REGISTERED NUMBER: 12871951 (England and Wales) |
Group Strategic Report, Report of the Director and |
Consolidated Financial Statements for the Year Ended 30 November 2023 |
for |
S.A.R. Corporate Limited |
REGISTERED NUMBER: 12871951 (England and Wales) |
Group Strategic Report, Report of the Director and |
Consolidated Financial Statements for the Year Ended 30 November 2023 |
for |
S.A.R. Corporate Limited |
S.A.R. Corporate Limited (Registered number: 12871951) |
Contents of the Consolidated Financial Statements |
for the Year Ended 30 November 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Director | 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 |
S.A.R. Corporate Limited |
Company Information |
for the Year Ended 30 November 2023 |
DIRECTOR: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
and Statutory Auditors |
Abacus House |
Pennine Business Park |
Longbow Close |
Huddersfield |
West Yorkshire |
HD2 1GQ |
S.A.R. Corporate Limited (Registered number: 12871951) |
Group Strategic Report |
for the Year Ended 30 November 2023 |
The director presents his strategic report for the year ended 30 November 2023. |
During 2023, turnover reduced by 33.2% from £43.1 million to £28.8 million following the previous years' decrease of 19.6%. The reduction in turnover led to an decrease in gross profit of 19.9% to 17.8% which resulted in a net loss margin of 3.59% with a loss of £1.03 million from £6.58 million profit from last year.. |
The director is aware of the results for the year, but feels that the business is still well placed to deal with future challenges that may arise in the future. |
The management accounts for the subsequent period showed that the company is trading at high levels of profitability. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The management of the business and the nature of the group's strategy are subject to a number of risks, of which the director sets out the principal risks below. |
Precious metal prices |
The sales price of precious metals is market led. This factor reduces the company's control over the level of income which it will receive for the sale of its products which contain precious metals. To help reduce this risk of fluctuations the company is selective over the products which it purchases for resale, so that it holds premium stock, which in turn should hold a higher value, should the market price begin to deteriorate. |
Foreign currency fluctuation |
Foreign currency fluctuations are governed by the global economy. They present risk to the company because it operates worldwide and trades in sterling, euros and US dollars. In order to reduce the level of risk associated with foreign currency fluctuations, the company observes exchange rates and transfers money from one currency to another at the point the rates of exchange are more favourable. |
ON BEHALF OF THE BOARD: |
S.A.R. Corporate Limited (Registered number: 12871951) |
Report of the Director |
for the Year Ended 30 November 2023 |
The director presents his report with the financial statements of the company and the group for the year ended 30 November 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of the collection of non-hazardous waste. |
DIVIDENDS |
No dividends will be distributed for the year ended 30 November 2023. |
DIRECTOR |
DISCLOSURE IN THE STRATEGIC REPORT |
The director's review of the business and their consideration of the risks and uncertainties surrounding the business maybe found in the Strategic Report. |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations. |
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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 director is 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 he 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, S P Crowther & Co Limited Chartered Accountants, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
S.A.R. Corporate Limited |
Opinion |
We have audited the financial statements of S.A.R. Corporate Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 November 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 the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 30 November 2023 and of the group's loss 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 opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report. |
Other information |
The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, 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. |
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 Director 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 Director have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
S.A.R. Corporate Limited |
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 Director. |
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 director's remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of director |
As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is 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 director determines 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 director is 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 director either intends to liquidate the group or the parent company or to cease operations, or has 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: |
Using our general commercial and sector experience and through discussions with the directors we identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements as well as those arising from management's own assessment of the risks that irregularities may occur either as a result of fraud or error. |
We examined the company's regulatory and legal correspondence and discussed with the directors any known or suspected instances of fraud or non-compliance with laws and regulations. |
We communicated identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. |
In addressing the risk of management override of controls, we tested the appropriateness of journal entries. We also challenged assumptions and judgements made by management in their significant accounting estimates and judgements. |
There are inherent limitations in the audit procedures described above and the further removed we are from the non-compliance with laws and regulations in respect of events and transactions reflected in the financial statements, the less likely we would become aware of identifying issues. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one from error, as fraud may involve the deliberate concealment, for example, through forgery or intentional misrepresentation, or through 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. |
Report of the Independent Auditors to the Members of |
S.A.R. Corporate Limited |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
and Statutory Auditors |
Abacus House |
Pennine Business Park |
Longbow Close |
Huddersfield |
West Yorkshire |
HD2 1GQ |
S.A.R. Corporate Limited (Registered number: 12871951) |
Consolidated Income Statement |
for the Year Ended 30 November 2023 |
30.11.23 | 30.11.22 |
Notes | £ | £ | £ | £ |
TURNOVER | 28,796,938 | 43,075,616 |
Cost of sales | 23,682,043 | 34,489,770 |
GROSS PROFIT | 5,114,895 | 8,585,846 |
Distribution costs | 1,974,918 | 1,829,719 |
Administrative expenses | 4,424,539 | 1,589,401 |
6,399,457 | 3,419,120 |
(1,284,562 | ) | 5,166,726 |
Other operating income | 16,104 | 1,355,585 |
OPERATING (LOSS)/PROFIT | 5 | (1,268,458 | ) | 6,522,311 |
Interest receivable and similar income | 234,654 | 63,830 |
(1,033,804 | ) | 6,586,141 |
Gain/loss on revaluation of investments | - | 1,092 |
(1,033,804 | ) | 6,587,233 |
Interest payable and similar expenses | 8 | 47 | 2,970 |
(LOSS)/PROFIT BEFORE TAXATION | (1,033,851 | ) | 6,584,263 |
Tax on (loss)/profit | 9 | (212,849 | ) | 1,170,661 |
(LOSS)/PROFIT FOR THE FINANCIAL YEAR |
( |
) |
(Loss)/profit attributable to: |
Owners of the parent | (821,002 | ) | 5,413,602 |
S.A.R. Corporate Limited (Registered number: 12871951) |
Consolidated Other Comprehensive Income |
for the Year Ended 30 November 2023 |
30.11.23 | 30.11.22 |
Notes | £ | £ |
(LOSS)/PROFIT FOR THE YEAR | (821,002 | ) | 5,413,602 |
OTHER COMPREHENSIVE INCOME |
Property revaluation |
Interest from group undertakings | 17,864 | 18,660 |
Income tax relating to other comprehensive income |
- |
- |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
17,864 |
18,660 |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
(803,138 |
) |
5,432,262 |
Total comprehensive income attributable to: |
Owners of the parent | (803,138 | ) | 5,432,262 |
S.A.R. Corporate Limited (Registered number: 12871951) |
Consolidated Balance Sheet |
30 November 2023 |
30.11.23 | 30.11.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 | 36,757 | 33,245 |
Tangible assets | 12 | 670,137 | 587,415 |
Investments | 13 | 123,613 | 119,752 |
Investment property | 14 | 773,000 | 773,000 |
1,603,507 | 1,513,412 |
CURRENT ASSETS |
Stocks | 15 | 1,795,364 | 1,758,470 |
Debtors | 16 | 10,918,973 | 8,176,473 |
Cash at bank and in hand | 8,373,190 | 11,627,147 |
21,087,527 | 21,562,090 |
CREDITORS |
Amounts falling due within one year | 17 | 2,422,561 | 1,913,023 |
NET CURRENT ASSETS | 18,664,966 | 19,649,067 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
20,268,473 |
21,162,479 |
PROVISIONS FOR LIABILITIES | 19 | 64,411 | 155,279 |
NET ASSETS | 20,204,062 | 21,007,200 |
CAPITAL AND RESERVES |
Called up share capital | 20 | 17 | 17 |
Capital redemption reserve | 21 | 83 | 83 |
Other reserves | 21 | 12,613 | 12,613 |
Retained earnings | 21 | 20,191,349 | 20,994,487 |
SHAREHOLDERS' FUNDS | 20,204,062 | 21,007,200 |
The financial statements were approved by the director and authorised for issue on 28 August 2024 and were signed by: |
Mr J Valentinas - Director |
S.A.R. Corporate Limited (Registered number: 12871951) |
Company Balance Sheet |
30 November 2023 |
30.11.23 | 30.11.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 |
Tangible assets | 12 |
Investments | 13 |
Investment property | 14 |
CURRENT ASSETS |
Debtors | 16 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 17 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 19 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Other reserves |
Retained earnings |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 62,660 | 5,437,428 |
The financial statements were approved by the director and authorised for issue on |
S.A.R. Corporate Limited (Registered number: 12871951) |
Consolidated Statement of Changes in Equity |
for the Year Ended 30 November 2023 |
Called up | Capital |
share | Retained | redemption | Other | Total |
capital | earnings | reserve | reserves | equity |
£ | £ | £ | £ | £ |
Balance at 1 December 2021 | 17 | 15,562,621 | 83 | 12,217 | 15,574,938 |
Changes in equity |
Total comprehensive income | - | 5,431,866 | - | 396 | 5,432,262 |
Balance at 30 November 2022 | 17 | 20,994,487 | 83 | 12,613 | 21,007,200 |
Changes in equity |
Total comprehensive income | - | (803,138 | ) | - | - | (803,138 | ) |
Balance at 30 November 2023 | 17 | 20,191,349 | 83 | 12,613 | 20,204,062 |
S.A.R. Corporate Limited (Registered number: 12871951) |
Company Statement of Changes in Equity |
for the Year Ended 30 November 2023 |
Called up |
share | Retained | Other | Total |
capital | earnings | reserves | equity |
£ | £ | £ | £ |
Balance at 1 December 2021 |
Changes in equity |
Total comprehensive income | - |
Balance at 30 November 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 30 November 2023 |
S.A.R. Corporate Limited (Registered number: 12871951) |
Consolidated Cash Flow Statement |
for the Year Ended 30 November 2023 |
30.11.23 | 30.11.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | (1,872,438 | ) | 4,771,720 |
Interest paid | (47 | ) | (2,970 | ) |
Tax paid | (507,236 | ) | (914,386 | ) |
Net cash from operating activities | (2,379,721 | ) | 3,854,364 |
Cash flows from investing activities |
Purchase of intangible fixed assets | (16,560 | ) | (33,245 | ) |
Purchase of tangible fixed assets | (324,066 | ) | (406,815 | ) |
Purchase of fixed asset investments | (131,570 | ) | (3,222 | ) |
Sale of tangible fixed assets | 22,500 | 33,166 |
Sale of fixed asset investments | 131,570 | 150,771 |
Interest received | 234,654 | 63,830 |
Loans with related undertakings | (69,393 | ) | (17,695 | ) |
Net cash from investing activities | (152,865 | ) | (213,210 | ) |
Cash flows from financing activities |
Loan to associate | (721,371 | ) | (843,839 | ) |
Net cash from financing activities | (721,371 | ) | (843,839 | ) |
(Decrease)/increase in cash and cash equivalents | (3,253,957 | ) | 2,797,315 |
Cash and cash equivalents at beginning of year |
2 |
11,627,147 |
8,829,832 |
Cash and cash equivalents at end of year | 2 | 8,373,190 | 11,627,147 |
S.A.R. Corporate Limited (Registered number: 12871951) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 30 November 2023 |
1. | RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
30.11.23 | 30.11.22 |
£ | £ |
(Loss)/profit before taxation | (1,033,851 | ) | 6,584,263 |
Depreciation charges | 218,165 | 132,055 |
Loss/(profit) on disposal of fixed assets | 13,729 | (19,427 | ) |
Loss/(gain) on revaluation of fixed assets | 1,211 | (1,092 | ) |
Finance costs | 47 | 2,970 |
Finance income | (234,654 | ) | (63,830 | ) |
(1,035,353 | ) | 6,634,939 |
Increase in stocks | (36,894 | ) | (129,468 | ) |
Increase in trade and other debtors | (1,758,946 | ) | (1,742,895 | ) |
Increase in trade and other creditors | 958,755 | 9,144 |
Cash generated from operations | (1,872,438 | ) | 4,771,720 |
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 30 November 2023 |
30.11.23 | 1.12.22 |
£ | £ |
Cash and cash equivalents | 8,373,190 | 11,627,147 |
Year ended 30 November 2022 |
30.11.22 | 1.12.21 |
£ | £ |
Cash and cash equivalents | 11,627,147 | 8,829,832 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.12.22 | Cash flow | At 30.11.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 11,627,147 | (3,253,957 | ) | 8,373,190 |
11,627,147 | (3,253,957 | ) | 8,373,190 |
Total | 11,627,147 | (3,253,957 | ) | 8,373,190 |
S.A.R. Corporate Limited (Registered number: 12871951) |
Notes to the Consolidated Financial Statements |
for the Year Ended 30 November 2023 |
1. | STATUTORY INFORMATION |
S.A.R. Corporate Limited is a |
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, modified to include investment properties and certain financial instruments at fair value. |
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 £. |
Critical accounting judgements and key sources of estimation uncertainty |
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases it judgements, estimates and assumptions on historical experience and on various other factors, including expectations of future events, management believes this to be reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal the related actual results. The following judgments have the most significant effect on the amounts recognised in the financial statements: |
Investments |
On a periodic basis of every three years the company director obtains a professional valuation of the investment properties and any adjustment to the fair value are reflected in the Income Statement. In the intervening years, assessment of fair value is made through observation of similar properties marketed in the local area. |
Estimation of useful lives of assets |
The company determines the estimated useful lives and related depreciation charges for its property, plant and equipment. The useful lives could change significantly as a result of technical innovations or some other event. The depreciation charge will increase where the useful lives are less than previously estimated. Technically obsolete or non-strategic assets that have been abandoned or sold will be written off or impaired. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
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. |
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. |
S.A.R. Corporate Limited (Registered number: 12871951) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2023 |
2. | ACCOUNTING POLICIES - continued |
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. |
At each reporting date the company assess whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount. |
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: |
Freehold land and property | - In accordance with the property |
Plant and machinery | - 20% on cost |
Fixtures and fittings | - 20% on cost |
Motor vehicles | - 25% on cost |
Computer equipment | - 33% on cost |
No depreciation charge is provided in respect of freehold land, however, the depreciation charge for freehold property is assessed on an annual basis after taking into consideration the condition and value of the property. Subject to this assessment, depreciation is accounted for where deemed necessary. |
Investment property |
Investment property is recognised at fair value at the year end date. Any aggregate surplus or deficit arising from changes in fair value is recognised in the profit and loss account. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Cost is derived from the purchase price of materials. |
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. |
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 future receipts discounted at a market rate of interest. Financial assets classified as receivable in 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. |
S.A.R. Corporate Limited (Registered number: 12871951) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2023 |
2. | ACCOUNTING POLICIES - continued |
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 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. |
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. |
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. |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
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 |
30.11.23 | 30.11.22 |
£ | £ |
Wages and salaries | 1,815,868 | 1,683,256 |
Social security costs | 179,671 | 173,936 |
Other pension costs | 34,001 | 32,595 |
2,029,540 | 1,889,787 |
S.A.R. Corporate Limited (Registered number: 12871951) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2023 |
3. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
30.11.23 | 30.11.22 |
Production and maintenance | 37 | 32 |
Health and safety | 3 | 3 |
Administration | 20 | 19 |
4. | DIRECTORS' EMOLUMENTS |
30.11.23 | 30.11.22 |
£ | £ |
Director's remuneration | 48,000 | 56,000 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 1 | 1 |
5. | OPERATING (LOSS)/PROFIT |
The operating loss (2022 - operating profit) is stated after charging/(crediting): |
30.11.23 | 30.11.22 |
£ | £ |
Depreciation - owned assets | 205,115 | 132,056 |
Loss/(profit) on disposal of fixed assets | 13,729 | (19,427 | ) |
Computer software amortisation | 13,048 | - |
Foreign exchange differences | 367,507 | - |
Currency fluctuations | - | (1,305,716 | ) |
6. | AUDITORS' REMUNERATION |
30.11.23 | 30.11.22 |
£ | £ |
Fees payable to the company's auditors for the audit of the company's financial statements |
12,558 |
11,670 |
7. | EXCEPTIONAL ITEMS |
30.11.23 | 30.11.22 |
£ | £ |
Exceptional items | (570,583 | ) | - |
This year the exceptional item relates to the write off of a connected company loan in which the director owns 100% of the shares. |
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
30.11.23 | 30.11.22 |
£ | £ |
Bank interest | 47 | 2,970 |
S.A.R. Corporate Limited (Registered number: 12871951) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2023 |
9. | TAXATION |
Analysis of the tax (credit)/charge |
The tax (credit)/charge on the loss for the year was as follows: |
30.11.23 | 30.11.22 |
£ | £ |
Current tax: |
UK corporation tax | - | 1,079,498 |
P/y tax adjustment | (121,981 | ) | - |
Total current tax | (121,981 | ) | 1,079,498 |
Deferred tax | (90,868 | ) | 91,163 |
Tax on (loss)/profit | (212,849 | ) | 1,170,661 |
UK corporation tax was charged at 19 %) in 2022. |
Reconciliation of total tax (credit)/charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
30.11.23 | 30.11.22 |
£ | £ |
(Loss)/profit before tax | (1,033,851 | ) | 6,584,263 |
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of 19 % (2022 - 19 %) |
(196,432 |
) |
1,251,010 |
Effects of: |
Expenses not deductible for tax purposes | 304,754 | 3,532 |
Income not taxable for tax purposes | (533 | ) | (9,276 | ) |
Capital allowances in excess of depreciation | - | (53,364 | ) |
Depreciation in excess of capital allowances | 8,309 | - |
Enhanced R&D | (166,750 | ) | (98,787 | ) |
Deferred tax charge/(credit) | (90,868 | ) | 91,163 |
Supertax deduction | (23,546 | ) | (11,703 | ) |
Impairment in investment now realised | - | (1,914 | ) |
Adjustment to prior year tax | (121,981 | ) | - |
Losses carried forward | 74,198 | - |
Total tax (credit)/charge | (212,849 | ) | 1,170,661 |
Tax effects relating to effects of other comprehensive income |
30.11.23 |
Gross | Tax | Net |
£ | £ | £ |
Property revaluation |
Interest from group undertakings | 17,864 | - | 17,864 |
17,864 | - | 17,864 |
S.A.R. Corporate Limited (Registered number: 12871951) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2023 |
9. | TAXATION - continued |
30.11.22 |
Gross | Tax | Net |
£ | £ | £ |
Property revaluation |
Interest from group undertakings | 18,660 | - | 18,660 |
18,660 | - | 18,660 |
Factors affecting future tax charge |
Based on current capital investment plans, the company expects to continue to be able to claim capital allowances in excess of depreciation in future years. |
10. | 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. |
11. | INTANGIBLE FIXED ASSETS |
Group |
Computer |
software |
£ |
COST |
At 1 December 2022 | 33,245 |
Additions | 16,560 |
At 30 November 2023 | 49,805 |
AMORTISATION |
Amortisation for year | 13,048 |
At 30 November 2023 | 13,048 |
NET BOOK VALUE |
At 30 November 2023 | 36,757 |
At 30 November 2022 | 33,245 |
S.A.R. Corporate Limited (Registered number: 12871951) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2023 |
12. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Plant and | and | Motor | Computer |
machinery | fittings | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 December 2022 | 739,333 | 53,270 | 317,173 | 4,250 | 1,114,026 |
Additions | 115,118 | - | 206,982 | 1,966 | 324,066 |
Disposals | - | - | (111,633 | ) | - | (111,633 | ) |
At 30 November 2023 | 854,451 | 53,270 | 412,522 | 6,216 | 1,326,459 |
DEPRECIATION |
At 1 December 2022 | 365,017 | 35,013 | 122,331 | 4,250 | 526,611 |
Charge for year | 113,148 | 9,159 | 82,405 | 403 | 205,115 |
Eliminated on disposal | - | - | (75,404 | ) | - | (75,404 | ) |
At 30 November 2023 | 478,165 | 44,172 | 129,332 | 4,653 | 656,322 |
NET BOOK VALUE |
At 30 November 2023 | 376,286 | 9,098 | 283,190 | 1,563 | 670,137 |
At 30 November 2022 | 374,316 | 18,257 | 194,842 | - | 587,415 |
Company |
Plant and |
machinery |
£ |
COST |
At 1 December 2022 |
and 30 November 2023 |
DEPRECIATION |
At 1 December 2022 |
Charge for year |
At 30 November 2023 |
NET BOOK VALUE |
At 30 November 2023 |
At 30 November 2022 |
13. | FIXED ASSET INVESTMENTS |
Group | Company |
30.11.23 | 30.11.22 | 30.11.23 | 30.11.22 |
£ | £ | £ | £ |
Loans to group undertakings | 87,871 | 83,882 |
Other investments not loans | 35,742 | 35,870 |
123,613 | 119,752 |
S.A.R. Corporate Limited (Registered number: 12871951) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2023 |
13. | FIXED ASSET INVESTMENTS - continued |
Additional information is as follows: |
Group |
Unlisted |
investments |
£ |
COST |
At 1 December 2022 | 35,870 |
Exchange differences | (128 | ) |
At 30 November 2023 | 35,742 |
NET BOOK VALUE |
At 30 November 2023 | 35,742 |
At 30 November 2022 | 35,870 |
Investments (neither listed nor unlisted) were as follows: |
30.11.23 | 30.11.22 |
£ | £ |
Cost/valuation | - | 131,570 |
Disposals | - | (131,570 | ) |
- | - |
Company |
Unlisted |
investments |
£ |
COST |
At 1 December 2022 |
and 30 November 2023 |
NET BOOK VALUE |
At 30 November 2023 |
At 30 November 2022 |
S.A.R. Corporate Limited (Registered number: 12871951) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2023 |
13. | FIXED ASSET INVESTMENTS - continued |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiary |
UAB Serius |
Registered office: Siauliai, Rudes g. 27A, Lithuania |
Nature of business: Property Investment |
% |
Class of shares: | holding |
Ordinary | 55.00 |
31.12.23 | 31.12.22 |
£ | £ |
Aggregate capital and reserves | (171,022 | ) | (146,045 | ) |
Loss for the year | (23,926 | ) | (61,738 | ) |
The group has taken advantage of CA2006 405(2) whereby a subsidiary undertaking may be excluded from consolidation if its inclusion is not material for the purpose of giving a true and fair view. |
It is considered that the results of UAB Serius are not material and have therefore not been consolidated into the financial statements of S.A.R. Corporate Limited during the year ended 30 November 2023. |
Group |
Loans to |
group |
undertakings |
£ |
At 1 December 2022 | 83,882 |
New in year | 3,989 |
At 30 November 2023 | 87,871 |
14. | INVESTMENT PROPERTY |
Group |
Total |
£ |
FAIR VALUE |
At 1 December 2022 |
and 30 November 2023 | 773,000 |
NET BOOK VALUE |
At 30 November 2023 | 773,000 |
At 30 November 2022 | 773,000 |
S.A.R. Corporate Limited (Registered number: 12871951) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2023 |
14. | INVESTMENT PROPERTY - continued |
Company |
Total |
£ |
FAIR VALUE |
At 1 December 2022 |
and 30 November 2023 |
NET BOOK VALUE |
At 30 November 2023 |
At 30 November 2022 |
The director has assessed the fair value of residential property included within investment property. The valuation has been made on an open market basis by reference to similar properties. The fair value of commercial property included within investment property has been arrived at based on a valuation carried out on 8 December 2020 by PPH Commercial Chartered Surveyors, who are not connected to the company. The valuation has been made on an open market basis by reference to market evidence of transaction prices for similar properties. The original cost of all properties was £759,528. The directors are satisfied with the valuation of investment properties. |
15. | STOCKS |
Group |
30.11.23 | 30.11.22 |
£ | £ |
Stocks | 1,795,364 | 1,758,470 |
16. | DEBTORS |
Group | Company |
30.11.23 | 30.11.22 | 30.11.23 | 30.11.22 |
£ | £ | £ | £ |
Amounts falling due within one year: |
Trade debtors | 1,243,076 | 1,035,136 |
Amounts owed by group undertakings | - | - |
Amounts owed by associates | 1,928,442 | 1,194,281 |
Other debtors | 6,297,406 | 3,544,714 |
Tax | 180,000 | - |
VAT | 141,103 | 1,329,084 |
Deferred tax asset | - | - | 86,135 | - |
Prepayments | 346,856 | 760,026 |
10,136,883 | 7,863,241 |
Amounts falling due after more than one | year: |
Amounts owed by group undertakings | 339,147 | 269,754 |
Other debtors | 442,943 | 43,478 |
782,090 | 313,232 |
Aggregate amounts | 10,918,973 | 8,176,473 |
S.A.R. Corporate Limited (Registered number: 12871951) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2023 |
17. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
30.11.23 | 30.11.22 | 30.11.23 | 30.11.22 |
£ | £ | £ | £ |
Trade creditors | 677,405 | 465,424 |
Tax | - | 449,217 |
Social security and other tax | - | 43,729 |
Other creditors | 1,013,018 | 493,300 |
Accrued expenses | 732,138 | 461,353 |
2,422,561 | 1,913,023 |
18. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Non-cancellable |
operating leases |
30.11.23 | 30.11.22 |
£ | £ |
Within one year | 13,176 | 13,176 |
Between one and five years | 40,132 | 50,163 |
In more than five years | - | 603 |
53,308 | 63,942 |
19. | PROVISIONS FOR LIABILITIES |
Group | Company |
30.11.23 | 30.11.22 | 30.11.23 | 30.11.22 |
£ | £ | £ | £ |
Deferred tax | 64,411 | 155,279 | - | 18,893 |
Group |
Deferred tax |
£ |
Balance at 1 December 2022 | 155,279 |
Provided during year | (90,868 | ) |
Balance at 30 November 2023 | 64,411 |
Company |
Deferred tax |
£ |
Balance at 1 December 2022 |
Provided during year | ( |
) |
Balance at 30 November 2023 | ( |
) |
S.A.R. Corporate Limited (Registered number: 12871951) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2023 |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 30.11.23 | 30.11.22 |
value: | £ | £ |
Ordinary | £1 | 17 | 17 |
21. | RESERVES |
Group |
Capital |
Retained | redemption | Other |
earnings | reserve | reserves | Totals |
£ | £ | £ | £ |
At 1 December 2022 | 20,994,487 | 83 | 12,613 | 21,007,183 |
Deficit for the year | (821,002 | ) | (821,002 | ) |
Group undertakings interest | 47,052 | - | - | 47,052 |
Discounted loan interest to equity | (29,188 | ) | - | - | (29,188 | ) |
At 30 November 2023 | 20,191,349 | 83 | 12,613 | 20,204,045 |
Company |
Retained | Other |
earnings | reserves | Totals |
£ | £ | £ |
At 1 December 2022 | 12,423,935 |
Profit for the year |
Group undertakings interest | 24,577 | - | 24,577 |
Discounted loan interest to equity | (29,188 | ) | - | (29,188 | ) |
At 30 November 2023 | 12,481,984 |
22. | PENSION COMMITMENTS |
The group operates a defined contribution pension scheme. The assets of the pension scheme are held separately from those of the group, in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £32,748 (2022: £32,748) during the year. The contributions accrued at the year end amounted to £7,325 (2022: £6,539). |
23. | CONTINGENT LIABILITIES |
Post balance sheet date the company received a notice relating to the right to deduct input tax. The notice relates to a period pre and post balance sheet date, but it is possible that the company will have to pay HMRC a VAT liability of approximately £1.3m in relation to pre balance sheet items. The company is challenging the claim, looking to complete this before the calendar year of 2024 and not pay anything in relation to this. |
S.A.R. Corporate Limited (Registered number: 12871951) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2023 |
24. | RELATED PARTY DISCLOSURES |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
UAB Serius |
A company in which 55% of the share capital is owned by S.A.R. Metals Limited. |
At the balance sheet date the group was owed £877,741 (2022: £894,470) by UAB Serius. |
Midvaris Limited |
A company in which Mr Justas Valentinas is the sole director and shareholder. |
At the balance sheet date the group was owed £1,388,703 (2022: £569,595) by Midvaris Limited. |
S.A.R Group Management Limited |
A company in which 59% of the share capital is owned by Suru International DMCC. |
At the balance sheet date the company was owed £1,145 (2022: £nil) by S.A.R Group Management Limited. |
25. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is Mr S Kavleiskij. |