Company registration number 08331955 (England and Wales)
ALL TEL COMMUNICATIONS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
ALL TEL COMMUNICATIONS LIMITED
COMPANY INFORMATION
Directors
Mr K J Morris
Mr H M Davies
C Smart
Company number
08331955
Registered office
Acorn Farm
Green Lane
Milbury Heath
Thornbury
Gloucestershire
United Kingdom
GL12 8QW
Auditor
Azets Audit Services
Epsilon House
The Square
Gloucester Business Park
Gloucester
United Kingdom
GL3 4AD
ALL TEL COMMUNICATIONS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 33
ALL TEL COMMUNICATIONS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 1 -

The directors present the strategic report for the year ended 30 April 2024.

Review of business

We aim to present a balanced and comprehensive review of the development and performance of the business during the year and its position at the year end. The review is consistent with the size and non-complex nature of the business and is written in the context of the risks and uncertainties the group faces.

 

During the year the group has continued to carry out its principal activities of pre-build site survey and installation, splicing and testing of fibre optic cables on the openreach network.

 

Demand remained subdued on the openreach fibre build programs, compared to historic levels, most notably in the southwest. However, build on VMO2 nexfibre contract continued to grow. The group's other AltNet contracts, which had markedly driven up sales for the group over the years, had come to a close. The group looks forward to the coming year and the opportunity to capitalise on the next wave of fibre build projects to be delivered on the openreach fibre build programs, VMO2 nexfibre build program and Project Gigabit.

Principal risks and uncertainties

Market risk

The group operates in a competitive market which will remain competitive for the foreseeable future.

 

The principal risk that the business faces would be a slowing down, pause or cessation of the fibre build contracts or a change in strategy towards in-sourcing of external telecommunications infrastructure build activities.

 

However, this risk is mitigated by diversification into new areas, with other contracts and customers.

 

Financial risk management

The group's financial instruments comprise cash at bank and various items such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise adequate finance for the group's operations.

 

The main risks arising from the group's financial instruments are interest rate fluctuations and liquidity risk. It is the group's policy to finance its operations through a mixture of cash and borrowings and to review periodically the mix of these instruments with regard to the projected cash flow requirements of the group and an acceptable level of risk exposure.

Future developments

It is anticipated that the group will consolidate its position with its key customers on its target contracts.

Key performance indicators

Overall sales decreased by 51.3%, but remain at a sufficiently high level to be indicative of ongoing demand from new and existing customers during the year.

 

The operating profit was £556,809 for the year. The average number of employees decreased from 253 to 174.

ALL TEL COMMUNICATIONS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -
Employee ownership trust

The group is employee owned. Refer to the Employee Ownership Trust note for full detail.

 

Employee ownership has allowed our staff to become much more invested in the success of the business. Two staff are on the Trustee Board of Directors, each depot is represented at regular staff meetings, and information on the business is regularly circulated to the manager of each depot. In addition, the Trust provides the option of bonus payments to all staff where financial performance and cashflow facilitates.

On behalf of the board

C Smart
Director
22 January 2025
ALL TEL COMMUNICATIONS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 3 -

The directors present their annual report and financial statements for the year ended 30 April 2024.

Principal activities

The principal activity of the group continued to be that of laying of telecommunication cables.

Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr K J Morris
Mr H M Davies
C Smart
Statement of directors' responsibilities

The directors are responsible for preparing the Annual Report 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Strategic report

The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of financial risks and future developments.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

ALL TEL COMMUNICATIONS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 4 -
On behalf of the board
C Smart
Director
22 January 2025
ALL TEL COMMUNICATIONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ALL TEL COMMUNICATIONS LIMITED
- 5 -
Opinion

We have audited the financial statements of All Tel Communications Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company 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 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 other information comprises the information included in the annual report other than the financial statements and our auditor's 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

ALL TEL COMMUNICATIONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ALL TEL COMMUNICATIONS LIMITED
- 6 -
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 their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 is 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 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's 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 an auditor's 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 financial statements.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

ALL TEL COMMUNICATIONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ALL TEL COMMUNICATIONS LIMITED
- 7 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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 an auditor's 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.

Claire Clift (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
23 January 2025
Chartered Accountants
Statutory Auditor
Epsilon House
The Square
Gloucester Business Park
Gloucester
United Kingdom
GL3 4AD
ALL TEL COMMUNICATIONS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
10,843,982
22,284,115
Cost of sales
(6,057,213)
(12,450,925)
Gross profit
4,786,769
9,833,190
Administrative expenses
(4,232,387)
(5,141,459)
Other operating income
2,427
27,310
Operating profit
5
556,809
4,719,041
Interest receivable and similar income
100,207
8,468
Interest payable and similar expenses
8
(51,180)
(83,045)
Profit before taxation
605,836
4,644,464
Tax on profit
9
(169,270)
(889,379)
Profit for the financial year
26
436,566
3,755,085
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
ALL TEL COMMUNICATIONS LIMITED
GROUP BALANCE SHEET
AS AT
30 APRIL 2024
30 April 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
10
(3)
(7,006)
Tangible assets
11
2,398,949
2,646,997
2,398,946
2,639,991
Current assets
Stocks
14
-
25,000
Debtors
15
2,353,525
6,057,449
Cash at bank and in hand
5,330,739
5,132,747
7,684,264
11,215,196
Creditors: amounts falling due within one year
16
(1,054,495)
(3,826,944)
Net current assets
6,629,769
7,388,252
Total assets less current liabilities
9,028,715
10,028,243
Creditors: amounts falling due after more than one year
17
-
(473,503)
Provisions for liabilities
Deferred tax liability
20
583,897
539,342
(583,897)
(539,342)
Net assets
8,444,818
9,015,398
Capital and reserves
Called up share capital
23
335
335
Share premium account
24
707,470
707,470
Other reserves
231,125
213,271
Profit and loss reserves
26
7,505,888
8,094,322
Total equity
8,444,818
9,015,398
The financial statements were approved by the board of directors and authorised for issue on 22 January 2025 and are signed on its behalf by:
22 January 2025
C Smart
Director
Company registration number 08331955 (England and Wales)
ALL TEL COMMUNICATIONS LIMITED
COMPANY BALANCE SHEET
AS AT 30 APRIL 2024
30 April 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
12
2,793,722
2,775,868
Current assets
Cash at bank and in hand
1
1
Net current assets
1
1
Net assets
2,793,723
2,775,869
Capital and reserves
Called up share capital
23
335
335
Share premium account
24
707,470
707,470
Other reserves
231,125
213,271
Profit and loss reserves
26
1,854,793
1,854,793
Total equity
2,793,723
2,775,869

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £0 (2023 - £0 profit).

The financial statements were approved by the board of directors and authorised for issue on 22 January 2025 and are signed on its behalf by:
22 January 2025
C Smart
Director
Company registration number 08331955 (England and Wales)
ALL TEL COMMUNICATIONS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 11 -
Share capital
Share premium account
Other reserves
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 May 2022
335
707,470
212,491
5,354,237
6,274,533
Year ended 30 April 2023:
Profit and total comprehensive income for the year
-
-
-
3,755,085
3,755,085
Share-based payments
-
-
780
-
780
Gifts to Employee Ownership Trust
-
-
-
(1,015,000)
(1,015,000)
Balance at 30 April 2023
335
707,470
213,271
8,094,322
9,015,398
Year ended 30 April 2024:
Profit and total comprehensive income for the year
-
-
-
436,566
436,566
Share-based payments
-
-
17,854
-
17,854
Gifts to Employee Ownership Trust
-
-
-
(1,025,000)
(1,025,000)
Balance at 30 April 2024
335
707,470
231,125
7,505,888
8,444,818
ALL TEL COMMUNICATIONS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 12 -
Share capital
Share premium account
Other reserves
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 May 2022
335
707,470
212,491
1,854,793
2,775,089
Year ended 30 April 2023:
Profit and total comprehensive income for the year
-
-
-
-
-
0
Share-based payments
-
-
780
-
780
Balance at 30 April 2023
335
707,470
213,271
1,854,793
2,775,869
Year ended 30 April 2024:
Profit and total comprehensive income
-
-
-
-
-
0
Share-based payments
-
-
17,854
-
17,854
Balance at 30 April 2024
335
707,470
231,125
1,854,793
2,793,723
ALL TEL COMMUNICATIONS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
33
3,252,365
6,331,997
Interest paid
(51,180)
(83,045)
Income taxes (paid)/refunded
(687,510)
45,863
Net cash inflow from operating activities
2,513,675
6,294,815
Investing activities
Purchase of tangible fixed assets
(765,566)
(685,297)
Proceeds on disposal of tangible fixed assets
356,289
60,295
Interest received
100,207
8,468
Net cash used in investing activities
(309,070)
(616,534)
Financing activities
Repayment of bank loans
(320,000)
(80,000)
Payment of finance leases obligations
(661,613)
(828,130)
Dividends and gifts paid
(1,025,000)
(1,015,000)
Net cash used in financing activities
(2,006,613)
(1,923,130)
Net increase in cash and cash equivalents
197,992
3,755,151
Cash and cash equivalents at beginning of year
5,132,747
1,377,596
Cash and cash equivalents at end of year
5,330,739
5,132,747
ALL TEL COMMUNICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 14 -
1
Accounting policies
Company information

All Tel Communications Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Acorn Farm, Green Lane, Milbury Heath, Thornbury, Gloucestershire, United Kingdom, GL12 8QW.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Basis of consolidation

The group consists of All Tel Communications Limited and all of its subsidiaries.

 

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

The consolidated group financial statements consist of the financial statements of the parent company All Tel Communications Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 30 April 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into 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. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

ALL TEL COMMUNICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 15 -

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has access to adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

 

The directors are satisfied with the recognition as contingent liabilities of the amounts guaranteed by the group, in respect of liabilities of All Tel Communications Limited Employee Ownership Trust.

1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

Turnover is recognised as services are provided for the laying of telecommunication cables. The proportion of revenue that is not invoiced until after the year end is included within accrued income.

1.5
Intangible fixed assets - goodwill

Negative goodwill represents the excess of the fair value of net assets acquired over the cost of acquisition of a business. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation. The group's properties, including both freehold and investment properties, were included at fair value in the year of acquisition.

 

Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

1.6
Tangible fixed assets

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

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold property
5% on cost
Long leasehold
2% on cost
Leasehold improvements
over the period of the lease
Plant and equipment
25% on reducing balance
Fixtures and fittings
25% on reducing balance
Motor vehicles
25% on reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.7
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

ALL TEL COMMUNICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 16 -

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.8
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.9
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.10
Cash at bank and in hand

Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.11
Financial instruments

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 and 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.

ALL TEL COMMUNICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 17 -
Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

ALL TEL COMMUNICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 18 -
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

1.12
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.13
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.14
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

ALL TEL COMMUNICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 19 -
1.15
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

1.16
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.17
Share-based payments

Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using the Black Scholes model. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.

 

The expense in relation to options over the parent company’s shares granted to employees of a subsidiary is recognised by the company as a capital contribution, and presented as an increase in the company’s investment in that subsidiary.

When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.

 

Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.

1.18
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.19

Distributions to equity holders

Dividends and other distributions to the company's shareholders are recognised as a liability in the financial statements in the period in which the dividends and other distributions are approved by the company's shareholders. These amounts are recognised in the statement of changes in equity.

ALL TEL COMMUNICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 20 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Accrued income

Accrued income is accounted for in line with the expected value of work completed less amounts invoiced to date at the balance sheet date, based upon the anticipated sales value for each job.

Depreciation

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful lives and residual values of the assets. The useful lives and residual values are re-assessed at each reporting date. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.

3
Turnover and other revenue

The turnover and profit before taxation are attributable to the one principal activity of the group.

4
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
-
-
Audit of the financial statements of the company's subsidiaries
17,000
19,000
5
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
626,839
413,938
Depreciation of tangible fixed assets held under finance leases
163,254
429,506
Profit on disposal of tangible fixed assets
(132,768)
(5,063)
Amortisation of intangible assets
(7,003)
(7,003)
Share-based payments
17,854
780
Operating lease charges
177,720
189,758
ALL TEL COMMUNICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 21 -
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Operatives
113
173
-
-
Administration
58
77
-
-
Directors
3
3
3
3
Total
174
253
3
3

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
6,159,681
10,196,477
-
0
-
0
Social security costs
655,032
1,183,909
-
-
Pension costs
152,859
344,893
-
0
-
0
6,967,572
11,725,279
-
0
-
0
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
289,923
309,386
Company pension contributions to defined contribution schemes
18,804
70,292
308,727
379,678
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
144,600
175,972
Company pension contributions to defined contribution schemes
10,377
20,261

The number of directors for whom retirement benefits were accruing under money purchase schemes as at 30 April 2024 amounted to 2 (2023: 2).

ALL TEL COMMUNICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 22 -
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
6,759
23,557
Interest on finance leases and hire purchase contracts
44,421
59,488
Total finance costs
51,180
83,045
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
125,000
895,000
Adjustments in respect of prior periods
(285)
-
0
Total current tax
124,715
895,000
Deferred tax
Origination and reversal of timing differences
44,555
(5,621)
Total tax charge
169,270
889,379

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
605,836
4,644,464
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.49%)
151,459
905,355
Tax effect of expenses that are not deductible in determining taxable profit
18,865
10,263
Under/(over) provided in prior years
(285)
-
0
Other items, including impact of changes in rate
(769)
(26,239)
Taxation charge
169,270
889,379
ALL TEL COMMUNICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 23 -
10
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 May 2023 and 30 April 2024
(70,033)
Amortisation and impairment
At 1 May 2023
(63,027)
Amortisation charged for the year
(7,003)
At 30 April 2024
(70,030)
Carrying amount
At 30 April 2024
(3)
At 30 April 2023
(7,006)
The company had no intangible fixed assets at 30 April 2024 or 30 April 2023.
ALL TEL COMMUNICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 24 -
11
Tangible fixed assets
Group
Freehold property
Long leasehold
Leasehold improvements
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 May 2023
557,012
3,025
159,617
1,423,117
258,077
4,648,534
7,049,382
Additions
-
0
-
0
21,972
226,494
9,702
507,398
765,566
Disposals
-
0
-
0
-
0
(82,687)
(63,250)
(987,395)
(1,133,332)
At 30 April 2024
557,012
3,025
181,589
1,566,924
204,529
4,168,537
6,681,616
Depreciation and impairment
At 1 May 2023
501,476
465
159,617
907,471
170,769
2,662,587
4,402,385
Depreciation charged in the year
55,536
80
681
169,824
22,830
541,142
790,093
Eliminated in respect of disposals
-
0
-
0
-
0
(53,727)
(55,658)
(800,426)
(909,811)
At 30 April 2024
557,012
545
160,298
1,023,568
137,941
2,403,303
4,282,667
Carrying amount
At 30 April 2024
-
0
2,480
21,291
543,356
66,588
1,765,234
2,398,949
At 30 April 2023
55,536
2,560
-
0
515,646
87,308
1,985,947
2,646,997
The company had no tangible fixed assets at 30 April 2024 or 30 April 2023.
ALL TEL COMMUNICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
11
Tangible fixed assets
(Continued)
- 25 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2024
2023
2024
2023
£
£
£
£
Motor vehicles
-
0
1,316,616
-
0
-
0

Tangible fixed assets are pledged as security for the group's bank facilities, under a fixed and floating charge. The company's assets are pledged as security under a debenture for the loan liability referred to in the contingent liabilities note.

12
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
2,793,722
2,775,868

Fixed asset investments are pledged as security for the group's bank facilities, under a fixed and floating charge. The company's assets are pledged as security under a debenture for the loan liability referred to in the contingent liabilities note.

Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 May 2023
2,775,868
Capital contributions
17,854
At 30 April 2024
2,793,722
Carrying amount
At 30 April 2024
2,793,722
At 30 April 2023
2,775,868
13
Subsidiaries

Details of the company's subsidiaries at 30 April 2024 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Barden Network Engineering Limited
UK
Telecommunications installations
Ordinary
100.00
ALL TEL COMMUNICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
13
Subsidiaries
(Continued)
- 26 -

The registered office of the above subsidiary is the same as the parent company as shown on the Company Information page.

14
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
-
25,000
-
-

The total carrying value of stock is pledged as security for the group's bank facilities under a fixed and floating charge. The company's assets are pledged as security under a debenture for the loan liability referred to in the contingent liabilities note.

15
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
481,966
2,440,962
-
0
-
0
Corporation tax recoverable
-
0
198,104
-
0
-
0
Other debtors
644,398
511,799
-
0
-
0
Prepayments and accrued income
1,227,161
2,906,584
-
0
-
0
2,353,525
6,057,449
-
-

All debtor balances held are pledged as security for the group's bank facilities, under a fixed and floating charge. The company's assets are pledged as security under a debenture for the loan liability referred to in the contingent liabilities note.

16
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
18
-
0
80,000
-
0
-
0
Obligations under finance leases
19
-
0
428,110
-
0
-
0
Trade creditors
196,140
473,791
-
0
-
0
Corporation tax payable
134,101
895,000
-
0
-
0
Other taxation and social security
88,440
830,146
-
-
Other creditors
271,236
168,157
-
0
-
0
Accruals and deferred income
364,578
951,740
-
0
-
0
1,054,495
3,826,944
-
0
-
0
ALL TEL COMMUNICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 27 -
17
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
18
-
0
240,000
-
0
-
0
Obligations under finance leases
19
-
0
233,503
-
0
-
0
-
473,503
-
-
18
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
-
0
320,000
-
0
-
0
Payable within one year
-
0
80,000
-
0
-
0
Payable after one year
-
0
240,000
-
0
-
0

 

19
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
-
0
428,110
-
0
-
0
In two to five years
-
0
233,503
-
0
-
0
-
661,613
-
-
ALL TEL COMMUNICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 28 -
20
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
591,500
568,193
Other short term timing differences
(7,603)
(28,851)
583,897
539,342
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 May 2023
539,342
-
Charge to profit or loss
44,555
-
Liability at 30 April 2024
583,897
-

The provision primarily relates to the reversal of differences on acquired tangible assets and capital allowances through depreciation. As these timing differences are not expected to change significantly in 2025, the net deferred tax liability expected to reverse in 2025 is £Nil.

 

Factors that may affect future tax charges

A rate of 25% (2023: 25%) was used for purposes of considering the effects of deferred taxation in the current period, in line with the main rate of UK Corporation Tax effective from 1 April 2023.

21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
152,859
344,893

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

ALL TEL COMMUNICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 29 -
22
Share-based payment transactions
Group
Number of share options
Weighted average exercise price
2024
2023
2024
2023
Number
Number
£
£
Outstanding at 1 May 2023
5,025
3,350
63.43
63.43
Granted
-
1,675
-
63.43
Outstanding at 30 April 2024
5,025
5,025
63.43
63.43
Exercisable at 30 April 2024
3,350
3,350
63.43
63.43

The options are dependent upon future certain events.

Company
Number of share options
Weighted average exercise price
2024
2023
2024
2023
Number
Number
£
£
Outstanding at 1 May 2023
5,025
3,350
63.43
63.43
Granted
-
1,675
-
63.43
Outstanding at 30 April 2024
5,025
5,025
63.43
63.43
Exercisable at 30 April 2024
3,350
3,350
63.43
63.43

The options are dependent upon future certain events.

Group
Company
2024
2023
2024
2023
£
£
£
£
Expenses recognised in the year
Arising from equity settled share based payment transactions
17,854
780
-
-

Amounts recognised in relation to share-based payments have arisen as a result of the fair value of share options issued being expensed over the vesting period for the relevant share options. Assessments have been made at each reporting date for the number of shares expected to vest.

ALL TEL COMMUNICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 30 -
23
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of 1p each
33,500
33,500
335
335

Called up share capital represents the nominal value of shares that have been issued.

24
Share premium account
Group
Company
2024
2023
2024
2023
£
£
£
£
At the beginning and end of the year
707,470
707,470
707,470
707,470

The share premium represents the amount subscribed for share capital in excess of nominal value.

25
Other reserves
2024
2023
Group and company
£
£
At the beginning of the year
213,271
212,491
Additions
17,854
780
At the end of the year
231,125
213,271

Other reserves includes all current and prior period fair value adjustments of equity settled share-based payments.

26
Profit and loss reserves
Group
Company
2024
2023
2024
2023
£
£
£
£
At the beginning of the year
8,094,322
5,354,237
1,854,793
1,854,793
Profit for the year
436,566
3,755,085
-
0
-
0
Gifts to Employee Ownership Trust
(1,025,000)
(1,015,000)
-
-
At the end of the year
7,505,888
8,094,322
1,854,793
1,854,793
ALL TEL COMMUNICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
26
Profit and loss reserves
(Continued)
- 31 -

Retained earnings includes all current and prior period retained profits and losses.

 

During the year gifts of £1,025,000 (2023: £1,015,000) were made to the Trust referred to in the Employee Ownership Trust note, and have been treated as a gift from equity.

 

Payments to the Employee Ownership Trust are treated as distributions by the group and presented in the Statement of Changes in Equity. As a result the payments are accounted for when made. This treatment has been adopted on the basis that such payments are transfers of value to the group's shareholders.

27
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
128,949
187,145
-
-
Between two and five years
38,779
142,917
-
-
167,728
330,062
-
-
28
Capital commitments
Group
Company
2024
2023
2024
2023
£
£
£
£
Acquisition of tangible fixed assets
-
386,628
-
-
29
Contingent liabilities

The company has guaranteed a loan liability taken out by All Tel Communications Limited Employee Ownership Trust (the ultimate controlling party) by way of a debenture in relation to the purchase of shares in the company from the previous shareholders. The amount guaranteed is £5,075,000 (2023: £6,100,000). Further detail can be found in the Employee Ownership Trust note.

 

There were no other contingent liabilities at 30 April 2024 or 30 April 2023.

ALL TEL COMMUNICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 32 -
30
Related party transactions

Transactions with related parties

During the year the group entered into the following transactions with related parties:

 

During the year ended 30 April 2024, the subsidiary paid £142,729 (2023: £138,500) to pension schemes in which a director is a trustee, in relation to rent.

 

During the year ended 30 April 2024, the subsidiary paid £7,500 (2023: £30,000) to entities in which a director has control, in relation to rent.

 

Total key management personnel compensation and amounts paid to close family for the year was £400,795 (2023: £394,578).

31
Controlling party

The ultimate controlling party is the Trustees of All Tel Communications Limited Employee Ownership Trust, a trust registered in England and Wales.

 

All Tel Communications Limited Employee Ownership Trust owns the entirety of the shares of the company for the benefit of the company's employees, who each have an equal share once eligible. The trust was set up on 10 March 2020 inline with Section 37 to the Finance Act 2014 as an 'Employee Ownership Trust' (EOT). It is exempted by law from preparing consolidated accounts which includes the results of the company, as it holds the shares of the company as nominee.

32
Employee Ownership Trust

The company is "employee owned", by virtue of 100% of the share capital being owned by All Tel Communications Limited Employee Ownership Trust ("Employee Ownership Trust").

 

The funding for the purchase of the shares by the Employee Ownership Trust was by way of a loan to the Employee Ownership Trust from the previous shareholders of the business, the balance of which is to be repaid in agreed instalments until such time as the balance has been repaid in full. The intention is that the funding for the repayments by the Employee Ownership Trust will be provided by Barden Network Engineering Limited (the subsidiary of the group).

 

The obligation for full repayment of the loan, as set out in the share purchase agreement, lies with the Employee Ownership Trust and has therefore not been recognised within the financial statements of the group as a liability.

 

The group has provided a guarantee to the previous shareholders, should the Employee Ownership Trust not meet its loan repayment obligations. This is disclosed within the contingent liabilities note.

ALL TEL COMMUNICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 33 -
33
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
436,566
3,755,085
Adjustments for:
Taxation charged
169,270
889,379
Finance costs
51,180
83,045
Investment income
(100,207)
(8,468)
Gain on disposal of tangible fixed assets
(132,768)
(5,063)
Amortisation and impairment of intangible assets
(7,003)
(7,003)
Depreciation and impairment of tangible fixed assets
790,093
843,444
Equity settled share based payment expense
17,854
780
Movements in working capital:
Decrease in stocks
25,000
-
Decrease in debtors
3,505,820
402,638
(Decrease)/increase in creditors
(1,503,440)
378,160
Cash generated from operations
3,252,365
6,331,997

Major non-cash transactions

During the year, the group entered into hire purchase agreements in respect of assets with a capital value at inception of the leases of £Nil (2023: £102,410).

34
Analysis of changes in net funds - group
1 May 2023
Cash flows
30 April 2024
£
£
£
Cash at bank and in hand
5,132,747
197,992
5,330,739
Borrowings excluding overdrafts
(320,000)
320,000
-
Obligations under finance leases
(661,613)
661,613
-
4,151,134
1,179,605
5,330,739
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