Company registration number 09069081 (England and Wales)
CASH MANAGEMENT SOLUTIONS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
CASH MANAGEMENT SOLUTIONS LIMITED
COMPANY INFORMATION
Directors
Mr P T Baker
Mr R Dell'Aquila
Mr D Hawks III
Mr M LaConti
Secretary
Mr N J Bell
Company number
09069081
Registered office
Leeway House
Leeway Industrial Estate
Newport
NP19 4SL
Auditor
UHY Hacker Young
Bradbury House
Mission Court
Newport
Gwent
United Kingdom
NP20 2DW
CASH MANAGEMENT SOLUTIONS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Profit and loss account
7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 34
CASH MANAGEMENT SOLUTIONS 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 results for the year as set out in page 7, show a profit on ordinary activities before taxation of £1,104,129 (2022: loss on ordinary activities before taxation of £99,180) and turnover of £12,326,820 (2022: £10,591,989). A strong 16% increase in turnover underpinned by legacy international cash counter sales combined with new solutions sales to major retail operators. The increase in turnover has driven a significant increase in earnings before interest, taxation, depreciation, and amortisation, being operating profit plus depreciation (£50,366; 2022: £61,245) and amortisation (118,897; 2022: £111,802) "EBITDA" £1,427,395 (2022: £820,914) – these are the company’s two key indicators of operational performance. The current year result also includes exceptional costs of £386,975 relating to provision against certain product lives.

 

The Group continues to secure legacy product orders from an established international customer base which underpins the revenue numbers and allows for strong Gross Margins. In turn, strategically, this allows the Group to invest in new technologies which will present enhanced Sales opportunities going forward into existing and new customers, with potential for multiyear purchasing, software licensing and support agreements.

 

The Group operates within the cash handling industry, providing cash handling solutions to retailers and banks. The industry is large and incorporates many technologies, of which electronic cash counting has always been a niche product. An alternative to cash for the company's customers is electronic payments, in particular contactless payments. It is our belief that cash will remain a dominant form of payment for some time, Electronic cash counting will remain an important part of many retailers' cash processes globally due to increasing labour costs, increasing costs for CIT (Cash In Transit) and a general increase in the cost to “handle” cash, as well as introduction of legislation geared towards cash acceptance/payment choice.

Principal risks and uncertainties

The principal risks and uncertainties that affected the Group during the year were:

 

Competitive pressure in the markets in which the Group operates and the general economic environment are a continuing risk to the Group. The Group manages this risk by maintaining strong relationships with key customers (with average tenures in excess of 10 years), providing high levels of service, and where applicable a customised solution.

 

The Group's sales are global and as such the Group has exposure to the risk of foreign exchange movements. The main currencies the Group has exposure to are the US Dollar, Euro and Japanese Yen.

 

Option dated forward exchange contracts are used to reduce and manage risk.

Key performance indicators

The Group's key financial indicator is sales growth. With a relatively large, fixed cost base, any variation in turnover is normally quickly translated to a variation in profit. The Group's continued investment in its new solution based products has diversified the revenue mix and is expected to support its future sales growth ambition.

On behalf of the board

Mr P T Baker
Director
6 September 2024
CASH MANAGEMENT SOLUTIONS 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.

Results and dividends

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

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

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

Mr P T Baker
Mr R Dell'Aquila
Mr D Hawks III
Mr M LaConti
Energy and carbon report

As the group has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

Statement of directors' responsibilities

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:

 

 

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.

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.

CASH MANAGEMENT SOLUTIONS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Going Concern

The group's forecasts and projections, taking account of reasonable possible changes in trading performance show that the company will be able to operate within the level of its facilities for a forecast period of at least 12 months from the approval date of these financial statements. Accordingly, the company continues to adopt the going concern basis in preparing its consolidated financial statements.

 

The resilience of the business is underpinned by a large proportion of the group's revenue being generated by recurring orders from legacy customers who have continued to order on a quarterly basis. Moreover, during the year the business won significant solutions sales that in turn further strengthened the balance sheet.

 

In preparing our forecasts, management considered the impact of reduced revenue using a worst case scenario basis across parts of the business and known reductions in expenditure within the business reflecting, for example, impacts on the retail sector for a period of time. Management used a bottom up methodology for both cost and revenue allowing the team to plan for potential issues arising from potential retail recession induced reduced sales and have developed a cost down approach to our core products which would enable cost savings. As part of the business planning and mitigating activities, management created a series of internal and external KPI's which are monitored closely by the Leadership Team to ensure they have the most up to date information to hand in order to form business decisions to achieve the business priorities.

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
Mr P T Baker
Director
6 September 2024
CASH MANAGEMENT SOLUTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CASH MANAGEMENT SOLUTIONS LIMITED
- 4 -
Opinion

We have audited the financial statements of Cash Management Solutions Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 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:

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 group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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.

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:

CASH MANAGEMENT SOLUTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CASH MANAGEMENT SOLUTIONS LIMITED
- 5 -
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:

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 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 parent 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.

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.

Our approach to identifying and assessing the risks of material misstatements in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the company's financial statements to material misstatements, including obtaining an understanding of how fraud might occur, by:

CASH MANAGEMENT SOLUTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CASH MANAGEMENT SOLUTIONS LIMITED
- 6 -

To address risk of fraud through management bias and override of controls, we:

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from the financial statements, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an 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 John Griffiths (Senior Statutory Auditor)
For and on behalf of UHY Hacker Young
7 September 2024
Chartered Accountants
Statutory Auditor
Newport
Gwent
United Kingdom
CASH MANAGEMENT SOLUTIONS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
12,326,820
10,591,989
Cost of sales
(5,306,538)
(4,250,680)
Gross profit
7,020,282
6,341,309
Distribution costs
(641,485)
(706,420)
Goodwill amortisation
-
0
(564,884)
Exceptional administrative expenses
4
(386,975)
-
0
Administrative expenses
(4,805,364)
(4,992,022)
Total administrative expenses
(5,192,339)
(5,556,906)
Other operating income
71,674
5,000
Operating profit
5
1,258,132
82,983
Interest receivable and similar income
9
-
1
Interest payable and similar expenses
10
(154,003)
(182,164)
Profit/(loss) before taxation
1,104,129
(99,180)
Tax on profit/(loss)
11
(210,330)
295,541
Profit for the financial year
893,799
196,361
Profit for the financial year is all attributable to the owners of the parent company.
CASH MANAGEMENT SOLUTIONS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
£
£
Profit for the year
893,799
196,361
Other comprehensive income
-
-
Total comprehensive income for the year
893,799
196,361
Total comprehensive income for the year is all attributable to the owners of the parent company.
CASH MANAGEMENT SOLUTIONS LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
12
504,898
504,835
Tangible assets
13
67,536
106,433
572,434
611,268
Current assets
Stocks
16
1,051,841
1,475,271
Debtors
17
3,992,659
1,659,352
Cash at bank and in hand
1,809,442
1,019,546
6,853,942
4,154,169
Creditors: amounts falling due within one year
18
(5,729,291)
(3,658,994)
Net current assets
1,124,651
495,175
Total assets less current liabilities
1,697,085
1,106,443
Creditors: amounts falling due after more than one year
19
(1,192,798)
(1,511,807)
Provisions for liabilities
Provisions
21
150,000
150,000
Deferred tax liability
22
17,777
52,754
(167,777)
(202,754)
Net assets/(liabilities)
336,510
(608,118)
Capital and reserves
Called up share capital
24
5,201,063
5,201,063
Other reserves
214,681
163,852
Profit and loss reserves
(5,079,234)
(5,973,033)
Total equity
336,510
(608,118)

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

The financial statements were approved by the board of directors and authorised for issue on 6 September 2024 and are signed on its behalf by:
06 September 2024
Mr P T Baker
Director
Company registration number 09069081 (England and Wales)
CASH MANAGEMENT SOLUTIONS LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
14
7,520,000
7,520,000
Current assets
Debtors
17
577,984
564,531
Creditors: amounts falling due within one year
18
(4,875,577)
(4,059,031)
Net current liabilities
(4,297,593)
(3,494,500)
Total assets less current liabilities
3,222,407
4,025,500
Creditors: amounts falling due after more than one year
19
(1,192,798)
(1,511,807)
Net assets
2,029,609
2,513,693
Capital and reserves
Called up share capital
24
5,201,063
5,201,063
Profit and loss reserves
(3,171,454)
(2,687,370)
Total equity
2,029,609
2,513,693

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 £484,084 (2022 - £339,589 loss).

The financial statements were approved by the board of directors and authorised for issue on 6 September 2024 and are signed on its behalf by:
06 September 2024
Mr P T Baker
Director
Company registration number 09069081 (England and Wales)
CASH MANAGEMENT SOLUTIONS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Foreign exchange reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
5,201,033
173,741
(6,169,394)
(794,620)
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
196,361
196,361
Issue of share capital
24
30
-
-
30
Other movements
-
(9,889)
-
(9,889)
Balance at 31 December 2022
5,201,063
163,852
(5,973,033)
(608,118)
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
893,799
893,799
Other movements
-
50,829
-
50,829
Balance at 31 December 2023
5,201,063
214,681
(5,079,234)
336,510
CASH MANAGEMENT SOLUTIONS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
5,201,033
(2,347,781)
2,853,252
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
(339,589)
(339,589)
Issue of share capital
24
30
-
30
Balance at 31 December 2022
5,201,063
(2,687,370)
2,513,693
Year ended 31 December 2023:
Profit and total comprehensive income
-
(484,084)
(484,084)
Balance at 31 December 2023
5,201,063
(3,171,454)
2,029,609
CASH MANAGEMENT SOLUTIONS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
27
1,720,068
(190,395)
Interest paid
(54,006)
(82,168)
Income taxes refunded/(paid)
11,589
(155,172)
Net cash inflow/(outflow) from operating activities
1,677,651
(427,735)
Investing activities
Purchase of intangible assets
(118,960)
(8,366)
Purchase of tangible fixed assets
(11,626)
(5,373)
Net cash used in investing activities
(130,586)
(13,739)
Financing activities
Proceeds from issue of shares
-
30
Repayment of bank loans
(757,169)
(479,523)
Net cash used in financing activities
(757,169)
(479,493)
Net increase/(decrease) in cash and cash equivalents
789,896
(920,967)
Cash and cash equivalents at beginning of year
1,019,546
1,940,513
Cash and cash equivalents at end of year
1,809,442
1,019,546
CASH MANAGEMENT SOLUTIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
1
Accounting policies
Company information

Cash Management Solutions Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is C/o Tellermate, Leeway House, Leeway Industrial Estate, Newport, NP19 4SL.

 

The group consists of Cash Management Solutions 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 £.

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

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Business combinations

In the parent company financial statements, 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. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

CASH MANAGEMENT SOLUTIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Cash Management Solutions Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2023. 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.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

1.5
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 comprises sales of electronic business equipment, software and systems together with Tellercover (after sales support). Revenue is usually recognised at the point of dispatch for the sale of equipment (when the significant risks and rewards of ownership of the goods have passed to the buyer the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably) and for Tellercover over the period over which after sales support is provided.

1.6
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.7
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 8 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

CASH MANAGEMENT SOLUTIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.8
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

Software
8 years
Patents & licences
8 years
Development costs
8 years
1.9
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:

Plant and equipment
4 - 5 years straight line
Fixtures and fittings
3 -5 years straight line
Computers
3 years straight line

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.

1.10
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, associates and jointly controlled entities 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.

CASH MANAGEMENT SOLUTIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.11
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.

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.

1.12
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

CASH MANAGEMENT SOLUTIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.13
Cash and cash equivalents

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.

1.14
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

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.

CASH MANAGEMENT SOLUTIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
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 group 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 group 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.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.15
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.

CASH MANAGEMENT SOLUTIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
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.

1.16
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.17
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.

1.18
Retirement benefits

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

1.19
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.

1.20
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

2
Judgements and key sources of estimation uncertainty
CASH MANAGEMENT SOLUTIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 21 -

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.

Going concern

The group made a profit before taxation for the year of £1,104,129 (2022: loss before taxation for the year of £99,180).

EBITDA was £1,427,395 (2022: £820,914).

At 31 December 2023 the group had net assets of £336,510 (2023: net liabilities of £608,118); Net current assets were £1,124,651 (2022: £495,175); and the group had cash of £1,809,442 (2022: £1,019,546).

Group management prepared forecasts that showed that, taking account of reasonable possible changes in trading performance the company and the group will be able to operate within the level of its facilities for a forecast period of at least 12 months from the approval date of these financial statements. Accordingly, the company and the group continue to adopt the going concern basis in preparing its consolidated financial statements.The group's forecasts and projections, taking account of reasonable possible changes in trading performance show that the company will be able to operate within the level of its facilities for a forecast period of at least 12 months from the approval date of these financial statements. Accordingly, the company continues to adopt the going concern basis in preparing its consolidated financial statements.

 

The resilience of the business is underpinned by a large proportion of the group's revenue being generated by recurring orders from legacy customers who have continued to order on a quarterly basis. Moreover, during the year the business won significant solutions sales that in turn further strengthened the balance sheet.

 

In preparing our forecasts, management considered the impact of reduced revenue using a worst case scenario basis across parts of the business and known reductions in expenditure within the business reflecting, for example, impacts on the retail sector for a period of time. Management used a bottom up methodology for both cost and revenue allowing the team to plan for potential issues arising from potential retail recession induced reduced sales and have developed a cost down approach to our core products which would enable cost savings. As part of the business planning and mitigating activities, management created a series of internal and external KPI's which are monitored closely by the Leadership Team to ensure they have the most up to date information to hand in order to form business decisions to achieve the business priorities.

CASH MANAGEMENT SOLUTIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 22 -

Impairment of Intangible assets

 

Goodwill

At 31 December 2023 the carrying value of goodwill was £nil (2022: £nil).

 

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. Goodwill was initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which management determined to be 8 years.

 

Amortisation for the year was £nil (2022: £564,884). Goodwill was fully amortised at 31 December 2022.

 

Other Intangible assets

At 31 December 2023 the carrying value of other intangible assets was £504,898 (2022: £504,835).

 

During the year ended 31 December 2021, management deemed it prudent to account for a provision for impairment for the carrying value of development costs (£1,180,511) and patent costs (£115,534) capitalised within Intangible assets associated with the Live Drawer product. This was given the market disruption associated with the global pandemic. The Board believes that the development costs will reap benefits in future periods, and hence will annually assess if there is a need to reverse the impairment provision.

 

Amortisation for the year was £118,897 (2022: £111,802) based on the group’s accounting policy.

Depreciation and amortisation charges

The company/group exercises judgement to determine the useful economic lives of tangible fixed assts and intangible fixed assets. Tangible fixed assets are depreciated down to their estimated residual values over their estimated useful lives; Intangible assets are amortised over their estimated useful lives.

Clearly the assessment of estimated useful lives can have a significant impact on the depreciation/amortisation charges.

Revenue recognition

Management assesses when it is appropriate to recognise revenue; this assessment can include significant judgement and estimation where arrangements contain multiple elements; judgements are necessary to identify separate units of accounting and to allocate related consideration to each separate unit of accounting.

Where the selling price of a product includes an identifiable amount of subsequent service (know as “Telllercover”) the business defers that amount and recognises it as revenue over the period during which the service is performed.

The price agreed with some customers often includes an element of Tellecover, that isn’t separately identifiable and therefore not deferred (often refereed to as a “bundled “sale). In other instances, Tellecover is sold separately and is deferred.

Management also has to consider commercial terms of sales in circumstances where transactions with customers are complex; for instance, where a customer has requested a “bill and hold” arrangement; in these circumstances management considers whether substantially all of the risks and rewards of ownership have been transferred to the buyer and revenue is only recognised where it can be clearly demonstrated that substantially all of the of the risk and rewards have been transferred.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Sale of goods
12,326,820
10,591,989
CASH MANAGEMENT SOLUTIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Turnover and other revenue
(Continued)
- 23 -
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
4,713,154
750,320
Rest of the world
7,613,666
9,841,669
12,326,820
10,591,989
2023
2022
£
£
Other revenue
Interest income
-
1
Coronavirus job retention scheme grant
71,674
-
Sundry income
-
5,000
4
Exceptional item

During the year, management reviewed the ageing of all inventory against the group's future order pipeline; as a result provision was made against certain product lines, since despite the group being fully committed to all product ranges the stock holding was higher than anticipated sales of those products in the foreseeable future.

5
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses
96,580
83,591
Research and development costs
19,945
21,542
Government grants
(71,674)
-
Depreciation of owned tangible fixed assets
50,366
61,245
Amortisation of intangible assets
118,897
676,686
Operating lease charges
7,245
97,299
6
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
5,460
5,200
Audit of the financial statements of the company's subsidiaries
29,453
28,050
34,913
33,250
For other services
Taxation compliance services
7,508
7,150
CASH MANAGEMENT SOLUTIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
7
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Production
12
9
-
-
Selling and distribution
6
9
-
-
Adminstrative
25
28
-
-
Research and development
10
11
-
-
Marketing
2
2
-
-
Total
55
59
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
2,334,547
2,535,472
-
0
-
0
Social security costs
180,925
201,237
-
-
Pension costs
89,537
93,310
-
0
-
0
2,605,009
2,830,019
-
0
-
0
8
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
565,155
387,322
Company pension contributions to defined contribution schemes
25,317
25,239
590,472
412,561
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
312,639
160,406
Company pension contributions to defined contribution schemes
12,150
12,113
CASH MANAGEMENT SOLUTIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
8
Directors' remuneration
(Continued)
- 25 -

No directors were remunerated through this Company. Three of the directors are remunerated by affiliates of Brookside Equity Partners LLC. The remaining directors are remunerated through the subsidiary company Tellermate Limited.

9
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
-
0
1
10
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
154,003
182,164
11
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
152,499
15,555
Adjustments in respect of prior periods
-
0
(5,690)
Total UK current tax
152,499
9,865
Foreign current tax on profits for the current period
92,808
-
0
Total current tax
245,307
9,865
Deferred tax
Origination and reversal of timing differences
(34,977)
(286,239)
Adjustment in respect of prior periods
-
0
(19,167)
Total deferred tax
(34,977)
(305,406)
Total tax charge/(credit)
210,330
(295,541)
CASH MANAGEMENT SOLUTIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
11
Taxation
(Continued)
- 26 -

The actual charge/(credit) for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit/(loss) before taxation
1,104,129
(99,180)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
259,691
(18,844)
Tax effect of expenses that are not deductible in determining taxable profit
31,265
19,795
Effect of change in corporation tax rate
243
2,183
Permanent capital allowances in excess of depreciation
(29,617)
(28,262)
Research and development tax credit
(11,549)
431
Effect of overseas tax rates
(39,703)
28,407
Under/(over) provided in prior years
-
0
(13,011)
Deferred tax adjustments in respect of prior years
-
0
(286,240)
Taxation charge/(credit)
210,330
(295,541)
12
Intangible fixed assets
Group
Goodwill
Software
Patents & licences
Development costs
Total
£
£
£
£
£
Cost
At 1 January 2023
8,905,672
283,970
129,249
3,126,145
12,445,036
Additions
-
0
-
0
-
0
118,960
118,960
At 31 December 2023
8,905,672
283,970
129,249
3,245,105
12,563,996
Amortisation and impairment
At 1 January 2023
8,905,672
158,122
129,249
2,747,158
11,940,201
Amortisation charged for the year
-
0
31,789
-
0
87,108
118,897
At 31 December 2023
8,905,672
189,911
129,249
2,834,266
12,059,098
Carrying amount
At 31 December 2023
-
0
94,059
-
0
410,839
504,898
At 31 December 2022
-
0
125,848
-
0
378,987
504,835
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.
CASH MANAGEMENT SOLUTIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
13
Tangible fixed assets
Group
Plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 January 2023
610,773
161,788
165,498
938,059
Additions
9,670
-
0
1,956
11,626
Exchange adjustments
(5,509)
(4,617)
(3,863)
(13,989)
At 31 December 2023
614,934
157,171
163,591
935,696
Depreciation and impairment
At 1 January 2023
521,617
160,051
149,958
831,626
Depreciation charged in the year
38,237
1,694
10,435
50,366
Exchange adjustments
(5,413)
(4,617)
(3,802)
(13,832)
At 31 December 2023
554,441
157,128
156,591
868,160
Carrying amount
At 31 December 2023
60,493
43
7,000
67,536
At 31 December 2022
89,156
1,737
15,540
106,433
The company had no tangible fixed assets at 31 December 2023 or 31 December 2022.
14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
7,520,000
7,520,000
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
7,520,000
Carrying amount
At 31 December 2023
7,520,000
At 31 December 2022
7,520,000
15
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

CASH MANAGEMENT SOLUTIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
15
Subsidiaries
(Continued)
- 28 -
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Tellermate Holdings Limited
Leeway House, Leeway Industrial Estate, Newport, NP19 4SL
Ordinary
100.00
-
Tellermate Limited
Leeway House, Leeway Industrial Estate, Newport, NP19 4SL
Ordinary
-
100.00
Tellermate Europe SARL
117 Avenue, Victor hugo, Bologne-Billancourt, Hauts-De-Seine, 92100
Ordinary
-
100.00
Tellermate Japan & Co Limited
3-19 Hayabusa-cho, Tokyo, 102-0092, Japan
Ordinary
-
100.00
Tellermate Gmbh
Waldhofer Str. 102, 69123 Heidelberg, Germany
Ordinary
-
100.00
Tellermate Iberica SL
Calle Juan de Mariana 15, 28045 - Madrid, Spain
Ordinary
-
100.00
Tellermate Inc
3600 Mansell Road, Suite 375, Alpharetta, GA, 30022
Ordinary
-
100.00
16
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
728,203
1,003,643
-
-
Work in progress
29,445
55,373
-
-
Finished goods and goods for resale
294,193
416,255
-
0
-
0
1,051,841
1,475,271
-
-

Stocks are stated after provisions for impairment of £566,303 (2022: £155,900).

17
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,730,312
1,422,517
-
0
-
0
Corporation tax recoverable
13,977
(31,224)
-
0
-
0
Amounts owed by group undertakings
-
1
539,673
539,673
Other debtors
129,918
131,609
-
0
-
0
Prepayments and accrued income
118,452
136,449
38,311
24,858
3,992,659
1,659,352
577,984
564,531

Amounts owed by group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.

CASH MANAGEMENT SOLUTIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
18
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
20
365,243
438,160
365,243
438,160
Trade creditors
2,487,287
1,368,469
30,709
23,122
Amounts owed to group undertakings
-
0
-
0
3,639,853
2,984,420
Corporation tax payable
199,339
(24,569)
-
0
-
0
Other taxation and social security
662,222
62,662
-
-
Other creditors
546,986
543,407
493,149
393,153
Accruals and deferred income
1,468,214
1,270,865
346,623
220,176
5,729,291
3,658,994
4,875,577
4,059,031

There is an unlimited cross guarantee provided between Tellermate Limited, Tellermate Holdings Limited and Cash Management Solutions Limited to guarantee the bank and other loans in place within Cash Management Solutions Limited.

 

There is a fixed and floating charge in place over the assets of the Group. The charges are held by HSBC UK Bank PLC, DBW Investments (3) Limited, DBW Investments (10) and BEP Cash Holdings LLC.

 

Priority in terms of recoverability and security of the debt is provided to HSBC UK Bank PLC.

 

Amounts owed to group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.

19
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
20
1,192,798
1,511,807
1,192,798
1,511,807

There is an unlimited cross guarantee provided between Tellermate Limited, Tellermate Holdings Limited and Cash Management Solutions Limited to guarantee the bank and other loans in place within Cash Management Solutions Limited.

 

There is a fixed and floating charge in place over the assets of the Group. The charges are held by HSBC UK Bank PLC, DBW Investments (3) Limited, DBW Investments (10) and BEP Cash Holdings LLC.

 

Priority in terms of recoverability and security of the debt is provided to HSBC UK Bank PLC.

CASH MANAGEMENT SOLUTIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
20
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
1,558,041
1,949,967
1,558,041
1,949,967
Payable within one year
365,243
438,160
365,243
438,160
Payable after one year
1,192,798
1,511,807
1,192,798
1,511,807

There is an unlimited cross guarantee provided between Tellermate Limited, Tellermate Holdings Limited and Cash Management Solutions Limited to guarantee the bank and other loans in place within Cash Management Solutions Limited.

 

There is a fixed and floating charge in place over the assets of the Group. The charges are held by HSBC UK Bank PLC, DBW Investments (3) Limited, DBW Investments (10) and BEP Cash Holdings LLC.

 

Priority in terms of recoverability and security of the debt is provided to HSBC UK Bank PLC.

 

HSBC UK Bank PLC

Included within the prior year amount is a balance of £72,917 owed to HSBC Bank PLC in relation to the Coronavirus Business Interruption Loan as detailed below. This was fully repaid during the year.

 

Coronavirus Business Interruption Loan

A £250,000 Coronavirus Business Interruption Loan facility was issued in July 2020 and has been fully repaid in 2023. For the first 12 months there are no repayments after which the loan is repaid in equal instalments over the remaining 24 months. The outstanding balance as at the year end is £nil. (2022: £72,917).

 

The interest charged on this facility is charged at 3.49% + Bank of England base rate monthly on balance outstanding.

 

Development Bank Wales

Included within loans is a balance of £508,041 (2022: £827,050) owed to Development Bank Wales made up from two facilities.

 

i) Term Loan

A £1,250,000 loan facility was issued by DBW Investments (3) Limited in September 2019, due to be fully repaid in 2024. The repayment terms are repayments of equal amounts on a monthly basis of the 60 month term. Given the Coronavirus pandemic a 6 month payment holiday was granted from May 2020m which extended the term of the facility by 6 months and hence expected repayment is in 2025.

The outstanding balance as at the year end is £368,545 (2022: £636,120). The interest charged on this facility is charged at 9% compounded monthly.

CASH MANAGEMENT SOLUTIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
20
Loans and overdrafts
(Continued)
- 31 -

Coronavirus Business Interruption Loan

A £250,000 Coronavirus Business Interruption Loan facility was issued by DBW Investments (20) Limited in July 2020 which is due for full repayment in 2026. For the first 12 months there are no repayments after which the loan is repaid in equal instalments over the remaining 60 months. The outstanding balance as at the year end is £139,496 (2022: £190,930).

 

The interest charged on this facility is charged at 3% compounded monthly.

 

BEP Cash Holding LLC

Included within loans is a balance of £1,050,000 (2022: £1,050,000) owed to BEP Cash Holdings LLC (Brookside Equity Partners), made up from two facilities.

 

i) 2018 Tranche (Junior)

A facility of £550,000 was issued in August 2018, which is repayable on demand once the 2019 tranche and balances owing to DBW Investments (3) Limited, DBW Investments (10) Limited and HSBC UK Bank PLC have been repaid. The outstanding balance as at the year end is £550,000 (2022: £550,000).

 

The interest charged on this facility is charged at 10% monthly on nominal amount outstanding (Note 28).

 

ii) 2019 Tranche (Senior)

A facility of £500,000 was issued in September 2019, which is repayable in 60 equal instalments, however these only become payable once all balances owing to HSBC UK Bank PLC have been repaid. At the point HSBC UK Bank PLC balances have been repaid, the accumulated due monthly instalments to that point become payable on demand. The outstanding balance as at the year end is £500,000 (2022: £500,000).

 

The interest charged on this facility is charged at 9% monthly on nominal amount outstanding (Note 28).

21
Provisions for liabilities
Group
Company
2023
2022
2023
2022
£
£
£
£
150,000
150,000
-
-
Group
£
At 1 January 2023 and 31 December 2023
150,000

The provision relates to the Group's leasehold property in Newport. It is based on the estimated liability for future obligations regarding dilapidations under the tenant lease.

CASH MANAGEMENT SOLUTIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
22
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
81,657
110,457
Other
(63,880)
(57,703)
17,777
52,754
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
52,754
-
Credit to profit or loss
(34,977)
-
Liability at 31 December 2023
17,777
-
23
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
89,537
93,310

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.

As at the year end contributions payable within creditors amount to £14,032 (2022: £15,574).

24
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
5,200,000
5,200,000
5,200,000
5,200,000
Ordinary B shares of 0.1p each
1,063,000
1,063,000
1,063
1,063
6,263,000
6,263,000
5,201,063
5,201,063
CASH MANAGEMENT SOLUTIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
24
Share capital
(Continued)
- 33 -

During the prior year, the company issued a total of 30,522 Ordinary B shares with a nominal value of £0.001 at the year end for a total consideration of £30.53.

25
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
100,299
232,607
-
-
Between two and five years
77,799
336,384
-
-
In over five years
11,732
30,792
-
-
189,830
599,783
-
-

The Company had no commitments under operating leases in either the current or prior year.

26
Related party transactions

Brookside Equity Partners LLC

The directors of Cash Management Solutions Limited are also directors of Brookside Equity Partners LLC, an entity incorporated in the United States. A management fee is payable to Brookside Equity Partners LLC for director services. The amount accrued in the current year was £159,784 (2022: £20,735). The accumulated management charge payable to Brookside Equity Partners LLC was £348,290 as at the year end (2022: £226,150).

 

Key management personnel

Key management personnel are considered to be the senior management and statutory directors who sit on the board of group. Key management personnel, other than the statutory directors as disclosed in note 8, received remuneration of £254,444 (2022: £227,530).

 

Other

The company has taken advantage of exemptions under FRS 102 which mean that transactions between wholly-owned group companies do not have to be disclosed.

CASH MANAGEMENT SOLUTIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 34 -
27
Cash generated from/(absorbed by) group operations
2023
2022
£
£
Profit for the year after tax
893,799
196,361
Adjustments for:
Taxation charged/(credited)
210,330
(295,541)
Finance costs
54,006
82,168
Amortisation and impairment of intangible assets
118,897
676,686
Depreciation and impairment of tangible fixed assets
50,366
61,245
Foreign exchange gains on cash equivalents
157
(471)
Movements in working capital:
Decrease in stocks
423,430
147,464
(Increase)/decrease in debtors
(2,319,330)
559,720
Increase/(decrease) in creditors
2,288,413
(1,618,027)
Cash generated from/(absorbed by) operations
1,720,068
(190,395)
28
Analysis of changes in net funds/(debt) - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
1,019,546
789,896
1,809,442
Borrowings excluding overdrafts
(1,949,967)
391,926
(1,558,041)
(930,421)
1,181,822
251,401
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