REGISTERED NUMBER: 05938802 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Period 1 December 2022 to 31 May 2024 |
for |
Communications Plus Ltd |
REGISTERED NUMBER: 05938802 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Period 1 December 2022 to 31 May 2024 |
for |
Communications Plus Ltd |
Communications Plus Ltd (Registered number: 05938802) |
Contents of the Consolidated Financial Statements |
for the Period 1 December 2022 to 31 May 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Consolidated Income Statement | 9 |
Consolidated Other Comprehensive Income | 10 |
Consolidated Balance Sheet | 11 |
Company Balance Sheet | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Financial Statements | 17 |
Communications Plus Ltd |
Company Information |
for the Period 1 December 2022 to 31 May 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors |
Chartered Accountants |
32 Derby Street |
Ormskirk |
Lancashire |
L39 2BY |
Communications Plus Ltd (Registered number: 05938802) |
Group Strategic Report |
for the Period 1 December 2022 to 31 May 2024 |
The directors present their strategic report of the company and the group for the period 1 December 2022 to 31 May 2024. |
REVIEW OF BUSINESS |
During the year the group turnover increased to £65m (2022: £47m). Due to VMO2's decision in September 2022 to close down the Franchise Programme, 3 stores were closed and 15 transferred to VMO2 during the period. |
Profit before tax for the company has increased to £14.4m (2022: £2.3m) and profit before tax for the group has increased to £13.3m (2022: £1.6m). These increases includes the final settlement relating to the close down of the Franchise Programme. |
PRINCIPAL RISKS AND UNCERTAINTIES |
In September 2022 VMO2 announced that following a Strategic Review of their Franchise Programme that they will not be continuing with the franchise model. As each individual store reaches its franchise agreement end or break, the agreement will not be renewed or the break will be served and the store will either close or transfer to VMO2 ownership. |
By 31 May 2024, all stores had been closed or transferred back to VMO2 and our Customer Support Centre had closed. |
The impact of this major change and reduced size of the group will financially materialise in the year 2024/25 and with strategic plans for growth in other areas, including Business Mobiles, SIMs, Digital products, Ultra Fast Fibre Connectivity, VoIP systems and Unified Communications and by managing the company's costs we will continue to be profitable although profits will be reduced. |
Despite these risks, the directors believe the company is in a strong position, both financially and operationally to maximise the opportunities and challenges that are presented. |
FUTURE DEVELOPMENTS |
The directors consider that with management of cost reductions and operational efficiencies and the growth of our Business to Business division that the company will still be trading profitably and the future, whilst challenging, will continue to be positive. |
In June 2024 the Communications Plus Ltd retained the Investors In People Platinum accreditation for the next 3 years. |
KEY PERFORMANCE INDICATORS |
The directors monitor the financial performance of the Company by reference to revenue share, operating profit and cashflow. |
ON BEHALF OF THE BOARD: |
Communications Plus Ltd (Registered number: 05938802) |
Report of the Directors |
for the Period 1 December 2022 to 31 May 2024 |
The directors present their report with the financial statements of the company and the group for the period 1 December 2022 to 31 May 2024. |
PRINCIPAL ACTIVITIES |
The principal activities of the group in the period under review were those of mobile phone retail outlets, the provision and management of communication systems and the retailing of mobile phones. |
DIVIDENDS |
Interim dividends totalling £24210 per share were paid during the period. The directors recommend that no final dividend be paid. |
The total distribution of dividends for the period ended 31 May 2024 will be £ 2,421,000 . |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 December 2022 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
Communications Plus Ltd (Registered number: 05938802) |
Report of the Directors |
for the Period 1 December 2022 to 31 May 2024 |
AUDITORS |
The auditors, Myersons, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Communications Plus Ltd |
Opinion |
We have audited the financial statements of Communications Plus Ltd (the 'parent company') and its subsidiaries (the 'group') for the period ended 31 May 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 May 2024 and of the group's profit for the period then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Communications Plus Ltd |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Communications Plus Ltd |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
-the senior statutory auditor 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 client and their industry 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 and data protection, employment and environmental and health and safety legislation; |
-we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management; 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. |
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 the accounting estimates were indicative of potential bias; and |
-investigated the rationale behind significant or unusual transactions. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
-agreeing financial statement disclosures to underlying supporting documentation; |
-enquiring of management as to actual and potential litigation and claims; and |
-reviewing correspondence with HMRC. |
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. |
Report of the Independent Auditors to the Members of |
Communications Plus Ltd |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Statutory Auditors |
Chartered Accountants |
32 Derby Street |
Ormskirk |
Lancashire |
L39 2BY |
Communications Plus Ltd (Registered number: 05938802) |
Consolidated |
Income Statement |
for the Period 1 December 2022 to 31 May 2024 |
Period |
1.12.22 |
to | Year Ended |
31.5.24 | 30.11.22 |
Notes | £ | £ |
TURNOVER | 64,560,044 | 46,575,762 |
Cost of sales | 37,930,529 | 33,250,476 |
GROSS PROFIT | 26,629,515 | 13,325,286 |
Administrative expenses | 14,401,108 | 11,876,923 |
12,228,407 | 1,448,363 |
Other operating income | 988,129 | 109,325 |
OPERATING PROFIT | 4 | 13,216,536 | 1,557,688 |
Interest receivable and similar income | 96,837 | 6,418 |
13,313,373 | 1,564,106 |
Interest payable and similar expenses | 5 | - | 138 |
PROFIT BEFORE TAXATION | 13,313,373 | 1,563,968 |
Tax on profit | 6 | 3,505,362 | 438,615 |
PROFIT FOR THE FINANCIAL PERIOD |
Profit attributable to: |
Owners of the parent | 9,808,011 | 1,125,353 |
Communications Plus Ltd (Registered number: 05938802) |
Consolidated |
Other Comprehensive Income |
for the Period 1 December 2022 to 31 May 2024 |
Period |
1.12.22 |
to | Year Ended |
31.5.24 | 30.11.22 |
Notes | £ | £ |
PROFIT FOR THE PERIOD | 9,808,011 | 1,125,353 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD |
9,808,011 |
1,125,353 |
Total comprehensive income attributable to: |
Owners of the parent | 9,808,011 | 1,125,353 |
Communications Plus Ltd (Registered number: 05938802) |
Consolidated Balance Sheet |
31 May 2024 |
31.5.24 | 30.11.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 | 1,625,598 | 2,793,524 |
Tangible assets | 10 | 776,674 | 917,366 |
Investments | 11 |
Interest in associate | - | 3 |
2,402,272 | 3,710,893 |
CURRENT ASSETS |
Stocks | 12 | 2,566 | 1,824,243 |
Debtors | 13 | 14,736,199 | 8,509,584 |
Cash at bank and in hand | 1,727,836 | 4,197,437 |
16,466,601 | 14,531,264 |
CREDITORS |
Amounts falling due within one year | 14 | 6,489,552 | 13,171,894 |
NET CURRENT ASSETS | 9,977,049 | 1,359,370 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
12,379,321 |
5,070,263 |
CREDITORS |
Amounts falling due after more than one year |
15 |
(8,494 |
) |
(72,287 |
) |
PROVISIONS FOR LIABILITIES | 18 | (86,893 | ) | (101,053 | ) |
NET ASSETS | 12,283,934 | 4,896,923 |
CAPITAL AND RESERVES |
Called up share capital | 19 | 100 | 100 |
Retained earnings | 20 | 12,283,834 | 4,896,823 |
SHAREHOLDERS' FUNDS | 12,283,934 | 4,896,923 |
The financial statements were approved by the Board of Directors and authorised for issue on 14 March 2025 and were signed on its behalf by: |
S M Roberts - Director |
Communications Plus Ltd (Registered number: 05938802) |
Company Balance Sheet |
31 May 2024 |
31.5.24 | 30.11.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
Investments | 11 |
CURRENT ASSETS |
Stocks | 12 |
Debtors | 13 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 18 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Retained earnings | 20 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 10,920,215 | 1,901,676 |
The financial statements were approved by the Board of Directors and authorised for issue on |
Communications Plus Ltd (Registered number: 05938802) |
Consolidated Statement of Changes in Equity |
for the Period 1 December 2022 to 31 May 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 December 2021 | 100 | 4,771,470 | 4,771,570 |
Changes in equity |
Dividends | - | (1,000,000 | ) | (1,000,000 | ) |
Total comprehensive income | - | 1,125,353 | 1,125,353 |
Balance at 30 November 2022 | 100 | 4,896,823 | 4,896,923 |
Changes in equity |
Dividends | - | (2,421,000 | ) | (2,421,000 | ) |
Total comprehensive income | - | 9,808,011 | 9,808,011 |
Balance at 31 May 2024 | 100 | 12,283,834 | 12,283,934 |
Communications Plus Ltd (Registered number: 05938802) |
Company Statement of Changes in Equity |
for the Period 1 December 2022 to 31 May 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 December 2021 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 30 November 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 May 2024 |
Communications Plus Ltd (Registered number: 05938802) |
Consolidated Cash Flow Statement |
for the Period 1 December 2022 to 31 May 2024 |
Period |
1.12.22 |
to | Year Ended |
31.5.24 | 30.11.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 1,145,857 | 2,093,840 |
Interest paid | - | (138 | ) |
Tax paid | (984,603 | ) | (437,051 | ) |
Net cash from operating activities | 161,254 | 1,656,651 |
Cash flows from investing activities |
Purchase of intangible fixed assets | (7,186 | ) | (54,765 | ) |
Purchase of tangible fixed assets | (291,528 | ) | (264,752 | ) |
Sale of tangible fixed assets | 32,995 | 525 |
Sale of fixed asset investments | 40,000 | - |
Interest received | 96,837 | 6,418 |
Net cash from investing activities | (128,882 | ) | (312,574 | ) |
Cash flows from financing activities |
Amount introduced by directors | 1,839,960 | 760,000 |
Amount withdrawn by directors | (1,920,933 | ) | (679,074 | ) |
Equity dividends paid | (2,421,000 | ) | (1,000,000 | ) |
Net cash from financing activities | (2,501,973 | ) | (919,074 | ) |
(Decrease)/increase in cash and cash equivalents | (2,469,601 | ) | 425,003 |
Cash and cash equivalents at beginning of period |
2 |
4,197,437 |
3,772,434 |
Cash and cash equivalents at end of period |
2 |
1,727,836 |
4,197,437 |
Communications Plus Ltd (Registered number: 05938802) |
Notes to the Consolidated Cash Flow Statement |
for the Period 1 December 2022 to 31 May 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
Period |
1.12.22 |
to | Year Ended |
31.5.24 | 30.11.22 |
£ | £ |
Profit before taxation | 13,313,373 | 1,563,968 |
Depreciation charges | 1,470,648 | 1,054,659 |
Loss on disposal of fixed assets | 63,690 | 17,844 |
Sundry adjustments | 2 | - |
Finance costs | - | 138 |
Finance income | (96,837 | ) | (6,418 | ) |
14,750,876 | 2,630,191 |
Decrease in stocks | 1,821,677 | 646,524 |
(Increase)/decrease in trade and other debtors | (6,226,615 | ) | 619,466 |
Decrease in trade and other creditors | (9,200,081 | ) | (1,802,341 | ) |
Cash generated from operations | 1,145,857 | 2,093,840 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Period ended 31 May 2024 |
31.5.24 | 1.12.22 |
£ | £ |
Cash and cash equivalents | 1,727,836 | 4,197,437 |
Year ended 30 November 2022 |
30.11.22 | 1.12.21 |
£ | £ |
Cash and cash equivalents | 4,197,437 | 3,772,434 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.12.22 | Cash flow | At 31.5.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 4,197,437 | (2,469,601 | ) | 1,727,836 |
4,197,437 | (2,469,601 | ) | 1,727,836 |
Total | 4,197,437 | (2,469,601 | ) | 1,727,836 |
Communications Plus Ltd (Registered number: 05938802) |
Notes to the Consolidated Financial Statements |
for the Period 1 December 2022 to 31 May 2024 |
1. | STATUTORY INFORMATION |
Communications Plus Ltd is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
Turnover |
Turnover represents net invoiced sales of goods and commissions receivable, excluding value added tax. |
Goodwill |
Goodwill, being the amount paid in connection with the acquisition of businesses in 2010, 2011, 2013 and 2016, is being amortised evenly over its estimated useful life of five years. |
Goodwill in relation to business combinations is also being amortised over its estimated useful life of five years. |
Intangible assets |
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses. |
Amortisation is recognised so as to write off the cost or valuation of assets less residual values over their useful lives on the following bases: |
Website development | 20% on cost |
Database | 20% reducing balance |
Tangible fixed assets |
Short leasehold | - |
Improvements to property | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Investments in associates |
Investments in associate undertakings are recognised at cost. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential. |
Communications Plus Ltd (Registered number: 05938802) |
Notes to the Consolidated Financial Statements - continued |
for the Period 1 December 2022 to 31 May 2024 |
2. | ACCOUNTING POLICIES - continued |
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. |
Taxation |
Taxation for the period comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
3. | EMPLOYEES AND DIRECTORS |
Period |
1.12.22 |
to | Year Ended |
31.5.24 | 30.11.22 |
£ | £ |
Wages and salaries | 8,100,814 | 6,584,754 |
Social security costs | 801,712 | 699,959 |
Other pension costs | 190,953 | 145,760 |
9,093,479 | 7,430,473 |
Communications Plus Ltd (Registered number: 05938802) |
Notes to the Consolidated Financial Statements - continued |
for the Period 1 December 2022 to 31 May 2024 |
3. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the period was as follows: |
Period |
1.12.22 |
to | Year Ended |
31.5.24 | 30.11.22 |
Average number of employees |
Period |
1.12.22 |
to | Year Ended |
31.5.24 | 30.11.22 |
£ | £ |
Directors' remuneration | 264,530 | 192,079 |
Directors' pension contributions to money purchase schemes | 27,333 | 14,000 |
Information regarding the highest paid director for the period ended 31 May 2024 is as follows: |
Period |
1.12.22 |
to |
31.5.24 |
£ |
Emoluments etc | 169,459 |
Pension contributions to money purchase schemes | 9,000 |
4. | OPERATING PROFIT |
The operating profit is stated after charging: |
Period |
1.12.22 |
to | Year Ended |
31.5.24 | 30.11.22 |
£ | £ |
Hire of plant and machinery | 2,344 | 2,070 |
Other operating leases | 99,155 | 29,692 |
Depreciation - owned assets | 321,538 | 267,427 |
Loss on disposal of fixed assets | 63,690 | 17,844 |
Goodwill amortisation | 1,122,994 | 747,226 |
Franchise fee amortisation | 24,334 | 34,666 |
Development costs amortisation | - | 1 |
Computer software amortisation | 1,784 | 5,339 |
Auditors' remuneration | 24,879 | 21,435 |
Communications Plus Ltd (Registered number: 05938802) |
Notes to the Consolidated Financial Statements - continued |
for the Period 1 December 2022 to 31 May 2024 |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
Period |
1.12.22 |
to | Year Ended |
31.5.24 | 30.11.22 |
£ | £ |
Bank loan interest | - | 36 |
Corporation tax interest | - | 102 |
- | 138 |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the period was as follows: |
Period |
1.12.22 |
to | Year Ended |
31.5.24 | 30.11.22 |
£ | £ |
Current tax: |
UK corporation tax | 3,519,522 | 459,541 |
Previous years | - | (78,345 | ) |
Total current tax | 3,519,522 | 381,196 |
Deferred tax | (14,160 | ) | 57,419 |
Tax on profit | 3,505,362 | 438,615 |
Communications Plus Ltd (Registered number: 05938802) |
Notes to the Consolidated Financial Statements - continued |
for the Period 1 December 2022 to 31 May 2024 |
6. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the period is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
Period |
1.12.22 |
to | Year Ended |
31.5.24 | 30.11.22 |
£ | £ |
Profit before tax | 13,313,373 | 1,563,968 |
Profit multiplied by the standard rate of corporation tax in the UK of 23.666 % (2022 - 19 %) |
3,150,743 |
297,154 |
Effects of: |
Expenses not deductible for tax purposes | 28,172 | 18,963 |
Depreciation in excess of capital allowances | 75,692 | 2,048 |
Utilisation of tax losses | - | 21 |
Adjustments to tax charge in respect of previous periods | - | (78,345 | ) |
Deferred tax movement | (14,160 | ) | 57,419 |
Goodwill Amortisation | 265,776 | 141,973 |
Consolidation adjustments | 530 | - |
Structural & Buildings allowance | (1,391 | ) | (618 | ) |
Total tax charge | 3,505,362 | 438,615 |
7. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
8. | DIVIDENDS |
Period |
1.12.22 |
to | Year Ended |
31.5.24 | 30.11.22 |
£ | £ |
Interim | 2,421,000 | 1,000,000 |
Communications Plus Ltd (Registered number: 05938802) |
Notes to the Consolidated Financial Statements - continued |
for the Period 1 December 2022 to 31 May 2024 |
9. | INTANGIBLE FIXED ASSETS |
Group |
Franchise | Development | Computer |
Goodwill | fee | costs | software | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 December 2022 | 4,554,346 | 310,000 | 392 | 42,044 | 4,906,782 |
Additions | 7,186 | - | - | - | 7,186 |
Disposals | (816,568 | ) | (310,000 | ) | - | - | (1,126,568 | ) |
At 31 May 2024 | 3,744,964 | - | 392 | 42,044 | 3,787,400 |
AMORTISATION |
At 1 December 2022 | 1,813,535 | 259,666 | 392 | 39,665 | 2,113,258 |
Amortisation for period | 1,122,994 | 24,334 | - | 1,784 | 1,149,112 |
Eliminated on disposal | (816,568 | ) | (284,000 | ) | - | - | (1,100,568 | ) |
At 31 May 2024 | 2,119,961 | - | 392 | 41,449 | 2,161,802 |
NET BOOK VALUE |
At 31 May 2024 | 1,625,003 | - | - | 595 | 1,625,598 |
At 30 November 2022 | 2,740,811 | 50,334 | - | 2,379 | 2,793,524 |
Company |
Franchise |
Goodwill | fee | Totals |
£ | £ | £ |
COST |
At 1 December 2022 |
Disposals | ( |
) | ( |
) | ( |
) |
At 31 May 2024 |
AMORTISATION |
At 1 December 2022 |
Amortisation for period |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 31 May 2024 |
NET BOOK VALUE |
At 31 May 2024 |
At 30 November 2022 |
Communications Plus Ltd (Registered number: 05938802) |
Notes to the Consolidated Financial Statements - continued |
for the Period 1 December 2022 to 31 May 2024 |
10. | TANGIBLE FIXED ASSETS |
Group |
Improvements | Fixtures |
Short | to | and |
leasehold | property | fittings |
£ | £ | £ |
COST |
At 1 December 2022 | 141,196 | 1,011,068 | 2,090,917 |
Additions | - | - | 6,989 |
Disposals | (141,196 | ) | - | (1,596,068 | ) |
At 31 May 2024 | - | 1,011,068 | 501,838 |
DEPRECIATION |
At 1 December 2022 | 103,552 | 443,603 | 1,925,817 |
Charge for period | 10,701 | 130,028 | 86,526 |
Eliminated on disposal | (114,253 | ) | - | (1,528,075 | ) |
At 31 May 2024 | - | 573,631 | 484,268 |
NET BOOK VALUE |
At 31 May 2024 | - | 437,437 | 17,570 |
At 30 November 2022 | 37,644 | 567,465 | 165,100 |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 December 2022 | 157,211 | 168,415 | 3,568,807 |
Additions | 278,919 | 5,620 | 291,528 |
Disposals | - | (61,027 | ) | (1,798,291 | ) |
At 31 May 2024 | 436,130 | 113,008 | 2,062,044 |
DEPRECIATION |
At 1 December 2022 | 90,079 | 88,390 | 2,651,441 |
Charge for period | 58,944 | 35,339 | 321,538 |
Eliminated on disposal | - | (45,281 | ) | (1,687,609 | ) |
At 31 May 2024 | 149,023 | 78,448 | 1,285,370 |
NET BOOK VALUE |
At 31 May 2024 | 287,107 | 34,560 | 776,674 |
At 30 November 2022 | 67,132 | 80,025 | 917,366 |
Communications Plus Ltd (Registered number: 05938802) |
Notes to the Consolidated Financial Statements - continued |
for the Period 1 December 2022 to 31 May 2024 |
10. | TANGIBLE FIXED ASSETS - continued |
Company |
Improvements | Fixtures |
Short | to | and |
leasehold | property | fittings |
£ | £ | £ |
COST |
At 1 December 2022 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 May 2024 |
DEPRECIATION |
At 1 December 2022 |
Charge for period |
Eliminated on disposal | ( |
) | ( |
) |
At 31 May 2024 |
NET BOOK VALUE |
At 31 May 2024 |
At 30 November 2022 |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 December 2022 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 May 2024 |
DEPRECIATION |
At 1 December 2022 |
Charge for period |
Eliminated on disposal | ( |
) | ( |
) |
At 31 May 2024 |
NET BOOK VALUE |
At 31 May 2024 |
At 30 November 2022 |
Communications Plus Ltd (Registered number: 05938802) |
Notes to the Consolidated Financial Statements - continued |
for the Period 1 December 2022 to 31 May 2024 |
11. | FIXED ASSET INVESTMENTS |
Group |
Interest |
in |
associate |
£ |
COST |
At 1 December 2022 | 3 |
Disposals | (3 | ) |
At 31 May 2024 | - |
NET BOOK VALUE |
At 31 May 2024 | - |
At 30 November 2022 | 3 |
Interest in associate |
The investment in the above associate company has not been presented in the financial statements due to the balances being immaterial for the period to 31 May 2024. |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 December 2022 |
Additions |
At 31 May 2024 |
NET BOOK VALUE |
At 31 May 2024 |
At 30 November 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: Ferryboat House, Ferryboat Lane, Sunderland, SR5 3JN |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Ferryboat House, Ferryboat Lane, Sunderland, SR5 3JN |
Nature of business: |
% |
Class of shares: | holding |
Communications Plus Ltd (Registered number: 05938802) |
Notes to the Consolidated Financial Statements - continued |
for the Period 1 December 2022 to 31 May 2024 |
11. | FIXED ASSET INVESTMENTS - continued |
12. | STOCKS |
Group | Company |
31.5.24 | 30.11.22 | 31.5.24 | 30.11.22 |
£ | £ | £ | £ |
Stocks | 2,566 | 1,824,243 |
13. | DEBTORS |
Group | Company |
31.5.24 | 30.11.22 | 31.5.24 | 30.11.22 |
£ | £ | £ | £ |
Amounts falling due within one year: |
Trade debtors | 10,670,002 | 4,483,621 |
Amounts owed by group undertakings | - | - |
Other debtors | 172,442 | 58,351 |
Associated company loan | 1,225,995 | 1,170,000 | 1,225,995 | 1,170,000 |
Prepayments and accrued income | 2,667,760 | 2,695,772 |
14,736,199 | 8,407,744 |
Amounts falling due after more than one | year: |
Other debtors | - | 101,840 |
Aggregate amounts | 14,736,199 | 8,509,584 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.5.24 | 30.11.22 | 31.5.24 | 30.11.22 |
£ | £ | £ | £ |
Trade creditors | 1,774,874 | 9,163,679 |
Tax | 2,729,522 | 194,603 |
Social security and other taxes | 691,495 | 1,092,767 |
VAT | 135,584 | 27,982 | - | - |
Other creditors | 501,591 | 620,422 |
Directors' current accounts | 73 | 81,046 | 73 | 81,046 |
Accruals and deferred income | 656,413 | 1,991,395 |
6,489,552 | 13,171,894 |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
31.5.24 | 30.11.22 |
£ | £ |
Trade creditors | 8,494 | 72,287 |
Communications Plus Ltd (Registered number: 05938802) |
Notes to the Consolidated Financial Statements - continued |
for the Period 1 December 2022 to 31 May 2024 |
16. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Non-cancellable operating | leases |
31.5.24 | 30.11.22 |
£ | £ |
Within one year | 196,724 | 735,237 |
Between one and five years | 222,475 | 919,714 |
419,199 | 1,654,951 |
Company |
Non-cancellable operating | leases |
31.5.24 | 30.11.22 |
£ | £ |
Within one year |
Between one and five years |
17. | SECURED DEBTS |
The following secured debts are included within creditors: |
Company |
31.5.24 | 30.11.22 |
£ | £ |
- | 7,585,987 |
The personal guarantee given by the director, S M Roberts, covering the balances owed to the franchise provider expired on 31 May 2024. |
18. | PROVISIONS FOR LIABILITIES |
Group | Company |
31.5.24 | 30.11.22 | 31.5.24 | 30.11.22 |
£ | £ | £ | £ |
Deferred tax | 86,893 | 101,053 | 84,382 | 94,939 |
Group |
Deferred |
tax |
£ |
Balance at 1 December 2022 | 101,053 |
Provided during period | (14,160 | ) |
Balance at 31 May 2024 | 86,893 |
Communications Plus Ltd (Registered number: 05938802) |
Notes to the Consolidated Financial Statements - continued |
for the Period 1 December 2022 to 31 May 2024 |
18. | PROVISIONS FOR LIABILITIES - continued |
Company |
Deferred |
tax |
£ |
Balance at 1 December 2022 |
Provided during period | ( |
) |
Balance at 31 May 2024 |
The provision for deferred tax is made entirely in relation to accelerated capital allowances and pension provision timing differences. |
19. | CALLED UP SHARE CAPITAL |
Allotted and issued: |
Number: | Class: | Nominal | 31.5.24 | 30.11.22 |
value: | £ | £ |
Share capital 1 | £1 | 100 | 100 |
20. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1 December 2022 | 4,896,823 |
Profit for the period | 9,808,011 |
Dividends | (2,421,000 | ) |
At 31 May 2024 | 12,283,834 |
Company |
Retained |
earnings |
£ |
At 1 December 2022 |
Profit for the period |
Dividends | ( |
) |
At 31 May 2024 |
21. | PENSION COMMITMENTS |
The group companies operate defined contribution pension schemes. The assets of the schemes are held in a separately administered fund. Contributions payable for the year are charged in the profit and loss account and totalled £190,953 (2022: £145,760). |
Communications Plus Ltd (Registered number: 05938802) |
Notes to the Consolidated Financial Statements - continued |
for the Period 1 December 2022 to 31 May 2024 |
22. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to directors subsisted during the period ended 31 May 2024 and the year ended 30 November 2022: |
31.5.24 | 30.11.22 |
£ | £ |
S M Roberts and Mrs L M Roberts |
Balance outstanding at start of period | - | (120 | ) |
Amounts advanced | 1,632,803 | 351,624 |
Amounts repaid | (1,632,803 | ) | (351,504 | ) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of period | - | - |
23. | RELATED PARTY DISCLOSURES |
Rent totalling £56,250 (2022: £37,500) was paid to a pension scheme for office space during the year, of which one of the directors is a beneficiary. |
Other related parties |
31.5.24 | 30.11.22 |
£ | £ |
Sales | 87,259 | 17,173 |
Purchases | 12,820 | 14,000 |
Amount due from related party | 1,254,801 | 1,172,812 |