REGISTERED NUMBER: 09582960 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTOR AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
TEAM EDGE LIMITED |
REGISTERED NUMBER: 09582960 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTOR AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
TEAM EDGE LIMITED |
TEAM EDGE LIMITED (REGISTERED NUMBER: 09582960) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Director | 4 |
Report of the Independent Auditors | 6 |
Consolidated Income Statement | 10 |
Consolidated Other Comprehensive Income | 11 |
Consolidated Balance Sheet | 12 |
Company Balance Sheet | 13 |
Consolidated Statement of Changes in Equity | 14 |
Company Statement of Changes in Equity | 15 |
Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Cash Flow Statement | 17 |
Notes to the Consolidated Financial Statements | 19 |
TEAM EDGE LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
DIRECTOR: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors and Chartered Accountants |
5 Brooklands Place |
Brooklands Road |
Sale |
Cheshire |
M33 3SD |
TEAM EDGE LIMITED (REGISTERED NUMBER: 09582960) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The director presents his strategic report of the company and the group for the year ended 31 December 2023. |
REVIEW OF BUSINESS |
This report aims to present a balanced view of the development and the performance of the group. |
PRINCIPAL ACTIVITIES |
The principal activities of the group are the design and sale of leading unbranded sportswear. The group is committed to the provision of high performance non branded clothing for sports teams, clubs & schools together with outstanding customer service and support with the objective of providing affordable high performance team wear. |
RESULTS AND DIVIDENDS |
The group continued to trade successfully through a period of an unsettled global market which brings on cost base challenges. |
Ordinary dividends were paid during the year of £216,222 (2022: £216,222). |
The group's results for the year are included within these financial statements. |
FUTURE DEVELOPMENTS AND INVESTMENT |
The group will continue to invest in the continuous improvement of its existing products and in the development of new innovative products to facilitate sales growth, long term sustainability and efficiency gains across a range of market sectors. This ongoing investment will ensure the group provides ever increasing levels of product quality, performance, customer service and satisfaction. |
Cyber security continues to be a focus for investment and is integrated into the organisation wide governance frameworks, including strategy, risk management processes and compliance and audit procedures. |
PRINCIPAL RISKS AND UNCERTAINTIES |
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES |
Effective working capital management is a priority to ensure the associated risks are controlled and balanced against the challenging market environment in which we operate. |
The main financial risks facing the group are those relating to rising labour costs, foreign currency exchange and the widely publicised global supply chain issues and the subsequent rising container costs. The director's policy agreed for managing these financial risks remain unchanged. The director works closely to manage any foreign exchange fluctuations and working directly with fright forwarders to ensure we have secured space on vessels from China to the UK , managing pricing and delays caused by the global impact of the current wars. |
NON - FINANCIAL RISKS AND UNCERTAINTIES |
The management of the business and the execution of the group's strategy is robust and have few risks associated. The key business risks and uncertainties affecting the group are considered to relate to a certain level of dependence on the strength of our customer base and any government changes and in addition, the group's ability to maintain adequate continuity of supply chain within the context of global uncertainties on raw material availability and demand. |
NON-FINANCIAL INFORMATION STATEMENT |
The group's key non-financial indicators are those related to employee health, safety and well-being, training, development, quality, community, and customer satisfaction. The group and our employees continue to support a wide variety of community projects. |
SUPPLIERS |
The group commits to regular engagement and collaboration with our supply chain and are committed to paying in line with supplier payment terms. |
TEAM EDGE LIMITED (REGISTERED NUMBER: 09582960) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
OUR COMMITMENT TO THE ENVIRONMENT |
Corporate objectives continue to focus on doing the right thing for our community and the environment in everything we do, we have significantly reduced paper and plastic usage throughout both manufacturing and office activities and continue to find ways of 'recycling and reusing'. |
POST BALANCE SHEET EVENTS |
Post year end the group reconstruction occurred with CT Holdings Limited demerging following the transfer by way of dividend in specie the fabric trade from Chadwick Textiles Limited. The group operates two distinct trading activities: Fabrics and Garments. The director of the group has separated the two trades for several reasons. The fabric and garments are imported from overseas, and the costs associated with the challenging logistics worldwide have been difficult to manage. The director would like to minimise risk and exposure from adverse trading conditions by separating the two trades as a means of protection going forward. In addition to protecting each trade from the other, the directors of the subsidiary company have been reflecting that each trade has its own challenges, and the separation of the trade will provide two distinct companies with differing objectives. The directors and senior management team believe the separation will provide focus with objectives being met more efficiently to improve trading going forward. The separation will give clarity of the trading expenses per division. The director's expectation is that the major focus will be on growing Garments as the margin here can be stronger and ultimately very attractive for outside investment within a period of 2 to 3 years. Fabrics already has a solid margin with a slight steadier and simpler cost base. |
ON BEHALF OF THE BOARD: |
TEAM EDGE LIMITED (REGISTERED NUMBER: 09582960) |
REPORT OF THE DIRECTOR |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The director presents his report with the financial statements of the company and the group for the year ended 31 December 2023. |
PRINCIPAL ACTIVITIES |
The principal activities of the group in the year under review were those of Quality Sportswear manufacturers |
DIVIDENDS |
The total distribution of dividends for the year ended 31 December 2023 will be £222,216 (2022: £222,216). |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTOR |
DIRECTOR'S INDEMNITY |
The company has made qualifying third party provisions for the benefit of its director which remain in force at the date of this report. |
DISCLOSURE IN THE STRATEGIC REPORT |
The director has chosen to disclose future developments, risk management, engagement with employees, supplier information, environment information and post balance sheet events in the strategic report. |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations. |
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
TEAM EDGE LIMITED (REGISTERED NUMBER: 09582960) |
REPORT OF THE DIRECTOR |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
AUDITORS |
The auditors, Harold Sharp Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
TEAM EDGE LIMITED |
Opinion |
We have audited the financial statements of Team Edge Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 group's and of the parent company affairs as at 31 December 2023 and of the group's 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 director's 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 the 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 director with respect to going concern are described in the relevant sections of this report. |
Other information |
The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors 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 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. |
The comparative figures are unaudited. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
TEAM EDGE LIMITED |
Opinions on other matters 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 Group Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Director. |
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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of director's remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of director |
As explained more fully in the Statement of Director's Responsibilities set out on page four, the director is 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 director determines 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 director is responsible for assessing the group's and 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 director either intends to liquidate the group or the parent company or to cease operations, or has no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
TEAM EDGE LIMITED |
Auditors' 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 a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
As part of our planning process: |
- We enquired of management the systems and controls the company has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. |
- We obtained an understanding of the legal and regulatory frameworks applicable to the company. We determined that the Companies Act 2006 was of most significance. |
- We considered the incentives and opportunities that exist in the company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly. |
- Using our knowledge of the company, together with the discussions held with the company at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment. |
The key procedures we undertook to detect irregularities including fraud during the course of the audit included: |
- Identifying and testing journal entries and the overall accounting records, in particular those that were significant and unusual. |
- Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied. |
- Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates, in particular in relation to stock provision and accrued costs. |
- Testing key revenue lines, in particular cut-off, for evidence of management bias. |
- Performing a physical verification of key assets, including stock. |
- Obtaining third-party confirmation of material bank balances. |
- Documenting and verifying all significant related party and consolidated balances and transactions. |
- Reviewing documentation such as the company board minutes, correspondence with solicitors, for discussions of irregularities including fraud. |
- Testing all material consolidation adjustments. |
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the directors and management. |
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 Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
TEAM EDGE LIMITED |
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 a Report of the Auditors 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 |
Statutory Auditors and Chartered Accountants |
5 Brooklands Place |
Brooklands Road |
Sale |
Cheshire |
M33 3SD |
TEAM EDGE LIMITED (REGISTERED NUMBER: 09582960) |
CONSOLIDATED INCOME STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
(Unaudited) |
Notes | £ | £ | £ | £ |
TURNOVER | 3 | 10,657,810 | 10,505,256 |
Cost of sales | 5,087,256 | 5,312,445 |
GROSS PROFIT | 5,570,554 | 5,192,811 |
Distribution costs | 451,434 | 326,997 |
Administrative expenses | 3,958,515 | 3,401,636 |
4,409,949 | 3,728,633 |
OPERATING PROFIT | 5 | 1,160,605 | 1,464,178 |
Interest payable and similar expenses | 6 | 107,713 | 89,297 |
PROFIT BEFORE TAXATION | 1,052,892 | 1,374,881 |
Tax on profit | 7 | 407,824 | 278,013 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 645,068 | 1,096,868 |
TEAM EDGE LIMITED (REGISTERED NUMBER: 09582960) |
CONSOLIDATED OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
(Unaudited) |
Notes | £ | £ |
PROFIT FOR THE YEAR | 645,068 | 1,096,868 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
645,068 |
1,096,868 |
Total comprehensive income attributable to: |
Owners of the parent | 645,068 | 1,096,868 |
TEAM EDGE LIMITED (REGISTERED NUMBER: 09582960) |
CONSOLIDATED BALANCE SHEET |
31 DECEMBER 2023 |
2023 | 2022 |
(Unaudited) |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 | 313,338 | 239,524 |
Investments | 11 | - | - |
313,338 | 239,524 |
CURRENT ASSETS |
Stocks | 12 | 3,085,488 | 4,503,199 |
Debtors | 13 | 2,284,450 | 2,100,849 |
Cash at bank and in hand | 261,410 | 88,947 |
5,631,348 | 6,692,995 |
CREDITORS |
Amounts falling due within one year | 14 | 2,068,814 | 3,511,429 |
NET CURRENT ASSETS | 3,562,534 | 3,181,566 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
3,875,872 |
3,421,090 |
CREDITORS |
Amounts falling due after more than one year | 15 | (70,509 | ) | (40,756 | ) |
PROVISIONS FOR LIABILITIES | 20 | (31,223 | ) | (29,046 | ) |
NET ASSETS | 3,774,140 | 3,351,288 |
CAPITAL AND RESERVES |
Called up share capital | 21 | 112 | 112 |
Retained earnings | 22 | 3,774,028 | 3,351,176 |
SHAREHOLDERS' FUNDS | 3,774,140 | 3,351,288 |
The financial statements were approved by the director and authorised for issue on 26 September 2024 and were signed by: |
J D Chadwick - Director |
TEAM EDGE LIMITED (REGISTERED NUMBER: 09582960) |
COMPANY BALANCE SHEET |
31 DECEMBER 2023 |
2023 | 2022 |
(Unaudited) |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 |
Investments | 11 |
CURRENT ASSETS |
Debtors | 13 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
( |
) |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Retained earnings | 22 | ( |
) |
SHAREHOLDERS' FUNDS | ( |
) |
Company's profit for the financial year | 975,829 | 222,214 |
The financial statements were approved by the director and authorised for issue on |
TEAM EDGE LIMITED (REGISTERED NUMBER: 09582960) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2022 | 112 | 2,476,524 | 2,476,636 |
Changes in equity |
Dividends | - | (222,216 | ) | (222,216 | ) |
Total comprehensive income | - | 1,096,868 | 1,096,868 |
Balance at 31 December 2022 | 112 | 3,351,176 | 3,351,288 |
Changes in equity |
Dividends | - | (222,216 | ) | (222,216 | ) |
Total comprehensive income | - | 645,068 | 645,068 |
Balance at 31 December 2023 | 112 | 3,774,028 | 3,774,140 |
TEAM EDGE LIMITED (REGISTERED NUMBER: 09582960) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2022 | ( |
) | ( |
) |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2022 | ( |
) | ( |
) |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2023 |
TEAM EDGE LIMITED (REGISTERED NUMBER: 09582960) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
(Unaudited) |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 1,545,280 | 226,892 |
Interest paid | (107,713 | ) | (89,297 | ) |
Tax paid | (668,857 | ) | 1,796 |
Net cash from operating activities | 768,710 | 139,391 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (213,132 | ) | (31,025 | ) |
Sale of tangible fixed assets | 7,499 | - |
Net cash from investing activities | (205,633 | ) | (31,025 | ) |
Cash flows from financing activities |
Capital repayments in year | 610 | (51,685 | ) |
Amount introduced by directors | 522,059 | 411,345 |
Amount withdrawn by directors | (492,104 | ) | (522,059 | ) |
Equity dividends paid | (222,216 | ) | (222,216 | ) |
Net cash from financing activities | (191,651 | ) | (384,615 | ) |
Increase/(decrease) in cash and cash equivalents | 371,426 | (276,249 | ) |
Cash and cash equivalents at beginning of year |
2 |
(345,325 |
) |
(69,076 |
) |
Cash and cash equivalents at end of year | 2 | 26,101 | (345,325 | ) |
TEAM EDGE LIMITED (REGISTERED NUMBER: 09582960) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
(Unaudited) |
£ | £ |
Profit before taxation | 1,052,892 | 1,374,881 |
Depreciation charges | 122,380 | 110,791 |
Loss on disposal of fixed assets | 9,440 | - |
Finance costs | 107,713 | 89,297 |
1,292,425 | 1,574,969 |
Decrease/(increase) in stocks | 1,417,711 | (1,744,010 | ) |
(Increase)/decrease in trade and other debtors | (213,556 | ) | 383,305 |
(Decrease)/increase in trade and other creditors | (951,300 | ) | 12,628 |
Cash generated from operations | 1,545,280 | 226,892 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 December 2023 |
31/12/23 | 1/1/23 |
£ | £ |
Cash and cash equivalents | 261,410 | 88,947 |
Bank overdrafts | (235,309 | ) | (434,272 | ) |
26,101 | (345,325 | ) |
Year ended 31 December 2022 |
31/12/22 | 1/1/22 |
(Unaudited) |
£ | £ |
Cash and cash equivalents | 88,947 | 212,979 |
Bank overdrafts | (434,272 | ) | (282,055 | ) |
(345,325 | ) | (69,076 | ) |
TEAM EDGE LIMITED (REGISTERED NUMBER: 09582960) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1/1/23 | Cash flow | At 31/12/23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 88,947 | 172,463 | 261,410 |
Bank overdrafts | (434,272 | ) | 198,963 | (235,309 | ) |
(345,325 | ) | 371,426 | 26,101 |
Debt |
Finance leases | (123,033 | ) | (610 | ) | (123,643 | ) |
(123,033 | ) | (610 | ) | (123,643 | ) |
Total | (468,358 | ) | 370,816 | (97,542 | ) |
TEAM EDGE LIMITED (REGISTERED NUMBER: 09582960) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | STATUTORY INFORMATION |
Team Edge Limited is a private company limited by shares, incorporated in England and Wales. The company's registered number is 09582960 and the registered office is 92 George Richards Way, Broadheath, Altrincham, Cheshire, WA14 5ZR. The company is a holding company. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006. |
The presentation and operational currency is £1 sterling. |
Basis of consolidation |
The group financial statements consolidate the financial statements of the company and all of its subsidiaries for the year ended 31 December 2023. Any internal sales and profits are eliminated on consolidation and any goodwill arising on consolidation has been written off against accumulated profits carried forward. |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
TEAM EDGE LIMITED (REGISTERED NUMBER: 09582960) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Critical accounting judgements and key sources of estimation uncertainty |
In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. |
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows. |
Provisions |
A provision is recognised in the balance sheet when the entity has a present legal or constructive obligation as a result of a past event, that can be reliably measured and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are recognised at the best estimate of the amount required to settle the obligation at the reporting date. |
Stock provision |
Stocks are initially measured at the transaction price and subsequently measured at cost, less obsolescence provision. The directors make estimates as to the recoverability of these stocks and provide for them accordingly. |
Accrued stock costs |
Accrued stock expenditure is estimated by directors at each year end to ensure that all known liabilities are accounted for in the financial statements. |
From a completeness perspective, the directors are not aware of any other critical judgements within the company that give rise to a significant risk of material adjustment within the next financial year. |
TEAM EDGE LIMITED (REGISTERED NUMBER: 09582960) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Revenue |
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised: |
Sale of goods |
Revenue from the sale of goods is recognised when all of the following conditions are satisfied: |
- | the Company has transferred the significant risks and rewards of ownership to the buyer; |
- | the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; |
- | the amount of revenue can be measured reliably; |
- | it is probable that the Company will receive the consideration due under the transaction; and |
- | the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
Rendering of services |
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied: |
- | the amount of revenue can be measured reliably; |
- | it is probable that the Company will receive the consideration due under the contract; |
- | the stage of completion of the contract at the end of the reporting period can be measured reliably; and |
- | the costs incurred and the costs to complete the contract can be measured reliably. |
Tangible fixed assets |
Short leasehold | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
All fixed assets are initially recorded at cost. Assets are not depreciated until they are brought into use. |
Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. |
Short leasehold refers to improvements to a rented property. |
At each balance sheet date, the company reviews the carrying amounts of its furniture and equipment to determine whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss, if any. |
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. Impairment loss is recognised as an expense immediately. |
Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised as income immediately. |
TEAM EDGE LIMITED (REGISTERED NUMBER: 09582960) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Cost is based on purchase invoice plus freight and duty cost after allowing for exchange conversion to sterling. |
Stocks comprise garments and fabric. |
Financial instruments |
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non puttable ordinary shares. |
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in the case of an out right short term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost. |
Investments in non convertible preference shares and in non puttable ordinary and preference shares are measured: |
- | at fair value with changes recognised in the Statement of comprehensive income if the shares are publicly traded or their fair value can otherwise be measured reliably; |
- | at cost less impairment for all other investments. |
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of comprehensive income. |
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. |
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date. |
Financial assets and liabilities are offset and the net amount reported in the Balance sheet when there is an 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. |
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 income as appropriate. The company does not currently apply hedge accounting for interest rate and foreign exchange derivatives. |
TEAM EDGE LIMITED (REGISTERED NUMBER: 09582960) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Tax is recognised in the Statement of comprehensive income, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively. |
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
TEAM EDGE LIMITED (REGISTERED NUMBER: 09582960) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Interest income |
Interest income is recognised in the Statement of comprehensive income using the effective interest method. |
Finance costs |
Finance costs are charged to the Statement of comprehensive income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument. |
Debtors |
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment. |
Cash and cash equivalents |
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value. |
Creditors |
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method. |
Dividends |
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting. |
Invoice discounting |
The company has an invoice discounting agreement that enables it to receive advances against its sales invoices. The company discloses both the debtors and creditors relating to this agreement separately within its balance sheet. |
Going concern |
At the balance sheet date of 31 December 2023, the group made a profit for the year of £645,068 (2022: £1,096,868), and had net assets at that date of £3,774,140 (2022: £3,351,288). |
The group has cash reserves as at the date of approval of the financial statements. The director considers that the group has sufficient working capital to enable it to continue to trade and meet its liabilities as they fall due for at least the next twelve months from the date of approval of the financial statements. For this reason, they continue to adopt the going concern basis in preparing the financial statements for the year ended 31 December 2023. |
TEAM EDGE LIMITED (REGISTERED NUMBER: 09582960) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the principal activities of the group. |
An analysis of turnover by class of business is given below: |
2023 | 2022 |
(Unaudited) |
£ | £ |
Garments | 9,016,810 | 8,920,037 |
Fabric | 1,641,000 | 1,585,219 |
10,657,810 | 10,505,256 |
An analysis of turnover by geographical market is given below: |
2023 | 2022 |
(Unaudited) |
£ | £ |
United Kingdom | 10,179,349 | 10,067,981 |
Europe | 473,043 | 430,190 |
ROW | 5,418 | 7,085 |
10,657,810 | 10,505,256 |
4. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
(Unaudited) |
£ | £ |
Wages and salaries | 2,804,732 | 2,293,672 |
Social security costs | 286,015 | 274,975 |
Other pension costs | 77,843 | 56,996 |
3,168,590 | 2,625,643 |
The average number of employees during the year was as follows: |
2023 | 2022 |
(Unaudited) |
Admin | 10 | 7 |
Sales | 9 | 8 |
Operations | 29 | 27 |
The average number of employees by undertakings that were proportionately consolidated during the year was NIL (2022 - NIL). |
TEAM EDGE LIMITED (REGISTERED NUMBER: 09582960) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
4. | EMPLOYEES AND DIRECTORS - continued |
2023 | 2022 |
(Unaudited) |
£ | £ |
Director's remuneration | 625,059 | 711,250 |
Information regarding the highest paid director is as follows: |
2023 | 2022 |
(Unaudited) |
£ | £ |
Emoluments etc | 625,059 | 711,250 |
5. | OPERATING PROFIT |
The operating profit is stated after charging: |
2023 | 2022 |
(Unaudited) |
£ | £ |
Other operating leases | 6,594 | 2,827 |
Depreciation - owned assets | 95,827 | 91,773 |
Depreciation - assets on hire purchase contracts | 26,552 | 19,020 |
Loss on disposal of fixed assets | 9,440 | - |
Auditors remuneration | 18,100 | - |
Auditors remuneration for non audit services is £1,400 (2022: £3,775). |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
(Unaudited) |
£ | £ |
Bank interest | 45,488 | 42,557 |
Other interest payable | 17,137 | 14,903 |
Stock financing interest | 45,088 | 31,837 |
107,713 | 89,297 |
TEAM EDGE LIMITED (REGISTERED NUMBER: 09582960) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
(Unaudited) |
£ | £ |
Current tax: |
UK corporation tax | 259,498 | 279,336 |
No description | 146,148 | - |
Total current tax | 405,646 | 279,336 |
Deferred tax | 2,178 | (1,323 | ) |
Tax on profit | 407,824 | 278,013 |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
(Unaudited) |
£ | £ |
Profit before tax | 1,052,892 | 1,374,881 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2022 - 19 %) |
263,223 |
261,227 |
Effects of: |
Expenses not deductible for tax purposes | 12,529 | 5,798 |
Depreciation in excess of capital allowances | 68 | 12,311 |
Adjustments to tax charge in respect of previous periods | 146,148 | - |
Rate change | (16,322 | ) | - |
Deferred tax movement | 2,178 | (1,323 | ) |
Total tax charge | 407,824 | 278,013 |
8. | INDIVIDUAL PROFIT AND LOSS ACCOUNT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
9. | DIVIDENDS |
2023 | 2022 |
(Unaudited) |
£ | £ |
Ordinary shares of £0.01 each |
Interim | 222,216 | 222,216 |
TEAM EDGE LIMITED (REGISTERED NUMBER: 09582960) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
10. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Short | Plant and | and |
leasehold | machinery | fittings |
£ | £ | £ |
COST |
At 1 January 2023 | 84,350 | 135,487 | 132,118 |
Additions | - | 41,250 | 49,529 |
Disposals | (11,685 | ) | (8,525 | ) | (41,650 | ) |
At 31 December 2023 | 72,665 | 168,212 | 139,997 |
DEPRECIATION |
At 1 January 2023 | 49,760 | 57,138 | 63,216 |
Charge for year | 16,480 | 20,263 | 49,381 |
Eliminated on disposal | (11,685 | ) | (8,525 | ) | (41,651 | ) |
At 31 December 2023 | 54,555 | 68,876 | 70,946 |
NET BOOK VALUE |
At 31 December 2023 | 18,110 | 99,336 | 69,051 |
At 31 December 2022 | 34,590 | 78,349 | 68,902 |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 January 2023 | 110,483 | 21,183 | 483,621 |
Additions | 119,826 | 2,527 | 213,132 |
Disposals | (70,488 | ) | (8,979 | ) | (141,327 | ) |
At 31 December 2023 | 159,821 | 14,731 | 555,426 |
DEPRECIATION |
At 1 January 2023 | 62,284 | 11,699 | 244,097 |
Charge for year | 29,540 | 6,715 | 122,379 |
Eliminated on disposal | (53,548 | ) | (8,979 | ) | (124,388 | ) |
At 31 December 2023 | 38,276 | 9,435 | 242,088 |
NET BOOK VALUE |
At 31 December 2023 | 121,545 | 5,296 | 313,338 |
At 31 December 2022 | 48,199 | 9,484 | 239,524 |
TEAM EDGE LIMITED (REGISTERED NUMBER: 09582960) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
10. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and | Motor |
machinery | vehicles | Totals |
£ | £ | £ |
COST |
At 1 January 2023 | - | 110,483 | 110,483 |
Additions | 29,300 | 78,849 | 108,149 |
Disposals | - | (70,488 | ) | (70,488 | ) |
Transfer to ownership | - | (39,995 | ) | (39,995 | ) |
At 31 December 2023 | 29,300 | 78,849 | 108,149 |
DEPRECIATION |
At 1 January 2023 | - | 62,284 | 62,284 |
Charge for year | 5,860 | 20,692 | 26,552 |
Eliminated on disposal | - | (53,548 | ) | (53,548 | ) |
Transfer to ownership | - | (21,588 | ) | (21,588 | ) |
At 31 December 2023 | 5,860 | 7,840 | 13,700 |
NET BOOK VALUE |
At 31 December 2023 | 23,440 | 71,009 | 94,449 |
At 31 December 2022 | - | 48,199 | 48,199 |
11. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
TEAM EDGE LIMITED (REGISTERED NUMBER: 09582960) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
11. | FIXED ASSET INVESTMENTS - continued |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: 92 George Richards Way, Broadheath, Altrincham, Cheshire, WA14 5ZR |
Nature of business: |
% |
Class of shares: | holding |
Registered office: 92 George Richards Way, Broadheath, Altrincham, Cheshire, WA14 5ZR |
Nature of business: |
% |
Class of shares: | holding |
The company is a sub-subsidiary of Team Edge Limited. |
12. | STOCKS |
Group |
2023 | 2022 |
(Unaudited |
£ | £ |
Finished goods | 3,085,488 | 4,503,199 |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
(Unaudited) | (Unaudited) |
£ | £ | £ | £ |
Trade debtors | 1,229,299 | 1,340,171 |
Other debtors | 485,936 | 178,255 |
Directors' current accounts | 492,104 | 522,059 | - | - |
Prepayments | 77,111 | 60,364 |
2,284,450 | 2,100,849 |
The amount of invoice discounted debts included within trade debtors at the year end is £1,089,878 (2022: £1,240,936). |
TEAM EDGE LIMITED (REGISTERED NUMBER: 09582960) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
(Unaudited) | (Unaudited) |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 16) | 235,309 | 434,272 |
Hire purchase contracts (see note 17) | 53,134 | 82,277 |
Trade creditors | 707,263 | 641,680 |
Amounts owed to group undertakings | - | - |
Tax | 259,497 | 522,708 |
Social security and other taxes | 408,245 | 456,791 |
Other creditors | 79,383 | 971,806 |
Amounts owed to related parties | 30,450 | 30,450 | - | - |
Accrued expenses | 295,533 | 371,445 |
2,068,814 | 3,511,429 |
Amounts owed to group undertakings are repayable on demand and accrue no interest. |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2023 | 2022 |
(Unaudited |
£ | £ |
Hire purchase contracts (see note 17) | 70,509 | 40,756 |
16. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
2023 | 2022 |
(Unaudited |
£ | £ |
Amounts falling due within one year or on | demand: |
Bank overdrafts | 235,309 | 434,272 |
TEAM EDGE LIMITED (REGISTERED NUMBER: 09582960) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2023 | 2022 |
(Unaudited |
£ | £ |
Net obligations repayable: |
Within one year | 53,134 | 82,277 |
Between one and five years | 70,509 | 40,756 |
123,643 | 123,033 |
Group |
Non-cancellable operating | leases |
2023 | 2022 |
(Unaudited) |
£ | £ |
Within one year | 126,000 | 126,000 |
Between one and five years | 252,000 | 378,000 |
378,000 | 504,000 |
Operating leases include rental commitments for the property that the group transacts its business from. |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2023 | 2022 |
(Unaudited |
£ | £ |
Bank overdrafts | 235,309 | 434,272 |
Hire purchase | 123,643 | 123,033 |
- | 836,118 |
358,952 | 1,393,423 |
The bank borrowings of the group represent amounts owed in respect of an import loan facility and are secured by a debenture on the group's assets in favour of HSBC. |
At 31 December 2023 other creditors includes liabilities relating to an invoice discounting facility amounting to a creditor of £nil (2022: £836,118) which are secured by a debenture over the assets of the group, in favour of HSBC. The balance for invoice discounting at 31 December 2023 was a debtor of £391k. |
Hire purchase creditors are secured on the assets they are in respect of. |
TEAM EDGE LIMITED (REGISTERED NUMBER: 09582960) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
19. | FINANCIAL INSTRUMENTS |
GROUP |
Carrying amount of financial assets |
At 31 December 2023 debt instruments measured at amortised cost amounted to £2,468,749 (2022: £2,129,432). |
Carrying amount of financial liabilities |
Carrying amount of financial liabilities measured at amortised cost at 31 December 2023 amounted to £1,176,046 (2022: £2,201,241). |
COMPANY |
Carrying amount of financial assets |
At 31 December 2023 debt instruments measured at amortised cost amounted to £8,338 (2022: £8,363). |
At 31 December 2023 equity instruments measured at cost less impairment £750,002 (2022: £750,002). |
Carrying amount of financial liabilities |
Carrying amount of financial liabilities measured at amortised cost at 31 December 2023 amounted to £17,956 (2022: £771,594). |
20. | PROVISIONS FOR LIABILITIES |
Group |
2023 | 2022 |
(Unaudited |
£ | £ |
Deferred tax | 31,223 | 29,046 |
Group |
Deferred |
tax |
£ |
Balance at 1 January 2023 | 29,046 |
Provided during year | 2,177 |
Balance at 31 December 2023 | 31,223 |
The balance comprises the tax effect of accelerated capital allowances of £31,223 (2022 : £29,046). |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £0.01 | 112 | 112 |
Ordinary shares have full voting rights. |
TEAM EDGE LIMITED (REGISTERED NUMBER: 09582960) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
22. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1 January 2023 | 3,351,176 |
Profit for the year | 645,068 |
Dividends | (222,216 | ) |
At 31 December 2023 | 3,774,028 |
Company |
Retained |
earnings |
£ |
At 1 January 2023 | ( |
) |
Profit for the year |
Dividends | ( |
) |
At 31 December 2023 |
23. | PENSION COMMITMENTS |
The group operates a defined contribution pension scheme for the benefit of the director and employees. The assets of the scheme are administered by trustees in funds independent of those from the group. |
24. | CONTINGENT LIABILITIES |
On 14 November 2022 the company along with its subsidiary company, C T Holdings Limited, entered into an unlimited cross guarantee in favour of HSBC Bank plc to secure the borrowings of its subsidiary company, Chadwick Textiles Limited. At 31 December 2023 the amounts outstanding in respect of this liability was £ 235,309 (2022: £1,270,390). The security for this guarantee is a fixed and floating charge over the company's assets. |
TEAM EDGE LIMITED (REGISTERED NUMBER: 09582960) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
25. | DIRECTOR'S ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to a director subsisted during the years ended 31 December 2023 and 31 December 2022: |
2023 | 2022 |
(Unaudited) |
£ | £ |
J D Chadwick |
Balance outstanding at start of year | 522,059 | 411,345 |
Amounts advanced | 349,318 | 310,714 |
Amounts repaid | (379,273 | ) | (200,000 | ) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | 492,104 | 522,059 |
The director's loan balance is interest free and is repaid each year by bonuses and dividends. |
26. | RELATED PARTY DISCLOSURES |
Included within creditors is a balance of £30,450 (2022: £30,450) owed to CT Pension Scheme Altrincham, a pension scheme that the director J Chadwick is a beneficiary of. The balance arises due to rental of property owned by the pension scheme. Included within other debtors is a balance of £34,000 (2022: £34,000) owed by CT Pension Scheme Altrincham. |
Included within other debtors is a rent deposit of £60,900 (2022: £60,900) in respect of the property rented from CT Pension Scheme Altrincham. |
Included within wages is an amount of £524,002 (2022: £164,794) in respect of design and implementation costs for C Chadwick, wife of the director, J Chadwick. |
Included within other creditors is a balance of £7,554 (2022: £83,355 owed from) owed to David Chadwick, a director of Edge Trainingwear Limited. The loan is interest free and has been repaid since the year end. |
Included within other creditors is a balance of £nil (2022: £65,000) owed to G Bramall, father-in-law of J D Chadwick. The loan was interest bearing, a charge of £1,898 is included within the company's profit and loss account during the year. The loan was repaid during the year. |
At 31 December 2023 the company wrote off the amount of £753,615 owed to its subsidiary companies. The amount has been included in the company's profit and loss account for the year. |
Key management personnel are the director J D Chadwick along with the directors of Chadwick Textiles Limited, T E Roberts and J Wilmott. Amounts paid to the key management personnel by the group were remuneration of £938,742,(2022: £859,653) pension contributions of £24,197 (2022: £6,193) and dividends of £222,216 (2022: £222,216). |
27. | POST BALANCE SHEET EVENTS |
On 9 February 2024 Chadwick Textiles Limited transferred its fabric trade by way of a dividend in specie to its parent company, C T Holdings Limited. On 10 February 2024 the director carried out a group reconstruction to move C T Holdings Limited out of the group into a new group headed up by C T Fabrics Team Limited to carry out on the fabrics trade. The Team Edge group have a new holding company, J.D.C. Holdco Limited, which heads up the garments group. |
TEAM EDGE LIMITED (REGISTERED NUMBER: 09582960) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
28. | ULTIMATE CONTROLLING PARTY |
The controlling party is J D Chadwick. |
The ultimate controlling party is J D Chadwick. |
29. | PROPOSED DIVIDEND |
The group resolved on 31 August 2024 to pay a dividend in respect of the year ended 31 December 2023 of £222,216. |