Company registration number 08989297 (England and Wales)
SYMPHONY COATINGS GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
SYMPHONY COATINGS GROUP LIMITED
COMPANY INFORMATION
Directors
R. Nuttall
G. Morris
Secretary
P. J. Taylor
Company number
08989297
Registered office
Unit 3 Ambrose House
Meteor Court
Barnett Way
Barnwood
Gloucester
GL4 3GG
Auditor
Albert Goodman LLP
Goodwood House
Blackbrook Park Avenue
Taunton
Somerset
TA1 2PX
Business address
Unit 10A Grange Way
Whitehall Industrial Estate
Colchester
Essex
CO10 8HG
SYMPHONY COATINGS GROUP LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Balance sheet
8
Statement of changes in equity
9
Notes to the financial statements
10 - 21
SYMPHONY COATINGS GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The directors present the strategic report for the year ended 31 December 2023.
Principal activities
The principal activity of the company continued to be that of holding of investments in subsidiary companies.
Review of the business
The results for the year which are set out in the Statement of Comprehensive Income show the company made a net profit of £65,922 (2002: £1,202,808).
The turnover of the company consisted of management charges to its subsidiaries and companies under common control of the shareholders.,
The majority of the income in 2022 came from dividends received from group companies, the majority of which were subsequently paid up to the parent company.
The director is satisfied with the results for the year, which are summarised below, along wth the main key performance indicators.
2023
2022
£
£
Turnover
1,338,352
1,332,952
Operating profit
242,822
377,623
Profit before tax
242,822
1,227,096
Net assets
330,750
548,979
Principal risks and uncertainties
The company is reliant on the performance of its subsidiaries (and connected companies ) for its income. The failure of the subsidiaries represents the principal risk facing the company. The majority of the trading subsidiary companies are exposed to the price risks, supply chains and exchange rate risks due to purchasing stock from Europe. The director is aware of these, and mitigates where possible by agreeing prices across the whole group and a bulk buying practice.
G. Morris
Director
7 February 2025
SYMPHONY COATINGS GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
The directors present their annual report and financial statements for the year ended 31 December 2023.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £284,600. 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:
R. Nuttall
G. Morris
Future developments
The director is looking to expand the sale of wood coatings, paints and sprays into new markets over the next few years.
Auditor
Albert Goodman LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
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 company’s auditor 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 company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
G. Morris
Director
7 February 2025
SYMPHONY COATINGS GROUP LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
SYMPHONY COATINGS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF SYMPHONY COATINGS GROUP LIMITED
- 4 -
Opinion
We have audited the financial statements of Symphony Coatings Group Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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 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.
The financial statements of the company were unaudited for the year ended 31 December 2022 as the company was eligible for audit exemption. According the comparative information has not been subject to audit.
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 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.
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:
the information given in the 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 strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
SYMPHONY COATINGS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF SYMPHONY COATINGS GROUP LIMITED (CONTINUED)
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its 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:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the 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 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 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.
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:
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
• the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
• we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the sector;
• we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, employment and health and safety legislation;
• we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
• identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
SYMPHONY COATINGS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF SYMPHONY COATINGS GROUP LIMITED (CONTINUED)
- 6 -
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; and
• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
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 key 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 HMRC, relevant regulators and the company’s 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 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.
This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.
Joseph Doggrell BSC FCA (Senior Statutory Auditor)
For and on behalf of Albert Goodman LLP
10 February 2025
Statutory Auditor
Goodwood House
Blackbrook Park Avenue
Taunton
Somerset
TA1 2PX
SYMPHONY COATINGS GROUP LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
Unaudited
2023
2022
as restated
Notes
£
£
Turnover
3
1,338,352
1,332,952
Cost of sales
(613)
Gross profit
1,338,352
1,332,339
Administrative expenses
(1,732,269)
(1,481,644)
Other operating income
4
636,739
526,928
Operating profit
5
242,822
377,623
Interest receivable and similar income
8
849,473
Profit before taxation
242,822
1,227,096
Tax on profit
9
(176,900)
(24,288)
Profit for the financial year
65,922
1,202,808
The profit and loss account has been prepared on the basis that all operations are continuing operations.
SYMPHONY COATINGS GROUP LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 8 -
Unaudited
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
11
1
1
Investments
12
970
970
971
971
Current assets
Debtors
14
1,360,741
1,354,492
Cash at bank and in hand
55,027
116,465
1,415,768
1,470,957
Creditors: amounts falling due within one year
15
(1,085,989)
(922,949)
Net current assets
329,779
548,008
Total assets less current liabilities
330,750
548,979
Capital and reserves
Called up share capital
17
450
1
Profit and loss reserves
330,300
548,978
Total equity
330,750
548,979
The financial statements were approved by the board of directors and authorised for issue on 7 February 2025 and are signed on its behalf by:
G. Morris
Company Registration No. 08989297
Director
SYMPHONY COATINGS GROUP LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
As restated for the period ended 31 December 2022:
Balance at 1 January 2022
1
8,481
8,482
Effect of change in accounting policy
-
422,725
422,725
As restated
1
431,206
431,207
Year ended 31 December 2022:
Profit and total comprehensive income
-
1,202,808
1,202,808
Dividends
10
-
(1,085,036)
(1,085,036)
Balance at 31 December 2022
1
548,978
548,979
Year ended 31 December 2023:
Profit and total comprehensive income
-
65,922
65,922
Issue of share capital
17
449
-
449
Dividends
10
-
(284,600)
(284,600)
Balance at 31 December 2023
450
330,300
330,750
SYMPHONY COATINGS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
1
Accounting policies
Company information
Symphony Coatings Group Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 3 Ambrose House, Meteor Court, Barnett Way, Barnwood, Gloucester, GL4 3GG. The principal place of business is Unit 10A Grange Way, Whitehall Industrial Estate, Colchester, Essex, CO10 8HG.
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. The principal accounting policies adopted are set out below.
This 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:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.
Symphony Coatings Group Limited is a wholly owned subsidiary of East Anglian Holdings Limited and the results of Symphony Coatings Group Limited are included in the consolidated financial statements of East Anglian Holdings Limited which are available from the registered office address.
1.2
Going concern
These financial statements have been prepared on a going concern basis. The director, having considered the financial position of the company for a period of at least twelve months from the date of signing these financial statements, have no reason to believe that a material uncertainty exists that may cast doubt about the ability of the company to continue as a going concern. Accordingly the director has a reasonable expectation that the company will continue in operational existence and thus he continue to adopt the going concern basis of accounting in preparing the financial statements.
SYMPHONY COATINGS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 11 -
1.3
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.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.4
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:
Plant and equipment
25% on cost
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 credited or charged to profit or loss.
1.5
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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.
SYMPHONY COATINGS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
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.
1.7
Cash and cash equivalents
Cash and cash equivalents 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.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company 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 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.
SYMPHONY COATINGS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
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.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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 company 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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.9
Equity instruments
Equity instruments issued by the company 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 company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
SYMPHONY COATINGS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
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 company’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 when the company has 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.
1.11
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.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
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 leases asset are consumed.
1.14
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Change in accounting policy
The company has changed its accounting policy on the recognition of rebates, which are now accounted for on a receivable basis. The effect of this is shown in note 21.
SYMPHONY COATINGS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
Unaudited
2023
2022
£
£
Turnover analysed by class of business
Management charges
1,338,352
1,332,952
Unaudited
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
1,338,352
1,332,952
Unaudited
2023
2022
£
£
Other revenue
Dividends received
-
849,473
4
Other operating income
Other operating income consists of :
Unaudited
2023
2022
£
£
Rebates receivable
463,056
526,928
Insurance claims received
173,683
-
636,739
526,928
5
Operating profit
Unaudited
2023
2022
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
4,000
Operating lease charges
27,494
48,211
SYMPHONY COATINGS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
Unaudited
2023
2022
Number
Number
11
11
Unaudited
2023
2022
£
£
Wages and salaries
1,215,303
1,065,558
Social security costs
32,058
29,620
Pension costs
9,786
44,987
1,257,147
1,140,165
7
Directors' remuneration
Unaudited
2023
2022
£
£
Remuneration for qualifying services
410,798
296,560
Company pension contributions to defined contribution schemes
1,321
22,640
Sums paid to third parties for directors' services
34,100
11,660
446,219
330,860
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2022 - 2).
Remuneration disclosed above include the following amounts paid to the highest paid director:
Unaudited
2023
2022
£
£
Remuneration for qualifying services
250,000
133,910
Company pension contributions to defined contribution schemes
1,321
1,321
SYMPHONY COATINGS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
8
Interest receivable and similar income
Unaudited
2023
2022
£
£
Income from fixed asset investments
Income from shares in group undertakings
849,473
9
Taxation
Unaudited
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
171,000
31,100
Adjustments in respect of prior periods
5,900
(6,812)
Total current tax
176,900
24,288
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:
Unaudited
2023
2022
£
£
Profit before taxation
242,822
1,227,096
Expected tax charge based on the standard rate of corporation tax in the UK of 023.5% (2022: 19.00%)
57,063
233,148
Tax effect of expenses that are not deductible in determining taxable profit
5,439
3,089
Tax effect of income not taxable in determining taxable profit
(15,732)
(23,939)
Adjustments in respect of prior years
123,829
(19,798)
Other permanent differences
401
Under/(over) provided in prior years
5,900
(6,812)
Dividend income
(161,400)
Taxation charge for the year
176,900
24,288
10
Dividends
Unaudited
2023
2022
£
£
Final paid
284,600
Interim paid
1,085,036
284,600
1,085,036
SYMPHONY COATINGS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
11
Tangible fixed assets
Plant and equipment
£
Cost
At 1 January 2023 and 31 December 2023
26,550
Depreciation and impairment
At 1 January 2023 and 31 December 2023
26,549
Carrying amount
At 31 December 2023
1
At 31 December 2022
1
12
Fixed asset investments
Unaudited
2023
2022
Notes
£
£
Investments in subsidiaries
13
970
970
13
Subsidiaries
Details of the company's subsidiaries at 31 December 2023 are as follows:
Name of undertaking
Address
Class of
% Held
shares held
Direct
Symphony Coatings (South) Ltd
1
Ordinary shares
100.00
All-Finishes Limited
1
Ordinary shares
75.00
Symphony Coatings (East) Limited
1
Ordinary shares
100.00
Industrial Wood Coatings Limited
1
Ordinary shares
100.00
Rapidpaint Limited
1
Ordinary shares
100.00
Rapidpaint (Birmingham Limited
2
Ordinary shares
100.00
Symphony Coatings (West Midlands) Limited
1
Ordinary shares
75.00
Hallam (PM) Holdings Limited
1
Ordinary shares
100.00
Hallam (PM) td
1
Ordinary shares
100.00
Registered office addresses (all UK unless otherwise indicated):
1
Unit 3 Ambrose House, Meteor Court, Barnett Way, Barnwood, Gloucester, GL4 3GG
2
Symphony Coatings , Unit 9 Faraday Road, Rabans Lane Industrial Park, Aylesbury, Bucks, HP19 8RY
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
SYMPHONY COATINGS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
13
Subsidiaries
(Continued)
- 19 -
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Symphony Coatings (South) Ltd
548,226
196,839
All-Finishes Limited
(194,952)
43,423
Symphony Coatings (East) Limited
1,285,577
379,520
Industrial Wood Coatings Limited
121,314
85,940
Rapidpaint Limited
69
Rapidpaint (Birmingham Limited
1
Symphony Coatings (West Midlands) Limited
114,674
(19,401)
Hallam (PM) Holdings Limited
(25,417)
Hallam (PM) td
(66,129)
14
Debtors
Unaudited
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,148
Amounts owed by group undertakings
828,366
735,447
Other debtors
531,227
619,045
1,360,741
1,354,492
15
Creditors: amounts falling due within one year
Unaudited
2023
2022
£
£
Trade creditors
6,622
30,541
Amounts owed to group undertakings
814,391
785,391
Corporation tax
176,900
31,100
Other taxation and social security
71,701
72,218
Other creditors
4,203
3,699
Accruals and deferred income
12,172
1,085,989
922,949
16
Retirement benefit schemes
Unaudited
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
9,786
44,987
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
SYMPHONY COATINGS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
17
Share capital
Unaudited
Unaudited
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
450
1
450
1
The company has one class of ordinary shares which carry no right to fixed income.
The company issued a further 449 ordinary £1 shares during the year for £449.
18
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Unaudited
2023
2022
£
£
Within one year
35,804
55,444
Between two and five years
132,400
134,204
In over five years
115,850
148,950
284,054
338,598
£281,350 (2022: £341,450) of the above commitments was undertaken on behalf of subsidiary companies.
19
Ultimate controlling party
The ultimate parent company of this company is East Anglian Holdings Limited. East Anglian Holdings Limited's registered office is Unit 3 Ambrose House, Meteor Court, Barnett Way, Gloucester, GL4 3GG.
The following are the parents of the largest and smallest groups in which this company's results are consolidated:
Largest group
East Anglian Holdings Limited
Smallest group
East Anglian Holdings Limited
20
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
SYMPHONY COATINGS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
20
Related party transactions
(Continued)
- 21 -
The company charged management services to the following companies which are under common control :
Symphony Coatings (North West) Ltd : £145,552 (2022: £145,552)
Symphony Coatings (East Midlands) Ltd: £145,552 (2002: £145,552)
Symphony Coatings (North East) Ltd : £44,347 (2022; £44,347)
Symphony Coatings (South East) Ltd: £192,476 (2022: £192,476)
The following amounts were outstanding at the reporting end date:
Unaudited
2023
2022
Amounts due from related parties
£
£
Entities under common control and not included in the group of which this company is a member
36,874
92,117
21
Prior period adjustment
The prior period figures have been restated to reflect the change in accounting policy to account for rebates on a receivable basis, rather than a received basis.
Reconciliation of changes in equity
1 January
31 December
2022
2022
£
£
Adjustments to prior year
Adjustment to reflect accrued rebates
422,725
526,928
Equity as previously reported
8,482
22,051
Equity as adjusted
431,207
548,979
Analysis of the effect upon equity
Profit and loss reserves
422,725
526,928
Reconciliation of changes in profit for the previous financial period
2022
£
Adjustments to prior year
Adjustment to reflect accrued rebates
104,203
Profit as previously reported
1,098,605
Profit as adjusted
1,202,808
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