Registered number:
FOR THE YEAR ENDED 31 MARCH 2024
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COMMODITY CENTRE (GROUP) LIMITED
COMPANY INFORMATION
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COMMODITY CENTRE (GROUP) LIMITED
CONTENTS
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COMMODITY CENTRE (GROUP) LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
The Group provides dedicated commodity storage and a 4PL service for soft commodities, metals and general cargo. We handle many hundreds of thousands of tonnes of material every year in bonded, state of the art warehouses with supporting accreditations to back the wide range of service offering. We manage the whole supply chain from origin and shipping, through to customs, warehousing and onward distribution.
The Directors consider that the Group has performed in line with expectation achieving a turnover of £35.2m (2023 - £46.0m) and an operating profit of £2.18m (2023 - £3.90m). As expected, this has been a challenging year with volatility in freight costs, increased costs of finance, variable commodity prices with many of our customers adapting to these margin pressures including reducing stock volumes/inventory days. Despite these new challenges the Group has invested in our commercial team to expand our customer base providing a solid position to increase profitability for 2024/25. The Group has maintained its policy of inflationary pay rises to our employees to support with the ongoing cost of living increases.
The Group has a strong year end net asset position totalling £28.1m (2023 - £29.9m) when adding back FRS102 adjustments for deferred tax liability of £5.55m (2023 - £5.56m). The Directors continue to achieve their targets set as part of the Business Strategy including long term investment in new technology/IT systems, creating innovative solutions for our customers, staff training, marketing and branding. Carbon Neutral Status Achieved The Directors are delighted to confirm that the Group’s main warehousing facilities and terminals have been certified as carbon neutral which further evidences our commitment to Corporate and Social Responsibility to maintain growth in a sustainable manner, including protection of the environment, minimising our impact on it, maintaining our belief in strong ethical principles and good stewardship. Further, the Group continues to support several charities including the National Autistic Society as well as supporting other local community groups, schools and charities. The Group is well positioned to face the challenges of the forthcoming financial year, including the challenges faced globally. The Directors are confident that the Group will continue to trade profitably and sustainably in the coming year.
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COMMODITY CENTRE (GROUP) LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
The Directors continually review the business environment to identify any new significant risks to the Group and where appropriate take action to respond to any changes. The Directors have assessed the main risks facing the Group as follows:
Currency risk The Group’s activities expose it to the financial risks of changes in foreign currency exchange rates. However, the Directors do not deem this risk significant in relation to the operations of the group due to predominantly all purchases being made in the same currency as sales and multi-currency borrowing facilities. Interest rate risk The Group finances its operations through a mixture of retained profits, cash, loans and trade creditors. The Directors are of the opinion that associated interest rate risks are monitored and mitigated accordingly. Marketplace risk As the provider of storage, a significant risk is under-utilisation of warehouse space which can be caused by a number of factors. The Directors are of the opinion that the varied customer base, the markets in which they operate, and diverse commodities stored mitigates this risk. The Group also has a balanced portfolio of owned and leased warehouses. Operational risk The Group’s activities exposes it to two main operational risks, inefficiency and errors. Whilst the success of the Group would not be possible without the passion and commitment of its staff; the risks of inefficiency and errors are mitigated through clear procedures and a robust control environment. These procedures and controls are designed to limit the possibility of human error. Additional controls are in place at each point where human error is possible with full traceability and accountability. Liquidity and cash flow risk The Group requires large working capital including the funding of work in progress. The Group manages the liquidity risk and cash flow risk by arranging sufficient working capital finance facilities which are in place to enable the Group to meet liabilities as they fall due. Credit risk The Group’s principal financial assets are cash, trade receivables and other receivables. The Group’s credit risk is primarily attributable to its trade receivables. This risk is mitigated by using strict credit control procedures, the imposition of appropriate credit limits and obtaining third party references. The warehousing trading terms include lien arrangements secured against goods in store, so risk is further reduced.
The business maintains a strong management information function which is focussed on regular and accurate reporting. The Directors consider the following to be the key performance indicators of the Group:
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COMMODITY CENTRE (GROUP) LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
The Directors consider warehouse utilisation, volume of cargo handled and staff headcount to be key non-financial performance indicators.
The Directors consider that they have fulfilled their individual and collective duty under section 172(1) of the Companies Act 2006 to act in the way they consider, in good faith, would be most likely to promote the success of the Group for the benefit of shareholders. Whilst considering our expansion strategies during the year, we continue to always consider their likely implications for our Group’s employees, suppliers, and relationships with our customers. Our decisions have always been based on ensuring a positive impact on our stakeholders, as well as on the Group’s reputation throughout the community we operate in, and the environment.
This report was approved by the board and signed on its behalf.
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COMMODITY CENTRE (GROUP) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
The Directors present their report and the financial statements for the year ended 31 March 2024.
The Directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Group's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to 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.
The profit before tax for the year, amounted to £435,809 (2023 - £2,394,953).
An interim dividend of £700,000 was declared on 20 December 2023. No final dividend was recommended at 31 March 2024 (2023 - £Nil).
The Directors who served during the year were:
The Directors will continue to seek opportunities to expand the business whether from internal or external sources.
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COMMODITY CENTRE (GROUP) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
Reporting methodolgy
Reporting has taken into account all activities undertaken at our site in Great Braxted, Essex, where the Group has full financial control. The reporting timescale is from April 2023 to March 2024, in line with the Group's financial year. All emissions data was calculated using the UK Government's Greenhouse Gas reporting conversion factors for 2024. There are no omissions from the mandatory reporting scope.
Measures taken to increase energy efficiency
The reduction of greenhouse gas emissions and principle of developing energy efficient operating practices is central to the Group's wider sustainability agenda, which is critical to all strategic decisions taken. Some examples of measures taken to increase energy efficiency and reduce emissions include fitting energy efficient LED lights with PIR motion sensor technology throughout our Great Braxted warehouse, replacing our entire fleet of forklift trucks with battery powered machines that we are able to charge using electricity generated from our existing on-site solar array, and continued investment in further developing an already industry-leading warehouse management system to improve efficiency in our cargo handling processes.
Intensity ratio
A key performance indicator for our Great Braxted site is number of pallets handled, and this is considered to be the most applicable quantifiable factor relating to the Group's activities that can be used in calculating an intensity ratio to express the Group's emissions. The ratio of emissions of CO2e / number of pallets handled for 2024 was 0.780kg CO2e per pallet handled (2023 - 0.715kg CO2e per pallet handled).
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COMMODITY CENTRE (GROUP) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
Post year end, Commodity Centre Belgium Forwarding BVBA, an 80% owned subsidiary of the Group, has been closed. All outstanding liabilities were settled upon closure of the company.
Additionally, a bank loan totalling £2,380,594 in Commodity Centre Limited was paid in full post year end, as part of a refinancing activity within the Group, and consolidated into the mortgage in Routebuy Limited.
The auditors, Gravita Audit II Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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COMMODITY CENTRE (GROUP) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF COMMODITY CENTRE (GROUP) LIMITED
We have audited the financial statements of Commodity Centre (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, the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the 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 or 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.
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COMMODITY CENTRE (GROUP) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF COMMODITY CENTRE (GROUP) LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
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 Directors' Report.
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COMMODITY CENTRE (GROUP) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF COMMODITY CENTRE (GROUP) LIMITED (CONTINUED)
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COMMODITY CENTRE (GROUP) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF COMMODITY CENTRE (GROUP) LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations. The laws and regulations applicable to the company were identified through discussions with directors and other management, and from our commercial knowledge and experience of commodity storage. Of these laws and regulations, we focused on those that we considered may have a direct material effect on the financial statements or the operations of the company, including GDPR, Data Protection, the Companies Act 2006, Taxation Legislation, Employment Law, Health and Safety at Work Act 1974, Business and Planning Act 2020, BRC Global Standards, Hazard Analysis and Critical Control Point (HACCP), Control of Substances Hazardous to Health Regulations 2002 (COSHH), Working time directive 2003, ICE Futures Europe, London Metal Exchange and Anti-Bribery laws. The extent of compliance with these laws and regulations identified above was assessed through making enquiries of management and inspecting legal correspondence. The identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: • making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; • considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and • understanding the design of the company’s remuneration policies.
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COMMODITY CENTRE (GROUP) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF COMMODITY CENTRE (GROUP) LIMITED (CONTINUED)
To address the risk of fraud through management bias and override of controls, we:
• performed analytical procedures to identify any unusual or unexpected relationships; • tested journal entries to identify unusual transactions; • assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and • investigated the rationale behind significant or unusual transactions. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: • agreeing financial statement disclosures to underlying supporting documentation; • reading the minutes of meetings of those charged with governance; • enquiring of management as to actual and potential litigation and claims; and • reviewing correspondence with the company’s legal advisors. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' 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 an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Aldgate Tower
2 Leman Street
E1 8FA
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COMMODITY CENTRE (GROUP) LIMITED
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
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COMMODITY CENTRE (GROUP) LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
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COMMODITY CENTRE (GROUP) LIMITED
REGISTERED NUMBER: 08319591
CONSOLIDATED BALANCE SHEET
AS AT 31 MARCH 2024
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COMMODITY CENTRE (GROUP) LIMITED
REGISTERED NUMBER: 08319591
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 23 to 52 form part of these financial statements.
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COMMODITY CENTRE (GROUP) LIMITED
REGISTERED NUMBER: 08319591
COMPANY BALANCE SHEET
AS AT 31 MARCH 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 23 to 52 form part of these financial statements.
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
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COMMODITY CENTRE (GROUP) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
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COMMODITY CENTRE (GROUP) LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
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COMMODITY CENTRE (GROUP) LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
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COMMODITY CENTRE (GROUP) LIMITED
CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 MARCH 2024
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COMMODITY CENTRE (GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
Commodity Centre (Group) Limited is a private company, limited by shares, incorporated in England and Wales. The Company was incorporated on 5 December 2012 under the company registration number 08319591. The registered office is Commodity House, Braxted Park Road, Great Braxted, Witham, Essex, CM8 3EW, which is also its principal place of business.
The significant accounting policies applied in the presentation of these financial statements are set out below.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Profit and Loss Account in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Profit and Loss Account from the date on which control is obtained. They are deconsolidated from the date control ceases. In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 01 April 2014.
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COMMODITY CENTRE (GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
Revenue is recognised based on the period when services are provided. Technical and associated warehousing Revenue is recognised based on the period when the services are completed. Freight forwarding, haulage and logistics Revenue is recognised once a delivery has been completed and proof of delivery has been obtained.
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COMMODITY CENTRE (GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
Page 25
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COMMODITY CENTRE (GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
Page 26
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COMMODITY CENTRE (GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
Negative Goodwill
Negative Goodwill represents the excess between amounts paid on the cost of a business combination and the acquirer's interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, negative goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Negative goodwill is amortised on a straight line basis to the Consolidated Statement of Comprehensive Income over its useful economic life of 5 years with a full year’s amortisation released in the year of acquisition.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
At each reporting date the Group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Page 27
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COMMODITY CENTRE (GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.
Page 28
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COMMODITY CENTRE (GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
The Group has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.
Financial instruments are recognised in the Group's Balance Sheet when the Group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.
Page 29
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COMMODITY CENTRE (GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
Financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Derecognition of financial instruments
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.
Page 30
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COMMODITY CENTRE (GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
Costs relating to goods were no charge on entry into store is made by the Group are carried forward as work in progress and released when the goods are moved out of store and matched against the exit charge arising. Work in progress is reviewed for impairment and a provision made for any amounts not considered recoverable. 3.2 Valuation of Freehold Property 3.3 Depreciation Judgment is applied to determine the useful economic life of fixed assets, which is used to calculate annual depreciation. The Group's depreciation policy has been identified within accounting policy note 2.12. 3.4 Deferred Tax Asset Management uses forecasts of future profits to assess the recoverability of deferred tax assets.
Analysis of turnover by country of destination:
Page 31
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COMMODITY CENTRE (GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
Page 32
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COMMODITY CENTRE (GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
Page 33
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COMMODITY CENTRE (GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
Page 34
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COMMODITY CENTRE (GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
10.Taxation (continued)
Page 35
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COMMODITY CENTRE (GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
The Group acquired two subsidiaries in 2021; Waagnatie NV and W-IMMO-MAT BVBA (both of which are registered in Belgium. The acquisitions occured on 16 February 2021 and the purchase price plus cost of acquisition was £1,155,783. The fair value of assets acquired, specifically a warehouse, was far higher than the total consideration and as such created negative goodwill of £2,569,949 in the financial year ending 31 March 2021.
The sale of the properties held by Waagnatie NV and W-IMMO-MAT BVBA was agreed before the prior year end and completed in the current financi year. As a result, the negative goodwill arising on the acquisition of Waagnatie NV and W-IMMO-MAT BVBA had been fully impaired in the prior year, and fully disposed of in the current financial year.
Page 36
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COMMODITY CENTRE (GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
Page 37
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COMMODITY CENTRE (GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
14.Tangible fixed assets (continued)
Page 38
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COMMODITY CENTRE (GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
Page 39
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COMMODITY CENTRE (GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
15.Fixed asset investments (continued)
Page 40
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COMMODITY CENTRE (GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
Page 41
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COMMODITY CENTRE (GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
Page 42
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COMMODITY CENTRE (GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
Page 43
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COMMODITY CENTRE (GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
Included within the overall financing facilities of the Group are £3,000,000 (2023 - £3,000,000) of Revolving Credit Facilities, of which £Nil (2023 - £Nil) has been disclosed within Creditors: Amounts falling due within one year, and £3,000,000 (2023 - £3,000,000) which has been disclosed as Creditors: Amounts falling due after more than one year. These facilities are maintained at a consistent level to fund the long term working capital requirements of the Group. The Directors consider that the facility should be classified as a long term liability to enable a clear understanding of the financing structure for the Group.
Securities over bank loans, other loans, finance leases and hire purchases contracts are included in Note 19.
Page 44
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COMMODITY CENTRE (GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
Page 45
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COMMODITY CENTRE (GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
Page 46
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COMMODITY CENTRE (GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
Page 47
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COMMODITY CENTRE (GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
Revaluation reserve
Foreign exchange reserve
Merger Reserve
Profit and loss account
Page 48
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COMMODITY CENTRE (GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
The Group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £170,328 (2023 - £158,932). Contributions totalling £58,287 (2023 - £34,619) were payable at the Balance Sheet date and are included within Creditors: Amounts falling due within one year - Other creditors.
Page 49
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COMMODITY CENTRE (GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
31.Related party transactions (continued)
Page 50
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COMMODITY CENTRE (GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
31.Related party transactions (continued)
Page 51
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COMMODITY CENTRE (GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
Additionally, a bank loan totalling £2,380,594 in Commodity Centre Limited was paid in full post year end, as part of a refinancing activity within the Group, and consolidated into the mortgage in Routebuy Limited.
Mr A Gunn was the ultimate controlling party of the Group throughout the current and previous period, by virtue of his majority shareholding.
Page 52
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