Company registration number 04014188 (England and Wales)
EFM MANAGEMENT LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
EFM MANAGEMENT LIMITED
COMPANY INFORMATION
Directors
M Llewellyn
A Cartwright
B Silas
Secretary
S Newman
Company number
04014188
Registered office
Ibex House
Baker Street
Weybridge
Surrey
KT13 8AH
Auditor
MGI Midgley Snelling LLP
Ibex House
Baker Street
Weybridge
Surrey
KT13 8AH
EFM MANAGEMENT LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 22
EFM MANAGEMENT LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The company have pleasure in presenting their strategic report for the year ended 31 December 2023. Management aim to present a balanced and comprehensive review of the development and performance of the business during the year and position at year end. The review is consistent with the size and nature of the business and is written in the context of the risks and uncertainties that the company faces.

 

EFM Management Limited is the UK operation for the group whose principal activities are those of logistics consultancy, project freight management, planning, forwarding and storage. The business specialises in complex and high value projects. The EFM group in total has seven offices in four geographical regions being Europe, North America, the Middle East, and Australia and operates globally with a network of approved partners.

Review of the Business

The results of the company for the year are shown in the Profit and Loss Account on page 8.

 

Revenues in 2023 were £14.5m down from £19.3m in 2022. This was due mainly to Music acts not touring during 2023 that had toured the prior year and softening freight rates. Margins increased from 24.2% in 2022 to 25.7% in 2023, which was driven by a margin improvement strategy.

 

The main growth during 2023 was in Events (Up 75%), Theatre (Up 164%). Music was down by 68% due to a major artist touring in 2022, along with Sport down by 32% due to less sporting events during 2023.

Principal Risks and Uncertainties

The company operates in an environment that has a number of operational and financial risks. The key business risks affecting the company are considered to be competition from other businesses within the industry, employee retention and foreign currency risks.

 

The Board is supported by appropriate professional advisors and is well placed to keep abreast of the various operational & financial risks that the company may encounter. In particular:

 

The management team report to the board on competitor activity on an ongoing basis and operational strategy is adapted accordingly at regular meetings, with action being taken to counter the activities of significant competitors as required.

 

Retention of key employees remains a priority for the business with emphasis being placed on consultation and communication with employees. Management regularly monitors industry salary information to ensure that key staff are employed on attractive terms and conditions.

 

The company actively hedges against adverse currency fluctuations by maintaining US Dollar and Euro bank accounts. Management do not presently consider the risk of foreign exchange movements to be significant.

Future Developments and Performance

The company is pushing forward with its growth strategy with a vision to develop sales across its main sectors. With expected growth for the UK operation in non-traditional sectors, such as Exhibitions, the addition of new clients and vertical growth will provide greater resilience for the UK operation. EFM’s prospects for 2024 are positive.

Review of key performance indicators

 

2023

2022

 

£m

£m

Turnover

14.5

19.3

Gross profit margin

26%

24%

Profit/​(loss) before tax

0.6

1.6

Salaries as a percentage of gross profit

79%

79%

 

At the year end, the group had net current assets of £2.8m (2022: £2.7m), including net cash balances of £0.9m (2022: £2.3m). The group is in a stronger financial position, with total net assets of £2.3m (2022: £1.8m) at the year end.

EFM MANAGEMENT LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Other performance indicators

In preparing the financial statements, Management is required to assess the Company's ability to continue to trade as a going concern for the foreseeable future. In undertaking this assessment, Management have given due consideration to the Company's available cash funds and the potential for it to continue to earn significant profits. At the Balance sheet date, the company had net current assets of £2.8m (2022: £2.7m) of which £0.9m (2022: £2.3m) is represented by cash at bank.

 

Management have reviewed the forecasts and cash flow projections for the company. The forecasts show the company continuing to increase its profits and cash reserves.

 

The financial statements do not include the adjustments that would result if the company were unable to continue as a going concern.

Other information

On behalf of the board

M Llewellyn
Director
14 March 2024
EFM MANAGEMENT LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

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

Principal activities

The principal activity of the company continued to be that of project freight management and storage.

Results and dividends

The results for the year are set out on page 8.

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

Directors

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

M Llewellyn
L Moss
(Resigned 26 May 2023)
A Cartwright
B Silas
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 company and of the profit or loss of the company 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 company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

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

Medium-sized companies exemption

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

EFM MANAGEMENT LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
On behalf of the board
M Llewellyn
Director
14 March 2024
EFM MANAGEMENT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF EFM MANAGEMENT LIMITED
- 5 -
Opinion

We have audited the financial statements of EFM Management Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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 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:

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

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

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

Auditor's responsibilities for the audit of the financial statements

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

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

In planning and designing our audit tests, we identify and assess the risks of material misstatements within the financial statements, whether due to fraud or error. Our assessment of these risks includes consideration of the nature of the industry and sector, the control environment and the business performance along with the results of our enquiries of management, about their own identification and assessment of the risks of irregularities. We are also required to perform specific procedures to respond to the risk of management override.

 

As a result of this assessment, we considered the opportunities and incentives that may exist within the company for fraud and identified that the greatest area of risk was in relation to management override, the understatement of trade creditors and completeness of income.

We have obtained an understanding of the legal and regulatory frameworks that the company operates in from discussions with the directors and our knowledge of the company and its industry sector. We have focused on the provisions of those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and local tax legislation.

EFM MANAGEMENT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EFM MANAGEMENT LIMITED
- 7 -

We performed the following audit procedures after consideration of the above risks which included the following:

The engagement partner has assessed that all engagement team members were made aware of the relevant laws and regulations and potential fraud risks and were reminded to remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. The risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

Sarah Squires BEng FCA
Senior Statutory Auditor
For and on behalf of MGI Midgley Snelling LLP
18 March 2024
Chartered Accountants
Statutory Auditor
Ibex House
Baker Street
Weybridge
Surrey
KT13 8AH
EFM MANAGEMENT LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
14,527,756
19,297,987
Cost of sales
(10,796,939)
(14,627,204)
Gross profit
3,730,817
4,670,783
Administrative expenses
(4,446,184)
(4,747,854)
Other operating income
1,359,440
1,726,145
Operating profit
4
644,073
1,649,074
Interest receivable and similar income
7
481
87
Interest payable and similar expenses
8
(71,449)
(42,837)
Profit before taxation
573,105
1,606,324
Tax on profit
9
(124,448)
(281,884)
Profit for the financial year
448,657
1,324,440

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

EFM MANAGEMENT LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
10
91,505
63,803
Current assets
Stocks
11
-
27,584
Debtors
12
4,611,260
4,500,371
Cash at bank and in hand
871,749
2,348,838
5,483,009
6,876,793
Creditors: amounts falling due within one year
13
(2,685,101)
(4,212,648)
Net current assets
2,797,908
2,664,145
Total assets less current liabilities
2,889,413
2,727,948
Creditors: amounts falling due after more than one year
14
(550,000)
(850,000)
Provisions for liabilities
Provisions
17
78,000
64,000
Deferred tax liability
18
4,787
5,979
(82,787)
(69,979)
Net assets
2,256,626
1,807,969
Capital and reserves
Called up share capital
19
54,500
54,500
Profit and loss reserves
2,202,126
1,753,469
Total equity
2,256,626
1,807,969

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

The financial statements were approved by the board of directors and authorised for issue on 14 March 2024 and are signed on its behalf by:
A Cartwright
Director
Company registration number 04014188 (England and Wales)
EFM MANAGEMENT LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2022
54,500
429,029
483,529
Year ended 31 December 2022:
Profit and total comprehensive income
-
1,324,440
1,324,440
Balance at 31 December 2022
54,500
1,753,469
1,807,969
Year ended 31 December 2023:
Profit and total comprehensive income
-
448,657
448,657
Balance at 31 December 2023
54,500
2,202,126
2,256,626
EFM MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
1
Accounting policies
Company information

EFM Management Limited is a private company limited by shares incorporated in England and Wales. The registered office is Ibex House, Baker Street, Weybridge, Surrey, KT13 8AH.

 

The principal place of business is Unit 3, Alpha Way, Thorpe Industrial Park, Egham, Surrey, TW20 8RZ.

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.

This 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:

 

 

The financial statements of the company are consolidated in the financial statements of EFM Global Holdings Limited.These consolidated financial statements are available from its registered office, Ibex House, Baker Street, Weybridge, Surrey, KT13 8AH.

1.2
Going concern

The financial statements have been prepared on a going concern basis. The directors, from review of the current reserves and available cash funds, consider it appropriate to prepare the financial statements on a going concern basis.

 

The directors have considered forecasts for the next 12 months from the date of signing the accounts, and believe the company will continue to be profitable. Therefore the accounts have been prepared on a going concern basis.

1.3
Turnover

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

Other income consists of management charges invoiced to group entities to re-charge its share of group costs.

EFM MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold improvements
20% on cost
Plant and machinery etc
20% - 33% on cost
Office and computer equipment
33% on cost
Motor vehicles
33% on cost

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

1.5
Stocks

Work in progress is valued at the lower of cost and estimated selling price less costs to complete.

 

Cost includes direct expenditure only.

1.6
Cash at bank and in hand

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

1.7
Financial instruments

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

 

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

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability 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.

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.

EFM MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.8
Equity instruments

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

1.9
Taxation

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

Current tax

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

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.10
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company 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.

1.11
Employee benefits

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

 

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

 

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

1.12
Retirement benefits

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

EFM MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.13
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 leases asset are consumed.

1.14
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the profit and loss account for the period.

2
Judgements and key sources of estimation uncertainty

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

 

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

Critical judgements

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

Recoverability of debtors

Management applies judgement in evaluating the recoverability of debtors. This judgement is based on the ageing profile of debtors and historical experience. To the extent that the directors believe debtors not to be recoverable they have been provided for in the financial statements.

Key sources of estimation uncertainty

There are no key sources of estimation uncertainty on the amounts recognised in the financial statements.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Freight and handling
13,560,962
17,998,140
Other trading income
930,155
729,945
Warehouse and storage
36,639
569,902
14,527,756
19,297,987
EFM MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Turnover and other revenue
(Continued)
- 15 -
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
7,569,570
5,781,407
United States of America
2,744,120
4,766,683
Asia
376,586
2,156,504
Australia
1,793,421
631,558
Europe
2,044,059
5,961,835
14,527,756
19,297,987
2023
2022
£
£
Other revenue
Interest income
481
87
Management charge income
1,359,440
1,726,145
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
79,013
(157,059)
Fees payable to the company's auditor for the audit of the company's financial statements
13,500
13,500
Depreciation of owned tangible fixed assets
34,248
29,757
Profit on disposal of tangible fixed assets
(11,225)
(8,868)
Operating lease charges
269,877
278,655
5
Employees

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

2023
2022
Number
Number
36
32
EFM MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
5
Employees
(Continued)
- 16 -

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
2,537,011
3,199,279
Social security costs
320,111
410,314
Pension costs
105,726
91,500
2,962,848
3,701,093
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
841,268
1,584,919
Company pension contributions to defined contribution schemes
32,619
35,469
873,887
1,620,388

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022 - 3).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
420,463
419,959
Company pension contributions to defined contribution schemes
14,792
-
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
481
87
8
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
71,449
42,837
EFM MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
128,697
274,549
Adjustments in respect of prior periods
(3,057)
-
0
Total current tax
125,640
274,549
Deferred tax
Origination and reversal of timing differences
(1,192)
7,335
Total tax charge
124,448
281,884

The effective tax rate for the 3 months up to 31 March 2023 was 19.00%. From 1 April 2023, the corporation tax rate changed from 19.00% to 25.00%, which covered the remainder of the period, being 9 months.

 

Therefore the effective corporation tax charge based on 3 months at 19.00%, and 9 months at 25.00% will be 23.52% for the financial reporting period.

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

2023
2022
£
£
Profit before taxation
573,105
1,606,324
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
134,794
305,202
Tax effect of expenses that are not deductible in determining taxable profit
4,538
13,101
Adjustments in respect of prior years
(3,057)
-
0
Group relief
(14,726)
(34,820)
Permanent capital allowances in excess of depreciation
321
(3,090)
Deferred tax adjustments in respect of prior years
2,815
(354)
Remeasurement of deferred tax for changes in tax rates
(237)
1,845
Taxation charge for the year
124,448
281,884
EFM MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
10
Tangible fixed assets
Leasehold improvements
Plant and machinery etc
Office and computer equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
243,729
125,645
81,078
14,400
464,852
Additions
-
0
59,913
12,563
-
0
72,476
Disposals
-
0
-
0
(1,149)
(14,400)
(15,549)
At 31 December 2023
243,729
185,558
92,492
-
0
521,779
Depreciation and impairment
At 1 January 2023
238,524
111,150
50,975
400
401,049
Depreciation charged in the year
1,059
14,556
14,233
4,400
34,248
Eliminated in respect of disposals
-
0
-
0
(223)
(4,800)
(5,023)
At 31 December 2023
239,583
125,706
64,985
-
0
430,274
Carrying amount
At 31 December 2023
4,146
59,852
27,507
-
0
91,505
At 31 December 2022
5,205
14,495
30,103
14,000
63,803
11
Stocks
2023
2022
£
£
Work in progress
-
27,584
12
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,951,541
2,007,394
Amounts owed by parent company
2,034,393
1,512,978
Amounts owed by group undertakings
218,556
583,615
Other debtors
106,917
50,262
Prepayments and accrued income
299,853
346,122
4,611,260
4,500,371

Amounts owed by group undertakings include amounts that are considered to be interest free, held on behalf of the company and repayable on demand or within normal trading terms, typically less than 3 months.

 

Amounts owed by parent undertakings include amounts that are considered to be interest free, held on behalf of the company and repayable on demand.

EFM MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
13
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
15
300,000
300,000
Trade creditors
1,202,729
1,757,351
Amounts owed to group undertakings
87,944
77,817
Corporation tax
400,189
274,549
Other taxation and social security
92,222
78,688
Deferred income
18,482
45,346
Other creditors
18,721
17,208
Accruals
564,814
1,661,689
2,685,101
4,212,648

Amounts owed to group undertakings include amounts that are considered to be amounts loaned to the company, interest free, unsecured and considered repayable on demand or within normal trading terms, typically less than 3 months.

14
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
15
550,000
850,000
15
Loans and overdrafts
2023
2022
£
£
Bank loans
850,000
1,150,000
Payable within one year
300,000
300,000
Payable after one year
550,000
850,000

The bank loan held by the company of £850,000 is secured by a fixed charge over the company's assets, and a floating charge over all property that is not covered by the fixed charge.

 

The bank loan, and any other liabilities due in relation to the loan provider have also been guaranteed for £1,650,000 by the parent company.

 

The loan has interest accruing at 2.19% over base rate.

 

16
Retirement benefit schemes

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. Contributions amounting to £8,172 (2022: £8,399) were outstanding at the year and included in other creditors.

EFM MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
17
Provisions for liabilities
2023
2022
£
£
Dilapidation provision
78,000
64,000
Movements on provisions:
Dilapidation provision
£
At 1 January 2023
64,000
Additional provisions in the year
14,000
At 31 December 2023
78,000

The dilapidation provision has been included to account for the estimated costs associated with restoring the premises to the condition required in accordance with the lease agreement. The lease has been extended, therefore the costs are due to be incurred in 2027.

18
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
4,787
5,979
2023
Movements in the year:
£
Liability at 1 January 2023
5,979
Credit to profit or loss
(1,192)
Liability at 31 December 2023
4,787

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

19
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
54,500
54,500
54,500
54,500
EFM MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
20
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
256,761
251,521
Between two and five years
549,423
775,944
In over five years
504
-
0
806,688
1,027,465
21
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Sales
Sales
Purchases
Purchases
2023
2022
2023
2022
£
£
£
£
Fellow group undertakings
2,515,043
3,469,087
2,412,275
4,119,259
Management charge income
2023
2022
£
£
Fellow group undertakings
1,359,440
1,726,145

The following amounts were outstanding at the reporting end date:

2023
2022
Amounts due to related parties
£
£
Fellow group undertakings
87,944
77,817

The following amounts were outstanding at the reporting end date:

2023
2022
Amounts due from related parties
£
£
Entities with control, joint control or significant influence over the company
2,034,393
1,512,978
Fellow group undertakings
218,556
583,614
EFM MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
22
Ultimate controlling party

The ultimate parent company is EFM Global Holdings Limited, a company incorporated in England and Wales of which EFM Management Ltd is part of the smallest and largest group. Its registered office is the same as EFM Management Ltd and they prepare consolidated financial statements.

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