Company registration number 09874998 (England and Wales)
CEMA GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
CEMA GROUP LIMITED
COMPANY INFORMATION
Directors
Mr F Ciaurro
Mrs C Hardy
Mr G Morley
Mr R Sharpe
Mr R A Hill
Company number
09874998
Registered office
White House
Wollaton Street
Nottingham
NG1 5GF
Auditor
Higson & Co (Nottingham) Limited
White House
Wollaton Street
Nottingham
NG1 5GF
Business address
Pintail Close
Victoria Business Park
Colwick
Nottingham
NG4 2SJ
CEMA GROUP LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 7
Group statement of comprehensive income
8
Group statement of financial position
9 - 10
Company statement of financial position
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Company statement of cash flows
15
Notes to the financial statements
16 - 36
CEMA GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Review of the business

The group has had a satisfactory trading year in line with the previous year. Profits for the year are as forecasted.

Principal risks and uncertainties

The principal risk that could materially affect the group's business, revenues, operating income, net income, net assets or liquidity is general economic risk. This risk is managed by regularly forecasting future cashflows and monitor banking facilities to ensure sufficient funds are available to meet the group's financial obligations for the foreseeable future.

The group have also considered the risks if the pandemic was to continue, this risk has been managed by the group looking at the supply chain especially for special items such as PPE equipment, they have also increased stock levels of certain items due to concerns of not being able to get specific materials on time.

 

Development and performance

The objective of the directors is to continue to grow the turnover of the group within the water industry, but also looking into opportunities to expand outside of this sector. The directors consider the sector they work in and those they intend to expand into as being low risk, largely due to the group's experience in technology utilised in these sectors.

 

The group have secured at least 3 Framework's on sites for the next 5 years and are waiting to hear back on 4 others. The directors are confident of the group's ability to manage through the current challenges and to continue to be stronger in its chosen markets.

Key performance indicators

 

 

2023

2022

Turnover

 

42,095,720

39,503,296

 

 

 

 

Gross profit percentage

21.40%

18.41%

On behalf of the board

Mr F Ciaurro
Director
12 September 2024
CEMA GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

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

Results and dividends

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

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

Directors

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

Mr F Ciaurro
Mrs C Hardy
Mr G Morley
Mr R Sharpe
Mr R A Hill
Financial instruments

Financial assets measured at cost comprise amounts owed by customers on installations contracts; cash; trade debtors and other debtors.

Financial liabilities measured at amortised costs comprise other loans; trade creditors; other taxes and social security costs.

Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

The group welcomes suggestions from employees that will benefit both the company and its employees.

Post reporting date events

Particulars of events after the reporting period are detailed in note 29 to the financial statements.

Future developments

The Cema group of companies has obtained new contracts throughout 2024, which will increase the turnover of the group and the group's profitability. The directors of the Group and of the subsidiary companies continue to explore new contracts within the water industry and to expand in to new market sectors utilising their current expertise.

Auditor

In accordance with the company's articles, a resolution proposing that Higson & Co (Nottingham) Limited be reappointed as auditor of the company will be put at a General Meeting.

Energy and carbon report

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

CEMA GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
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.

Strategic report

The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.

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.

On behalf of the board
Mr F Ciaurro
Director
12 September 2024
CEMA GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CEMA GROUP LIMITED
- 4 -
Opinion

We have audited the financial statements of Cema Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where;

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:

CEMA GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CEMA GROUP LIMITED
- 5 -
Matters on which we are required to report by exception

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

 

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

Responsibilities of directors

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

CEMA GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CEMA GROUP LIMITED
- 6 -
Auditor's responsibilities for the audit of the financial statements

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

 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the company and industry, we identified that the principal risk of fraud or non-compliance with laws and regulations related to:

 

We focussed on those area that could give rise to a material misstatement in the Company financial statements. Our procedures included, but were not limited to:

 

It is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

 

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. This 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.

CEMA GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CEMA GROUP LIMITED
- 7 -

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.

David Wallwork BA FCA (Senior Statutory Auditor)
For and on behalf of Higson & Co (Nottingham) Limited
12 September 2024
Chartered Accountants
Statutory Auditor
White House
Wollaton Street
Nottingham
NG1 5GF
CEMA GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
42,095,720
39,503,296
Cost of sales
(33,086,954)
(32,231,910)
Gross profit
9,008,766
7,271,386
Distribution costs
(5,042)
(40,666)
Administrative expenses
(7,173,467)
(6,020,470)
Other operating income
107,997
60,798
Operating profit
4
1,938,254
1,271,048
Interest receivable and similar income
8
222,518
53,088
Interest payable and similar expenses
9
(166,661)
(144,433)
Amounts written off investments
10
-
46,003
Profit before taxation
1,994,111
1,225,706
Tax on profit
11
(493,474)
(247,636)
Profit for the financial year
27
1,500,637
978,070
Profit for the financial year is attributable to:
- Owners of the parent company
1,496,502
1,002,013
- Non-controlling interests
4,135
(23,943)
1,500,637
978,070
Total comprehensive income for the year is attributable to:
- Owners of the parent company
1,496,502
1,002,013
- Non-controlling interests
4,135
(23,943)
1,500,637
978,070

 

CEMA GROUP LIMITED
GROUP STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
13
56,000
84,000
Tangible assets
14
2,143,046
1,823,829
Investment property
15
1,087,949
683,674
Investments
16
60,500
247,990
3,347,495
2,839,493
Current assets
Stocks
19
290,139
271,504
Debtors
20
22,400,425
17,200,025
Cash at bank and in hand
1,921,379
2,036,487
24,611,943
19,508,016
Creditors: amounts falling due within one year
21
(15,302,423)
(11,140,178)
Net current assets
9,309,520
8,367,838
Total assets less current liabilities
12,657,015
11,207,331
Creditors: amounts falling due after more than one year
22
(45,664)
(216,494)
Provisions for liabilities
Deferred tax liability
23
266,089
146,211
(266,089)
(146,211)
Net assets excluding pension liability
12,345,262
10,844,626
Defined benefit pension liability
25
(541,000)
(541,000)
Net assets
11,804,262
10,303,626
Capital and reserves
Called up share capital
26
6,862
6,862
Share premium account
27
2,968
2,968
Profit and loss reserves
27
11,795,466
10,298,965
Equity attributable to owners of the parent company
11,805,296
10,308,795
Non-controlling interests
(1,034)
(5,169)
11,804,262
10,303,626
CEMA GROUP LIMITED
GROUP STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
The financial statements were approved by the board of directors and authorised for issue on 12 September 2024 and are signed on its behalf by:
12 September 2024
Mr F Ciaurro
Director
Company registration number 09874998 (England and Wales)
CEMA GROUP LIMITED
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
14
14,344
24,772
Investments
16
1,635,163
1,635,163
1,649,507
1,659,935
Current assets
Debtors
20
3,786,984
3,495,862
Cash at bank and in hand
20,268
67,720
3,807,252
3,563,582
Creditors: amounts falling due within one year
21
(1,282,270)
(1,819,982)
Net current assets
2,524,982
1,743,600
Total assets less current liabilities
4,174,489
3,403,535
Provisions for liabilities
Deferred tax liability
23
3,586
4,707
(3,586)
(4,707)
Net assets
4,170,903
3,398,828
Capital and reserves
Called up share capital
26
6,862
6,862
Profit and loss reserves
27
4,164,041
3,391,966
Total equity
4,170,903
3,398,828

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 £772,075 (2022 - £1,115,555 profit).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 12 September 2024 and are signed on its behalf by:
12 September 2024
Mr F Ciaurro
Director
Company registration number 09874998 (England and Wales)
CEMA GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Share premium account
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
Balance at 1 January 2022
6,862
2,968
9,314,952
9,324,782
18,774
9,343,556
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
1,002,013
1,002,013
(23,943)
978,070
Dividends
12
-
-
(18,000)
(18,000)
-
(18,000)
Balance at 31 December 2022
6,862
2,968
10,298,965
10,308,795
(5,169)
10,303,626
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
1,496,502
1,496,502
4,135
1,500,637
Balance at 31 December 2023
6,862
2,968
11,795,467
11,805,297
(1,034)
11,804,263
CEMA GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
6,862
2,300,411
2,307,273
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
1,115,555
1,115,555
Dividends
12
-
(24,000)
(24,000)
Balance at 31 December 2022
6,862
3,391,966
3,398,828
Year ended 31 December 2023:
Profit and total comprehensive income
-
772,075
772,075
Balance at 31 December 2023
6,862
4,164,041
4,170,903
CEMA GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
477,202
1,144,162
Interest paid
(166,661)
(144,433)
Income taxes paid
(201,748)
(503,303)
Net cash inflow from operating activities
108,793
496,426
Investing activities
Purchase of tangible fixed assets
(791,413)
(553,770)
Proceeds on disposal of tangible fixed assets
20,142
189,418
Purchase of investment property
(404,276)
(448,260)
Proceeds on disposal of investments
187,490
268,061
Interest received
22,518
22,144
Dividends received
200,000
30,944
Net cash used in investing activities
(765,539)
(491,463)
Financing activities
Repayment of borrowings
736,729
(83,370)
Repayment of bank loans
(197,347)
(124,576)
Payment of finance leases obligations
-
1
Dividends paid to equity shareholders
-
(18,000)
Net cash generated from/(used in) financing activities
539,382
(225,945)
Net decrease in cash and cash equivalents
(117,364)
(220,982)
Cash and cash equivalents at beginning of year
2,036,487
2,209,871
Cash and cash equivalents at end of year
1,919,124
2,036,487
Relating to:
Cash at bank and in hand
1,921,379
2,036,487
Bank overdrafts included in creditors payable within one year
(2,255)
-
CEMA GROUP LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
30
(184,854)
(1,941,721)
Interest paid
-
0
(1,717)
Income taxes paid
(66,494)
(108,221)
Net cash outflow from operating activities
(251,348)
(2,051,659)
Investing activities
Proceeds on disposal of subsidiaries
-
0
1,497,130
Interest received
3,896
5,500
Dividends received
200,000
2,024,000
Net cash generated from investing activities
203,896
3,526,630
Financing activities
Dividends paid to equity shareholders
-
(24,000)
Net cash used in financing activities
-
(24,000)
Net (decrease)/increase in cash and cash equivalents
(47,452)
1,450,971
Cash and cash equivalents at beginning of year
67,720
118,949
Cash and cash equivalents at end of year
20,268
67,720
CEMA GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
1
Accounting policies
Company information

Cema Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is White House, Wollaton Street, Nottingham, NG1 5GF. The principal place of business is Pintail Close, Victoria Business Park, Colwick, Nottingham, NG4 2SJ.

 

The group consists of Cema Group Limited and all of its subsidiaries.

1.1
Accounting convention

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

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

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

1.2
Basis of consolidation

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

 

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

 

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

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

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group statement of financial position at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

CEMA GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.4
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.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.5
Research and development expenditure

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

1.6
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.

1.7
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:

Freehold land and buildings
2% straight line
Plant and equipment
15% to 25% reducing balance
Fixtures and fittings
15% to 25% reducing balance
Motor vehicles
25% to 33% reducing balance

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 income statement.

1.8
Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

CEMA GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.9
Fixed asset investments

Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses. Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.

1.10
Impairment of fixed assets

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

 

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

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.11
Stocks

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

 

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

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.

CEMA GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
1.12
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 statement of financial position when the group becomes party to the contractual provisions of the instrument.

 

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

Basic financial assets

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

Other financial assets

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

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

CEMA GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
Basic financial liabilities

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

 

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

 

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

Other financial liabilities

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

 

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

Derecognition of financial liabilities

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

1.13
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.

1.14
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 income statement 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.

CEMA GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
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 income statement, 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.

1.15
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.

1.16
Retirement benefits

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

The cost of providing benefits under defined benefit plans is determined separately for each plan using the projected unit credit method, and is based on actuarial advice.

 

The change in the net defined benefit liability arising from employee service during the year is recognised as an employee cost. The cost of plan introductions, benefit changes, settlements and curtailments are recognised as an expense in measuring profit or loss in the period in which they arise.

The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in profit or loss as other finance revenue or cost.

 

Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other comprehensive income in the period in which they occur and are not reclassified to profit and loss in subsequent periods.

The net defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.

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.

CEMA GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 22 -

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.17
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.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Sale of goods
40,809,480
38,712,865
Interest
1,286,240
790,431
42,095,720
39,503,296
2023
2022
£
£
Other revenue
Interest income
22,518
22,144
Dividends received
200,000
30,944
Rental income
41,820
51,886
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Research and development costs
-
133,648
Depreciation of owned tangible fixed assets
466,873
358,866
Profit on disposal of tangible fixed assets
(14,819)
(72,539)
Amortisation of intangible assets
28,000
28,000
Operating lease charges
214,401
252,588
CEMA GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
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
23,280
16,765
Audit of the financial statements of the company's subsidiaries
81,994
98,058
105,274
114,823
For other services
Taxation compliance services
6,600
6,000
All other non-audit services
11,000
10,000
17,600
16,000
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
Production staff
284
278
10
9
Distribution staff
13
13
-
-
Administrative staff
70
68
-
-
Total
367
359
10
9

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
14,032,117
12,990,788
343,579
364,798
Social security costs
1,233,560
1,198,371
34,553
39,145
Pension costs
440,307
311,222
72,658
41,297
15,705,984
14,500,381
450,790
445,240
CEMA GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
231,993
201,575
Company pension contributions to defined contribution schemes
20,067
23,657
252,060
225,232

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 5 (2022 - 5).

Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
88,916
74,082
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
795
75
Other interest income
21,723
22,068
Total interest revenue
22,518
22,143
Other income from investments
Dividends received
200,000
30,944
222,518
53,087
Income from fixed asset investments
Income from participating interests
-
0
1
Total income
222,518
53,088

Investment income includes the following:

Interest on financial assets not measured at fair value through profit or loss
795
76
CEMA GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
15,860
18,606
Other interest on financial liabilities
150,802
118,949
166,662
137,555
Other finance costs:
Other interest
-
6,878
Total finance costs
166,661
144,433
10
Amounts written off investments
2023
2022
£
£
Gain/(loss) on disposal of investments held at fair value
-
(6,997)
Other gains and losses
-
53,000
-
46,003
11
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
373,769
204,175
Adjustments in respect of prior periods
(172)
26,731
Total current tax
373,597
230,906
Deferred tax
Origination and reversal of timing differences
119,877
16,730
Total tax charge
493,474
247,636
CEMA GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
11
Taxation
(Continued)
- 26 -

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
1,994,111
1,225,706
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
498,528
232,884
Tax effect of expenses that are not deductible in determining taxable profit
105,640
82,508
Unutilised tax losses carried forward
-
0
151,117
Change in unrecognised deferred tax assets
(8,698)
(44,618)
Effect of change in corporation tax rate
(2,329)
-
Group relief
(23,963)
(5,812)
Permanent capital allowances in excess of depreciation
(84,299)
(114,803)
Effect of capital allowances and depreciation
(31,987)
(15,167)
Utilisation of tax losses
-
0
(38,473)
Research and development enhanced expenditure
40,582
-
0
Taxation charge
493,474
247,636
12
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
-
24,000
CEMA GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
13
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 January 2023 and 31 December 2023
188,588
Amortisation and impairment
At 1 January 2023
104,588
Amortisation charged for the year
28,000
At 31 December 2023
132,588
Carrying amount
At 31 December 2023
56,000
At 31 December 2022
84,000
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.
14
Tangible fixed assets
Group
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
959,182
758,689
773,122
2,110,263
4,601,256
Additions
102,342
33,668
142,216
513,187
791,413
Disposals
-
0
-
0
-
0
(78,252)
(78,252)
At 31 December 2023
1,061,524
792,357
915,338
2,545,198
5,314,417
Depreciation and impairment
At 1 January 2023
144,748
611,922
709,988
1,310,769
2,777,427
Depreciation charged in the year
17,900
37,730
40,944
370,299
466,873
Eliminated in respect of disposals
-
0
-
0
-
0
(72,929)
(72,929)
At 31 December 2023
162,648
649,652
750,932
1,608,139
3,171,371
Carrying amount
At 31 December 2023
898,876
142,705
164,406
937,059
2,143,046
At 31 December 2022
814,434
146,767
63,134
799,494
1,823,829
CEMA GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
14
Tangible fixed assets
(Continued)
- 28 -
Company
Motor vehicles
£
Cost
At 1 January 2023 and 31 December 2023
41,713
Depreciation and impairment
At 1 January 2023
16,941
Depreciation charged in the year
10,428
At 31 December 2023
27,369
Carrying amount
At 31 December 2023
14,344
At 31 December 2022
24,772
15
Investment property
Group
Company
2023
2023
£
£
Fair value
At 1 January 2023 and 31 December 2023
683,673
-
Additions through external acquisition
404,276
-
At 31 December 2023
1,087,949
-

Investment property comprises of an apartment at Avenida De Francia, Malaga, Spain plus additional residential property in the UK. The fair value of the investment property has been arrived at on the basis of a valuation carried by the directors. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.

16
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
17
-
0
-
0
1,635,163
1,635,163
Investments in associates
60,500
60,500
-
0
-
0
Listed investments
-
0
187,490
-
0
-
0
60,500
247,990
1,635,163
1,635,163
CEMA GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
16
Fixed asset investments
(Continued)
- 29 -
Movements in fixed asset investments
Group
Shares in associates
Other investments
Total
£
£
£
Cost or valuation
At 1 January 2023
60,500
187,490
247,990
Disposals
-
(187,490)
(187,490)
At 31 December 2023
60,500
-
60,500
Carrying amount
At 31 December 2023
60,500
-
60,500
At 31 December 2022
60,500
187,490
247,990
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
1,635,163
Carrying amount
At 31 December 2023
1,635,163
At 31 December 2022
1,635,163
17
Subsidiaries

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

CEMA GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
17
Subsidiaries
(Continued)
- 30 -
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Cema Limited
White House; Wollaton Street; Nottingham; NG1 5GF
Ordinary
100.00
Nottingham Crane Hire Limited
White House; Wollaton Street; Nottingham; NG1 5GF
Ordinary
100.00
Cema Tracking Solutions Limited
White House; Wollaton Street; Nottingham; NG1 5GF
Ordinary
100.00
Cema Commercial Limited
White House; Wollaton Street; Nottingham; NG1 5GF
Ordinary
100.00
Cema Site Installations Limited
White House; Wollaton Street; Nottingham; NG1 5GF
Ordinary
100.00
Lloyd Morris Electrical Limited
Pandy Business Park; Pandy' Wrexham; LL11 2UD
Ordinary
100.00
Merlin Systems Limited
Unit 4; Blackwood Business Park; Ash Road South; Wrexham Industrial Estate; Wrexham; LL11 9UG
Ordinary
100.00
Cema Solutions Limited
White House; Wollaton Street; Nottingham; NG1 5GF
Ordinary
100.00
Labtec Services Limited
White House; Wollaton Street; Nottingham; NG1 5GF
Ordinary
75.00
Innovative Business Finance Limited
White House; Wollaton Street; Nottingham; NG1 5GF
Ordinary
100.00
Viking Pumps Limited
Viking House; Dannemora Drive; Greenland Road Industrial Park; Sheffield; S9 5DF
Ordinary
100.00
Sandiacre Metal Solutions Limited
White House; Wollaton Street; Nottingham; NG1 5GF
Ordinary
100.00
CEMA GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
18
Significant undertakings

The group also has significant holdings in undertakings which are not consolidated:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Cema Business Solutions Limited
White House; Wollaton Street; Nottingham; NG1 5GF
Ordinary
25.00
Smart Asset Manager Limited
White House; Wollaton Street; Nottingham; NG1 5GF
Ordinary
34.00
Cema Clayton Consortium Limited
Westthorpe Works, Halifax Road, Penistone, Sheffield, S36 7EY
Ordinary
50.00
19
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
290,139
271,504
-
-
20
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
19,733,642
14,080,709
-
0
-
0
Gross amounts owed by contract customers
338,436
645,163
-
0
-
0
Amounts owed by group undertakings
-
-
3,578,884
3,484,662
Amounts owed by undertakings in which the company has a participating interest
795,018
907,763
78,455
11,200
Other debtors
1,291,677
1,416,521
129,645
-
0
Prepayments and accrued income
241,652
149,869
-
0
-
0
22,400,425
17,200,025
3,786,984
3,495,862
CEMA GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
21
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
105,474
129,736
-
0
-
0
Other borrowings
1,715,728
978,999
-
0
-
0
Trade creditors
5,172,423
4,356,496
19,225
-
0
Amounts owed to group undertakings
-
0
-
0
1,067,044
1,670,774
Amounts owed to undertakings in which the group has a participating interest
128,945
128,945
-
0
-
0
Corporation tax payable
373,463
201,615
89,380
66,583
Other taxation and social security
662,056
911,701
69,711
46,758
Deferred income
24
1,351,835
1,087,044
-
0
-
0
Other creditors
3,128,070
1,194,875
16,374
16,626
Accruals and deferred income
2,664,429
2,150,767
20,536
19,241
15,302,423
11,140,178
1,282,270
1,819,982
22
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
45,664
216,494
-
0
-
0
23
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
266,089
146,211
Liabilities
Liabilities
2023
2022
Company
£
£
Accelerated capital allowances
3,586
4,707
CEMA GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
23
Deferred taxation
(Continued)
- 33 -
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
146,211
4,707
Charge/(credit) to profit or loss
119,878
(1,121)
Liability at 31 December 2023
266,089
3,586
24
Deferred income
Group
Company
2023
2022
2023
2022
£
£
£
£
Other deferred income
1,351,835
1,087,044
-
-
25
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
440,307
311,222

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.

Defined benefit schemes

The company Cema Limited operates a defined benefit scheme for qualifying employees.

 

The most recent actuarial valuations of plan assets and the present value of the defined benefit obligation were carried out at by the Fellow of the Institute of Actuaries in 2018. The present value of the defined benefit obligation, the related current service cost and past service cost were measured using the projected unit credit method.

2023
2022
Key assumptions
%
%
Discount rate
2.7
2.7
Inflation RPI
3.2
3.2
Inflation CPI
2.1
2.1
Mortality assumptions
2023
2022

Assumed life expectations on retirement at age 65:

Years
Years
CEMA GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
25
Retirement benefit schemes
(Continued)
- 34 -

The amounts included in the statement of financial position arising from obligations in respect of defined benefit plans are as follows:

2023
2022
Group
£
£
Present value of defined benefit obligations
541,000
541,000
Deficit in scheme
541,000
541,000
The company had no post employment benefits at 31 December 2023 or 1 January 2023.
Group
2023
Movements in the present value of defined benefit obligations
Liabilities at 1 January 2023 and 31 December 2023
541,000
Group
2023
The defined benefit obligations arise from plans funded as follows:
£
Wholly unfunded obligations
-
Wholly or partly funded obligations
-
541,000
26
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
6,848
6,848
6,848
6,848
Ordinary B shares of £1 each
8
8
8
8
Ordinary C shares of £1 each
2
2
2
2
Ordinary D shares of £1 each
4
4
4
4
6,862
6,862
6,862
6,862
CEMA GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 35 -
27
Reserves
Share premium

Share premium

This reserve records the premium paid for shares issued at par.

Profit and loss

This reserve records retained earnings.

Minority interest

This reserve records retained earnings for the minority interests.

28
Analysis of changes in net funds - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
2,036,487
(115,108)
1,921,379
Bank overdrafts
-
0
(2,255)
(2,255)
2,036,487
(117,363)
1,919,124
Borrowings excluding overdrafts
(1,325,229)
(539,382)
(1,864,611)
711,258
(656,745)
54,513
29
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
1,500,637
978,070
Adjustments for:
Taxation charged
493,474
247,636
Finance costs
166,661
144,433
Investment income
(222,518)
(53,088)
Gain on disposal of tangible fixed assets
(14,819)
(72,539)
Amortisation and impairment of intangible assets
28,000
28,000
Depreciation and impairment of tangible fixed assets
466,873
358,866
Other gains and losses
-
(46,003)
Movements in working capital:
(Increase)/decrease in stocks
(18,635)
26,735
Increase in debtors
(5,200,400)
(1,972,461)
Increase in creditors
3,013,139
425,065
Increase in deferred income
264,791
1,079,450
Cash generated from operations
477,203
1,144,164
CEMA GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 36 -
30
Cash absorbed by operations - company
2023
2022
£
£
Profit for the year after tax
772,075
1,115,555
Adjustments for:
Taxation charged
88,170
66,857
Finance costs
-
0
1,717
Investment income
(203,896)
(527,300)
Depreciation and impairment of tangible fixed assets
10,428
10,428
Movements in working capital:
Increase in debtors
(291,122)
(2,482,904)
Decrease in creditors
(560,509)
(126,074)
Cash absorbed by operations
(184,854)
(1,941,721)
31
Analysis of changes in net funds - company
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
67,720
(47,452)
20,268
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