Company registration number 03107258 (England and Wales)
EUROGROUP INTERNATIONAL MOVERS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
EUROGROUP INTERNATIONAL MOVERS LIMITED
COMPANY INFORMATION
Directors
T M Tickner
D A Flynn
W P Flynn
Mrs R E Byrne
R J Crowther
Mr C Tickner
Mrs L Thompson
Secretary
Mrs R E Byrne
Company number
03107258
Registered office
74 - 75 Fred Dannatt Road
Mildenhall
Suffolk
IP28 7RD
Auditor
Gray & Co Dan Limited
Springvale
Police Station Square
Mildenhall
Suffolk
IP28 7ER
Business address
74 - 75 Fred Dannatt Road
Mildenhall
Suffolk
IP28 7RD
EUROGROUP INTERNATIONAL MOVERS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 23
EUROGROUP INTERNATIONAL MOVERS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Review of the business

The company's results are in line with the Directors' forecasts last year. The turnover and profit grew with increased deliveries and storage and cost efficiences.

 

The level of business is expected to be maintained .

Principal risks and uncertainties

The principal risk and uncertainty of the company relates to predicting the level of future demand and the company being able to meet any unexpected high levels of activity, although the directors are confident the company has the capabilities to meet such demands.

 

The Balance Sheet at 31 December 2023 shows a strong financial position and liquidity is good.

Key performance indicators

Key performance indicators are as follows:

 

Gross profit margin 34.7% (2022 - 29.5%)

Return on capital (operating profit before tax/net assets 18.1% (2022- 18.2%)

Net profit margin (net profit before tax/sales) 20.3% (2022 - 14.6%)

Sales credit period 35 days (2022 - 47 days)

Purchases credit period 22 days (2022 - 29 days)

 

The improved figures reflect the increases stated in the Business Review above.

 

Other performance indicators

Staff numbers remained as per the previous year. It is still difficult to recruit in the industry.

Other information and explanations

The company does undertake client satisfaction surveys on all jobs and also carries out quality control visits. The company client satisfaction level remains consistently high.

On behalf of the board

Mrs R E Byrne
Director
30 August 2024
EUROGROUP INTERNATIONAL MOVERS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the company continued to be that of household goods shippers and agents from offices in the UK.

Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £550,000. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

T M Tickner
D A Flynn
W P Flynn
Mrs R E Byrne
R J Crowther
Mr C Tickner
Mrs L Thompson
Directors' insurance

The company maintains insurance policies on behalf of all the directors against liability arising from negligence, breach of duty and breach of trust in relation to the company.

Financial instruments
Liquidity risk

The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.

Foreign currency risk

The company’s principal foreign currency exposures arise from trading with overseas companies. Company policy permits but does not demand that these exposures may be hedged in order to fix the cost in sterling.

Credit risk

Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board.

 

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

Auditor

The auditor, Gray & Co Dan Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

EUROGROUP INTERNATIONAL MOVERS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mrs R E Byrne
Director
30 August 2024
EUROGROUP INTERNATIONAL MOVERS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

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

 

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

 

- select suitable accounting policies and then apply them consistently;

- make judgements and accounting estimates that are reasonable and prudent;

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

 

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

EUROGROUP INTERNATIONAL MOVERS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF EUROGROUP INTERNATIONAL MOVERS LIMITED
- 5 -
Opinion

We have audited the financial statements of EUROGROUP International Movers Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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:

Basis for opinion

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

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

EUROGROUP INTERNATIONAL MOVERS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EUROGROUP INTERNATIONAL MOVERS LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

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

Mr Ian Gray (Senior Statutory Auditor)
for and on behalf of Gray & Co Dan Limited
30 August 2024
Chartered Accountants
Statutory Auditor
Springvale
Police Station Square
Mildenhall
Suffolk
IP28 7ER
EUROGROUP INTERNATIONAL MOVERS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
17,967,246
15,871,899
Cost of sales
(11,736,620)
(11,112,373)
Gross profit
6,230,626
4,759,526
Administrative expenses
(2,739,575)
(2,449,117)
Operating profit
4
3,491,051
2,310,409
Interest receivable and similar income
7
83,755
9,826
Interest payable and similar expenses
8
-
0
(1,041)
Profit before taxation
3,574,806
2,319,194
Tax on profit
9
(1,225,752)
(425,641)
Profit for the financial year
2,349,054
1,893,553
Other comprehensive income
Revaluation of tangible fixed assets
1,550,120
-
0
Total comprehensive income for the year
3,899,174
1,893,553

The profit and loss account has been prepared on the basis that all operations are continuing operations.

EUROGROUP INTERNATIONAL MOVERS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
7,406,536
5,550,307
Investments
12
-
0
100
7,406,536
5,550,407
Current assets
Debtors
13
2,362,949
2,481,270
Investments
14
200,792
50,000
Cash at bank and in hand
5,204,630
3,040,969
7,768,371
5,572,239
Creditors: amounts falling due within one year
15
(1,329,671)
(1,047,158)
Net current assets
6,438,700
4,525,081
Total assets less current liabilities
13,845,236
10,075,488
Provisions for liabilities
Deferred tax liability
16
533,150
140,930
(533,150)
(140,930)
Net assets
13,312,086
9,934,558
Capital and reserves
Called up share capital
18
880
880
Revaluation reserve
1,550,120
-
0
Capital redemption reserve
120
120
Profit and loss reserves
11,760,966
9,933,558
Total equity
13,312,086
9,934,558

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 30 August 2024 and are signed on its behalf by:
T M Tickner
Director
Company registration number 03107258 (England and Wales)
EUROGROUP INTERNATIONAL MOVERS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
Share capital
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2022
880
-
0
120
8,340,005
8,341,005
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
-
1,893,553
1,893,553
Dividends
10
-
-
-
(300,000)
(300,000)
Balance at 31 December 2022
880
-
0
120
9,933,558
9,934,558
Year ended 31 December 2023:
Profit
-
-
-
2,349,054
2,349,054
Other comprehensive income:
Revaluation of tangible fixed assets
-
1,550,120
-
-
1,550,120
Total comprehensive income
-
1,550,120
-
2,349,054
3,899,174
Dividends
10
-
-
-
(550,000)
(550,000)
Transfers
-
-
0
-
28,354
28,354
Balance at 31 December 2023
880
1,550,120
120
11,760,966
13,312,086
EUROGROUP INTERNATIONAL MOVERS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
3,913,042
1,677,975
Interest paid
-
0
(1,041)
Income taxes paid
(670,001)
(604,702)
Net cash inflow from operating activities
3,243,041
1,072,232
Investing activities
Purchase of tangible fixed assets
(618,069)
(1,619,469)
Proceeds from disposal of tangible fixed assets
100,416
41,250
Repayment of loans
(95,482)
(147,419)
Interest received
83,755
9,826
Net cash used in investing activities
(529,380)
(1,715,812)
Financing activities
Dividends paid
(550,000)
(300,000)
Net cash used in financing activities
(550,000)
(300,000)
Net increase/(decrease) in cash and cash equivalents
2,163,661
(943,580)
Cash and cash equivalents at beginning of year
3,040,969
3,984,549
Cash and cash equivalents at end of year
5,204,630
3,040,969
EUROGROUP INTERNATIONAL MOVERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
1
Accounting policies
Company information

EUROGROUP International Movers Limited is a private company limited by shares incorporated in England and Wales. The registered office is 74 - 75 Fred Dannatt Road, Mildenhall, Suffolk, IP28 7RD.

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 £.

The financial statements have been prepared on the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the provision of services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual labour rates, services and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable. Certain removal services provided to private individuals are invoiced before the removal takes place, all other removal services are invoiced at the time of supply.

1.4
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:

Land and buildings Freehold
Buildings depreciated over 25 years straight line
Fixtures, fittings & equipment
10 - 20% on cost
Motor vehicles
12.5 % to 25% on cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

EUROGROUP INTERNATIONAL MOVERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -

Properties whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is usually considered to be their market value.

 

Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in profit or loss or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such gains and losses are recognised in profit or loss.

1.5
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible 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.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
Cash at bank and in hand

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

EUROGROUP INTERNATIONAL MOVERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.8
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 assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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.

EUROGROUP INTERNATIONAL MOVERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

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 when the company has 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.

1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

 

 

1.13
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.

EUROGROUP INTERNATIONAL MOVERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Debtors provisions

Debtors are regularly reviewed for recovery and appropriate provisions made where full recovery of the debt is not considered to be likely. Customer's payment record is taken into account.

Fixed assets

The useful life of fixed assets are estimated by the directors, based on present and future values and their estimated economic life. Depreciation is calculted accordingly.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Removals
15,916,814
14,569,087
Storage
1,892,219
1,155,287
Commissions
27,389
71,655
Insurance, duty and VAT
130,824
75,870
17,967,246
15,871,899
2023
2022
£
£
Turnover analysed by geographical market
Export
5,778,916
6,372,635
UK
12,188,330
9,499,264
17,967,246
15,871,899
2023
2022
£
£
Other revenue
Interest income
83,755
9,826
EUROGROUP INTERNATIONAL MOVERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange gains
(27,520)
(36,507)
Fees payable to the company's auditor for the audit of the company's financial statements
7,500
7,500
Depreciation of owned tangible fixed assets
274,814
204,666
Profit on disposal of tangible fixed assets
(28,916)
(21,250)
Operating lease charges
18,088
91,294
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Sales and administration
19
20
Management
5
4
Operations
15
15
Total
39
39

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
1,721,564
1,491,377
Social security costs
179,924
164,723
Pension costs
24,522
21,726
1,926,010
1,677,826
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
715,048
651,288
Company pension contributions to defined contribution schemes
5,283
5,257
720,331
656,545

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 5 (2022 - 4).

EUROGROUP INTERNATIONAL MOVERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
6
Directors' remuneration
(Continued)
- 17 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
442,000
417,000
Company pension contributions to defined contribution schemes
1,321
1,321
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
79,703
2,792
Other interest income
4,052
7,034
Total income
83,755
9,826
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
79,703
2,792
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
-
1,041
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
833,532
397,284
Deferred tax
Origination and reversal of timing differences
392,220
28,357
Total tax charge
1,225,752
425,641
EUROGROUP INTERNATIONAL MOVERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
9
Taxation
(Continued)
- 18 -
2023
2022
£
£
Profit before taxation
3,574,806
2,319,194
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
893,702
440,647
Tax effect of expenses that are not deductible in determining taxable profit
-
0
1,085
Effect of change in corporation tax rate
(47,029)
-
0
Permanent capital allowances in excess of depreciation
(6,266)
(51,373)
Depreciation on assets not qualifying for tax allowances
(6,875)
6,925
Deferred tax adjustments in respect of prior years
392,220
28,357
Taxation charge for the year
1,225,752
425,641
10
Dividends
2023
2022
£
£
Interim paid
550,000
300,000
EUROGROUP INTERNATIONAL MOVERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
11
Tangible fixed assets
Land and buildings Freehold
Assets under construction
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 January 2023
3,549,105
1,382,128
126,182
1,669,109
6,726,524
Additions
240,294
-
0
8,513
369,262
618,069
Disposals
-
0
-
0
(14,998)
(135,304)
(150,302)
Revaluation
1,578,474
-
0
-
0
-
0
1,578,474
Transfers
1,382,128
(1,382,128)
-
0
-
0
-
0
At 31 December 2023
6,750,001
-
0
119,697
1,903,067
8,772,765
Depreciation and impairment
At 1 January 2023
209,600
-
0
79,957
886,660
1,176,217
Depreciation charged in the year
64,804
-
0
15,685
194,325
274,814
Eliminated in respect of disposals
-
0
-
0
(14,998)
(69,804)
(84,802)
At 31 December 2023
274,404
-
0
80,644
1,011,181
1,366,229
Carrying amount
At 31 December 2023
6,475,597
-
0
39,053
891,886
7,406,536
At 31 December 2022
3,339,505
1,382,128
46,225
782,449
5,550,307

The carrying value of land and buildings comprises:

2023
2022
£
£
Freehold
4,897,122
3,339,505

Land and buildings with a carrying amount of £4,897,122 were revalued in April 2023 by independent valuers not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties.

Freehold Property
2023
2022
£
£
Cost
5,171,526
3,549,105
Accumulated depreciation
(274,404)
(209,600)
Carrying value
4,897,122
3,339,505
EUROGROUP INTERNATIONAL MOVERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
12
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
-
0
100
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023
100
Disposals
(100)
At 31 December 2023
-
Carrying amount
At 31 December 2023
-
At 31 December 2022
100

The company's subsidiary Apak Relocations Limited was dormant throughout the year and is being wound up.

13
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,721,056
2,021,306
Amounts owed by group undertakings
-
0
9,086
Other debtors
478,816
188,380
Prepayments and accrued income
163,077
262,498
2,362,949
2,481,270
14
Current asset investments
2023
2022
£
£
Loans
200,792
50,000
EUROGROUP INTERNATIONAL MOVERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
15
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
663,531
678,759
Corporation tax
360,815
197,284
Other taxation and social security
129,567
71,295
Other creditors
175,758
99,820
1,329,671
1,047,158
16
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accererated Capital Allowances
144,578
140,930
Revaluations
388,572
-
533,150
140,930
2023
Movements in the year:
£
Liability at 1 January 2023
140,930
Charge to profit or loss
392,220
Liability at 31 December 2023
533,150
17
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
24,522
21,726

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

EUROGROUP INTERNATIONAL MOVERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
18
Share capital
2023
2022
£
£
Ordinary share capital
Issued and fully paid
880 ordinary shares of £1 each
880
880
880
880

All ordinary shares have full voting, dividend and capital distribution rights.

19
Related party transactions
Transactions with related parties

During the year the company provided services to and received services from companies in which the directors have an interest as follows:

 

D A Flynn and W P Flyn

P & F Safepac Co Limited - sales to £9,095 (2022 £1,533); purchases from £442,742 (2022 £439,974)

Balances owed to or by this company at 31 December 2023 were:

P & F Safepac Co Limited - owed by £3,293; owed to £38,779.

 

T M Tickner

Total Ocean & Air Limited - purchases from £83,080 (2021 £76800). .

 

 

20
Directors' transactions

Advances or credits have been granted by the company to its directors as follows:

Dividends totalling £550,000 (2022 - £300,000) were paid in the year in respect of shares held by the company's directors.

Loans have been granted by the company to its directors as follows:

Description
% Rate
Opening balance
Amounts repaid
Closing balance
£
£
£
Loan repayble monthly
-
158,310
(55,310)
103,000
158,310
(55,310)
103,000
21
Ultimate controlling party

The company is controlled by directors T M Tickner, W P Flynn and D A Flynn..

EUROGROUP INTERNATIONAL MOVERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
22
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
2,349,054
1,893,553
Adjustments for:
Taxation charged
1,225,752
425,641
Finance costs
-
0
1,041
Investment income
(83,755)
(9,826)
Gain on disposal of tangible fixed assets
(28,916)
(21,250)
Depreciation and impairment of tangible fixed assets
274,814
204,666
Decrease in provisions
(5,900)
-
Movements in working capital:
Decrease/(increase) in debtors
63,011
(674,681)
Increase/(decrease) in creditors
118,982
(141,169)
Cash generated from operations
3,913,042
1,677,975
23
Analysis of changes in net funds
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
3,040,969
2,163,661
5,204,630
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