Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2023
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VICTORIA HOLDINGS LIMITED
COMPANY INFORMATION
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VICTORIA HOLDINGS LIMITED
CONTENTS
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VICTORIA HOLDINGS LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
The Covid-19 pandemic continued to impact the Group and its end markets during the financial year. North America markets were fully open and showed solid growth in the year. The Company maintained tight control over its operating overheads and headcount through the financial year and avoided any one-off restructuring costs (2022 - £Nil).
The Group made a loss before tax for the year of £286,399 (2022 - £121,151). The loss before tax includes the amortisation of intangible assets of £2,607,141 in 2023 (2022 - £2,708,311). On 31 December 2020, the United Kingdom left the European Union (EU). The Company was well prepared in its assessment and preparation for the impact of leaving the EU. As a result, the overall impact to the Company during the financial year has been low. The Company continues to monitor the impact of the trading arrangements with the EU, as they evolve, to ensure that there is minimal impact for its customers and within the supply chain.
The Group is exposed to a variety of risks. These could range from the wider effects of the general economy and external competition to those more specific to the Group, such as its own financial strength, size and exposure to foreign exchange risk as a result of borrowing in foreign currencies. The Board regularly review these risks and their potential impact on the Group.
The Board monitors the Group's performance through the use of regular financial information and management reports. The Board focuses on the Group's levels of profitability, liquidity and the management of foreign exchange risk, together with Balance Sheet strength. Competitive risks While there is no clear competitor for the range of products that the Group offers to its clients, as a result of more consolidation in the industry, this may result in a more a formidable competitor. While extensive corporate and product regulatory requirements in some markets can result in products taking a reasonable time period to market, this is also seen as a effective barrier to entry for new companies entering the market. Liquidity risk Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. The Group aims to mitigate liquidity risk by managing cash generation of its operations. The Group also manages liquidity risk via overdraft, revolving credit facilities and both longer term and shorter term debt from related parties. Currency risk Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates.
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VICTORIA HOLDINGS LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
Turnover has increased 14.9% to £39,354,175 (2022 - £34,241,958). The increase in turnover was largely down to the improvement in the markets in sale of goods, as the prior year was impacted in part by markets not being fully open due to Covid-19. Sale of goods improved by 17.2% over 2023, with Service and Rental income showing a 7.4% increase.
Distribution costs have increased by 14.7% to £4,304,220 (2022 - £3,754,104), with administration expenses also increasing by 11.2% to £12,215,659 (2022 - £10,982,590). Both increases are driven by the increase in turnover in the year, as well as the impact of inflation within the regions that we operate. The average headcount has increased by 4.4% to 383 (2022 - 367).
The directors are comfortable that the Group has the resources to continue for a period of greater than twelve months while growing and continuing to invest in product development. The continued investment in the York product development facility remains at similar levels to previous years and the pipeline of new products and projects remain encouraging.
In this section 172 statement, pursuant to Section 172(1) (a) to (f) of the Companies Act 2006, and which forms a part of the Strategic Report, the Directors of Victoria Holdings Limited report on the decisions taken, in good faith, to promote the success of the Group (for the benefit of its members as a whole) whilst at the same time taking into account the long term impacts of those decisions and their impact on the myriad stakeholders of the Group.
The Directors continue to make decisions that benefit the long-term sustainability and growth of the Group. This includes strategic investments in our core business and exploring new market opportunities.
We have engaged with our key stakeholders including employees, customers, suppliers, and local communities. Their feedback has been invaluable in shaping our business strategy and operations.
The Group is committed to minimizing its environmental impact and making a positive contribution to the community. We have implemented various initiatives to reduce our carbon footprint and support local community projects.
We strive to uphold the highest standards of conduct to maintain our reputation. We have robust policies in place to ensure compliance with legal requirements and ethical standards. We are committed to acting fairly between members of the company. We have ensured equitable treatment of all our shareholders.
Our employees are our most valuable asset. We have invested in their development and welfare, and we maintain an open dialogue with them through regular communication and feedback channels. We continue to invest in training, education and development of our people throughout the organisation.
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VICTORIA HOLDINGS LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
The Group gives full consideration to applications for employment from disabled persons where the requirements of the job can be adequately fulfilled by a handicapped or disabled person. Where existing employees become disabled, it is the Group policy wherever applicable to provide training, career development and promotion wherever applicable.
The Group has policies in place to set and maintain high standards of conduct, including a code of conduct, anti corruption, anti-money laundering and to promote health and safety. We use this as part of our reasonable steps for prevention and detection of fraud as referenced in the Directors’ report.
The directors confirm that they have complied with the duty to act in accordance with Section 172 to the best of their knowledge and belief.
During the year, the Group used 478,881 kWh (2022 – 488,239 kWh) of gas and 487,270 kWh (2022 – 435,241 kWh) of electricity at their premises in the UK. The Group does not use metrics to monitor the energy usage and no specific energy saving measures were taken during the year, but the directors are assessing the impact of employees working from home and whether this may reduce the long-term energy usage of the Group. Although the Group does not use metrics, an intensity ratio could be calculated based on tonnes of CO2e per total £m sales revenue.
This report was approved by the board on 28 March 2024 and signed on its behalf.
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VICTORIA HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
The directors present their report and the financial statements for the year ended 31 December 2023.
The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgments 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 Group 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The principal activities of the Group are that of manufacturing and marketing of casino and leisure equipment, the sale and rental of casino related equipment and the provision of servicing facilities.
The profit for the year, after taxation, amounted to £1,446,776 (2022 - £82,031).
No dividend is recommended for the current year (2022 - £Nil).
The directors who served during the year were:
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VICTORIA HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
The directors believe that the Company remains in a strong position to capitalise from future opportunities at a global level. The Company is launching new products and these products have been submitted for approval in a number of regulated markets globally. The products are expected to have a positive impact on the future performance of the Company.
The Group’s principal financial instruments comprise bank balances, loans from connected companies, trade debtors and trade creditors. The main purposes of these instruments is to raise funds for and to finance the Group’s operations.
The Group continues to invest in research and development of existing and new products.
Our employees continue to be essential to our future success and we continue to invest in training, education and development of our people throughout the organisation.
The Business Review is covered in the Strategic Report.
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VICTORIA HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
The auditors, Ecovis Wingrave Yeats LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on
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VICTORIA HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF VICTORIA HOLDINGS LIMITED
We have audited the financial statements of Victoria Holdings Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2023, which comprise the Consolidated statement of comprehensive income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standardand 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.
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 or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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VICTORIA HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF VICTORIA HOLDINGS LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Directors' report.
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VICTORIA HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF VICTORIA HOLDINGS LIMITED (CONTINUED)
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 Auditors' 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 Group 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:
∙We considered our general commercial and sector experience and held a discussion with the Directors and other management personnel to identify laws and regulations that could reasonably be expected to have a material effect on the financial statements.
∙We determined that the laws and regulations which are directly relevant to the financial statements are those that relate to the reporting framework Financial Reporting Standard 102 and the relevant tax compliance regulations in the jurisdictions in which the Company and Group operates. We evaluated the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
∙In addition, there are other significant laws and regulations which may have an effect on the determination of the amounts and disclosures in the financial statements being those laws and regulations relating to gambling authorities in the markets in which the Company and Group operates, environmental, occupational health and safety, employment law, data protection regulation, fraud, bribery and corruption. For these laws and regulations, the consequences of non compliance could have a material effect on amounts or disclosures in the financial statements, for instance through withdrawal of trading licences or regulatory approval of products, fines or litigation being imposed. As required by the auditing standards, auditing procedures in respect of non compliance with these identified laws and regulations are limited to enquiry of the Directors and other management and inspection of regulatory and legal correspondence, if any. Potential non compliance with gambling authority regulations was identified as a key audit risk given its significance to our audit.
∙We assessed the susceptibility of the Company and Group's financial statements to material misstatement, including how fraud might occur, by meeting with a number of individuals, including with individuals outside of the finance function, and conducted interviews to understand where they considered there was susceptibility to fraud. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to areas of estimate and judgement in the financial statements specifically the assessment of stock provisioning and assessment of impairment of intangible assets
∙Based on this understanding we designed our audit procedures to identify non compliance with such laws and regulations and fraud risks identified in the paragraphs above. In addition to the audit procedures, we remained alert to any indications of non compliance throughout the audit. The specific audit procedures performed included:
°Review of Board minutes;
°Review of correspondence with regulatory bodies;
°Review of large and unusual bank transactions;
°Challenging assumptions and judgements made by management in its significant accounting estimates, in particular in relation to the stock provisioning and assessment of impairment of intangible assets;
°Walkthrough tests on the key accounting systems and identification and testing of the key controls;
°Enquiries of staff as to examples of management override of controls;
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VICTORIA HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF VICTORIA HOLDINGS LIMITED (CONTINUED)
°Conversations with management and key staff responsible for compliance and review of legal fees incurred by the Company and Group.
°Identification of related parties including close family members and analytics on the Company and
°Group's data to ensure that all related party transactions have been identified and are bona fide;
°Identifying and testing journal entries.
There are inherent limitations of an audit. There is a higher risk that irregularities, including fraud, will not be detected during the audit as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. The primary responsibility for the prevention and detection of non compliance with all laws and regulations and fraud lies with both those charged with governance of the entity and management.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' 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 Auditors' 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.
for and on behalf of
Chartered Accountants & Statutory Auditor
3rd Floor, Waverley House
London
W1F 8GQ
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VICTORIA HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
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VICTORIA HOLDINGS LIMITED
REGISTERED NUMBER: 02878118
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 28 March 2024.
The notes on pages 19 to 45 form part of these financial statements.
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VICTORIA HOLDINGS LIMITED
REGISTERED NUMBER: 02878118
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 19 to 45 form part of these financial statements.
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VICTORIA HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
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VICTORIA HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
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VICTORIA HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
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VICTORIA HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
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VICTORIA HOLDINGS LIMITED
CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023
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VICTORIA HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Victoria Holdings Limited is a private company, limited by shares, domiciled in England and Wales, registration number 02878118. The registered office is Festival Trade Park, Unit 6, Crown Road, Stoke on Trent, Staffordshire, ST1 5NJ.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.
The following principal accounting policies have been applied:
The Group's business activities, together with the factors likely to affect its future development, performance and position are set out in the Business Review on page 1 of the financial statements.
The Group meets its day to day working capital requirements through loan and overdraft facilities. The Directors have received confirmation from the ultimate parent company, Belgravia Invest AB that they will continue to support the Group for a period of at least 12 months from the approval of the financial statements. As a result, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements.
The consolidated financial statements present the results of the Group and its own subsidiaries ("the Group") as if they formed a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.
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VICTORIA HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Rental and service revenue is recognised initially as deferred income and released over the life of the rental contract in line with the terms of the contract. Revenue in respect to bespoke contracts is recognised on a straight line basis over the deemed contract period. If the contract is loss making then the full loss will be recognised immediately.
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VICTORIA HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Goodwill
Intangible fixed assets and amortisation
At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
Other intangible fixed assets
Capitalised development costs are being amortised over a period of five years based on the period over which the development costs are expected to generate revenue. Patents and licenses are amortised over a period of five years. Goodwill Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Statement of Comprehensive Income over its useful economic life of 10 years.
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VICTORIA HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the Group. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the Profit and Loss Account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.
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VICTORIA HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rates of exchange ruling at the balance sheet date.
Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange gains and losses are recognised in the Profit and Loss Account. The results and financial position of all group entities that have a functional currency different from the presentation currency are translated into the presentation currency as follows:
∙Assets and liabilities for each balance sheet presented are translated at the closing rate of the Balance Sheet;
∙Income and expenses for each Profit and Loss Account are translated at average exchange rates for the year; and
∙All resulting exchange differences are recognised in the Statement of Comprehensive income.
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VICTORIA HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.
The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.
Investments in non-derivative instruments that are equity to the issuer are measured:
∙at fair value with changes recognised in the Consolidated statement of comprehensive income if the shares are publicly traded or their fair value can otherwise be measured reliably;
∙at cost less impairment for all other investments.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Consolidated statement of comprehensive income.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Group would receive for the asset if it were to be sold at the balance sheet date.
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VICTORIA HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Where assets leased to a third party give rights approximating to ownership (finance lease), the lessor recognises as a receivable an amount equal to the net investment in the lease i.e. the minimum lease payments receivable under the lease discounted at the interest rate implicit in the lease. This receivable is reduced as the lessee make capital payments over the term of the lease.
A finance lease gives rise to two types of income: profit or loss equivalent to the profit or loss resulting from the outright sale of the asset being leased, at a normal selling price, reflecting any applicable discounts, and finance income over the lease term.
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VICTORIA HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
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VICTORIA HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Capitalisation of intangible fixed assets The recognition of costs as an intangible fixed asset involves the use of judgement with respect to whether the costs meet the required criteria to allow capitalisation. This involves assessing whether projects are technically feasible and viable. It also requires an assessment to be made as to the recoverability of the net book value of the asset at the balance sheet date. Depreciation and amortisation Fixed assets are depreciated over their useful lives taking into account residual values where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values. Impairment of tangible and intangible fixed assets Determine whether there are indicators of impairment of the Group's tangible and intangible fixed assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit. Stock provision It is necessary to consider the recoverability of the cost of inventory and the associated provisioning required. When calculating the stock provision, management considers the nature and condition of stock, as well as applying assumptions around anticipated saleability of finished goods and future usage of raw materials. Leases Determine whether leases entered into by the Group either as a lessor or lessee are operating leases or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis. Impairment of investments The Company holds an investment of £4,000,371 in its subsidiaries. The directors do not consider this investment to be impaired, despite some of the subsidiaries currently being loss making. The directors believe that the subsidiaries will generate profits in the future. Deferred tax Management is required to assess whether it is appropriate to recognise a deferred tax asset relating to taxable losses available to the Group. The recognition of deferred tax assets are based on whether it is more likely than not that sufficient and suitable taxable profits will be available in the future against which the reversal of losses and other deductions can be utilised. To determine the future taxable profits, reference is made to the latest available forecasts. Therefore, this involves judgement regarding the future financial performance of the Group to justify where a deferred tax asset has been recognised. Tax credits The Group receives annual tax credits in relation to their R&D expenditure. Management use judgement to determine what the qualifying spend on research and development has been during the year.
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VICTORIA HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Analysis of turnover by country of destination:
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements. The loss after tax of the parent Company for the year was £
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VICTORIA HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 29
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VICTORIA HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 30
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VICTORIA HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 31
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VICTORIA HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 32
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VICTORIA HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
13.Taxation (continued)
There were no factors that may affect future tax charges.
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VICTORIA HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 34
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VICTORIA HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
14.Intangible assets (continued)
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VICTORIA HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 36
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VICTORIA HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 37
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VICTORIA HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Subsidiary undertakings (continued)
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VICTORIA HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 39
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VICTORIA HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 40
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VICTORIA HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 41
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VICTORIA HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 42
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VICTORIA HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
22.Loans (continued)
Page 43
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VICTORIA HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
The bank overdrafts are secured by way of a fixed and floating charge over all of the assets of Victoria Holdings Limited, TCS John Huxley Europe Limited and TCS John Huxley Limited.
The Group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £451,577 (2022 - £424,231). Contributions totalling £Nil (2022 - £Nil) were payable to the fund at the balance sheet date and are included in creditors.
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VICTORIA HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
The amounts owed to directors at the year end were £
The ultimate parent company is
Page 45
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