Company Registration No. 03974006 (England and Wales)
Cambridge Office Environments Ltd
Annual report and financial statements
for the year ended 31 December 2023
Cambridge Office Environments Ltd
Company information
Directors
A G Rumbelow
D J Williams
J Overhill
H J D Daniels
(Appointed 19 October 2023)
Company number
03974006
Registered office
Suite D South Cambridge Business Park
Babraham Road
Sawston
Cambridgeshire
CB22 3JH
Independent auditor
Saffery LLP
Westpoint
Peterborough Business Park
Lynch Wood
Peterborough
PE2 6FZ
Business address
11 Nuffield Road
Chesterton
Cambridge
Cambridgeshire
CB4 1TF
Cambridge Office Environments Ltd
Contents
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Statement of comprehensive income
9
Statement of financial position
10
Statement of changes in equity
11
Notes to the financial statements
12 - 22
Cambridge Office Environments Ltd
Strategic report
For the year ended 31 December 2023
1
The directors present the strategic report for the year ended 31 December 2023.
Principal activities
The principal activity of the Company is the design, fit out and refurbishment of commercial premises. The Directors do not expect this to change in the foreseeable future.
Review of the business
The business encountered tough trading conditions in 2023, as a result of market uncertainty created by higher inflation, UK political factors, and the impact of the war in Ukraine. Despite those factors, the business was able to deliver a strong operating performance, with a healthy order book and pipeline for 2024.
Turnover for the 12 month period was £16,224k maintaining an average monthly revenue run rate of £1,352k (2022: £1,787k).
The three-year trading history of the company is stated below:
The Directors are committed to continue operational improvement so that the Company is well placed to deliver revenue and profit growth. The Company has and will continue to invest in strategic areas to help achieve the company’s business plan objectives.
Financial position and liquidity
The financial position of the Company is presented in the Balance Sheet. The Company had net assets of £1,074k (2022: £1,392k ), including cash of £1,171k (2022: £1,925k).
Principal risks and uncertainties
The management of the business and the execution of the Company's strategy are subject to a number of risks. The key business risks and uncertainties affecting the Company are considered to relate to the market and economic environment, health and safety of employees and suppliers as well as competition in the market place.
Key performance indicators
The Company uses the key performance indicators as disclosed in the Business Review within the Strategic Report on Page 1.
Financial risk management objectives and policies
The Company's operations expose it to a variety of financial risks that include credit risk, liquidity risk, and price risk.
Credit risk
With regard to credit risk the Company has implemented policies that require appropriate credit checks on potential customers before contracts are commenced.
Liquidity risk
This is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company aims to manage liquidity by ensuring that it will always have sufficient resources to meet its liabilities when they fall due, under both normal and stress conditions, without incurring unacceptable losses or risking damage to the Company’s reputation. Liquidity is provided through cash balances and cash reserves.
Cambridge Office Environments Ltd
Strategic report (continued)
For the year ended 31 December 2023
2
Price risk
The Company has limited exposure to commodity price risk as a result of its operations. This risk is managed on a project-by-project basis by limited forward buying of certain commodities and by negotiating annual purchase agreements with key suppliers. The directors will revisit the appropriateness of this policy should the Company's operations change in size or nature.
D J Williams
Director
13 September 2024
Cambridge Office Environments Ltd
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.
Results and dividends
The results for the year are set out on page 9.
Ordinary dividends were paid amounting to £763,062. 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:
A G Rumbelow
D J Williams
D A Powell
(Resigned 19 July 2024)
J Overhill
B J Clark
(Resigned 2 June 2023)
H J D Daniels
(Appointed 19 October 2023)
Auditor
The auditor, Saffery LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
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:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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.
Cambridge Office Environments Ltd
Directors' report (continued)
For the year ended 31 December 2023
4
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
D J Williams
Director
13 September 2024
Cambridge Office Environments Ltd
Independent auditor's report
To the members of Cambridge Office Environments Ltd
5
Opinion
We have audited the financial statements of Cambridge Office Environments Ltd (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the statement of financial position, 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:
give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the 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.
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.
Cambridge Office Environments Ltd
Independent auditor's report (continued)
To the members of Cambridge Office Environments Ltd
6
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the 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:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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.
Cambridge Office Environments Ltd
Independent auditor's report (continued)
To the members of Cambridge Office Environments Ltd
7
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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.
Identifying and assessing risks related to irregularities:
We assessed the susceptibility of the company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the company by discussions with directors and by updating our understanding of the sector in which the company operates.
Laws and regulations of direct significance in the context of the company include The Companies Act 2006 and UK Tax legislation.
Audit response to risks identified
We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.
During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
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.
Cambridge Office Environments Ltd
Independent auditor's report (continued)
To the members of Cambridge Office Environments Ltd
8
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.
Ross Lomas
Senior Statutory Auditor
For and on behalf of Saffery LLP
13 September 2024
Chartered Accountants
Statutory Auditors
Westpoint
Peterborough Business Park
Lynch Wood
Peterborough
PE2 6FZ
Cambridge Office Environments Ltd
Statement of comprehensive income
For the year ended 31 December 2023
9
2023
2022
Notes
£
£
Turnover
3
16,224,379
21,447,396
Cost of sales
(13,236,188)
(18,123,553)
Gross profit
2,988,191
3,323,843
Administrative expenses
(4,065,666)
(3,223,197)
Other operating income
1,720,348
463,897
Operating profit
4
642,873
564,543
Interest receivable and similar income
9,508
1,571
Interest payable and similar expenses
(21)
Profit before taxation
652,360
566,114
Tax on profit
7
(206,386)
(90,269)
Profit for the financial year
445,974
475,845
The income statement has been prepared on the basis that all operations are continuing operations.
Cambridge Office Environments Ltd
Statement of financial position
As at 31 December 2023
10
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
10
12,128
9,928
Investments
11
137,323
137,323
149,451
147,251
Current assets
Stocks
13
44,674
-
Debtors falling due after more than one year
14
750,000
750,000
Debtors falling due within one year
14
6,496,027
5,540,693
Cash at bank and in hand
1,170,968
1,924,709
8,461,669
8,215,402
Creditors: amounts falling due within one year
15
(7,549,233)
(7,006,241)
Net current assets
912,436
1,209,161
Total assets less current liabilities
1,061,887
1,356,412
Provisions for liabilities
Deferred tax liability
16
(12,559)
(35,122)
12,559
35,122
Net assets
1,074,446
1,391,534
Capital and reserves
Called up share capital
18
980
980
Capital redemption reserve
20
20
Profit and loss reserves
1,073,446
1,390,534
Total equity
1,074,446
1,391,534
The financial statements were approved by the board of directors and authorised for issue on 13 September 2024 and are signed on its behalf by:
D J Williams
Director
Company Registration No. 03974006
Cambridge Office Environments Ltd
Statement of changes in equity
For the year ended 31 December 2023
11
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
980
20
2,914,689
2,915,689
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
475,845
475,845
Dividends
8
-
-
(2,000,000)
(2,000,000)
Balance at 31 December 2022
980
20
1,390,534
1,391,534
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
445,974
445,974
Dividends
8
-
-
(763,062)
(763,062)
Balance at 31 December 2023
980
20
1,073,446
1,074,446
Cambridge Office Environments Ltd
Notes to the financial statements
For the year ended 31 December 2023
12
1
Accounting policies
Company information
Cambridge Office Environments Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Suite D South Cambridge Business Park, Babraham Road, Sawston, Cambridgeshire, CB22 3JH.
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 has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.
Cambridge Office Environments Ltd is a wholly owned subsidiary of COEL Group Limited and the results of Cambridge Office Environments Ltd are included in the consolidated financial statements of COEL Business Group Limited which are available from Companies House.
1.2
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that thetrue
company has adequate resources to continue in operational existence for the foreseeable future. Thus the
directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Sale of goods
Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Cambridge Office Environments Ltd
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
13
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably;
the costs incurred and the costs to complete the contract can be measured reliably.
Treatment and recognition of retentions
Retentions are recognised as revenue at the point of Practical Completion as per the PC certificate.
1.4
Intangible fixed assets - goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 2002, has been fully amortised over its estimated useful life of ten years.
1.5
Intangible fixed assets other than goodwill
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
Computer software is being amortised evenly over its estimated useful life of five years.
1.6
Tangible fixed assets
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and
any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to
bringing the asset to the location and condition necessary for it to be capable of operating in the manner
intended by management.
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 on the following basis:
Plant and equipment
25% per annum
Fixtures and fittings
25% per annum
Computers
25% per annum
Motor vehicles
25% per annum
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 the Statement of comprehensive income.
1.7
Fixed asset investments
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 company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
Cambridge Office Environments Ltd
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
14
1.8
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.
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.
1.9
Cash and cash equivalents
Cash and cash equivalents in the balance sheet comprise cash at banks and in hand and short term deposits
with an original maturity date of three months or less. For the purpose of the consolidated cash flow
statement, cash and cash equivalents consist of cash and cash equivalents as defined above, net of
outstanding bank overdrafts.
1.10
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 statement of financial position 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, 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.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
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.
Cambridge Office Environments Ltd
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
15
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.11
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.
1.12
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive
income or directly in equity.
Current or deferred taxation assets and liabilities are not discounted.
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the
balance sheet date.
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different
from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that
they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
1.13
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.
A liability is recognised to the extent of any unused holiday pay entitlement which has accrued at the balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the balance sheet date.
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.
1.14
Retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.
Cambridge Office Environments Ltd
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
16
1.15
Leases
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those
held under hire purchase contracts are depreciated over their estimated useful lives. Those held under
finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.
The interest element of these obligations is charged to profit or loss over the relevant period. The capital
element of the future payments is treated as a liability.
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of
the lease.
2
Critical accounting 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.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Accruals for contracts
Calculating the value of revenue and project costs to be accrued against long term contracts requires
estimation as to the stage of completion of each project, from which these balances are determined. This
stage of completion may be derived from valuation reports provided by quantitative surveyors employed
either directly by the Company or engaged by the Company's customers. In other cases the professional judgement of management is used.
Amounts recoverable on long term contracts of £1,618,482 (2022: £1,849,358) are recognised under short
term debtors and project cost accruals of £1,928,920 (2022: £2,192,922) are recognised under short term
creditors.
3
Turnover and other revenue
The turnover and profit before taxation are attributable to the one principal activity of the company.
All turnover arose within the United Kingdom.
Cambridge Office Environments Ltd
Notes to the financial statements (continued)
For the year ended 31 December 2023
17
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
22,956
21,925
Depreciation of owned tangible fixed assets
10,449
20,747
Depreciation of tangible fixed assets held under finance leases
-
9,947
(Profit)/loss on disposal of tangible fixed assets
(2,300)
1,156
Amortisation of intangible assets
-
35,898
Operating lease charges
147,256
38,153
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Administration
63
48
2023
2022
£
£
Wages and salaries
3,384,581
2,607,482
Social security costs
388,197
320,393
Pension costs
58,679
47,450
3,831,457
2,975,325
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
519,206
430,153
Company pension contributions to defined contribution schemes
19,685
15,067
538,891
445,220
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 5 (2022 - 5).
Cambridge Office Environments Ltd
Notes to the financial statements (continued)
For the year ended 31 December 2023
6
Directors' remuneration (continued)
18
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
125,321
132,223
Company pension contributions to defined contribution schemes
6,000
2,935
7
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
183,823
125,371
Adjustments in respect of prior periods
20
Total current tax
183,823
125,391
Deferred tax
Origination and reversal of timing differences
22,563
(35,122)
Total tax charge
206,386
90,269
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
652,360
566,114
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
153,435
107,562
Tax effect of expenses that are not deductible in determining taxable profit
85,746
9,403
Adjustments in respect of prior years
20
Effect of change in corporation tax rate
1,335
Group relief
8,997
Deferred tax adjustments in respect of prior years
(2,654)
Fixed asset differences
(56)
2
Movement in deferred tax not recognised
(24,064)
Exempt ABGH distributions
(43,071)
Taxation charge for the year
206,386
90,269
Cambridge Office Environments Ltd
Notes to the financial statements (continued)
For the year ended 31 December 2023
19
8
Dividends
2023
2022
£
£
Interim paid
763,062
2,000,000
9
Intangible fixed assets
Goodwill
Software
Total
£
£
£
Cost
At 1 January 2023 and 31 December 2023
15,000
82,843
97,843
Amortisation and impairment
At 1 January 2023 and 31 December 2023
15,000
82,843
97,843
Carrying amount
At 31 December 2023
At 31 December 2022
10
Tangible fixed assets
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
9,461
130,817
146,656
182,054
468,988
Additions
12,649
12,649
Disposals
(29,408)
(29,408)
At 31 December 2023
9,461
130,817
159,305
152,646
452,229
Depreciation and impairment
At 1 January 2023
9,461
130,118
140,313
179,168
459,060
Depreciation charged in the year
699
6,864
2,886
10,449
Eliminated in respect of disposals
(29,408)
(29,408)
At 31 December 2023
9,461
130,817
147,177
152,646
440,101
Carrying amount
At 31 December 2023
12,128
12,128
At 31 December 2022
699
6,343
2,886
9,928
Cambridge Office Environments Ltd
Notes to the financial statements (continued)
For the year ended 31 December 2023
20
11
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
12
137,323
137,323
12
Subsidiaries
Details of the company's subsidiaries at 31 December 2023 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
COEL Plumbing and Mechanical Services Limited
Suite D South Cambridge Business Park,
Babraham Road, Sawston, Cambridgeshire,
United Kingdom, CB2
Ordinary
70
CMS (Cambridge) Limited
Suite D South Cambridge Business Park,
Babraham Road, Sawston, Cambridgeshire,
United Kingdom, CB2
Ordinary
100
13
Stocks
2023
2022
£
£
Raw materials and consumables
44,674
-
14
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,471,604
1,540,871
Gross amounts owed by contract customers
1,618,482
1,849,358
Amounts owed by group undertakings
3,236,695
2,016,465
Other debtors
44,295
44,440
Prepayments and accrued income
124,951
89,559
6,496,027
5,540,693
2023
2022
Amounts falling due after more than one year:
£
£
Amounts owed by group undertakings
750,000
750,000
Total debtors
7,246,027
6,290,693
Amounts owed to group undertakings are unsecured and interest free.
Cambridge Office Environments Ltd
Notes to the financial statements (continued)
For the year ended 31 December 2023
21
15
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
900,632
765,940
Amounts owed to group undertakings
4,185,440
2,800,702
Corporation tax
29,713
135,516
Other taxation and social security
161,811
158,897
VAT
305,560
843,160
Other creditors
37,157
26,604
Directors' loan accounts
-
82,500
Accrued expenses
1,928,920
2,192,922
7,549,233
7,006,241
Amounts owed to group undertakings are unsecured, interest free and repayable on demand.
The company's bankers have fixed and floating charges over the assets of the company.
16
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
(12,559)
(35,122)
2023
Movements in the year:
£
Asset at 1 January 2023
(35,122)
Charge to profit or loss
22,563
Asset at 31 December 2023
(12,559)
17
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
58,679
47,450
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.
Cambridge Office Environments Ltd
Notes to the financial statements (continued)
For the year ended 31 December 2023
22
18
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares A of 0.5p each
98,000
98,000
490
490
Ordinary Shares B of 0.5p each
98,000
98,000
490
490
196,000
196,000
980
980
19
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
119,431
111,486
Between two and five years
299,618
361,944
In over five years
16,162
66,320
435,211
539,750
20
Ultimate controlling party
The immediate parent company is COEL Group Limited. The ultimate parent company is COEL Business Group Limited.
The largest group of undertakings for which group financial statements have been drawn up including the company is that headed by COEL Business Group Limited. Copies of group financial statements can be obtained at Companies House, Cardiff.
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