,396 79,507
Capital
Revaluation redemption Total
reserve reserve equity
£    £    £   
Balance at 1 January 2022 (49,868 ) 145,250 3,947,471

Changes in equity
Reduction in share capital - - (141,000 )
Total comprehensive income 450,000 - 960,967
Balance at 31 December 2022 400,132 145,250 4,767,438

Changes in equity
Reduction in share capital - - (111,000 )
Total comprehensive income - - 222,596
Balance at 31 December 2023 400,132 145,250 4,879,034

CROSS HOLDINGS LIMITED (REGISTERED NUMBER: 03161559)

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023

Called up Capital
share Retained Share redemption Total
capital earnings premium reserve equity
£    £    £    £    £   
Balance at 1 January 2022 1,384,749 1,390,494 79,507 145,250 3,000,000

Changes in equity
Reduction in share capital (141,000 ) - - - (141,000 )
Total comprehensive income - 141,000 - - 141,000
Balance at 31 December 2022 1,243,749 1,531,494 79,507 145,250 3,000,000

Changes in equity
Reduction in share capital (111,000 ) - - - (111,000 )
Total comprehensive income - 111,000 - - 111,000
Balance at 31 December 2023 1,132,749 1,642,494 79,507 145,250 3,000,000

CROSS HOLDINGS LIMITED (REGISTERED NUMBER: 03161559)

CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 695,460 368,966
Tax paid (132,449 ) (142,674 )
Net cash from operating activities 563,011 226,292

Cash flows from investing activities
Purchase of tangible fixed assets (375,929 ) (38,899 )
Sale of tangible fixed assets 2,250 1,000
Interest received 16,043 -
Net cash from investing activities (357,636 ) (37,899 )

Cash flows from financing activities
Reduction in share capital (111,000 ) (141,000 )
Net cash from financing activities (111,000 ) (141,000 )

Increase in cash and cash equivalents 94,375 47,393
Cash and cash equivalents at
beginning of year

2

1,285,571

1,238,178

Cash and cash equivalents at end of
year

2

1,379,946

1,285,571

CROSS HOLDINGS LIMITED (REGISTERED NUMBER: 03161559)

NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023


1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
2023 2022
£    £   
Profit before taxation 292,476 621,954
Depreciation charges 138,131 132,885
Loss/(profit) on disposal of fixed assets 948 (1,000 )
Finance income (16,043 ) -
415,512 753,839
Decrease/(increase) in stocks 129,571 (436,375 )
Decrease/(increase) in trade and other debtors 65,115 (24,210 )
Increase in trade and other creditors 85,262 75,712
Cash generated from operations 695,460 368,966

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2023
31.12.23 1.1.23
£    £   
Cash and cash equivalents 1,379,946 1,285,571
Year ended 31 December 2022
31.12.22 1.1.22
£    £   
Cash and cash equivalents 1,285,571 1,238,178


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.23 Cash flow At 31.12.23
£    £    £   
Net cash
Cash at bank and in hand 1,285,571 94,375 1,379,946
1,285,571 94,375 1,379,946
Total 1,285,571 94,375 1,379,946

CROSS HOLDINGS LIMITED (REGISTERED NUMBER: 03161559)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023


1. STATUTORY INFORMATION

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

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


2. ACCOUNTING POLICIES

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

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

Goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 1996, is being amortised evenly over its estimated useful life of ten years.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Plant and machinery - 10% on cost
Fixtures and fittings - 20% on cost
Motor vehicles - 25% on reducing balance

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

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

Current or deferred taxation assets and liabilities are not discounted.

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


CROSS HOLDINGS LIMITED (REGISTERED NUMBER: 03161559)

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


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

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

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

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

3. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 2,124,951 2,098,278
Other pension costs 60,063 61,451
2,185,014 2,159,729

The average number of employees during the year was as follows:
2023 2022

Production staff 41 39
Sales & distribution staff 14 14
Administrative staff and management 7 8
62 61

2023 2022
£    £   
Directors' remuneration 205,419 221,543
Directors' pension contributions to money purchase schemes 18,240 17,811

Information regarding the highest paid director is as follows:
2023 2022
£    £   
Emoluments etc 103,606 111,420
Pension contributions to money purchase schemes 9,434 9,005

CROSS HOLDINGS LIMITED (REGISTERED NUMBER: 03161559)

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


4. OPERATING PROFIT

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

2023 2022
£    £   
Depreciation - owned assets 138,131 132,885
Loss/(profit) on disposal of fixed assets 948 (1,000 )
Auditors' remuneration 17,824 6,649

5. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 9,228 132,449

Deferred tax 60,652 (21,462 )
Tax on profit 69,880 110,987

Tax effects relating to effects of other comprehensive income

There were no tax effects for the year ended 31 December 2023.

2022
Gross Tax Net
£    £    £   
Revaluation surplus 600,000 (150,000 ) 450,000

6. INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.


CROSS HOLDINGS LIMITED (REGISTERED NUMBER: 03161559)

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


7. INTANGIBLE FIXED ASSETS

Group
Goodwill
£   
COST
At 1 January 2023
and 31 December 2023 2,615,704
AMORTISATION
At 1 January 2023
and 31 December 2023 2,615,704
NET BOOK VALUE
At 31 December 2023 -
At 31 December 2022 -

8. TANGIBLE FIXED ASSETS

Group
Fixtures
Freehold Plant and and Motor
property machinery fittings vehicles Totals
£    £    £    £    £   
COST
At 1 January 2023 1,500,000 3,246,828 497,778 48,781 5,293,387
Additions - 364,251 11,678 - 375,929
Disposals - (122,071 ) - - (122,071 )
At 31 December 2023 1,500,000 3,489,008 509,456 48,781 5,547,245
DEPRECIATION
At 1 January 2023 - 2,687,655 475,622 25,578 3,188,855
Charge for year - 121,166 11,164 5,801 138,131
Eliminated on disposal - (118,873 ) - - (118,873 )
At 31 December 2023 - 2,689,948 486,786 31,379 3,208,113
NET BOOK VALUE
At 31 December 2023 1,500,000 799,060 22,670 17,402 2,339,132
At 31 December 2022 1,500,000 559,173 22,156 23,203 2,104,532

CROSS HOLDINGS LIMITED (REGISTERED NUMBER: 03161559)

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


9. FIXED ASSET INVESTMENTS

Company
Shares in
group
undertakings
£   
COST
At 1 January 2023
and 31 December 2023 3,000,000
NET BOOK VALUE
At 31 December 2023 3,000,000
At 31 December 2022 3,000,000


10. STOCKS

Group
2023 2022
£    £   
Stocks 1,332,319 1,461,890

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group
2023 2022
£    £   
Trade debtors 1,000,044 1,006,062
Called up share capital not paid 200 200
Prepayments 14,764 73,861
1,015,008 1,080,123

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group
2023 2022
£    £   
Trade creditors 427,149 334,882
Amounts owed to group undertakings 200 200
Tax 9,228 132,449
Social security and other taxes 49,819 50,503
VAT 135,695 106,462
Accrued expenses 87,615 123,169
709,706 747,665

CROSS HOLDINGS LIMITED (REGISTERED NUMBER: 03161559)

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


13. PROVISIONS FOR LIABILITIES

Group
2023 2022
£    £   
Deferred tax 477,665 417,013

Group
Deferred
tax
£   
Balance at 1 January 2023 417,013
Provided during year 60,652
Balance at 31 December 2023 477,665

14. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
384,749 Ordinary £1 384,749 384,749
1,120,000 B shares £1 748,000 859,000
1,132,749 1,243,749

During the year the company undertook a capital reduction whereby 111,000 B shares of £1 each were bought back at par.

15. RESERVES

Group
Capital
Retained Share Revaluation redemption
earnings premium reserve reserve Totals
£    £    £    £    £   

At 1 January 2023 2,898,800 79,507 400,132 145,250 3,523,689
Profit for the year 222,596 222,596
At 31 December 2023 3,121,396 79,507 400,132 145,250 3,746,285