REGISTERED NUMBER: 10241871 (England and Wales) |
EDI HOLDINGS LIMITED |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
REGISTERED NUMBER: 10241871 (England and Wales) |
EDI HOLDINGS LIMITED |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
EDI HOLDINGS LIMITED (REGISTERED NUMBER: 10241871) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 | to | 3 |
Report of the Directors | 4 | to | 5 |
Report of the Independent Auditors | 6 | to | 8 |
Consolidated Income Statement | 9 |
Consolidated Other Comprehensive Income | 10 |
Consolidated Balance Sheet | 11 |
Company Balance Sheet | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Financial Statements | 17 | to | 29 |
EDI HOLDINGS LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditor |
Swansea, United Kingdom |
AUDITORS OFFICE: |
Charter Court |
Swansea Enterprise Park |
Swansea |
SA7 9FS |
EDI HOLDINGS LIMITED (REGISTERED NUMBER: 10241871) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The directors present their strategic report of the company and the group for the year ended 31 December 2023. |
REVIEW OF BUSINESS |
The Income Statement and Balance Sheet for the year which includes all relevant key performance indicators is set out in the annexed financial statements. |
The principal activity of the trading subsidiary of the group during the year was that of bespoke vehicle design and modification. The principal activity of the company during the year was that of a holding company. |
The strategy of the business is to increase its market share by focussing on new product design and strong customer service. |
The group enjoys a number of competitive advantages including strong brand recognition, where it consistently achieves a strong market share; a well-established reputation for price competitiveness; a knowledgeable and enthusiastic workforce and a strong customer focus throughout the business. |
Whilst trading conditions are expected to remain competitive throughout FY'24, the board consider the group to be well positioned to manage and take on this challenge. |
Key performance indicators |
The group's key performance indicators (KPI's) are summarised below: |
KPI's - Year ended | 31 December 2023 | 31 December 2022 |
Turnover | £24,049k | £25,805k |
Cash at bank | £2,613k | £2,515k |
Net current assets | £3,619k | £2,845k |
Net assets | £7,626k | £4,485k |
EDI HOLDINGS LIMITED (REGISTERED NUMBER: 10241871) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The management of the business and the execution of the group's strategy are subject to a number of risks. The key business risks affecting the group are considered to relate to competitor activity and employee retention and are summarised as follows : |
Risk | Potential impact | Mitigation |
Competition |
The market in which the group operates is subject to intense competition. The impact of such competition could impact on margins. |
The group continues to invest heavily in new product design. Providing customers with a choice of options, coupled with a strong focus on customer service, results in a high level of repeat business. |
People |
The business could be impacted by the loss of key individuals. |
The business looks to increase staff engagement through (1) opportunities to give feedback and to influence future business developments and (2) training and progression opportunities. |
Price risk |
The group is not exposed to significant commodity price risk as a result of its operations. |
Credit risk |
The group's financial assets are cash and trade debtors. The group's credit risk is primarily attributable to its trade debtors which are presented in the balance sheet net of allowances for doubtful debts. The group has implemented policies that require appropriate credit checks on potential customers before sales are made. |
Liquidity risk |
The group actively maintains a mixture of long-term and short-term debt finance that is designed to ensure that the group has sufficient funds for operations and planned expansions. |
Interest rate cash flow risk |
The group has both interest bearing assets and interest-bearing liabilities. Interest bearing assets comprise only cash balances, which earn interest at floating rates. The group has a policy of maintaining debt at floating rates. The directors will revisit the appropriateness of this policy should the group's operations change in size or nature. |
ON BEHALF OF THE BOARD: |
EDI HOLDINGS LIMITED (REGISTERED NUMBER: 10241871) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 December 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of bespoke vehicle design and modification. The principal activity of the company during the year was that of a holding company. |
DIVIDENDS |
Dividends of £100,000 was distributed for the year ended 31 December 2023 (31 December 2022 - £Nil). |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
GOING CONCERN |
The financial statements have been prepared on a going concern basis which assumes that the group will continue in operational existence for the foreseeable future. In making their assessment the directors have reviewed the balance sheet, the likely future cash flows of the business and have considered the facilities that are in place at the date of signing the report. |
The group meets its day to day working capital requirements from its cash reserves. At the date of signing the report, sales to all key markets have continued to meet budgeted levels. With no indication that at the current time this position will change, the group's forecast and projections show that the group will be able to operate sufficiently. |
At the time of approving the financial statements, the directors have reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue adopt the going concern basis of accounting in preparing the financial statements. |
DISCLOSURE IN THE STRATEGIC REPORT |
Included in the group's strategic report is a review of the business and description of the principal risks and uncertainties facing the group. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), 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 and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
EDI HOLDINGS LIMITED (REGISTERED NUMBER: 10241871) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES - continued |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, MHA, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
Following a rebranding exercise on 15 May 2023 the trading name of the company's independent auditor changed from MHA Macintyre Hudson to MHA. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
EDI HOLDINGS LIMITED |
Opinion |
We have audited the financial statements of EDI Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2023 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and 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. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
EDI HOLDINGS LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on pages four and five, 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 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. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
- Enquiry of management and those charged with governance around actual, potential or suspected litigation, claims, non-compliance with applicable laws and regulations and fraud. |
- Review of legal and professional fees for evidence of legal work undertaken or fines/penalties incurred. |
- Reviewing of financial statements disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations. |
- Performing audit work over the risk of management override, including testing of journal entries and other adjustments for appropriateness. |
- Evaluating the business rationale of significant transactions outside the normal course of business, and reviewing accounting estimates for bias; |
- Discussions amongst the engagement team in relation to how and where fraud might occur in the financial statements and any potential indicators of fraud. |
- Discussions with management over any potential or suspected fraud. |
- Performing audit work over the recognition of revenue on deliveries of services occurring at the year end to provide assurance over cut-off. |
- Performing substantive tests of detail over the completeness/existence of income within the financial system. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
EDI HOLDINGS LIMITED |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Statutory Auditor |
Swansea, United Kingdom |
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership |
in England and Wales (registered number OC312313). |
EDI HOLDINGS LIMITED (REGISTERED NUMBER: 10241871) |
CONSOLIDATED INCOME STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 3 | 24,049,425 | 25,804,788 |
Cost of sales | 12,318,448 | 14,701,392 |
GROSS PROFIT | 11,730,977 | 11,103,396 |
Administrative expenses | 7,259,954 | 8,195,262 |
4,471,023 | 2,908,134 |
Other operating income | 36,400 | 218,412 |
OPERATING PROFIT | 5 | 4,507,423 | 3,126,546 |
Interest payable and similar expenses | 6 | 221,585 | 357,310 |
PROFIT BEFORE TAXATION | 4,285,838 | 2,769,236 |
Tax on profit | 7 | 1,045,006 | 562,093 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 3,240,832 | 2,207,143 |
EDI HOLDINGS LIMITED (REGISTERED NUMBER: 10241871) |
CONSOLIDATED OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 3,240,832 | 2,207,143 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
3,240,832 |
2,207,143 |
Total comprehensive income attributable to: |
Owners of the parent | 3,240,832 | 2,207,143 |
EDI HOLDINGS LIMITED (REGISTERED NUMBER: 10241871) |
CONSOLIDATED BALANCE SHEET |
31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 | 55,928 | 86,606 |
Tangible assets | 11 | 6,015,246 | 5,459,269 |
Investments | 12 | - | - |
6,071,174 | 5,545,875 |
CURRENT ASSETS |
Stocks | 13 | 1,638,266 | 2,468,836 |
Debtors | 14 | 3,042,711 | 2,900,212 |
Cash at bank and in hand | 2,612,545 | 2,514,956 |
7,293,522 | 7,884,004 |
CREDITORS |
Amounts falling due within one year | 15 | 3,674,238 | 5,038,493 |
NET CURRENT ASSETS | 3,619,284 | 2,845,511 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
9,690,458 |
8,391,386 |
CREDITORS |
Amounts falling due after more than one year |
16 |
(1,055,093 |
) |
(3,103,678 |
) |
PROVISIONS FOR LIABILITIES | 20 | (1,009,652 | ) | (802,827 | ) |
NET ASSETS | 7,625,713 | 4,484,881 |
CAPITAL AND RESERVES |
Called up share capital | 21 | 253 | 253 |
Share premium | 22 | 999,960 | 999,960 |
Other reserves | 22 | 336,977 | 336,977 |
Retained earnings | 22 | 6,288,523 | 3,147,691 |
SHAREHOLDERS' FUNDS | 7,625,713 | 4,484,881 |
The financial statements were approved by the Board of Directors and authorised for issue on 26 September 2024 and were signed on its behalf by: |
J B Pace - Director |
EDI HOLDINGS LIMITED (REGISTERED NUMBER: 10241871) |
COMPANY BALANCE SHEET |
31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
CURRENT ASSETS |
Debtors | 14 |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 21 | 253 | 253 |
Share premium | 22 | 999,960 | 999,960 |
Retained earnings | 22 | (100 | ) | (100 | ) |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 100,000 | - |
The financial statements were approved by the Board of Directors and authorised for issue on |
EDI HOLDINGS LIMITED (REGISTERED NUMBER: 10241871) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Called up |
share | Retained | Share | Other | Total |
capital | earnings | premium | reserves | equity |
£ | £ | £ | £ | £ |
Balance at 1 January 2022 | 253 | 940,548 | 999,960 | 336,977 | 2,277,738 |
Total comprehensive income | - | 2,207,143 | - | - | 2,207,143 |
Balance at 31 December 2022 | 253 | 3,147,691 | 999,960 | 336,977 | 4,484,881 |
Dividends | - | (100,000 | ) | - | - | (100,000 | ) |
Total comprehensive income | - | 3,240,832 | - | - | 3,240,832 |
Balance at 31 December 2023 | 253 | 6,288,523 | 999,960 | 336,977 | 7,625,713 |
EDI HOLDINGS LIMITED (REGISTERED NUMBER: 10241871) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 January 2022 | 253 | (100 | ) | 999,960 | 1,000,113 |
Balance at 31 December 2022 | 253 | (100 | ) | 999,960 | 1,000,113 |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31 December 2023 | ( |
) |
EDI HOLDINGS LIMITED (REGISTERED NUMBER: 10241871) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 3,308,657 | 6,385,016 |
Interest paid | (189,107 | ) | (327,083 | ) |
Interest element of hire purchase payments paid |
(32,478 |
) |
(30,227 |
) |
Tax paid | (50,883 | ) | (563 | ) |
Net cash from operating activities | 3,036,189 | 6,027,143 |
Cash flows from investing activities |
Purchase of intangible fixed assets | - | (32,069 | ) |
Purchase of tangible fixed assets | (1,542,664 | ) | (2,707,594 | ) |
Sale of tangible fixed assets | - | 256,912 |
Net cash from investing activities | (1,542,664 | ) | (2,482,751 | ) |
Cash flows from financing activities |
New loans in year | - | 498,920 |
Loan repayments in year | (1,435,684 | ) | (2,874,895 | ) |
Net cashflows on hire purchase contracts | 139,748 | 161,004 |
Equity dividends paid | (100,000 | ) | - |
Net cash from financing activities | (1,395,936 | ) | (2,214,971 | ) |
Increase in cash and cash equivalents | 97,589 | 1,329,421 |
Cash and cash equivalents at beginning of year |
2 |
2,514,956 |
1,185,535 |
Cash and cash equivalents at end of year |
2 |
2,612,545 |
2,514,956 |
EDI HOLDINGS LIMITED (REGISTERED NUMBER: 10241871) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation | 4,285,838 | 2,769,236 |
Depreciation charges | 1,017,365 | 1,668,828 |
Profit on disposal of fixed assets | - | (81,096 | ) |
Government grants | (36,400 | ) | (218,412 | ) |
Finance costs | 221,585 | 357,310 |
5,488,388 | 4,495,866 |
Decrease/(increase) in stocks | 830,570 | (634,607 | ) |
(Increase)/decrease in trade and other debtors | (142,499 | ) | 2,080,138 |
(Decrease)/increase in trade and other creditors | (2,867,802 | ) | 443,619 |
Cash generated from operations | 3,308,657 | 6,385,016 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 December 2023 |
31/12/23 | 1/1/23 |
£ | £ |
Cash and cash equivalents | 2,612,545 | 2,514,956 |
Year ended 31 December 2022 |
31/12/22 | 1/1/22 |
£ | £ |
Cash and cash equivalents | 2,514,956 | 1,185,535 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1/1/23 | Cash flow | At 31/12/23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 2,514,956 | 97,589 | 2,612,545 |
2,514,956 | 97,589 | 2,612,545 |
Debt |
Finance leases | (435,983 | ) | (139,748 | ) | (575,731 | ) |
Debts falling due within 1 year | (303,651 | ) | 53,651 | (250,000 | ) |
Debts falling due after 1 year | (1,382,033 | ) | 1,382,033 | - |
(2,121,667 | ) | 1,295,936 | (825,731 | ) |
Total | 393,289 | 1,393,525 | 1,786,814 |
EDI HOLDINGS LIMITED (REGISTERED NUMBER: 10241871) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | STATUTORY INFORMATION |
EDI Holdings Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
Monetary amounts in these financial statements are rounded to nearest £. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Going concern |
These financial statements are prepared on the going concern basis. The directors have a reasonable expectation that the group will continue in operational existence for the foreseeable future. The directors are confident in the group's ability to continue to trade for the foreseeable future and are prepared to provide the necessary financial support to enable it to do so. The financial statements have been prepared on a going concern basis on the assumption that the directors, the parent group and associated parties will continue to support the group to meet its working capital requirements as necessary. |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The group has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c); |
• | the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A; |
• | the requirement of paragraph 33.7. |
Basis of consolidation |
The consolidated financial statements for the group consist of the financial statements of the parent company EDI Holdings Limited and all other subsidiaries (ie. entities that the Group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes. All financial statements are made up to 31 December 2023. |
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless all the transaction provides evidence of an impairment of the asset transferred. |
Where necessary, adjustments are made to the financial statements of the subsidiaries to bring the accounting policies into line with those used by other members of the group. |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
EDI HOLDINGS LIMITED (REGISTERED NUMBER: 10241871) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Significant judgements and estimates |
In the application of the group's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors which are considered to be relevant. Actual results may differ from these estimates. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision only effects that period or in the period of the revision and future periods if the revision affects both current and future periods. |
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 recognition |
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. |
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably.The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Land and buildings - in accordance with the property |
Plant and machinery - at varying rates on cost |
Fixtures and fittings - 25% on cost |
Motor vehicles - 25% on cost |
Computer equipment - 20% on cost |
EDI HOLDINGS LIMITED (REGISTERED NUMBER: 10241871) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Stocks |
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition. |
Financial instruments |
Basic financial assets, which include trade and other debtors and cash and bank balances, are initially measured at transaction price 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. |
Basic financial liabilities, including trade and other creditors and bank loans, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. |
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. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
EDI HOLDINGS LIMITED (REGISTERED NUMBER: 10241871) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Assets held under finance leases, which are leases where substantially all the risks and rewards of ownership of the asset have passed to the company, and hire purchase contracts are capitalised in the statement of financial position and are depreciated over the shorter of the lease term and the assets' useful lives. A corresponding liability is recognised for the lower of the fair value of the leased asset and the present value of the minimum lease payments are apportioned between the reduction of the lease liability and finance charges in the income statement so as to achieve a constant rate of interest on the remaining balance of the liability. |
Equity instruments |
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
4. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries, Social security and Other pension costs | 4,593,952 | 5,586,367 |
The average number of employees during the year was as follows : |
2023 | 2022 |
£ | £ |
Production, sales and operations | 87 | 120 |
Administration | 16 | 16 |
Directors | 4 | 4 |
107 | 140 |
2023 | 2022 |
£ | £ |
Directors' remuneration | 576,734 | 552,793 |
Information regarding the highest paid director is as follows: |
2023 | 2022 |
£ | £ |
Emoluments etc | 260,298 | 236,925 |
EDI HOLDINGS LIMITED (REGISTERED NUMBER: 10241871) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Hire of plant and machinery | 19,978 | 33,424 |
Other operating leases | 430,444 | 346,279 |
Depreciation - owned and leased assets | 986,687 | 1,649,772 |
Profit on disposal of fixed assets | - | (81,096 | ) |
Development costs amortisation | 1,411 | 2,049 |
Computer software amortisation | 29,267 | 17,007 |
Auditors' remuneration | 22,500 | 17,500 |
Foreign exchange differences | 38,364 | (3,930 | ) |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank interest | (16,119 | ) | 42,755 |
Bank loan interest | 205,226 | 284,328 |
Hire purchase | 32,478 | 30,227 |
221,585 | 357,310 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | 838,181 | 50,883 |
Deferred tax | 206,825 | 511,210 |
Tax on profit | 1,045,006 | 562,093 |
EDI HOLDINGS LIMITED (REGISTERED NUMBER: 10241871) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
7. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax | 4,285,838 | 2,769,236 |
Profit multiplied by the standard rate of corporation tax in the UK of 23.520 % (2022 - 19 %) |
1,008,029 |
526,155 |
Effects of: |
Expenses not deductible for tax purposes | 12,071 | 13,815 |
Deferred tax calculated at future tax rates | 12,063 | 22,123 |
Non qualifying depreciation | 9,499 | - |
Superdeduction | (649 | ) | - |
Capital items expenses | 1,011 | - |
Other differences | 2,982 | - |
Total tax charge | 1,045,006 | 562,093 |
8. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
9. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Dividends | 100,000 |
EDI HOLDINGS LIMITED (REGISTERED NUMBER: 10241871) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
10. | INTANGIBLE FIXED ASSETS |
Group |
Development | Computer |
costs | software | Totals |
£ | £ | £ |
COST |
At 1 January 2023 |
and 31 December 2023 | 162,437 | 117,069 | 279,506 |
AMORTISATION |
At 1 January 2023 | 160,768 | 32,132 | 192,900 |
Amortisation for year | 1,411 | 29,267 | 30,678 |
At 31 December 2023 | 162,179 | 61,399 | 223,578 |
NET BOOK VALUE |
At 31 December 2023 | 258 | 55,670 | 55,928 |
At 31 December 2022 | 1,669 | 84,937 | 86,606 |
Company |
The Company had no Intangible Fixed Assets at the balance sheet date. |
11. | TANGIBLE FIXED ASSETS |
Group |
Assets |
Short | under | Plant and |
leasehold | construction | machinery |
£ | £ | £ |
COST |
At 1 January 2023 | 3,073,101 | - | 5,262,036 |
Additions | 62,224 | 1,276,880 | 46,267 |
Reclassification/transfer | (2,013,777 | ) | 2,915,669 | (789,419 | ) |
At 31 December 2023 | 1,121,548 | 4,192,549 | 4,518,884 |
DEPRECIATION |
At 1 January 2023 | 471,589 | - | 3,111,745 |
Charge for year | 162,136 | - | 620,723 |
Reclassification/transfer | (696 | ) | - | - |
At 31 December 2023 | 633,029 | - | 3,732,468 |
NET BOOK VALUE |
At 31 December 2023 | 488,519 | 4,192,549 | 786,416 |
At 31 December 2022 | 2,601,512 | - | 2,150,291 |
EDI HOLDINGS LIMITED (REGISTERED NUMBER: 10241871) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
11. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2023 | 232,593 | 344,794 | 524,387 | 9,436,911 |
Additions | - | 149,990 | 7,303 | 1,542,664 |
Reclassification/transfer | (102,562 | ) | - | (9,910 | ) | 1 |
At 31 December 2023 | 130,031 | 494,784 | 521,780 | 10,979,576 |
DEPRECIATION |
At 1 January 2023 | 92,686 | 39,202 | 262,420 | 3,977,642 |
Charge for year | 12,958 | 109,271 | 81,600 | 986,688 |
Reclassification/transfer | 696 | - | - | - |
At 31 December 2023 | 106,340 | 148,473 | 344,020 | 4,964,330 |
NET BOOK VALUE |
At 31 December 2023 | 23,691 | 346,311 | 177,760 | 6,015,246 |
At 31 December 2022 | 139,907 | 305,592 | 261,967 | 5,459,269 |
The net book value of tangible fixed assets includes £802,014 (2022 - £802,962) in respect of assets held under hire purchase contracts. |
Company |
The Company had no Tangible Fixed Assets at the balance sheet date. |
12. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
EDI HOLDINGS LIMITED (REGISTERED NUMBER: 10241871) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
12. | FIXED ASSET INVESTMENTS - continued |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiary |
Registered office: United Kingdom |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
13. | STOCKS |
Group |
2023 | 2022 |
£ | £ |
Stocks | 1,606,183 | 2,323,880 |
Work-in-progress | 32,083 | 144,956 |
1,638,266 | 2,468,836 |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade debtors | 537,991 | 1,856,329 |
Amounts owed by group undertakings | - | - |
Other debtors | 50 | 50 |
Corporation tax recoverable | 21,728 | 21,728 |
VAT | 19,386 | - |
Prepayments | 2,463,556 | 1,022,105 |
3,042,711 | 2,900,212 |
EDI HOLDINGS LIMITED (REGISTERED NUMBER: 10241871) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 17) | 250,000 | 303,651 |
Hire purchase contracts (see note 18) | 219,312 | 111,685 |
Trade creditors | 1,300,937 | 2,549,573 |
Corporation tax | 838,181 | 50,883 |
Social security and other taxes | 108,643 | 135,725 |
VAT | - | 1,035,797 | - | - |
Other creditors | 263,711 | 37,172 |
Accruals and deferred income | 693,454 | 814,007 |
3,674,238 | 5,038,493 |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2023 | 2022 |
£ | £ |
Bank loans (see note 17) | - | 1,382,033 |
Hire purchase contracts (see note 18) | 356,419 | 324,298 |
Directors' loan accounts | 698,674 | 1,397,347 |
1,055,093 | 3,103,678 |
Directors' loan accounts are unsecured. Interest is paid at a rate of 10%. |
17. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | 250,000 | 303,651 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | - | 1,382,033 |
EDI HOLDINGS LIMITED (REGISTERED NUMBER: 10241871) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
18. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year | 219,312 | 111,685 |
Between one and five years | 356,419 | 324,298 |
575,731 | 435,983 |
Group |
Non-cancellable | operating leases |
2023 | 2022 |
£ | £ |
Within one year | 879,754 | 632,500 |
Between one and five years | 3,617,888 | 3,637,500 |
In more than five years | 1,522,756 | 2,242,500 |
6,020,398 | 6,512,500 |
19. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2023 | 2022 |
£ | £ |
Bank loans | 250,000 | 1,685,684 |
Hire purchase contracts | 575,731 | 435,983 |
825,731 | 2,121,667 |
Bank loans and overdrafts are secured by way of a fixed and floating charge over the assets of the company. |
Obligations under hire purchase contracts are secured on the assets to which they relate. |
20. | PROVISIONS FOR LIABILITIES |
Group |
2023 | 2022 |
£ | £ |
Deferred tax | 1,009,652 | 802,827 |
EDI HOLDINGS LIMITED (REGISTERED NUMBER: 10241871) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
20. | PROVISIONS FOR LIABILITIES - continued |
Group |
Deferred |
tax |
£ |
Balance at 1 January 2023 | 802,827 |
Charge to Income Statement during year | 206,825 |
Balance at 31 December 2023 | 1,009,652 |
Company |
The Company had no provisions at the balance sheet date. |
21. | CALLED UP SHARE CAPITAL |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
1,455 | A Ordinary | £0.10 | 146 | 146 |
507 | B Ordinary | £0.10 | 51 | 51 |
113 | C Ordinary | £0.10 | 11 | 11 |
204 | D Ordinary | £0.10 | 20 | 20 |
254 | E Ordinary | £0.10 | 25 | 25 |
253 | 253 |
22. | RESERVES |
Group |
Retained | Share | Other |
earnings | premium | reserves | Totals |
£ | £ | £ | £ |
At 1 January 2023 | 3,147,691 | 999,960 | 336,977 | 4,484,628 |
Profit for the year | 3,240,832 | 3,240,832 |
Dividends | (100,000 | ) | (100,000 | ) |
At 31 December 2023 | 6,288,523 | 999,960 | 336,977 | 7,625,460 |
Company |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 January 2023 | ( |
) | 999,860 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 31 December 2023 | ( |
) | 999,860 |
EDI HOLDINGS LIMITED (REGISTERED NUMBER: 10241871) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
23. | PENSION COMMITMENTS |
The Group's subsidiary company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. £30,857 (2022 - £38,278) contributions were outstanding at the balance sheet date. |
24. | ULTIMATE CONTROLLING PARTY |
The parent company is EDI Holdings Limited, a company registered in England and Wales. The registered office is Wentwood House, Langstone Business Park, Newport, NP18 2HJ. |
The ultimate controlling party is the director, Mr E Davies. |