Registered number:
FOR THE YEAR ENDED 30 JUNE 2024
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OLM GROUP LIMITED
COMPANY INFORMATION
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OLM GROUP LIMITED
CONTENTS
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OLM GROUP LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
The Group is principally engaged in the provision of software products, information services and business consultancy to the UK Care sector across local government, health and providers.
The trading results for the year and the Group and Company’s financial position at the end of the year are shown in the attached financial statements.
The directors use the following key performance indicators to assess the performance of the Group: - • Operating profit/loss • Gross profit • Net profit per employee Business Overview The Group offers a unique complimentary range of solutions covering technology infrastructure; business application software; information & data management services; specialist business consultancy; specialist Cyber Security services; and knowledge and learning solutions across the health and care sector. The Group today comprises: • OLM Systems Limited • Pavilion Publishing and Media Ltd • Valuing Care Ltd OLM Group businesses bring over 33 years’ experience of working across the care sector, demonstrating to our customers our long term commitment to them and our chosen markets. OLM Group offers a range of products and service to over 500 organisations across health, local government and the independent care sector. With demand for care and support services projected to continue to rise, OLM Group strategy is to invest in new products and solutions to respond to the changing nature and structure of the care market in the UK. The Group has established a strong market position in the UK care market and continues to expand its customer base across all market segments. Driven by a passion to deliver an unrivalled customer experience, allied to a culture of innovation and creativity, the Group is well positioned to deliver further growth in the coming years. The Group will continue to invest in the business areas that offer improved margin opportunities and stable revenue streams, while aiming to extend OLM’s market reach.
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OLM GROUP LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
Operational and Financial Overview
Continued economic uncertainty and its impact on public expenditure and local government spend continues to have an impact on parts of the business. However, following the launch of its enhanced portfolio of SAAS products, knowledge and content services, OLM Group continued to demonstrate a strong performance overall. Pavilion Publishing and Media Ltd has fully transitioned to multi-media business and continues to perform in line with management expectations. While some market sectors were still impacted by financial pressures, the revised strategy put in place the previous year has seen a significant shift to online activity. As expected this has led to a increase in customer and market engagement with a positive impact through the year, demonstrating that these innovations will continue to open new revenue streams going forward. Pavilion’s strategy remains focused on building its Digital Engagement, Content and Data products suite as it adjusts to structural changes impacting the publishing market. This will strengthen the Group's ability to maximise cross selling opportunities across its market sectors. Overall, the Group’s performance in the year was in line with the Group's strategy of becoming the leading SAAS solution supplier across the care sector, for both technology and knowledge services. Forward contract values continue to grow with further growth expected on the back of a strengthening pipeline. Business Outlook The Group prides itself on its track record of organic re-investment to grow the business, with no external shareholders the company is able to focus its energies and resources to deliver long term value. The Group will continue to pursue a strategy that focuses on the medium and long-term to position itself across the market. This financial stability allows the Group to direct investment and resources on the future needs of our customers and the shape of the care market. The Group will invest in innovative products and services in pursuit of our strategy to grow the business by focusing on high value and high margin solutions across a diverse market of care, health, education and independent sector. The Group remains well positioned to deliver further growth and revenue diversification, as the market continues to evolve in response to the governments reform and digital first agenda.
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OLM GROUP LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
Overview
The Group and Company uses various financial instruments, which include amounts owed to/from group companies, cash 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 finance for the Group's operations. The existence of these financial instruments exposes the Group and Company to a number of financial risks, which are described in more detail below. The main risks arising from the financial instruments are liquidity risk, interest risk and credit risk. The directors review and agree policies for managing each of these risks and they are summarised below. Liquidity risk The Group and Company seek to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. Interest rate risk The Group and Company finance operations through a mixture of retained profits and amounts owed to other group companies. Interest is payable on amounts owed to other group companies at bank rate plus 3%. The Group's cash assets are held in floating rate accounts. Trade debtors and creditors do not attract interest and are therefore subject to fair value interest rate risk. Credit risk The Group and Company's principal financial assets are cash and trade debtors. The credit risk associated with the cash balances is managed by the Group and Company monitoring the financial position of the counter parties involved, therefore the principal credit risk arises from its debtors. This risk is mitigated through the performance of tight credit control procedures and regular review of non-current debt by management.
The trading results for the year and the Group and Company's financial position at the end of the year are shown in the attached financial statements.
The directors use the following key performance indicators to assess the performance of the Group:-
- operating profit/(loss) (see statement of comprehensive income) - gross profit (see statement of comprehensive income) - net profit/(loss) per employee (see statement of comprehensive income and notes to the financial statements)
This report was approved by the board on 16 December 2024 and signed on its behalf.
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OLM GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
The directors present their report and the financial statements for the year ended 30 June 2024.
The directors who served during the year were:
The loss for the year, after taxation and minority interests, amounted to £747,641 (2023 - £80,659).
The directors do not recommend payment of a dividend (2023 - £Nil).
The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make 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 Group will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Group remains well positioned to deliver further growth and revenue diversification, as the market continues to consolidate and reforms to meet the government’s austerity programme and new legislative initiatives.
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OLM GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
There have been no significant events affecting the Group since the year end.
The auditors, Ryecroft Glenton, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on
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OLM GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF OLM GROUP LIMITED
We have audited the financial statements of OLM Group Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 30 June 2024, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
We draw attention to note 2.3 in the financial statements. The Group's ability to meet short-term operating cash requirements is reliant upon the renewal of its long-term overdraft facility. As stated in note 2.3, these events or conditions, along with the other matters as set forth in note 2.3, indicate that a material uncertainty exists that may cast significant doubt on the Group's ability to continue as a going concern. Our opinion is not modified in respect of this matter.
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. Our evaluation of the directors' assessment of the Group's ability to continue to adopt the going concern basis of accounting included a review.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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OLM GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF OLM GROUP LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.
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OLM GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF OLM GROUP LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group financial statements.
The 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, 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: • the responsible individual 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 Group through discussions with directors and other management, and from our commercial knowledge and experience of the sector in which the Group operates; • 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 Group, including the Companies Act 2006 and taxation legislation; • we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and • we ensured that the identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the Group 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 and 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.
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OLM GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF OLM GROUP LIMITED (CONTINUED)
To address the risk of fraud through management bias and override of controls, we:
• performed analytical procedures to identify any unusual or unexpected relationships; • tested journal entries to identify unusual transactions; and • assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias. 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 where appropriate. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants
Statutory Auditors
32 Portland Terrace
NE2 1QP
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OLM GROUP LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
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OLM GROUP LIMITED
REGISTERED NUMBER: 03229463
CONSOLIDATED BALANCE SHEET
AS AT 30 JUNE 2024
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OLM GROUP LIMITED
REGISTERED NUMBER: 03229463
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 30 JUNE 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 16 December 2024.
The notes on pages 18 to 39 form part of these financial statements.
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OLM GROUP LIMITED
REGISTERED NUMBER: 03229463
COMPANY BALANCE SHEET
AS AT 30 JUNE 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 18 to 39 form part of these financial statements.
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