Company registration number 06793545 (England and Wales)
EFM GLOBAL HOLDINGS LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
EFM GLOBAL HOLDINGS LTD
COMPANY INFORMATION
Directors
M L Llewellyn
D Owen
A Cartwright
Gary Morter
Company number
06793545
Registered office
Ibex House
Baker Street
Weybridge
Surrey
KT13 8AH
Auditor
MGI Midgley Snelling LLP
Ibex House
Baker Street
Weybridge
Surrey
KT13 8AH
Business address
Unit 3
Alpha Way
Thorpe Industrial Park
Egham
Surrey
TW20 8RZ
EFM GLOBAL HOLDINGS LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Group profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10 - 11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 33
EFM GLOBAL HOLDINGS LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors have pleasure in presenting their strategic report for the year ended 31 December 2023. The directors aim to present a balanced and comprehensive review of the development and performance of the groups and company’s business during the year and its position at the 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 group and company faces.

 

EFM Global Holdings Ltd is the holding company of a group of companies 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 group has seven offices in four geographical regions being Europe, North America, the Middle East and Australia; the group however, operates globally with a network of approved partners.

Review of business

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

 

Revenues in 2023 were £36.8m down from to £44.4m in 2022. Margins increased from 28.8% in 2022 to 29.4% in 2023.

 

The main growth during 2023 was in Exhibitions (Up by 41%), Other Special Projects, was down by 66%, and Film Media & Broadcasting down by 47%. Film location work experienced reduced activity due to the Hollywood writers’ strike.

 

The group had its first full year of operations in Belgium and Saudi Arabia which now includes the groups largest storage facility in Riyadh and bought further Minority Shareholdings in the USA to give 100% ownership of EFM USA Inc.

Principal risks and uncertainties

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

 

The Group Board, supported by appropriate professional advisors, is well placed to keep abreast of the various operational & financial risks. In particular:

 

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

 

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

 

The group's principal foreign currency exposure arises from trading with overseas companies and in the foreign currency re-translation of group assets and liabilities denominated in non-Sterling currencies, which leaves the group exposed to currency exchange fluctuations at the balance sheet date.

 

The group actively hedges against adverse currency fluctuations by maintaining US Dollar, Australian Dollar, Dirham and Euro bank accounts. The directors do not presently consider the risk of foreign exchange movements to be significant. However, the value of the group's net assets, when measured in its reporting currency of Sterling, will increase or decrease dependent on the exchange rates prevailing between Sterling, US Dollars, Australian Dollars, Dirhams and Euros.

EFM GLOBAL HOLDINGS LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Developments

The outlook for the group remains positive with growth forecast in our main verticals and a hardening of global freight rates from the 2023 lows.

 

The Directors continue with the growth strategy with a vision to develop sales across EFM’s main sectors and across all its locations, making the Group more robust, and reducing reliance on individual clients, sectors, or geographies. With expected growth in EFM’s core sectors, the addition of new clients and vertical growth will provide greater resilience. EFM’s prospects for 2023 and beyond are exciting.

 

During 2024 we will streamline the corporate structures in the USA and UAE bringing cost savings to future years.

 

The Group will continue to review its geographical and vertical footprint and will make further investments in organic or acquisitive growth that are consistent with its strategic plans.

Key performance indicators

 

2023

2022

 

£m

£m

Turnover

36.8

44.4

Gross profit margin

29%

29%

Profit/(loss) before tax

0.01

3.71

Salaries as a percentage of gross profit

62%

53%

 

At the year end, the group had net current assets of £3.1m (2022: £4.5m), including net cash balances of £3.3m (2022: £7.3m). The groups total net assets were £3.1m (2022: £3.9m) at the year end.

Going concern

In preparing the financial statements the Directors are required to assess the Company's ability to continue to trade as a going concern for the foreseeable future. In undertaking this assessment, the Directors 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 group has net current assets of £3.1m (2022: £4.5m) of which £3.3m (2022: £7.3m) is represented by cash at bank.

 

The Directors have reviewed the groups forecasts and cash flow projections. The forecasts show the group continuing to increase its profits and cash reserves.

 

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

On behalf of the board

M L Llewellyn
Director
14 March 2024
EFM GLOBAL HOLDINGS 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.

 

These financial statements consolidate the accounts of EFM Global Holdings Limited and all of its subsidiary undertakings. The results of subsidiaries acquired or disposed of during the year are included or excluded from the effective date of acquisition or disposal.

Principal activities

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

Results and dividends

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

A dividend of £500,000 (2022: £180,000) was paid during the year ending 31 December 2023.

Directors

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

M L Llewellyn
L Moss
(Resigned 26 May 2023)
D Owen
A Cartwright
Gary Morter
Statement of directors' responsibilities

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

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

 

 

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

Statement of disclosure to auditor

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

EFM GLOBAL HOLDINGS 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
M L Llewellyn
Director
14 March 2024
EFM GLOBAL HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF EFM GLOBAL HOLDINGS LTD
- 5 -
Opinion

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

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

 

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

Responsibilities of directors

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

Auditor's responsibilities for the audit of the financial statements

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

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 and group for fraud and identified that the greatest area of risk was in relation to completeness of income, management override, the understatement of trade creditors and recoverability of debtors.

 

We have obtained an understanding of the legal and regulatory frameworks that the company and group operates in from discussions with the directors and our knowledge of the company and group 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 GLOBAL HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EFM GLOBAL HOLDINGS LTD
- 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 GLOBAL HOLDINGS LTD
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
36,777,671
44,413,988
Cost of sales
(25,965,652)
(31,614,293)
Gross profit
10,812,019
12,799,695
Administrative expenses
(10,726,341)
(9,118,454)
Other operating income
-
75,786
Operating profit
4
85,678
3,757,027
Interest receivable and similar income
8
8,609
2,589
Interest payable and similar expenses
9
(81,001)
(45,035)
Profit before taxation
13,286
3,714,581
Tax on profit
10
(194,387)
(577,653)
(Loss)/profit for the financial year
(181,101)
3,136,928
(Loss)/profit for the financial year is attributable to:
- Owners of the parent company
(284,657)
2,256,597
- Non-controlling interests
103,556
880,331
(181,101)
3,136,928
EFM GLOBAL HOLDINGS LTD
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
£
£
(Loss)/profit for the year
(181,101)
3,136,928
Other comprehensive income
Currency translation (loss)/gain taken to retained earnings
(41,832)
51,294
Total comprehensive income for the year
(222,933)
3,188,222
Total comprehensive income for the year is attributable to:
- Owners of the parent company
(326,489)
2,312,411
- Non-controlling interests
103,556
875,811
(222,933)
3,188,222
EFM GLOBAL HOLDINGS LTD
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
12
736,127
256,378
Tangible assets
13
221,649
164,258
957,776
420,636
Current assets
Stocks
16
233,440
311,014
Debtors
17
6,892,199
7,523,455
Cash at bank and in hand
3,339,161
7,251,689
10,464,800
15,086,158
Creditors: amounts falling due within one year
18
(7,355,214)
(10,557,501)
Net current assets
3,109,586
4,528,657
Total assets less current liabilities
4,067,362
4,949,293
Creditors: amounts falling due after more than one year
19
(598,226)
(887,770)
Provisions for liabilities
Provisions
22
310,183
116,518
Deferred tax liability
23
4,787
5,979
(314,970)
(122,497)
Net assets
3,154,166
3,939,026
Capital and reserves
Called up share capital
25
100,000
100,000
Other reserves
2,170
2,170
Profit and loss reserves
2,594,124
3,420,613
Equity attributable to owners of the parent company
2,696,294
3,522,783
Non-controlling interests
457,872
416,243
3,154,166
3,939,026

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

EFM GLOBAL HOLDINGS LTD
GROUP BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2023
31 December 2023
- 11 -
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:
14 March 2024
M L Llewellyn
A Cartwright
Director
Director
Company registration number 06793545 (England and Wales)
EFM GLOBAL HOLDINGS LTD
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
14
2,318,879
1,664,809
Current assets
Debtors
17
1,450,380
656,390
Cash at bank and in hand
22,624
1,361,561
1,473,004
2,017,951
Creditors: amounts falling due within one year
18
(2,223,322)
(1,819,098)
Net current (liabilities)/assets
(750,318)
198,853
Net assets
1,568,561
1,863,662
Capital and reserves
Called up share capital
25
100,000
100,000
Profit and loss reserves
1,468,561
1,763,662
Total equity
1,568,561
1,863,662

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company's profit for the year was £204,899 (2022: £436,744).

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:
14 March 2024
M L Llewellyn
A Cartwright
Director
Director
Company registration number 06793545 (England and Wales)
EFM GLOBAL HOLDINGS LTD
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Other reserves
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
Balance at 1 January 2022
100,000
2,170
1,288,202
1,390,372
223,744
1,614,116
Year ended 31 December 2022:
Profit for the year
-
-
2,256,597
2,256,597
880,331
3,136,928
Other comprehensive income:
Currency translation differences
-
-
51,294
51,294
-
51,294
Amounts attributable to non-controlling interests
-
-
4,520
4,520
(4,520)
-
Total comprehensive income
-
-
2,312,411
2,312,411
875,811
3,188,222
Dividends
11
-
-
(180,000)
(180,000)
-
(180,000)
Purchase of shares in subsidiary from non-controlling interest
-
-
-
-
(683,312)
(683,312)
Balance at 31 December 2022
100,000
2,170
3,420,613
3,522,783
416,243
3,939,026
Year ended 31 December 2023:
Loss for the year
-
-
(284,657)
(284,657)
103,556
(181,101)
Other comprehensive income:
Currency translation differences
-
-
(41,832)
(41,832)
-
(41,832)
Total comprehensive income
-
-
(326,489)
(326,489)
103,556
(222,933)
Dividends
11
-
-
(500,000)
(500,000)
-
(500,000)
Purchase of shares in subsidiary from non-controlling interest
-
-
-
-
(61,927)
(61,927)
Balance at 31 December 2023
100,000
2,170
2,594,124
2,696,294
457,872
3,154,166
EFM GLOBAL HOLDINGS LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
100,000
1,506,918
1,606,918
Year ended 31 December 2022:
Profit and total comprehensive income
-
436,744
436,744
Dividends
11
-
(180,000)
(180,000)
Balance at 31 December 2022
100,000
1,763,662
1,863,662
Year ended 31 December 2023:
Profit and total comprehensive income
-
204,899
204,899
Dividends
11
-
(500,000)
(500,000)
Balance at 31 December 2023
100,000
1,468,561
1,568,561
EFM GLOBAL HOLDINGS LTD
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
29
(1,893,513)
5,583,741
Interest paid
(81,001)
(45,035)
Income taxes paid
(23,681)
(44,300)
Net cash (outflow)/inflow from operating activities
(1,998,195)
5,494,406
Investing activities
Purchase of tangible fixed assets
(152,428)
(185,992)
Proceeds on disposal of tangible fixed assets
21,751
13,529
Purchase of shares in subsidiary from non-controlling interest
(654,070)
(605,272)
Interest received
8,609
2,589
Net cash used in investing activities
(776,138)
(775,146)
Financing activities
Amounts introduced/(withdrawn) by directors
(353,713)
1,009
Advance/(repayment) of bank loans
(300,000)
(300,000)
Proceeds of finance leases obligations
15,518
38,072
Dividends paid to equity shareholders
(500,000)
(180,000)
Net cash used in financing activities
(1,138,195)
(440,919)
Net (decrease)/increase in cash and cash equivalents
(3,912,528)
4,278,341
Cash and cash equivalents at beginning of year
7,251,689
2,973,348
Cash and cash equivalents at end of year
3,339,161
7,251,689
EFM GLOBAL HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
1
Accounting policies
Company information

EFM Global Holdings Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Ibex House, Baker Street, Weybridge, Surrey, KT13 8AH.

 

The group consists of EFM Global Holdings Ltd and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

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

The consolidated financial statements incorporate those of EFM Global Holdings Ltd and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). If subsidiaries are acquired during the year these are consolidated using the purchase method. Their results are incorporated from the date that control passes.

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

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

 

The Company has taken advantage of the exemption under FRS 102, section 1.12, in not preparing a cashflow statement for the parent company.

1.2
Going concern

In preparing the financial statements the Directors are required to assess the group's ability to continue to trade as a going concern for the foreseeable future. In undertaking this assessment, the Directors have given due consideration to the group's available cash funds. At the Balance sheet date, the group has net current assets of £3.1m (2022: £4.5m) of which £3.3m (2022: £7.3m) relates to cash at bank.

 

The Directors have reviewed the groups forecasts and cash flow projections. The forecasts show the group will return to a profitable position in 2024.

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.

EFM GLOBAL HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.4
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is considered by the directors to be between 5-10 years.

 

Goodwill is tested for impairment annually, and any loss is recognised directly in profit or loss in the statement of comprehensive income.

 

Negative goodwill is recognised when the cost of acquisition is less than the fair value of net assets acquired. Following initial recognition on the statement of financial position, negative goodwill up to the fair value of the non-monetary assets acquired is recognised in profit or loss in the periods in which the non-monetary assets are recovered.

1.5
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 land and buildings
20% on cost
Plant and equipment
20-33% on cost
Computer equipment
33% on cost
Motor vehicles
25-33% 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 recognised in the profit and loss account.

1.6
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

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

1.7
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

EFM GLOBAL HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.8
Stocks and work in progress

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

 

Cost comprises direct expenditure only.

1.9
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.

1.10
Financial instruments

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

 

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

 

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

Basic financial assets

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

Basic financial liabilities

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

 

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

1.11
Equity instruments

Equity instruments issued by the group 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 group.

1.12
Taxation

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

Current tax

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

EFM GLOBAL HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
Deferred tax

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

 

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

1.13
Provisions

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

 

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

1.14
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.

1.15
Retirement benefits

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

1.16
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

EFM GLOBAL HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
1.17
Government grants

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

 

Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.

1.18
Foreign exchange

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

2
Judgements and key sources of estimation uncertainty

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

 

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

Critical judgements

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

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.

Investments

The parent company considers whether investments held in subsidiaries are impaired each year. Where indicators of impairment are identified the carrying value of the investment is compared to the underlying net assets of the subsidiary and expected future performance and provisions are recognised where required.

Key sources of estimation uncertainty
Amortisation of goodwill

The group considers goodwill to have a finite useful life and therefore applies an amortisation rate evenly over its useful life of between 5 and 10 years.

EFM GLOBAL HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by geographical market
United States of America
15,627,313
16,437,085
Middle East
5,706,433
8,277,812
UK and mainland Europe
13,520,010
17,040,049
Australia
1,923,915
2,659,042
36,777,671
44,413,988
2023
2022
£
£
Other revenue
Interest income
8,609
2,589
Grants received
-
69,934
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses/(gains)
245,842
(300,144)
Government grants
-
(69,934)
Depreciation of owned tangible fixed assets
56,898
49,710
Depreciation of tangible fixed assets held under finance leases
24,239
5,302
Profit on disposal of tangible fixed assets
(11,225)
(12,045)
Amortisation of intangible assets
57,174
2,154
Release of negative goodwill
-
(309,981)
Operating lease charges
935,843
603,690
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
22,500
20,000
Audit of the financial statements of the company's subsidiaries
13,500
13,500
36,000
33,500
EFM GLOBAL HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Management
8
9
4
4
Operations staff
78
67
-
-
Total
86
76
4
4

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
6,014,858
6,138,431
-
0
-
0
Social security costs
508,959
526,258
-
-
Pension costs
169,288
130,589
-
0
-
0
6,693,105
6,795,278
-
0
-
0
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
1,245,130
1,904,225
Company pension contributions to defined contribution schemes
32,620
38,423
1,277,750
1,942,648

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

Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
420,463
487,667
Company pension contributions to defined contribution schemes
14,792
24,746
EFM GLOBAL HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
1,523
2,589
Other interest income
7,086
-
Total income
8,609
2,589
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
1,523
2,589
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
444
-
Other interest on financial liabilities
71,449
42,837
71,893
42,837
Other finance costs:
Interest on finance leases and hire purchase contracts
9,108
2,198
Total finance costs
81,001
45,035
10
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 UK current tax
125,640
274,549
Foreign current tax on profits for the current period
89,577
157,740
Adjustments in foreign tax in respect of prior periods
(22,253)
(5,256)
Total current tax
192,964
427,033
Deferred tax
Origination and reversal of timing differences
1,423
150,620
Total tax charge
194,387
577,653
EFM GLOBAL HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Taxation
(Continued)
- 24 -

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
13,286
3,714,581
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
3,125
705,770
Tax effect of expenses that are not deductible in determining taxable profit
48,920
17,031
Tax effect of income not taxable in determining taxable profit
-
0
(68,869)
Gains not taxable
(2,588)
-
0
Tax effect of utilisation of tax losses not previously recognised
-
0
(43,038)
Adjustments in respect of prior years
(3,057)
-
0
Permanent capital allowances in excess of depreciation
-
0
(10,083)
Effect of overseas tax rates
163,780
(168,522)
Deferred tax
1,423
150,620
Depreciation in excess of capital allowances
5,037
-
0
Prior year tax refund on overseas subsidiaries
(22,253)
(5,256)
Taxation charge
194,387
577,653
11
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
500,000
180,000
EFM GLOBAL HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
12
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 January 2023
457,762
Additions
536,923
At 31 December 2023
994,685
Amortisation and impairment
At 1 January 2023
201,384
Amortisation charged for the year
57,174
At 31 December 2023
258,558
Carrying amount
At 31 December 2023
736,127
At 31 December 2022
256,378
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.
13
Tangible fixed assets
Group
Leasehold land and buildings
Plant and equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
241,993
357,410
203,251
57,162
859,816
Additions
-
0
117,479
34,949
-
0
152,428
Disposals
-
0
-
0
(3,056)
(14,400)
(17,456)
Exchange adjustments
-
0
(9,327)
(6,055)
(2,123)
(17,505)
At 31 December 2023
241,993
465,562
229,089
40,639
977,283
Depreciation and impairment
At 1 January 2023
241,993
254,332
156,071
43,162
695,558
Depreciation charged in the year
-
0
50,605
26,132
4,400
81,137
Eliminated in respect of disposals
-
0
-
0
(2,130)
(4,800)
(6,930)
Exchange adjustments
-
0
(7,077)
(4,931)
(2,123)
(14,131)
At 31 December 2023
241,993
297,860
175,142
40,639
755,634
Carrying amount
At 31 December 2023
-
0
167,702
53,947
-
0
221,649
At 31 December 2022
-
0
103,078
47,180
14,000
164,258
The company had no tangible fixed assets at 31 December 2023 or 31 December 2022.
EFM GLOBAL HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
13
Tangible fixed assets
(Continued)
- 26 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2023
2022
2023
2022
£
£
£
£
Plant and equipment
75,744
51,714
-
0
-
0
14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
2,318,879
1,664,809
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023
1,664,809
Additions
654,070
At 31 December 2023
2,318,879
Carrying amount
At 31 December 2023
2,318,879
At 31 December 2022
1,664,809
EFM GLOBAL HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
15
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
EFM Customs Broker LLC
Office 1111, Regal Tower, Business Bay, Dubai
Ordinary shares
49.00
EFM Event Logistics Inc
415 Crossways Park Drive, Suite C, Woodbury, NY 11797
Ordinary stock
100.00
EFM Management Australia PTY Ltd
Level 14, 20 Martin Place Sydney 2000
Ordinary shares
100.00
EFM Management FZ-LLC
DMC-BLD05-DQ-F03-002, Dubai Media City, Dubai
Ordinary shares
100.00
EFM Management Ltd
Same as parent
Ordinary shares
79.71
EFM USA Inc
415 Crossways Park Drive, Suite C, Woodbury, NY 11797
Ordinary stock
100.00
EFM Global Logistics Benelux
Gouverneur Roppesingel 129 / 3.01, 3500 Hasselt
Ordinary shares
100.00
EFM Global Logistics KSA
Al Mousa Commercial Centre , Suite 259 , Riyadh 11413, Saudi Arabia
Ordinary shares
100.00

A further 15% of the shares in EFM USA Inc, were purchased during the year.

16
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Work in progress
233,440
311,014
-
-
17
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
5,181,684
6,106,795
-
0
-
0
Unpaid share capital
32,731
34,441
-
0
-
0
Tax recoverable
199,706
205,627
-
0
-
0
Amounts owed by group undertakings
-
-
1,092,320
654,978
Other debtors
752,490
142,868
357,042
716
Prepayments and accrued income
665,524
971,045
1,018
696
6,832,135
7,460,776
1,450,380
656,390
Amounts falling due after more than one year:
Deferred tax asset (note 23)
60,064
62,679
-
0
-
0
Total debtors
6,892,199
7,523,455
1,450,380
656,390
EFM GLOBAL HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
17
Debtors
(Continued)
- 28 -

The group loans due to the parent company are repayable on demand, giving 6 months notice, and have interest accruing at 3% per annum.

18
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
21
300,000
300,000
-
0
-
0
Obligations under finance leases
20
14,442
9,380
-
0
-
0
Payments received on account
147,921
155,649
-
0
-
0
Trade creditors
4,401,112
5,423,509
11,084
4,950
Amounts owed to group undertakings
-
0
-
0
2,034,393
1,512,978
Tax payable
449,047
285,685
-
0
-
0
Other taxation and social security
132,125
129,863
-
-
Other creditors
243,764
355,812
150,845
272,970
Accruals and deferred income
1,666,803
3,897,603
27,000
28,200
7,355,214
10,557,501
2,223,322
1,819,098

The group loan due from the parent company is repayable on demand, giving 6 months notice, and has interest accruing at 1% over the Bank of England base rate.

19
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
21
550,000
850,000
-
0
-
0
Obligations under finance leases
20
48,226
37,770
-
0
-
0
598,226
887,770
-
-
20
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
16,478
10,391
-
0
-
0
In two to five years
51,084
40,337
-
0
-
0
67,562
50,728
-
-
Less: future finance charges
(4,894)
(3,578)
-
0
-
0
62,668
47,150
-
0
-
0
EFM GLOBAL HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
20
Finance lease obligations
(Continued)
- 29 -

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments. The finance leases are secured on the underlying assets.

21
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
850,000
1,150,000
-
0
-
0
Payable within one year
300,000
300,000
-
0
-
0
Payable after one year
550,000
850,000
-
0
-
0

The above is a bank loan held by a subsidiary of the Group of £850,000 (2022: £1,150,000) and is secured by a fixed charge over the subsidiary's assets and goodwill, 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.

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

22
Provisions for liabilities
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Dilapidations
78,000
64,000
-
-
Other provisions
232,183
52,518
-
-
310,183
116,518
-
-
Deferred tax liabilities
23
4,787
5,979
-
0
-
0
314,970
122,497
-
0
-
0
EFM GLOBAL HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
22
Provisions for liabilities
(Continued)
- 30 -
Movements on provisions apart from deferred tax liabilities:
Dilapidations
Other provisions
Total
Group
£
£
£
At 1 January 2023
64,000
49,926
113,926
Additional provisions in the year
14,000
182,257
196,257
At 31 December 2023
78,000
232,183
310,183

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.

The other provisions are estimated gratuity and annual leave costs.

23
Deferred taxation

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

Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Group
£
£
£
£
Depreciation in excess of capital allowances
8,629
7,659
25,850
13,173
Tax losses
-
-
29,651
37,913
Short term temporary differences
(3,842)
(1,680)
4,563
11,593
4,787
5,979
60,064
62,679
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability/(asset) at 1 January 2023
(56,700)
-
Charge to profit or loss
1,423
-
Liability/(asset) at 31 December 2023
(55,277)
-
EFM GLOBAL HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
24
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
169,288
130,589

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

As at the end of the year there was a liability of £8,172 (2022: £8,399) due to be paid in respect of contributions.

25
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100,000
100,000
100,000
100,000
26
Operating lease commitments
Lessee

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

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
713,941
513,060
-
-
Between two and five years
1,489,273
1,770,040
-
-
In over five years
504
-
-
-
2,203,718
2,283,100
-
-
27
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2023
2022
£
£
Aggregate compensation
1,527,112
2,489,813
EFM GLOBAL HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
28
Directors' transactions

Dividends totalling £500,000 (2022 - £180,000) were paid in the year in respect of shares held by the company's directors.

This loan to a director is repayable on demand.

Description
% Rate
Opening balance
Amounts advanced
Interest charged
Closing balance
£
£
£
£
Director -
3.50
-
346,627
7,077
353,704
-
346,627
7,077
353,704
29
Cash generated from group operations
2023
2022
£
£
(Loss)/profit for the year after tax
(181,101)
3,136,928
Adjustments for:
Taxation charged
194,387
577,653
Finance costs
81,001
45,035
Investment income
(8,609)
(2,589)
Gain on disposal of tangible fixed assets
(11,225)
(12,045)
Amortisation and impairment of intangible assets
57,174
2,154
Depreciation and impairment of tangible fixed assets
81,137
55,012
Exchange variances on fixed assets
4
(780)
Release of negative goodwill
-
(309,981)
Exchange variances on consolidation
2,759
(2,484)
Increase in provisions
193,665
48,639
Movements in working capital:
Decrease in stocks
77,574
13,456
Decrease/(increase) in debtors
976,433
(3,882,872)
(Decrease)/increase in creditors
(3,356,712)
5,915,615
Cash (absorbed by)/generated from operations
(1,893,513)
5,583,741
EFM GLOBAL HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 33 -
30
Analysis of changes in net funds - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
7,251,689
(3,912,528)
3,339,161
Borrowings excluding overdrafts
(1,150,000)
300,000
(850,000)
Obligations under finance leases
(47,150)
(15,518)
(62,668)
6,054,539
(3,628,046)
2,426,493
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