Registration number:
Albion Computers Plc
for the Year Ended 31 December 2023
Albion Computers Plc
Contents
Company Information |
|
Strategic Report |
|
Directors' Report |
|
Statement of Directors' Responsibilities |
|
Independent Auditor's Report |
|
Profit and Loss Account |
|
Balance Sheet |
|
Statement of Changes in Equity |
|
Statement of Cash Flows |
|
Notes to the Financial Statements |
Albion Computers Plc
Company Information
Directors |
R P Mayes H N Cole K Beeby |
Company secretary |
P G Whitton |
Registered office |
|
Auditors |
|
Albion Computers Plc
Strategic Report for the Year Ended 31 December 2023
The directors present their strategic report for the year ended 31 December 2023.
Principal activity
The principal activity of the company during the year was the provision of information technology and communication solutions and related services.
The purpose of the Strategic report is to inform members of the company and help them assess how the directors have performed their duty under section 172 (1) (duty to promote success of the company) and in doing so have regard (amongst other mattters) to:-
the likely consequences of any decisions in the long term,
the interest of the company's employees,
the need to foster business relationships with customers, suppliers and other stakeholders,
the impact of the company's operations on the community and the enviroment,
the desirability of the company maintaining a reputation for high standards of business conduct, and
the need to act fairly as between members of the company.
Albion Computers PLC is a well-established business whose directors are always mindful of the company’s interests for the long term. Consequently the investment in scalable, robust IT systems, flexible operations and teams based working groups, fosters collaborative working, knowledge sharing and development.
Albion Computers PLC have forged long term close relationships with customer businesses and educational institutions and established twn stores located across the UK. Regular training is conducted on technical matters and on all new products. . Website, social media and PR support activities including digital and printed catalogues, which are constantly refined. Comprehensive displays in store showcase our products.
Albion Computers PLC’s directors encourage regular training meetings with in-house staff to enhance staff technical knowledge. Detailed staff courses, inductions and reviews assist our understanding and communication with our staff as individuals.
Albion Computers PLC’s staff retention is excellent and staff are regarded as an essential part of Albion Computers PLC’s on-going success. Most Albion staff are drawn from our local communities. Albion Computers PLC is active with schools, colleges and community groups to nurture close relationships.
Albion Computers PLC’s directors encourage close enduring working relationships with suppliers and our policies ensure that all materials and componentry are ethically sourced from environmentally responsible locations. Suppliers are treated fairly and payments are made punctually.
Albion Computers Plc
Strategic Report for the Year Ended 31 December 2023
Fair review of the business
The directors are pleased to report that the company has maintained a steady growth during 2023 and the financial health of the company has continued to improve.
Considering the competitive nature of our market we have managed to grow in terms of business to business sales as well as through our retail stores. We have traded successfully though our chain of ten iStores throughout the country continuing to develop our service offerings from within the stores as well as remotely to our business and education customers.
Our relationship with major suppliers remains strong and has enabled us to acquire another Apple Retail business in mid 2024 bringing the total number of shops operated to 13 as well as enhancing business to business sales. Growth in turnover, gross profit and net profit is expected to continue into 2024 despite a downturn in general economic activity.
Taking all the above into account the results represent a robust outcome for 2023 and in the current circumstances we are very encouraged by the resilience of the business and the prospects for the future.
Key performance indicators
Management use a range of financial and non-financial performance measures to monitor and manage the business. The KPIs used to determine the progress and performance are set out below:
The company's key financial and other performance indicators during the year were as follows:
(i) Turnover increased by 12.0% to £69.4m.
(ii) Gross profit increased by 2.9% to £7.3m and net profit after tax was £1.0m.
The directors are happy with the year end position. There are sufficient cash reserves to enable the company to react to new opportunities as they arise.
Albion Computers Plc
Strategic Report for the Year Ended 31 December 2023
Principal risks and uncertainties
The company is required to operate in an environmentally responsible manner. The resources and processes that we have put in place are focused on achieving industry best practice. Our environmental policy is to:
• Comply as a minimum, with all applicable environmental legislation and develop our environmental procedures and practices towards best practice
• Ensure all of our employees are aware of their environmental responsibilities
• Optimise our use of energy and resources through efficiency gains and recycling
• Be good neighbours in all communities in which we operate
The company seeks to achieve industry best practice standards of health and safety. We recognise that this is a critical issue for all our stakeholders particularly employees and contractors.
Overall responsibilities for human resources lies with allocated members of the management team.
Day to day responsibilities for ensuring that the company’s employment policies are effectively implemented lies with the managing director. The company ensures training requirements for staff are catered for on an ongoing basis.
In the normal course of business, the company is exposed to interest rate risk, liquidity risk, credit risk and price risk. In summary the directors are conscious of the need to continue to grow and develop the company and are confident that such growth can be delivered through a continued emphasis on cost and margin controls and market share enhancement.
The future developments of the company will continue to increase operational efficiencies which will complement our drive to grow our business sustainably in all our principal markets of technology supply in the retail, business and education sectors.
Approved and authorised by the
......................................... |
Albion Computers Plc
Directors' Report for the Year Ended 31 December 2023
The directors present their report and the financial statements for the year ended 31 December 2023.
Directors of the company
The directors who held office during the year were as follows:
Dividends
The directors do not recommend payment of a final dividend.
Financial instruments
Objectives and policies
The company’s principal financial instruments include bank loans, the main purpose of which is to provide finance for its operations. In addition, the company has various other financial assets and liabilities such as trade debtors and trade creditors arising directly from operations.
Investment of cash surpluses and borrowings are made through banks and institutions which must fulfil credit rating criteria approved by the Board. All customers who wish to trade on credit terms are subject to credit verification procedures, and trade debtors are reviewed on a regular basis with provision made for doubtful debts when necessary.
Price risk, credit risk, liquidity risk and cash flow risk
The company operates a treasury function which is responsible for managing the liquidity, interest and currency risk associated with its activities.
The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring it has sufficient liquid resources to meet the operating needs of the business.
Future developments
The company is expected to continue investing in its people and growing technology to maintain its strong position in the market. The company has strong commitments to all of its customers to provide them with the best products available in the market now and in the future.
Albion Computers Plc
Directors' Report for the Year Ended 31 December 2023
Disclosure of information to the auditors
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Approved by the
Director
Albion Computers Plc
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
• |
select suitable accounting policies and apply them consistently; |
• |
make judgements and accounting estimates that are reasonable and prudent; |
• |
state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• |
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Albion Computers Plc
Independent Auditor's Report to the Members of Albion Computers Plc
Opinion
We have audited the financial statements of Albion Computers Plc (the 'company') for the year ended 31 December 2023, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
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 responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the entity'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 directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Albion Computers Plc
Independent Auditor's Report to the Members of Albion Computers Plc
We have nothing to report in this regard.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
• |
the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors' remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities (set out on page 7), the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor 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.
Albion Computers Plc
Independent Auditor's Report to the Members of Albion Computers Plc
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 fraudThe extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Discussions were held with, and enquiries made of, management and those charged with governance with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.
The following laws and regulations were identified as being of significance to the entity:
• |
those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, Company Law, Tax and Pensions legislation, and distributable profits legislation. |
• |
those laws and regulations for which non-compliance may be fundamental to the operating aspects of the business and therefore may have a material effect on the financial statements include (operating licence, environmental regulations, health and safety legislation). |
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of board minutes; testing the appropriateness of entries in the nominal ledger, including journal entries; reviewing transactions around the end of the reporting period; and the performance of analytical procedures to identify unexpected movements in account balances which may be indicative of fraud.
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Albion Computers Plc
Independent Auditor's Report to the Members of Albion Computers Plc
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.
For and on behalf of
Chartered accountants & statutory auditors
Nexus House
2 Cray Road
Kent
DA14 5DA
Albion Computers Plc
Profit and Loss Account for the Year Ended 31 December 2023
Note |
2023 |
2022 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Operating profit |
1,348,922 |
1,342,125 |
|
Profit before tax |
|
|
|
Taxation |
( |
( |
|
Profit for the financial year |
|
|
No Statement of Comprehensive Income has been presented as there is no movement through other comprehensive income for the year.
Albion Computers Plc
(Registration number: 02043116)
Balance Sheet as at 31 December 2023
Note |
2023 |
2022 |
|
Fixed assets |
|||
Intangible assets |
|
|
|
Tangible assets |
|
|
|
|
|
||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Profit and loss account |
|
|
|
Total equity |
|
|
Approved and authorised by the
R P Mayes
Director
Albion Computers Plc
Statement of Changes in Equity for the Year Ended 31 December 2023
Share capital |
Profit and loss account |
Total |
|
At 1 January 2023 |
|
|
|
Profit for the year |
- |
|
|
Total comprehensive income |
- |
|
|
Dividends |
- |
( |
( |
At 31 December 2023 |
|
|
|
Share capital |
Profit and loss account |
Total |
|
At 1 January 2022 |
|
|
|
Profit for the year |
- |
|
|
Total comprehensive income |
- |
|
|
Dividends |
- |
( |
( |
At 31 December 2022 |
|
|
|
Albion Computers Plc
Statement of Cash Flows for the Year Ended 31 December 2023
Note |
2023 |
2022 |
|
Cash flows from operating activities |
|||
Profit for the year |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Corporation tax |
|
|
|
|
|
||
Working capital adjustments |
|||
Increase in stocks |
( |
( |
|
Increase in trade and other debtors |
( |
( |
|
Increase in trade and other creditors |
|
|
|
Cash generated from operations |
|
( |
|
Corporation tax paid |
( |
( |
|
Net cash flow from operating activities |
|
( |
|
Cash flows from investing activities |
|||
Acquisitions of property, plant and equipment |
( |
- |
|
Net cash flows from investing activities |
( |
- |
|
Cash flows from financing activities |
|||
Repayment of bank borrowing |
( |
( |
|
Dividends paid |
( |
( |
|
Net cash flows from financing activities |
( |
( |
|
Net increase/(decrease) in cash and cash equivalents |
|
( |
|
Cash and cash equivalents at 1 January |
|
|
|
Cash and cash equivalents at 31 December |
5,665,704 |
3,510,418 |
Albion Computers Plc
Notes to the Financial Statements for the Year Ended 31 December 2023
General information |
The company is a public company limited by share capital, incorporated in England.
The principal activity of the company is disclosed in the Strategic Report.
The address of its registered office and principal place of business is:
Accounting policies |
Basis of preparation
These financial statements have been prepared in accordance with applicable United Kingdom accounting standards, Financial Reporting Standard 102 - 'The Financial Reporting standard applicable in the United Kingdom and Republic of Ireland' ('FRS 102'), and with the Companies Act 2006.
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The financial statements are prepared in sterling, which is the functional currency of the entity,
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Going concern
After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.
Albion Computers Plc
Notes to the Financial Statements for the Year Ended 31 December 2023
Critical accounting judgements and key sources of estimation uncertainty
In the application of the company's accounting policies management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historic 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. |
Specifically, estimates and judgements are used in the valuation of stock, debtor recoverability and depreciation. |
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company.
The company recognises revenue when:
- The amount of revenue can be reliably measured;
- it is probable that future economic benefits will flow to the entity;
- and specific criteria have been met for each of the company's activities.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
Albion Computers Plc
Notes to the Financial Statements for the Year Ended 31 December 2023
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Long leasehold property |
10% straight line |
Plant and machinery |
15% straight line |
Fixtures, fittings & equipment |
15% straight line |
Motor vehicles |
15% straight line |
Business combinations
Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquiisition date if the adjustment is probable and can be measured reliably.
Goodwill
Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.
Albion Computers Plc
Notes to the Financial Statements for the Year Ended 31 December 2023
Financial instruments
Classification
Financial assets are classified as financial assets at fair value through profit or loss, loans and debtors, held-to-maturity investments, available-for-sale financial assets, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. The company determines the classification of its financial assets at initial recognition.
Financial liabilities are classified as financial liabilities at fair value through profit and loss, loans and borrowings, trade and other creditors, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. The company determines the classification of its financial liabilities at initial recognition.
Recognition and measurement
Impairment
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade and other debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.
Albion Computers Plc
Notes to the Financial Statements for the Year Ended 31 December 2023
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods comprises the cost of products for resale including that of bringing them to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
Trade and other creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense.
Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised as in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Albion Computers Plc
Notes to the Financial Statements for the Year Ended 31 December 2023
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distributions to the company’s shareholders are recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Turnover |
The analysis of the company's Turnover for the year from continuing operations is as follows:
2023 |
2022 |
|
Sale of goods |
|
|
The analysis of the company's Turnover for the year by market is as follows:
2023 |
2022 |
|
UK |
|
|
Turnover is attributable to the principal activity and is derived wholly in the United Kingdom.
Operating profit |
Arrived at after charging/(crediting)
2023 |
2022 |
|
Depreciation expense |
|
|
Operating lease expense - property |
|
|
Albion Computers Plc
Notes to the Financial Statements for the Year Ended 31 December 2023
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2023 |
2022 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
Other employee expense |
|
|
|
|
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
2023 |
2022 |
|
Administration, support and sales |
|
|
Other departments |
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
2023 |
2022 |
|
Remuneration |
|
|
Contributions paid to money purchase schemes |
|
|
185,681 |
152,793 |
Auditors' remuneration |
2023 |
2022 |
|
Audit of the financial statements |
|
|
Albion Computers Plc
Notes to the Financial Statements for the Year Ended 31 December 2023
Taxation |
Tax charged/(credited) in the profit and loss account
2023 |
2022 |
|
Current taxation |
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UK corporation tax |
|
|
Deferred taxation |
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Arising from origination and reversal of timing differences |
( |
( |
Tax expense in the profit and loss account |
|
|
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2022 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2023 |
2022 |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Decrease from effect of different UK tax rates |
( |
- |
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
Deferred tax movement |
( |
( |
Tax increase from effect of capital allowances and depreciation |
|
|
Total tax charge |
|
|
From 1 April 2023, the main corporation tax rate increased to 25%.
Albion Computers Plc
Notes to the Financial Statements for the Year Ended 31 December 2023
Intangible assets |
Goodwill |
Total |
|
Cost or valuation |
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At 1 January 2023 |
|
|
At 31 December 2023 |
|
|
Carrying amount |
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At 31 December 2023 |
|
|
At 31 December 2022 |
|
|
The goodwill is in relation to the acquisition of a business division from an entity carrying on activities similar to Albion Computers plc. No other assets or liabilities were acquired from the vendor as part of this arrangement.
Tangible assets |
Short leasehold land and buildings |
Fixtures and fittings |
Plant and machinery |
Motor vehicles |
Total |
|
Cost or valuation |
|||||
At 1 January 2023 |
|
|
|
|
|
Additions |
|
- |
- |
- |
|
At 31 December 2023 |
|
|
|
|
|
Depreciation |
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At 1 January 2023 |
|
|
|
|
|
Charge for the year |
|
|
|
|
|
At 31 December 2023 |
|
|
|
|
|
Carrying amount |
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At 31 December 2023 |
|
|
|
|
|
At 31 December 2022 |
|
|
|
|
|
Albion Computers Plc
Notes to the Financial Statements for the Year Ended 31 December 2023
Stocks |
2023 |
2022 |
|
Finished goods and goods for resale |
|
|
Debtors |
2023 |
2022 |
|
Trade debtors |
|
|
Other debtors |
|
|
Prepayments |
|
|
|
|
Cash and cash equivalents |
2023 |
2022 |
|
Cash on hand |
|
|
Albion Computers Plc
Notes to the Financial Statements for the Year Ended 31 December 2023
Creditors |
2023 |
2022 |
|
Due within one year |
||
Bank borrowings |
|
|
Trade creditors |
|
|
Social security and other taxes |
|
|
Other creditors |
|
|
Accrued expenses |
|
|
Corporation tax |
351,043 |
276,328 |
Deferred income |
|
|
|
|
|
Due after one year |
||
Bank borrowings |
|
|
Bank borrowings comprise a CBILS term loan of £337k (2022: £544k) provided by Barclays Bank Plc. Repayments, which started in June 2021, are by monthly instalments and interest is charged at 3% p.a over base rate.
Share capital |
Allotted, called up and fully paid shares
2023 |
2022 |
|||
No. |
£ |
No. |
£ |
|
|
|
100,000 |
|
100,000 |
Obligations under leases |
The total of future minimum lease payments under operating lease contracts are as follows:
2023 |
2022 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
Later than five years |
|
|
|
|
Albion Computers Plc
Notes to the Financial Statements for the Year Ended 31 December 2023
Deferred tax and other provisions |
Deferred tax |
Total |
|
At 1 January 2023 |
|
|
Increase (decrease) in existing provisions |
( |
( |
At 31 December 2023 |
|
|
|
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
Dividends |
2023 |
2022 |
|||
£ |
£ |
|||
Interim dividend of £ |
360,000 |
72,000 |
||
Analysis of changes in net debt |
At the beginning of the period the company had a net surplus of £3,431,871 being cash of £4,171,971 less bank loan of £740,100. At the end of the period the net surplus was £5,328,361 being cash of £5,665,704 less bank loan of £337,343., The movement of £1,896,490 comprises an increase in cash of £1,493,733 plus reduction in bank loan of £402,757 as mentioned in note 14 on page 24.
Albion Computers Plc
Notes to the Financial Statements for the Year Ended 31 December 2023
Related party transactions |
Transactions with directors |
2023 |
At 1 January 2023 |
Advances to director |
Repayments by director |
At 31 December 2023 |
R P Mayes |
||||
|
|
( |
|
( |
H N Cole |
||||
|
|
( |
|
( |
2022 |
At 1 January 2022 |
At 31 December 2022 |
R P Mayes |
||
|
|
|
H N Cole |
||
|
|
|
The loans from directors are interest free and repayable on demand.
Inlcuded in other debtors is an amount of £30,548 (2022: £30,548) due from Istore Limited a company where Mr H N Cole and Mr R P Mayes are directors and shareholders.
Controlling party |
The company was under the control of Mr H N Cole and Mr R P Mayes throughout the current and previous year.
Post balance sheet events |
|