Company registration number 06316694 (England and Wales)
TEXEL HOLDINGS LIMITED
AND SUBSIDIARIES
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
TEXEL HOLDINGS LIMITED
AND SUBSIDIARIES
COMPANY INFORMATION
Directors
Mr A Lennard
Mr M Riley
Secretary
Mrs S Lennard
Mr M Riley
Company number
06316694
Registered office
Gable House
239 Regents Park Road
London
N3 3LF
Auditor
SPW (UK) LLP
Gable House
239 Regents Park Road
London
N3 3LF
TEXEL HOLDINGS LIMITED
AND SUBSIDIARIES
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Group statement of comprehensive income
9
Group statement of financial position
10
Company statement of financial position
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Company statement of cash flows
15
Notes to the financial statements
16 - 40
TEXEL HOLDINGS LIMITED
AND SUBSIDIARIES
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The directors present their strategic report for the year ended 31 December 2023.
Review of the business
The principal activity of the group continued to be that of an international insurance broker through its accreditation at Lloyds of London and its authorisations in other regulated insurance markets over the world, involving the origination, placement and servicing of international trade credit and political risks.
Other group activities include corporate finance transactions involving the origination, structuring and placement of international debt with a variety of financial institutions; property holding and development; and mining and exploration activities.
The insurance mediation activities of the group resulted in a net profit of $5.1 million (2022 - $4.2 million) for the year.
The mining activities of the group resulted in a net loss of $692,412 (2022 - $6.8 million) for the year. Although mining activities are continuing, the Chassoul mine was officially closed on 4 May 2023 when the concession over this mine was returned to the Government of Costa Rica. Mining equipment and operations were transferred to the Area II property (Macacona mine) which property was acquired by the group during the year. The group is continuing its mining operations at the Macacona mine and is in the process of applying for a mining and exploration permit from the Directorate of Geology and Mines in Costa Rica covering part of the property. Other mining activities include the extraction and sale of precious metals from the processing of electronic waste, and delivery of laboratory services to the mining industry.
The results and financial position of the group at year end were considered satisfactorily by the directors who expect continued growth in the foreseeable future.
Key performance indicators
The group monitors business performance according to a variety of Key Performance Indicators (KPI's) focusing on growing profitabilty with improving margins to yield positive economic benefits. The group continued to progress during the year.
2023
2022
$
$
Turnover
34,506,695
32,078,292
Net Profit/(loss)
4,625,652
(2,724,527)
Shareholders' funds
53,426,316
43,710,758
TEXEL HOLDINGS LIMITED
AND SUBSIDIARIES
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Environmental, Social and Governance (ESG)
The Company has always placed the utmost importance on corporate social responsibility and continue to do so through its employee welfare policies, the work of the Texel Foundation, its Diversity and Inclusion Committee and policies, and through the implementation of a fully integrated environmental strategy.
The Texel Foundation provides grants to a range of charities and promotes social causes covering health, education, social impact, and artistic opportunity.
A key part of the Company’s environmental strategy is the reduction of its carbon emissions to the greatest extent possible, and management of the impact of our unavoidable emissions.
The Company encourages its clients to participate in more sustainable transactions and through the implementation of a Green Impact Investment Contribution policy, the net profit realised from sustainable transactions placed by the Company is invested into an environmentally focused impact investment fund on a quarterly basis.
The Company is a signatory of the United Nations Environment Programme’s Principles for Sustainable Insurance (UN PSI) which assisted the Company to further develop its ESG strategy and ensuring that the Company can hold itself accountable to the highest industry standards. The Company has published its Second annual UN PSI disclosure report, and intends to publish further disclosure reports on an annual basis per our commitments as a UN PSI signatory.
The Company continues to improve its Environmental Social & Governance (ESG) rating, which is assessed annually by an independent ESG rating assessor, Ecovadis. We are working to implement improvements in the areas identified by Ecovadis to improve our rating further.
The Company is committed to further develop and implement policies covering ethics, human rights and environmental awareness as a step forward towards improving its Corporate Social Responsibility.
Principal risks and uncertainties
The Board of directors places high priority on the implementation of controls and the identification of measures to mitigate the principal risks and uncertainties facing the group. Regular risk reviews are conducted to identify risk factors that may affect the group and impact on its financial performance and future performance.
The Board is satisfied that the Group's principal risks identified as Commercial, Regulatory, Reputational and Operational, are sufficiently managed by the Group in the international environment where the Group conducts it's business.
Financial Instruments form part of principal risks and uncertainties managed by the Group and further details are provided in the Directors Report.
Mr A Lennard
Director
2 July 2024
TEXEL HOLDINGS LIMITED
AND SUBSIDIARIES
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
The directors present their report and the financial statements for the year ended 31 December 2023.
Results and dividends
The results for the year are set out on page 9.
During the year no ordinary dividends were paid and the directors have not recommended the payment of a final dividend for the year.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr A Lennard
Mr M Riley
Financial instruments
Treasury operations and financial instruments
The group operates a treasury function which is responsible for managing the liquidity, interest and foreign currency risks associated with it's operating activities.
The group’s principal financial instruments include derivatives, the purpose of which is to manage currency risks and interest rate risks arising from the group’s activities; also bank overdrafts, loans and corporate bonds, the main purpose of which is to raise finance for the group’s operations. In addition, the group has various other financial assets and liabilities such as trade debtors and trade creditors arising directly from its operations. Derivative transactions in the group principally comprise forward exchange contracts. In accordance with the group’s treasury policy, derivative instruments are not entered into for speculative purposes.
Liquidity risk
The group manages its cash and borrowing requirements centrally in order to maximise interest income and minimise interest expense, whilst ensuring the group has sufficient liquid resources to meet the operating needs of each business.
Interest rate risk
The group is exposed to cash flow interest rate risk on floating rate deposits, bank overdrafts and loans.
Foreign currency risk
The group’s principal foreign currency exposures arise from income being received in mainly US Dollars and overhead expenditure that is incurred in the local currency where the business entity is situated. Group policy permits but does not demand that these exposures may be hedged in order to fix cost in US Dollars. This hedging activity involves the use of foreign exchange forward contracts.
Credit risk
Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board.
All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.
Future developments
The group is able to continue to deliver a sound service because of its financial and operational strength. It continues with its commitment to work according to prudent principles for the long term benefit of shareholders, employees and clients alike.
TEXEL HOLDINGS LIMITED
AND SUBSIDIARIES
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Auditor
The auditor, SPW (UK) LLP, are deemed to be reappointed under section 487(2) of the Companies Act 2006.
Energy and carbon report
As the group qualifies as a medium size group it is not required to report on its emissions, energy consumption or energy efficiency activities in detail in this reporting period.
Statement of directors' responsibilities
The directors are responsible for preparing the Strategic Report, Directors' 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) unless indicated outherwise. 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:
- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Group's transactions and disclose with reasonable accuracy at any time the financial position of the Group and the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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 A Lennard
Director
2 July 2024
TEXEL HOLDINGS LIMITED
AND SUBSIDIARIES
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TEXEL HOLDINGS LIMITED
- 5 -
Qualified opinion on financial statements
We have audited the financial statements of Texel Holdings 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, except for the possible effects of the matters described in the paragraphs of Basis for qualified opinion in our report below, the financial statements:
give a true and fair view of the state of the group's and the parent company's 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 qualified opinion
Employee Benefit Trust
Included in the Group Statement of Financial Position is an intermediate payment arrangement of $6.86 million disclosed as a long-term investment under Fixed assets which is a departure from UK GAAP. We refer to note 1.7 - Fixed asset investments, note 1.19 - Intermediate payment arrangements and note 32 - Texel Employee Benefit Trust in that the directors are of the opinion that the adopted accounting policy results in true and fair presentation of the group results for the year.
In terms of UK GAAP the intermediate payment arrangement of $6.86 million should be disclosed in the Group Statement of Financial Position as a negative reserve within equity.
The departure from UK GAAP in the financial statements in respect of the intermediate payment arrangements has no effect on the net profit and corporation tax of the group for the year.
Due to adjustments required in terms of UK GAAP for the matter described above, the net equity of the Group at year end should be reflected as $46.5 million instead of $53.4 million as disclosed in the Group Statement of Financial Position as at 31 December 2023.
Tangible Fixed Assets
Included in the Group Statement of Financial Position under Tangible assets are gold processing plant and mining exploration and evaluation assets carried at $5.48 million and $874,886 respectively. The gold processing plant was transferred to a new mining area which is located in a property that was acquired by the group during the year. The group is in the process of applying for a mining concession over part of the property. Further, there are indications that exist that the recoverable values of these assets could be lower than their book values at year end. The directors are planning to continue with mining operations in the foreseeable future and under the circumstances the Company have not prepared an impairment analysis to consider the recoverable value of these assets. We were unable to perform the necessary audit procedures to consider the recoverable value of these assets and a possible impairment value has not been determined, which, if it exists, should be recognised in the financial statements as at 31 December 2023.
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 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.
TEXEL HOLDINGS LIMITED
AND SUBSIDIARIES
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TEXEL HOLDINGS LIMITED
- 6 -
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.
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:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of 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 strategic report and the directors' report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept 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 directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the 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.
TEXEL HOLDINGS LIMITED
AND SUBSIDIARIES
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TEXEL HOLDINGS LIMITED
- 7 -
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
The objectives of our audit, in respect to detecting irregularities including fraud, are;
to identify and assess the risks of material misstatement of the financial statements due to fraud;
to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses;
and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.
The audit team obtained an understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant are those that relate to the reporting framework (FRS102 and the Companies Act 2006), the relevant UK tax compliance regulations and Data Protection Regulation (GDPR).
We understood how the company complies with laws and regulations by making enquiries of management, internal audit, those responsible for legal and compliance procedures. We made enquiries through our review of board minutes and internal controls process documentation and considered the results of our audit procedures.
We assessed the susceptibility of the company’s financial statements to material misstatement, including how fraud might occur by meeting with management to discuss areas where we considered there was susceptibility to fraud. We considered the internal controls that the company has implemented to address any risks identified, or to prevent, deter and detect fraud, and how senior management monitor them.
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.
In addition to the above, our procedures to respond to the risks identified included the following:
reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
enquiring of management and in-house legal counsel concerning actual and potential litigation and claims, and instances of non-compliance with laws and regulations; and
reading minutes of meetings of those charged with governance
The key audit areas identified at planning included revenue recognition, accounting estimates, translations from foreign exchanges and testing manual journals. We planned and designed our work to provide reasonable assurance that the financial statements were free from fraud or error. However due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected an irregularity or fraud that could result in a material misstatement in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards.
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.
TEXEL HOLDINGS LIMITED
AND SUBSIDIARIES
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TEXEL HOLDINGS LIMITED
- 8 -
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.
Paul WInter
(Senior Statutory Auditor)
For and on behalf of SPW (UK) LLP
2 July 2024
Chartered Accountants
Statutory Auditor
Gable House
239 Regents Park Road
London
N3 3LF
TEXEL HOLDINGS LIMITED
AND SUBSIDIARIES
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
$
$
Turnover
3
34,506,695
32,078,292
Cost of sales
(485,480)
(2,573,911)
Gross profit
34,021,215
29,504,381
Administrative expenses
(28,241,078)
(31,594,095)
Other operating income
111,218
154,740
Operating profit/(loss)
4
5,891,355
(1,934,974)
Interest receivable and similar income
8
692,761
68,342
Interest payable and similar expenses
9
(114,566)
(452,944)
Profit/(loss) before taxation
6,469,550
(2,319,576)
Tax on profit/(loss)
10
(1,843,898)
(404,951)
Profit/(loss) for the financial year
29
4,625,652
(2,724,527)
Other comprehensive income
Revaluation of tangible fixed assets
7,271,295
Tax relating to other comprehensive income
(2,181,389)
Total comprehensive income for the year
9,715,558
(2,724,527)
Profit/(loss) 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.
The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.
TEXEL HOLDINGS LIMITED
AND SUBSIDIARIES
GROUP STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
$
$
$
$
Fixed assets
Goodwill
11
1,761,257
2,045,948
Other intangible assets
11
1,829,853
1,587,146
Total intangible assets
3,591,110
3,633,094
Tangible assets
12
32,141,325
24,428,981
Investments
13
6,859,233
5,596,588
42,591,668
33,658,663
Current assets
Stocks
16
2,007,773
1,984,496
Debtors
14
12,375,213
12,798,366
Investments
17
2,887,555
2,210,898
Cash at bank and in hand
8,613,795
3,046,283
25,884,336
20,040,043
Creditors: amounts falling due within one year
18
(12,372,897)
(9,160,722)
Net current assets
13,511,439
10,879,321
Total assets less current liabilities
56,103,107
44,537,984
Creditors: amounts falling due after more than one year
20
-
(118,176)
Provisions for liabilities
25
(2,676,791)
(709,050)
Net assets
53,426,316
43,710,758
Capital and reserves
Called up share capital
26
233,446
233,446
Share premium account
27
2,116,029
2,116,029
Revaluation reserve
28
5,089,906
Profit and loss reserves
29
45,986,935
41,361,283
Total equity
53,426,316
43,710,758
The financial statements were approved by the board of directors and authorised for issue on 2 July 2024 and are signed on its behalf by:
02 July 2024
Mr A Lennard
Director
TEXEL HOLDINGS LIMITED
AND SUBSIDIARIES
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
$
$
$
$
Fixed assets
Tangible assets
12
15,685,828
15,880,375
Investments
13
2,937,551
2,937,551
18,623,379
18,817,926
Current assets
Debtors
14
3,613,924
3,152,262
Creditors: amounts falling due within one year
18
(276,845)
(276,494)
Net current assets
3,337,079
2,875,768
Total assets less current liabilities
21,960,458
21,693,694
Creditors: amounts falling due after more than one year
20
(10,082,173)
(9,970,669)
Provisions for liabilities
25
(281,301)
(301,987)
Net assets
11,596,984
11,421,038
Capital and reserves
Called up share capital
26
233,446
233,446
Share premium account
27
2,116,029
2,116,029
Profit and loss reserves
29
9,247,509
9,071,563
Total equity
11,596,984
11,421,038
As permitted by s408 of the Companies Act 2006, the Company has not presented its own Income statement and related notes.
The financial statements were approved by the board of directors and authorised for issue on 2 July 2024 and are signed on its behalf by:
02 July 2024
Mr A Lennard
Director
Company Registration No. 06316694
TEXEL HOLDINGS LIMITED
AND SUBSIDIARIES
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Share premium account
Revaluation reserve
Profit and loss reserves
Total
$
$
$
$
$
Balance at 1 January 2022
233,446
2,116,029
-
44,085,810
46,435,285
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
-
-
(2,724,527)
(2,724,527)
Balance at 31 December 2022
233,446
2,116,029
41,361,283
43,710,758
Year ended 31 December 2023:
Profit for the year
-
-
-
4,625,652
4,625,652
Other comprehensive income:
Revaluation of tangible fixed assets
-
-
7,271,295
-
7,271,295
Tax relating to other comprehensive income
-
-
(2,181,389)
(2,181,389)
Total comprehensive income for the year
-
-
5,089,906
4,625,652
9,715,558
Balance at 31 December 2023
233,446
2,116,029
5,089,906
45,986,935
53,426,316
TEXEL HOLDINGS LIMITED
AND SUBSIDIARIES
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Share premium account
Profit and loss reserves
Total
$
$
$
$
Balance at 1 January 2022
233,446
2,116,029
9,146,415
11,495,890
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
-
(74,852)
(74,852)
Balance at 31 December 2022
233,446
2,116,029
9,071,563
11,421,038
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
175,946
175,946
Balance at 31 December 2023
233,446
2,116,029
9,247,509
11,596,984
TEXEL HOLDINGS LIMITED
AND SUBSIDIARIES
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
2023
2022
Notes
$
$
$
$
Cash flows from operating activities
Cash generated from operations
37
9,607,869
5,192,989
Interest paid
(114,566)
(452,944)
Income taxes paid
(966,346)
(141,689)
Net cash inflow from operating activities
8,526,957
4,598,356
Investing activities
Purchase of intangible assets
(490,418)
(1,110,184)
Purchase of tangible fixed assets
(1,148,351)
(519,420)
Proceeds from disposal of tangible fixed assets
164,299
2,551,340
Contributions paid to EBT investment
(1,262,645)
(1,493,689)
Interest received
472,736
15,965
Dividends received
59,204
52,377
Other income received from investments
160,821
Net cash used in investing activities
(2,044,354)
(503,611)
Financing activities
Repayment of bank loans
(238,434)
(1,974,342)
Net cash used in financing activities
(238,434)
(1,974,342)
Net increase in cash and cash equivalents
6,244,169
2,120,403
Cash and cash equivalents at beginning of year
5,257,181
3,136,778
Cash and cash equivalents at end of year
11,501,350
5,257,181
Relating to:
Cash at bank and in hand
8,613,795
3,046,283
Short term deposits included in current asset investments
2,887,555
2,210,898
TEXEL HOLDINGS LIMITED
AND SUBSIDIARIES
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
2023
2022
Notes
$
$
$
$
Cash flows from operating activities
Cash (absorbed by)/generated from operations
38
(52,949)
328,411
Income taxes paid
(58,555)
(7,249)
Net cash (outflow)/inflow from operating activities
(111,504)
321,162
Financing activities
Repayment of borrowings
111,504
(321,162)
Net cash generated from/(used in) financing activities
111,504
(321,162)
Net increase in cash and cash equivalents
-
-
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
TEXEL HOLDINGS LIMITED
AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
1
Accounting policies
Company information
Texel Holdings Limited (“the Company”) is a limited company domiciled and incorporated in England and Wales. The registered office is Gable House, 239 Regents Park Road, London, N3 3LF.
The Group consists of Texel Holdings 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 unless indicated otherwise.
The financial statements are prepared in US Dollars ($), which is the functional currency of the Group. Monetary amounts in these financial statements are rounded to the nearest $1.
The consolidated group financial statements consist of the financial statements of the parent company Texel Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
1.2
Going concern
The Group has considerable financial resources together with long-term contracts with a number of clients and suppliers across different geographic areas and industries. As a consequence, the directors believe that the Group is well placed to continue to manage its business risks successfully.
The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements.
TEXEL HOLDINGS LIMITED
AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.3
Turnover
Turnover comprises income from insurance brokerage and commission including related fees received, gold sales from mining activities and the sale of property excluding Value Added Tax.
Brokerage and commission are derived from insurance contracts and is recognised on inception date of individual policies, or if later, the date on which placement has been completed.
For policies where the premium is payable in instalments, brokerage and commission on all the instalments are recognised at the earlier of the date when placement is completed or when the first instalment fall due for payment.
Brokerage arising from mid-term premium adjustments is recognised on the adjustment date when such adjustments fall due as agreed in the policy of cover and the supporting premium schedules.
Most policies carry an obligation to provide post-placement services, principally policy administration and amendment, claims handling and advice. In addition, certain policies contain contingent obligations to make a return of premium, where a proportion of the brokerage and commissions earned would also be returnable. Accordingly, the relevant proportion of brokerage and commission have been deferred for recognition in the periods in which these services are provided, or in which relevant contingencies lapse.
Income from mining activities is recognised when control of the goods passes to the customer and the performance obligations of transferring control have been met. Income from mining activities consists of the sale of gold and silver dore bars, sale of precious metals extracted from processing of electronic waste, and fees received for laboratory services delivered to the mining industry.
1.4
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is ten years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.5
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date if the fair value can be measured reliably.
The carrying value of intangible assets is reviewed on a regular basis and at year end and an impairment loss is recognised in the Statement of Comprehensive Income when the carrying amount exceeds the recoverable amount of the assets.
Amortisation 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:
Software
10% straight line
Website design
20% straight line
Trademarks and rebranding
10% straight line
TEXEL HOLDINGS LIMITED
AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.6
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Buildings Freehold
2% straight line
Plant and machinery
10-20% straight line
Fixtures, fittings & equipment
10-20% straight line
Mine Properties
Refer to note 1.6.1
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 Statement of Comprehensive Income.
1.6.1 Mine properties
Mines under construction
After successful completion of an exploration phase resulting in identified ore reserves that can economically and legally be extracted from a mine property and once the project receives the appropriate approval, the expenditure incurred and recognised under ‘Exploration and evaluation assets' are transferred to 'Mines under construction' which is a sub-category of 'Mine properties'. After the transfer of ‘Exploration and evaluation assets' all subsequent expenditure in the development phase on the construction, installation or completion of infrastructure and facilities is capitalised in ‘Mines under construction'.
Mines under construction' are not depreciated until construction is completed and the assets are available for their intended use. This is signified by the formal commissioning of the mine for production.
After production starts, all assets included in 'Mines under construction' are then transferred to 'Producing mines' which is also a sub-category of 'Mine properties'.
Producing mines
Upon completion of the mine construction phase, the assets are transferred into ‘Property, plant and equipment' or ‘Producing mines' under Mine properties. Items of Property, plant and equipment and Producing mines are stated at cost, less accumulated depreciation and accumulated impairment losses.
The initial cost of an asset comprises its purchase price or construction cost, any costs directly attributable to bringing the asset into operation, the initial estimate of the rehabilitation obligation, and, for qualifying assets (where relevant), borrowing costs.
When a mine construction project moves into the production phase, the capitalisation of certain mine construction costs ceases, and costs are either regarded as part of the cost of inventory or expensed, except for costs which qualify for capitalisation relating to mining asset additions, improvements or new developments, underground mine development or mineable reserve development.
The depreciation estimate for producing mines was changed in preivious years as it is decided that it is more appropriate to depreciate the asset over the life of the concession rather than a Unit-Of-Production (UOP) basis over the economically recoverable reserves of the mine.
Depreciation is recognised on Producing mines at 33.3% per annum on a straight line bases.
TEXEL HOLDINGS LIMITED
AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
Accumulated mine development costs recognised under Producing mines were depreciated on a UOP basis over the economically recoverable reserves of the mine concerned, except in the case of assets whose useful life was shorter than the life of the mine, in which case, the straight-line method was applied. The unit of account used to calculate depreciation was tonnes of ore processed.
Changes in estimates are accounted for prospectively. The residual values, useful lives and methods of depreciation of Mine properties are reviewed at each reporting period and adjusted prospectively, if appropriate.
1.7
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
Contributions paid to the Texel Employee Benefit Trust (EBT) by the group to provide finance for share purchases from the controlling members by the EBT, for the purpose to increase employee participation in the ownership of the group, are recognised as a fixed asset investment. These contributions are classified as intermediate payment arrangements which are carried at historical cost less any provision for impairment in value. Refer to Note 1.19 – Intermediate payment arrangements.
1.8
Impairment of fixed assets
At each reporting end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
TEXEL HOLDINGS LIMITED
AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
1.9
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.10
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.
1.11
Financial instruments
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's statement of financial position when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
TEXEL HOLDINGS LIMITED
AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans and loans from fellow group companies are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value though profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
TEXEL HOLDINGS LIMITED
AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 22 -
1.12
Equity instruments
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
1.13
Taxation
The tax expense represents the sum of tax currently payable and provision for deferred tax based on reasonable estimates of tax following tax regulations as applied by reasonable tax authorities on the taxable entities in the Group.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.14
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.15
Retirement benefits
Payments to defined contribution retirement schemes are charged as an expense in the period in which they are incurred.
1.16
Share-based payments
For cash-settled share-based payments, a liability is recognised for the goods and services acquired, measured initially at the fair value of the liability. At the balance sheet date until the liability is settled, and at the date of settlement, the fair value of the liability is remeasured, with any changes in fair value recognised in profit or loss for the year. Cash-settled share-based payments expense is charged to Profit and loss proportionally over the vesting period of the shares as services are delivered to the company by the employees holding share options.
TEXEL HOLDINGS LIMITED
AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 23 -
Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using the HMRC agreed valuation model. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.
1.17
Leases
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
1.18
Foreign exchange
Transactions in currencies other than US Dollars are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the income statement for the period.
1.19
Intermediate payment arrangements
Subsidiaries in the group sponsoring share option arrangements over the shares of the ultimate parent company in the group, are committed to make contributions to the Texel Employee Benefit Trust (EBT), if needed, to provide finance for the purchase of shares from controlling members for the purpose to increase employee participation in the ownership of the group.
Contributions paid to the Texel Employee Benefit Trust (EBT) by the group to provide finance for share purchases from the controlling members by the EBT, for the purpose to increase employee participation in the ownership of the group, are recognised as a fixed asset investment. These contributions are classified as intermediate payment arrangements which are carried at historical cost less any provision for impairment in value.
Included in Profit and loss reserves is a non-distributable reserve – “Employee Benefit Reserve” which is carried at an opposite amount equal to the balance of the Fixed asset investment in respect of Intermediate payment arrangements as disclosed in the Group Statement of Financial Position. The purpose of the Employee Benefit reserve is to recognise the value of future services to be delivered to the group by employees holding share options over the shares of the parent company as held by the EBT. Refer to Note 29.
The above accounting policy which recognises intermediate payment arrangements as a fixed asset investment in the Group Statement Statement of Financial Position is a departure from United Kingdom Generally Accepted Accounting Practice including FRS102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. Refer to Note 32.
TEXEL HOLDINGS LIMITED
AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
2
Judgements and key sources of estimation uncertainty
The preparation of the company's financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities at the date of the financial statements. Estimates and assumptions are continually evaluated and are based on management's experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.
In particular, the company has identified a number of areas where significant judgements, estimates and assumptions are required. Further information on each of these areas and how they impact the various accounting policies are described below.
Mining activities:
• Production start date
Management assesses the stage of the mine under construction to determine when the mine moves into the production phase, this being when the mine is substantially complete and ready for its intended use. The criteria used to assess the start date are determined based on the unique nature of the mine construction and development project, such as the complexity of the project and its location. The company considers various relevant criteria to assess when the production phase is considered to have commenced. At this point, all related amounts are reclassified from 'Mines under construction' to 'Producing mines'. Some of the criteria used to identify the production start date include, but are not limited to:
· Level of capital expenditure incurred compared with the original construction cost estimate,
· Completion of a reasonable period of testing of the mine plant and equipment,
· Ability to produce metal in saleable form,
· Ability to sustain ongoing production of metal.
When a mine development project moves into the production phase, the capitalisation of certain mine development cost ceases and costs are either regarded as forming part of the cost of inventory or expensed, except for costs that qualify for capitalisation relating to mining asset additions or improvements, underground mine development or mineable reserve development. It is also at this point that depreciation and amortisation commences.
• Ore reserve and mineral resource estimates
Ore reserves and mineral resource estimates are estimates of the amount of ore that can be economically and legally extracted from the company's mining property. Such reserves and mineral resource estimates and changes to these may impact the company's reported financial position and results, in the following way:
· The carrying value of exploration and evaluation assets, mine properties, property, plant and equipment,
· Depreciation and amortisation charges in the statement of comprehensive income and other comprehensive income may change where such charges are determined using the Unit-Of-Production method, or where the useful life of the related assets change,
· Provisions for rehabilitation and environmental provisions may change where reserve estimate changes affect expectations about when such activities will occur and the associated cost of these activities.
The company estimates its ore reserves and mineral resources based on information compiled by appropriately qualified persons relating to the geological and technical data on the size, depth, shape and grade of the ore body and suitable production techniques and recovery rates. Such an analysis requires complex geological judgements to interpret the data. The estimation of recoverable reserves is based upon factors such as estimates of foreign exchange rates, commodity prices, future capital requirements and production costs, along with geological assumptions and judgements made in estimating the size and grade of the ore body.
TEXEL HOLDINGS LIMITED
AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 25 -
As the economic assumptions used may change and as additional geological information is produced during the operation of the mine, estimates of ore reserves and mineral resources may change.
3
Turnover and other revenue
An analysis of the group's turnover is as follows:
2023
2022
$
$
Turnover
Brokerage and commission received
34,491,266
30,314,326
Gold sales
15,429
1,763,966
34,506,695
32,078,292
Other significant revenue
Interest income and similar income
633,557
15,965
Dividends received
59,204
52,377
Analysis of turnover by geographical markets is not given as the directors are of the opinion that it would not provide meaningful information.
4
Operating profit/(loss)
2023
2022
$
$
Operating profit/(loss) for the year is stated after charging/(crediting):
Exchange (gains)/losses
(471,823)
392,989
Depreciation of owned tangible fixed assets
543,003
7,084,936
Profit on disposal of tangible fixed assets
-
(54)
Amortisation of intangible assets
48,030
9,998
Amortisation of goodwill of investment in associate/subsidiary
284,691
231,578
Mine production in cost of sales
485,480
2,573,911
Operating lease charges
564,676
567,099
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
-
-
Audit of the financial statements of the company's subsidiaries
103,094
96,353
TEXEL HOLDINGS LIMITED
AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
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
Directors and officers
13
12
-
-
Employees
83
116
-
-
96
128
Their aggregate remuneration comprised:
Group
Company
2023
2022
2023
2022
$
$
$
$
Wages and salaries
15,889,346
13,882,113
Social security costs
1,506,638
1,428,890
-
-
Pension costs
900,109
678,425
18,296,093
15,989,428
7
Directors' remuneration
2023
2022
$
$
Remuneration for qualifying services
3,750,535
2,808,992
Company pension contributions to defined contribution schemes
205,053
76,347
3,955,588
2,885,339
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 10 (2022 - 10).
Remuneration disclosed above includes the following amounts paid to the highest paid director:
Remuneration for qualifying services
602,829
643,282
Company pension contributions to defined contribution schemes
50,710
38,897
TEXEL HOLDINGS LIMITED
AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
8
Interest receivable and similar income
2023
2022
$
$
Interest income
Interest on bank deposits
472,736
15,965
Other income from investments
Dividends received
59,204
52,377
Gains/(Losses) on financial instruments measured at fair value
160,821
Total income
692,761
68,342
Investment income includes the following:
Interest on financial assets
472,736
15,965
Gains/(Losses) on financial assets measured at fair value
160,821
9
Interest payable and similar expenses
2023
2022
$
$
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
114,437
193,390
Other finance costs:
Losses on financial assets measured at fair value
129
259,554
Total finance costs
114,566
452,944
10
Taxation
2023
2022
$
$
Current tax
UK corporation tax on profits for the current period
2,304,557
258,236
Adjustments in respect of prior periods
6,497
Total current tax
2,311,054
258,236
Deferred tax
Origination and reversal of timing differences
(467,156)
146,715
Total tax charge
1,843,898
404,951
TEXEL HOLDINGS LIMITED
AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Taxation
(Continued)
- 28 -
The charge for the year can be reconciled to the profit per the income statement as follows:
2023
2022
$
$
Profit/(loss) before taxation
6,469,550
(2,319,576)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 23.50% (2022: 19.00%)
1,520,344
(440,719)
Tax effect of expenses that are not deductible in determining taxable profit
317,451
(1,017,932)
Tax effect of income not taxable in determining taxable profit
(4,380)
Double tax relief
723
Permanent capital allowances in excess of depreciation
(102,490)
(614,898)
Under/(over) provided in prior years
764,222
1,947,597
Other tax adjustments
(188,473)
50,773
Deferred tax adjustments
(467,156)
483,787
Taxation charge
1,843,898
404,951
In addition to the amount charged to the income statement, the following amounts relating to tax have been recognised directly in other comprehensive income:
2023
2022
$
$
Deferred tax arising on:
Revaluation of property
2,181,389
-
11
Intangible fixed assets
Group
Goodwill
Software
Website design
Total
$
$
$
$
Cost
At 1 January 2023
2,846,908
1,689,852
143,296
4,680,056
Additions - separately acquired
490,418
490,418
At 31 December 2023
2,846,908
2,180,270
143,296
5,170,474
Amortisation and impairment
At 1 January 2023
800,960
202,441
43,561
1,046,962
Amortisation charged for the year
284,691
232,942
14,769
532,402
At 31 December 2023
1,085,651
435,383
58,330
1,579,364
TEXEL HOLDINGS LIMITED
AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
11
Intangible fixed assets
(Continued)
- 29 -
Carrying amount
At 31 December 2023
1,761,257
1,744,887
84,966
3,591,110
At 31 December 2022
2,045,948
1,487,411
99,735
3,633,094
12
Tangible fixed assets
Group
Buildings Freehold
Plant and machinery
Fixtures, fittings & equipment
Producing mines
Exploration & evaluation
Total
$
$
$
$
$
$
Cost
At 1 January 2023
16,701,756
9,426,846
1,033,250
19,677,112
1,110,178
47,949,142
Additions
824,986
172,481
130,328
20,556
1,148,351
Disposals
(240,967)
(240,967)
Revaluation
7,271,295
7,271,295
Transfers
376,697
(120,849)
(255,848)
At 31 December 2023
25,174,734
9,237,511
1,163,578
19,677,112
874,886
56,127,821
Depreciation and impairment
At 1 January 2023
821,381
2,342,575
679,093
19,677,112
23,520,161
Depreciation charged in the year
196,689
295,017
51,297
543,003
Eliminated in respect of disposals
(76,668)
(76,668)
Transfers
160
(160)
At 31 December 2023
1,018,230
2,560,764
730,390
19,677,112
23,986,496
Carrying amount
At 31 December 2023
24,156,504
6,676,747
433,188
874,886
32,141,325
At 31 December 2022
15,880,375
7,084,271
354,157
1,110,178
24,428,981
TEXEL HOLDINGS LIMITED
AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
12
Tangible fixed assets
(Continued)
- 30 -
Company
Buildings Freehold
$
Cost
At 1 January 2023 and 31 December 2023
16,701,756
Depreciation and impairment
At 1 January 2023
821,381
Depreciation charged in the year
194,547
At 31 December 2023
1,015,928
Carrying amount
At 31 December 2023
15,685,828
At 31 December 2022
15,880,375
13
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
$
$
$
$
Investments in subsidiaries
36
2,937,551
2,937,551
Other investments
27
6,859,233
5,596,588
6,859,233
5,596,588
2,937,551
2,937,551
Movements in fixed asset investments
Group
Other
$
Cost or valuation
At 1 January 2023
5,596,588
Additions
1,262,645
At 31 December 2023
6,859,233
Carrying amount
At 31 December 2023
6,859,233
At 31 December 2022
5,596,588
TEXEL HOLDINGS LIMITED
AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
13
Fixed asset investments
(Continued)
- 31 -
Movements in fixed asset investments
Company
Shares in subsidiaries
$
Cost or valuation
At 1 January 2023 and 31 December 2023
2,937,551
Carrying amount
At 31 December 2023
2,937,551
At 31 December 2022
2,937,551
14
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
$
$
$
$
Trade debtors
8,497,378
9,742,602
350,000
14,656
Corporation tax recoverable
45,926
159,614
Amounts due from subsidiary undertakings
1,650,000
1,650,000
Other debtors
2,176,410
1,811,925
1,492,990
1,412,984
Prepayments and accrued income
973,523
551,414
73,253
74,622
11,693,237
12,265,555
3,566,243
3,152,262
Deferred tax asset (note 25)
681,975
532,813
47,681
12,375,212
12,798,368
3,613,924
3,152,262
15
Financial instruments
Group
Company
2023
2022
2023
2022
$
$
$
$
Carrying amount of financial assets
Debt instruments measured at amortised cost
10,622,464
11,553,735
3,492,990
3,077,239
Equity instruments measured at fair value
9,746,788
7,807,486
-
-
Carrying amount of financial liabilities
Measured at amortised cost
8,879,496
7,287,229
276,789
276,441
TEXEL HOLDINGS LIMITED
AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
16
Stocks
Group
Company
2023
2022
2023
2022
$
$
$
$
Inventory at year end
2,007,773
1,984,496
Inventory consists of the following:
Property development for resale $1,929,564 (2022 - $1,929,564).
Consumables $78,209 (2022 - $54,932).
17
Current asset investments
Group
Company
2023
2022
2023
2022
$
$
$
$
Listed investments
2,887,555
2,210,898
-
-
18
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
$
$
$
$
Bank loans
22
120,258
Trade creditors
388,644
362,528
276,789
276,441
Corporation tax payable
1,350,356
223,682
56
53
Other taxation and social security
1,175,306
941,310
-
-
Deferred income
19
967,739
826,677
Other creditors
2,675,672
2,423,668
Accruals and deferred income
5,815,180
4,262,599
12,372,897
9,160,722
276,845
276,494
19
Deferred brokerage income
Group
Company
2023
2022
2023
2022
$
$
$
$
Prepaid brokerage
967,739
826,677
-
-
TEXEL HOLDINGS LIMITED
AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 33 -
20
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
$
$
$
$
Bank loans and overdrafts
22
118,176
Other borrowings
22
10,082,173
9,970,669
-
118,176
10,082,173
9,970,669
21
Provisions for liabilities
Group
Company
2023
2022
2023
2022
Notes
$
$
$
$
Deferred tax liabilities
25
2,676,791
709,050
281,301
301,987
2,676,791
709,050
281,301
301,987
22
Loans and overdrafts
Group
Company
2023
2022
2023
2022
$
$
$
$
Bank loans
238,434
Loans from group undertakings
10,082,173
9,970,669
-
238,434
10,082,173
9,970,669
Payable within one year
120,258
Payable after one year
118,176
10,082,173
9,970,669
Included in Bank loans was a loan secured by a legal charge over freehold property owned by Texel Capital Limited. The loan was repaid in full during the financial year.
The company has a Revolving Credit Facility (RCF) from its Bank with a credit facility of $6,367,500. The facility is secured by a legal charge over freehold property owned by the parent company - Texel Holdings Limited. The RCF bears interest at the Bank of England base rate plus 2.5% per annum. The RCF is available for a period of 3 years from 15/10/2021. Commitment fees are charged on under utilisation of the facility which is payable quarterly at 0.7% of the unutilised value of the facility during each quarter.
TEXEL HOLDINGS LIMITED
AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 34 -
23
Retirement benefit schemes
2023
2022
Defined contribution schemes
$
$
Charge to profit and loss in respect of defined contribution schemes
900,109
678,425
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in independently administered funds.
24
Share-based payment transactions
24.1
Enterprise Management Incentive (EMI) Share Option Plan and Company Share Option Plan (CSOP)
Share options are granted to certain employees over shares in the share capital of the parent company - Texel Holdings Limited. Employees qualify for the granting of options after two years of service. Options have a vesting period of three years from date of grant. The exercise price of the options is equal to the market price of the shares at date of grant as agreed with HMRC under the company share option plans. The contractual life of an option is restricted to a period of ten years from the date of grant.
Group
Number of share options
Weighted average exercise price
2023
2022
2023
2022
Number
Number
$
$
Outstanding at 1 January 2023
11,963
12,213
191.95
174.98
Granted
895
1,679
-
312.60
Exercised/Lapsed
(1,069)
(1,929)
-
133.92
Outstanding at 31 December 2023
11,789
11,963
-
191.95
Exercisable at 31 December 2023
8,934
9,531
-
163.14
The options outstanding at 31 December 2023 had an exercise price ranging from $135.87 to $313.42.
Share options are granted at fair value which is calculated using the HMRC agreed valuation model, taking into account the terms and conditions upon which the options were granted.
Total expenses of $1,175,582 (2022 - $664,708) related to cash settled share based payment transactions were recognised in the year.
TEXEL HOLDINGS LIMITED
AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
24
Share-based payment transactions
(Continued)
- 35 -
Company Restricted Share Plan (RSP)
In addition to the EMI and CSOP plans described in 23.1 above the company also incentivise employees under a Restricted Share Plan (RSP). The RSP is operated under similar rules as applied to the EMI and CSOP plans.
In terms of the RSP ordinary shares in the ultimate parent company Texel Holdings Limited are allotted or made available through the EBT to qualifying employees. Under the RSP rules restrictions apply on the trading of the shares based on conditions similar to the vesting rules applicable to share options under the EMI and CSOP plans.
No RSP shares were granted to employees during the year. At the year end employees held 4610 restricted shares which were allotted as Nil paid shares in previous years. The purchase consideration of the Nil paid shares of $1,438,140 is owed by the employees to the parent company and is payable on demand.
25
Deferred taxation
Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Group
$
$
$
$
Accelerated capital allowances
2,535,062
639,491
49,133
221,495
Share based payments
-
-
632,842
311,318
Investments
141,729
69,559
-
-
2,676,791
709,050
681,975
532,813
Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Company
$
$
$
$
Accelerated capital allowances
281,301
301,987
47,681
-
Group
Company
2023
2023
Movements in the year:
$
$
Liability at 1 January 2023
176,237
301,987
Charge/(credit) to profit or loss
1,818,579
(68,367)
Liability at 31 December 2023
1,994,816
233,620
TEXEL HOLDINGS LIMITED
AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 36 -
26
Share capital
Group and company
2023
2022
Ordinary share capital
$
$
Issued and fully paid
117,647 Ordinary shares of $1.9843 each
233,446
233,446
27
Share premium account
Group
Company
2023
2022
2023
2022
$
$
$
$
At the beginning and end of the year
2,116,029
2,116,029
2,116,029
2,116,029
28
Revaluation reserve
Group
Company
2023
2022
2023
2022
$
$
$
$
At the beginning of the year
Revaluation surplus arising in the year
7,271,295
Deferred tax on revaluation of tangible assets
(2,181,389)
-
-
-
At the end of the year
5,089,906
-
-
TEXEL HOLDINGS LIMITED
AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 37 -
29
Profit and loss reserves
Group
Company
2023
2022
2023
2022
$
$
$
$
At the beginning of the year
41,361,283
44,085,810
9,071,563
9,146,415
Profit/(loss) for the year
4,625,652
(2,724,527)
175,946
(74,852)
At the end of the year
45,986,935
41,361,283
9,247,509
9,071,563
Group
Company
2023
2022
2023
2022
$
$
$
$
Non-distributable profits included above
At the beginning of the year
5,596,588
4,102,899
-
-
Employee benefit reserve
1,262,645
1,493,689
-
-
At the end of the year
6,859,233
5,596,588
-
-
Distributable profits
39,127,702
35,764,695
9,247,509
9,071,563
30
Other movements in profit and loss reserves
As part of the Group's Restrictive Share Plan 5,135 ordinary shares were issued to employees to date at a purchase consideration of $1,530,068. The purchase consideration of these shares are owed by the employees to the Group and will only be settled in future depending on successful completion of vesting conditions attached to the shares. Accordingly, full provision has been made against the purchase consideration owed by the employees.
31
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2023
2022
2023
2022
$
$
$
$
Within one year
653,966
617,540
-
-
TEXEL HOLDINGS LIMITED
AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 38 -
32
Texel Employee Benefit Trust
The Texel Employee Benefit Trust (EBT) was established for the benefit of employees in the group to act as "market maker" and facilitate with employee share plan incentives. The EBT is a separate legal entity that is part of the ultimate parent's ownership structure. The assets and liabilities of the EBT do not belong to the group as the assets are held for the benefit of the ultimate beneficiaries being the employees of the group. Therefore, the results of the EBT are not consolidated in the group financial statements. The EBT enables the board of directors to award share options and restricted shares to employees as to retain the services of key employees and to increase employee shareholder participation in the group.
The EBT is a legal party in a loan facility agreement with a subsidiary (being the sponsoring entity) whereby that company would provide finance to the EBT, if needed, to enable the EBT to settle the balance owed for shares purchased from the controlling members. Notwithstanding the aforementioned, if the EBT does not have sufficient cash flow available in future to settle the balance owing to the controlling members, it is expected that the sponsoring entity would make contributions to the EBT to enable the EBT to settle the balance owed for the shares purchased.
During the year the sponsoring company paid contributions of $1,262,645 (2022 - $1,493,689) to the EBT which funds were utilised by the EBT as part settlement for the purchase of shares from the controlling members. These contributions have been recognised as a fixed asset investment in the Group Statement of Financial Position.
The group accounting policy for intermediate payment arrangements concerning the EBT is a departure from United Kingdom Generally Accepted Accounting Practice including FRS102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (UK GAAP).
In terms of UK GAAP the intermediate payment arrangement concerning the EBT carried as a fixed asset investment of $6,859,232 should be disclosed in the Group Statement of Financial Position as a negative reserve within equity. As result of the aforementioned, the net equity of the group at year end should be disclosed as $46.6 million instead of $53.4 million as reflected in the Group Statement of Financial Position. The departure from UK GAAP has no effect on the net profit and corporation tax of the group for the year.
In the opinion of the directors, the investment in the EBT is considered to be a group asset as it is a resource controlled by the group as result of past events from which future economic benefits are expected to flow to the group. The directors have adopted this group accounting policy for intermediate payment arrangements as in their opinion it would achieve true and fair presentation of the results of the group for all stakeholders.
33
Contingent liabilities
Subsidiaries in the group sponsoring the share incentive plans over shares of the parent company are committed under a loan facility agreement with the Texel Employee Benefit Trust (EBT) to provide finance to the EBT, if needed, to enable the EBT to settle a balance owed to the controlling members for shares purchased in the ultimate parent company. At year end the balance owed by the EBT to the controlling members amounted to $388,352 (2022 - $1,586,749).
34
Related party transactions
Included in debtors is an amount of $1,650,000 (2022 - $1,650,000) representing an equity advance paid to Texel Asia Pte. Limited, a wholly owned subsidiary. The equity advance is non interest bearing and is available for the settlement of future share allotments to the parent company by Texel Asia Pte.
Property rental income of $330,105 (2022 - $362,679) was received from Texel Finance Limited during the year.
TEXEL HOLDINGS LIMITED
AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 39 -
35
Controlling party
The group is controlled by the directors by virtue of their majority shareholding held directly and indirectly in the parent company.
36
Subsidiaries
Details of the company's subsidiaries at 31 December 2023 are as follows:
Name of undertaking and country of
Nature of business
Class of
% Held
incorporation or residency
shareholding
Direct
Indirect
Tierra Underwriting Limited
England & Wales
Insurance managing agency
Ordinary
100.00
0
Conkat Mining, S.A.
Costa Rica
Mine financing activities
Ordinary
-
100.00
Mina Orotex SR, S.A.
Costa Rica
Mining activities
Ordinary
-
100.00
Texel Europe BV
Belgium
Insurance broker
Ordinary
-
100.00
Texel Asia Pte. Limted
Singapore
Insurance broker
Ordinary
100.00
0
Texel Capital Limited
England & Wales
Corporate finance
Ordinary
100.00
0
Texel Finance Limited
England & Wales
Insurance broker
Ordinary
100.00
0
Texel Finance, Inc.
USA
Insurance holding
Ordinary
100.00
0
Meridian Finance Group
USA
Insurance broker
Ordinary
-
100.00
Tierra Underwriting Europe BV
Belgium
Insurance managing agency
Ordinary
-
100.00
37
Cash generated from group operations
2023
2022
$
$
Profit/(loss) for the year after tax
4,625,652
(2,724,527)
Adjustments for:
Taxation charged
1,843,898
404,951
Finance costs
114,566
452,944
Investment income
(692,761)
(68,342)
Gain on disposal of tangible fixed assets
-
(54)
Amortisation and impairment of intangible assets
532,402
466,837
Depreciation and impairment of tangible fixed assets
543,003
7,084,936
Movements in working capital:
(Increase)/decrease in stocks
(23,277)
1,006,116
Decrease/(increase) in debtors
458,627
(1,465,316)
Increase/(decrease) in creditors
2,064,697
(791,233)
Increase in deferred income
141,062
826,677
Cash generated from operations
9,607,869
5,192,989
TEXEL HOLDINGS LIMITED
AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 40 -
38
Cash (absorbed by)/generated from operations - company
2023
2022
$
$
Profit/(loss) for the year after tax
175,946
(74,852)
Adjustments for:
Taxation (credited)/charged
(9,809)
71,294
Depreciation and impairment of tangible fixed assets
194,547
191,970
Movements in working capital:
(Increase)/decrease in debtors
(413,981)
173,400
Increase/(decrease) in creditors
348
(33,401)
Cash (absorbed by)/generated from operations
(52,949)
328,411
39
Analysis of changes in net funds - group
1 January 2023
Cash flows
31 December 2023
$
$
$
Cash and cash equivalents
5,257,181
6,244,169
11,501,350
Borrowings excluding overdrafts
(238,434)
238,434
-
5,018,747
6,482,603
11,501,350
40
Analysis of changes in net debt - company
1 January 2023
Cash flows
31 December 2023
$
$
$
Borrowings excluding overdrafts
(9,970,669)
(111,504)
(10,082,173)
2023-12-312023-01-01falseCCH SoftwareCCH Accounts Production 2024.210No description of principal activityMr A LennardMr Matthew RileyMrs S 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