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Registered number: 11950220









NSN MANAGEMENT CO LIMITED









ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
NSN MANAGEMENT CO LIMITED
 

CONTENTS



Page
Company Information
 
1
Group Strategic Report
 
2
Directors' Report
 
3 - 4
Independent Auditors' Report
 
5 - 9
Consolidated Statement of Comprehensive Income
 
10
Consolidated Statement of Financial Position
 
11 - 12
Company Statement of Financial Position
 
13
Consolidated Statement of Changes in Equity
 
14
Company Statement of Changes in Equity
 
15
Consolidated Statement of Cash Flows
 
16 - 17
Consolidated Analysis of Net Debt
 
18
Notes to the Financial Statements
 
19 - 42


 
NSN MANAGEMENT CO LIMITED
 
 
COMPANY INFORMATION


Directors
N M Harrison 
N Kingdon 
S Lubeck (resigned 14 November 2023)




Registered number
11950220



Registered office
Junction Business Park
Rake Lane

Manchester

Lancashire

M27 8LR




Independent auditors
Alexander Knight & Co Limited
Chartered Accountants & Statutory Auditor

Westgate House

44 Hale Road

Hale

Altrincham

Cheshire

WA14 2EX




Page 1

 
NSN MANAGEMENT CO LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31ST DECEMBER 2023

Principal activity
 
The principal activity of the Group during the year was that of the manufacture and supply of contract furniture to the leading pub, bar and restaurant groups operating in the UK’s hospitality sector.

Business review and future developments
 
Business Review 
The Group is pleased to report sales of £12.7 million in 2023 albeit being 15% lower than the sales achieved in the prior year.
Sales of £14.9 million reported in 2022 represented an exceptional year where customers played catch-up from deferring cap-ex schemes during 2020 and 2021 primarily due to the Covid Pandemic and market uncertainty across the hospitality sector at that time.
Market confidence has now returned, and the Group’s key customers have resumed their investment in their estates and focusing on growth and the future. The Group is now well positioned with both its existing customers and prospects to win new brands and grow organically with the market.
Future Developments 
The Group’s order book remains strong and the business continues to focus on regaining traction on its success story prior to the Pandemic. Based on current sales activity and strength of the order book the Group is reasonably confident that it will post strong growth in 2024.
The Board continue to drive the business forward and to continue investment where needed to fulfil the Group’s medium to longer term objectives.

Equity and profitability
 
The Board is satisfied with the financial performance of the Group despite it reporting a a small operating loss of £85k in the year compared to an operating profit of £511k in the prior year. 
The Group’s balance sheet remained strong with a good working capital mix supported net assets of £501k at 31 December 2023.

Principal risks and risk management
 
The balance reflects a true and fair position on assets and debt within the Group. The Group has no other obligations besides what is mentioned in the financial statements. Beside this there are no legal procedures of substantial meaning.


This report was approved by the board and signed on its behalf.



N M Harrison
Director

Date: 26 September 2024

Page 2

 
NSN MANAGEMENT CO LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31ST DECEMBER 2023

The directors present their report and the financial statements for the year ended 31 December 2023.

Principal activity

The principal activity of the Group during the year was that of the manufacture and supply of contract furniture to the leading pub, bar and restaurant groups operating in the UK's hospitality sector.

Results and dividends

The loss for the year, after taxation, amounted to £443,069 (2022 - profit £82,762).

Particulars of recommended dividends are detailed in note 13 to the financial statements.

Directors

The directors who served during the year were:

N M Harrison 
N Kingdon 
S Lubeck (resigned 14 November 2023)

Directors' responsibilities statement

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group 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 for the Group's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.

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

Matters covered in the Group Strategic Report

In accordance with section 414C (11) of the Companies Act 2006 Regulations 2013, the directors have included a separate strategic report. This includes information that would have been included in the business review, future developments and the principal risks and uncertainties.

Page 3

 
NSN MANAGEMENT CO LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31ST DECEMBER 2023

Post balance sheet events

There have been no significant events affecting the Group since the year end.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Auditors

The auditorsAlexander Knight & Co Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





N M Harrison
Director

Date: 26 September 2024

Page 4

 
NSN MANAGEMENT CO LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NSN MANAGEMENT CO LIMITED
 

Opinion


We have audited the financial statements of NSN Management Co Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31st December 2023, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Group's and of the parent Company's affairs as at 31st December 2023 and of the Group's loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


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


Conclusions relating to going concern


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


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


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


Page 5

 
NSN MANAGEMENT CO LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NSN MANAGEMENT CO LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group 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 Group Strategic Report or the Directors' Report.


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


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.


Page 6

 
NSN MANAGEMENT CO LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NSN MANAGEMENT CO LIMITED (CONTINUED)


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, 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 Group's and the parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 7

 
NSN MANAGEMENT CO LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NSN MANAGEMENT CO LIMITED (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' 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 Group financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit team:
Obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the company operates in and how the company is complying with the legal and regulatory framework;
Inquired of management and those charged with governance their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud; 
Discussed matters about non-compliance with laws and regulations and how fraud might occur including an assessment of how and where the financial statements may be susceptible to fraud.
As a result of performing the above, our procedures to respond to the risks identified included the following: Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; 
In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments;
All engagement team members were informed of the relevant laws and regulations and potential fraud risks at the planning stage and reminded to remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify such items.
There are inherent limitations in our audit procedures described above. The more removed the laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to inquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
It remains the primary responsibility of management to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.


Page 8

 
NSN MANAGEMENT CO LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NSN MANAGEMENT CO LIMITED (CONTINUED)


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 2006Our 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 Auditors' 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.





Murray Patt FCA (Senior Statutory Auditor)
for and on behalf of
Alexander Knight & Co Limited
Chartered Accountants & Statutory Auditor
Westgate House
44 Hale Road
Hale
Altrincham
Cheshire
WA14 2EX

26 September 2024
Page 9

 
NSN MANAGEMENT CO LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
12,745,294
14,925,333

Cost of sales
  
(9,620,906)
(11,395,914)

Gross profit
  
3,124,388
3,529,419

Administrative expenses
  
(3,209,558)
(3,018,600)

Operating (loss)/profit
 5 
(85,170)
510,819

Interest receivable and similar income
 9 
2,190
971

Interest payable and similar expenses
 10 
(311,848)
(232,762)

(Loss)/profit before tax
  
(394,828)
279,028

Tax on (loss)/profit
 11 
(48,241)
(196,266)

(Loss)/profit for the financial year
  
(443,069)
82,762

Other comprehensive income for the year
  

Total comprehensive income for the year
  
(443,069)
82,762

Profit for the year attributable to:
  

Owners of the parent company
  
443,069
(82,762)

  
443,069
(82,762)

Total comprehensive income attributable to:
  

There were no recognised gains and losses for 2023 or 2022 other than those included in the consolidated statement of comprehensive income.

The notes on pages 19 to 42 form part of these financial statements.

Page 10

 
NSN MANAGEMENT CO LIMITED
REGISTERED NUMBER: 11950220

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 13 
3,206,437
3,797,252

Tangible assets
 14 
495,416
559,676

  
3,701,853
4,356,928

Current assets
  

Stocks
 16 
602,402
866,290

Debtors: amounts falling due within one year
 17 
1,852,188
2,595,304

Cash at bank and in hand
 18 
7,070
130,110

  
2,461,660
3,591,704

Creditors: amounts falling due within one year
 19 
(4,045,293)
(4,650,416)

Net current liabilities
  
 
 
(1,583,633)
 
 
(1,058,712)

Total assets less current liabilities
  
2,118,220
3,298,216

Creditors: amounts falling due after more than one year
 20 
(1,507,736)
(2,010,866)

Provisions for liabilities
  

Deferred tax
 22 
(109,774)
(121,340)

  
 
 
(109,774)
 
 
(121,340)

Net assets
  
500,710
1,166,010


Capital and reserves
  

Called up share capital 
 24 
15,000
15,000

Merger reserve
 25 
3,910,532
3,910,532

Profit and loss account
 25 
(3,424,822)
(2,759,522)

  
500,710
1,166,010


Page 11

 
NSN MANAGEMENT CO LIMITED
REGISTERED NUMBER: 11950220
    
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2023

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




N M Harrison
Director

Date: 26 September 2024

The notes on pages 19 to 42 form part of these financial statements.

Page 12

 
NSN MANAGEMENT CO LIMITED
REGISTERED NUMBER: 11950220

COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Investments
 15 
8,750,000
8,750,000

  
8,750,000
8,750,000

  

Creditors: amounts falling due within one year
 19 
(6,678,342)
(6,019,186)

Net current liabilities
  
 
 
(6,678,342)
 
 
(6,019,186)

Total assets less current liabilities
  
2,071,658
2,730,814

  

Creditors: amounts falling due after more than one year
 20 
(1,456,630)
(1,948,435)

  

Net assets
  
615,028
782,379


Capital and reserves
  

Called up share capital 
 24 
15,000
15,000

Profit and loss account brought forward
  
767,379
885,457

Profit for the year
  
54,880
111,314

Other changes in the profit and loss account

  

(222,231)
(229,392)

Profit and loss account carried forward
  
600,028
767,379

  
615,028
782,379


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 


N M Harrison
Director

Date: 26 September 2024

The notes on pages 19 to 42 form part of these financial statements.

Page 13

 
NSN MANAGEMENT CO LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Merger reserve
Profit and loss account
Total equity

£
£
£
£


At 1st January 2022
15,000
3,910,532
(2,612,892)
1,312,640


Comprehensive income for the year

Profit for the year
-
-
82,762
82,762


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(229,392)
(229,392)


Total transactions with owners
-
-
(229,392)
(229,392)



At 1st January 2023
15,000
3,910,532
(2,759,522)
1,166,010


Comprehensive income for the year

Loss for the year
-
-
(443,069)
(443,069)


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(222,231)
(222,231)


Total transactions with owners
-
-
(222,231)
(222,231)


At 31st December 2023
15,000
3,910,532
(3,424,822)
500,710


The notes on pages 19 to 42 form part of these financial statements.

Page 14

 
NSN MANAGEMENT CO LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1st January 2022
15,000
885,457
900,457


Comprehensive income for the year

Profit for the year
-
111,314
111,314


Contributions by and distributions to owners

Dividends: Equity capital
-
(229,392)
(229,392)


Total transactions with owners
-
(229,392)
(229,392)



At 1st January 2023
15,000
767,379
782,379


Comprehensive income for the year

Profit for the year
-
54,880
54,880


Contributions by and distributions to owners

Dividends: Equity capital
-
(222,231)
(222,231)


Total transactions with owners
-
(222,231)
(222,231)


At 31st December 2023
15,000
600,028
615,028


The notes on pages 19 to 42 form part of these financial statements.

Page 15

 
NSN MANAGEMENT CO LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31ST DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

(Loss)/profit for the financial year
(443,069)
82,762

Adjustments for:

Amortisation of intangible assets
590,814
590,814

Depreciation of tangible assets
106,654
120,024

Loss on disposal of tangible assets
(2,324)
1,920

Interest paid
311,848
237,454

Interest received
(2,190)
(971)

Taxation charge
48,241
196,265

Decrease/(increase) in stocks
263,888
(256,085)

Decrease/(increase) in debtors
698,000
(554,534)

(Increase)/decrease in amounts owed by groups
(26,617)
-

(Decrease)/increase in creditors
(663,051)
880,170

Corporation tax received
-
7,110

Net cash generated from operating activities

882,194
1,304,929


Cash flows from investing activities

Purchase of tangible fixed assets
(43,894)
-

Sale of tangible fixed assets
3,823
1,333

Interest received
2,190
971

HP interest paid
(4,645)
(4,693)

Net cash from investing activities

(42,526)
(2,389)

Cash flows from financing activities

New secured loans
-
1,750,000

Repayment of loans
(491,805)
(2,165,513)

Repayment of/new finance leases
(8,717)
(46,267)

Dividends paid
(222,231)
(229,392)

Interest paid
(307,203)
(232,761)

Net cash used in financing activities
(1,029,956)
(923,933)

Net (decrease)/increase in cash and cash equivalents
(190,288)
378,607

Cash and cash equivalents at beginning of year
130,110
(248,497)

Cash and cash equivalents at the end of year
(60,178)
130,110


Cash and cash equivalents at the end of year comprise:
Page 16

 
NSN MANAGEMENT CO LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31ST DECEMBER 2023


2023
2022

£
£


Cash at bank and in hand
7,070
130,110

Bank overdrafts
(67,248)
-

(60,178)
130,110


The notes on pages 19 to 42 form part of these financial statements.

Page 17

 
NSN MANAGEMENT CO LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31ST DECEMBER 2023





At 1st January 2023
Cash flows
New finance leases
At 31st December 2023
£

£

£

£

Cash at bank and in hand

130,110

(123,040)

-

7,070

Bank overdrafts

-

(67,248)

-

(67,248)

Debt due after 1 year

(1,948,435)

491,805

-

(1,456,630)

Debt due within 1 year

(491,667)

-

-

(491,667)

Finance leases

(99,654)

49,796

(41,080)

(90,938)


(2,409,646)
351,313
(41,080)
(2,099,413)

The notes on pages 19 to 42 form part of these financial statements.

Page 18

 
NSN MANAGEMENT CO LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2023

1.


General information

The company is a private company limited by shares, registered in England and Wales (registered number 11950220). The address of the registered office is Junction Business Park, Rake Lane, Swinton, Manchester, Lancashire, M27 8LR.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

The financial statements are prepared in sterling, which is the functional currency of the entity.

The following principal accounting policies have been applied:

  
2.2

Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax from the proceeds.
Dividends and other distributions to the company's shareholders are recognised as a liability in the financial statements in the period in which the dividends and other distributions are approved by the company's shareholders. These amounts are recognised in the statement of changes in equity.

  
2.3

Disclosure exemptions

The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of NSN Management Co Limited which can be obtained from Companies House. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102:
(a) Disclosures in respect of each class of share capital have not been presented.
(b) No cash flow statement has been presented for the company.
(c) Disclosures in respect of financial instruments have not been presented.
(e) No disclosure has been given for the aggregate remuneration of key management personnel.

Page 19

 
NSN MANAGEMENT CO LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2023

2.Accounting policies (continued)

 
2.4

Basis of consolidation

The Consolidated financial statements consolidate the Consolidated financial statements of NSN Management Co Limited and all of its subsidiary undertakings.
The results of subsidiaries acquired or disposed of during the year are included from or to the date that control passes.
The parent company has applied the exemption contained in section 408 of the Companies Act 2006 and has not presented its individual profit and loss account.

 
2.5

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

Page 20

 
NSN MANAGEMENT CO LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2023

2.Accounting policies (continued)

 
2.6

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Group has transferred the significant risks and rewards of ownership to the buyer;
the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.7

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.8

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.9

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.10

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

Page 21

 
NSN MANAGEMENT CO LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2023

2.Accounting policies (continued)

 
2.11

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Group in independently administered funds.

 
2.12

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Page 22

 
NSN MANAGEMENT CO LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2023

2.Accounting policies (continued)

 
2.13

Intangible assets

Goodwill

Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business.
Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight-line basis over its useful life. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed ten years.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 The estimated useful lives range as follows:

Goodwill
-
10% straight line 

 
2.14

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the Group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Page 23

 
NSN MANAGEMENT CO LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2023

2.Accounting policies (continued)


2.14
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, as follows: .

Depreciation is provided on the following basis:

Leasehold Property Improvements
-
20% reducing balance
Plant and machinery
-
15% reducing balance
Motor vehicles
-
25% reducing balance
Computer equipment
-
33% straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.15

Valuation of investments

Fixed asset investments are measured at fair value with changes in fair value being recognised in profit or loss.

 
2.16

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Work in progress and finished goods include labour and attributable
overheads.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.17

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.18

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

Page 24

 
NSN MANAGEMENT CO LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2023

2.Accounting policies (continued)

 
2.19

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.20

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.21

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Group has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

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, with 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 trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Page 25

 
NSN MANAGEMENT CO LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2023

2.Accounting policies (continued)


2.21
Financial instruments (continued)

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

Derecognition of financial instruments

Derecognition of financial assets

Page 26

 
NSN MANAGEMENT CO LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2023

2.Accounting policies (continued)


2.21
Financial instruments (continued)

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.

 
2.22

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Dividends on shares recognised as liabilities are recognised as expenses and classified within interest payable.

Page 27

 
NSN MANAGEMENT CO LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2023

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. 
Significant judgements
Management do not feel that there are any judgements (apart from those involving estimations) that have been made in the process of applying the entity's accounting policies which have a significant effect on the amounts recognised in the financial statements.
Key sources of estimation uncertainty
Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:
Investments
Investments in subsidiaries are valued at the fair value of the shares acquired. The directors annually consider the need for any impairment and provide as appropriate.
Estimated useful life and residual value of fixed assets
Depreciation of tangible fixed assets have been based on the estimated useful lives and residual values deemed appropriate by the directors. Estimated useful lives and residual values are reviewed annually and revised as appropriate. Revisions take into account estimated useful lives and residual values, as evidenced by disposals during current and prior accounting periods.
Impairment of debtors
The company makes an estimate of the recoverable value of trade debtors. When assessing the impairment of trade debtors, management include factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.


4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Sale of goods
12,745,294
14,925,333

12,745,294
14,925,333


All turnover arose within the United Kingdom.

Page 28

 
NSN MANAGEMENT CO LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2023

5.


Operating (loss)/profit

The operating (loss)/profit is stated after charging:

2023
2022
£
£

Admin - profit/loss on sale of assets
(2,324)
1,920

Tangible fixed assets - depreciation
106,654
120,024

Intangible fixed assets - amortisation
590,814
590,814

Exchange differences
(146)
-

Other operating lease rentals
366,195
372,308


6.


Auditors' remuneration

During the year, the Group obtained the following services from the Company's auditors:


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
8,700
7,550

Page 29

 
NSN MANAGEMENT CO LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2023

7.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Wages and salaries
3,687,569
3,847,018
-
-

Social security costs
325,129
331,694
-
-

Cost of defined contribution scheme
59,981
55,167
-
-

4,072,679
4,233,879
-
-


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Production staff
93
92



Distribution staff
5
2



Administrative staff
18
15



Management staff
3
4

119
113


8.


Directors' remuneration

2023
2022
£
£



Directors' emoluments
64,321
59,366

Company contributions to defined contributions pension plans
2,160
2,160

66,481
61,526

During the year retirement benefits were accruing to 1 director (2022 - 1) in respect of defined contribution pension schemes.

Page 30

 
NSN MANAGEMENT CO LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2023

9.


Interest receivable

2023
2022
£
£


Other interest receivable
2,190
971

2,190
971


10.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
167,351
118,079

Other loan interest payable
130,262
109,173

Preference share dividends
785
785

Finance leases and hire purchase contracts
4,645
4,693

Other interest payable
8,805
32

311,848
232,762


11.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
59,807
159,821


59,807
159,821


Total current tax
59,807
159,821

Deferred tax


Origination and reversal of timing differences
(11,566)
36,445

Total deferred tax
(11,566)
36,445


Tax on (loss)/profit
48,241
196,266
Page 31

 
NSN MANAGEMENT CO LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2023
 
11.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 23.52% (2022 - 19%). The differences are explained below:

2023
2022
£
£


(Loss)/profit on ordinary activities before tax
(394,828)
279,028


(Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.52% (2022 - 19%)
(92,864)
53,015

Effects of:


Non-tax deductible amortisation of goodwill and impairment
138,963
112,255

Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
4,480
520

Capital allowances for year in excess of depreciation
-
1,354

Adjustments to tax charge in respect of future periods
(688)
29,122

Super-deduction
(1,650)
-

Total tax charge for the year
48,241
196,266


Factors that may affect future tax charges

Deferred tax is measured on a non-discounted basis at the tax rate which is expected to apply in the periods in which timing differences reverse, based on tax rates and laws substantively enacted at the balance sheet date. At Budget 2023, the government confirmed that the Corporation Tax main rate for future years starting 1 April 2023 would be 25%.

Page 32

 
NSN MANAGEMENT CO LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2023

12.


Dividends

2023
2022
£
£


Ordinary A shares
88,932
88,932


Ordinary B shares
69,303
76,296


Ordinary C shares
42,996
42,996


Ordinary D shares
10,680
10,680


Ordinary E shares
840
1,008


Ordinary F shares
9,480
9,480


Dividends paid during the year (excluding those for which a liability existed atthe period end)
785
785

223,016
230,177

Page 33

 
NSN MANAGEMENT CO LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2023

13.


Intangible assets

Group and Company





Goodwill

£



Cost


At 1 January 2023
5,915,501



At 31st December 2023

5,915,501



Amortisation


At 1 January 2023
2,118,249


Charge for the year on owned assets
590,814



At 31st December 2023

2,709,063



Net book value



At 31st December 2023
3,206,438



At 31st December 2022
3,797,252



The company has no intangible assets.

Page 34

 
NSN MANAGEMENT CO LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2023

14.


Tangible fixed assets

Group






Long-term leasehold property
Plant and machinery
Motor vehicles
Office equipment
Total

£
£
£
£
£



Cost or valuation


At 1 January 2023
191,591
643,539
159,825
13,694
1,008,649


Additions
-
2,623
40,500
771
43,894


Disposals
-
(1,117)
(2,452)
-
(3,569)



At 31st December 2023

191,591
645,045
197,873
14,465
1,048,974



Depreciation


At 1 January 2023
105,750
249,521
81,137
12,566
448,974


Charge for the year on owned assets
17,168
59,094
29,163
1,229
106,654


Disposals
-
(535)
(1,535)
-
(2,070)



At 31st December 2023

122,918
308,080
108,765
13,795
553,558



Net book value



At 31st December 2023
68,673
336,965
89,108
670
495,416



At 31st December 2022
85,841
394,018
78,688
1,129
559,676

The company has no tangible assets. 
The total carrying amount of tangible fixed assets are pledged by way of a fixed and floating charge as security for the group's financing facilities. 

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2023
2022
£
£



Plant and machinery
116,666
137,254

Motor vehicles
30,854
7,975

147,520
145,229

Page 35

 
NSN MANAGEMENT CO LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2023

15.


Fixed asset investments

Group












Company





Investments in subsidiary companies

£



Cost or valuation


At 1 January 2023
11,750,000



At 31st December 2023

11,750,000



Impairment


At 1 January 2023
3,000,000



At 31st December 2023

3,000,000


Subsidiary undertaking


The following was a subsidiary undertaking of the Company:

Name

Class of shares

Holding

Carlick Contract Furniture Limited
Ordinary
100%


16.


Stocks

Group
Group
2023
2022
£
£

Raw materials and consumables
602,402
866,290

602,402
866,290


The total carrying amount of stock is pledged by way of a fixed and floating charge as security for the group's financing facilities.

Page 36

 
NSN MANAGEMENT CO LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2023

17.


Debtors

Group
Group
2023
2022
£
£


Trade debtors
1,565,665
2,270,271

Amounts owed by group undertakings
26,617
-

Other debtors
66,044
145,337

Prepayments and accrued income
193,862
179,696

1,852,188
2,595,304


Trade debtors are stated net of provisions for impairment of £25,232 (2022: £25,232).
The total carrying amount of debtors is pledged by way of a fixed and floating charge as security for the group's financing facilities.
The Company has no debtors. 


18.


Cash and cash equivalents

Group
Group
2023
2022
£
£

Cash at bank and in hand
7,070
130,110

Less: bank overdrafts
(67,248)
-

(60,178)
130,110


Page 37

 
NSN MANAGEMENT CO LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2023

19.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Bank overdrafts
67,248
-
-
-

Bank loans
491,667
491,667
491,667
491,667

Trade creditors
1,268,964
1,568,808
-
-

Amounts owed to group undertakings
-
-
6,186,675
5,527,519

Corporation tax
147,892
159,822
-
-

Other taxation and social security
452,504
329,653
-
-

Obligations under finance lease and hire purchase contracts
39,832
37,223
-
-

Other creditors
1,370,227
1,883,534
-
-

Accruals and deferred income
206,959
179,709
-
-

4,045,293
4,650,416
6,678,342
6,019,186


Disclosure of the terms and conditions attached to the non-equity shares is made in note 24.

The hire purchase agreements are secured over the assets to which they relate.
Other creditors of £1,111,445 (2022: £1,772,719) are secured over the book debts of the group.
Bank loans and overdrafts are secured over the assets of the group.

Page 38

 
NSN MANAGEMENT CO LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2023

20.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Bank loans
1,378,119
1,869,924
1,378,119
1,869,924

Net obligations under finance leases and hire purchase contracts
51,106
62,431
-
-

Share capital treated as debt
78,511
78,511
78,511
78,511

1,507,736
2,010,866
1,456,630
1,948,435


Disclosure of the terms and conditions attached to the non-equity shares is made in note 24.

Included within creditors: amounts falling due after more than one year is an amount of £nil (2022: £203,689) for the group and £nil (2022: £203,689) for the company in respect of liabilities payable or repayable by instalments which fall due for payment after more than five years from the reporting date.
The repayment terms of the loan is £24,306 per month with an interest rate of 4.65% above the Bank of England rate.
The hire purchase agreements are secured over the assets to which they relate.
Bank loans and overdrafts are secured over the assets of the group.
Preference shares are non-redeemable attracting a 1% dividend.


21.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

Group
Group
2023
2022
£
£

Within one year
(39,832)
-

Between 1-5 years
(51,106)
-

(90,938)
-

Page 39

 
NSN MANAGEMENT CO LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2023

22.


Deferred taxation


Group



2023


£






At beginning of year
(121,340)


Utilised in year
11,566



At end of year
(109,774)

Company


2023






At end of year
-
Group
Group
2023
2022
£
£

Accelerated capital allowances
(109,774)
(121,340)

(109,774)
(121,340)


23.


Employee benefits

Defined contribution plans - 
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £59,981 (2022: £55,167).

Page 40

 
NSN MANAGEMENT CO LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2023

24.


Share capital

2023
2022
£
£
Shares classified as equity

Allotted, called up and fully paid



4,850 (2022 - 4,850) Ordinary A shares of £1.00 each
4,850
4,850
3,950 (2022 - 3,950) Ordinary B shares of £1.00 each
3,950
3,950
3,950 (2022 - 3,950) Ordinary C shares of £1.00 each
3,950
3,950
750 (2022 - 750) Ordinary D shares of £1.00 each
750
750
750 (2022 - 750) Ordinary E shares of £1.00 each
750
750
750 (2022 - 750) Ordinary F shares of £1.00 each
750
750

15,000

15,000

2023
2022
£
£
Shares classified as debt

Allotted, called up and fully paid



78,511 (2022 - 78,511) Preference shares shares of £1.00 each
78,511
78,511



25.


Reserves

Merger Reserve

This reserve records the merger relief available upon the acquisition of shares in the subsidiary company.

Profit and loss account

This reserve records retained earnings and accumulated losses.


26.


Commitments under operating leases

At 31st December 2023 the Group had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
Group
£
£


Not later than 1 year
371,107
363,284

Later than 1 year and not later than 5 years
308,153
663,217

679,260
1,026,501

Page 41

 
NSN MANAGEMENT CO LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2023

27.


Controlling party

The ultimate parent company is N & N Management Limited, a company registered in England and Wales. The registered office address is Junction Business Park, Rake Lane, Swinton, Manchester, England, M27 8LR.

 
Page 42