Company registration number 09886193 (England and Wales)
SWIFTLINE GROUP LIMITED & SUBSIDIARIES
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
SWIFTLINE GROUP LIMITED & SUBSIDIARIES
COMPANY INFORMATION
Director
Mr K McLoughlin
Company number
09886193
Registered office
28-30 Theobalds Road
London
WC1X 8NX
Auditor
SPW (UK) LLP
Chartered Accountants and Registered Auditor
Gable House
239 Regents Park Road
London
N3 3LF
SWIFTLINE GROUP LIMITED & SUBSIDIARIES
CONTENTS
Page
Strategic report
1
Director's report
2
Independent auditor's report
3 - 6
Profit and loss account
7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Company statement of cash flows
14
Notes to the financial statements
15 - 24
SWIFTLINE GROUP LIMITED & SUBSIDIARIES
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The director presents the strategic report for the year ended 31 December 2023.

Review of the business

The results for the year and the financial position at the yearend were considered satisfactory by the directors who expect continued growth in the foreseeable future.

Principal risks and uncertainties

The principal risks and uncertainties facing the company are the current economic climate and interest rates.

Key performance indicators

The parent company monitors business performance based on key performance indicators focusing on increasing profitability, improving market share to yield positive economic effect.

On behalf of the board

.............................................
Mr K McLoughlin
Director
Date: .............................................
SWIFTLINE GROUP LIMITED & SUBSIDIARIES
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

The director presents his annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the company and group continued to be that of mechanical and electrical contractors.

Director

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

Mr K McLoughlin
Results and dividends

The results for the year are set out on page 7.

Auditor

In accordance with the company's articles, a resolution proposing that SPW (UK) LLP be reappointed as auditor of the group will be put at a General Meeting.

Statement of director's responsibilities

The director is responsible for preparing the Annual Report 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). 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

 

 

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

Statement of disclosure to auditor

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

On behalf of the board
Mr K McLoughlin
Director
31 July 2024
SWIFTLINE GROUP LIMITED & SUBSIDIARIES
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SWIFTLINE GROUP LIMITED & SUBSIDIARIES
- 3 -
Opinion

We have audited the financial statements of Swiftline Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 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.

 

The impact of uncertainties due to the UK exiting the European Union and the Coronvirus Pandemic on our audit

Uncertainties related to the effects of Brexit and the Coronvirus Pandemic are relevant to understanding our audit of the accounts. All audits assess and challenge the reasonableness of estimates made by the director's, such as the valuation of property and related disclosures and the appropriateness of the going concern basis of preparation of the financial statements. All of these depend on assessments of the future economic environment and the businesses future prospects and performance.

 

The Coronvirus Pandemic is one of the most significant economic events for the UK, and at the date of this report its effects are subject to unprecedented levels of uncertainty of outcomes, with the full range of possible effects unknown. We applied a standardised firm-wide approach in response to that uncertainty when assessing the Company’s future prospects and performance. However, no audit should be expected to predict the unknowable factors or all possible future. Having said this there is uncertainty around the travel sector and the ability for the entity to obtain additional funding if required. These events or conditions, indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

 

SWIFTLINE GROUP LIMITED & SUBSIDIARIES
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SWIFTLINE GROUP LIMITED & SUBSIDIARIES
- 4 -

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is 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:

Matters on which we are required to report by exception

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

 

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

Responsibilities of director

As explained more fully in the director's responsibilities statement, 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 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 director is 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 director either intends to liquidate the parent company or to cease operations, or has no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

SWIFTLINE GROUP LIMITED & SUBSIDIARIES
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SWIFTLINE GROUP LIMITED & SUBSIDIARIES
- 5 -

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:

 

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.

Use of our report

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

SWIFTLINE GROUP LIMITED & SUBSIDIARIES
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SWIFTLINE GROUP LIMITED & SUBSIDIARIES
- 6 -
For and on behalf of
31 July 2024
SPW (UK) LLP
Chartered Accountants
Statutory Auditor
Chartered Accountants and Registered Auditor
Paul J Winter FCA
Gable House
239 Regents Park Road
London
N3 3LF
SWIFTLINE GROUP LIMITED & SUBSIDIARIES
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
2
54,531,325
49,189,781
Cost of sales
(52,646,432)
(47,448,670)
Gross profit
1,884,893
1,741,111
Administrative expenses
(917,868)
(901,169)
Operating profit
3
967,025
839,942
Interest receivable and similar income
6
49,373
3,080
Profit before taxation
1,016,398
843,022
Tax on profit
7
(2,448)
555,650
Profit for the financial year
1,013,950
1,398,672
Profit for the financial year is all attributable to the owners of the parent company.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

SWIFTLINE GROUP LIMITED & SUBSIDIARIES
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
£
£
Profit for the year
1,013,950
1,398,672
Other comprehensive income
-
-
Cash flow hedges gain arising in the year
-
0
-
0
Total comprehensive income for the year
1,013,950
1,398,672
Total comprehensive income for the year is all attributable to the owners of the parent company.
SWIFTLINE GROUP LIMITED & SUBSIDIARIES
GROUP BALANCE SHEET
AS AT 31 DECEMBER 2023
2023-12-31
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
9
456,778
462,843
Current assets
Stocks
12
1,582,383
538,729
Debtors
13
7,457,585
5,844,670
Cash at bank and in hand
2,677,430
3,649,510
11,717,398
10,032,909
Creditors: amounts falling due within one year
14
(4,961,270)
(4,179,243)
Net current assets
6,756,128
5,853,666
Total assets less current liabilities
7,212,906
6,316,509
Provisions for liabilities
15
(38,906)
(36,459)
Net assets
7,174,000
6,280,050
Capital and reserves
Called up share capital
17
100
100
Profit and loss reserves
7,173,900
6,279,950
Total equity
7,174,000
6,280,050

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

The financial statements were approved and signed by the director and authorised for issue on 31 July 2024
31 July 2024
Mr K McLoughlin
Director
SWIFTLINE GROUP LIMITED & SUBSIDIARIES
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
2023-12-31
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
10
100
100
Current assets
Debtors
13
1,000,100
1,000,100
Creditors: amounts falling due within one year
14
(100)
(100)
Net current assets
1,000,000
1,000,000
Total assets less current liabilities
1,000,100
1,000,100
Capital and reserves
Called up share capital
17
100
100
Profit and loss reserves
1,000,000
1,000,000
Total equity
1,000,100
1,000,100

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £120,000 (2022 - £0 profit).

The financial statements were approved and signed by the director and authorised for issue on 31 July 2024
31 July 2024
Mr K McLoughlin
Director
Company Registration No. 09886193
SWIFTLINE GROUP LIMITED & SUBSIDIARIES
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
100
4,881,278
4,881,378
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
2,376,680
2,376,680
Balance at 31 December 2022
100
6,279,950
6,280,050
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
1,013,950
1,013,950
Dividends
8
-
(120,000)
(120,000)
Balance at 31 December 2023
100
7,173,900
7,174,000
SWIFTLINE GROUP LIMITED & SUBSIDIARIES
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
100
1,000,000
1,000,100
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
-
0
Balance at 31 December 2022
100
1,000,000
1,000,100
Year ended 31 December 2023:
Profit and total comprehensive income
-
120,000
120,000
Dividends
8
-
(120,000)
(120,000)
Balance at 31 December 2023
100
1,000,000
1,000,100
SWIFTLINE GROUP LIMITED & SUBSIDIARIES
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
19
(884,501)
95,559
Income taxes (paid)/refunded
(1)
1,014,089
Net cash (outflow)/inflow from operating activities
(884,502)
1,109,648
Investing activities
Purchase of tangible fixed assets
(16,951)
(25,866)
Interest received
49,373
3,080
Net cash generated from/(used in) investing activities
32,422
(22,786)
Financing activities
Dividends paid to equity shareholders
(120,000)
-
Net cash used in financing activities
(120,000)
-
Net (decrease)/increase in cash and cash equivalents
(972,080)
1,086,862
Cash and cash equivalents at beginning of year
3,649,510
2,562,648
Cash and cash equivalents at end of year
2,677,430
3,649,510
SWIFTLINE GROUP LIMITED & SUBSIDIARIES
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
20
(42,282)
-
0
Investing activities
Dividends received
162,282
-
0
Net cash generated from/(used in) investing activities
162,282
-
Financing activities
Dividends paid to equity shareholders
(120,000)
-
Net cash used in financing activities
(120,000)
-
Net increase in cash and cash equivalents
-
-
Cash and cash equivalents at beginning of year
-
0
-
0
Cash and cash equivalents at end of year
-
0
-
0
SWIFTLINE GROUP LIMITED & SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
1
Accounting policies
Company information

Swiftline Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is .

 

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

1.1
Accounting convention

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

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

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

1.2
Basis of consolidation

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

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

 

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

 

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

1.3
Going concern

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

SWIFTLINE GROUP LIMITED & SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

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

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

1.5
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:

Leasehold land and buildings
Nil
Plant and equipment
15% reducing balance method
Fixtures and fittings
15% reducing balance method
Motor vehicles
25% reducing balane method

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 profit and loss account.

1.6
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, associates and jointly controlled entities 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.

SWIFTLINE GROUP LIMITED & SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.7
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.

1.8
Cash at bank and in hand

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.

1.9
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account 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.

SWIFTLINE GROUP LIMITED & SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
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.

 

1.10
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.11
Retirement benefits

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

1.12
Leases

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.

2
Turnover and other revenue

An analysis of the group's turnover is as follows:

2023
2022
£
£
Turnover analysed by geographical market
UK
54,531,325
49,189,781
2023
2022
£
£
Other revenue
Interest income
49,373
3,080
3
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging:
Depreciation of owned tangible fixed assets
23,016
25,703
Operating lease charges
249,339
237,506
SWIFTLINE GROUP LIMITED & SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
4
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company's subsidiaries
15,000
22,500
5
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
Full time employees
20
17
1
1

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
903,164
718,763
-
0
-
0
Social security costs
101,896
84,608
-
-
Pension costs
41,444
36,505
-
0
-
0
1,046,504
839,876
-
0
-
0
6
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
49,373
3,080
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
49,373
3,080
7
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
-
0
(555,176)
SWIFTLINE GROUP LIMITED & SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
7
Taxation
(Continued)
- 20 -
Deferred tax
Origination and reversal of timing differences
2,448
(474)
Total tax charge/(credit)
2,448
(555,650)

The actual charge/(credit) for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
1,016,398
843,022
Expected tax charge based on the standard rate of corporation tax in the UK of 0% (2022: 19.00%)
-
160,174
Tax effect of expenses that are not deductible in determining taxable profit
11,681
-
0
Tax effect of utilisation of tax losses not previously recognised
(215,635)
(159,528)
Permanent capital allowances in excess of depreciation
(3,929)
(5,530)
Depreciation on assets not qualifying for tax allowances
4,603
4,884
Research and development tax credit
-
0
(555,650)
Deferred tax adjustments in respect of prior years
2,448
-
0
Tax expense for the year
(200,832)
(555,650)
8
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
120,000
-
SWIFTLINE GROUP LIMITED & SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
9
Tangible fixed assets
Group
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
247,165
84,248
437,357
5,000
773,770
Additions
-
0
-
0
16,951
-
0
16,951
At 31 December 2023
247,165
84,248
454,308
5,000
790,721
Depreciation and impairment
At 1 January 2023
-
0
72,118
238,393
416
310,927
Depreciation charged in the year
-
0
1,796
21,012
208
23,016
At 31 December 2023
-
0
73,914
259,405
624
333,943
Carrying amount
At 31 December 2023
247,165
10,334
194,903
4,376
456,778
At 31 December 2022
247,165
12,130
198,964
4,584
462,843
The company had no tangible fixed assets at 31 December 2023 or 31 December 2022.
10
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
11
-
0
-
0
100
100
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
100
Carrying amount
At 31 December 2023
100
At 31 December 2022
100
11
Subsidiaries

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

SWIFTLINE GROUP LIMITED & SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
11
Subsidiaries
(Continued)
- 22 -
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Swiftline Engineering Limited
England & Wales
Ordinary
100.00
12
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Work in progress
349,227
525,229
-
-
Finished goods and goods for resale
1,233,156
13,500
-
0
-
0
1,582,383
538,729
-
-
13
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,087,073
2,834,834
-
0
-
0
Other debtors
4,281,896
2,936,520
1,000,100
1,000,100
Prepayments and accrued income
88,616
73,316
-
0
-
0
7,457,585
5,844,670
1,000,100
1,000,100
14
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Trade creditors
2,174,953
1,503,447
-
0
-
0
Other taxation and social security
67,603
48,998
-
-
Other creditors
2,030,955
1,645,991
100
100
Accruals and deferred income
687,759
980,807
-
0
-
0
4,961,270
4,179,243
100
100
SWIFTLINE GROUP LIMITED & SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
15
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
38,906
36,459
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
36,459
-
Charge to profit or loss
2,447
-
Liability at 31 December 2023
38,906
-

The deferred tax liability set out above is expected to reverse and relates to accelerated capital allowances that are expected to mature within the same period.

16
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
41,444
36,505

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

17
Share capital
Group and company
2023
2022
Ordinary share capital
£
£
Issued and fully paid
100 Ordinary of £1 each
100
100
SWIFTLINE GROUP LIMITED & SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
19
Cash (absorbed by)/generated from group operations
2023
2022
£
£
Profit for the year after tax
1,013,950
1,398,672
Adjustments for:
Taxation charged/(credited)
2,448
(555,650)
Investment income
(49,373)
(3,080)
Depreciation and impairment of tangible fixed assets
23,016
25,703
Movements in working capital:
Increase in stocks
(1,043,654)
(238,950)
(Increase)/decrease in debtors
(1,612,915)
814,838
Increase/(decrease) in creditors
782,027
(1,345,974)
Cash (absorbed by)/generated from operations
(884,501)
95,559
20
Cash absorbed by operations - company
2023
2022
£
£
Profit for the year after tax
120,000
-
Adjustments for:
Investment income
(120,000)
-
0
Movements in working capital:
Increase in debtors
(42,282)
-
Cash absorbed by operations
(42,282)
-
21
Analysis of changes in net funds - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
3,649,510
(972,080)
2,677,430
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