Company registration number 03237166 (England and Wales)
EBC GROUP (UK) LTD
GROUP ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
EBC GROUP (UK) LTD
COMPANY INFORMATION
Director
R B Lane
Secretary
R B Lane
Company number
03237166
Registered office
221 Hagley Road
Hayley Green
Halesowen
West Midlands
B63 1ED
Auditor
Sumer Auditco Limited
The Beehive
Beehive Ring Road
London Gatwick Airport
Gatwick
United Kingdom
RH6 0PA
EBC GROUP (UK) LTD
CONTENTS
Page
Strategic report
1 - 2
Director's report
3 - 4
Independent auditor's report
5 - 7
Income statement
8
Group statement of comprehensive income
9
Group statement of financial position
10
Company statement of financial position
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 31
EBC GROUP (UK) LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The director presents the strategic report of the company and group for the year ended 31 December 2023.

Review of the business

Gross profit, the group's primary measure of income, was up versus the prior year as the economy benefitted from the end of the pandemic as demand for product and services increased. The Group gross profit margin marginally improved during the year as supply chain shortages improved but were still impacted by utility increases, staffing issues and inflationary pressures

Key performance indicators

The Group strategy for both the parent company and the main trading subsidiary remains unchanged and is focused on winning new customers and then nurturing those relationships over many years to engender trust and loyalty. Our special culture coupled with a determination to provide the very best customer experience in our industries has been especially important following the pandemic. Along with the breadth of our offering these factors have enabled us to deliver the advice and assurance customers have come to place such reliance upon.

Infrastructure

Cyber security remains at the forefront of discussions at the Board and both the Risk and Audit Committees. Cyber security risks are ever increasing due to the greater activity of a range of cyber threat actors, including nation states, worldwide. This greater activity has resulted in more sophisticated and more frequent cyber-attacks against IT infrastructure.

Fraudulent use of services is a constant threat and although responsibility falls on the end user this risk is mitigated by pro-active monitoring of customer accounts. Last year we invested in software that can monitor real time attacks by comparing historical usage as well as real-time lookup of blacklists against know suspicious global calling locations. This software has proven to be a success for those that have implemented the solution and reduced the risk of a cyber threat considerably.

 

Other performance indicators

Financial

We continue to concentrate on the fundamentals important to our business, including the effective management of working capital. It is and has been throughout the period under review, the company’s policy that no trading in financial instruments shall be undertaken. The main risks arising from the company’s financial instruments are interest rate risk, credit risk and liquidity risk. The Directors review and agree policies for managing each of these risks and they are summarised below.

    

    Interest

The Group’s exposure to market risk for changes in interest rates relates primarily to the Group’s hire     purchase, finance lease liabilities and factoring account which are linked to the bank base rate.

 

    Credit risk

The Group only trade with recognised, credit worthy third parties. It is the group policy that all customers     who wish to trade on credit terms are subject to credit vetting procedures. In addition, receivable balances     are continually monitored on an ongoing basis with the result that the Group’s exposure to bad debts is     reduced.

 

    Liquidity risk

     The Group’s objective is to maintain a balance between continuity of funding and flexibility through the use     of loans from related parties.

 

People

We continue to concentrate on the fundamentals important to our business, including the effective management of working capital. This has become more challenging with inflationary pressures within the industry and salaries along with the high interest rates and the impact of the Ukrainian War on energy prices.

 

Political and economic uncertainty

Economic and political volatility and uncertainty is particularly challenging because it may take some time for the effects and changes in demand patterns resulting from these and other factors to manifest themselves in our business and results of operations. This uncertainty has been accelerated due to the Ukrainian war with Russia.

 

EBC GROUP (UK) LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Other information and explanations

Viability statement

Against a backdrop of a global response to COVID-19 EBC and the Ukraine War, the Group have enjoyed a large degree of resilience to challenging conditions. The current challenges associated with inflationary pressures, staff shortage and increased interest rates may mean businesses may not invest in capital and IT solutions and there may also be an increased risk of bad debt during this period of uncertainty.

 

The degree of severity applied in the viability scenarios was based on management's experience and knowledge of the industry to determine plausible changes in assumptions. The key risks on viability are:

 

  1. A substantial and sustained shortfall in revenue compared to the budget, resulting from a sustained period of significant supply shortages and staff shortages.

  2. A fall in achievable gross margins resulting from margin pressure associated with supply factors and increased competition for existing and new business, this is predicted to become more challenging as the large players like Microsoft Azure, Amazon Web Services and Google drive margins down.

  3. A significantly increased levels of bad debt losses in year of the modelled period, due to the challenging market conditions as a result of high interest rates, staff shortages and inflationary pressures.

  4. An ongoing increase in the working capital cycle, specifically driven by a delay in customer payments versus historical levels.

 

On behalf of the board

R B Lane
Director
1 October 2024
EBC GROUP (UK) LTD
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

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

Principal activities

The principal activity of the company and group in the period under review was that of I.T support services and manufacturing of industrial fasteners.

Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. The director does not recommend payment of a further dividend.

Director

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

R B Lane
Auditor

In accordance with the company's articles, a resolution proposing that Sumer Auditco Limited be reappointed as auditor of the group will be put at a General Meeting.

Statement of director's responsibilities

The director is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

 

 

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

Statement of disclosure to auditor

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

EBC GROUP (UK) LTD
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Going Concern

After making enquiries and preparing integrated profit and loss and cash flow forecasts for one year from the date the financial statements are signed the Director has formed a judgement that, as at the date of approving the financial statements, there is a reasonable expectation that the Group has adequate resources to continue in existence for the foreseeable future. For further details, please see the accounting policies.

On behalf of the board
R B Lane
Director
1 October 2024
EBC GROUP (UK) LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF EBC GROUP (UK) LTD
- 5 -
Opinion

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

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

 

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

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

EBC GROUP (UK) LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EBC GROUP (UK) LTD
- 6 -
Matters on which we are required to report by exception

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

 

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

Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the director is responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the parent company or to cease operations, or has no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

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

Based on our understanding of the company and the industry in which it operates, we identified principal risks of non-compliance with laws and regulations related to breaches of the Sale of Goods Act 1979 and employment laws, and we considered the extent to which non-compliance might have a material effect on the financial statements. Additionally, we considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006.

 

We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined the principal risks related to posting journal entries to manipulate financial performance, of management bias through judgements and assumptions in significant accounting estimates and significant one-off or unusual transactions. Audit procedures performed by the engagement team included:

 

- Discussions with management and those charged with governance including consideration of known or suspected instances of non-compliance with laws and regulations and fraud;- Evaluation and testing of the operating effectiveness of management's entity level controls designed to prevent and detect irregularities;

- Performing testing on month-end adjustments;

- Incorporating unpredictability into the nature, timing and/or extent of our testing;

- Challenging assumptions and judgements made by management in their significant accounting estimates;

- Identifying and testing journal entries, in particular any journal entries posted by infrequent users or senior management or posted with descriptions indicating a higher level of risk.

 

Whilst our audit did not identify any significant matters relating to the detection of irregularities including fraud, and despite the audit being planned and conducted in accordance with ISAs (UK), there remains an unavoidable risk that material misstatements in the financial statements may not be detected owing to inherent limitations of the audit, and that by their very nature, any such instances of fraud or irregularity would likely involve collusion, forgery, intentional misrepresentations, or the override of internal controls.

EBC GROUP (UK) LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EBC GROUP (UK) LTD
- 7 -

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

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

Mr Alan Edward Jones FCCA (Senior Statutory Auditor)
For and on behalf of Sumer Auditco Limited
1 October 2024
Chartered Accountants
Statutory Auditor
The Beehive
Beehive Ring Road
London Gatwick Airport
Gatwick
United Kingdom
RH6 0PA
EBC GROUP (UK) LTD
GROUP INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
2
16,551,203
14,995,858
Cost of sales
(9,008,707)
(8,076,811)
Gross profit
7,542,496
6,919,047
Administrative expenses
(8,146,088)
(6,905,975)
Other operating income
24,000
24,000
Operating (loss)/profit
4
(579,592)
37,072
Other interest receivable and similar income
8
14,564
8,428
Interest payable and similar expenses
9
(16,046)
(38,002)
(Loss)/profit before taxation
(581,074)
7,498
Tax on (loss)/profit
10
(3,467)
(3,729)
(Loss)/profit for the financial year
24
(584,541)
3,769
(Loss)/profit for the financial year is attributable to:
- Owner of the parent company
(663,307)
87,830
- Non-controlling interests
78,766
(84,061)
(584,541)
3,769
EBC GROUP (UK) LTD
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
£
£
(Loss)/profit for the year
(584,541)
3,769
Other comprehensive income
Tax relating to other comprehensive income
19,963
-
0
Total comprehensive income for the year
(564,578)
3,769
Total comprehensive income for the year is attributable to:
- Owners of the parent company
(646,594)
104,020
- Non-controlling interests
82,016
(100,251)
(564,578)
3,769
EBC GROUP (UK) LTD
GROUP STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
2,943,878
2,936,302
Current assets
Stocks
15
1,088,851
1,122,767
Debtors
16
4,897,550
4,297,344
Cash at bank and in hand
326,702
1,156,547
6,313,103
6,576,658
Creditors: amounts falling due within one year
17
(4,676,507)
(4,369,548)
Net current assets
1,636,596
2,207,110
Total assets less current liabilities
4,580,474
5,143,412
Creditors: amounts falling due after more than one year
18
(25,509)
(3,244)
Provisions for liabilities
Deferred tax liability
21
260,364
280,988
(260,364)
(280,988)
Net assets
4,294,601
4,859,180
Capital and reserves
Called up share capital
22
100
100
Revaluation reserve
23
175,965
239,103
Profit and loss reserves
24
4,091,987
4,850,162
Equity attributable to owner of the parent company
4,268,052
5,089,365
Non-controlling interests
26,549
(230,185)
4,294,601
4,859,180

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 1 October 2024 and are signed on its behalf by:
01 October 2024
R B Lane
Director
Company registration number 03237166 (England and Wales)
EBC GROUP (UK) LTD
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
1,954,085
1,939,985
Investments
13
451,681
1,776
2,405,766
1,941,761
Current assets
Stocks
15
282,117
192,000
Debtors
16
4,327,688
4,828,483
Cash at bank and in hand
4,864
1,156,222
4,614,669
6,176,705
Creditors: amounts falling due within one year
17
(2,448,658)
(2,241,411)
Net current assets
2,166,011
3,935,294
Total assets less current liabilities
4,571,777
5,877,055
Provisions for liabilities
Deferred tax liability
21
91,171
95,641
(91,171)
(95,641)
Net assets
4,480,606
5,781,414
Capital and reserves
Called up share capital
22
100
100
Profit and loss reserves
24
4,480,506
5,781,314
Total equity
4,480,606
5,781,414

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £1,300,808 (2022 - £404,771 profit).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 1 October 2024 and are signed on its behalf by:
01 October 2024
R B Lane
Director
Company registration number 03237166 (England and Wales)
EBC GROUP (UK) LTD
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Revaluation reserve
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
£
£
£
£
£
£
Balance at 1 January 2022
100
287,673
4,697,572
4,985,345
(129,934)
4,855,411
Year ended 31 December 2022:
Profit for the year
-
-
87,830
87,830
(84,061)
3,769
Other comprehensive income:
Amounts attributable to non-controlling interests
-
16,190
-
16,190
(16,190)
-
Total comprehensive income
-
16,190
87,830
104,020
(100,251)
3,769
Transfers
-
-
64,760
64,760
-
64,760
Other movements
-
(64,760)
-
(64,760)
-
(64,760)
Balance at 31 December 2022
100
239,103
4,850,162
5,089,365
(230,185)
4,859,180
Year ended 31 December 2023:
Loss for the year
-
-
(663,307)
(663,307)
78,766
(584,541)
Other comprehensive income:
Tax relating to other comprehensive income
-
19,963
-
0
19,963
-
19,963
Revaluation reserve movement attributable to non-controlling interests
-
(3,250)
-
(3,250)
3,250
-
Total comprehensive income
-
16,713
(663,307)
(646,594)
82,016
(564,578)
Transfers
-
-
79,850
79,850
-
79,850
Change in non controlling shareholding
-
-
(174,718)
(174,718)
174,718
-
Other movements
-
(79,851)
-
(79,851)
-
(79,851)
Balance at 31 December 2023
100
175,965
4,091,987
4,268,052
26,549
4,294,601
EBC GROUP (UK) LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2022
100
5,376,543
5,376,643
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
404,771
404,771
Balance at 31 December 2022
100
5,781,314
5,781,414
Year ended 31 December 2023:
Profit and total comprehensive income
-
(1,300,808)
(1,300,808)
Balance at 31 December 2023
100
4,480,506
4,480,606
EBC GROUP (UK) LTD
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
26
(135,060)
421,198
Interest received
14,564
8,428
Interest paid
(16,046)
(38,002)
Income taxes paid
-
0
(207,220)
Net cash (outflow)/inflow from operating activities
(136,542)
184,404
Investing activities
Purchase of tangible fixed assets
(184,458)
(265,913)
Proceeds from disposal of tangible fixed assets
22,745
4,000
Repayment of loans
(59,684)
57,419
Net cash used in investing activities
(221,397)
(204,494)
Financing activities
Repayment of bank loans
(134,259)
(621,086)
Payment of finance leases obligations
(56,637)
(123,509)
Net cash used in financing activities
(190,896)
(744,595)
Net decrease in cash and cash equivalents
(548,835)
(764,685)
Cash and cash equivalents at beginning of year
801,633
1,566,318
Cash and cash equivalents at end of year
252,798
801,633
Relating to:
Cash at bank and in hand
326,702
1,156,547
Bank overdrafts included in creditors payable within one year
(73,904)
(354,914)
EBC GROUP (UK) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
1
Accounting policies
Company information

EBC Group (UK) Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 221 Hagley Road, Hayley Green, Halesowen, West Midlands, B63 1ED.

 

The group consists of EBC Group (UK) Ltd and all of its subsidiaries.

1.1
Accounting convention

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

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

The financial statements have been prepared under the historical cost convention.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Business combinations

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

 

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

EBC GROUP (UK) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.3
Basis of consolidation

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

 

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

 

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

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.4
Going concern

After making enquiries and preparing integrated profit and loss and cash flow forecasts for one year from the date the financial statements are signed the Directors have formed a judgement that, as at the date of approving the financial statements, there is a reasonable expectation that the group has adequate resources to continue in existence for the foreseeable future.

 

In making this assessment the Board of Directors has undertaken a thorough review of the group's budgets and forecasts and has produced detailed and realistic cash flow projections. They have also considered potential impacts of current uncertainties in the wider economy.

 

These cash flow projections demonstrate that the group has sufficient working capital for the foreseeable future. In light of the assessment, the directors remain of the view that the forecast is achievable and that the headroom within the forecast should be sufficient to enable the group to operate and meet its liabilities as they fall due for payment throughout the year.

 

The parent company will continue to support it's subsidiaries for the period of 12 months from the approval date of the accounts with such support having been confirmed in writing and as such the going concern basis of preparing the accounts is deemed appropriate.

1.5
Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.7
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

EBC GROUP (UK) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold property
0%
Property improvements
20% straight line basis
Plant and machinery
33% reducing balance - 5/10/20/33% straight line basis
Fixtures and fittings
15% reducing balance - 10/15% straight line basis
Motor vehicles
25% reducing balance - 25% straight line basis

Depreciation has been provided at 0% on freehold property as in the opinion of the directors, their lives are long and residual values are such that depreciation is not material.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement.

1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.9
Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

1.10
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.11
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

EBC GROUP (UK) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

 

At the end of each reporting period, financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in profit and loss.

 

Financial assets are derecognised when (a) the contractual rights to cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

 

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

 

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

Offsetting

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

1.12
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

EBC GROUP (UK) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

1.13
Employee benefits

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

 

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

 

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

1.14
Retirement benefits

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

1.15
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

2
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
IT Support
10,307,679
10,163,355
Manufacturing
6,243,524
4,832,503
16,551,203
14,995,858
2023
2022
£
£
Other revenue
Interest income
14,564
8,428
EBC GROUP (UK) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
3
Exceptional item

The exceptional costs of £695,000 relates to related party balances that have been written off during the year.

4
Operating (loss)/profit
2023
2022
£
£
Operating (loss)/profit for the year is stated after charging/(crediting):
Exchange losses
4,289
1,406
Depreciation of owned tangible fixed assets
184,981
225,608
(Profit)/loss on disposal of tangible fixed assets
(845)
45,309
Operating lease charges
274,340
260,177
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
8,000
8,000
Audit of the financial statements of the company's subsidiaries
9,950
7,950
17,950
15,950
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
118
111
57
50

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
5,273,281
4,564,526
3,142,335
2,713,606
Social security costs
476,306
472,807
356,515
359,458
Pension costs
37,198
61,345
-
0
-
0
5,786,785
5,098,678
3,498,850
3,073,064
EBC GROUP (UK) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
7
Director's remuneration
2023
2022
£
£
Remuneration for qualifying services
300,000
425,239
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
300,000
425,239
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
12,292
7,805
Other interest income
2,272
623
Total income
14,564
8,428
Disclosed on the income statement as follows:
Other interest receivable and similar income
14,564
8,428
9
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
5,839
22,939
Interest on finance leases and hire purchase contracts
7,872
14,712
Other interest
2,335
351
Total finance costs
16,046
38,002
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
4,128
-
0
Adjustments in respect of prior periods
-
0
(980)
Total current tax
4,128
(980)
EBC GROUP (UK) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Taxation
2023
2022
£
£
(Continued)
- 22 -
Deferred tax
Origination and reversal of timing differences
(661)
4,709
Total tax charge
3,467
3,729

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

2023
2022
£
£
(Loss)/profit before taxation
(581,074)
7,498
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 22.13% (2022: 19.00%)
(128,592)
1,425
Tax effect of expenses that are not deductible in determining taxable profit
207,061
4,804
Unutilised tax losses carried forward
-
0
107
Adjustments in respect of prior years
-
0
(980)
Depreciation on assets not qualifying for tax allowances
(3,164)
(6,336)
Deferred tax movement
(661)
4,709
Tax losses utilised
(71,177)
-
0
Taxation charge
3,467
3,729

In addition to the amount charged to the income statement, the following amounts relating to tax have been recognised directly in other comprehensive income:

2023
2022
£
£
Deferred tax arising on:
Revaluation of property
(19,963)
-

The main rate of Corporation Tax in force at the Statement of Financial Position date was 25%, having been enacted from 1 April 2023. Prior to this date, the main rate of Corporation Tax was 19%. This means the effective rate of Corporation Tax for the year was 22.13%

EBC GROUP (UK) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
11
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 January 2023 and 31 December 2023
710,818
Amortisation and impairment
At 1 January 2023 and 31 December 2023
710,818
Carrying amount
At 31 December 2023
-
0
At 31 December 2022
-
0
Company
Goodwill
£
Cost
At 1 January 2023 and 31 December 2023
626,886
Amortisation and impairment
At 1 January 2023 and 31 December 2023
626,886
Carrying amount
At 31 December 2023
-
0
At 31 December 2022
-
0
EBC GROUP (UK) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
12
Tangible fixed assets
Group
Freehold property
Property improvements
Plant and machinery
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
Cost or valuation
At 1 January 2023
1,557,420
73,367
3,191,928
553,455
520,663
5,896,833
Additions
-
0
-
0
117,114
-
0
97,339
214,453
Disposals
-
0
-
0
(20,000)
-
0
(22,995)
(42,995)
At 31 December 2023
1,557,420
73,367
3,289,042
553,455
595,007
6,068,291
Depreciation and impairment
At 1 January 2023
-
0
73,367
2,183,353
521,505
182,303
2,960,528
Depreciation charged in the year
-
0
-
0
127,940
11,558
45,482
184,980
Eliminated in respect of disposals
-
0
-
0
(18,700)
-
0
(2,395)
(21,095)
At 31 December 2023
-
0
73,367
2,292,593
533,063
225,390
3,124,413
Carrying amount
At 31 December 2023
1,557,420
-
0
996,449
20,392
369,617
2,943,878
At 31 December 2022
1,557,420
-
0
1,008,573
31,949
338,360
2,936,302
Company
Freehold property
Plant and machinery
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 January 2023
1,557,420
101,738
56,645
410,066
2,125,869
Additions
-
0
39,792
-
0
39,000
78,792
At 31 December 2023
1,557,420
141,530
56,645
449,066
2,204,661
Depreciation and impairment
At 1 January 2023
-
0
72,898
32,517
80,469
185,884
Depreciation charged in the year
-
0
19,898
8,497
36,297
64,692
At 31 December 2023
-
0
92,796
41,014
116,766
250,576
Carrying amount
At 31 December 2023
1,557,420
48,734
15,631
332,300
1,954,085
At 31 December 2022
1,557,420
28,840
24,128
329,597
1,939,985

The plant and machinery and motor vehicles in the group's subsidiary company have been subject to an independent valuation in October 2022 by Tallon & Associates Limited, the value of plant and machinery was £975,500 and the value of motor vehicles was £28,500.

EBC GROUP (UK) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
12
Tangible fixed assets
(Continued)
- 25 -
Plant & Machinery
Motor Vehicles
2023
2022
2023
2022
£
£
£
£
Group
Cost
2,257,038
2,199,713
130,941
95,597
13
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
451,681
1,776
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023
1,776
Additions
450,005
Disposals
(100)
At 31 December 2023
451,681
Carrying amount
At 31 December 2023
451,681
At 31 December 2022
1,776
14
Subsidiaries

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

EBC GROUP (UK) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
14
Subsidiaries
(Continued)
- 26 -
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
E.B.C (Services) Limited
Cedar Court 221 Hagley Road, Hayley Green, Halesowen, West Midlands, United Kingdom,  B63 1ED
Ordinary
100.00
EBC Asset Finance Limited
Cedar Court 221 Hagley Road, Hayley Green, Halesowen, West Midlands, United Kingdom,  B63 1ED
Ordinary
100.00
EBC (MPS) Limited
Cedar Court 221 Hagley Road, Hayley Green, Halesowen, West Midlands, United Kingdom,  B63 1ED
Ordinary
100.00
STL Smartways Technology Limited
Cedar Court 221 Hagley Road, Hayley Green, Halesowen, West Midlands, United Kingdom,  B63 1ED
Ordinary
100.00
B.S.T Supplies & Co Ltd
Cedar Court 221 Hagley Road, Hayley Green, Halesowen, West Midlands, United Kingdom,  B63 1ED
Ordinary
90.00
Lawfinity Limited
221 Hagley Road, Hayley Green, Halesowen, West Midlands, United Kingdom, B63 1ED
Ordinary
75.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
B.S.T Supplies & Co Ltd
265,495
716,267
15
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
1,088,851
1,122,767
282,117
192,000
EBC GROUP (UK) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,640,770
2,050,946
1,079,604
845,964
Amounts owed by group undertakings
-
-
293,634
450,230
Other debtors
1,549,820
1,977,044
1,549,820
1,976,744
Prepayments and accrued income
706,960
269,354
654,630
246,133
4,897,550
4,297,344
3,577,688
3,519,071
Amounts falling due after more than one year:
Amounts owed by group undertakings
-
-
750,000
1,309,412
Total debtors
4,897,550
4,297,344
4,327,688
4,828,483

Amounts owed by group undertakings and related parties do not bear interest, are unsecured and are repayable on demand.

17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
19
73,904
489,173
73,904
-
0
Obligations under finance leases
20
7,329
56,236
-
0
-
0
Trade creditors
1,294,508
1,568,397
1,016,557
941,736
Amounts owed to group undertakings
-
0
-
0
106
206
Corporation tax payable
4,128
-
0
4,128
-
0
Other taxation and social security
417,047
471,997
285,053
401,957
Other creditors
761,957
764,359
11,591
8,077
Accruals and deferred income
2,117,634
1,019,386
1,057,319
889,435
4,676,507
4,369,548
2,448,658
2,241,411

Amounts owed to group undertakings and related parties do not bear interest, are unsecured and are repayable on demand.

18
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Obligations under finance leases
20
25,509
3,244
-
0
-
0
EBC GROUP (UK) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
19
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
-
0
134,259
-
0
-
0
Bank overdrafts
73,904
354,914
73,904
-
0
73,904
489,173
73,904
-
Payable within one year
73,904
489,173
73,904
-
0

A debenture was created on 15th June 2023 in favour of Barclays Bank Plc by way of a fixed and floating charge over all the assets in one of the subsidiary companies.

 

A debenture was created on 1st July 2010 in favour of Barclays Bank Plc by way of a fixed and floating charge over all the assets in the parent company.

 

A fixed charge was created on 25th July 2014 in favour or Barclays Bank Plc against the freehold property held by the parent company.

 

Hire purchase commitments are secured on the assets to which they relate.

20
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
7,329
56,236
-
0
-
0
In two to five years
25,509
3,244
-
0
-
0
32,838
59,480
-
-
21
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
260,364
280,988
EBC GROUP (UK) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
21
Deferred taxation
(Continued)
- 29 -
Liabilities
Liabilities
2023
2022
Company
£
£
Accelerated capital allowances
91,171
95,641
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
280,988
95,641
Credit to profit or loss
(661)
(4,470)
Credit to other comprehensive income
(19,963)
-
Liability at 31 December 2023
260,364
91,171

A deferred tax provision has arisen as a result of accelerated capital allowances and on revaluation of fixed assets.

 

22
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
100
100
100
100
23
Revaluation reserve
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning of the year
239,103
287,673
-
0
-
0
Deferred tax on revaluation of tangible assets
19,963
-
-
-
Other movements
(83,101)
(48,570)
-
-
At the end of the year
175,965
239,103
-
0
-
EBC GROUP (UK) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
24
Profit and loss reserves
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning of the year
4,850,162
4,713,770
5,781,314
5,376,543
Profit/(loss) for the year
(663,307)
3,765
(1,300,808)
404,771
Transfer from revaluation reserve
79,850
64,760
-
-
Minority interest movement
(174,718)
84,061
-
-
At the end of the year
4,091,987
4,850,162
4,480,506
5,781,314
25
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
198,851
418,976
198,851
209,488
Between two and five years
386,657
87,236
386,657
43,618
585,508
506,212
585,508
253,106
26
Cash (absorbed by)/generated from group operations
2023
2022
£
£
(Loss)/profit for the year after tax
(584,541)
3,769
Adjustments for:
Taxation charged
3,467
3,729
Finance costs
16,046
38,002
Investment income
(14,564)
(8,428)
(Gain)/loss on disposal of tangible fixed assets
(845)
45,309
Depreciation and impairment of tangible fixed assets
184,980
225,607
Movements in working capital:
Decrease in stocks
33,916
513,633
Increase in debtors
(540,522)
(176,341)
Increase/(decrease) in creditors
767,003
(224,082)
Cash (absorbed by)/generated from operations
(135,060)
421,198
EBC GROUP (UK) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
27
Analysis of changes in net funds - group
1 January 2023
Cash flows
New finance leases
31 December 2023
£
£
£
£
Cash at bank and in hand
1,156,547
(829,845)
-
326,702
Bank overdrafts
(354,914)
281,010
-
(73,904)
801,633
(548,835)
-
252,798
Borrowings excluding overdrafts
(134,259)
134,259
-
-
Obligations under finance leases
(59,480)
56,637
(29,995)
(32,838)
607,894
(357,939)
(29,995)
219,960
2023-12-312023-01-01falseCCH SoftwareCCH Accounts Production 2024.100R B LaneMrs N LaneR B Lanefalsetrue03237166bus:Consolidated2023-01-012023-12-31032371662023-01-012023-12-3103237166bus:CompanySecretaryDirector12023-01-012023-12-3103237166bus:CompanySecretary12023-01-012023-12-3103237166bus:Director12023-01-012023-12-3103237166bus:Director22023-01-012023-12-3103237166bus:RegisteredOffice2023-01-012023-12-31032371662023-12-3103237166bus:Consolidated2022-01-012022-12-31032371662022-01-012022-12-3103237166core:RevaluationReservebus:Consolidated2023-01-012023-12-3103237166core:RetainedEarningsAccumulatedLossesbus:Consolidated2023-01-012023-12-3103237166bus:Consolidated2023-12-3103237166bus:Consolidated2022-12-31032371662022-12-3103237166core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2023-12-3103237166core:LeaseholdImprovementsbus:Consolidated2023-12-3103237166core:PlantMachinerybus:Consolidated2023-12-3103237166core:FurnitureFittingsbus:Consolidated2023-12-3103237166core:MotorVehiclesbus:Consolidated2023-12-3103237166core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2022-12-3103237166core:LeaseholdImprovementsbus:Consolidated2022-12-3103237166core:PlantMachinerybus:Consolidated2022-12-3103237166core:FurnitureFittingsbus:Consolidated2022-12-3103237166core:MotorVehiclesbus:Consolidated2022-12-3103237166core:LandBuildingscore:OwnedOrFreeholdAssets2023-12-3103237166core:PlantMachinery2023-12-3103237166core:FurnitureFittings2023-12-3103237166core:MotorVehicles2023-12-3103237166core:LandBuildingscore:OwnedOrFreeholdAssets2022-12-3103237166core:PlantMachinery2022-12-3103237166core:FurnitureFittings2022-12-3103237166core:MotorVehicles2022-12-3103237166core:ShareCapitalbus:Consolidated2023-12-3103237166core:ShareCapitalbus:Consolidated2022-12-3103237166core:RevaluationReservebus:Consolidated2023-12-3103237166core:RevaluationReservebus:Consolidated2022-12-3103237166core:ShareCapital2023-12-3103237166core:ShareCapital2022-12-3103237166core:RetainedEarningsAccumulatedLosses2023-12-3103237166core:ShareCapitalbus:Consolidated2021-12-3103237166core:SharePremiumbus:Consolidated2021-12-3103237166core:RetainedEarningsAccumulatedLossesbus:Consolidated2022-12-3103237166core:Non-controllingInterestsbus:Consolidated2022-12-3103237166core:Non-controllingInterestsbus:Consolidated2023-12-3103237166core:ShareCapital2021-12-3103237166core:RetainedEarningsAccumulatedLosses2021-12-3103237166core:RetainedEarningsAccumulatedLosses2022-12-3103237166core:RevaluationReservebus:Consolidated2022-12-3103237166core:RevaluationReserve2022-12-3103237166core:RevaluationReserve2021-12-3103237166core:RevaluationReserve2023-12-3103237166core:RetainedEarningsAccumulatedLossesbus:Consolidated2023-12-3103237166bus:Consolidated2021-12-3103237166core:Goodwill2023-01-012023-12-3103237166core:LandBuildingscore:OwnedOrFreeholdAssets2023-01-012023-12-3103237166core:LeaseholdImprovements2023-01-012023-12-3103237166core:PlantMachinery2023-01-012023-12-3103237166core:FurnitureFittings2023-01-012023-12-3103237166core:MotorVehicles2023-01-012023-12-3103237166core:UKTaxbus:Consolidated2023-01-012023-12-3103237166core:UKTaxbus:Consolidated2022-01-012022-12-3103237166bus:Consolidated12023-01-012023-12-3103237166bus:Consolidated12022-01-012022-12-3103237166bus:Consolidated22023-01-012023-12-3103237166bus:Consolidated22022-01-012022-12-3103237166core:Goodwillbus:Consolidated2022-12-3103237166core:Goodwill2022-12-3103237166core:Goodwillbus:Consolidated2023-12-3103237166core:Goodwillbus:Consolidated2022-12-3103237166core:Goodwill2023-12-3103237166core:Goodwill2022-12-3103237166core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2022-12-3103237166core:LeaseholdImprovementsbus:Consolidated2022-12-3103237166core:PlantMachinerybus:Consolidated2022-12-3103237166core:FurnitureFittingsbus:Consolidated2022-12-3103237166core:MotorVehiclesbus:Consolidated2022-12-3103237166bus:Consolidated2022-12-3103237166core:LandBuildingscore:OwnedOrFreeholdAssets2022-12-3103237166core:PlantMachinery2022-12-3103237166core:FurnitureFittings2022-12-3103237166core:MotorVehicles2022-12-31032371662022-12-3103237166core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2023-01-012023-12-3103237166core:LeaseholdImprovementsbus:Consolidated2023-01-012023-12-3103237166core:PlantMachinerybus:Consolidated2023-01-012023-12-3103237166core:FurnitureFittingsbus:Consolidated2023-01-012023-12-3103237166core:MotorVehiclesbus:Consolidated2023-01-012023-12-3103237166core:CurrentFinancialInstruments2023-12-3103237166core:CurrentFinancialInstruments2022-12-3103237166core:CurrentFinancialInstrumentsbus:Consolidated2023-12-3103237166core:CurrentFinancialInstrumentsbus:Consolidated2022-12-3103237166core:WithinOneYearbus:Consolidated2023-12-3103237166core:WithinOneYearbus:Consolidated2022-12-3103237166core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3103237166core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3103237166core:Non-currentFinancialInstrumentsbus:Consolidated2023-12-3103237166core:Non-currentFinancialInstrumentsbus:Consolidated2022-12-3103237166core:Non-currentFinancialInstruments2023-12-3103237166core:Non-currentFinancialInstruments2022-12-3103237166core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2023-12-3103237166core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2022-12-3103237166core:WithinOneYear2023-12-3103237166core:WithinOneYear2022-12-3103237166core:BetweenTwoFiveYearsbus:Consolidated2023-12-3103237166core:BetweenTwoFiveYearsbus:Consolidated2022-12-3103237166core:BetweenTwoFiveYears2023-12-3103237166core:BetweenTwoFiveYears2022-12-3103237166bus:PrivateLimitedCompanyLtd2023-01-012023-12-3103237166bus:FRS1022023-01-012023-12-3103237166bus:Audited2023-01-012023-12-3103237166bus:ConsolidatedGroupCompanyAccounts2023-01-012023-12-3103237166bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP