REGISTERED NUMBER: 02772788 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 31 December 2023 |
for |
SIRVA Relocation Holdings Limited |
REGISTERED NUMBER: 02772788 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 31 December 2023 |
for |
SIRVA Relocation Holdings Limited |
SIRVA Relocation Holdings Limited (Registered number: 02772788) |
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 | 4 |
Report of the Independent Auditors | 6 |
Consolidated Statement of Profit or Loss and 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 Financial Statements | 15 |
SIRVA Relocation Holdings Limited |
Company Information |
for the Year Ended 31 December 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SIRVA Relocation Holdings Limited (Registered number: 02772788) |
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 ACTIVITY |
The principal activity of the group in the year under review was that of the provision of relocation services. |
REVIEW OF BUSINESS |
SIRVA has maintained its position within the relocation industry with regards to operational excellence, market share and financial performance with numerous ongoing client pursuits in both domestic and global markets. The UK operations continue to benefit from the global reach of our ultimate parent company, SIRVA Holdings LLC which has operating subsidiaries and franchises in over 190 countries around the world. This provides many cross-selling opportunities of services between geographical regions with the UK being a key location for many international clients. SIRVA's client list includes numerous global blue-chip companies who benefit from end-to-end relocation and moving solutions, flexibility to meet individual needs and innovative technology solutions. |
PRINCIPAL RISKS AND UNCERTAINTIES |
As a provider of global relocation services to large international corporations, the company could be subject to the on-going risks surrounding the global financial and economic climate. Increases in global interest rates has had an impact on trading and management continue to work closely with clients to innovate our services and adapt to their changing requirements. The outlook is now more favourable with interest rates forecast to reduce gradually over the coming years. The financial statements have been prepared on a going concern basis. |
SECTION 172(1) STATEMENT |
The directors of SIRVA Relocation Holdings Limited and those of all UK companies, must act in accordance with a set of general duties. These duties are detailed in the UK's Companies Act and include a duty to promote the success of the Company, detailed below is how the Company ensure this is achieved. |
Statement of corporate governance |
The directors of the company act together for the long-term benefits of the business. Decisions made take into account the aims, ethics and values of the Group as a whole and are undertaken with reference to corporate guidelines. |
Engagement with employees |
Short term and longer term business planning takes into account the interests of employees who are key to the success of the company. We strive to be the employer of choice, encouraging employee engagement and working together as one for everyone's benefit. |
Engagement with suppliers, customers and others |
The company works closely with its business partners, suppliers and customers with the aim to deliver the highest levels of customer service. The business aims to operate at the highest standards, continuously improving how we work and how we support our customers. The company supports local charities raising money through employee events. |
Environment |
We are mindful of the environment and have embraced the cultural shift to hybrid working with the majority of staff now working from home. This has enabled us to reduce the number of office locations in the UK. In our offices we operate a recycling policy and our staff only travel for business when required. These actions contribute to the on-going reduction in our carbon footprint. |
FUTURE DEVELOPMENTS |
The future development of the company will remain focused upon new sales and increasing market share within the relocation and moving industry both within the UK and in mainland Europe. |
KEY PERFORMANCE INDICATORS |
Our Turnover increased by 63% and our Gross Profit decreased by 11%. Our client retention rate remains at over 90%. Given the nature of the business, the company's directors are of the opinion that analysis using financial KPI's, other than those already disclosed in the accounts, is not necessary for an understanding of the development, performance or position of the business. |
SIRVA Relocation Holdings Limited (Registered number: 02772788) |
Group Strategic Report |
for the Year Ended 31 December 2023 |
CHANGE IN ULTIMATE PARENT COMPANY |
Subsequent to year-end, on 20 August 2024, the Company's intermediate parent company, SIRVA Worldwide, Inc., completed a debt restructuring transaction with its lenders and equity sponsors. Through this transaction, the Company is under a new ownership group led by certain credit funds and accounts managed by KKR Credit Advisors (US) LLC, Evolution Credit Partners, BlackRock Financial Management, Inc. and affiliates thereof, and Indaba Capital Management, L.P.. As a result, the Company's ultimate parent company is considered to be SIRVA Holdings LLC, a corporation domiciled in the United States. |
ON BEHALF OF THE BOARD: |
SIRVA Relocation Holdings Limited (Registered number: 02772788) |
Report of the Directors |
for the Year Ended 31 December 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 December 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of the provision of relocation services. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 December 2023. |
DIRECTORS |
Other changes in directors holding office are as follows: |
FINANCIAL INSTRUMENTS |
The company and the group holds or issues financial instruments in order to achieve three main objectives, being: |
a) to finance its operations; |
b) to manage its exposure to interest risks arising from its operations and from its sources of finance; |
c) for trading purposes. |
In addition, various financial instruments (e.g. trade debtors, trade creditors, accruals and prepayments) arise directly from the company and the group operations. |
STREAMLINED ENERGY AND CARBON REPORTING |
The group is now starting to measure our impact on the environment and has put in place procedures so as in future periods can capture and report on the emissions the group generates. The group is also making efforts to reduce the environmental impact of its activities. |
DISCLOSURE IN THE STRATEGIC REPORT |
The directors have chosen to report on the principal risks and uncertainties effecting the group and their review of the business and the review of engagement with employees, suppliers and customers and others in the Strategic Report. |
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 UK-adopted international accounting standards. 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; |
- | state that the financial statements comply with IFRS; |
- | 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. |
SIRVA Relocation Holdings Limited (Registered number: 02772788) |
Report of the Directors |
for the Year Ended 31 December 2023 |
AUDITORS |
The auditors, Sumer Auditco Limited, 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 |
SIRVA Relocation Holdings Limited |
Opinion |
We have audited the financial statements of SIRVA Relocation Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Statement of Profit or Loss and Other Comprehensive Income, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity, the Consolidated Statement of Cash Flows and 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 International Financial Reporting Standards (IFRSs) as adopted by the UK. |
_ |
In our opinion: |
- | the financial statements give a true and fair view of the state of the group's and of the parent company's affairs as at 31 December 2023 and of the group's loss for the year then ended; |
- | the group financial statements have been properly prepared in accordance with IFRSs as adopted by the UK; |
- | the parent company financial statements have been properly prepared in accordance with IFRSs as adopted by the UK and as applied in accordance with the provisions of the Companies Act 2006; and |
- | the financial statements 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. |
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. |
Report of the Independent Auditors to the Members of |
SIRVA Relocation Holdings Limited |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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: |
Based on our understanding of the Group and industry, we identified that the principal risks of non-compliance with laws and regulations related to employment law and company legislation and we considered the extent to which non-compliance might have a material effect on the financial statements of the group. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and Corporation Tax Act 2010. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to increase revenue or reduce expenditure, and management bias in accounting estimates and judgemental areas of the financial statements. Audit procedures performed by the audit engagement team included: |
- | Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud; |
- | Understanding of management's internal controls designed to prevent and detect irregularities, and fraud; |
- | Reviewing the group's legal costs to check for non-compliance with laws and regulations and fraud; |
- | Review of tax compliance; |
- | Designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing of expenses; |
- | Testing transactions entered into outside of the normal course of the group's business; and |
- | Identifying and testing journal entries, in particular any journal entries with fraud characteristics such as journals with round numbers. |
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. |
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 |
SIRVA Relocation Holdings Limited |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Statutory Auditors |
Hermes House |
Fire Fly Avenue |
Swindon |
Wiltshire |
SN2 2GA |
SIRVA Relocation Holdings Limited (Registered number: 02772788) |
Consolidated Statement of Profit or Loss and Other Comprehensive Income |
for the Year Ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
CONTINUING OPERATIONS |
Revenue | 3 | 458,755,804 | 280,515,554 |
Cost of sales | (447,234,820 | ) | (267,640,251 | ) |
GROSS PROFIT | 11,520,984 | 12,875,303 |
Other operating income | 180,423 | 145,336 |
Administrative expenses | (19,571,597 | ) | (16,574,883 | ) |
OPERATING LOSS | (7,870,190 | ) | (3,554,244 | ) |
Finance costs | 5 | (5,765,274 | ) | (2,816,535 | ) |
Finance income | 5 | 2,026,144 | 1,641,818 |
LOSS BEFORE INCOME TAX | 6 | (11,609,320 | ) | (4,728,961 | ) |
Income tax | 7 | (13,543 | ) | (30,707 | ) |
LOSS FOR THE YEAR | ( |
) | ( |
) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
(11,622,863 |
) |
(4,759,668 |
) |
Profit attributable to: |
Owners of the parent | (11,622,863 | ) | (4,759,668 | ) |
Total comprehensive income attributable to: |
Owners of the parent | - | - |
SIRVA Relocation Holdings Limited (Registered number: 02772788) |
Consolidated Statement of Financial Position |
31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
ASSETS |
NON-CURRENT ASSETS |
Goodwill | 9 | 15,013,438 | 18,624,384 |
Owned |
Intangible assets | 10 | 48,829 | 78,022 |
Property, plant and equipment | 11 | 218,622 | 221,292 |
Right-of-use |
Property, plant and equipment | 11, 19 | - | - |
Investments | 12 | 307,352 | 307,352 |
15,588,241 | 19,231,050 |
CURRENT ASSETS |
Trade and other receivables | 13 | 141,627,051 | 114,032,926 |
Cash and cash equivalents | 14 | 12,223,207 | 19,682,630 |
153,850,258 | 133,715,556 |
TOTAL ASSETS | 169,438,499 | 152,946,606 |
EQUITY |
SHAREHOLDERS' EQUITY |
Called up share capital | 15 | 6,152,180 | 6,152,180 |
Share premium | 16 | 1,477,051 | 1,477,051 |
Capital redemption reserve | 16 | 216,000 | 216,000 |
Other reserves | 16 | 64,618,639 | 64,618,639 |
Retained earnings | 16 | (32,244,960 | ) | (20,622,097 | ) |
TOTAL EQUITY | 40,218,910 | 51,841,773 |
LIABILITIES |
NON-CURRENT LIABILITIES |
Trade and other payables | 17 | 5,840,757 | 5,441,932 |
Financial liabilities - borrowings |
Interest bearing loans and borrowings | 18 | - | 730,758 |
5,840,757 | 6,172,690 |
CURRENT LIABILITIES |
Trade and other payables | 17 | 122,648,073 | 93,622,180 |
Financial liabilities - borrowings |
Interest bearing loans and borrowings | 18 | 730,759 | 1,309,963 |
123,378,832 | 94,932,143 |
TOTAL LIABILITIES | 129,219,589 | 101,104,833 |
TOTAL EQUITY AND LIABILITIES | 169,438,499 | 152,946,606 |
The financial statements were approved by the Board of Directors and authorised for issue on 25 October 2024 and were signed on its behalf by: |
L E Hills - Director |
SIRVA Relocation Holdings Limited (Registered number: 02772788) |
Company Statement of Financial Position |
31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
ASSETS |
NON-CURRENT ASSETS |
Goodwill | 9 |
Owned |
Intangible assets | 10 |
Property, plant and equipment | 11 |
Right-of-use |
Investments | 12 | 44,480,206 | 73,593,974 |
CURRENT ASSETS |
Trade and other receivables | 13 |
Cash and cash equivalents | 14 |
TOTAL ASSETS |
EQUITY |
SHAREHOLDERS' EQUITY |
Called up share capital | 15 |
Share premium | 16 |
Capital redemption reserve | 16 |
Other reserves | 16 |
Retained earnings | 16 | ( |
) | ( |
) |
TOTAL EQUITY |
LIABILITIES |
NON-CURRENT LIABILITIES |
Trade and other payables | 17 |
TOTAL LIABILITIES |
TOTAL EQUITY AND LIABILITIES |
The financial statements were approved by the Board of Directors and authorised for issue on |
SIRVA Relocation Holdings Limited (Registered number: 02772788) |
Consolidated Statement of Changes in Equity |
for the Year Ended 31 December 2023 |
Called up |
share | Retained | Share |
capital | earnings | premium |
£ | £ | £ |
Balance at 1 January 2022 | 6,152,180 | (12,678,919 | ) | 1,477,051 |
Changes in equity |
Total comprehensive income | - | (4,759,668 | ) | - |
Capital contribution | - | (3,183,510 | ) | - |
Balance at 31 December 2022 | 6,152,180 | (20,622,097 | ) | 1,477,051 |
Changes in equity |
Total comprehensive income | - | (11,622,863 | ) | - |
Balance at 31 December 2023 | 6,152,180 | (32,244,960 | ) | 1,477,051 |
Capital |
redemption | Other | Total |
reserve | reserves | equity |
£ | £ | £ |
Balance at 1 January 2022 | 216,000 | 15,844,563 | 11,010,875 |
Changes in equity |
Total comprehensive income | - | - | (4,759,668 | ) |
Capital contribution | - | 48,774,076 | 45,590,566 |
Balance at 31 December 2022 | 216,000 | 64,618,639 | 51,841,773 |
Changes in equity |
Total comprehensive income | - | - | (11,622,863 | ) |
Balance at 31 December 2023 | 216,000 | 64,618,639 | 40,218,910 |
SIRVA Relocation Holdings Limited (Registered number: 02772788) |
Company Statement of Changes in Equity |
for the Year Ended 31 December 2023 |
Called up |
share | Retained | Share |
capital | earnings | premium |
£ | £ | £ |
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 | ( |
) |
Capital |
redemption | Other | Total |
reserve | reserves | equity |
£ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Total comprehensive income | ( |
) |
Capital contribution | - | 48,774,076 | 48,774,076 |
Balance at 31 December 2022 |
Changes in equity |
Total comprehensive income | ( |
) |
Balance at 31 December 2023 |
SIRVA Relocation Holdings Limited (Registered number: 02772788) |
Consolidated Statement of Cash Flows |
for the Year Ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 23 | (3,603,702 | ) | 11,758,487 |
Interest paid | (583,571 | ) | (2,867,832 | ) |
Finance costs paid | (5,181,703 | ) | 51,297 |
Tax paid | (13,543 | ) | (20,628 | ) |
Net cash from operating activities | (9,382,519 | ) | 8,921,324 |
Cash flows from investing activities |
Purchase of intangible fixed assets | (2,987 | ) | (90,286 | ) |
Purchase of tangible fixed assets | (100,061 | ) | (2,952,120 | ) |
Purchase of subsidiary | - | (48,751,459 | ) |
Interest received | 2,026,144 | 1,641,818 |
Net cash from investing activities | 1,923,096 | (50,152,047 | ) |
Cash flows from financing activities |
Capital contribution | - | 48,774,076 |
Cash on acquisition | - | 8,965,431 |
Net cash from financing activities | - | 57,739,507 |
(Decrease)/increase in cash and cash equivalents | (7,459,423 | ) | 16,508,784 |
Cash and cash equivalents at beginning of year |
24 |
19,682,630 |
3,173,846 |
Cash and cash equivalents at end of year | 24 | 12,223,207 | 19,682,630 |
SIRVA Relocation Holdings Limited (Registered number: 02772788) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31 December 2023 |
1. | STATUTORY INFORMATION |
SIRVA Relocation Holdings Limited is a private company, limited by shares, registered in England and Wales. The company's registered number and registered office address can be found on the general information page. |
The presenation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparation |
These financial statements have been prepared in accordance with UK-adopted international accounting standards and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS. The financial statements have been prepared under the historical cost convention. |
Basis of consolidation |
The consolidated financial statements incorporate the financial statements of the company and all subsidiary undertakings. These are adjusted, where appropriate, to conform to group accounting policies. |
Acquisitions are accounted for under the acquisition method and goodwill on consolidation is capitalised and reviewed for impairment annually. The results of the companies acquired or disposed are included in the profit and loss account after or up to the date that control passes respectively. |
Going Concern |
The group's business activities, together with the factors likely to affect its future development, performance and position are set out in the Strategic Report. The Strategic Report and Directors' Report describe the financial position of the group; its cash flows, liquidity position and borrowing facilities; the groups objectives, policies and processes for managing its capital; its financial risk management objectives; details of its financial instruments; and its exposure to credit risk and liquidity risk. |
As at 31 December 2023, the group has negative retained earnings of £32,244,960 (2022: £20,622,097). The group has a loss for the year of £11,622,863 (2022: £4,759,668) |
The group meets day-to-day working capital requirements through a combination of its own operating cash flows and intercompany funding facilities for periods of shortfall. |
The nature of the group is such that they enter into contracts which will benefit the group but, from time-to-time, may cause losses on an entity basis. The cash flows and benefits of the company are primarily assessed on a group level wherein it provides a continued benefit to the group. |
SIRVA Holdings LLC, the company's intermediate parent, has confirmed that it will provide the necessary support to enable the company to meet their financial obligations as they fall due for the 12 months from approval of these financial statements. |
After making enquiries and considering the financial abilities of the group, the directors have a reasonable expectation that the company have adequate resources to continue in operational existence for a period of at least twelve months from the date of approval of these financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements. |
SIRVA Relocation Holdings Limited (Registered number: 02772788) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Revenue |
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the group and the revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding discounts, rebates, customer returns and other sales taxes or duty. |
The group recognises revenue from contracts with customers based on a five-step model as set out in IFRS 15: |
1 | Identify the contract(s) with a customer: A contract is defined as an agreement between two or more parties that creates enforceable rights and obligations and sets out the criteria for every contract that must be met. |
2 | Identify the performance obligations in the contract: A performance obligation is a promise in a contract with a customer to transfer a good or service to the customer. |
3 | Determine the transaction price: The transaction price is the amount of consideration to which the company expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties. |
4 | Allocate the transaction price to the performance obligations in the contract: For a contract that has more than one performance obligation, the group will allocate the transaction price to each performance obligation in an amount that depicts the amount of consideration to which the company expects to be entitled in exchange for satisfying each performance obligation. |
5 | Recognise revenue when (or as) the entity satisfies a performance obligation at a point in time or over time. |
The group satisfies a performance obligation and recognises revenue over time, if one of the following criteria is met: |
- | The customer simultaneously receives and consumes the benefits provided by the group's performance as the group performs; or |
- | The group's performance creates or enhances an asset that the customer controls as the asset is created or enhanced; or |
- | The group's performance does not create an asset with an alternative use to the group and the entity has an enforceable right to payment for performance completed to date. |
For performance obligations where any one of the above conditions are not met, revenue is recognised at a point in time at which the performance obligation is satisfied. The group is required to assess each of its contracts with customers to determine whether performance obligations are satisfied over time or at a point in time in order to determine the appropriate method of recognising revenue. The group has concluded that for majority of its arrangements, it is either creating or enhancing an asset controlled by the customer or it is creating an asset with no alternative use and has an enforceable right to payment for work completed. Therefore, it meets the criteria to recognise revenue over time and measure progress of its projects through the time-based (output approach) as it best depicts the transfer of control of products and services under each performance obligation |
When the group satisfies a performance obligation by delivering the promised goods or services it creates a contract asset based on the amount of consideration earned by the performance. Where the amount of consideration received from a customer exceeds the amount of revenue recognised this gives rise to a contract liability. |
Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes and duty. The group assesses its revenue arrangements against specific criteria to determine if it is acting as principal or agent. The group has concluded that it is acting as an agent in all of its revenue arrangements. |
Revenue is recognised when the group completes its performance obligation and control is transferred to the customer. |
The group combines two or more contracts entered into at or near the same time with the same customer and accounts for the contracts as a single contract if one or more of the following criteria are met: |
- | The two or more contracts entered into at or near the same time with the same customer are negotiated as a package, with a single commercial objective; |
- | The amount of consideration to be paid in a contract depends on the price or performance of the other contract; or |
- | The goods or services promised in the contracts (or some goods or services promised in each of the contracts) are a single performance obligation. |
SIRVA Relocation Holdings Limited (Registered number: 02772788) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
If the above criteria are met, the arrangements are combined and accounted for as a single arrangement for revenue recognition. |
The group applies the practical expedient in IFRS 15:94 and recognises incremental costs of obtaining contracts as an expense when incurred if the amortisation period of the assets the group would otherwise have recognised is one year or less. Contract costs with assessed amortisation period over one year are immaterial. |
Revenue is recognised in the statement of comprehensive income to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur and the revenue and costs, if applicable, can be measured reliably. |
The group recognises the following types of revenue from contracts with customers: |
Service fees from clients |
Service fees associated with the provision of relocation management services to customers (i.e., employees of clients) are generally recognised over the period in which services are rendered with the percentage of completion measured by specific milestones. Consideration from the client is usually received up front, as such it is initially recorded as contract liabilities and then recognised over the relocation lifecycle as the performance obligation to the client is satisfied. |
Supplier referral fees |
The group earns referral fees from various suppliers who provide services directly to customers as part of the company's service offerings. While the entity typically satisfies its performance obligation at the point of referral, consideration is variable and its estimate typically constrained until known as the earned referral fee is dependent on the underlying services the referred transferee receives, if any. |
Finance income |
Finance income is primarily derived from amounts paid by the company for reimbursable costs, but not yet billed and collected from clients, and is generally variable based on market rates plus a negotiated spread. Finance income is recognised in revenue in the amount to which the entity has a right to invoice. |
Affiliated companies - transfer pricing |
The group is party to transfer pricing arrangements with affiliated companies under common control. Costs relating to services rendered on behalf of these companies are recharged with a mark-up commensurate with the profit margin earned by businesses providing similar services to arm's length. Revenue is recognised as the performance obligation is satisfied as service is rendered. |
Due to the nature of the services provided, the company does not incur any obligations for returns, refunds, warranties or other similar obligations. |
Pass through costs |
Pass through costs which are incurred on behalf of and reimbursed by clients are recorded as turnover and cost of sales. |
Finance costs |
Finance costs include interest payable recognised using the effective interest method. |
Cash and cash equivalents |
Cash represents cash in hand and deposits held on demand with financial institutions. Cash equivalents are short-term, highly-liquid investments with original maturities of three months or less (as at their date of acquisition). Cash equivalents are readily convertible to known amounts of cash and subject to an insignificant risk of change in that cash value. |
In the presentation of the Statement of Cash Flows, cash and cash equivalents also include bank overdrafts. Any such overdrafts are shown within borrowings under ‘current liabilities’ on the Statement of Financial Position. |
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. |
Computer software is being amortised evenly over it's estimated useful life of three years. |
SIRVA Relocation Holdings Limited (Registered number: 02772788) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Property, plant and equipment |
Short leasehold | - | over period of lease |
Improvements to property | - |
Fixtures and fittings | - |
Computer equipment | - |
Property plant and equipment are stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of items. |
The assets residual values and useful lives are reviewed and adjusted if appropriate, at the end of each reporting period. |
Taxation |
Current taxes are based on the results shown in the financial statements and are calculated according to local tax rules, using tax rates enacted or substantially enacted by the statement of financial position date. |
Income tax expense represents the sum of the tax currently payable and deferred tax. |
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period. |
Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. |
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. |
Current or deferred tax for the year is recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax is also recognised in other comprehensive income or directly in equity respectively. |
Leases |
Leases are recognised as finance leases. The lease liability is initially recognised at the present value of the lease payments which have not yet been made and subsequently measured under the amortised cost method. The initial cost of the right-of-use asset comprises the amount of the initial measurement of the lease liability, lease payments made prior to the lease commencement date, initial direct costs and the estimated costs of removing or dismantling the underlying asset per the conditions of the contract. |
Where ownership of the right-of-use asset transfers to the lessee at the end of the lease term, the right-of-use asset is depreciated over the asset’s remaining useful life. If ownership of the right-of-use asset does not transfer to the lessee at the end of the lease term, depreciation is charged over the shorter of the useful life of the right-of-use asset and the lease term. |
Employee benefit costs |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to the income statement in the period to which they relate. |
SIRVA Relocation Holdings Limited (Registered number: 02772788) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
Financial assets and financial liabilities are recognised when the company becomes a party to the contractual provisions of the relevant instrument. In accordance with IFRS 9: Financial Instruments, the financial instruments are recorded initially at fair value. Subsequent measurement of those instruments at the year-end date reflects the designation of the financial instrument. |
Financial assets and liabilities are offset and the net amount presented in the statement of financial position when the company has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously. |
Trade and other receivables |
Trade and other receivables are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method, less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases, the receivables are stated at cost less impairment losses for bad and doubtful debts. |
Foreign currency translation |
The group's functional and presentational currency is the British pound sterling. Foreign currency transactions are translated into the functional currency using the spot exchange rate at the dates of the transactions. At each period end, foreign currency monetary items are translated using the closing rate. Non-monetary items at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are translated using the exchange rate when the fair value was determined. |
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss. |
Impairment of financial assets |
Financial assets, are assessed for indicators of impairment at the end of each reporting period. Financial assets are considered to be impaired when there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been affected. |
For all other financial assets, objective evidence of impairment could include: |
- significant financial difficulty of the issuer or counterparty; or |
- breach of contract, such as a default or delinquency in interest or principal payments; or |
- it becoming probable that the borrower will enter bankruptcy or financial re-organisation; or |
- the disappearance of an active market for that financial asset because of financial difficulties. |
For certain categories of financial asset, such as trade receivables, assets that are assessed not to be impaired individually are, in addition, assessed for impairment on a collective basis. Objective evidence of impairment for a portfolio of receivables could include the company's past experience of collecting payments, an increase in the number of delayed payments in the portfolio past the average credit period of 30 days, as well as observable changes in national or local economic conditions that correlate with default on receivables. |
For financial assets carried at amortised cost, the amount of the impairment loss recognised is the difference between the asset's carrying amount and the present value of estimated future cash flows, discounted at the financial asset's original effective interest rate. |
For financial assets carried at cost, the amount of the impairment loss is measured as the difference between the asset's carrying amount and the present value of the estimated future cash flows discounted at the current market rate of return for a similar financial asset. Such impairment loss will not be reversed in subsequent periods. |
The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with the exception of trade receivables, where the carrying amount is reduced through the use of an allowance account. When a trade receivable is considered uncollectible, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited against the allowance account. Changes in the carrying amount of the allowance account are recognised in profit or loss. |
For financial assets measured at amortised cost, if, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed through profit or loss to the extent that the carrying amount of the investment at the date the impairment is reversed does not exceed what the amortised cost would have been had the impairment not been recognised. |
SIRVA Relocation Holdings Limited (Registered number: 02772788) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Trade and other payables |
Trade and other payables are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost. |
Related parties |
For the purposes of these financial statements, a party is considered to be related to the group if: |
(i) the party has the ability, directly or indirectly, through one or more intermediaries, to control the group or exercise significant influence over the group in making financial and operating policy decisions, or has joint control over the group; |
(ii) the group and the party are subject to common control; |
(iii) the party is an associate of the group or a joint venture in which the group is a venturer; |
(iv) the party is a member of key management personnel of the group or the group's parent, or a close family member of such an individual, or is an entity under the control, joint control or significant influence of such individuals; |
(v) the party is a close family member of a party referred to in (i) or is an entity under the control, joint control or significant influence of such individuals; or |
(vi) the party is a post-employment benefit plan which is for the benefit of employees of the group or of any entity that is a related party of the group. |
Close family members of an individual are those family members who may be expected to influence, or be influenced by, that individual in their dealings with the entity. |
Provisions |
Provisions are recognised when the group has a present legal or constructive obligation arising as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as interest expense. |
3. | REVENUE |
Revenue from contracts with customers |
Disaggregation of turnover |
The tables below summarise revenue by nature and the timing of revenue recognition under IFRS 15: |
2023 | 2022 |
Turnover recognised from contracts with customers |
£ | £ |
Pass through Turnover | 408,982,420 | 250,456,145 |
Service Fees | 46,951,764 | 28,398,955 |
Referral Fees | 2,777,317 | 1,660,454 |
458,711,501 | 280,515,554 |
Timing of Turnover recognition | 2023 | 2022 |
£ | £ |
At a point in time | 411.759,738 | 252,116,599 |
Over time | 46,951,763 | 28,398,955 |
458,711,501 | 280,515,554 |
SIRVA Relocation Holdings Limited (Registered number: 02772788) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
3. | REVENUE - continued |
Contract balances |
The table below provides information about receivables, contract assets and deferred Revenues from contracts with customers |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Receivables (i) | 5,663,253 | 6,438,626 | - | - |
Contract assets (i) | 15,874,067 | 14,717,326 | - | - |
Deferred Revenue (ii) | 676,132 | 919,916 | - | - |
i ) Included in the 'Trade and other receivables' |
ii ) Included in 'Trade and other payables- amounts falling due within one year. |
The contract assets primarily relate to the Group's right to consideration for work completed but not billed at the reporting date on client contracts. The contract assets are transferred to receivables when the right becomes unconditional. The deferred revenues primarily relate to the advance consideration received from client contracts, for which revenue is recognised over the period in which services are provided. |
Contract assets | Deferred Revenue |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Group |
Revenue recognised that was included in the contact balance at the beginning of the period. |
(919,916) |
(4,128,383) |
Increases due to cash received, excluding amounts recognised as revenue during the period |
676,132 |
913,346 |
Transfers from contract assets recognised at the beginning of the period to receivables |
(14,717,326) |
(7,095,299) |
Increases as a result of changes in the measure of progress |
15,874,067 |
14,717,326 |
4. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 16,488,821 | 10,021,717 |
Social security costs | 1,556,961 | 1,008,680 |
Other pension costs | 503,528 | 293,556 |
18,549,310 | 11,323,953 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Sales | 5 | 5 |
Account management | 46 | 47 |
Operations | 240 | 231 |
Administration | 56 | 56 |
SIRVA Relocation Holdings Limited (Registered number: 02772788) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
4. | EMPLOYEES AND DIRECTORS - continued |
2023 | 2022 |
£ | £ |
Directors' remuneration | 400,581 | 434,111 |
Directors' pension contributions to money purchase schemes | 13,701 | 15,942 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 2 | 2 |
Information regarding the highest paid director is as follows: |
2023 | 2022 |
£ | £ |
Emoluments etc | 265,966 | 232,991 |
Pension contributions to money purchase schemes | 8,201 | 7,905 |
5. | NET FINANCE COSTS |
2023 | 2022 |
£ | £ |
Finance income: |
Other interest | 1,842,464 | 1,556,809 |
Interest Income | 183,680 | 85,009 |
2,026,144 | 1,641,818 |
Finance costs: |
Group interest payable | 366,573 | 417,468 |
Other interest | 216,998 | (59,934 | ) |
Interest on lease liabilities | 133,966 | 119,363 |
Interest paid to related | 4,458 | 24,278 |
Loss on securitised receivable | 5,043,279 | 2,315,360 |
5,765,274 | 2,816,535 |
Net finance costs | 3,739,130 | 1,174,717 |
6. | LOSS BEFORE INCOME TAX |
The operating loss is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Other operating leases | - |
Depreciation - owned assets | 102,731 | 154,705 |
Amortisation - computer software | 32,180 | 31,901 |
Auditors' remuneration | 83,936 | 97,122 |
Foreign exchange differences | (97,798 | ) | 1,051,168 |
Goodwill impairment | 3,610,946 | - |
SIRVA Relocation Holdings Limited (Registered number: 02772788) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
7. | INCOME TAX |
Analysis of tax expense |
2023 | 2022 |
£ | £ |
Current tax: |
Tax | 13,543 | 20,628 |
Deferred Tax | - | 10,079 |
Total tax expense in consolidated statement of profit or loss and other comprehensive income |
13,543 |
30,707 |
Factors affecting the tax expense |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Loss before income tax | (11,609,320 | ) | (4,728,961 | ) |
Loss multiplied by the standard rate of corporation tax in the UK of 25 % (2022 - 19 %) |
(2,902,330 |
) |
(898,503 |
) |
Effects of: |
Losses carried forward | 1,692,382 | 1,198,026 |
Goodwill impairment | 902,736 | - |
Losses utilised | - | (299,280 | ) |
Capital allowances | (125,455 | ) | (25,595 | ) |
Disallowable expenses | 566,632 | 251,458 |
Depreciation in excess of capital allowances | - | 7,636 |
Non trade loan relationship credits | (133,966 | ) | (223,662 | ) |
Foreign Taxes | 13,544 | 20,627 |
Tax expense | 13,543 | 30,707 |
At 31 December 2023 the group had unused tax losses of £17,866,151 (2022: £10,188,698). |
8. | LOSS OF PARENT COMPANY |
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. The parent company's loss for the financial year was £19,599,111 (2022: Loss of £965,882) |
9. | GOODWILL |
Group |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 | 21,127,592 |
AMORTISATION |
At 1 January 2023 | 2,503,208 |
Impairments | 3,610,946 |
At 31 December 2023 | 6,114,154 |
NET BOOK VALUE |
At 31 December 2023 | 15,013,438 |
At 31 December 2022 | 18,624,384 |
SIRVA Relocation Holdings Limited (Registered number: 02772788) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
10. | INTANGIBLE ASSETS |
Group |
Computer |
software |
£ |
COST |
At 1 January 2023 | 215,120 |
Additions | 2,987 |
At 31 December 2023 | 218,107 |
AMORTISATION |
At 1 January 2023 | 137,098 |
Amortisation for year | 32,180 |
At 31 December 2023 | 169,278 |
NET BOOK VALUE |
At 31 December 2023 | 48,829 |
At 31 December 2022 | 78,022 |
11. | PROPERTY, PLANT AND EQUIPMENT |
Group |
Improvements | Fixtures |
Short | to | and | Computer |
leasehold | property | fittings | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 January 2023 | 1,882,997 | 198,152 | 117,455 | 710,613 | 2,909,217 |
Additions | - | 5,363 | 17,673 | 77,025 | 100,061 |
Disposals | - | - | - | (736 | ) | (736 | ) |
At 31 December 2023 | 1,882,997 | 203,515 | 135,128 | 786,902 | 3,008,542 |
DEPRECIATION |
At 1 January 2023 | 1,882,997 | 200,893 | 112,920 | 491,115 | 2,687,925 |
Charge for year | - | - | 1,610 | 101,121 | 102,731 |
Eliminated on disposal | - | - | - | (736 | ) | (736 | ) |
At 31 December 2023 | 1,882,997 | 200,893 | 114,530 | 591,500 | 2,789,920 |
NET BOOK VALUE |
At 31 December 2023 | - | 2,622 | 20,598 | 195,402 | 218,622 |
At 31 December 2022 | - | (2,741 | ) | 4,535 | 219,498 | 221,292 |
12. | INVESTMENTS |
Group |
Unlisted |
investments |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 | 307,352 |
NET BOOK VALUE |
At 31 December 2023 | 307,352 |
At 31 December 2022 | 307,352 |
SIRVA Relocation Holdings Limited (Registered number: 02772788) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
12. | INVESTMENTS - continued |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 | 74,843,901 |
PROVISIONS |
At 1 January 2023 | 1,249,927 |
Impairments | 29,113,768 |
At 31 December 2023 | 30,363,695 |
NET BOOK VALUE |
At 31 December 2023 | 44,480,206 |
At 31 December 2022 | 73,593,974 |
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: Stadthuasbrecke 1-3, 20355 Hamburg, Germany |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
SIRVA Relocation Holdings Limited (Registered number: 02772788) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
12. | INVESTMENTS - continued |
Company |
Registered office: Grzybowska 62, 00-855, Warszawa, Poland |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
(Loss)/profit for the year | ( |
) |
The above subsidiaries are not consolidated into these financial statements. |
The company's subsidiaries at the balance sheet date included in the consolidated accounts are the following: |
Company Name | Registered Office | Nature of business | Class of shares held | % held |
SIRVA Relocation (No.1) Limited | Kingston House, Lydiard Fields, Swindon, SN5 8UB. | Trading company- Relocation services | Ordinary | 100% |
SIRVA Limited | Kingston House, Lydiard Fields, Swindon, SN5 8UB. | Trading company- Relocation services | Ordinary | 100% |
GHS Global Relocation U.K Limited | Kingston House, Lydiard Fields, Swindon, SN5 8UB. | Holding company | Ordinary | 100% |
BGRS Global UK Limited | Kingston House, Lydiard Fields, Swindon, SN5 8UB. | Trading company- Relocation Services | Ordinary | 100% |
13. | TRADE AND OTHER RECEIVABLES |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Current: |
Trade debtors | 26,407,877 | 23,523,178 |
Amounts owed by group undertakings | 113,596,868 | 89,455,680 |
Other debtors | 75,000 | - | - | - |
VAT | 154,663 | 98,733 |
Prepayments and accrued income | 1,392,643 | 955,335 | - | - |
141,627,051 | 114,032,926 |
14. | CASH AND CASH EQUIVALENTS |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank accounts | 12,223,207 | 19,682,630 |
15. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 6,152,180 | 6,152,180 |
There are no restrictions on the distribution of dividends and the repayment of capital. |
SIRVA Relocation Holdings Limited (Registered number: 02772788) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
16. | RESERVES |
Group |
Capital |
Retained | Share | redemption | Other |
earnings | premium | reserve | reserves | Totals |
£ | £ | £ | £ | £ |
At 1 January 2023 | (20,622,097 | ) | 1,477,051 | 216,000 | 64,618,639 | 45,689,593 |
Deficit for the year | (11,622,863 | ) | (11,622,863 | ) |
At 31 December 2023 | (32,244,960 | ) | 1,477,051 | 216,000 | 64,618,639 | 34,066,730 |
Company |
Capital |
Retained | Share | redemption | Other |
earnings | premium | reserve | reserves | Totals |
£ | £ | £ | £ | £ |
At 1 January 2023 | ( |
) | 54,822,610 |
Deficit for the year | ( |
) | ( |
) |
At 31 December 2023 | ( |
) | 35,223,499 |
Retained earnings - includes all current and prior period retained profits and losses. |
Share premium account - includes any premium received on issue of share capital. Any transaction costs associated with the issuing of shares are deducted from share premium. |
Capital redemption - includes the nominal value of share capital that has been redeemed. |
Other reserves - includes capital contributions received by the company from its parent. |
17. | TRADE AND OTHER PAYABLES |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Current: |
Trade creditors | 13,462,269 | 11,320,277 |
Amounts owed to group undertakings | 95,730,377 | 64,365,813 |
Social security and other taxes | 368,928 | 360,667 |
Accruals and deferred income | 3,899,550 | 6,955,429 | - | - |
Other creditors | 9,186,949 | 10,619,994 | - | - |
122,648,073 | 93,622,180 |
Non-current: |
Amounts owed to group undertakings | 5,840,757 | 5,441,932 |
5,840,757 | 5,441,932 |
Aggregate amounts | 128,488,830 | 99,064,112 |
18. | FINANCIAL LIABILITIES - BORROWINGS |
Group |
2023 | 2022 |
£ | £ |
Current: |
Leases (see note 19) | 730,759 | 1,309,963 |
SIRVA Relocation Holdings Limited (Registered number: 02772788) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
18. | FINANCIAL LIABILITIES - BORROWINGS - continued |
Group |
2023 | 2022 |
£ | £ |
Non-current: |
Leases (see note 19) | - | 730,758 |
Terms and debt repayment schedule |
Group |
1 year or |
less |
£ |
Leases | 730,759 |
19. | LEASING |
Group |
Right-of-use assets |
Property, plant and equipment |
2023 | 2022 |
£ | £ |
COST |
At 1 January 2023 | 1,882,997 | 1,528,526 |
Additions | - | 2,800,982 |
Impairments | - | (511,587 | ) |
Reclassification/transfer | - | (1,934,924 | ) |
1,882,997 | 1,882,997 |
DEPRECIATION |
At 1 January 2023 | 1,882,997 | 1,356,957 |
Charge for year | - | 526,040 |
1,882,997 | 1,882,997 |
NET BOOK VALUE | - | - |
SIRVA Relocation Holdings Limited (Registered number: 02772788) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
19. | LEASING - continued |
Group |
Lease liabilities |
Minimum lease payments fall due as follows: |
2023 | 2022 |
£ | £ |
Gross obligations repayable: |
Within one year | 756,605 | 1,429,141 |
Between one and five years | - | 756,604 |
756,605 | 2,185,745 |
Finance charges repayable: |
Within one year | 25,846 | 119,178 |
Between one and five years | - | 25,846 |
25,846 | 145,024 |
Net obligations repayable: |
Within one year | 730,759 | 1,309,963 |
Between one and five years | - | 730,758 |
730,759 | 2,040,721 |
SIRVA Relocation Holdings Limited (Registered number: 02772788) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
20. | FINANCIAL INSTRUMENTS |
Exposure to foreign currency, credit, liquidity and cash flow interest rate risks arises in the normal course of the company's business. These risks are limited by the groups financial management policies and practices described below. |
Foreign currency risk |
The group is exposed to foreign currency risk due to a significant proportion of its sales and operating expenses being denominated in non sterling currencies. |
Credit risk and market risk |
The group is at risk from its customers defaulting in making payments for services that have been supplied to them. The company is at risk to the extent that a customer may not be able to pay a debt on the specified due date. This risk is mitigated by strong on going customer relationships. |
Liquidity risk |
The directors have ultimate responsibility for liquidity risk management in maintaining adequate reserves, banking facilities and reserve borrowing facilities. They do this by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities. |
Cash flow interest rate risk |
The group is exposed to interest rate risk through the impact of rate changes on interest-bearing borrowings. The group's policy is to obtain the most favourable interest rates available for its borrowings. |
The group does not use any derivative instruments to reduce its economic exposure to changes in interest rates. |
2023 | 2022 |
£ | £ |
Financial assets |
At amortised cost |
- Trade and other receivables | 140,387,096 | 113,286,210 |
- Cash at bank and at hand | 12,223,207 | 19,682,630 |
152,610,603 | 132,968,839 |
Financial liabilities |
At amortised cost |
- Trade and other payables and accruals | (128,119,902 | ) | (98,703,445 | ) |
- Lease liabilities (current and non current) | (730,759 | ) | (2,040,721 | ) |
(128,850,661 | ) | (100,744,166 | ) |
Fair values of financial assets and financial liabilities |
The carrying amounts of cash at bank and in hand, restricted cash, trade and other receivables and trade and other payables approximate their respective fair values due to the relatively short term maturity of these financial instruments. |
21. | ULTIMATE PARENT COMPANY |
SIRVA Holdings LLC (incorporated in United States of America) is regarded by the directors as being the company's ultimate parent company and is the parent company of the largest group of which the company is a member. |
SIRVA Relocation Holdings Limited (Registered number: 02772788) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
22. | RELATED PARTY DISCLOSURES |
Related Party transactions |
The group entered into a variety of transactions with companies and entities that fall within the definition of a related party as contained in IAS 24 related party disclosures. Related parties comprise the group's directors and entities related to them, companies under common ownership and/or common management and control, their partners and key management personal. Management decides on the terms and conditions of the transactions and services received from/rendered to related parties as well as on other charges. |
Balances and transactions between the group and it's subsidiaries, which are related parties, have been eliminated on consolidation and are not disclosed in this note. |
The nature of significant related party transactions and the amounts involved were as follows. |
Group |
2023 | 2022 |
Entities under common control | £ | £ |
Cost of sales | 25,884,060 | 33,219,995 |
Revenue | 15,495,459 | 15,994,359 |
Finance (Income) / expense net | 324,001 | 671,825 |
Administrative expenses | 7,703,433 | 8,773,988 |
The group earns revenue and incurs costs under transfer pricing arrangements with related companies. These arrangements aim to compensate, based on the arm's length principle, each group for services performed on behalf of other related companies for the delivery of relocation services to clients. |
At the end of the reporting year, amounts due from/to related parties were as follows: |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Entities under common control |
Interest bearing - net loans receivable/payable |
(107,483,181) |
(1,700,668) |
(14,242,419) |
(13,843,594) |
Non - interest bearing - net loans receivable/payable |
110,007,415 |
21,348,254 |
2,300,000 |
- |
The amounts due from/to related parties are current, unsecured and are repayable on demand. The interest bearing portion carries floating interest at LIBOR ranging from 1.9% - 8.125% (2022: 1.9% - 8.125%) |
23. | RECONCILIATION OF LOSS BEFORE INCOME TAX TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Loss before income tax | (11,609,320 | ) | (4,728,961 | ) |
Depreciation charges | 134,911 | 712,643 |
Goodwill impairment | 3,610,946 | 1,132,120 |
- | 1,934,924 |
Finance costs | 5,765,274 | 2,816,535 |
Finance income | (2,026,144 | ) | (1,641,818 | ) |
(4,124,333 | ) | 225,443 |
Increase in trade and other receivables | (27,594,126 | ) | (32,676,596 | ) |
Increase in trade and other payables | 28,114,757 | 44,209,640 |
Cash generated from operations | (3,603,702 | ) | 11,758,487 |
SIRVA Relocation Holdings Limited (Registered number: 02772788) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
24. | 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 | 12,223,207 | 19,682,630 |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 19,682,630 | 3,173,846 |
25. | CHANGE IN ULTIMATE PARENT COMPANY |
Subsequent to year-end, on 20 August 2024, the Company's intermediate parent company, SIRVA Worldwide, Inc., completed a debt restructuring transaction with its lenders and equity sponsors. Through this transaction, the Company is under a new ownership group led by certain credit funds and accounts managed by KKR Credit Advisors (US) LLC, Evolution Credit Partners, BlackRock Financial Management, Inc. and affiliates thereof, and Indaba Capital Management, L.P.. As a result, the Company's ultimate parent company is considered to be SIRVA Holdings LLC, a corporation domiciled in the United States. |