REGISTERED NUMBER: 11705550 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
SANTOK (UK) LTD |
REGISTERED NUMBER: 11705550 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
SANTOK (UK) LTD |
SANTOK (UK) LTD (REGISTERED NUMBER: 11705550) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Consolidated Income Statement | 8 |
Consolidated Other Comprehensive Income | 9 |
Consolidated Statement of Financial Position | 10 |
Company Statement of Financial Position | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Consolidated Statement of Cash Flows | 14 |
Notes to the Consolidated Statement of Cash Flows | 15 |
Notes to the Consolidated Financial Statements | 16 |
SANTOK (UK) LTD |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: | Prakash Jariwala ACA FCCA |
AUDITORS: |
Chartered Accountants |
& Statutory Auditors |
505 Pinner Road |
Harrow |
Middlesex |
HA2 6EH |
SANTOK (UK) LTD (REGISTERED NUMBER: 11705550) |
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. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The directors continually reviews risks and uncertainties throughout the period and believe that they have the management and system in place to deal with changing situations. |
The principal risks and uncertainties facing the group relate to the recovery period from the COVID-19 Pandemic which has brought an unprecedented challenges to many businesses. Sales from health and PPE products is now seeing a decline in revenue growth due to far less demand than the previous years. However, our management have worked to maintain revenue levels by focussing on telephony and technology products with high demand and expanding into new product lines. |
DEVELOPMENT AND PERFORMANCE |
The company incurred net profit before tax of £20,550 (2022: £17,109) on revenue of £3,725,000 (2022:£4,196,678). Despite there being lower revenue, reduced direct costs have contributed to a higher gross profit margin in the current year, increasing from 97% to 98%. At the year end the company had net current assets of £215,926 (2022:£159,829) which has impacted on the company's working capital requirements. A decrease in loans from group companies has resulted in a stronger net assets position which stood at £206,124 (2022:£182,602). |
The group incurred net profit before tax of £866.576 (2022: £1,443,804) on revenue of £21,822,245 (2022:£26,117,869). Despite there being higher revenue, higher direct costs have contributed to a lower gross profit margin in the current year, decreasing from 27% to 23%. At the year end the group had net current assets of £4,569,738 (2022:£3,602,352) which has impacted on the company's working capital requirements. A decrease in the cash position and an increase in loans to connected companies has resulted in a stronger net assets position which stood at £4,924,086 (2022:£4,134,387). |
KEY PERFORMANCE INDICATORS ('KPIS') |
In the opinion of the director, key performance indicators of the Company include profit before interest and tax and net profit margin. Both performance indicators improved during the year mainly due to significant increase in turnover and decrease in direct costs. The key performance indicators are closely monitored by the director on regular basis |
ON BEHALF OF THE BOARD: |
SANTOK (UK) LTD (REGISTERED NUMBER: 11705550) |
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. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 December 2023. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
DONATIONS |
During the year group made donations of £4,497 (2022: £75,300) to Santok Charitable Foundation (Charity Reg. 1142691) , a charity that the directors are the trustees. |
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). 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. |
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. |
SANTOK (UK) LTD (REGISTERED NUMBER: 11705550) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
AUDITORS |
The auditors, STGCA LLP t/a Sterling, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
SANTOK (UK) LTD |
Opinion |
We have audited the financial statements of Santok (UK) Ltd (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 Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, 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 |
SANTOK (UK) LTD |
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 page three, 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: |
We assessed the susceptibility of the entity's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included: |
Identifying and assessing the measures management has in place to prevent and detect fraud, Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process. |
Challenging assumptions and judgements made by management in its significant estimates, and |
Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations. |
Due to the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulations. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. Therefore, if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach. The risk is also greater regarding irregularities occurring to fraud other than error, as fraud involves intentional concealment, forgery, collusion, omission, or misrepresentation. |
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 |
SANTOK (UK) LTD |
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 |
Chartered Accountants |
& Statutory Auditors |
505 Pinner Road |
Harrow |
Middlesex |
HA2 6EH |
SANTOK (UK) LTD (REGISTERED NUMBER: 11705550) |
CONSOLIDATED INCOME STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
31/12/23 | 31/12/22 |
Notes | £ | £ |
TURNOVER | 21,822,245 | 26,117,869 |
Cost of sales | 16,496,271 | 19,164,084 |
GROSS PROFIT | 5,325,974 | 6,953,785 |
Administrative expenses | 4,476,659 | 5,552,662 |
849,315 | 1,401,123 |
Other operating income | 19,943 | 39,351 |
OPERATING PROFIT | 4 | 869,258 | 1,440,474 |
Interest receivable and similar income | 200 | 6,647 |
869,458 | 1,447,121 |
Interest payable and similar expenses | 6 | 2,882 | 3,317 |
PROFIT BEFORE TAXATION | 866,576 | 1,443,804 |
Tax on profit | 7 | 76,877 | 272,297 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 789,699 | 1,171,507 |
SANTOK (UK) LTD (REGISTERED NUMBER: 11705550) |
CONSOLIDATED OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
31/12/23 | 31/12/22 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 789,699 | 1,171,507 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
789,699 |
1,171,507 |
Total comprehensive income attributable to: |
Owners of the parent | 789,699 | 1,171,507 |
SANTOK (UK) LTD (REGISTERED NUMBER: 11705550) |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
31 DECEMBER 2023 |
31/12/23 | 31/12/22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 | 410,062 | 583,719 |
Tangible assets | 10 | 39,253 | 63,122 |
Investments | 11 | - | - |
449,315 | 646,841 |
CURRENT ASSETS |
Stocks | 12 | 307,529 | 848,327 |
Debtors | 13 | 5,967,882 | 4,900,874 |
Cash at bank and in hand | 322,011 | 797,760 |
6,597,422 | 6,546,961 |
CREDITORS |
Amounts falling due within one year | 14 | 2,027,684 | 2,944,609 |
NET CURRENT ASSETS | 4,569,738 | 3,602,352 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
5,019,053 |
4,249,193 |
CREDITORS |
Amounts falling due after more than one year |
15 |
(90,278 |
) |
(106,964 |
) |
PROVISIONS FOR LIABILITIES | 17 | (4,689 | ) | (7,842 | ) |
NET ASSETS | 4,924,086 | 4,134,387 |
CAPITAL AND RESERVES |
Called up share capital | 18 | 100 | 100 |
Retained earnings | 19 | 4,923,986 | 4,134,287 |
SHAREHOLDERS' FUNDS | 4,924,086 | 4,134,387 |
The financial statements were approved by the Board of Directors and authorised for issue on 30 September 2024 and were signed on its behalf by: |
V Pau - Director |
SANTOK (UK) LTD (REGISTERED NUMBER: 11705550) |
COMPANY STATEMENT OF FINANCIAL POSITION |
31 DECEMBER 2023 |
31/12/23 | 31/12/22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
Investments | 11 |
CURRENT ASSETS |
Debtors | 13 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
15 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 17 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 18 |
Retained earnings | 19 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 23,522 | 14,147 |
The financial statements were approved by the Board of Directors and authorised for issue on |
SANTOK (UK) LTD (REGISTERED NUMBER: 11705550) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2022 | 100 | 2,962,780 | 2,962,880 |
Changes in equity |
Total comprehensive income | - | 1,171,507 | 1,171,507 |
Balance at 31 December 2022 | 100 | 4,134,287 | 4,134,387 |
Changes in equity |
Total comprehensive income | - | 789,699 | 789,699 |
Balance at 31 December 2023 | 100 | 4,923,986 | 4,924,086 |
SANTOK (UK) LTD (REGISTERED NUMBER: 11705550) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2023 |
SANTOK (UK) LTD (REGISTERED NUMBER: 11705550) |
CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
31/12/23 | 31/12/22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | (198,649 | ) | (1,505,218 | ) |
Interest paid | (2,882 | ) | (3,317 | ) |
Tax paid | (156,500 | ) | 2 |
Net cash from operating activities | (358,031 | ) | (1,508,533 | ) |
Cash flows from investing activities |
Purchase of intangible fixed assets | (68,760 | ) | (437,504 | ) |
Purchase of tangible fixed assets | (11,147 | ) | (40,907 | ) |
Interest received | 200 | 6,647 |
Net cash from investing activities | (79,707 | ) | (471,764 | ) |
Cash flows from financing activities |
Amount withdrawn by directors | (38,011 | ) | 221,032 |
Net cash from financing activities | (38,011 | ) | 221,032 |
Decrease in cash and cash equivalents | (475,749 | ) | (1,759,265 | ) |
Cash and cash equivalents at beginning of year |
2 |
797,760 |
2,557,025 |
Cash and cash equivalents at end of year | 2 | 322,011 | 797,760 |
SANTOK (UK) LTD (REGISTERED NUMBER: 11705550) |
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31/12/23 | 31/12/22 |
£ | £ |
Profit before taxation | 866,576 | 1,443,804 |
Depreciation charges | 277,434 | 240,717 |
Finance costs | 2,882 | 3,317 |
Finance income | (200 | ) | (6,647 | ) |
1,146,692 | 1,681,191 |
Decrease/(increase) in stocks | 540,798 | (848,327 | ) |
Increase in trade and other debtors | (1,083,695 | ) | (2,582,309 | ) |
(Decrease)/increase in trade and other creditors | (802,444 | ) | 244,227 |
Cash generated from operations | (198,649 | ) | (1,505,218 | ) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 31 December 2023 |
31/12/23 | 1/1/23 |
£ | £ |
Cash and cash equivalents | 322,011 | 797,760 |
Year ended 31 December 2022 |
31/12/22 | 1/1/22 |
£ | £ |
Cash and cash equivalents | 797,760 | 2,557,025 |
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 | 797,760 | (475,749 | ) | 322,011 |
797,760 | (475,749 | ) | 322,011 |
Debt |
Debts falling due within 1 year | (16,667 | ) | - | (16,667 | ) |
Debts falling due after 1 year | (106,964 | ) | 16,686 | (90,278 | ) |
(123,631 | ) | 16,686 | (106,945 | ) |
Total | 674,129 | (459,063 | ) | 215,066 |
SANTOK (UK) LTD (REGISTERED NUMBER: 11705550) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | STATUTORY INFORMATION |
Santok (UK) Ltd is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The group financial statements consolidate the financial statements of Santok (UK) Ltd and all its subsidiary undertakings drawn up to the year ending 31December 2019. Subsidiaries are consolidated from the date of their acquisition, being the date on which the Group obtains control and continue to be consolidated until the date that such control ceases. Control comprises the power to govern the financial and operating policies of the investee so as to obtain benefit from its activities. |
Significant judgements and estimates |
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amount reported for assets and liabilities as at the balance sheet date and the amount reported for revenue and expenses during the year. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
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. |
Turnover |
Turnover represents net invoiced sales of goods, excluding value added tax and is recognised when the company has a right to consideration. |
Revenue recognition |
Revenue from the sale of goods is recognised once the goods has delivered and the risks and rewards have passed to the customer. |
Goodwill |
Business combinations are accounted for by applying the purchase method. |
The cost of a business combination is the fair value of the consideration given, liabilities incurred or assumed and of equity instruments issued plus the costs directly attributable to the business combination. |
Goodwill recognised represents the excess of the fair value and directly attributable costs of the purchase consideration over the fair values to the Group's interest in the identifiable net assets. |
Under FRS 102 the company is unable to make a reliable estimate of the useful life of goodwill. The useful economic life of five years has been applied to all goodwill held at the balance sheet date. |
Goodwill is assessed for impairment when there are indicators of impairment and any impairment is charged to the income statement. Reversals of impairment are recognised when the reasons for the impairment no longer apply. |
SANTOK (UK) LTD (REGISTERED NUMBER: 11705550) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
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 |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Stocks |
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is based on the first-in first-out principle and includes expenditure incurred in acquiring the stocks, production or conversion costs and other costs in bringing them to their existing location and condition. In the case of manufactured stocks and work in progress, cost includes an appropriate share of overheads based on normal operating capacity. |
Trade and other debtors / creditors |
Trade and other debtors are recognised initially at transaction price less attributable transaction costs. Trade and other creditors are recognised initially at transaction price plus attributable transaction costs. Subsequent to initial recognition they are measured at amortised cost using the effective interest method, less any impairment losses in the case of trade debtors. If the arrangement constitutes a financing transaction, for example if payment is deferred beyond normal business terms, then it is measured at the present value of future payments discounted at a market rate of instrument for a similar debt instrument. |
Cash and cash equivalents |
Cash and cash equivalents in the balance sheet comprise cash at banks and in hand |
and short term deposits with an original maturity date of three months or less. For the purpose of the consolidated cash flow statement, cash and cash equivalents consist of cash and cash equivalents as defined above, net of outstanding bank overdrafts. |
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 is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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. |
SANTOK (UK) LTD (REGISTERED NUMBER: 11705550) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Research and development |
Research and development expenditure is written off in the year it was incurred. Development expenditure is also written off, except where the directors are confident of the technical, commercial and financial viability of individual research projects. ln these cases the development expenditure is deferred - to be amortised over the period during which the company is expected to be benefit from the research. |
Foreign currencies |
Transactions in foreign currencies are translated to the Company's functional currency at the foreign exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are retranslated to the functional currency at the foreign exchange rate ruling at that date. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
A defined contribution plan is a post-employment benefit plan under which the company pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution pension plans are recognised as an expense in the profit and loss account in the periods during which services are rendered by employe |
Interest payable |
Interest payable is recognised in profit or loss as they accrue, using the effective interest method. |
3. | EMPLOYEES AND DIRECTORS |
31/12/23 | 31/12/22 |
£ | £ |
Wages and salaries | 1,928,790 | 2,200,651 |
Social security costs | 204,540 | 233,810 |
Other pension costs | 18,356 | 21,829 |
2,151,686 | 2,456,290 |
The average number of employees during the year was as follows: |
31/12/23 | 31/12/22 |
Santok (UK) Ltd |
Other subsidiary companies did not have any employees. |
31/12/23 | 31/12/22 |
£ | £ |
Directors' remuneration | 240,000 | 240,000 |
SANTOK (UK) LTD (REGISTERED NUMBER: 11705550) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
3. | EMPLOYEES AND DIRECTORS - continued |
Information regarding the highest paid director is as follows: |
31/12/23 | 31/12/22 |
£ | £ |
Emoluments etc | 120,000 | 120,000 |
4. | OPERATING PROFIT |
The operating profit is stated after charging: |
31/12/23 | 31/12/22 |
£ | £ |
Other operating leases | - | 4,591 |
Depreciation - owned assets | 35,016 | 15,488 |
Goodwill amortisation | 99,661 | 99,662 |
Patents and licences amortisation | 142,756 | 125,566 |
Foreign exchange differences | 4,654 | - |
Auditors' remuneration | 50,500 | 50,500 |
5. | EXCEPTIONAL ITEMS |
31/12/23 | 31/12/22 |
£ | £ |
Exceptional items | - | (374,108 | ) |
The exceptional item relates to one off costs of subsidiary company You Tec Ltd which has been incurred during the year after the purchase of Magnum Brand assets. |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31/12/23 | 31/12/22 |
£ | £ |
Bank loan interest | 2,882 | 3,317 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31/12/23 | 31/12/22 |
£ | £ |
Current tax: |
UK corporation tax | 80,032 | 269,974 |
Tax adjustment - prior years | (2 | ) | - |
Total current tax | 80,030 | 269,974 |
Deferred tax | (3,153 | ) | 2,323 |
Tax on profit | 76,877 | 272,297 |
SANTOK (UK) LTD (REGISTERED NUMBER: 11705550) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
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. | INTANGIBLE FIXED ASSETS |
Group |
Patents and |
Goodwill | licences | Totals |
£ | £ | £ |
COST |
At 1 January 2023 | 498,308 | 509,764 | 1,008,072 |
Additions | - | 68,760 | 68,760 |
At 31 December 2023 | 498,308 | 578,524 | 1,076,832 |
AMORTISATION |
At 1 January 2023 | 186,847 | 237,506 | 424,353 |
Amortisation for year | 99,661 | 142,756 | 242,417 |
At 31 December 2023 | 286,508 | 380,262 | 666,770 |
NET BOOK VALUE |
At 31 December 2023 | 211,800 | 198,262 | 410,062 |
At 31 December 2022 | 311,461 | 272,258 | 583,719 |
Company |
Goodwill |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 |
AMORTISATION |
At 1 January 2023 |
Amortisation for year |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
SANTOK (UK) LTD (REGISTERED NUMBER: 11705550) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
10. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Plant and | and | Motor | Computer |
machinery | fittings | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 January 2023 | 60,505 | 12,225 | 34,320 | 27,457 | 134,507 |
Additions | - | - | - | 11,147 | 11,147 |
At 31 December 2023 | 60,505 | 12,225 | 34,320 | 38,604 | 145,654 |
DEPRECIATION |
At 1 January 2023 | 24,632 | 2,488 | 20,896 | 23,369 | 71,385 |
Charge for year | 19,867 | 2,340 | 10,068 | 2,741 | 35,016 |
At 31 December 2023 | 44,499 | 4,828 | 30,964 | 26,110 | 106,401 |
NET BOOK VALUE |
At 31 December 2023 | 16,006 | 7,397 | 3,356 | 12,494 | 39,253 |
At 31 December 2022 | 35,873 | 9,737 | 13,424 | 4,088 | 63,122 |
Company |
Plant and | Motor | Computer |
machinery | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2023 |
Additions |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
SANTOK (UK) LTD (REGISTERED NUMBER: 11705550) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
11. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
The group or the company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
Subsidiaries |
Registered office: United Kingdom |
Nature of business: |
% |
Class of shares: | holding |
31/12/23 | 31/12/22 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Registered office: United Kingdom |
Nature of business: |
% |
Class of shares: | holding |
31/12/23 | 31/12/22 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Registered office: United Kingdom |
Nature of business: |
% |
Class of shares: | holding |
31/12/23 | 31/12/22 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
SANTOK (UK) LTD (REGISTERED NUMBER: 11705550) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
11. | FIXED ASSET INVESTMENTS - continued |
12. | STOCKS |
Group |
31/12/23 | 31/12/22 |
£ | £ |
Stocks | 242,105 | 813,893 |
Finished goods | 65,424 | 34,434 |
307,529 | 848,327 |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31/12/23 | 31/12/22 | 31/12/23 | 31/12/22 |
£ | £ | £ | £ |
Trade debtors | 1,212,777 | 2,885,448 |
Amounts owed by connected companies | 3,248,401 | 1,520,805 |
Amounts owed by group undertakings | - | - | 2,343,368 | 1,157,764 |
Other debtors | 231,520 | 206,068 |
VAT | - | 64,559 |
Prepayments | 1,275,184 | 223,994 |
5,967,882 | 4,900,874 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31/12/23 | 31/12/22 | 31/12/23 | 31/12/22 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 16) | 16,667 | 16,667 |
Trade creditors | 375,531 | 1,111,395 |
Amounts owed to connected companies | - | - |
Amounts owed to group undertakings | - | - | 2,866,090 | 1,816,301 |
Tax | 193,506 | 269,976 |
Social security and other taxes | 62,787 | 75,075 |
VAT | 36,952 | - | - | - |
Other creditors | 280,499 | 5,281 |
Directors' current accounts | 219,816 | 257,827 | 215,533 | 84,297 |
Accrued expenses | 841,926 | 1,208,388 |
2,027,684 | 2,944,609 |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
31/12/23 | 31/12/22 | 31/12/23 | 31/12/22 |
£ | £ | £ | £ |
Bank loans (see note 16) | 90,278 | 106,964 |
SANTOK (UK) LTD (REGISTERED NUMBER: 11705550) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
16. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
31/12/23 | 31/12/22 | 31/12/23 | 31/12/22 |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | 16,667 | 16,667 |
Amounts falling due between one and two | years: |
Bank loans - 1-2 years | 16,667 | 16,667 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | 50,000 | 50,001 |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans more 5 yr by instal | 23,611 | 40,296 | 7,870 | 13,432 |
The company has a government-backed bounced-back loan, which is repayable over ten years with interest at 2.5% per annum. |
17. | PROVISIONS FOR LIABILITIES |
Group | Company |
31/12/23 | 31/12/22 | 31/12/23 | 31/12/22 |
£ | £ | £ | £ |
Deferred tax | 4,689 | 7,842 | 2,977 | 5,949 |
Group |
Deferred tax |
£ |
Balance at 1 January 2023 | 7,842 |
Credit to Income Statement during year | (3,153 | ) |
Balance at 31 December 2023 | 4,689 |
Company |
Deferred tax |
£ |
Balance at 1 January 2023 |
Accelerated capital allowances | (2,972 | ) |
reversed |
Balance at 31 December 2023 |
SANTOK (UK) LTD (REGISTERED NUMBER: 11705550) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
18. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31/12/23 | 31/12/22 |
value: | £ | £ |
Ordinary | £1 | 100 | 100 |
19. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1 January 2023 | 4,134,287 |
Profit for the year | 789,699 |
At 31 December 2023 | 4,923,986 |
Company |
Retained |
earnings |
£ |
At 1 January 2023 |
Profit for the year |
At 31 December 2023 |
20. | RELATED PARTY DISCLOSURES |
Included within debtors amounts falling due within one year is a balance of £325,000 (2022: £325,000) due from Braintree Property Ltd, company with directors in common. The amount is receivable on demand and interest free. |
Included within debtors amounts falling due within one year is a balance of £2,568,762 (2022: £648,762) due from Santok Assets Management Ltd, company with directors in common. The amount is receivable on demand and interest free. |
Included within creditors amounts falling due within one year is a balance of £9,512 (2022: £3,805) due to Santok Investments Ltd, company with directors in common. The amount is payable on demand and interest free. |
Included within debtors amounts falling due within one year is a balance of £65,000 (2022: £65,000) due from Santok Homes (1) Ltd, company with directors in common. The amount is receivable on demand and interest free. |
Included within debtors amounts falling due within one year is a balance of £335,848 (2022: £485,848) due from Pau Capital Ltd, company with directors in common. The amount is receivable on demand and interest free. |
21. | ULTIMATE CONTROLLING PARTY |
The directors of Santok (UK) Ltd are the ultimate controlling party. |