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 |
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: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: | Andrew Wilkinson FCA |
AUDITORS: |
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: |
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. |
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: |
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. |
for and on behalf of |
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) |
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 |
( |
) |
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 |
CURRENT ASSETS |
Debtors | 13 |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 18 |
Share premium | 19 |
Retained earnings | 19 |
SHAREHOLDERS' FUNDS |
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 |
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 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | - |
Balance at 30 November 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | ( |
) | - | ( |
) |
Balance at 30 November 2023 |
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 |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
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 |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Short leasehold | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
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 |
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 |
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 |
At 30 November 2022 |
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 |
Registered office: 6 Sheep Street, Skipton, North Yorkshire, BD23 1JH |
Nature of business: |
% |
Class of shares: | holding |
Registered office: 6 Sheep Street, Skipton, North Yorkshire, BD23 1JH |
Nature of business: |
% |
Class of shares: | holding |
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 |
Directors' current accounts | 57,741 | 31,051 | - | - |
Prepayments | 134,245 | 145,021 |
786,014 | 689,255 |
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 |
1,362,279 | 1,343,237 |
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: | £ | £ |
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 | 5,986,424 |
Deficit for the year | ( |
) | ( |
) |
Dividends | ( |
) | ( |
) |
At 30 November 2023 | 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. |