Company registration number 05559305 (England and Wales)
CORPORATE TELECOMMUNICATIONS (UK) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
CORPORATE TELECOMMUNICATIONS (UK) LIMITED
COMPANY INFORMATION
Directors
Mr P A Baxter
Mr J W Davies
Company number
05559305
Registered office
Beswick House
Green Fold Lane
Leigh
Greater Manchester
WN7 3XT
Auditor
Wheawill & Sudworth Limited
35 Westgate
Huddersfield
West Yorkshire
HD1 1PA
CORPORATE TELECOMMUNICATIONS (UK) LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Independent auditor's report
3 - 6
Group statement of comprehensive income
7
Group statement of financial position
8
Company statement of financial position
9
Group statement of changes in equity
10
Company statement of changes in equity
11
Group statement of cash flows
12
Company statement of cash flows
13
Notes to the financial statements
14 - 26
CORPORATE TELECOMMUNICATIONS (UK) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Principal activities

 

The principal activity of Corptel is to sell and distribute telecom/IT peripherals, mainly call centre and office headset related products. Over the last 30 years Corptel has become one of the leading and trusted suppliers of such products.

 

The company's strategy is to have sustainable and profitable growth by expanding our product portfolio, improving our supplier relationships and reaching out to existing and new potential clients.

Review of the business

 

The Directors were satisfied with our results. Our industry has had a challenging year having seen a slowdown in business from April, based mainly on government cutbacks,that remained throughout the year. We made some tough decisions and closed down our operations in Europe and USA. Group operating profit has fallen from £1.54 million in 2022 to £805k in 2023. This was based on reduced turnover of £22.4 million compared to £26.4 million in 2022.

Principal risks and uncertainties

 

Liquidity continues to be managed by the use of a mix of invoice financing and strict credit control procedures that minimise the risk of overdue debts. Trade creditors are paid within terms. Attention is paid to foreign exchange movements and trends.

Development and performance

 

Operational developments

 

We continue to invest in our infrastructure and IT resources to help increase business efficiencies in the years to come allowing for extra capacity to be gained from our experienced and skilled workforce.

 

Our people

 

The business recognises the loyalty and dedication of its staff that helps create the success for the business with the support of management. Over half the team have now been with the business for more than 10 years. We are a member of the Living Wage Foundation due to our higher than average salary levels within the North West. We also provide private healthcare, and our pension scheme benefits are well above the government legal requirements.

 

Other information and explanations

 

Future outlook

 

The business is well placed to deliver profitable growth moving forward. We have expanded our portfolio of distribution rights to new product categories that compliment our existing portfolio and allow for increased opportunities with our existing customer base. We hope to see inflation return to normal levels and a decrease in the interest rate in 2024 and 2025, to give customers greater confidence to invest in technology improvements.

 

On behalf of the board

Mr P A Baxter
Director
18 September 2024
CORPORATE TELECOMMUNICATIONS (UK) 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 7.

Ordinary dividends were paid amounting to £620,000. 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 P A Baxter
Mr J W Davies
Statement of directors' responsibilities

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

 

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

 

 

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

Statement of disclosure to auditor

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

On behalf of the board
Mr P A Baxter
Director
18 September 2024
CORPORATE TELECOMMUNICATIONS (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CORPORATE TELECOMMUNICATIONS (UK) LIMITED
- 3 -
Opinion

We have audited the financial statements of Corporate Telecommunications (UK) 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

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

 

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

 

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

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

CORPORATE TELECOMMUNICATIONS (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CORPORATE TELECOMMUNICATIONS (UK) LIMITED
- 4 -
Matters on which we are required to report by exception

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

 

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

Responsibilities of directors

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

Auditor's responsibilities for the audit of the financial statements

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

CORPORATE TELECOMMUNICATIONS (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CORPORATE TELECOMMUNICATIONS (UK) LIMITED
- 5 -

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:

 

Obtained an understanding of the legal and regulatory framework applicable to the entity and how the entity is complying with that framework;

 

Assessment of the susceptibility of the entity’s financial statements to material misstatement, including how fraud might occur;

 

Ensured whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations;

 

Gained clear understanding of the entity’s current activities, the scope of its authorisation and confirmed the effectiveness of its control environment where the entity is a regulated entity;

 

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

 

·    Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

 

·    Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.

 

·    Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

 

·    Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern.

 

·    Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

 

·    Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

 

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant deficiencies in internal control that we identify during our audit.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

CORPORATE TELECOMMUNICATIONS (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CORPORATE TELECOMMUNICATIONS (UK) LIMITED
- 6 -
David Butterworth (Senior Statutory Auditor)
For and on behalf of Wheawill & Sudworth Limited
18 September 2024
Chartered Accountants
Statutory Auditor
35 Westgate
Huddersfield
West Yorkshire
HD1 1PA
CORPORATE TELECOMMUNICATIONS (UK) LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
22,436,659
26,348,966
Cost of sales
(18,133,685)
(21,247,161)
Gross profit
4,302,974
5,101,805
Distribution costs
(389,718)
(379,392)
Administrative expenses
(3,107,797)
(3,189,937)
Other operating income
-
9,000
Operating profit
4
805,459
1,541,476
Interest receivable and similar income
11,690
2,973
Interest payable and similar expenses
(112,244)
(63,486)
Profit before taxation
704,905
1,480,963
Tax on profit
8
(253,017)
(343,755)
Profit for the financial year
20
451,888
1,137,208
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
CORPORATE TELECOMMUNICATIONS (UK) LIMITED
GROUP STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
10
144,033
203,784
Current assets
Stocks
13
8,463,389
6,908,942
Debtors
14
2,578,414
3,924,850
Cash at bank and in hand
513,164
1,171,601
11,554,967
12,005,393
Creditors: amounts falling due within one year
15
(7,053,102)
(7,386,053)
Net current assets
4,501,865
4,619,340
Total assets less current liabilities
4,645,898
4,823,124
Provisions for liabilities
Deferred tax liability
16
30,105
39,219
(30,105)
(39,219)
Net assets
4,615,793
4,783,905
Capital and reserves
Called up share capital
18
100,000
100,000
Share premium account
19
1,162,500
1,162,500
Profit and loss reserves
20
3,353,293
3,521,405
Total equity
4,615,793
4,783,905

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

The financial statements were approved by the board of directors and authorised for issue on 18 September 2024 and are signed on its behalf by:
18 September 2024
Mr P A Baxter
Director
Company registration number 05559305 (England and Wales)
CORPORATE TELECOMMUNICATIONS (UK) LIMITED
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
11
2,560,356
2,560,356
Current assets
Debtors
14
349,900
330,420
Cash at bank and in hand
30,000
756,308
379,900
1,086,728
Creditors: amounts falling due within one year
15
-
(86,828)
Net current assets
379,900
999,900
Net assets
2,940,256
3,560,256
Capital and reserves
Called up share capital
18
100,000
100,000
Share premium account
19
1,162,500
1,162,500
Profit and loss reserves
20
1,677,756
2,297,756
Total equity
2,940,256
3,560,256

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 £0 (2022 - £1,000,000 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 18 September 2024 and are signed on its behalf by:
18 September 2024
Mr P A Baxter
Director
Company registration number 05559305 (England and Wales)
CORPORATE TELECOMMUNICATIONS (UK) LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
100,000
1,162,500
3,184,197
4,446,697
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
1,137,208
1,137,208
Dividends
9
-
-
(800,000)
(800,000)
Balance at 31 December 2022
100,000
1,162,500
3,521,405
4,783,905
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
451,888
451,888
Dividends
9
-
-
(620,000)
(620,000)
Balance at 31 December 2023
100,000
1,162,500
3,353,293
4,615,793
CORPORATE TELECOMMUNICATIONS (UK) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
100,000
1,162,500
2,097,756
3,360,256
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
1,000,000
1,000,000
Dividends
9
-
-
(800,000)
(800,000)
Balance at 31 December 2022
100,000
1,162,500
2,297,756
3,560,256
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
-
-
0
Dividends
9
-
-
(620,000)
(620,000)
Balance at 31 December 2023
100,000
1,162,500
1,677,756
2,940,256
CORPORATE TELECOMMUNICATIONS (UK) LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
295,532
988,391
Interest paid
(112,244)
(63,486)
Income taxes paid
(201,145)
(163,133)
Net cash (outflow)/inflow from operating activities
(17,857)
761,772
Investing activities
Purchase of tangible fixed assets
(32,511)
(16,004)
Proceeds from disposal of tangible fixed assets
241
370
Interest received
11,690
2,973
Net cash used in investing activities
(20,580)
(12,661)
Financing activities
Dividends paid to equity shareholders
(620,000)
(800,000)
Net cash used in financing activities
(620,000)
(800,000)
Net decrease in cash and cash equivalents
(658,437)
(50,889)
Cash and cash equivalents at beginning of year
1,171,601
1,222,490
Cash and cash equivalents at end of year
513,164
1,171,601
CORPORATE TELECOMMUNICATIONS (UK) LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
25
(106,308)
(267,246)
Investing activities
Dividends received
-
0
1,000,000
Net cash (used in)/generated from investing activities
-
1,000,000
Financing activities
Dividends paid to equity shareholders
(620,000)
(800,000)
Net cash used in financing activities
(620,000)
(800,000)
Net decrease in cash and cash equivalents
(726,308)
(67,246)
Cash and cash equivalents at beginning of year
756,308
823,554
Cash and cash equivalents at end of year
30,000
756,308
CORPORATE TELECOMMUNICATIONS (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
1
Accounting policies
Company information

Corporate Telecommunications (UK) Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Beswick House, Green Fold Way, Leigh, Greater Manchester, WN7 3XT, England.

 

The group consists of Corporate Telecommunications (UK) 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, The principal accounting policies adopted are set out below.

Disclosure exemptions

The parent company satisfies the criteria of being a qualifying entity as defined in FRS 102, "The Financial Reporting Standard applicable in the UK and the Republic of Ireland".

 

(a) Disclosures in respect of each class of share capital have not been presented.

(b) No cash flow statement has been presented for the company.

(c) Disclosures in respect of financial instruments have not been presented.

(d) No disclosure has been given for the aggregate remuneration of key management personnel.

1.2
Basis of consolidation

The financial statements consolidate the financial statements of Corporate Telecommunications (UK) Limited and all of its subsidiary undertakings.

 

The results of subsidiaries acquired or disposed of during the year are included from or to the date that control passes.

 

The parent company has applied the exemption contained in section 408 of the Companies Act 2006 and has not presented its individual profit and loss account.

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 measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.

 

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

 

Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that it is probable the expenses recognised will be recovered.

CORPORATE TELECOMMUNICATIONS (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -

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
Tangible fixed assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

 

An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

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:

Short leasehold property
over period of the lease
Plant and equipment
10% and 20%
Fixtures and fittings
20% straight line
Computers
33% straight line

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.

1.6
Fixed asset investments

Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.

1.7
Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

 

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.

 

For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

1.8
Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition. Cost is based on the cost of purchase on a first in, first out basis.

CORPORATE TELECOMMUNICATIONS (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.9
Cash and cash equivalents

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

1.10
Financial instruments

A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument.

 

Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 

Debt instruments are subsequently measured at amortised cost.

 

Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment.

 

Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 

Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.

 

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately.

 

For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics.

 

Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

1.11
Taxation

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively.

Current tax

Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

CORPORATE TELECOMMUNICATIONS (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.12
Retirement benefits

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.

 

When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.13
Government grants

Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received.

 

Government grants are recognised using the accrual model and the performance model.

 

Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable.

 

Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset.

 

Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.

1.14
Foreign exchange

Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.

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.

CORPORATE TELECOMMUNICATIONS (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Sale of goods
20,802,690
24,525,045
Rendering of services
1,633,969
1,823,921
22,436,659
26,348,966
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
21,007,304
23,274,523
Overseas
1,429,355
3,074,443
22,436,659
26,348,966
2023
2022
£
£
Other revenue
Interest income
11,690
2,973
Grants received
-
9,000
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange (gains)/losses
(8,404)
13,879
Research and development costs
903
22,707
Government grants
-
(9,000)
Depreciation of owned tangible fixed assets
90,420
99,667
Loss/(profit) on disposal of tangible fixed assets
1,601
(370)
Operating lease charges
168,662
157,421
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
12,000
12,000
CORPORATE TELECOMMUNICATIONS (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
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
Administrative staff
13
13
-
-
Number of warehouse staff
8
9
-
-
Number of marketing staff
2
2
-
-
Number of sales staff
13
13
-
-
Total
36
37
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
1,481,096
1,590,895
-
0
-
0
Social security costs
159,029
188,796
-
-
Pension costs
112,129
91,580
-
0
-
0
1,752,254
1,871,271
-
0
-
0
7
Directors' remuneration

The director' aggregate remuneration in respect of qualifying services for the year ended 31st December 2023 was:

 

Remuneration £292,047 (2022: £343,633) .

Company contributions to defined contribution pension plans £16,120 (2022: £16,120).

Total : £308,167 (2022: £359,753).

 

The number of directors who accrued benefits under company pension plans for the year ended 31st December 2023 was: Defined contribution plans - 2 (2022: 2).

 

Remuneration of the highest paid director in respect of qualifying services for the year ended 31st December 2023 was:

 

Aggregate remuneration £175,624 (2022: £191,566).

Company contributions to defined contribution pension plans £10,000 (2022: £10,000).

Total: £185,624 (2022: £201,566).

8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
268,624
347,448
Adjustments in respect of prior periods
(4,108)
11,620
Total current tax
264,516
359,068
CORPORATE TELECOMMUNICATIONS (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
8
Taxation
2023
2022
£
£
(Continued)
- 20 -
Deferred tax
Other adjustments
(11,499)
(15,313)
Total tax charge
253,017
343,755

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
704,905
1,480,963
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
176,226
281,383
Tax effect of expenses that are not deductible in determining taxable profit
119,863
37,395
Adjustments in respect of prior years
(4,107)
11,620
Effect of change in corporation tax rate
(8,522)
14,194
Effect of capital allowances and depreciation
3,015
(837)
Foreign losses
(33,458)
-
0
Taxation charge
253,017
343,755
9
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
620,000
800,000
CORPORATE TELECOMMUNICATIONS (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
10
Tangible fixed assets
Group
Short leasehold property
Plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
£
£
Cost
At 1 January 2023
154,075
518,522
171,975
121,569
966,141
Additions
-
0
20,294
2,344
9,873
32,511
Disposals
-
0
(12,849)
(26,043)
(69,807)
(108,699)
At 31 December 2023
154,075
525,967
148,276
61,635
889,953
Depreciation and impairment
At 1 January 2023
120,903
414,900
118,497
108,057
762,357
Depreciation charged in the year
15,406
44,415
21,389
9,210
90,420
Eliminated in respect of disposals
-
0
(12,849)
(26,043)
(67,965)
(106,857)
At 31 December 2023
136,309
446,466
113,843
49,302
745,920
Carrying amount
At 31 December 2023
17,766
79,501
34,433
12,333
144,033
At 31 December 2022
33,172
103,622
53,478
13,512
203,784
The company had no tangible fixed assets at 31 December 2023 or 31 December 2022.
11
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
12
-
0
-
0
2,560,356
2,560,356
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
2,560,356
Carrying amount
At 31 December 2023
2,560,356
At 31 December 2022
2,560,356
12
Subsidiaries

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

CORPORATE TELECOMMUNICATIONS (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
12
Subsidiaries
(Continued)
- 22 -
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Corporate Direct (Europe) Limited
UK
£1 Ordinary
100.00
Gaming Headsets Limited
UK
£1 Ordinary
100.00
Agent Communications Limited
UK
£1 Ordinary
100.00
Agent Telecommunications Limited
UK
£1 Ordinary
100.00
Agent Headsets BV
Netherlands
?1 Ordinary
100.00
Agent Headsets Inc.
USA
$10 Ordinary
100.00
The aggregate capital and reserves and the result for the year of the principal trading subsidiary Corporate Direct (Europe) Limited was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Corporate Direct (Europe) Limited
4,186,929
321,635
13
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
8,463,389
6,908,942
-
0
-
0
14
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,373,098
3,371,078
-
0
-
0
Amounts owed by group undertakings
-
-
349,900
330,420
Other debtors
1,771
4,797
-
0
-
0
Prepayments and accrued income
203,545
548,975
-
0
-
0
2,578,414
3,924,850
349,900
330,420

Included within trade debtors are factored debts amounting to £2,236,694 (2023: £3,136,271).

CORPORATE TELECOMMUNICATIONS (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
15
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Trade creditors
4,420,450
4,389,850
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
-
0
86,828
Corporation tax payable
228,433
167,448
-
0
-
0
Other taxation and social security
672,695
498,160
-
-
Other creditors
1,662,702
2,270,220
-
0
-
0
Accruals and deferred income
68,822
60,375
-
0
-
0
7,053,102
7,386,053
-
0
86,828

Included within other creditors is £1,648,635 (2022: £2,269,937) for an invoice finance facility which is secured by a fixed and floating charge on the assets of the company.

16
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
30,105
39,219
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
39,219
-
Credit to profit or loss
(9,114)
-
Liability at 31 December 2023
30,105
-
17
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
112,129
91,580
CORPORATE TELECOMMUNICATIONS (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
18
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100,000
100,000
100,000
100,000
19
Share premium account
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning and end of the year
1,162,500
1,162,500
1,162,500
1,162,500
20
Profit and loss reserves
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning of the year
3,521,405
3,184,197
2,297,756
2,097,756
Profit for the year
451,888
1,137,208
-
0
1,000,000
Dividends
(620,000)
(800,000)
(620,000)
(800,000)
At the end of the year
3,353,293
3,521,405
1,677,756
2,297,756
21
Operating lease commitments

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

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
72,358
9,650
-
-
Between two and five years
212,516
370,511
-
-
284,874
380,161
-
-
22
Related party transactions
Transactions with related parties
CORPORATE TELECOMMUNICATIONS (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
22
Related party transactions
(Continued)
- 25 -

Included in debtors are loans of £923 (2022: £923) owed by Gaming Headsets Limited, £736 (2022: £736) owed by Agent Telecommunications Limited, £83 (2022: £83) owed by Agent Communications Ltd, and £348,159 (2022: £86,828 owed to) owed by Corporate Direct (Europe) Limited all subsidiary companies; and £nil (2022: £98,036) owed by Agent Headsets BV, and £nil (2022: £230,642) owed by Agent Headsets Inc, both subsidiaries of a subsidiary company.

 

Included in creditors is an amount of £nil (2022: £86,828) owed to Corporate Direct (Europe) Limited, a subsidiary company.

 

All loans are unsecured, repayable on demand and currently interest-free.

 

The company has provided a charge over its assets in respect of Corporate Direct (Europe) Limited's bank facilities.

 

23
Controlling party

The controlling party of the company is P A Baxter.

24
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
451,888
1,137,208
Adjustments for:
Taxation charged
253,017
343,755
Finance costs
112,244
63,486
Investment income
(11,690)
(2,973)
Loss/(gain) on disposal of tangible fixed assets
1,601
(370)
Depreciation and impairment of tangible fixed assets
90,420
99,669
Movements in working capital:
Increase in stocks
(1,554,447)
(1,886,595)
Decrease/(increase) in debtors
1,346,435
(160,518)
(Decrease)/increase in creditors
(393,936)
1,394,729
Cash generated from operations
295,532
988,391
CORPORATE TELECOMMUNICATIONS (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
25
Cash absorbed by operations - company
2023
2022
£
£
Profit for the year after tax
-
1,000,000
Adjustments for:
Investment income
-
0
(1,000,000)
Movements in working capital:
Increase in debtors
(19,480)
(315,686)
(Decrease)/increase in creditors
(86,828)
48,440
Cash absorbed by operations
(106,308)
(267,246)
26
Analysis of changes in net funds - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
1,171,601
(658,437)
513,164
27
Analysis of changes in net funds - company
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
756,308
(726,308)
30,000
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