Quattro Group Limited
Annual Report and Financial Statements
For the period ended 26 November 2023
Company Registration No. 08586229 (England and Wales)
Quattro Group Limited
Company Information
Directors
J Murphy
A Richardson
Company number
08586229
Registered office
Greenway Court
Canning Road
Stratford
London
E15 3ND
Auditor
Moore Kingston Smith LLP
The Shipping Building
The Old Vinyl Factory
Blyth Road
Hayes
London
UB3 1HA
Quattro Group Limited
Contents
Page
Strategic report
1 - 3
Directors' report
4 - 5
Directors' responsibilities statement
6
Independent auditor's report
7 - 11
Group profit and loss account
12
Group statement of comprehensive income
13
Group balance sheet
14
Company balance sheet
15
Group statement of changes in equity
16
Company statement of changes in equity
17
Group statement of cash flows
18
Notes to the financial statements
19 - 38
Quattro Group Limited
Strategic Report
For the period ended 26 November 2023
Page 1
The directors present the strategic report for the period ended 26 November 2023.
Fair review of the business
The group's turnover for the year was £67,140,783 representing an increase of 11.55% on the previous year.
On 30 September 2023, the group's tangible assets, except improvements to property and fixtures and fittings, were formally valued by SIA Group at a fair value of £50,071,337, representing an increase of £12,167,233 compared to book value at the time.
The majority shareholder remains the group's managing director J Murphy who leads a management team responsible for the day to day running of the business.
The Group’s turnover increased year on year and operating margins also increased over the prior year. The management of the Group continue to place emphasis on cost management and efficiency to mitigate cost pressures to the extent possible. The directors believe that Group performance will be maintained in the coming financial year.
Key performance indicators
The directors use a number of measures to monitor and target the performance of the group. They regard the following as the key financial indicators of performance:
- Gross profit margin - measuring the profits generated by the group's operations after direct costs.
- Operating profit margin - measuring the profit generated by the group's operations after expenses.
- Return on capital employed - measuring the return on capital employed based on current market value.
Below is a summary of the KPI's:
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Return on capital employed | | | |
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Quattro Group Limited
Strategic Report (Continued)
For the period ended 26 November 2023
Page 2
Financial instruments
Treasury operations and financial instruments
Treasury activities take place under procedures and policies monitored by the directors. These policies are designed to minimise the financial risks faced by the group which primarily arise from interest rate, credit and liquidity risks. It is not the policy of the group to enter into speculative transactions.
The group uses financial instruments which include loans and other items arising from its operations such as trade debtors and trade creditors. The main purpose of these financial instruments is to finance the working capital required for the group's operations. The directors review and agree policies for managing financial risks which arise from the existence of financial instruments. These policies and risks remain unchanged from previous periods.
Liquidity risk
The group seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably.
Short term flexibility is achieved by maintaining appropriate bank facilities.
Interest rate risk
The group finances its operations through a mixture of retained profits and bank revolving facilities. The group's exposure to interest rate fluctuations on its borrowings is managed by actively looking to reduce its working capital requirement and by ensuring the best possible terms with the group's bankers.
Credit risk
The group's principal financial assets are trade debtors.
In order to manage credit risk, credit limits are reviewed by the directors on a regular basis in conjunction with collection history.
Future developments
We foresee the group consolidating its current market position. It is anticipated that sales volumes may increase in the coming year, while margins are expected to be maintained. Costs will continue to be controlled so that the group's financial position can be further strengthened. The group will continue to reinvest in its plant and machinery assets which it utilises to provide infrastructure services, with a particular interest in the rail sector. Investments comprises acquisitions of new and replacement assets together with a program of rolling maintenance and mid-life refurbishment of its existing fleet.
Section 172 (1) Statement
The Group (of which the Company is a member) has worked for more than 30 years to build a responsible and sustainable business. The Directors believe that all decisions are made for the long term interests of the Group and its key stakeholders.
The Group has always sought to make a positive contribution to the communities in which it operates, and the Directors continue to pursue this policy. As an entrepreneurial business, founded in 1989 by the current majority shareholder, the Group has always taken a long term view to support its people, its communities and its various business interests and relationships.
The Group’s success depends on the commitment of its employees and its ability to attract and retain them as well as develop their skills. The labour market is facing tumultuous change which is highlighted by the search for scarce skills and by changes in the aspirations of new generations. Retention and employment of new talent is an area of long-term vigilance to ensure sustainability of the business and ensure the transmission of knowledge within the organisation.
Quattro Group Limited
Strategic Report (Continued)
For the period ended 26 November 2023
Page 3
To mitigate risk in this area, the Group has incorporated a skills development division to facilitate dynamic career management, promote safe working practices and encourage internal mobility. This has also raised management awareness at work programs.
Maintaining enduring relationships with customers has been a key component of client retention, which the Group does not take for granted. The Group prides itself in being a premier infrastructure services provider, taking the time and effort to understand its customers' requirements and providing a world class service to support them. Being in touch with modern working practices and the ever changing regulations & laws within which its clients operate is at the forefront of the added value Quattro provides.
The Board is aware of the importance of maintaining a strong relationship with its suppliers and the supply chain, which it manages diligently. Our procurement strategy seeks to segment our supply chain by levels of criticality so that procurement activities can be focused on delivering best practice supply chain outcomes, representing value for money, including innovation and an emphasis on sustainability and health & safety. Through the delivery of effective procurement there is also a commitment to creating enduring partnerships with our suppliers.
The Directors are grateful for the ongoing support of its lender and clearing bank provider. Maintaining a clear dialogue and a policy of continuous reporting has provided for a healthy relationship over several years. The Directors value this support and are fully engaged in communications and dialogue with relationship managers and credit committees.
J Murphy
Director
24 May 2024
Quattro Group Limited
Directors' Report
For the period ended 26 November 2023
Page 4
The directors present their annual report and financial statements for the period ended 26 November 2023.
The company has an accounting reference date of 30 November. The financial statements are prepared to the nearest Sunday of the accounting reference date which is 26 November 2023 for a 52 week period. The previous financial statements were prepared for a 52 week period to 27 November 2022.
Principal activities
The principal activity of the company in the period under review was that of a holding company. The principal activities of its wholly owned subsidiary undertakings in the period under review were; (i) hiring road sweepers, earth moving, excavators and general construction equipment, (ii) railway infrastructure maintenance and (iii) providing specialist and comprehensive training to the rail industry.
Results and dividends
The results for the period are set out on page 12.
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the period and up to the date of signature of the financial statements were as follows:
J Murphy
A Richardson
Disabled persons
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
Employee involvement
The group's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.
There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.
Auditor
The auditor, Moore Kingston Smith LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Energy and carbon report
As the group has consumed more than 40,000 kWh of energy in this reporting period, it does not qualify as a low energy user, and has therefore reported on emissions below. The report includes the emissions of Quattro Plant Limited and A.B. 2000 Limited, as they are the only entities within the group that have consumed more than 40,000 kWh of energy during the period.
Quattro Group Limited
Directors' Report (Continued)
For the period ended 26 November 2023
Page 5
2023
2022
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
65.07
11.88
- Fuel consumed for owned transport
12,321.02
10,494.00
12,386.09
10,505.88
Scope 2 - indirect emissions
- Electricity purchased
405.45
334.07
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the group
-
-
Total gross emissions
12,791.54
10,839.95
Intensity ratio
Tonnes CO2e per employee
35.14
26.97
Quantification and reporting methodology
The group has followed the 2019 HM Government Environmental Reporting Guidelines. The group has also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting
Intensity measurement
The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per employee, the recommended ratio for the sector.
Measures taken to improve energy efficiency
We have increased video conferencing technology for meetings, to reduce the need for travel between sites.
Strategic report
The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments and financial risk management.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.
On behalf of the board
J Murphy
Director
24 May 2024
Quattro Group Limited
Directors' Responsibilities Statement
For the period ended 26 November 2023
Page 6
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Quattro Group Limited
Independent Auditor's Report
To the Members of Quattro Group Limited
Page 7
Opinion
We have audited the financial statements of Quattro Group Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 26 November 2023 which comprise the Group Profit And Loss Account, the Group Statement of Comprehensive Income, the Group Balance Sheet, the Company Balance Sheet, the Group Statement of Changes in Equity, the Company Statement of Changes in Equity, the Group Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the group's and the parent company's affairs as at 26 November 2023 and of the group's loss for the period then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the 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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Quattro Group Limited
Independent Auditor's Report (Continued)
To the Members of Quattro Group Limited
Page 8
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 period 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.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
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, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the group's and 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 parent company or to cease operations, or have no realistic alternative but to do so.
Quattro Group Limited
Independent Auditor's Report (Continued)
To the Members of Quattro Group Limited
Page 9
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group's or the parent company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group or the parent company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Quattro Group Limited
Independent Auditor's Report (Continued)
To the Members of Quattro Group Limited
Page 10
Explanation as to what extent the audit was considered capable of detecting irregularities, including
fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities,
including fraud is detailed below.
The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.
Our approach was as follows:
We obtained an understanding of the legal and regulatory requirements applicable to the company and considered that the most significant are the Companies Act 2006, UK financial reporting standards as issued by the Financial Reporting Council, and UK taxation legislation.
We obtained an understanding of how the company complies with these requirements by discussions with management and those charged with governance.
We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.
We inquired of management and those charged with governance as to any known instances of noncompliance or suspected non-compliance with laws and regulations.
Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
Quattro Group Limited
Independent Auditor's Report (Continued)
To the Members of Quattro Group Limited
Page 11
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 for no purpose other than to draw to the attention of the company’s members those matters we are required to include in an auditor's report addressed to them. To the fullest extent permitted by law, we do not accept or assume responsibility to any party 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.
Karen Wardell
Senior Statutory Auditor
for and on behalf of Moore Kingston Smith LLP
24 May 2024
Chartered Accountants
Statutory Auditor
The Shipping Building
The Old Vinyl Factory
Blyth Road
Hayes
London
UB3 1HA
Quattro Group Limited
Group Profit and Loss Account
For the period ended 26 November 2023
Page 12
Period
Period
ended
ended
26 November
27 November
2023
2022
Notes
£
£
Turnover
3
67,140,783
60,188,268
Cost of sales
(42,437,908)
(40,480,934)
Gross profit
24,702,875
19,707,334
Administrative expenses
(21,950,429)
(23,103,378)
Other operating income
21,653
37,607
Operating profit/(loss)
5
2,774,099
(3,358,437)
Interest receivable and similar income
8
3,269
31,948
Interest payable and similar expenses
9
(2,917,976)
(1,850,227)
Loss before taxation
(140,608)
(5,176,716)
Tax on loss
10
(264,690)
1,838,485
Loss for the financial period
(405,298)
(3,338,231)
The loss for the financial period is all attributable to the owners of the parent company.
The profit and loss account has been prepared on the basis that all operations are continuing operations.
Quattro Group Limited
Group Statement of Comprehensive Income
For the period ended 26 November 2023
Page 13
Period
Period
ended
ended
26 November
27 November
2023
2022
£
£
Loss for the period
(405,298)
(3,338,231)
Other comprehensive income
-
-
Total comprehensive income for the period
(405,298)
(3,338,231)
Total comprehensive income for the period is all attributable to the owners of the parent company.
Quattro Group Limited
Consolidated Balance Sheet
As at 26 November 2023
26 November 2023
Page 14
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
11
436,400
529,776
Other intangible assets
11
(4,813)
(276,185)
Total intangible assets
431,587
253,591
Tangible assets
12
39,889,239
47,774,708
40,320,826
48,028,299
Current assets
Stocks
16
126,236
146,523
Debtors
17
19,169,574
14,887,724
Cash at bank and in hand
2,010,041
1,126,139
21,305,851
16,160,386
Creditors: amounts falling due within one year
19
(7,248,220)
(7,026,409)
Net current assets
14,057,631
9,133,977
Total assets less current liabilities
54,378,457
57,162,276
Creditors: amounts falling due after more than one year
20
(37,095,421)
(39,506,379)
Provisions for liabilities
22
(6,655,100)
(6,622,663)
10,627,936
11,033,234
Capital and reserves
Called up share capital
24
863
863
Share premium account
432,506
432,506
Profit and loss reserves
10,194,567
10,599,865
Shareholders' funds
10,627,936
11,033,234
The financial statements were approved by the board of directors and authorised for issue on 24 May 2024 and are signed on its behalf by:
24 May 2024
J Murphy
Director
Quattro Group Limited
Company Balance Sheet
As at 26 November 2023
26 November 2023
Page 15
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
11
2
2
Investments
13
914,174
16,276,121
914,176
16,276,123
Current assets
Debtors
17
1,885
1,885
Creditors: amounts falling due within one year
19
(12,158,803)
(12,158,803)
Net current liabilities
(12,156,918)
(12,156,918)
Total assets less current liabilities
(11,242,742)
4,119,205
Capital and reserves
Called up share capital
24
863
863
Share premium account
432,506
432,506
Profit and loss reserves
(11,676,111)
3,685,836
Total equity
(11,242,742)
4,119,205
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £15,361,947 (2022 - £nil).
The financial statements were approved by the board of directors and authorised for issue on 24 May 2024 and are signed on its behalf by:
24 May 2024
J Murphy
Director
Company Registration No. 08586229
Quattro Group Limited
Group Statement of Changes in Equity
For the period ended 26 November 2023
Page 16
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 28 November 2021
863
432,506
13,938,096
14,371,465
Period ended 27 November 2022:
Loss and total comprehensive income for the period
-
-
(3,338,231)
(3,338,231)
Balance at 27 November 2022
863
432,506
10,599,865
11,033,234
Period ended 26 November 2023:
Loss and total comprehensive income for the period
-
-
(405,298)
(405,298)
Balance at 26 November 2023
863
432,506
10,194,567
10,627,936
Quattro Group Limited
Company Statement of Changes in Equity
For the period ended 26 November 2023
Page 17
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 28 November 2021
863
432,506
3,685,836
4,119,205
Period ended 27 November 2022:
Profit and total comprehensive income for the period
-
-
-
Balance at 27 November 2022
863
432,506
3,685,836
4,119,205
Period ended 26 November 2023:
Loss and total comprehensive income for the period
-
-
(15,361,947)
(15,361,947)
Balance at 26 November 2023
863
432,506
(11,676,111)
(11,242,742)
Quattro Group Limited
Group Statement of Cash Flows
For the period ended 26 November 2023
Page 18
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
5,579,835
7,055,724
Interest paid
(2,917,976)
(1,850,227)
Income taxes refunded
221,992
106,473
Net cash inflow from operating activities
2,883,851
5,311,970
Investing activities
Purchase of tangible fixed assets
(5,616,036)
(8,343,539)
Proceeds from disposal of tangible fixed assets
6,023,776
1,978,998
Interest received
3,269
31,948
Net cash generated from/(used in) investing activities
411,009
(6,332,593)
Financing activities
Repayment of bank loans
(2,410,958)
997,608
Net cash (used in)/generated from financing activities
(2,410,958)
997,608
Net increase/(decrease) in cash and cash equivalents
883,902
(23,015)
Cash and cash equivalents at beginning of period
1,126,139
1,149,154
Cash and cash equivalents at end of period
2,010,041
1,126,139
Quattro Group Limited
Notes to the Financial Statements
For the period ended 26 November 2023
Page 19
1
Accounting policies
Company information
Quattro Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Greenway Court, Canning Road, Stratford, London, E15 3ND.
The group consists of Quattro Group Limited and all of its subsidiaries.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest pound.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Basis of consolidation
The consolidated financial statements incorporate those of Quattro Group Limited and all of its subsidiaries (i.e. entities that the Group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes. All financial statements are made up to 26 November 2023.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation.
Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the Group.
The cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill.
The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date.
Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date.
1.3
Going concern
The group meets its funding requirements through a group wide Asset Based Finance Facility, which provides sufficient headroom for the company’s forecast operations for the foreseeable future. The group has considered the impact of current economic conditions, and the impact it has had on profitability for the year. The group has continued to trade profitably since the year-end. The directors have produced forecasts and as a result, they have a reasonable expectation that the group has adequate resources to continue in operational existence for at least 12 months from the date of approval of the financial statements. Therefore, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Quattro Group Limited
Notes to the Financial Statements (Continued)
For the period ended 26 November 2023
1
Accounting policies
(Continued)
Page 20
1.4
Turnover
Turnover represents hire charges excluding VAT. Turnover is recognised when the services are provided to the customer and provision is made for any accrued income arising on hires made not invoiced.
1.5
Intangible fixed assets - goodwill
Acquired goodwill is written off in equal annual installments over its estimated useful economic life. Negative goodwill is allocated to non current assets and is written back in the period in which the asset values are recovered either through depreciation or sale.
1.6
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Improvements to property
10% straight line and straight line over lease term
Civil plant and machinery
2-50% reducing balance or straight line
Fixtures, fittings & equipment
20% reducing balance and 15-25% on straight line basis
Rail plant and machinery
10% straight line
Motor vehicles
25% reducing balance
Road sweeper machines
Straight line over 7 years
Historic airplane
No Depreciation
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
The airplane is not depreciated as the directors believe that the asset has an enduring residual value.
1.7
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
Quattro Group Limited
Notes to the Financial Statements (Continued)
For the period ended 26 November 2023
1
Accounting policies
(Continued)
Page 21
1.8
Impairment of fixed assets
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
1.9
Stocks
Stock is stated at cost which comprises the cost of bringing fuel to its present location and condition.
1.10
Cash at bank and in hand
Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.11
Financial instruments
The group has only basic financial instruments measured at amortised cost, with no instruments classified as other or measured at fair value.
1.12
Equity instruments
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
1.13
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Quattro Group Limited
Notes to the Financial Statements (Continued)
For the period ended 26 November 2023
1
Accounting policies
(Continued)
Page 22
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.14
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.15
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.16
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
Amounts due from lessees under finance leases are recognised as receivables at the amount of the group's net investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the group’s net investment outstanding in respect of leases.
1.17
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
1.18
Related party disclosures
Quattro Group Limited has taken advantage of the exemption within FRS102 not to disclose transactions with other members of the group.
Quattro Group Limited
Notes to the Financial Statements (Continued)
For the period ended 26 November 2023
Page 23
2
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Fixed assets depreciation
The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 13 for the carrying amount of the tangible fixed assets and note 1.6 for the useful economic lives for each class of asset.
Negative goodwill amortisation
Negative goodwill arose on the acquisition of the Quattro group in 2013. The fair value of the consideration paid in connection with this acquisition was less than the fair value of the separately identifiable assets acquired. The assets acquired were uplifted to the open market values at acquisition, which were derived from an independent valuation. This uplift in asset values resulted in negative goodwill arising on consolidation and the above goodwill is being amortised over the life of the assets acquired. The negative goodwill is being amortised over the useful life of the assets originally acquired.
Quattro Group Limited
Notes to the Financial Statements (Continued)
For the period ended 26 November 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
Page 24
Deferred tax assets
Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and level of future taxable profits together with future tax planning strategies. See note 23 for the carrying amount and further details.
3
Turnover and other revenue
An analysis of the group's turnover is as follows:
2023
2022
£
£
Turnover analysed by class of business
Hire charges
66,964,656
60,056,234
Training income
176,127
132,034
67,140,783
60,188,268
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
67,140,783
60,186,056
Other
-
2,212
67,140,783
60,188,268
2023
2022
£
£
Other revenue
Interest income
3,269
31,948
Grants received
21,653
37,607
4
Auditors' remuneration
2023
2022
Fees payable to the company's auditor and its associates:
£
£
Audit of the financial statements of the group and company
118,800
108,000
For other services
Services relating to tax compliance services
13,200
12,000
All other non-audit services
13,200
12,000
26,400
24,000
Quattro Group Limited
Notes to the Financial Statements (Continued)
For the period ended 26 November 2023
Page 25
5
Operating profit/(loss)
2023
2022
£
£
Operating profit/(loss) for the period is stated after charging/(crediting):
Exchange losses
12,829
7,107
Depreciation of owned tangible fixed assets
8,525,789
9,000,044
Profit on disposal of tangible fixed assets
(1,047,993)
(185,767)
Amortisation of intangible assets
(177,996)
(506,179)
Cost of stocks recognised as an expense
5,279,653
5,189,145
Operating lease charges
- Plant and machinery
5,486,119
5,042,596
- Property rentals
1,470,866
1,429,411
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the period was:
Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Administration
90
92
-
-
Operations
274
310
-
-
Total
364
402
Their aggregate remuneration comprised:
Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
20,440,189
20,323,722
Social security costs
1,986,359
2,134,070
-
-
Pension costs
337,081
381,261
22,763,629
22,839,053
Quattro Group Limited
Notes to the Financial Statements (Continued)
For the period ended 26 November 2023
Page 26
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
457,891
458,437
Company pension contributions to defined contribution schemes
1,321
1,321
459,212
459,758
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
353,891
354,437
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2022: 1)
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest income
3,269
31,948
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
2,917,976
1,770,637
Other finance costs:
Other interest
-
79,590
Total finance costs
2,917,976
1,850,227
10
Taxation
2023
2022
£
£
Current tax
Adjustments in respect of prior periods
(11,078)
Quattro Group Limited
Notes to the Financial Statements (Continued)
For the period ended 26 November 2023
10
Taxation
2023
2022
£
£
(Continued)
Page 27
Deferred tax
Origination and reversal of timing differences
264,690
(1,827,407)
Total tax charge/(credit)
264,690
(1,838,485)
The actual charge/(credit) for the period can be reconciled to the expected credit for the period based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Loss before taxation
(140,608)
(5,176,716)
Expected tax credit based on the standard rate of corporation tax in the UK of 22.96% (2022: 19.00%)
(32,284)
(983,576)
Tax effect of expenses that are not deductible in determining taxable profit
56,740
61,201
Adjustments in respect of prior years
(11,078)
Amortisation on assets not qualifying for tax allowances
(42,016)
(97,124)
Other permanent differences
1,267
342
Capital allowances in excess of depreciation
(19,623)
(478,778)
Effect of fair value adjustments on consolidation
10,541
34,494
Remeasurement of deferred tax for changes in tax rates
229,701
(417,568)
Trade losses for the year
53,602
Other movements
60,364
-
Taxation charge/(credit)
264,690
(1,838,485)
Quattro Group Limited
Notes to the Financial Statements (Continued)
For the period ended 26 November 2023
Page 28
11
Intangible fixed assets
Group
Goodwill
Negative goodwill
Total
£
£
£
Cost
At 28 November 2022 and 26 November 2023
979,045
(7,064,379)
(6,085,334)
Amortisation and impairment
At 28 November 2022
449,269
(6,788,194)
(6,338,925)
Amortisation charged for the period
93,376
(271,372)
(177,996)
At 26 November 2023
542,645
(7,059,566)
(6,516,921)
Carrying amount
At 26 November 2023
436,400
(4,813)
431,587
At 27 November 2022
529,776
(276,185)
253,591
Company
Goodwill
£
Cost
At 28 November 2022 and 26 November 2023
2
Amortisation and impairment
At 28 November 2022 and 26 November 2023
Carrying amount
At 26 November 2023
2
At 27 November 2022
2
Quattro Group Limited
Notes to the Financial Statements (Continued)
For the period ended 26 November 2023
Page 29
12
Tangible fixed assets
Group
Improvements to property
Civil plant and machinery
Fixtures, fittings & equipment
Rail plant and machinery
Motor vehicles
Road sweeper machines
Historic airplane
Total
£
£
£
£
£
£
£
£
Cost
At 28 November 2022
532,074
36,381,268
270,318
64,402,725
2,120,749
5,028,224
513,146
109,248,504
Additions
616,919
4,336,794
132,735
524,848
4,740
5,616,036
Disposals
(11,511,536)
(3,112,684)
(97,411)
(445,031)
(15,166,662)
Exchange adjustments
47
47
At 26 November 2023
532,074
25,486,698
270,318
65,626,835
2,156,073
5,108,041
517,886
99,697,925
Depreciation and impairment
At 28 November 2022
165,363
14,277,093
232,091
41,968,670
1,342,027
3,488,552
61,473,796
Depreciation charged in the period
65,545
3,065,541
5,234
4,601,749
180,324
607,396
8,525,789
Eliminated in respect of disposals
(6,911,620)
(2,789,734)
(68,385)
(421,142)
(10,190,881)
Exchange adjustments
(18)
(18)
At 26 November 2023
230,908
10,430,996
237,325
43,780,685
1,453,966
3,674,806
59,808,686
Carrying amount
At 26 November 2023
301,166
15,055,702
32,993
21,846,150
702,107
1,433,235
517,886
39,889,239
At 27 November 2022
366,711
22,104,175
38,227
22,434,055
778,722
1,539,672
513,146
47,774,708
The company had no tangible fixed assets at 26 November 2023 or 27 November 2022.
Quattro Group Limited
Notes to the Financial Statements (Continued)
For the period ended 26 November 2023
Page 30
13
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
14
914,174
16,276,121
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 28 November 2022 and 26 November 2023
16,276,121
Impairment
At 28 November 2022
-
Impairment losses
15,361,947
At 26 November 2023
15,361,947
Carrying amount
At 26 November 2023
914,174
At 27 November 2022
16,276,121
At the reporting date the investment held in relation A.B. 2000 Limited was impaired as the carrying value of the investment exceeded the net assets of A.B. 2000 Limited. The investment was impaired by £15,361,947 down to the value of net assets in A.B.2000 at the reporting date.
14
Subsidiaries
Details of the company's subsidiaries at 26 November 2023 are as follows:
Name of undertaking and country of
Nature of business
Class of
% Held
incorporation or residency
shareholding
Direct
Indirect
A.B. 2000 Limited
Scotland
Hire of plant equipment
Ordinary
100
0
Phoenix Marine Solutions Limited
Scotland
Dormant
Ordinary
0
100
Phoenix Weights Limited
Scotland
Dormant
Ordinary
0
100
Quattro Europe B.V.
Netherlands
Hire of plant equipment
Ordinary
100
0
Quattro Hire Limited
England and Wales
Dormant
Ordinary
100
0
Quattro Occupational Training Academy Limited
England and Wales
Training in plant and equipment
Ordinary
100
0
Quattro Plant Limited
England and Wales
Hire of plant equipment
Ordinary
100
0
Quattro Group Limited
Notes to the Financial Statements (Continued)
For the period ended 26 November 2023
14
Subsidiaries
(Continued)
Page 31
Phoenix Weights Limited and Phoenix Marine Solutions Limited are held through A.B. 2000 Limited. The registered office of A.B. 2000 Limited and its subsidiaries is 95 Westburn Drive, Cambuslang, Glasgow, G72 7NA.
The registered office of Quattro Plant Limited, Quattro Occupational Training Academy Limited and Quattro Hire Limited is Greenway Court, Canning Road, London, E15 3ND.
15
Financial instruments
Group
Company
2023
2022
2023
2022
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
10,547,952
7,024,064
1,885
1,885
Carrying amount of financial liabilities
Measured at amortised cost
43,669,122
45,847,185
12,158,798
12,158,798
16
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
126,236
146,523
Quattro Group Limited
Notes to the Financial Statements (Continued)
For the period ended 26 November 2023
Page 32
17
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
6,438,989
6,763,375
Corporation tax recoverable
56,237
208,702
Finance leases receivable
-
12,731
-
-
Other debtors
4,285,640
248,468
1,885
1,885
Prepayments and accrued income
4,702,145
3,735,632
15,483,011
10,968,908
1,885
1,885
Deferred tax asset (note 22)
529,271
16,012,282
10,968,908
1,885
1,885
Amounts falling due after more than one year:
Deferred tax asset (note 22)
3,157,292
3,918,816
Total debtors
19,169,574
14,887,724
1,885
1,885
Trade debtors includes £6,400,178 (2022: £6,756,781) which are subject to an invoice discounting arrangement.
18
Finance lease receivables
Group
Company
2023
2022
2023
2022
£
£
£
£
Gross amounts receivable under finance leases:
Within one year
-
16,000
-
-
Unearned finance income
-
(3,269)
-
-
Present value of minimum lease payments receivable
-
12,731
-
-
The present value is receivable as follows:
Within one year
-
12,731
-
-
Quattro Group Limited
Notes to the Financial Statements (Continued)
For the period ended 26 November 2023
18
Finance lease receivables
(Continued)
Page 33
Analysis of finance leases
Finance lease receivables are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:
Group
Company
2023
2022
2023
2022
£
£
£
£
Current assets
12,731
-
12,731
-
-
The average term of finance leases entered into is 5 years.
The finance lease expired during the year.
19
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Trade creditors
3,578,357
4,240,601
Amounts owed to group undertakings
12,133,386
12,133,386
Corporation tax payable
69,532
5
5
5
Other taxation and social security
604,987
685,598
-
-
Other creditors
962,284
1,421,266
25,412
25,412
Accruals and deferred income
2,033,060
678,939
7,248,220
7,026,409
12,158,803
12,158,803
20
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
21
37,095,421
39,506,379
Quattro Group Limited
Notes to the Financial Statements (Continued)
For the period ended 26 November 2023
Page 34
21
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
37,095,421
39,506,379
Payable after one year
37,095,421
39,506,379
At the year end, the group had a credit facility which was on a revolving basis and no amounts were repayable within a year. The interest rate is the base rate plus 2.25 - 3.25%.
At the year end, the bank loans, receivables and plant and machinery facilities were secured upon the assets of the company and its associated group companies.
22
Deferred taxation
Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Group
£
£
£
£
Accelerated capital allowances
5,531,086
5,273,456
-
-
Other timing differences
1,124,014
1,349,207
3,686,563
3,918,816
6,655,100
6,622,663
3,686,563
3,918,816
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the period:
£
£
Liability at 28 November 2022
2,703,847
-
Charge to profit or loss
264,690
-
Liability at 26 November 2023
2,968,537
-
Quattro Group Limited
Notes to the Financial Statements (Continued)
For the period ended 26 November 2023
Page 35
23
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
337,081
381,261
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
At the period end the outstanding liability is £36,769 (2022: £37,741).
24
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
800
800
800
800
Ordinary B shares of 1p each
6,300
6,300
63
63
7,100
7,100
863
863
Ordinary A shares entitle the holders to 80% of the voting rights, dividends and capital distribution pro rata to the number of A shares they hold.
Ordinary B shares entitle the holders to 20% of the voting rights, dividends and capital distribution pro rata to the number of B shares they hold.
25
Financial commitments, guarantees and contingent liabilities
Certain group companies have entered into a cross guarantee in respect of borrowings. The assets of the group are pledged as security by way of a fixed and floating charge. The potential liability in respect of this borrowing is £37,095,421 (2022: £39,506,379).
Quattro Group Limited
Notes to the Financial Statements (Continued)
For the period ended 26 November 2023
Page 36
26
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
2,575,851
1,783,388
-
-
Between two and five years
5,888,295
3,447,392
-
-
In over five years
2,391,630
132,626
-
-
10,855,776
5,363,406
-
-
27
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel was as follows.
2023
2022
£
£
Aggregate compensation
1,292,401
1,346,345
Quattro Group Limited
Notes to the Financial Statements (Continued)
For the period ended 26 November 2023
27
Related party transactions
(Continued)
Page 37
Transactions with group companies
The company has taken the exemption to disclose other related party transactions under the same control in accordance with FRS 102 - Section 33 "Related Party Disclosures".
Other related party transactions
During the period the group paid a director £204,000 (2022: £190,440 ) in rent for the premises used by a group company.
The group also acts as a lessor for equipment leased to Anglo Swedish Equipment Limited, a company owned by a director of the group. During the period the group invoiced for lease charges of £16,000(2022: £154,159) which include interest income of £3,269 (2022: £31,948). The amount remaining on the finance lease due to the group at the balance sheet date was £nil (2022: £12,731). The group also made purchases from Anglo Swedish Equipment Limited during the year totaling £381,345 (2022: £51,873). At the balance sheet date Anglo Swedish Equipment Limited owed the group £196,015 (2022: £193,581) in relation to outstanding invoices and lease charges.
The group entered into transactions with Aqurate Engineering Limited, a company owned by the director of the company. During the year the group incurred costs on behalf of Aqurate Engineering Limited which were recharged totaling £730,394 (2022: £nil), and the company was owed £730,394 (2022: £nil) from Aqurate Engineering Limited at the balance sheet date.
The group entered into transactions with AB2T Limited, a company owned by the director of the company. During the year the group incurred costs on behalf of AB2T Limited which were recharged totaling £23,571 (2022: £nil), and the company was owed £23,571 (2022: £nil) from AB2T Limited at the balance sheet date.
28
Controlling party
The ultimate controlling party is J Murphy, a director of the company
Quattro Group Limited
Notes to the Financial Statements (Continued)
For the period ended 26 November 2023
Page 38
29
Cash generated from group operations
2023
2022
£
£
Loss for the period after tax
(405,298)
(3,338,231)
Adjustments for:
Taxation charged/(credited)
264,690
(1,838,485)
Finance costs
2,917,976
1,850,227
Investment income
(3,269)
(31,948)
Gain on disposal of tangible fixed assets
(1,047,993)
(185,767)
Amortisation and impairment of intangible assets
(177,996)
(506,179)
Depreciation and impairment of tangible fixed assets
8,525,789
9,000,044
Foreign exchange gains on cash equivalents
(67)
755
Movements in working capital:
Decrease/(increase) in stocks
20,287
(67,202)
(Increase)/decrease in debtors
(4,666,568)
1,299,381
Increase in creditors
152,284
873,129
Cash generated from operations
5,579,835
7,055,724
30
Analysis of changes in net debt - group
28 November 2022
Cash flows
26 November 2023
£
£
£
Cash at bank and in hand
1,126,139
883,902
2,010,041
Borrowings excluding overdrafts
(39,506,379)
2,410,958
(37,095,421)
(38,380,240)
3,294,860
(35,085,380)
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