Company Registration No. 04331572 (England and Wales)
ABACUS DIRECT LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2023
6 Queen Street
Leeds
West Yorkshire
LS1 2TW
ABACUS DIRECT LIMITED
CONTENTS
Page
Company information
0
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 7
Profit and loss account
8
Balance sheet
9 - 10
Statement of changes in equity
11
Notes to the financial statements
12 - 29
ABACUS DIRECT LIMITED
COMPANY INFORMATION
Directors
Mr L Yu
(Appointed 1 August 2024)
Mr S Westbrook
(Appointed 1 August 2024)
Company number
04331572
Registered office
Votec House
Hambridge Lane
Newbury
England
RG14 5TN
Auditor
TC Group
6 Queen Street
Leeds
LS1 2TW
Leeds
West Yorkshire
LS1 2TW
ABACUS DIRECT LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Fair review of the business

Trading conditions improved during the year, with growth continuing to come from key customers and diversification.

 

The construction and own label markets continued to show signs of improvement in 2023. The business continues to invest in technology to improve manufacturing processes and increase efficiency with a view to grow revenue as well as profit in the coming year. The Company's strategy with a number of its key customers continues to positively impact the company's results.

 

The Company's key financial performance indicators during the year were as follows:

 

Unit
2023
2022
Turnover
£
18,821,714
19,343,818
Operating profit
£
1,460,609
977,092
Principal risks and uncertainties

The principal risks identified are credit risks, foreign exchange risks and liquidity risks. Further details regarding these risks and the measures taken to mitigate their impact is provided in the Directors Report.

On behalf of the board

Mr L Yu
Director
1 April 2025
ABACUS DIRECT LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the company continued to be that of the distribution and manufacture of bathrooms.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £393,738. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr I D Pattison
(Resigned 31 July 2024)
Mr L Yu
(Appointed 1 August 2024)
Mr S Westbrook
(Appointed 1 August 2024)
Financial instruments

Liquidity risk arises from the difficulties the Company may face in meeting obligations under financial liabilities as they fall due. The Company mitigates liquidity risk by using long, medium and short term forecasts, applying cash collection targets and utilisation of full trading terms with its suppliers.

Foreign currency risk arises because the Company purchases products from overseas. The Company mitigates this risk through the use of import loans.

Credit risks arises from customers failing to meet their obligation under contracts of able to pay. In order to minimise this risk, deferred terms are only granted to those customers who demonstrate an appropriate payment history and satisfy credit worthiness procedures.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
Mr L Yu
Director
1 April 2025
ABACUS DIRECT LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

ABACUS DIRECT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF ABACUS DIRECT LIMITED
- 4 -
Opinion

We have audited the financial statements of Abacus Direct Limited (the 'company') for the year ended 31 December 2023 which comprise the profit and loss account, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Emphasis of matter - financial statements prepared on a basis other than going concern.

We draw attention to note 1.2 to the financial statements which explains that, following the period-end, the trade previously carried on by Abacus Direct Limited was transferred to a fellow group company. Primaflow Limited, and therefore the directors do not consider it to be appropriate to adopt the going concern basis of accounting in preparing the financial statements. Accordingly, the financial statements have been prepared on a basis other than going concern as described in Note 1.2. Our opinion is not modified in respect of this matter.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

ABACUS DIRECT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF ABACUS DIRECT LIMITED
- 5 -

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

ABACUS DIRECT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF ABACUS DIRECT LIMITED
- 6 -
Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

Extent to which the audit was capable of detecting irregularities, including fraud

The objectives of our audit, in respect of fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.

 

Our approach was as follows:

 

ABACUS DIRECT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF ABACUS DIRECT LIMITED
- 7 -

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from material fraud or error.

 

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect all non-compliance with laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Our report

This report is made solely to the company's member in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's member those matters we are required to state to the member in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's member, for our audit work, for this report, or for the opinions we have formed.

Mark Hunter FCA (Senior Statutory Auditor)
For and on behalf of TC Group
Statutory Auditor
1 April 2025
6 Queen Street
Leeds
West Yorkshire
LS1 2TW
ABACUS DIRECT LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
18,821,714
19,343,818
Cost of sales
(12,905,675)
(13,705,971)
Gross profit
5,916,039
5,637,847
Administrative expenses
(4,648,416)
(4,808,846)
Other operating income
192,986
148,091
Operating profit
4
1,460,609
977,092
Interest receivable and similar income
8
15,240
1,372
Interest payable and similar expenses
9
(239,747)
(142,956)
Profit before taxation
1,236,102
835,508
Tax on profit
10
(363,532)
43,822
Profit for the financial year
872,570
879,330

The profit and loss account has been prepared on the basis that all operations are continuing operations.

ABACUS DIRECT LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
12
163,088
108,864
Tangible assets
13
4,821,299
5,070,567
4,984,387
5,179,431
Current assets
Stocks
14
6,453,011
7,642,343
Debtors
15
2,590,609
2,430,910
Cash at bank and in hand
617,553
715,725
9,661,173
10,788,978
Creditors: amounts falling due within one year
16
(4,126,414)
(5,707,180)
Net current assets
5,534,759
5,081,798
Total assets less current liabilities
10,519,146
10,261,229
Creditors: amounts falling due after more than one year
17
(1,768,744)
(1,938,876)
Provisions for liabilities
Deferred tax liability
20
191,680
242,463
(191,680)
(242,463)
Net assets
8,558,722
8,079,890
Capital and reserves
Called up share capital
22
1,040
1,040
Share premium account
23
8,316
8,316
Capital redemption reserve
24
34
34
Profit and loss reserves
8,549,332
8,070,500
Total equity
8,558,722
8,079,890

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

ABACUS DIRECT LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
The financial statements were approved by the board of directors and authorised for issue on 1 April 2025 and are signed on its behalf by:
Mr L Yu
Director
Company registration number 04331572 (England and Wales)
ABACUS DIRECT LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2022
1,040
8,316
34
7,450,770
7,460,160
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
-
879,330
879,330
Dividends
11
-
-
-
(259,600)
(259,600)
Balance at 31 December 2022
1,040
8,316
34
8,070,500
8,079,890
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
-
872,570
872,570
Dividends
11
-
-
-
(393,738)
(393,738)
Balance at 31 December 2023
1,040
8,316
34
8,549,332
8,558,722
ABACUS DIRECT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
1
Accounting policies
Company information

Abacus Direct Limited is a private company limited by shares incorporated in England and Wales. The registered office is Votec House, Hambridge Lane, Newbury, England, RG14 5TN.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Abacus Direct Group Holdings Limited. These consolidated financial statements are available from its registered office, Votec House, Hambridge Lane, Newbury, England, RG14 5TN.

1.2
Going concern

Following the change in ownership on the 1 August 2024 the decision was taken to streamline the group headed by Newbury Investments Holdings Limited. Consequently, the trade carried on by Abacus Direct Limited has been transferred to a fellow group company, Primaflow Limited. There is no significant costs of the transfer of trade and the associated trade has continued within Primaflow Limited following transfer, including the collection of debts and settling associated creditors occurring in the normal course of business. However, as following the transfer, the company was left with only an intercompany balance, the basis of preparation is technically not that of a going concern as the company will continue to exist only as a dormant company.true

ABACUS DIRECT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.4
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.5
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 20 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.6
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Development costs
20% straight line
ABACUS DIRECT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.7
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
10% straight line
Showroom
20% straight line
Plant and equipment
20% straight line
Fixtures and fittings
20% straight line
Computers
33% straight line
Motor vehicles
25% Reducing Balance
Office equipment
20% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.8
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

ABACUS DIRECT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.9
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.10
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.11
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

ABACUS DIRECT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

ABACUS DIRECT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.12
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.13
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.14
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.15
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

ABACUS DIRECT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.16
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.17
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.18
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the company’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.

 

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.

ABACUS DIRECT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Sales of goods
18,821,714
19,343,818
2023
2022
£
£
Other significant revenue
Interest income
15,240
1,372
Grants received
11,729
6,894
Rental income
124,749
129,492
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(147,000)
66,915
Government grants
(11,729)
(6,894)
Depreciation of owned tangible fixed assets
764,251
771,523
Profit on disposal of tangible fixed assets
(1,500)
-
Amortisation of intangible assets
78,676
61,848
Operating lease charges
371,718
386,899
ABACUS DIRECT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
40,950
23,600
6
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Administration and support
12
12
Sales
20
20
Distribution and production
31
32
Total
63
64

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
1,839,772
1,837,332
Social security costs
184,990
191,974
Pension costs
35,747
36,485
2,060,509
2,065,791
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
-
0
2,644
ABACUS DIRECT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest income
15,240
1,372
9
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
237,402
141,803
Interest on finance leases and hire purchase contracts
2,345
-
Other interest
-
0
1,153
239,747
142,956
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
414,315
95,272
Adjustments in respect of prior periods
-
0
(134,058)
Total current tax
414,315
(38,786)
Deferred tax
Origination and reversal of timing differences
(50,783)
(5,036)
Total tax charge/(credit)
363,532
(43,822)
ABACUS DIRECT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Taxation
(Continued)
- 22 -

The actual charge/(credit) for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
1,236,102
835,508
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
309,026
158,747
Tax effect of expenses that are not deductible in determining taxable profit
21,281
6,168
Tax effect of income not taxable in determining taxable profit
-
0
(8,311)
Effect of change in corporation tax rate
(50,783)
(3,669)
Group relief
-
0
(5,643)
Permanent capital allowances in excess of depreciation
84,008
60,972
Research and development tax credit
-
0
(113,864)
Under/(over) provided in prior years
-
0
(122,654)
Effect of super-deduction
-
0
(15,568)
Taxation charge/(credit) for the year
363,532
(43,822)
11
Dividends
2023
2022
2023
2022
Per share
Per share
Total
Total
£
£
£
£
Ordinary
Interim paid
378.59
249.62
393,738
259,600
ABACUS DIRECT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
12
Intangible fixed assets
Goodwill
Development costs
Total
£
£
£
Cost
At 1 January 2023
120,000
321,030
441,030
Additions
-
0
132,900
132,900
At 31 December 2023
120,000
453,930
573,930
Amortisation and impairment
At 1 January 2023
120,000
212,166
332,166
Amortisation charged for the year
-
0
78,676
78,676
At 31 December 2023
120,000
290,842
410,842
Carrying amount
At 31 December 2023
-
0
163,088
163,088
At 31 December 2022
-
0
108,864
108,864
ABACUS DIRECT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
13
Tangible fixed assets
Freehold land and buildings
Showroom
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Office equipment
Total
£
£
£
£
£
£
£
£
Cost
At 1 January 2023
7,223,768
422,741
1,031,274
149,486
100,985
284,847
81,398
9,294,499
Additions
173,819
193,995
44,398
-
0
274
101,960
537
514,983
Disposals
-
0
-
0
(19,000)
-
0
-
0
-
0
-
0
(19,000)
At 31 December 2023
7,397,587
616,736
1,056,672
149,486
101,259
386,807
81,935
9,790,482
Depreciation and impairment
At 1 January 2023
2,805,937
416,504
643,582
81,643
87,777
115,179
73,310
4,223,932
Depreciation charged in the year
524,371
14,669
147,588
20,324
9,362
45,057
2,880
764,251
Eliminated in respect of disposals
-
0
-
0
(19,000)
-
0
-
0
-
0
-
0
(19,000)
At 31 December 2023
3,330,308
431,173
772,170
101,967
97,139
160,236
76,190
4,969,183
Carrying amount
At 31 December 2023
4,067,279
185,563
284,502
47,519
4,120
226,571
5,745
4,821,299
At 31 December 2022
4,417,831
6,237
387,692
67,843
13,208
169,668
8,088
5,070,567
ABACUS DIRECT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
14
Stocks
2023
2022
£
£
Finished goods and goods for resale
6,453,011
7,642,343

The cost of stocks recognised as an expense in the year amounted to £10,615,600 (2022 - £10,686,282).

 

Closing stock is stated after provisions for impairment of £222,968 (2022 - £217,892).

15
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
2,404,503
2,185,823
Corporation tax recoverable
-
0
71,307
Other debtors
56,525
73,489
Prepayments and accrued income
129,581
100,291
2,590,609
2,430,910
16
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
18
213,877
199,064
Obligations under finance leases
19
25,212
-
0
Other borrowings
18
-
0
1,259,634
Trade creditors
1,591,323
2,127,751
Amounts owed to group undertakings
1,796,199
1,015,513
Corporation tax
35,517
-
0
Other taxation and social security
322,498
550,695
Other creditors
56,358
141,765
Accruals and deferred income
85,430
412,758
4,126,414
5,707,180
ABACUS DIRECT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
17
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
18
1,740,708
1,938,876
Obligations under finance leases
19
28,036
-
0
1,768,744
1,938,876
18
Loans and overdrafts
2023
2022
£
£
Bank loans
1,954,585
2,137,940
Other loans
-
0
1,259,634
1,954,585
3,397,574
Payable within one year
213,877
1,458,698
Payable after one year
1,740,708
1,938,876

Bank loans

Included within bank loans are the following items:

 

The HSBC bank loan is denominated in sterling with a nominal interest rate of 1.75% over base rate. The amount outstanding at the year end is £708,219 (2022 - £793,040).

 

The HSBC term loan is denominated in sterling with a nominal interest rate of 2.15% over base rate. The amount outstanding at the year end is £1,246,366 (2022 - £1,344,900).

 

Other loans

Included within other loans are the following items:

 

Invoice discounting facility

The invoice discounting facility is denominated in sterling with a nominal interest rate of 2.5%. The carrying amount at the year end is £nil (2022 - £1,259,634).

 

Security of borrowings

The invoice discounting facility is secured by a charge over the debts to which the facility relates. The bank loan is secured by a charge over property. The Company's bankers also have fixed and floating charges over the undertaking and all property and assets present and future, including goodwill, book debts, uncalled capital, buildings, fixtures and fixed plant and machinery.

 

 

ABACUS DIRECT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
19
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
25,212
-
0
In two to five years
28,036
-
0
53,248
-
0
20
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
191,680
242,463
2023
Movements in the year:
£
Liability at 1 January 2023
242,463
Credit to profit or loss
(50,783)
Liability at 31 December 2023
191,680
21
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
35,747
36,485

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

ABACUS DIRECT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
22
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
1,040
1,040
1,040
1,040
23
Share premium account

The share premium reserve represents the excess of consideration received over the nominal value of shares issued.

24
Capital redemption reserve

The capital redemption reserve represents the nominal value of shares bought back by the company.

25
Financial commitments, guarantees and contingent liabilities

The Company is party to a cross guarantee to secure the borrowings of the group headed by other Related Parties. The total borrowings secured under this guarantee as at 31 December 2023 was £1,954,585 (2022 - £3,397,574).

 

26
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
364,714
360,745
Between two and five years
1,427,776
1,437,490
In over five years
904,521
1,259,521
2,697,011
3,057,756

The amount of non-cancellable operating lease payments recognised as an expense during the year was £371,718 (2022 - £386,899).

27
Related party transactions

The Company has taken the exemption set out in FRS 102 from disclosing transactions with other members of the group.

ABACUS DIRECT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
28
Directors' transactions

Bradbury & Pattison Partnership

The directors of the Company are the partners of the Bradbury & Pattison Partnership. During the year, the company made recharges of £2,825 (2022 - £nil) to the Bradbury & Pattison Partnership. Included in other debtors are amounts due from Bradbury & Pattison Partnership of £6,016 (2022 - £3,191).

 

As at 31 December 2023 the Company owed Mr I D Pattison £464 (2022 - £71,485). In addition, the Company made sales to Mr I D Pattison during the year amounting to £3,300 (2022 - £814) under normal trading terms. As at 31 December 2023 the Company was owed £10,838 (2022 - £7,538) in respect of these trading transactions.

 

Abacus Direct Properties Limited

Abacus Direct Properties Limited is a company under common control. During the year, the Company made purchases of £355,000 (2022 - £355,000) from Abacus Direct Properties Limited and recharges to Abacus Direct Properties Limited of £240 (2022 - £1,440). As at 31 December 2023, Abacus Direct Properties Limited was owed £35,260 by the Company (2022 - £70,280).

29
Ultimate controlling party

The company's immediate parent is Abacus Direct Holdings Limited, incorporated in England and Wales.

 

The address of Abacus Direct Holdings Limited is:

Votec House, Hambridge Lane, Newbury, England, RG14 5TN.

 

Prior to 1 August 2024, the ultimate parent was Abacus Direct Group Holdings Limited, incorporated in England and Wales, who prepare consolidated financial statements and are the smallest and largest to include the results of the Company for the year ended 31 December 2023. These financial statements are available from Companies House.

 

The ultimate controlling party prior to 1 August 2024 was Mr I D Pattison.

 

On 1 August 2024, Newbury Investments (UK) Limited became the ultimate parent of the group. Newbury Investments Holdings Limited is the ultimate controlling party as of this date.

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