REGISTERED NUMBER: 12335790 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 30 June 2024 |
for |
Talbac Limited |
REGISTERED NUMBER: 12335790 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 30 June 2024 |
for |
Talbac Limited |
Talbac Limited (Registered number: 12335790) |
Contents of the Consolidated Financial Statements |
for the Year Ended 30 June 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 Statement of Financial Position | 11 |
Company Statement of Financial Position | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Statement of Cash Flows | 15 |
Company Statement of Cash Flows | 16 |
Notes to the Statements of Cash Flows | 17 |
Notes to the Consolidated Financial Statements | 18 |
Talbac Limited |
Company Information |
for the Year Ended 30 June 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: | Alison Elliott BFP ACA FCCA MAAT |
AUDITORS: |
Chartered Accountants and Statutory Auditor |
1 Minster Court |
Tuscam Way |
Camberley |
Surrey |
GU15 3YY |
Talbac Limited (Registered number: 12335790) |
Group Strategic Report |
for the Year Ended 30 June 2024 |
The directors present their strategic report of the company and the group for the year ended 30 June 2024. |
REVIEW OF BUSINESS |
During the period ended 30 June 2020 the company purchased the entire issued share capital of Adbac Ltd, which became the company's sole subsidiary, and has been consolidated into the group accounts from this point. |
The company acts as a holding company for the group, and has no business activity. |
At the statement of financial position date the gross assets of the company were £7,576,019 (2023: £7,570,172), net cash at bank was £7,724 (2023: £1,877) and net assets were £7,552,119 (2023: £7,556,272). |
Group sales turnover in the financial year 2024 under review was £26,831,629 (2023: £21,262,987) whilst trading margins were 7% (2023: 8%). |
Geographical sales in Europe were increased at 34% v 21% in previous year. Middle East was down at 34% v 39% whilst sales in Asia were down at 10% v 18%. Sales in the Americas were stable at 22%. |
At the statement of financial position date the gross assets of the group were £8,563,125 (2023: £7,061,071), net cash at bank was £4,255,988 (2023: £3,411,732) and net assets were £2,588,593 (2023: £2,051,324). |
Business continues to be challenging in all origins and sourcing of product is still key. We have continued to find good supply for our customer base and believe for 2025 there will be some softening in the market on prices, but they will still remain on the high side compared with levels pre-covid. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The main risks facing the business are as follows: |
Liquidity risk |
The group seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. |
Credit risk |
The group reviews its credit policies regarding trade debtors on a regular basis to ensure terms are adhered to. |
Currency risk |
The group hedges against currency risks in relation to its functional currency, the US Dollar. |
ON BEHALF OF THE BOARD: |
Talbac Limited (Registered number: 12335790) |
Report of the Directors |
for the Year Ended 30 June 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 30 June 2024. |
PRINCIPAL ACTIVITY |
The company's principal activity in the year under review was that of a holding company. |
The group's principal activities include buying and processing unmanufactured tobacco via a strong network of international suppliers, then selling the tobacco to customers across the globe. The group does not make a finished consumable product. |
DIVIDENDS |
No dividends will be distributed for the year ended 30 June 2024. |
FUTURE DEVELOPMENTS |
We have managed to provide good supply for our customer base, despite the challenging circumstances and we expect there will be an easing on supply in FY25. Our carry over for FY25 is good and we expect to keep our financials consistent. We continue to secure stock for our customer base, despite the short supply and carry over for FY25 is good. We expect FY25 to be similar to FY24. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 July 2023 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. |
Talbac Limited (Registered number: 12335790) |
Report of the Directors |
for the Year Ended 30 June 2024 |
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. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Talbac Limited |
Opinion |
We have audited the financial statements of Talbac Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows, Company Statement of Cash Flows and Notes to the Statements of Cash Flows, 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 30 June 2024 and of the group's 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. |
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 |
Talbac Limited |
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 |
Talbac Limited |
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: |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following: |
- The nature of the industry and sector the company and the group is in, their control environments and business |
performance, including the design of the company's and the group's policies and key drivers; |
- Results of our enquiries of management about their own assessment of the risks of irregularities; |
- Any matters we identified having reviewed the company's and the group's policies and procedures relating to: |
- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; |
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; |
- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; and |
- The matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. |
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisations for fraud. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. |
Our procedures to respond to risks identified included the following: |
- Enquiries of management and staff concerning any instances of non-compliance with laws; |
- Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; and |
- In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; checking internal controls are being followed and assessing suitability; and assessing the judgements made in making accounting estimates. |
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is |
higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through 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 Report of the Auditors. |
Report of the Independent Auditors to the Members of |
Talbac Limited |
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 |
Chartered Accountants and Statutory Auditor |
1 Minster Court |
Tuscam Way |
Camberley |
Surrey |
GU15 3YY |
Talbac Limited (Registered number: 12335790) |
Consolidated Income Statement |
for the Year Ended 30 June 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 4 | 26,831,629 | 21,262,987 |
Cost of sales | (24,903,932 | ) | (19,556,432 | ) |
GROSS PROFIT | 1,927,697 | 1,706,555 |
Administrative expenses | (1,274,507 | ) | (954,990 | ) |
653,190 | 751,565 |
Other operating income | 50,887 | 6,423 |
OPERATING PROFIT | 7 | 704,077 | 757,988 |
Interest receivable and similar income | 146,854 | 76,587 |
850,931 | 834,575 |
Amounts written off investments | 8 | (1,700 | ) | (1,700 | ) |
849,231 | 832,875 |
Interest payable and similar expenses | 9 | - | (148 | ) |
PROFIT BEFORE TAXATION | 849,231 | 832,727 |
Tax on profit | 10 | (311,962 | ) | (242,252 | ) |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 537,269 | 590,475 |
Talbac Limited (Registered number: 12335790) |
Consolidated Other Comprehensive Income |
for the Year Ended 30 June 2024 |
2024 | 2023 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 537,269 | 590,475 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
537,269 |
590,475 |
Total comprehensive income attributable to: |
Owners of the parent | 537,269 | 590,475 |
Talbac Limited (Registered number: 12335790) |
Consolidated Statement of Financial Position |
30 June 2024 |
2024 | 2023 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 13 | 145,162 | 471,105 |
Tangible assets | 14 | 10,068 | 12,556 |
Investments | 15 | 6,800 | 8,500 |
162,030 | 492,161 |
CURRENT ASSETS |
Debtors | 16 | 4,145,107 | 3,157,178 |
Cash at bank and in hand | 4,255,988 | 3,411,732 |
8,401,095 | 6,568,910 |
CREDITORS |
Amounts falling due within one year | 17 | (5,974,532 | ) | (5,009,747 | ) |
NET CURRENT ASSETS | 2,426,563 | 1,559,163 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
2,588,593 |
2,051,324 |
CAPITAL AND RESERVES |
Called up share capital | 19 | 100 | 100 |
Retained earnings | 20 | 2,588,493 | 2,051,224 |
SHAREHOLDERS' FUNDS | 2,588,593 | 2,051,324 |
The financial statements were approved by the Board of Directors and authorised for issue on 10 March 2025 and were signed on its behalf by: |
L S Smith - Director |
Talbac Limited (Registered number: 12335790) |
Company Statement of Financial Position |
30 June 2024 |
2024 | 2023 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 13 |
Tangible assets | 14 |
Investments | 15 |
CURRENT ASSETS |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 17 | ( |
) | ( |
) |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Retained earnings | 20 |
SHAREHOLDERS' FUNDS |
Company's loss for the financial year | (4,153 | ) | (4,153 | ) |
The financial statements were approved by the Board of Directors and authorised for issue on |
Talbac Limited (Registered number: 12335790) |
Consolidated Statement of Changes in Equity |
for the Year Ended 30 June 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 July 2022 | 100 | 1,460,749 | 1,460,849 |
Changes in equity |
Total comprehensive income | - | 590,475 | 590,475 |
Balance at 30 June 2023 | 100 | 2,051,224 | 2,051,324 |
Changes in equity |
Total comprehensive income | - | 537,269 | 537,269 |
Balance at 30 June 2024 | 100 | 2,588,493 | 2,588,593 |
Talbac Limited (Registered number: 12335790) |
Company Statement of Changes in Equity |
for the Year Ended 30 June 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 July 2022 |
Changes in equity |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 30 June 2023 |
Changes in equity |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 30 June 2024 |
Talbac Limited (Registered number: 12335790) |
Consolidated Statement of Cash Flows |
for the Year Ended 30 June 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 805,047 | 1,830,872 |
Interest paid | - | (148 | ) |
Tax paid | (127,252 | ) | (311,204 | ) |
Net cash from operating activities | 677,795 | 1,519,520 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (2,218 | ) | (11,183 | ) |
Interest received | 146,854 | 76,587 |
Net cash from investing activities | 144,636 | 65,404 |
Cash flows from financing activities |
Purchases/(repayment) of derivatives | 21,825 | (116,178 | ) |
Net cash from financing activities | 21,825 | (116,178 | ) |
Increase in cash and cash equivalents | 844,256 | 1,468,746 |
Cash and cash equivalents at beginning of year |
2 |
3,411,732 |
1,942,986 |
Cash and cash equivalents at end of year |
2 |
4,255,988 |
3,411,732 |
Talbac Limited (Registered number: 12335790) |
Company Statement of Cash Flows |
for the Year Ended 30 June 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Net cash from operating activities |
Increase in cash and cash equivalents | 5,847 | 847 |
Cash and cash equivalents at beginning of year |
2 |
1,030 |
Cash and cash equivalents at end of year |
2 |
7,724 |
1,877 |
Talbac Limited (Registered number: 12335790) |
Notes to the Statements of Cash Flows |
for the Year Ended 30 June 2024 |
1. | RECONCILIATION OF PROFIT/LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
Group |
2024 | 2023 |
£ | £ |
Profit before taxation | 849,231 | 832,727 |
Depreciation charges | 330,649 | 329,581 |
Amounts written off investments | 1,700 | 1,700 |
Finance costs | - | 148 |
Finance income | (146,854 | ) | (76,587 | ) |
1,034,726 | 1,087,569 |
(Increase)/decrease in trade and other debtors | (1,009,754 | ) | 4,667,124 |
Increase/(decrease) in trade and other creditors | 780,075 | (3,923,821 | ) |
Cash generated from operations | 805,047 | 1,830,872 |
Company |
2024 | 2023 |
£ | £ |
Loss before taxation | ( |
) | ( |
) |
Increase in trade and other creditors |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statements of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Group | Company |
Year ended 30 June 2024 |
30.6.24 | 1.7.23 | 30.6.24 | 1.7.23 |
£ | £ | £ | £ |
Cash and cash equivalents | 4,255,988 | 3,411,732 | 7,724 | 1,877 |
Year ended 30 June 2023 |
30.6.23 | 1.7.22 | 30.6.23 | 1.7.22 |
£ | £ | £ | £ |
Cash and cash equivalents | 3,411,732 | 1,942,986 | 1,877 | 1,030 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
Group |
At 1.7.23 | Cash flow | At 30.6.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 3,411,732 | 844,256 | 4,255,988 |
3,411,732 | 844,256 | 4,255,988 |
Total | 3,411,732 | 844,256 | 4,255,988 |
Talbac Limited (Registered number: 12335790) |
Notes to the Statements of Cash Flows |
for the Year Ended 30 June 2024 |
3. | ANALYSIS OF CHANGES IN NET FUNDS - continued |
Company |
At 1.7.23 | Cash flow | At 30.6.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 3,411,732 | 844,256 | 4,255,988 |
3,411,732 | 844,256 | 4,255,988 |
Total | 3,411,732 | 844,256 | 4,255,988 |
1. | STATUTORY INFORMATION |
Talbac Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The company and group financial statements are prepared in pounds sterling (£), which is the currency of the country in which the company and group is registered, and the functional currency of the company. The functional currency of the group is US Dollars. Monetary amounts in these financial statements are rounded to the nearest £. |
Basis of consolidation |
The group financial statements consolidate the financial statements of Talbac Limited and its subsidiary drawn up to 30 June 2024. |
The subsidiary has been consolidated into the group accounts on a cost basis from the date of its acquisition on 11 December 2019, being the date on which the Group obtained control. The company will continue to be consolidated until the date that such control ceases. Control comprises the power to govern the financial and operating policies of the investor so as to obtain benefit from its activities. |
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 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, 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. |
Goodwill |
Talbac Limited (Registered number: 12335790) |
Notes to the Consolidated Financial Statements |
for the Year Ended 30 June 2024 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Fixtures and fittings | - |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the 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 statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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 year 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. |
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 are included in the Income Statement for the period. |
Operating leases |
Rentals payable under operating leases, including any lease incentives received, are charged to the Income Statement on a straight line basis over the term of the relevant lease. |
Retirement benefits |
Contributions are made to directors' and staff personal pension schemes which are charged to the Income Statement when they are paid, and to a defined contribution scheme for staff which are charged to the Income Statement in the period to which they relate. |
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 Statement of Financial Position when the company becomes party to the contractual provisions of the instrument. |
Derivatives and hedging |
Derivatives, including hedges, are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair value at each reporting end date. The resulting gain or loss is recognised in the Income Statement immediately. |
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability. |
Talbac Limited (Registered number: 12335790) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2024 |
3. | JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
Judgements in applying accounting policies |
In the application of the company's and the group's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
In preparing these financial statements, the directors have made the following judgements: |
To determine whether there are indicators of impairment of the company's and the group's tangible and intangible fixed assets and fixed asset investments. Factors taken into consideration reaching a decision include the economic viability and expected future financial performance of the asset. |
To determine whether provisions such as for doubtful debts are required. The directors look at the likelihood of these provisions crystallising by assessing all the information available at the time in determining the decision. |
Key sources of estimation uncertainties |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. |
Particular estimation uncertainties are as follows: |
Tangible fixed assets are depreciated over their estimated useful lives taking into account residual values where appropriate. The actual lives may depend on a number of factors including product life and replacement policies. |
The group's hedging cover via its forward contracts is estimated by the directors based on the expectations of future cash flows and currency requirements, which depend on numerous factors including expected currency movements and anticipated trading volumes. |
4. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by geographical market is given below: |
2024 | 2023 |
£ | £ |
Europe | 9,122,754 | 4,465,227 |
Asia | 2,683,163 | 3,827,338 |
The Americas | 5,902,958 | 4,677,857 |
The Middle East | 9,122,754 | 8,292,565 |
26,831,629 | 21,262,987 |
5. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 372,217 | 315,567 |
Social security costs | 41,175 | 33,508 |
Other pension costs | 180,187 | 36,243 |
593,579 | 385,318 |
Talbac Limited (Registered number: 12335790) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2024 |
5. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
2024 | 2023 |
Management | 3 | 6 |
Administration | 2 | 2 |
Where employees are employed by both companies in the group, where relevant they have been listed twice in respect of their roles in each company. |
The figures above are for the group - the company had 3 employees during the year (2023: 3), all being management. |
Pension costs totalling £nil (2023: £381) were payable as at the statement of financial position date. |
6. | DIRECTORS' EMOLUMENTS |
2024 | 2023 |
£ | £ |
Directors' remuneration | 318,000 | 268,500 |
Directors' pension contributions to money purchase schemes | 178,427 | 34,483 |
Information regarding the highest paid director is as follows: |
2024 | 2023 |
£ | £ |
Emoluments etc | 150,000 | 120,000 |
Pension contributions to money purchase schemes | 78,427 | 16,283 |
The directors of the company are considered to constitute the key management of the group, therefore the remuneration above is also the key management remuneration. No remuneration was paid by the company during the year (2023: none), therefore the above figures are solely for the group. |
7. | OPERATING PROFIT |
The operating profit is stated after charging: |
2024 | 2023 |
£ | £ |
Other operating leases | 6,600 | 6,600 |
Depreciation - owned assets | 4,706 | 3,638 |
Goodwill amortisation | 325,943 | 325,943 |
Audit fees | 6,300 | 6,300 |
Foreign exchange differences | 123,414 | 65,685 |
The element of the audit fees above which is in respect of the company is £1,300 (2023: £1,300). |
8. | AMOUNTS WRITTEN OFF INVESTMENTS |
2024 | 2023 |
£ | £ |
Other gains and losses | 1,700 | 1,700 |
Talbac Limited (Registered number: 12335790) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2024 |
9. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Interest payable | - | 148 |
10. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax | 311,962 | 242,252 |
Tax on profit | 311,962 | 242,252 |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax | 849,231 | 832,727 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 25 %) |
212,308 |
208,182 |
Effects of: |
Expenses not deductible for tax purposes | 99,032 | 89,578 |
Capital allowances in excess of depreciation | - | (2,271 | ) |
Depreciation in excess of capital allowances | 622 | - |
Effect of change in tax rates | - | (53,237 | ) |
Total tax charge | 311,962 | 242,252 |
No tax was chargeable in relation to the company during the period. The analysis above is of the group tax charge. |
11. | 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. |
12. | HEDGING RELATIONSHIPS AND FOREIGN CURRENCIES |
The group uses forward exchange contracts to manage its US Dollar currency risks, which are accounted for in the financial statements at fair value. The fair value of these contacts as at 30 June 2023 was £nil (2023: asset of £21,825). |
A net loss on the change in the fair value of hedging instruments in the sum of £21,825 (2023: gain of £116,178) as recognised in the income statement for the year. |
During the year the group recognised an overall loss of £123,414 (2023: £65,685) in relation to foreign currency movements. |
Talbac Limited (Registered number: 12335790) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2024 |
13. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 July 2023 |
and 30 June 2024 | 1,629,717 |
AMORTISATION |
At 1 July 2023 | 1,158,612 |
Amortisation for year | 325,943 |
At 30 June 2024 | 1,484,555 |
NET BOOK VALUE |
At 30 June 2024 | 145,162 |
At 30 June 2023 | 471,105 |
14. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
and |
fittings |
£ |
COST |
At 1 July 2023 | 46,237 |
Additions | 2,218 |
At 30 June 2024 | 48,455 |
DEPRECIATION |
At 1 July 2023 | 33,681 |
Charge for year | 4,706 |
At 30 June 2024 | 38,387 |
NET BOOK VALUE |
At 30 June 2024 | 10,068 |
At 30 June 2023 | 12,556 |
Talbac Limited (Registered number: 12335790) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2024 |
15. | FIXED ASSET INVESTMENTS |
Group |
Unlisted |
investments |
£ |
COST |
At 1 July 2023 |
and 30 June 2024 | 17,000 |
PROVISIONS |
At 1 July 2023 | 8,500 |
Provision for year | 1,700 |
At 30 June 2024 | 10,200 |
NET BOOK VALUE |
At 30 June 2024 | 6,800 |
At 30 June 2023 | 8,500 |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 July 2023 |
and 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
At 30 June 2023 |
The group or the company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
Subsidiary |
Registered office: 3 Grove Farm, The Street, Crookham Village, Hampshire, GU51 5RX |
Nature of business: |
% |
Class of shares: | holding |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Talbac Limited (Registered number: 12335790) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2024 |
16. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group |
2024 | 2023 |
£ | £ |
Trade debtors | 2,364,879 | 2,961,321 |
Other debtors | 3,216 | 20,941 |
Derivatives | - | 21,825 |
VAT | 2,061 | 1,852 |
Prepayments and accrued income | 1,774,951 | 151,239 |
4,145,107 | 3,157,178 |
17. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Trade creditors | 4,695,562 | 3,655,071 |
Amounts owed to group undertakings | - | - |
Tax | 311,962 | 127,252 |
Other creditors | - | 786,631 |
Accruals | 967,008 | 440,793 |
5,974,532 | 5,009,747 |
18. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Non-cancellable operating | leases |
2024 | 2023 |
£ | £ |
Within one year | 550 | 550 |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | £1 | 100 | 100 |
The company has in total 100 Ordinary shares in issue. All of the shares have full voting rights and there are no restrictions in place in relation to dividends or repayment of capital. |
Talbac Limited (Registered number: 12335790) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2024 |
20. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1 July 2023 | 2,051,224 |
Profit for the year | 537,269 |
At 30 June 2024 | 2,588,493 |
Company |
Retained |
earnings |
£ |
At 1 July 2023 |
Deficit for the year | ( |
) |
At 30 June 2024 |
21. | SECURITIES AND CHARGES |
There are fixed and floating charges in place in favour of the company's and its subsidiary's bank, over all the assets and undertakings of each entity. There is also an unlimited multilateral guarantee in place covering both the company and its subsidiary. |