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REGISTERED NUMBER: 12111382 (England and Wales)















Group Strategic Report, Report of the Directors and

Consolidated Financial Statements for the Year Ended 30 November 2023

for

Family Connect (Holdings) Limited

Family Connect (Holdings) Limited (Registered number: 12111382)






Contents of the Consolidated Financial Statements
for the Year Ended 30 November 2023




Page

Company Information 1

Group Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 4

Consolidated Statement of Comprehensive Income 7

Consolidated Balance Sheet 8

Company Balance Sheet 9

Consolidated Statement of Changes in Equity 10

Company Statement of Changes in Equity 11

Consolidated Cash Flow Statement 12

Notes to the Consolidated Cash Flow Statement 13

Notes to the Consolidated Financial Statements 14


Family Connect (Holdings) Limited

Company Information
for the Year Ended 30 November 2023







DIRECTORS: M Family
Miss N Missaghi



REGISTERED OFFICE: West Hill House
Allerton Hill
Chapel Allerton
Leeds
West Yorkshire
LS7 3QB



REGISTERED NUMBER: 12111382 (England and Wales)



SENIOR STATUTORY AUDITOR: Andrew Wilkinson FCA



AUDITORS: Malcolm Jones & Co Limited
Statutory Auditors
Accountants and Business Advisers
West Hill House
Allerton Hill
Chapel Allerton
Leeds
West Yorkshire
LS7 3QB

Family Connect (Holdings) Limited (Registered number: 12111382)

Group Strategic Report
for the Year Ended 30 November 2023

The directors present their strategic report of the company and the group for the year ended 30 November 2023.

REVIEW OF BUSINESS
The group has had a reasonable year with all stores performing well, despite the challenging business environment.

The overall level of commission rose slightly during the year. Commission continues to be earned though deals made in previous years, with the results improving against last year.

In 2022/23, the Shipley store won an award for the best store embracing "new EE", beating off all other stores.

PRINCIPAL RISKS AND UNCERTAINTIES
We consider the group to be well placed financially to deal with many of the uncertainties that lie ahead.

The rate of commission received from EE fell between 2016 and 2019, although it did rise from the end of 2019 through to 2022. Since then, the rate has remained fairly constant.

The level of footfall declined significantly between 2019 and 2020 (by some 17%) due mainly to store closures caused by Covid-19, however since then there continues to be increasing footfall with the level now almost back to pre-Covid levels.

KEY PERFORMANCE INDICATORS
The results of the group show that it is performing reasonably, given the very challenging circumstances. The performance of the stores is still ok, with commission received averaging £1,067k per store (it was just over £1,050k last year).

Margins actually decreased in the year, the increase in commission being more than offset by higher rises in the cost of sales. The overall level of profits are down on last year, but changes to the commission structure in 2024 looks to be resulting in a reasonable increase in profits.

The balance sheet remains strong, although the consolidated position includes a large amount of goodwill and also a relatively large share premium account. There are still sufficient reserves within the group, so that even if there was another downturn of results, the group would be sufficiently well placed to cope with it.

The group takes a close interest in its staff, who are the people dealing with potential customers. Staff are incentivised so the more money they make for the group reflects on them also.

FUTURE DEVELOPMENTS
Given the challenging times the group has been facing, we have been consolidating the stores with a view to increasing the footfall back to the level of previous years. This resulted in the closure of the Castleford store in March 2024 but apart from this, the overall picture is much improved this year with footfall almost back to pre-Covid levels.

A regional commercial manager was hired by the group towards the end of this financial year and they liaise with the store managers to look at all aspects of each store to try to improve efficiency and profitability. The benefits of this were already being seen before the year end, as the group was rated 8 out of 19 EE group franchises in October 2023, having been 17 out of 19 in December 2022.

ON BEHALF OF THE BOARD:





M Family - Director


21 November 2024

Family Connect (Holdings) Limited (Registered number: 12111382)

Report of the Directors
for the Year Ended 30 November 2023

The directors present their report with the financial statements of the company and the group for the year ended 30 November 2023.

DIVIDENDS
An interim dividend of 1,585 per share was paid on 6 April 2023. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 30 November 2023 will be £ 160,085 .

DIRECTORS
The directors shown below have held office during the whole of the period from 1 December 2022 to the date of this report.

M Family
Miss N Missaghi

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

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

- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS
The auditors, Malcolm Jones & Co Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





M Family - Director


21 November 2024

Report of the Independent Auditors to the Members of
Family Connect (Holdings) Limited

Opinion
We have audited the financial statements of Family Connect (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 November 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the group's and of the parent company affairs as at 30 November 2023 and of the group's loss for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

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

Other information
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Family Connect (Holdings) Limited


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

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

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

We obtained an understanding of the legal and regulatory framework within which the group operates, focusing on those laws and regulations that directly effects how material balances are determined and also the disclosures in the financial statements. the laws and regulations considered by us in this context were the Companies Act 2006 and various taxation legislation.

We identified the greatest risks of material impact on the consolidated financial statements from irregularities, including fraud, to be revenue and cost recognition in subsidiary companies. Our audit procedures to respond to revenue and cost recognition risks included sample testing a sample of income/costs across the year to agree to supporting documentation and reviewing income and costs either side of the year end to ensure they have been recognised correctly in each subsidiary.

Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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
Family Connect (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.




Andrew Wilkinson FCA (Senior Statutory Auditor)
for and on behalf of Malcolm Jones & Co Limited
Statutory Auditors
Accountants and Business Advisers
West Hill House
Allerton Hill
Chapel Allerton
Leeds
West Yorkshire
LS7 3QB

21 November 2024

Family Connect (Holdings) Limited (Registered number: 12111382)

Consolidated
Statement of Comprehensive
Income
for the Year Ended 30 November 2023

30.11.23 30.11.22
Notes £    £   

TURNOVER 12,090,604 11,709,157

Cost of sales 10,612,689 9,949,555
GROSS PROFIT 1,477,915 1,759,602

Administrative expenses 1,538,694 1,545,931
(60,779 ) 213,671

Other operating income 7,899 19,803
OPERATING (LOSS)/PROFIT 4 (52,880 ) 233,474

Interest receivable and similar income 957 972
(51,923 ) 234,446

Interest payable and similar expenses 5 6,845 2,845
(LOSS)/PROFIT BEFORE TAXATION (58,768 ) 231,601

Tax on (loss)/profit 6 109,636 149,815
(LOSS)/PROFIT FOR THE FINANCIAL
YEAR

(168,404

)

81,786

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

(168,404

)

81,786

(Loss)/profit attributable to:
Owners of the parent (168,404 ) 81,786

Total comprehensive income attributable to:
Owners of the parent (168,404 ) 81,786

Family Connect (Holdings) Limited (Registered number: 12111382)

Consolidated Balance Sheet
30 November 2023

30.11.23 30.11.22
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 9 3,029,860 3,539,756
Tangible assets 10 238,027 198,746
Investments 11 - -
3,267,887 3,738,502

CURRENT ASSETS
Stocks 12 252,111 240,017
Debtors 13 786,014 689,255
Cash at bank and in hand 1,189,236 1,057,281
2,227,361 1,986,553
CREDITORS
Amounts falling due within one year 14 1,362,279 1,343,237
NET CURRENT ASSETS 865,082 643,316
TOTAL ASSETS LESS CURRENT
LIABILITIES

4,132,969

4,381,818

CREDITORS
Amounts falling due after more than one
year

15

(120,058

)

(51,483

)

PROVISIONS FOR LIABILITIES 17 (54,971 ) (43,906 )
NET ASSETS 3,957,940 4,286,429

CAPITAL AND RESERVES
Called up share capital 18 101 101
Share premium 19 3,849,999 3,849,999
Retained earnings 19 107,840 436,329
SHAREHOLDERS' FUNDS 3,957,940 4,286,429

The financial statements were approved by the Board of Directors and authorised for issue on 21 November 2024 and were signed on its behalf by:





M Family - Director


Family Connect (Holdings) Limited (Registered number: 12111382)

Company Balance Sheet
30 November 2023

30.11.23 30.11.22
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 9 - -
Tangible assets 10 - -
Investments 11 5,900,000 7,700,000
5,900,000 7,700,000

CURRENT ASSETS
Debtors 13 100 100

CREDITORS
Amounts falling due within one year 14 1,378,715 1,713,575
NET CURRENT LIABILITIES (1,378,615 ) (1,713,475 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

4,521,385

5,986,525

CAPITAL AND RESERVES
Called up share capital 18 101 101
Share premium 19 3,849,999 3,849,999
Retained earnings 19 671,285 2,136,425
SHAREHOLDERS' FUNDS 4,521,385 5,986,525

Company's (loss)/profit for the financial year (1,305,055 ) 494,939

The financial statements were approved by the Board of Directors and authorised for issue on 21 November 2024 and were signed on its behalf by:





M Family - Director


Family Connect (Holdings) Limited (Registered number: 12111382)

Consolidated Statement of Changes in Equity
for the Year Ended 30 November 2023

Called up
share Retained Share Total
capital earnings premium equity
£    £    £    £   
Balance at 1 December 2021 101 522,506 3,849,999 4,372,606

Changes in equity
Dividends - (167,963 ) - (167,963 )
Total comprehensive income - 81,786 - 81,786
Balance at 30 November 2022 101 436,329 3,849,999 4,286,429

Changes in equity
Dividends - (160,085 ) - (160,085 )
Total comprehensive income - (168,404 ) - (168,404 )
Balance at 30 November 2023 101 107,840 3,849,999 3,957,940

Family Connect (Holdings) Limited (Registered number: 12111382)

Company Statement of Changes in Equity
for the Year Ended 30 November 2023

Called up
share Retained Share Total
capital earnings premium equity
£    £    £    £   
Balance at 1 December 2021 101 1,809,449 3,849,999 5,659,549

Changes in equity
Dividends - (167,963 ) - (167,963 )
Total comprehensive income - 494,939 - 494,939
Balance at 30 November 2022 101 2,136,425 3,849,999 5,986,525

Changes in equity
Dividends - (160,085 ) - (160,085 )
Total comprehensive income - (1,305,055 ) - (1,305,055 )
Balance at 30 November 2023 101 671,285 3,849,999 4,521,385

Family Connect (Holdings) Limited (Registered number: 12111382)

Consolidated Cash Flow Statement
for the Year Ended 30 November 2023

30.11.23 30.11.22
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 528,903 689,979
Interest paid - (72 )
Interest element of hire purchase payments
paid

(6,845

)

(2,773

)
Tax paid (119,251 ) 22,270
Net cash from operating activities 402,807 709,404

Cash flows from investing activities
Purchase of intangible fixed assets (35,696 ) (69,311 )
Purchase of tangible fixed assets (40,000 ) (105,521 )
Sale of tangible fixed assets - 21,500
Interest received 957 972
Net cash from investing activities (74,739 ) (152,360 )

Cash flows from financing activities
Loan repayments in year - (498,000 )
Capital repayments in year (9,338 ) (3,233 )
Amount introduced by directors 160,085 167,963
Amount withdrawn by directors (186,775 ) (188,960 )
Equity dividends paid (160,085 ) (167,963 )
Net cash from financing activities (196,113 ) (690,193 )

Increase/(decrease) in cash and cash equivalents 131,955 (133,149 )
Cash and cash equivalents at beginning of
year

2

1,057,281

1,190,430

Cash and cash equivalents at end of year 2 1,189,236 1,057,281

Family Connect (Holdings) Limited (Registered number: 12111382)

Notes to the Consolidated Cash Flow Statement
for the Year Ended 30 November 2023

1. RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
30.11.23 30.11.22
£    £   
(Loss)/profit before taxation (58,768 ) 231,601
Depreciation charges 634,001 606,402
Profit on disposal of fixed assets - (875 )
Finance costs 6,845 2,845
Finance income (957 ) (972 )
581,121 839,001
(Increase)/decrease in stocks (12,094 ) 41,375
Increase in trade and other debtors (70,069 ) (46,392 )
Increase/(decrease) in trade and other creditors 29,945 (144,005 )
Cash generated from operations 528,903 689,979

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 30 November 2023
30.11.23 1.12.22
£    £   
Cash and cash equivalents 1,189,236 1,057,281
Year ended 30 November 2022
30.11.22 1.12.21
£    £   
Cash and cash equivalents 1,057,281 1,190,430


3. ANALYSIS OF CHANGES IN NET FUNDS

Other
non-cash
At 1.12.22 Cash flow changes At 30.11.23
£    £    £    £   
Net cash
Cash at bank
and in hand 1,057,281 131,955 1,189,236
1,057,281 131,955 1,189,236
Debt
Finance leases (57,266 ) 9,338 (87,690 ) (135,618 )
(57,266 ) 9,338 (87,690 ) (135,618 )
Total 1,000,015 141,293 (87,690 ) 1,053,618

Family Connect (Holdings) Limited (Registered number: 12111382)

Notes to the Consolidated Financial Statements
for the Year Ended 30 November 2023

1. STATUTORY INFORMATION

Family Connect (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.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Basis of consolidation
The consolidated financial statements incorporate those of Family Connect (Holdings) Limited and all of its subsidiaries (i.e. entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits).

All financial statements are made up to 30 November 2022. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used in line with those used by other members of the group.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added tax. Turnover includes revenue earned from the sale of goods and from the rendering of services. It is reduced for estimated customer returns, rebates and other similar allowances.

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually the point that the customer has signed for the delivery of the goods.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 2019, is being amortised evenly over its estimated useful life of ten years.

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.

Patents and licences are being amortised evenly over their estimated useful life of five years.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Short leasehold - 20% on cost
Fixtures and fittings - 25% on cost and 20% on cost
Motor vehicles - 25% on cost
Computer equipment - 33% on cost

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

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

Family Connect (Holdings) Limited (Registered number: 12111382)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 30 November 2023

2. ACCOUNTING POLICIES - continued

Financial instruments
Basic financial assets, including trade receivables, cash and bank balances, are initially recognised at transaction price and are subsequently assessed for indicators of impairment at each reporting end date. If an asset is impaired, the impairment loss, which is the difference between the carrying amount and the net present value of the estimated discounted cash flows, is recognised in the profit and loss account.

Basic financial liabilities, including trade payables, are initially recognised at transaction price and subsequently measured at amortised cost using the effective interest method. Where these have been acquired in the ordinary course of business from suppliers and where payment is due within one year, then they are classified as current liabilities.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Pension costs and other post-retirement benefits
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

Investments in subsidiaries
Investments in subsidiaries in the books of the holding company are stated at cost less provision for permanent diminution in value.

Family Connect (Holdings) Limited (Registered number: 12111382)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 30 November 2023

3. EMPLOYEES AND DIRECTORS
30.11.23 30.11.22
£    £   
Wages and salaries 1,549,517 1,491,107
Social security costs 117,101 120,967
Other pension costs 25,699 25,911
1,692,317 1,637,985

The average number of employees during the year was as follows:
30.11.23 30.11.22

Directors 2 2
Direct 72 69
Administrative 2 2
76 73

30.11.23 30.11.22
£    £   
Directors' remuneration 24,508 20,655
Directors' pension contributions to money purchase schemes 113 113

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 1 1

4. OPERATING (LOSS)/PROFIT

The operating loss (2022 - operating profit) is stated after charging/(crediting):

30.11.23 30.11.22
£    £   
Depreciation - owned assets 51,961 51,755
Depreciation - assets on hire purchase contracts 36,448 15,365
Profit on disposal of fixed assets - (875 )
Goodwill amortisation 504,592 504,592
Patents and licences amortisation 41,000 34,690
Auditors' remuneration 19,088 18,330
Property operating lease rentals 387,855 370,103
Non-audit services provided by the auditor 27,505 20,030

5. INTEREST PAYABLE AND SIMILAR EXPENSES
30.11.23 30.11.22
£    £   
Bank interest - 18
Interest on overdue tax paid - 54
Hire purchase 6,845 2,773
6,845 2,845

Family Connect (Holdings) Limited (Registered number: 12111382)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 30 November 2023

6. TAXATION

Analysis of the tax charge
The tax charge on the loss for the year was as follows:
30.11.23 30.11.22
£    £   
Current tax:
UK corporation tax 98,570 119,252

Deferred tax 11,066 30,563
Tax on (loss)/profit 109,636 149,815

UK corporation tax has been charged at 25 % (2022 - 19 %).

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

30.11.23 30.11.22
£    £   
(Loss)/profit before tax (58,768 ) 231,601
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of
25 % (2022 - 19 %)

(14,692

)

44,004

Effects of:
Expenses not deductible for tax purposes 126,148 96,062
Capital allowances in excess of depreciation - (790 )
Depreciation in excess of capital allowances 6,700 -
Change in rate of deferred tax - 10,539
Change in rate of corporation tax (8,520 ) -
Total tax charge 109,636 149,815

7. INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME

As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements.


8. DIVIDENDS
30.11.23 30.11.22
£    £   
Ordinary shares of £1 each
Interim 160,085 167,963

Family Connect (Holdings) Limited (Registered number: 12111382)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 30 November 2023

9. INTANGIBLE FIXED ASSETS

Group
Patents
and
Goodwill licences Totals
£    £    £   
COST
At 1 December 2022 5,045,923 237,948 5,283,871
Additions - 35,696 35,696
At 30 November 2023 5,045,923 273,644 5,319,567
AMORTISATION
At 1 December 2022 1,597,875 146,240 1,744,115
Amortisation for year 504,592 41,000 545,592
At 30 November 2023 2,102,467 187,240 2,289,707
NET BOOK VALUE
At 30 November 2023 2,943,456 86,404 3,029,860
At 30 November 2022 3,448,048 91,708 3,539,756

10. TANGIBLE FIXED ASSETS

Group
Fixtures
Short and Motor Computer
leasehold fittings vehicles equipment Totals
£    £    £    £    £   
COST
At 1 December 2022 545,473 448,491 81,944 21,334 1,097,242
Additions - - 127,690 - 127,690
At 30 November 2023 545,473 448,491 209,634 21,334 1,224,932
DEPRECIATION
At 1 December 2022 515,318 349,291 15,365 18,522 898,496
Charge for year 20,705 30,062 36,448 1,194 88,409
At 30 November 2023 536,023 379,353 51,813 19,716 986,905
NET BOOK VALUE
At 30 November 2023 9,450 69,138 157,821 1,618 238,027
At 30 November 2022 30,155 99,200 66,579 2,812 198,746

Family Connect (Holdings) Limited (Registered number: 12111382)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 30 November 2023

10. TANGIBLE FIXED ASSETS - continued

Group

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Motor
vehicles
£   
COST
At 1 December 2022 81,944
Additions 127,690
At 30 November 2023 209,634
DEPRECIATION
At 1 December 2022 15,365
Charge for year 36,448
At 30 November 2023 51,813
NET BOOK VALUE
At 30 November 2023 157,821
At 30 November 2022 66,579

11. FIXED ASSET INVESTMENTS

Company
Shares in
group
undertakings
£   
COST
At 1 December 2022
and 30 November 2023 9,528,445
PROVISIONS
At 1 December 2022 1,828,445
Provision for year 1,800,000
At 30 November 2023 3,628,445
NET BOOK VALUE
At 30 November 2023 5,900,000
At 30 November 2022 7,700,000

Family Connect (Holdings) Limited (Registered number: 12111382)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 30 November 2023

11. FIXED ASSET INVESTMENTS - continued

The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiaries

Family Connect Limited
Registered office: 6 Sheep Street, Skipton, North Yorkshire, BD23 1JH
Nature of business: Mobile telephone franchise
%
Class of shares: holding
Ordinary 100.00

Premier Communications Limited
Registered office: 6 Sheep Street, Skipton, North Yorkshire, BD23 1JH
Nature of business: Mobile telephone franchise
%
Class of shares: holding
Ordinary 100.00


The shares in Premier Communications Limited are held by Family Connect Limited.

12. STOCKS

Group
30.11.23 30.11.22
£    £   
Stocks 252,111 240,017

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
30.11.23 30.11.22 30.11.23 30.11.22
£    £    £    £   
Trade debtors 585,930 511,116 - -
Other debtors 8,098 2,067 100 100
Directors' current accounts 57,741 31,051 - -
Prepayments 134,245 145,021 - -
786,014 689,255 100 100

Family Connect (Holdings) Limited (Registered number: 12111382)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 30 November 2023

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
30.11.23 30.11.22 30.11.23 30.11.22
£    £    £    £   
Hire purchase contracts (see note 16) 15,560 5,783 - -
Trade creditors 723,883 701,469 - -
Corporation tax 98,574 119,255 - -
Social security and other taxes 452,194 440,382 - -
Other creditors 5,377 5,437 - -
Due to subsidiary company - - 1,371,252 1,701,252
Accrued expenses 66,691 70,911 7,463 12,323
1,362,279 1,343,237 1,378,715 1,713,575

15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR

Group
30.11.23 30.11.22
£    £   
Hire purchase contracts (see note 16) 120,058 51,483

16. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group
Hire purchase contracts
30.11.23 30.11.22
£    £   
Gross obligations repayable:
Within one year 23,472 9,007
Between one and five years 127,285 54,645
150,757 63,652

Finance charges repayable:
Within one year 7,912 3,224
Between one and five years 7,227 3,162
15,139 6,386

Net obligations repayable:
Within one year 15,560 5,783
Between one and five years 120,058 51,483
135,618 57,266

Family Connect (Holdings) Limited (Registered number: 12111382)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 30 November 2023

16. LEASING AGREEMENTS - continued

Group
Non-cancellable operating leases
30.11.23 30.11.22
£    £   
Within one year 215,296 160,400
Between one and five years 471,946 237,340
In more than five years 32,583 -
719,825 397,740

17. PROVISIONS FOR LIABILITIES

Group
30.11.23 30.11.22
£    £   
Deferred tax 54,971 43,906

Group
Deferred
tax
£   
Balance at 1 December 2022 43,906
Charge to Statement of Comprehensive Income during year 11,065
Balance at 30 November 2023 54,971

18. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 30.11.23 30.11.22
value: £    £   
101 Ordinary £1 101 101

19. RESERVES

Group
Retained Share
earnings premium Totals
£    £    £   

At 1 December 2022 436,329 3,849,999 4,286,328
Deficit for the year (168,404 ) (168,404 )
Dividends (160,085 ) (160,085 )
At 30 November 2023 107,840 3,849,999 3,957,839

Family Connect (Holdings) Limited (Registered number: 12111382)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 30 November 2023

19. RESERVES - continued

Company
Retained Share
earnings premium Totals
£    £    £   

At 1 December 2022 2,136,425 3,849,999 5,986,424
Deficit for the year (1,305,055 ) (1,305,055 )
Dividends (160,085 ) (160,085 )
At 30 November 2023 671,285 3,849,999 4,521,284


20. CAPITAL COMMITMENTS
30.11.23 30.11.22
£    £   
Contracted but not provided for in the
financial statements - 39,000

21. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 30 November 2023 and 30 November 2022:

30.11.23 30.11.22
£    £   
M Family
Balance outstanding at start of year 30,051 10,054
Amounts advanced 57,741 30,051
Amounts repaid (30,051 ) (10,054 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 57,741 30,051

22. RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

23. ULTIMATE CONTROLLING PARTY

M Family is the ultimate controlling party.