Registered number:
For the Year Ended
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Company Information
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Contents
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Group Strategic Report
For the Year Ended 30 June 2024
The Company was incorporated on 1 March 2018 and had subsequently acquired the entire share capital of Traditional Brick & Stone Ltd and owns 75% shareholding in TBS Specialists Products Ltd, 75% shareholding in Central Electrical Distributors Ltd and 90% shareholding in TBS Cladding Solutions Ltd. The results of the acquiree's are consolidated in to these financial accounts from the date of acquisition.
Principal activity The principal activity of the Company is that of a holding company and the principal activity of the Group is that of the wholesale and supply of bricks, roofing tiles and solar panel units for private dwellings, electrical wholesale and the manufacture and distribution of brick cladding
Subsidiary companies in the wholesale and supply of bricks, roofing tiles and solar panels
The product range is continually monitored and expanded to satisfy demand and new developments, particularly within the solar market. New customers have been brought into the business which has made a positive difference to the product and service offering of the company and the group. This has led to further opportunities for companies within the group to work together on larger projects. Subsidiary in brick importing The UK construction market suffered a contraction in the second half of 2023 and throughout 2024, resulting in lower volumes of bricks imported and sold than in previous years. Despite the challenging market conditions, TBS did not suffer as much of a loss in turnover as some of its competitors and the board is pleased with the results delivered. The company is in a strong position to quickly respond to the uplift in the market forecasted for 2025. Subsidiary in the wholesale of electrical products The business has seen expansive growth and now operates from 5 sites across the country. There is focus to now establish these sites and build on their strong brand and relationships they have with both the supply and customer chain. Opportunities are developing for the business to work together with other subsidiaries in the group, within the solar market in particular. Subsidiary in the manufacture and distribution of brick cladding The business has seen growth in 2024 and has returned the group some strong profits despite the competitive market place and is optimistic for future developments of new products and markets alongside the current product range. Strong results are achieved from both E-commerce and commercial projects
The Directors consider the turnover and operating profit to be key performance indicators of the business.
The Directors consider the results for the year and the financial position of the company at the year end to be satisfactory
The Directors closely monitor complaints and returns to ensure that high quality and customer service are maintained.
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Group Strategic Report (continued)
For the Year Ended 30 June 2024
Financial, liquidity and credit
The Group’s activities expose it to a number of financial risks, such as credit, liquidity and cash flow risk. The Group’s principal financial assets are bank balances and cash, trade and other receivables. The Group has no significant concentration of credit risk, with exposure spread over a number of industries and sectors. The credit risk is primarily from trade receivables. The amounts presented in the balance sheet are net of amounts deemed to be doubtful receivables. The Group spreads any risk from reliance with a small amount of customers and maintains strong relationships to assist in the speedy recovery of amounts due. The Group ensures that good records are kept and that the credit control function is well focused for prompt collections.
The Directors, present their statement of compliance with the duty under Section 172(1) of the Companies Act 2006 for the year ended 30 June 2024. This statement, forming part of the Group's strategic report, aims to provide stakeholders with an understanding of the Directors' decision-making processes and their dedication to the long-term success of the Company.
As the board of Directors of TBS Group Holdings Ltd, we acknowledge our duty under Section 172 of the Companies Act 2006 to act in the way we consider, in good faith, would be most likely to promote the success of the Group for the benefit of its members as a whole. In doing so, we have regard to the likely consequences of any decision in the long term, the interests of the Group's employees, the need to foster the Group's business relationships with suppliers, customers and others, the impact of the Group's operations on the community and the environment, the desirability of the Group maintaining a reputation for high standards of business conduct, and the need to act fairly between members of the Group. During the year, the board has taken significant steps to ensure that the Group and its subsidiaries - Traditional Brick & Stone Ltd, TBS Specialists Products Ltd, TBS Cladding Solutions Ltd, and Central Electrical Distributors Ltd - operate in a manner that meets the standards set out in Section 172. Engagement with Employees The Directors have continued to invest in the workforce, recognising that the employees are integral to the success of the business. The Directors have implemented training and development programs to ensure that the team has the skills and knowledge necessary to excel in their roles. Regular internal communications have been used to understand and address any concerns of our staff. Relationships with Suppliers, Customers, and Partners The Group has maintained strong relationships with its suppliers and customers, ensuring that it conducts business in a fair and ethical manner. Focus this year has been on enhancing our supply chain efficiencies, especially for Traditional Brick & Stone Ltd and TBS Specialists Products Ltd, to ensure timely and reliable delivery of bricks, roofing tiles, and solar panels. For TBS Cladding Solutions Ltd, distribution networks have been strengthened to improve the availability of the brick cladding products. Central Electrical Distributors Ltd has continued to expand its range of electrical products, catering to the evolving needs of our customers.
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Group Strategic Report (continued)
For the Year Ended 30 June 2024
Community and Environmental Considerations
The Directors are committed to reducing the Group's environmental impact and have implemented sustainable practices across our operations. This includes efforts to reduce waste and improve energy efficiency, particularly in our manufacturing processes at TBS Cladding Solutions Ltd. We have also engaged in community initiatives to support local development and contribute positively to society. Long-Term Decisions for Shareholder Value Directors strategic decisions are focused on enhancing shareholder value. This includes driving operational efficiencies, exploring new market opportunities, and ensuring sustainable growth. Ethical Conduct and Reputation The Group upholds high standards of integrity and ethical conduct. Robust policies are in place to ensure compliance with legal and regulatory standards, which are regularly reviewed and updated as necessary. Engagement with Stakeholders While their position as Directors provides comprehensive control over the Group's decisions, they place high value on the feedback and interests of all stakeholders, including employees, customers, and the communities they serve. In every decision made throughout the year, the Directors have been mindful of the long-term implications, prioritising the success of Group, the wellbeing of their employees, the strength of their business relationships, and their environmental and community impact. This statement is made by the Directors in their capacity as the sole shareholders of TGS Group Holdings Ltd, in accordance with their duties under Section 172(1) of the Companies Act 2006.
This report was approved by the board on 28 March 2025 and signed on its behalf.
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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 profit for the year, after taxation and minority interests, amounted to £3,906,745 (2023 - £6,705,377).
Interim dividends of £1,451,281 (2023: £1,745,124) have been declared during the year. There is no final dividend to be declared.
The directors who served during the year were:
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;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙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.
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Directors' Report (continued)
For the Year Ended 30 June 2024
The Directors expect the general level of activity to increase in the forthcoming year due to the demand and need for new housing. As a result the directors remain optimistic about the Group's future.
Kwh energy consumed per £m of turnover 86.55 89.01
The following disclosures as required by S414C(11) have been elevated to the Strategic report: - Principal risks and uncertainties; - Key performance indicators; - Other key performance indicators - Engagement with suppliers, customers and others.
Following 30 June 2024, TBS Cladding Solutions Ltd a, a subsidairy within the Group, acquired the entire issued share capital of Kayser (UK) Limited. This event has no impact on the recognition or measurement of assets and liabilities as at 30 June 2024.
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Directors' Report (continued)
For the Year Ended 30 June 2024
The auditor, Dains Audit Limited, 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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Independent Auditor's Report to the Members of TBS Group Holdings Ltd
We have audited the financial statements of TBS Group Holdings Ltd (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 Auditor's 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.
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 or 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.
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Independent Auditor's Report to the Members of TBS Group Holdings Ltd (continued)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's Report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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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Independent Auditor's Report to the Members of TBS Group Holdings Ltd (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 Auditor's Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
∙the 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 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 financial reporting legislation, Companies Act 2006, taxation legislation, anti-bribery, 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 inspecting legal correspondence; and
∙identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
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 set out in Note 3 were indicative of potential bias; and
∙investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
∙agreeing financial statement disclosures to underlying supporting documentation;
∙reading the minutes of meetings of those charged with governance;
∙enquiring of management as to actual and potential litigation and claims; and
∙reviewing correspondence with HMRC, relevant regulators and the company’s legal advisors.
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Independent Auditor's Report to the Members of TBS Group Holdings Ltd (continued)
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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 Auditor's Report.
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditor's Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Statutory Auditor
Chartered Accountants
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Consolidated Statement of Comprehensive Income
For the Year Ended 30 June 2024
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Consolidated Balance Sheet
As at
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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
The notes on pages 21 to 46 form part of these financial statements.
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Company Balance Sheet
As at
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Company 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
The notes on pages 21 to 46 form part of these financial statements.
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Consolidated Statement of Changes in Equity
For the Year Ended 30 June 2024
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Company Statement of Changes in Equity
For the Year Ended 30 June 2024
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Consolidated Statement of Cash Flows
For the Year Ended 30 June 2024
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Consolidated Statement of Cash Flows (continued)
For the Year Ended 30 June 2024
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Consolidated Analysis of Net Debt
For the Year Ended 30 June 2024
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Notes to the Financial Statements
For the Year Ended 30 June 2024
TBS Group Holdings Ltd is a private company limited by shares, incorporated in the United Kingdom under the Companies Act and registered in England and Wales.
The registered number and address of the registered office are given on the Company Information page. The principal activity of the Company is that of a holding company. The principal activity of the Group is that of the wholesale and supply of bricks, roofing tiles and solar panel units for private dwellings, electrical wholesale and the manufacture and distribution of brick cladding
2.Accounting policies
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.
Therefore, the Group continues to recognise a merger reserve which arose on a past business combination that was accounted for as a merger in accordance with UK GAAP as applied at that time.
The trading performance for the group has been strong and therefore this has translated to the group having strong cash balances. Having produced cashflow forecasts and projections taking account of reasonably possible changes in trading performance, the directors believe that the company should be able to operate within these facilities. As such the directors consider that it is appropriate to continue to adopt the going concern basis in preparing the financial statements.
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Notes to the Financial Statements
For the Year Ended 30 June 2024
2.Accounting policies (continued)
Goodwill
Other intangible assets
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
The estimated useful lives range as follows:
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Notes to the Financial Statements
For the Year Ended 30 June 2024
2.Accounting policies (continued)
At each reporting date the Group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method and reducing balance methods.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
The freehold property held by the Company is occupied by other group members.
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Notes to the Financial Statements
For the Year Ended 30 June 2024
2.Accounting policies (continued)
The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
The Group has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.
Financial instruments are recognised in the Group's Balance Sheet when the Group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
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Notes to the Financial Statements
For the Year Ended 30 June 2024
2.Accounting policies (continued)
Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Other financial assets
Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.
Impairment of financial assets
Financial assets are assessed for indicators of impairment at each reporting date.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
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Notes to the Financial Statements
For the Year Ended 30 June 2024
2.Accounting policies (continued)
Other financial instruments
Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.
Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.
Derecognition of financial instruments
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.
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Notes to the Financial Statements
For the Year Ended 30 June 2024
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
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Notes to the Financial Statements
For the Year Ended 30 June 2024
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
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Notes to the Financial Statements
For the Year Ended 30 June 2024
2.Accounting policies (continued)
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Notes to the Financial Statements
For the Year Ended 30 June 2024
Goodwill and intangible assets The Group establishes a reliable estimate of the useful life of goodwill and intangible assets arising on business combinations. This estimate is based on a variety of factors such as the expected use of the acquired business, the expected useful life of the cash generating units to which the goodwill is attributed, any legal, regulatory or contractual provisions that can limit useful life and assumptions that market participants would consider in respect of similar businesses. Rebates and retrospective discounts The group provided and received retrospective discounts and directors have reviewed the likely discounts attributable for the year based on estimated amounts of trading activity and concluded they are reasonable and adequate. Depreciation and tangible assets Tangible fixed assets are depreciated over their useful lives taking into account residual values where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing the asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual values consider such things as future market conditions, the remaining life of the asset and projected disposal values. Impairment of investments Investments in subsidiaries are valued at cost and reviewed for impairment on an annual basis. The estimate is based on the performance of the subsidiaries together with the expected future cash inflows to review whether the investment is impaired.
The whole of the turnover is attributable to the principal activity of the Group.
Analysis of turnover by country of destination:
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Notes to the Financial Statements
For the Year Ended 30 June 2024
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Notes to the Financial Statements
For the Year Ended 30 June 2024
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Notes to the Financial Statements
For the Year Ended 30 June 2024
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Notes to the Financial Statements
For the Year Ended 30 June 2024
12.Taxation (continued)
From 1 April 2023, the corporation tax rate increased from 19% to 25% on profits over £250,000. The rate for small profits under £50,000 remains at 19%. When a company's profits fall between £50,000 and £250,000, the lower and upper limits, it will be able to claim an amount of marginal relief providing a gradual increase in corporation tax rate.
The deferred taxes have been remeasured using the rates expected to apply in the reporting periods when the timing differences reverse. The Group has tax losses arising in the UK of £Nil (2023: £568,084) that are available indefinitely for offset against future taxable profits of those companies in which the losses arose. Deferred tax assets have not been recognised in respect of these losses as they may not be used to offset taxable profits elsewhere in the Group.
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Notes to the Financial Statements
For the Year Ended 30 June 2024
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Notes to the Financial Statements
For the Year Ended 30 June 2024
13.Intangible assets (continued)
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Notes to the Financial Statements
For the Year Ended 30 June 2024
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Notes to the Financial Statements
For the Year Ended 30 June 2024
14.Tangible fixed assets (continued)
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Notes to the Financial Statements
For the Year Ended 30 June 2024
Page 39
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Notes to the Financial Statements
For the Year Ended 30 June 2024
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Notes to the Financial Statements
For the Year Ended 30 June 2024
The bank loan and overdrafts and are secured by a fixed and floating charge over the subsidiaries assets to which they relate to and a charge over the book debts.
Obligations under finance lease and hire purchase contracts are secured against the asset to which they relate to. The bank loan comprises a government Bounce Back Loan which is being repaid in 72 monthly installments. Interest of 2.5% is payable on the outstanding principal amount of the loan and applicable until the final repayment date.
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Notes to the Financial Statements
For the Year Ended 30 June 2024
Page 42
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Notes to the Financial Statements
For the Year Ended 30 June 2024
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Notes to the Financial Statements
For the Year Ended 30 June 2024
Other reserves
Profit and loss account
At the balance sheet date, a subsidiary company has given a guarantee in respect of certain lease agreements with another fellow subsidiary of the group. The outstanding commitments covered by this guarantee amount to
£509,000.
The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £200,570 (2023 - £135,199). Contributions totaling £23,791 (2023 - £20,518) were payable to the fund at the balance sheet date.
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Notes to the Financial Statements
For the Year Ended 30 June 2024
During the year, the Company sold currency to the Directors. The total value of currency sold amounted to £35,785 (2023: £94,864). There were no outstanding balances with the Directors at the balance sheet date.
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Notes to the Financial Statements
For the Year Ended 30 June 2024
At 30 June 2024, the Directors considered there to be no ultimate controlling party.
Page 46
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