Registered number:
FOR THE YEAR ENDED 31 MARCH 2024
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ORIGIN STORAGE LIMITED
COMPANY INFORMATION
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ORIGIN STORAGE LIMITED
CONTENTS
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ORIGIN STORAGE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
The Directors present the Strategic Report for the year ended 31 March 2024.
The start of FY 2023/2024 continued the trend of the previous year, with a lower level of customer demand than expected in Q1. Due to this low demand, it was challenging to hold prices with competitors being extremely pro-active, this led to a reduction in margins and an increase in smaller volume orders which in turn created additional work load pressure on many departments.
Q2 remained fairly similar, with a slight improvement to revenues and margin compared to Q1 with the market easing a little but still very much a challenging landscape. From Q3, demand started to increase, however, supply remained tight which made maintaining stock levels more difficult. Q4 was the strongest of the financial year, outperforming Q3’s profitability by 20% which greatly helped balance the slower start in the first 6 months of the year. The board acknowledges that we saw a decline in overall revenues of 2.65% compared to the previous year. It also acknowledges that costs increased significantly, including interest rates on borrowings and also the 6% hike in Corporation Tax which ultimately led to a 17% reduction in Profit after tax compared to last year, despite only a 2.65% revenue difference. Considering the market conditions, increased costs and challenges the board remains satisfied that this was still a strong year, and the business remains very profitable, especially compared to its competition. Last year we actively pursued additional vendors to widen our product portfolio and customer reach, this year we have taken a more relaxed approach to allow time for those vendors/products to gain mindshare within our customer base without over-loading them with too many new products. The previous years vendors are growing consistently well and we will look to explore new vendors/partners in the next FY.
With our move into the Gaming and Business to Consumer (B2C) sales channel there is certainly a risk associated with the correct stock portfolio on these lines as stock ages much quicker in this channel owing to more frequent price fluctuations and changes in market demand. With it being a completely new revenue stream it is difficult to predict how big the rewards will be, we know the size of the market is very strong, but there is some uncertainty of how much of this market we will be able to penetrate in the short, medium and long term which again makes stocking correctly a challenge but also targeting and performance indicators are tough to set.
The market is still quiet compared to pre CV19 times, however signs are positive that FY24/25 will be much stronger.
Moving into the new Gaming/B2C Sales Channel has certainly brought its challenges on cash flow owing to the nature of the products involved. Some of the products are considerably higher in ASP than we are used to and of course carrying more lines means our stock value has increased which places additional pressure on cashflow. However, it has also brought opportunities for higher volumes and quicker turnaround on sales opportunities which when utilising our invoice discounting to manage our working capital correctly greatly assists in minimising any cash flow risk.
Despite this year’s challenges and a lower result than originally expected we are still in a strong cash flow position going into our new FY.
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ORIGIN STORAGE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
Competition remains as strong as ever in our existing channel and now we have got a new set of competition in the Gaming/B2C channel to consider also. We see competition as healthy, and it ensures complacency is kept to a minimum within the business. There will always be a risk that competitors steal business we believe is locked into Origin, however, mitigating that by being as close to our customers as possible is key and buy doing this we are also ensuring any additional opportunities are not overlooked.
This report was approved by the board and signed on its behalf.
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ORIGIN STORAGE LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 MARCH 2024
The director presents his report and the financial statements for the year ended 31 March 2024.
The director who served during the year was:
In our next FY we are looking to expand our Sales Team with both VAR and Gaming specific account manager placements to maximise new account opportunities and ensure existing customers are being managed as effectively as possible. We are also looking to expand our current European business by attaining new customers in new territories across EMEA with a strong focus on bi-lingual sales recruitment once the foundations are in place. With a fairly aggressive target for the year ahead and the intended growth of the UK & EU Sales teams it is inevitable that additional back office staff will be required to ensure our service levels aren’t affected.
We will once again be pro-actively looking to attract new vendors into our portfolio and will be continuing to expand our “Origin” branded range of products in order to fulfil existing customer expectations but also are looking to meet new customer requirements with their differing demands.
The director is responsible for preparing the Strategic Report, the Director's Report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the director is required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments 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 director is responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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ORIGIN STORAGE LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
The auditor, James Cowper Kreston Audit, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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ORIGIN STORAGE LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ORIGIN STORAGE LIMITED
We have audited the financial statements of Origin Storage Limited (the 'Company') for the year ended 31 March 2024, which comprise the Profit and Loss Account, the Balance Sheet, the Statement of Changes in Equity and the related notes, 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).
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 Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
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 Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.
The 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.
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ORIGIN STORAGE LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ORIGIN STORAGE LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Director's Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Director's Report.
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ORIGIN STORAGE LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ORIGIN STORAGE LIMITED (CONTINUED)
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.
Because of 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 regulation. 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. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
∙Enquiry of management and those charged with governance around actual and potential litigation and claims;
∙Enquiry of management and those charged with governance to identify any material instances of non-compliance with laws and regulations;
∙Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
∙Performing audit work to address the risk of irregularities due to management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for evidence of bias.
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 Auditor's Report.
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ORIGIN STORAGE LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ORIGIN STORAGE LIMITED (CONTINUED)
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.
for and on behalf of
Chartered Accountants and Statutory Auditor
2 Communications Road
Greenham Business Park
Greenham
Berkshire
RG19 6AB
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ORIGIN STORAGE LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
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ORIGIN STORAGE LIMITED
REGISTERED NUMBER: 04117552
BALANCE SHEET
AS AT 31 MARCH 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 12 to 24 form part of these financial statements.
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ORIGIN STORAGE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
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ORIGIN STORAGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
Origin Storage Limited (registered number 04117552) is a private company, limited by shares and registered in England and Wales under the Companies Act. The Company's principal place of trade and registered office is Unit 2-4, The Rutherford Centre, Rutherford Road, Basingstoke, Hampshire, RG24 8PB.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The following principal accounting policies have been applied:
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Origin Storage Group Holdings Limited as at 31 March 2024 and these financial statements may be obtained from its registered office Unit 2-4 The Rutherford Centre, Rutherford Road, Basingstoke, Hampshire, England, RG24 8PB.
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ORIGIN STORAGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
Functional and presentation currency
The Company's functional and presentational currency is GBP. Transactions and balances Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions. At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined. Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Profit and Loss Account within 'administrative expenses' Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Profit and Loss Account within 'administrative expenses'.
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ORIGIN STORAGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
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ORIGIN STORAGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
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ORIGIN STORAGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, and loans from banks and related parties.
Short term debtors and creditors are measured at the transaction price, less any impairment. Other financial instruments are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment. Financial liabilities and equity are classified according to the substance of the financial instrument’s contractual obligations, rather than the financial instrument’s legal form. The items in the financial statements where these judgements and estimates have been made include: Useful economic lives The annual amortisation charge for intangible assets is sensitive to change in the estimated useful economic lives and residual value of the asset. Provisions As part of the identification and measurement of assets and liabilities, the Company has recognised a provision for impaired stock. In determining the fair value of the provision, assumptions and estimates are made in relation to future product sales.
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ORIGIN STORAGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
Analysis of turnover by country of destination:
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ORIGIN STORAGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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ORIGIN STORAGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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ORIGIN STORAGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
11.Taxation (continued)
There were no factors that may affect future tax charges.
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ORIGIN STORAGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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ORIGIN STORAGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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ORIGIN STORAGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
Share premium account
Profit and loss account
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £57,659 (2023: £41,312). At the year end £13,741 was payable to the pension provider (2023: £6,843).
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ORIGIN STORAGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
At the balance sheet date the Company was controlled by
Origin Storage Holdings Group Limited is the parent of the smallest and largest group to consolidate these financial statements. Copies of these financial statements may be obtained from Companies House. The ultimate controlling party is Mr S Eling.
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