Company Registration No. 12283155 (England and Wales)
ABACUS DIRECT GROUP HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
ABACUS DIRECT GROUP HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Mr L Yu
(Appointed 1 August 2024)
Mr S Westbrook
(Appointed 1 August 2024)
Company number
12283155
Registered office
Votec House
Hambridge Lane
Newbury
England
RG14 5TN
Auditor
TC Group
6 Queen Street
Leeds
West Yorkshire
LS1 2TW
ABACUS DIRECT GROUP HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10 - 11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 37
ABACUS DIRECT GROUP HOLDINGS 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 for the acquired business were strong over the period, with growth continuing to come from key customers and diversification. 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 future. The group's strategic alliance with a number of it's key customers continues to positively impact the groups results.

 

 

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

Unit
2023
2022
Turnover
£
18,832,866
19,343,819
Operating profit
£
1,869,256
1,346,997
Principal risks and uncertainties

The principal risks identified are credit risk, foreign exchange risk and liquidity risk. 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 GROUP HOLDINGS 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 is that of a holding company. The principal activity of the Group is that of the distribution and manufacture of bathroom equipment.

Results and dividends

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

No ordinary dividends were paid. The directors do not recommend payment of a further 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)
Auditor

The auditor, TC Group, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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 auditor of the company 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 auditor of the company is aware of that information.

On behalf of the board
Mr L Yu
Director
1 April 2025
ABACUS DIRECT GROUP HOLDINGS 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 group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

ABACUS DIRECT GROUP HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ABACUS DIRECT GROUP HOLDINGS LIMITED
- 4 -
Opinion

We have audited the financial statements of Abacus Direct Group Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows 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 FRS 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 1.4 to the financial statements which explains that, following the period-end, the trade previously carried on by Abacus Direct Group Holdings 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 1.4. 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 group's and 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.

ABACUS DIRECT GROUP HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ABACUS DIRECT GROUP HOLDINGS 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 group and parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report.

 

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:

 

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 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 company or to cease operations, or have no realistic alternative but to do so.

ABACUS DIRECT GROUP HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ABACUS DIRECT GROUP HOLDINGS 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. 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.

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 GROUP HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ABACUS DIRECT GROUP HOLDINGS 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.

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 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.

Mark Hunter FCA (Senior Statutory Auditor)
For and on behalf of TC Group
1 April 2025
Statutory Auditor
6 Queen Street
Leeds
West Yorkshire
LS1 2TW
ABACUS DIRECT GROUP HOLDINGS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
18,832,866
19,343,818
Cost of sales
(12,317,141)
(13,136,366)
Gross profit
6,515,725
6,207,452
Administrative expenses
(4,839,455)
(5,008,546)
Other operating income
192,986
148,091
Operating profit
4
1,869,256
1,346,997
Interest receivable and similar income
7
15,240
1,372
Interest payable and similar expenses
8
(249,013)
(152,534)
Profit before taxation
1,635,483
1,195,835
Tax on profit
9
(461,260)
(26,352)
Profit for the financial year
23
1,174,223
1,169,483
Profit for the financial year is all attributable to the owners of the parent company.
ABACUS DIRECT GROUP HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
£
£
Profit for the year
1,174,223
1,169,483
Other comprehensive income
-
-
Total comprehensive income for the year
1,174,223
1,169,483
Total comprehensive income for the year is all attributable to the owners of the parent company.
ABACUS DIRECT GROUP HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Goodwill
10
35,845
41,820
Other intangible assets
10
163,088
108,864
Total intangible assets
198,933
150,684
Tangible assets
11
4,829,348
5,072,775
5,028,281
5,223,459
Current assets
Stocks
14
6,594,771
7,785,946
Debtors
15
2,598,957
2,894,487
Cash at bank and in hand
621,029
728,216
9,814,757
11,408,649
Creditors: amounts falling due within one year
16
(2,798,192)
(5,162,963)
Net current assets
7,016,565
6,245,686
Total assets less current liabilities
12,044,846
11,469,145
Creditors: amounts falling due after more than one year
17
(3,233,744)
(3,783,876)
Provisions for liabilities
Deferred tax liability
20
189,871
238,261
(189,871)
(238,261)
Net assets
8,621,231
7,447,008
Capital and reserves
Called up share capital
22
2,750,001
2,750,001
Profit and loss reserves
23
5,871,230
4,697,007
Total equity
8,621,231
7,447,008
ABACUS DIRECT GROUP HOLDINGS LIMITED
GROUP BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2023
31 December 2023
- 11 -
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:
01 April 2025
Mr L Yu
Director
ABACUS DIRECT GROUP HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
12
5,527,500
5,527,500
Current assets
Cash at bank and in hand
1
1
Creditors: amounts falling due within one year
16
(117,529)
(122,100)
Net current liabilities
(117,528)
(122,099)
Total assets less current liabilities
5,409,972
5,405,401
Creditors: amounts falling due after more than one year
17
(1,465,000)
(1,845,000)
Net assets
3,944,972
3,560,401
Capital and reserves
Called up share capital
22
2,750,001
2,750,001
Profit and loss reserves
23
1,194,971
810,400
Total equity
3,944,972
3,560,401

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £384,571 (2022 - £250,067 profit).

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:
01 April 2025
Mr L Yu
Director
Company Registration No. 12283155
ABACUS DIRECT GROUP HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2022
2,750,001
3,527,524
6,277,525
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
1,169,483
1,169,483
Balance at 31 December 2022
2,750,001
4,697,007
7,447,008
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
1,174,223
1,174,223
Balance at 31 December 2023
2,750,001
5,871,230
8,621,231
ABACUS DIRECT GROUP HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2022
2,750,001
560,333
3,310,334
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
250,067
250,067
Balance at 31 December 2022
2,750,001
810,400
3,560,401
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
384,571
384,571
Balance at 31 December 2023
2,750,001
1,194,971
3,944,972
ABACUS DIRECT GROUP HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
2,931,455
1,780,216
Interest paid
(249,013)
(152,534)
Income taxes paid
(381,740)
(445,058)
Net cash inflow from operating activities
2,300,702
1,182,624
Investing activities
Purchase of intangible assets
(132,900)
(70,500)
Purchase of tangible fixed assets
(521,988)
(676,599)
Proceeds on disposal of tangible fixed assets
1,500
-
Interest received
15,240
1,372
Net cash used in investing activities
(638,148)
(745,727)
Financing activities
Repayment of borrowings
(1,639,634)
(206,816)
Repayment of bank loans
(183,355)
(211,936)
Payment of finance leases obligations
53,248
-
Net cash used in financing activities
(1,769,741)
(418,752)
Net (decrease)/increase in cash and cash equivalents
(107,187)
18,145
Cash and cash equivalents at beginning of year
728,216
710,071
Cash and cash equivalents at end of year
621,029
728,216
ABACUS DIRECT GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
1
Accounting policies
Company information

Abacus Direct Group Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Votec House, Hambridge Lane, Newbury, England, RG14 5TN.

 

The group consists of Abacus Direct Group Holdings Limited and all of its subsidiaries.

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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

ABACUS DIRECT GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Abacus Direct Group Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.4
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 Group Holdings 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.

1.5
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.

1.6
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.

ABACUS DIRECT GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.7
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business 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 10 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.

1.8
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
1.9
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 recognised in the profit and loss account.

ABACUS DIRECT GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
1.10
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.11
Impairment of fixed assets

At each reporting period end date, the group 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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 GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
1.12
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.

1.13
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.

1.14
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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 GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
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 group 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 group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans, 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 group's contractual obligations expire or are discharged or cancelled.

ABACUS DIRECT GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 22 -
1.15
Equity instruments

Equity instruments issued by the group 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 group.

1.16
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 group’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 if, and only if, there is 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.

1.17
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.

1.18
Retirement benefits

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

ABACUS DIRECT GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 23 -
1.19
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 leased 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.

1.20
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.

1.21
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 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.

 

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 GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Sale of goods
18,832,866
19,343,818
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
18,832,866
19,343,818
2023
2022
£
£
Other significant revenue
Interest income
15,240
1,372
Grants received
11,729
6,894
Rental income arising from investment properties
124,749
129,492
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
(147,000)
66,915
Government grants
(11,729)
(6,894)
Depreciation of owned tangible fixed assets
765,415
794,335
Profit on disposal of tangible fixed assets
(1,500)
-
Amortisation of intangible assets
84,651
67,823
Operating lease charges
374,117
389,946
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 group and company
44,250
33,200
ABACUS DIRECT GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Administration and support
24
13
1
1
Sales
20
20
-
-
Distribution
31
32
-
-
Other departments
-
10
-
-
Total
75
75
1
1

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
2,111,059
2,116,706
-
0
-
0
Social security costs
211,936
220,653
-
-
Pension costs
41,837
42,827
-
0
-
0
2,364,832
2,380,186
-
0
-
0
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest income
15,240
1,372
ABACUS DIRECT GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
237,402
141,848
Other interest on financial liabilities
9,167
9,533
246,569
151,381
Other finance costs:
Interest on finance leases and hire purchase contracts
2,345
-
Other interest
99
1,153
Total finance costs
249,013
152,534
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
509,650
169,521
Adjustments in respect of prior periods
-
0
(133,959)
Total current tax
509,650
35,562
Deferred tax
Origination and reversal of timing differences
(48,390)
(9,210)
Total tax charge
461,260
26,352
ABACUS DIRECT GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
9
Taxation
(Continued)
- 27 -

The actual charge 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
1,635,483
1,195,835
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
408,871
227,209
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
(2,117)
(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
(120,942)
Effect of super deduction
-
0
(15,568)
Taxation charge
461,260
26,352
10
Intangible fixed assets
Group
Goodwill
Development costs
Total
£
£
£
Cost
At 1 January 2023
59,745
321,030
380,775
Additions
-
0
132,900
132,900
At 31 December 2023
59,745
453,930
513,675
Amortisation and impairment
At 1 January 2023
17,925
212,166
230,091
Amortisation charged for the year
5,975
78,676
84,651
At 31 December 2023
23,900
290,842
314,742
ABACUS DIRECT GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Intangible fixed assets
(Continued)
- 28 -
Carrying amount
At 31 December 2023
35,845
163,088
198,933
At 31 December 2022
41,820
108,864
150,684
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.
ABACUS DIRECT GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
11
Tangible fixed assets
Group
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
1,146,240
149,486
100,985
293,848
81,398
9,418,466
Additions
173,819
193,995
51,403
-
0
274
101,960
537
521,988
Disposals
-
0
-
0
(19,000)
-
0
-
0
-
0
-
0
(19,000)
At 31 December 2023
7,397,587
616,736
1,178,643
149,486
101,259
395,808
81,935
9,921,454
Depreciation and impairment
At 1 January 2023
2,805,937
416,504
756,340
81,643
87,777
124,180
73,310
4,345,691
Depreciation charged in the year
524,371
14,669
148,752
20,324
9,362
45,057
2,880
765,415
Eliminated in respect of disposals
-
0
-
0
(19,000)
-
0
-
0
-
0
-
0
(19,000)
At 31 December 2023
3,330,308
431,173
886,092
101,967
97,139
169,237
76,190
5,092,106
Carrying amount
At 31 December 2023
4,067,279
185,563
292,551
47,519
4,120
226,571
5,745
4,829,348
At 31 December 2022
4,417,831
6,237
389,900
67,843
13,208
169,668
8,088
5,072,775
The company had no tangible fixed assets at 31 December 2023 or 31 December 2022.
ABACUS DIRECT GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
12
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
5,527,500
5,527,500
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
5,527,500
Carrying amount
At 31 December 2023
5,527,500
At 31 December 2022
5,527,500
13
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Abacus Direct Holdings Limited
Votec House, Votec House, Hambridge Lane, Newbury, Berkshire, United Kingdom, RG14 5TN
Ordinary
100.00
Abacus Direct Limited
Votec House, Votec House, Hambridge Lane, Newbury, Berkshire, United Kingdom, RG14 5TN
Ordinary
100.00
LFZ Manufacturing Limited
Votec House, Votec House, Hambridge Lane, Newbury, Berkshire, United Kingdom, RG14 5TN
Ordinary
100.00

The holdings of Abacus Direct Limited and LFZ Manufacturing Limited are indirectly held.

 

Subsidiary undertakings

 

Abacus Direct Holdings Limited

The principal activity of Abacus Direct Holdings Limited is that of a holding company.

ABACUS DIRECT GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
14
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
141,760
143,603
-
-
Finished goods and goods for resale
6,453,011
7,642,343
-
0
-
0
6,594,771
7,785,946
-
-

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

15
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,404,503
2,185,823
-
0
-
0
Corporation tax recoverable
-
0
71,307
-
0
-
0
Other debtors
56,526
73,489
-
0
-
0
Prepayments and accrued income
137,928
563,868
-
0
-
0
2,598,957
2,894,487
-
-
16
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
18
213,877
199,064
-
0
-
0
Obligations under finance leases
19
25,212
-
0
-
0
-
0
Other borrowings
18
110,000
1,369,634
110,000
110,000
Trade creditors
1,627,245
2,160,342
-
0
-
0
Corporation tax payable
190,786
134,183
-
0
-
0
Other taxation and social security
468,885
587,015
-
-
Other creditors
65,365
282,800
-
0
-
0
Accruals and deferred income
96,822
429,925
7,529
12,100
2,798,192
5,162,963
117,529
122,100
ABACUS DIRECT GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
17
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
18
1,740,708
1,938,876
-
0
-
0
Obligations under finance leases
19
28,036
-
0
-
0
-
0
Other borrowings
18
1,465,000
1,845,000
1,465,000
1,845,000
3,233,744
3,783,876
1,465,000
1,845,000
18
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
1,954,585
2,137,940
-
0
-
0
Other loans
1,575,000
3,214,634
1,575,000
1,955,000
3,529,585
5,352,574
1,575,000
1,955,000
Payable within one year
323,877
1,568,698
110,000
110,000
Payable after one year
3,205,708
3,783,876
1,465,000
1,845,000
ABACUS DIRECT GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
18
Loans and overdrafts
(Continued)
- 33 -

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 Group'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.

19
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
25,212
-
0
-
0
-
0
In two to five years
28,036
-
0
-
0
-
0
53,248
-
-
-
ABACUS DIRECT GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 34 -
20
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
189,871
238,261
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
238,261
-
Credit to profit or loss
(48,390)
-
Liability at 31 December 2023
189,871
-
21
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
41,837
42,827

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

22
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
of £1 each
2,750,001
2,750,001
2,750,001
2,750,001
23
Reserves
ABACUS DIRECT GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
23
Reserves
(Continued)
- 35 -
Profit and loss reserves

Share capital represents the number of shares issued at nominal price.

The profit and loss account represents accumulated comprehensive income for the year and prior periods, after deduction of dividends paid.

24
Financial commitments, guarantees and contingent liabilities

Group

The group has guaranteed the borrowings of certain related companies. At 31 December 2023, the amount of borrowings guaranteed amounted to £1,954,585 (2022 - £3,397,574).

25
Operating lease commitments
Lessee

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

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
364,714
361,143
-
-
Between two and five years
1,427,776
1,437,490
-
-
In over five years
904,521
1,259,521
-
-
2,697,011
3,058,154
-
-

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

ABACUS DIRECT GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 36 -
26
Related party transactions

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

 

Group

 

Bradbury & Pattison Partnership

The director of the Group is a partner of the Bradbury & Pattison Partnership. During the year, the Group made recharges of £2,825 (2022 - £nil) to the Bradbury & Pattison Partnership. Included in other debtors are amounts due from Bradbury & Pattison Partnership of £6,830 (2022 - £3,191).

 

As at 31 December 2023 the Group owed Mr I D Pattison £464 (2022 - £73,146). In addition, the Group 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 Group 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 Group 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 Group (2022 - £70,280).

27
Directors' transactions

As at the balance sheet date, the Group owed Mr I D Pattison £123,000 (2021 - £123,000). The loan is interest free and repayable on demand.

28
Controlling party

Prior to 20 December 2023, the Company had no immediate or ultimate parent company.

 

On 20 December 2023, the immediate parent became Copgrove Holdings Limited, a company incorporated in England and Wales, and subsequently on 17 June 2024, the immediate parent became Abacus Group (Topco) Limited.

 

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

 

On 1 August 2024, Newbury Investments Holdings Limited became the ultimate parent and ultimate controlling party of the group.

ABACUS DIRECT GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 37 -
29
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
1,174,223
1,169,483
Adjustments for:
Taxation charged
461,260
26,352
Finance costs
249,013
152,534
Investment income
(15,240)
(1,372)
Gain on disposal of tangible fixed assets
(1,500)
-
Amortisation and impairment of intangible assets
84,651
67,823
Depreciation and impairment of tangible fixed assets
765,415
794,335
Movements in working capital:
Decrease/(increase) in stocks
1,191,175
(1,356,063)
Decrease in debtors
224,223
213,133
(Decrease)/increase in creditors
(1,201,765)
713,991
Cash generated from operations
2,931,455
1,780,216
30
Analysis of changes in net debt - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
728,216
(107,187)
621,029
Borrowings excluding overdrafts
(5,352,574)
1,822,989
(3,529,585)
Obligations under finance leases
-
(53,248)
(53,248)
(4,624,358)
1,662,554
(2,961,804)
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