REGISTERED NUMBER: 06971724 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 31 March 2024 |
for |
NIC Group Limited |
REGISTERED NUMBER: 06971724 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 31 March 2024 |
for |
NIC Group Limited |
NIC Group Limited (Registered number: 06971724) |
Contents of the Consolidated Financial Statements |
for the Year Ended 31 March 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Consolidated Profit and Loss Account | 8 |
Consolidated Balance Sheet | 9 |
Company Balance Sheet | 10 |
Consolidated Statement of Changes in Equity | 11 |
Company Statement of Changes in Equity | 12 |
Consolidated Cash Flow Statement | 13 |
Notes to the Consolidated Financial Statements | 14 |
NIC Group Limited |
Company Information |
for the Year Ended 31 March 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors |
Chartered Accountants |
The Mills |
Canal Street |
Derby |
DE1 2RJ |
NIC Group Limited (Registered number: 06971724) |
Group Strategic Report |
for the Year Ended 31 March 2024 |
The directors present their strategic report of the company and the group for the year ended 31 March 2024. |
REVIEW OF BUSINESS |
The group comprises the holding company NIC Group Limited and the four trading subsidiaries M.S.M. Hygiene Limited, City Hygiene Services Limited, Nottingham Industrial Cleaners Limited and Drainscan Limited. |
The group's overall position has remained consistent with the results in the previous year, with turnover increasing by 0.7% to £12.74 million (2023: £12.65 million). The overall margins have increased to 25.5% from 25.3%. The consolidated balance sheet position remains strong which the directors consider will remain so in the foreseeable future. |
M.S.M. Hygiene Limited has seen sales fall by 16.5% (2023: increase of 15.5%) due to the impact of some lost customers. Despite this, the company's gross profit margins have increased to 26.7% (2023: 23.5%). |
City Hygiene Services Limited has seen an increase in its sales of 6.0% (2023: increase of 4.2%). There have been minimal changes in customer terms during the year and customers are long standing. The company's gross profit margins have decreased from 30.7% to 30.2%. |
Nottingham Industrial Cleaners Limited sales have increased by 7.7% (2023: increase of 3.2%). The gross profit margins have decreased from 22.9% to 21.3%. |
Drainscan Limited has experienced an increase in sales of 25.1% (2023: decrease of 11.7%). The company's gross profit margins have increased from 49.8% to 54.2%. |
PRINCIPAL RISKS AND UNCERTAINTIES |
Current risks and uncertainties remain the same for the subsidiaries, in terms of retaining market share and improving margins to cover overheads. The directors will continue to monitor the profitability and infrastructure of the business streams within the group and apply changes where deemed appropriate. |
The directors hope to recover continued increases to wages costs from their customers, which are anticipated as a result of the further increase in the National Living Wage from 1 April 2024, to help maintain their margins. |
KEY PERFORMANCE INDICATORS |
Performance is measured by gross profit margins, product turnover, market requests and trends plus comparison with competitors. Performance is also measured through the review of the monthly management accounts. Gross profit, turnover and costs are reviewed on a monthly basis by the directors to consider the group's position. Monthly budgets are reviewed against actual for any unknown fluctuations in the figures. |
ON BEHALF OF THE BOARD: |
NIC Group Limited (Registered number: 06971724) |
Report of the Directors |
for the Year Ended 31 March 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 31 March 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of office and factory cleaning, retailers of janitorial supplies, feminine hygiene and other washroom services, drain and sewer cleaning and closed circuit television survey services. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 March 2024. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2023 to the date of this report. |
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT |
The group's financial assets and liabilities consist of trade debtors and creditors, cash balances and overdrafts. |
The directors manage the group's exposure to financial risk by researching the credit worthiness of customers and by seeking advice from the group's providers of finance and its other external financial advisers. |
The group does not trade in foreign currencies. |
The group does not trade speculatively in derivatives or similar instruments. |
EMPLOYMENT POLICIES |
Within the bounds of confidentiality, staff at all levels are kept fully informed of matters that affect the progress of the group and are of interest to them as employees. |
Disabled persons are given full and fair consideration for all types of vacancy. If an existing employee becomes disabled, such steps as are practical and reasonable are taken to retain him/her in employment. Where appropriate, assistance with rehabilitation and suitable training are given. Disabled persons have equal opportunities for training, career development and promotion, except insofar as such opportunities are constrained by the practical limitations of their disability. |
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. |
NIC Group Limited (Registered number: 06971724) |
Report of the Directors |
for the Year Ended 31 March 2024 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES - continued |
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. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
NIC Group Limited |
Opinion |
We have audited the financial statements of NIC Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the Consolidated Profit and Loss Account, 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 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 31 March 2024 and of the group's profit 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 |
NIC Group 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 pages three and 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. |
Based on our understanding of the company and industry in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to the cleaning industry and we considered the extent to which non-compliance might have a material effect on the financial statements. 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. Audit procedures performed by the engagement team included. |
- | Enquiry of management around actual and potential litigation and claims; |
- | Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; |
- | Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias. |
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
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 |
NIC Group 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 |
Chartered Accountants |
The Mills |
Canal Street |
Derby |
DE1 2RJ |
NIC Group Limited (Registered number: 06971724) |
Consolidated |
Profit and Loss Account |
for the Year Ended 31 March 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 12,742,187 | 12,654,677 |
Cost of sales | 9,492,748 | 9,455,895 |
GROSS PROFIT | 3,249,439 | 3,198,782 |
Administrative expenses | 3,003,162 | 2,917,858 |
OPERATING PROFIT | 5 | 246,277 | 280,924 |
Interest receivable and similar income | 818 | - |
PROFIT BEFORE TAXATION | 247,095 | 280,924 |
Tax on profit | 6 | 76,011 | 68,792 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
171,084 |
212,132 |
Profit attributable to: |
Owners of the parent | 171,084 | 212,132 |
Total comprehensive income attributable to: |
Owners of the parent | 171,084 | 212,132 |
NIC Group Limited (Registered number: 06971724) |
Consolidated Balance Sheet |
31 March 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 8 | - | 37,092 |
Tangible assets | 9 | 2,297,878 | 2,187,358 |
Investments | 10 | - | - |
2,297,878 | 2,224,450 |
CURRENT ASSETS |
Stocks | 11 | 275,443 | 291,268 |
Debtors | 12 | 2,025,350 | 1,785,576 |
Cash at bank and in hand | 1,559,359 | 1,583,679 |
3,860,152 | 3,660,523 |
CREDITORS |
Amounts falling due within one year | 13 | 2,467,939 | 2,359,055 |
NET CURRENT ASSETS | 1,392,213 | 1,301,468 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
3,690,091 |
3,525,918 |
PROVISIONS FOR LIABILITIES | 14 | 33,040 | 39,951 |
NET ASSETS | 3,657,051 | 3,485,967 |
CAPITAL AND RESERVES |
Called up share capital | 15 | 6,051 | 6,051 |
Retained earnings | 16 | 3,651,000 | 3,479,916 |
SHAREHOLDERS' FUNDS | 3,657,051 | 3,485,967 |
The financial statements were approved by the Board of Directors and authorised for issue on 17 October 2024 and were signed on its behalf by: |
A Barge - Director |
NIC Group Limited (Registered number: 06971724) |
Company Balance Sheet |
31 March 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 8 |
Tangible assets | 9 |
Investments | 10 |
CURRENT ASSETS |
Debtors | 12 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 15 |
Retained earnings |
SHAREHOLDERS' FUNDS |
Company's loss for the financial year | (10,028 | ) | - |
The financial statements were approved by the Board of Directors and authorised for issue on |
NIC Group Limited (Registered number: 06971724) |
Consolidated Statement of Changes in Equity |
for the Year Ended 31 March 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 April 2022 | 6,051 | 3,267,784 | 3,273,835 |
Changes in equity |
Total comprehensive income | - | 212,132 | 212,132 |
Balance at 31 March 2023 | 6,051 | 3,479,916 | 3,485,967 |
Changes in equity |
Total comprehensive income | - | 171,084 | 171,084 |
Balance at 31 March 2024 | 6,051 | 3,651,000 | 3,657,051 |
NIC Group Limited (Registered number: 06971724) |
Company Statement of Changes in Equity |
for the Year Ended 31 March 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 April 2022 |
Changes in equity |
Balance at 31 March 2023 |
Changes in equity |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31 March 2024 |
NIC Group Limited (Registered number: 06971724) |
Consolidated Cash Flow Statement |
for the Year Ended 31 March 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 20 | 445,071 | 904,214 |
Tax paid | (35,818 | ) | (107,540 | ) |
Net cash from operating activities | 409,253 | 796,674 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (690,668 | ) | (588,295 | ) |
Sale of tangible fixed assets | 243,952 | 147,052 |
Interest received | 818 | - |
Net cash from investing activities | (445,898 | ) | (441,243 | ) |
Cash flows from financing activities |
Amount introduced by directors | 222,853 | - |
Amount withdrawn by directors | (210,528 | ) | (6,005 | ) |
Net cash from financing activities | 12,325 | (6,005 | ) |
(Decrease)/increase in cash and cash equivalents | (24,320 | ) | 349,426 |
Cash and cash equivalents at beginning of year |
21 |
1,583,679 |
1,234,253 |
Cash and cash equivalents at end of year |
21 |
1,559,359 |
1,583,679 |
NIC Group Limited (Registered number: 06971724) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31 March 2024 |
1. | STATUTORY INFORMATION |
NIC Group Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The consolidated accounts incorporate the accounts of NIC Group Limited and all of its subsidiary undertakings. The acquisition method of accounting has been adopted. |
Goodwill arising on the acquisition of a business is the difference between the fair value of the consideration paid and the fair value of the assets and liabilities acquired. Goodwill arising on consolidation has been capitalised and is being written off to the profit and loss account evenly over its useful economic life of 6 years. |
In the company's financial statements, investments in subsidiary undertakings are stated at cost less amounts written off. |
Turnover |
Turnover represents net invoiced sales of goods and services, excluding value added tax. Turnover is recognised when the group has transferred the significant risks and rewards of ownership to the buyer and it is probable that the group will receive the agreed upon payment. Turnover relating to the provision of services is accounted for in the year in which the services are provided. |
Tangible fixed assets |
Tangible fixed assets are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life: |
Long leasehold | 2% on cost |
Plant and machinery | 15 - 20% reducing balance and 25% on cost |
Fixtures and fittings | 15 - 20% reducing balance and 25% on cost |
Motor vehicles | 25% on cost |
Computer equipment | 25% on cost |
Land included within long leasehold property is not depreciated. |
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. |
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised within 'administrative expenses' in the profit and loss account. |
NIC Group Limited (Registered number: 06971724) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
2. | ACCOUNTING POLICIES - continued |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Cost is based on the purchase invoice price on a first in first out basis. |
Net realisable value is based on the estimated selling price less further costs expected to be incurred to completion and disposal. |
At each reporting date, stock is assessed for impairment. If stock is impaired, the carrying amount is reduced and the impairment loss is recognised immediately in the profit and loss account. |
Deferred tax |
Deferred tax arises from timing differences between taxable total profits and total comprehensive income as stated in the financial statements. These timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements. |
A deferred tax asset is recognised only when it is more likely than not that there will be suitable taxable profits from which the future reversal of underlying timing differences and losses can be deducted. |
Provision is made at current rates for taxation deferred in respect of all material timing differences. |
Leasing commitments |
Rentals paid under operating leases are charged to the profit and loss account as incurred on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the group pays fixed contributions into a separate entity. Once the contributions have been paid the group has no further payment obligations. The contributions are recognised as an expense when they fall due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the group in independently administered funds. |
Fixed asset investments |
Fixed asset investments are stated at the lower of cost or net realisable value as it comprises its investment in its subsidiary undertakings. |
NIC Group Limited (Registered number: 06971724) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
2. | ACCOUNTING POLICIES - continued |
Judgements in applying accounting policies and key source of estimation |
In the application of the group's accounting policies the directors are required to make judgement estimates and assumptions about the carrying amounts of the group's assets and liabilities. These are based on historical experience and other factors that are considered relevant and are reviewed on a regular basis and recognised in the period in which the estimate is revised. Actual results may differ from these estimates. |
The following are the critical judgements and where relevant the key sources of estimation uncertainty: |
Tangible fixed assets are depreciated over their useful economic lives taking in to account their residual values where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing the asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken in to account. Residual values consider such things as future market conditions, the remaining life of the asset and projected disposal values. |
The carrying value of fixed asset investments and goodwill is assessed annually and reviewed for any indications of impairment. |
The recoverability of debtors is assessed on the likelihood and circumstances of the particular cost. |
The value of stock is assessed for impairment. In re-assessing the stock value, factors such as slow movement and obsolescence are taken in to account. |
3. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 7,866,230 | 7,304,068 |
Social security costs | 511,840 | 473,391 |
Other pension costs | 172,977 | 159,177 |
8,551,047 | 7,936,636 |
The average number of employees during the year was as follows: |
2024 | 2023 |
Management and administration | 29 | 29 |
Operational | 665 | 657 |
4. | DIRECTORS' EMOLUMENTS |
2024 | 2023 |
£ | £ |
Directors' remuneration | 1,110,570 | 1,073,340 |
Directors' pension contributions to money purchase schemes | 39,600 | 39,600 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 1 | 1 |
NIC Group Limited (Registered number: 06971724) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
4. | DIRECTORS' EMOLUMENTS - continued |
Information regarding the highest paid director is as follows: |
2024 | 2023 |
£ | £ |
Emoluments etc | 793,037 | 773,658 |
Pension contributions to money purchase schemes | 39,600 | 39,600 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Operating lease payments | 44,282 | 28,986 |
Depreciation - owned assets | 395,682 | 323,156 |
Profit on disposal of fixed assets | (59,486 | ) | (38,746 | ) |
Goodwill amortisation | 37,092 | 37,092 |
Auditors' remuneration | 29,888 | 28,074 |
Auditors' remuneration for non audit work | 12,224 | 10,668 |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax | 83,000 | 39,500 |
Adjustments re prior year | (78 | ) | 540 |
Total current tax | 82,922 | 40,040 |
Deferred tax | (6,911 | ) | 28,752 |
Tax on profit | 76,011 | 68,792 |
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: |
2024 | 2023 |
£ | £ |
Profit before tax | 247,095 | 280,924 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 19 %) |
61,774 |
53,376 |
Effects of: |
Expenses not deductible for tax purposes | 14,315 | 14,876 |
Adjustments to tax charge in respect of previous periods | (78 | ) | 540 |
Total tax charge | 76,011 | 68,792 |
NIC Group Limited (Registered number: 06971724) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
7. | INDIVIDUAL PROFIT AND LOSS ACCOUNT |
As permitted by Section 408 of the Companies Act 2006, the Profit and Loss Account of the parent company is not presented as part of these financial statements. |
8. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 April 2023 |
and 31 March 2024 | 535,710 |
AMORTISATION |
At 1 April 2023 | 498,618 |
Amortisation for year | 37,092 |
At 31 March 2024 | 535,710 |
NET BOOK VALUE |
At 31 March 2024 | - |
At 31 March 2023 | 37,092 |
9. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Long | Plant and | and |
leasehold | machinery | fittings |
£ | £ | £ |
COST |
At 1 April 2023 | 1,400,000 | 168,520 | 80,121 |
Additions | - | - | 16,250 |
Disposals | - | - | - |
At 31 March 2024 | 1,400,000 | 168,520 | 96,371 |
DEPRECIATION |
At 1 April 2023 | 195,318 | 66,689 | 60,399 |
Charge for year | 14,129 | 5,525 | 832 |
Eliminated on disposal | - | - | - |
At 31 March 2024 | 209,447 | 72,214 | 61,231 |
NET BOOK VALUE |
At 31 March 2024 | 1,190,553 | 96,306 | 35,140 |
At 31 March 2023 | 1,204,682 | 101,831 | 19,722 |
NIC Group Limited (Registered number: 06971724) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
9. | TANGIBLE FIXED ASSETS - continued |
Group |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 April 2023 | 1,243,487 | 21,500 | 2,913,628 |
Additions | 674,418 | - | 690,668 |
Disposals | (497,816 | ) | - | (497,816 | ) |
At 31 March 2024 | 1,420,089 | 21,500 | 3,106,480 |
DEPRECIATION |
At 1 April 2023 | 382,425 | 21,439 | 726,270 |
Charge for year | 375,196 | - | 395,682 |
Eliminated on disposal | (313,350 | ) | - | (313,350 | ) |
At 31 March 2024 | 444,271 | 21,439 | 808,602 |
NET BOOK VALUE |
At 31 March 2024 | 975,818 | 61 | 2,297,878 |
At 31 March 2023 | 861,062 | 61 | 2,187,358 |
Included in the cost of long leasehold property is land of £255,023 (2023: £255,023) which is not depreciated. |
Plant and equipment used by the group for leasing activities comprised a cost of £23,793 (2023: £23,793) and accumulated depreciation of £22,165 (2023: £21,799). Depreciation for the year on these assets was £366 (2023: £445). |
10. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 April 2023 |
and 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
NIC Group Limited (Registered number: 06971724) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
10. | FIXED ASSET INVESTMENTS - continued |
Investment in Subsidiary Undertakings |
At the balance sheet date, the company had the following wholly owned subsidiaries:- |
Class of share | Nature of business |
NIC Investments Limited | Ordinary | Dormant |
Nottingham Industrial Cleaners Limited |
Ordinary |
Office & factory cleaners |
M.S.M Hygiene Limited | Ordinary | Distribution of hygiene & safety products |
City Hygiene Services Limited | Ordinary | Servicing & maintenance of washroom facilities |
Drainscan Limited | Ordinary | Drain maintenance & CCTV surveys |
Vacuum Limited | Ordinary | Dormant |
The registered offices of the undertakings are that of the parent. |
11. | STOCKS |
Group |
2024 | 2023 |
£ | £ |
Goods for resale and |
consumables | 275,443 | 291,268 |
275,443 | 291,268 |
12. | DEBTORS |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Amounts falling due within one year: |
Trade debtors | 1,986,840 | 1,724,044 |
Amounts owed by group undertakings | - | - |
Other debtors | 7 | 7 |
Directors' current accounts | 4,781 | 21,064 | - | - |
Tax | 3,013 | 5,122 |
Prepayments | 30,709 | 33,844 |
2,025,350 | 1,784,081 |
Amounts falling due after more than one | year: |
Tax | - | 1,495 |
Aggregate amounts | 2,025,350 | 1,785,576 |
NIC Group Limited (Registered number: 06971724) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Trade creditors | 382,861 | 402,608 |
Amounts owed to group undertakings | - | - |
Amounts owed to related parties | 203,788 | 203,788 | 203,788 | 203,788 |
Tax | 83,000 | 39,500 |
Social security and other taxes | 684,952 | 596,689 |
Other creditors | 74,033 | 72,269 |
Directors' current accounts | 297 | 4,255 | - | - |
Accruals and deferred income | 1,039,008 | 1,039,946 |
2,467,939 | 2,359,055 |
14. | PROVISIONS FOR LIABILITIES |
Group |
2024 | 2023 |
£ | £ |
Deferred tax |
Accelerated capital allowances | 33,040 | 39,951 |
Group |
Deferred |
tax |
£ |
Balance at 1 April 2023 | 39,951 |
Utilised during year | (6,911 | ) |
Balance at 31 March 2024 | 33,040 |
15. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | £1 | 6,051 | 6,051 |
16. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1 April 2023 | 3,479,916 |
Profit for the year | 171,084 |
At 31 March 2024 | 3,651,000 |
NIC Group Limited (Registered number: 06971724) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
16. | RESERVES - continued |
Company |
Retained |
earnings |
£ |
At 1 April 2023 |
Deficit for the year | ( |
) |
At 31 March 2024 |
17. | OTHER FINANCIAL COMMITMENTS |
The parent company has a contingent liability in respect of a composite guarantee given to National Westminster Bank Plc to secure borrowings within the NIC Group Limited group of companies. At the balance sheet date, the net amount of the group liability was £Nil (2023: £Nil). |
18. | RELATED PARTY DISCLOSURES |
The group trades with another group controlled by some of the directors. During the year, the group sold goods to the other group to the value of £60,205 (2023: £41,236). At the balance sheet date £4,470 (2023: £3,836) was owed by the other group in respect of these transactions. |
Included in creditors are loans outstanding of £203,788 (2023: £203,788) owed to the other group. The balances are interest free and repayable on demand. |
19. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is Mr S A Barge. |
20. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation | 247,095 | 280,924 |
Depreciation charges | 432,774 | 360,248 |
Profit on disposal of fixed assets | (59,486 | ) | (38,746 | ) |
Finance income | (818 | ) | - |
619,565 | 602,426 |
Decrease in stocks | 15,825 | 41,214 |
(Increase)/decrease in trade and other debtors | (259,661 | ) | 227,888 |
Increase in trade and other creditors | 69,342 | 32,686 |
Cash generated from operations | 445,071 | 904,214 |
NIC Group Limited (Registered number: 06971724) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
21. | 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 31 March 2024 |
31.3.24 | 1.4.23 |
£ | £ |
Cash and cash equivalents | 1,559,359 | 1,583,679 |
Year ended 31 March 2023 |
31.3.23 | 1.4.22 |
£ | £ |
Cash and cash equivalents | 1,583,679 | 1,234,253 |
22. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.4.23 | Cash flow | At 31.3.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,583,679 | (24,320 | ) | 1,559,359 |
1,583,679 | (24,320 | ) | 1,559,359 |
Total | 1,583,679 | (24,320 | ) | 1,559,359 |
23. | EMPLOYEE BENEFITS |
Included in the notes to the financial statements are payments to the defined contribution pension scheme. |