Company registration number 04494633 (England and Wales)
SSGC LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 NOVEMBER 2023
SSGC LIMITED
COMPANY INFORMATION
Directors
Mr G K Dungworth
Mr D R Stubbs
Company number
04494633
Registered office
Unit 19 Ergo Business Park
Kelvin Road
Swindon
Wiltshire
SN3 3JW
Auditor
Haines Watts
Old Station House
Station Approach
Swindon
Wiltshire
SN1 3DU
SSGC LIMITED
CONTENTS
Page
Strategic report
1 - 7
Directors' report
8 - 9
Independent auditor's report
10 - 12
Income statement
13
Statement of comprehensive income
14
Statement of financial position
15
Statement of changes in equity
16
Statement of cash flows
17
Notes to the financial statements
18 - 30
SSGC LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 30 NOVEMBER 2023
- 1 -
The directors present the strategic report for the Period ended 30 November 2023.
Principal activities
SSGC works exclusively in the UK regulated security industry and is accredited under the governments Approved Contractor Scheme (ACS). ACS security services are delivered to public and private security users and SSGC has a coveted place on the Crown Commercial Services RM6257 Framework for direct tier 1 government work.
The board remains focused on a core vision - to be recognised as a best in class tier 1 security provider in the UK through the investment in and deployment of new to industry technology.
The group has developed over many years bespoke end-end application software to allow us to manage the entire security delivery process from order management through account mobilisation, product configuration, staff recruitment, staff vetting, staff attendance, supply chain management and ultimately through to integrated staff payment and client billing solutions.
This technology is audited by government under the ACS programme and considered as best in class. It was this platform that enabled SSGC to instantly - yet robustly - scale be the pre-eminent supplier of security to the governments Covid-19 test programme across the UK. This technology sits at the core of all we do and enables us to configure and deliver and report upon our client service level agreements.
SSGC LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 NOVEMBER 2023
- 2 -
Review of the business
The de-mobilisation and non-payment for the two year long Covid-19 government contract managed by Serco dominate the fiscal results reported here. Underlying business is not visible in the fiscal report alone. All Covid-19 demobilisation is now complete. The de-mobilisation effects and costs were substantial and included settlement of the Serco dispute reported in the prior period and attendant write down and carry of associated legal costs. This process has lead to operating losses circa £3m in FY23.
Underlying business is now profitable and SSGC has secured several new corporate clients of the type targeted under the companies published growth strategy.
SSGC is proud to have been raising standards for this and many prior years across the industry and constantly innovating our service offering to meet the increasing joint demands around commercial terms, compliance and service quality.
Growth Strategy
The strategy of the business remains to achieve sustainable and profitable growth through continuing to develop our technology, products and people through focusing on innovation and opening-up new corporate clients, distribution channels and market sectors.
During the YE23 period the business secured a place on the government strategic procurement framework RM6257 which is operated by the Crown Commercial Service (CCS). Many well-established and preeminent UK outsourcing and Facilities Management companies were unsuccessful in their bids to join the platform. SSGC was one of only nineteen companies awarded a place and have won the first tender we applied for submitted through RM6257.
We are now engaging in RM6378 consultation. This framework seeks to displace and consolidate the longstanding RM6232 and seek more efficient and direct purchasing for government and its supply chains through product based as opposed to managed outsource purchases. We look forward to the opportunities this strategic transition by government affords a product specialist and technology orientated company such as SSGC.
While growing our client base and re-focusing on higher margin term agreements the operating and fiscal period was actually dominated by the de-mobilisation of the very narrow but deep Covid-19 contracts with Mitie, Sodexo and Serco. Our ability to secure and mobilise large scale contracts at new to industry pace is now proven.
Strategic initiatives have been started in this reporting period to develop our bid management capability; to secure direct access to government procurement frameworks and to broaden our product and client reach through an acquisition project.
SSGC LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 NOVEMBER 2023
- 3 -
Principal risks and uncertainties
The Directors remain alert to the risks prevalent in a commercial environment and continue to take steps to minimise or mitigate these risks. A process of risk identification is undertaken at Board level.
The identified risks, are regularly reviewed at Board level to ensure adequate risk mitigation pertinent to each risk is introduced and maintained. Identified risks are highlighted below along with the associated mitigation plan.
Tier 1 Non-Payment
SSGC remained materially underpaid at contact operational close on its Covid-19 contract with a government appointed Tier 1 contractor.
As reported in the prior period SSGC sought mediation. Last period results carried working assumptions about resolution. Matters were fully settled after the period end in April 2024 resulting in a substantial write down reported in this report. The associated costs of legal efforts, mediation and supply chain issues are fully carried in this period.
Covid-19 Descaling
Covid-19 resulted in exceptional growth and fiscal results in the prior periods. Demobilisation of cost centres and account functions represented a sizable challenge in the period.
The costs of de-mobilisation, especially in light of a Tier 1 non-payment, remained a sticky and the dominant fiscal feature of the period. Given full payment by other Tier 1 contracts operated by SSGC we consider this Tier 1 non-payment position an aberration.
DoS / Extortion Cyber-attack
We reply heavily on technology, an unmitigated attack could hamper payroll processes and other critical financial processes if at critical process points in monthly cycles.
All our application software and data are held off site under the care of best in class service providers with full recovery protocols from such attacks thus minimising downtime. Cyber insurance in place.
SSGC LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 NOVEMBER 2023
- 4 -
Key performance indicators
The board continue to use both financial and non-financial key performance indicators to manage the business. The business maintains a strong management information function which is focused on real time and accurate reporting. Such reporting sees particular focus on client and staff satisfaction levels, contract delivery metrics, account profitability and cash flow.
The key financial performance indicators used to review and monitor the Company are shown below:
Metric 2023 2022*
Revenue (£) 8.65m 80.18m
Gross Profit (£) 0.97m 6.58m
Gross Profit % 11.2 8.2
Net Assets (£) 0.65m 1.66m
*The 2022 figures are prepared including the exceptional Covid-19 revenue results and partial write down of
the Tier 1 non-payment position.
The key non-financial performance indicators used to review and monitor the Company are shown below:
Unable to Cover (UTC) % - The highest level SLA aligned customer delivery KPI result. Used in our bids and performance data available for existing clients only and Staff Survey Scores - tracking scores across multiple performance categories.
Other information and explanations
Going concern and development
The board remain optimistic in the continued underlying growth of the business. The going concern forecast and review work for this years report is based on current Order Book forecasts alone and the associated profitability and cashflow forecasts.
The order book and work in progress combined with the CCS RM6257 framework have provided a strong order book and work in progress pipeline.
Environmental actions statement and SECR
The Board believes good environmental practices, such as recycling, minimising waste and energy conservation, support strategy by our enhancing reputation. However, due to the nature of our activities generally, we do not have a significant environmental impact.
Efficiency Actions Taken
The following actions have been taken by the Company in the year:
Increased use of electric vehicles
Widespread use of a paperless approach wherever possible
Mothballing of the unutilised head office areas
SSGC LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 NOVEMBER 2023
- 5 -
Section 172(1) statement
S172(1) of the Companies Act requires Directors of a Company to act in the way they consider, in good faith, would be the most likely to promote the success of the Company for the benefit of its members as a whole, taking into account:
The likely consequences of any decision in the long term
The interests of the Company's employees
The need to foster the Company's business relationships with suppliers, customers and others
The impact of the Company's operations on the community and environment
The desirability of the Company maintaining a reputation for high standards of business conduct; and
The nature of the business means we have a continuous dialogue with a wide group of stakeholders and the views of our stakeholders are taken into account before decisions are put to Board for a decision.
The disclosures set out below are some examples of how the Directors have had regard to the matters set out in s172 (1) (a) to (f) when discharging their duties.
Please also refer to information in the Strategic Report and the Directors' Report regarding information about the environment, sustainability, the community and employees, including matters in relation to anti-corruption, bribery and modern-day slavery. All being matters where the Board of Directors have had regard to when performing their duties.
Board Decision:
To continue to target Tier 1 providers and government work despite the disappointing experience with a supplier not respecting employment, GDPR and commercial agreements.
Application of s172:
The Board considered the experience with that supplier to be abnormal given two similar agreements functioning well.
Sustainability information statement
SSGC LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 NOVEMBER 2023
- 6 -
Social matters, charities and community
The Board believes running a profitable and growing business, which creates jobs and contributes to the economic success of the areas in which it operates, is a platform for good corporate social responsibility. We have a long-standing commitment to support our staff in developing themselves through providing free security academy training available to all and working with and providing donations to charities aligned to our staff centric mission.
We benefit from our strong relationships with veterans networks. Our primary charitable donation for the year was a charity focused on giving veterans a helping hand back into long term work. An example of the work undertaken by the charity being work placements the annual Race of Remembrance.
Sustainability
To deliver strong, sustainable results over the long term we recognise we need to operate in a sustainable manner and have therefore adopted core principles to business operations which provide a framework for both managing risk and maintaining its position as a good corporate citizen.
Developing our people
The Company continues to grow and create opportunities for staff at all levels. Our success in developing people is based on finding the right blend of learning on the job, through engaging and challenging tasks, learning from colleagues through collaboration, coaching and mentoring, and formal learning through structured training, education and development programmes.
The Company will continue to provide opportunities through growth to those that want to advance whilst also respecting that for many a fulfilling role is doing their current work to the best of their abilities in a supportive environment.
Diversity and inclusion
SSGC practice equal opportunities and welcome diversity in all its forms, recognising the value of diversity in the workplace and its rewards of encouraging creativity, broader cultural understanding and access to a wider pool of talent.
Political donations
The Company made no political donations in the year (2022: nil)
Modern slavery
SSGC is committed to preventing acts of modern slavery and human trafficking from occurring within its business and supply chain and expects its suppliers to adopt the same high standards. As part of our commitment to combating modern slavery, we have adopted a policy which covers our appointment of suppliers. We expect all of our suppliers to adhere to our Anti-Slavery Policy and will not tolerate slavery and human trafficking within our supply chains.
Anti-Bribery policy
We value our reputation for ethical behaviours and upholding the utmost integrity in our business. SSGC does not tolerate bribery and corruption and we ensure all our employees and suppliers are aware of our approach. We have clear and unambiguous policies, provide training to staff and encourage the reporting of suspicious matters.
SSGC LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 NOVEMBER 2023
- 7 -
Mr D R Stubbs
Director
3 April 2025
SSGC LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 30 NOVEMBER 2023
- 8 -
The directors present their annual report and financial statements for the Period ended 30 November 2023.
Results and dividends
The results for the Period are set out on page 13.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the Period and up to the date of signature of the financial statements were as follows:
Mr G K Dungworth
Mr D R Stubbs
Disabled persons
The Company gives full consideration to applications for employment from disabled persons where the requirements for the job can be adequately fulfilled by a disabled person. Where existing employees become disabled, it is the Company's policy wherever practicable to provide continuing employment under normal terms and conditions and to provide training and career development and promotion to disabled employees wherever appropriate.
Employee involvement
The Company places considerable value on the involvement of its employees and making sure that employees feel involved in the Company and are committed to its goals. If we are to keep them engaged, communication must be a two-way culture that encourages employee feedback. To that end we formalise the staff feedback process through regular surveys and publish transparently the results, using these are sources for our development planning.
Statement of directors' responsibilities
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:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s 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.
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.
SSGC LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 NOVEMBER 2023
- 9 -
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr D R Stubbs
Director
3 April 2025
SSGC LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SSGC LIMITED
- 10 -
Opinion
We have audited the financial statements of SSGC Limited (the 'company') for the Period ended 30 November 2023 which comprise the income statement, the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the 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 Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 30 November 2023 and of its loss for the Period then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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.
Material uncertainty related to going concern
We draw attention to Note 1 in the financial statements, which indicates that the company's post balance sheet date results reflect that its current liabilities exceeded its total assets.
As stated in Note 1, these events or conditions, along with other matters as set forth in Note 1, indicate that a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern.
Our opinion is not modified in respect of this matter.
In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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.
SSGC LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SSGC LIMITED (CONTINUED)
- 11 -
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial Period for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
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:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the 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.
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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
SSGC LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SSGC LIMITED (CONTINUED)
- 12 -
We obtained an understanding of the legal and regulatory framework applicable to both the company itself and the industry in which it operates. We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience and through discussion with the directors and other management. The most significant were identified as the Companies Act 2006, UK GAAP (FRS102) and relevant tax legislation.
We considered the extent of compliance with those laws and regulations as part of our procedures on the related financial statements. Our audit procedures included:
making enquires of directors and management as to where they consider there to be a susceptibility to fraud and whether they have any knowledge or suspicion of fraud;
obtaining an understanding of the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations;
assessing the design effectiveness of the controls in place to prevent and detect fraud;
assessing the risk of management override including identifying and testing journal entries;
challenging the assumptions and judgements made by management in its significant accounting estimates.
Despite the audit being planned and conducted in accordance with ISAs (UK) there remains an unavoidable risk that material misstatements in the financial statements may not be detected owing to inherent limitations of the audit, and that by their very nature, any such instances of fraud or irregularity likely involve collusion, forgery, intentional misrepresentations, or the override of internal controls.
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.
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.
Emma Skinner FCCA (Senior Statutory Auditor)
For and on behalf of Haines Watts, Statutory Auditor
Chartered Accountants
Old Station House
Station Approach
Swindon
Wiltshire
SN1 3DU
4 April 2025
SSGC LIMITED
INCOME STATEMENT
FOR THE PERIOD ENDED 30 NOVEMBER 2023
- 13 -
Period
Year
ended
ended
30 November
31 May
2023
2022
Notes
£
£
Turnover
3
8,653,970
80,181,609
Cost of sales
(7,682,430)
(73,598,088)
Gross profit
971,540
6,583,521
Administrative expenses
(3,938,370)
(6,246,443)
Other operating income
2,198,704
Operating (loss)/profit
4
(768,126)
337,078
Interest receivable and similar income
7
3,273
6,463
Interest payable and similar expenses
8
(143,604)
(130,943)
(Loss)/profit before taxation
(908,457)
212,598
Tax on (loss)/profit
9
(98,404)
(38,865)
(Loss)/profit for the financial Period
(1,006,861)
173,733
The income statement has been prepared on the basis that all operations are continuing operations.
SSGC LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 30 NOVEMBER 2023
- 14 -
Period
Year
ended
ended
30 November
31 May
2023
2022
£
£
(Loss)/profit for the Period
(1,006,861)
173,733
Other comprehensive income
-
-
Total comprehensive income for the Period
(1,006,861)
173,733
SSGC LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
30 NOVEMBER 2023
30 November 2023
- 15 -
30 November 2023
31 May 2022
Notes
£
£
£
£
Fixed assets
Goodwill
11
44,800
118,038
Other intangible assets
11
8,944
71,996
Total intangible assets
53,744
190,034
Tangible assets
12
75,020
132,394
128,764
322,428
Current assets
Stocks
13
247,005
974,282
Debtors
14
4,421,962
10,294,968
Cash at bank and in hand
101,318
1,313,697
4,770,285
12,582,947
Creditors: amounts falling due within one year
15
(4,247,009)
(11,246,474)
Net current assets
523,276
1,336,473
Net assets
652,040
1,658,901
Capital and reserves
Called up share capital
19
300
300
Profit and loss reserves
651,740
1,658,601
Total equity
652,040
1,658,901
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 3 April 2025 and are signed on its behalf by:
Mr D R Stubbs
Director
Company registration number 04494633 (England and Wales)
SSGC LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 NOVEMBER 2023
- 16 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 June 2021
300
5,584,868
5,585,168
Period ended 31 May 2022:
Profit and total comprehensive income
-
173,733
173,733
Dividends
10
-
(4,100,000)
(4,100,000)
Balance at 31 May 2022
300
1,658,601
1,658,901
Period ended 30 November 2023:
Loss and total comprehensive income
-
(1,006,861)
(1,006,861)
Balance at 30 November 2023
300
651,740
652,040
SSGC LIMITED
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 30 NOVEMBER 2023
- 17 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
24
343,463
(3,102,480)
Interest paid
(143,604)
(130,943)
Income taxes paid
(150,000)
(1,156,071)
Net cash inflow/(outflow) from operating activities
49,859
(4,389,494)
Investing activities
Purchase of tangible fixed assets
(2,500)
Repayment of loans
(2,383)
(105,906)
Interest received
3,273
6,463
Net cash generated from/(used in) investing activities
890
(101,943)
Financing activities
Dividends paid
(4,100,000)
Net cash used in financing activities
-
(4,100,000)
Net increase/(decrease) in cash and cash equivalents
50,749
(8,591,437)
Cash and cash equivalents at beginning of Period
(499,241)
8,092,196
Cash and cash equivalents at end of Period
(448,492)
(499,241)
Relating to:
Cash at bank and in hand
101,318
1,313,697
Bank overdrafts included in creditors payable within one year
(549,810)
(1,812,938)
SSGC LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 NOVEMBER 2023
- 18 -
1
Accounting policies
Company information
SSGC Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 19 Ergo Business Park, Kelvin Road, Swindon, Wiltshire, SN3 3JW.
1.1
Reporting period
The financial statements are presented for an 18-month period. As a result, the comparative amounts presented in the financial statements (including the related notes) are not entirely comparable.
1.2
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.
1.3
Going concern
These financial statements are prepared on the going concern basis. The directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future. However, the directors are aware of certain material uncertainties which may cause doubt on the company's ability to continue as a going concern.
Post year end, the company’s current liabilities exceed its current assets. While the asset side of the Serco mediation (refer to the Strategic Report for detail) was concluded in April 2024, that included a requirement to resolve matters with thirty-four affected supply chain partners, at the time of reporting that work is materially complete but ongoing.
The tax liabilities of the associated works were calculated and reported upon in the company's 2021 financial statements, pre-dating the dispute. The veracity of Shopworks staff attendance records is now established (refer to the Strategic Report for detail). The directors therefore believe that the company overstated its tax liabilities in prior periods in relation to corporation tax and employment tax. A significant and complex tax records reconciliation will be required once complete. HMRC have been kept fully informed on the matter from April 2022. The full tax effects and indeed unwinding of this position are still to complete. Management is unable to determine, with any certainty, the timing and value of the associated cash outflows still related to this dispute or indeed the stance of all parties involved.
On the back of settling the Serco dispute and the RM6257 government procurement framework award, the company is pursuing debt and equity fund-raising and potential disposal opportunities aimed at achieving a cash injection.
As a result, the Directors resolved that the going concern basis is appropriate.
The Directors recognise that there is a material uncertainty related to the above events and conditions that may cast significant doubt on the Company's ability to continue as a going concern, and, therefore, that it may be unable to realise its assets and discharge its liabilities in the normal course of business.
SSGC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 19 -
1.4
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 contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
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 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.
1.6
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:
Computer software
20% on cost
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:
Fixtures and fittings
20% on cost
Computer equipment
20% on cost
Motor vehicles
20% on cost
SSGC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 20 -
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.
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.
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 statement of financial position 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.
SSGC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 21 -
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.
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, loans from fellow group companies and preference shares that are classified as debt, 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.
SSGC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 22 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
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 income statement 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 income statement, 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.
SSGC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 23 -
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.
1.16
Leases
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.
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.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Serco dispute
In July 2022 Serco claimed to hold attendance records indicating a £4.1m credit was required in relation to our billing associated for services delivered starting in July 2021. SSGC had already booked all disputed services (raised in July 22) into its accounts ending May 2022 and therefore already reported revenue, wages, employment tax and corporation tax without accounting for this £4.1m dispute. In Aug 23 Serco admitted an overholding of payment and paid SSGC £509k reducing its dispute value to £3.6m as reported in the prior period. This dispute has the effect on bad debt and related liabilities outlined below.
Bad debt provision
At this year end Serco continued to withhold unpaid invoices. In these accounts, management have provided for £1.3m (2022: £2.2m) of bad debts in respect of this matter. Post year end in Apr 24 the matter was fully resolved at mediation.
Related liabilities
In Apr 24 and following the current year end SSGC and Serco mediated and established the veracity of the Shopworks attendance data. Under settlement SSGC provided Serco a service credit and is now working to correct its supply liabilities and its own overpaid PAYE wages, we have yet to reconcile and correct associated tax liabilities.
3
Turnover and other revenue
SSGC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 NOVEMBER 2023
3
Turnover and other revenue
(Continued)
- 24 -
2023
2022
£
£
Other revenue
Interest income
3,273
6,463
Accrued supplier credit notes
1,985,042
-
The £2.7m 'in contract' Serco dispute affected around twenty sub-suppliers for whom SSGC was simply the contracting intermediary, some being at Serco's direct request.
These sub-suppliers were owed £1.9m of the initial £2.7m Serco dispute, and this dispute is flowed through to the affected sub-suppliers.
Post year end, SSGC have agreed settlement terms with these sub-suppliers, and have been issued with supplier credit notes totalling £1.9m of this liability.
A provision for these credit notes has been reflected in these financial statements.
4
Operating (loss)/profit
2023
2022
Operating (loss)/profit for the period is stated after charging:
£
£
Exchange losses
692
3,986
Fees payable to the company's auditor for the audit of the company's financial statements
38,667
88,414
Depreciation of owned tangible fixed assets
57,374
38,167
Amortisation of intangible assets
136,290
119,707
Operating lease charges
103,012
41,424
5
Employees
The average monthly number of persons (including directors) employed by the company during the Period was:
2023
2022
Number
Number
Staff
254
2,387
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
5,078,644
47,514,970
Social security costs
422,796
3,771,243
Pension costs
61,839
501,436
5,563,279
51,787,649
SSGC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 NOVEMBER 2023
- 25 -
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
204,167
304,167
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
116,667
154,167
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
890
4,462
Other interest income
2,383
2,001
Total income
3,273
6,463
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
890
4,462
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
143,604
130,943
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
71,093
Deferred tax
Origination and reversal of timing differences
27,311
38,865
Total tax charge
98,404
38,865
SSGC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 NOVEMBER 2023
9
Taxation
(Continued)
- 26 -
The actual charge for the Period can be reconciled to the expected (credit)/charge for the Period based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
(Loss)/profit before taxation
(908,457)
212,598
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 25.00%)
(227,114)
53,150
Tax effect of expenses that are not deductible in determining taxable profit
(13,848)
(14,285)
Unutilised tax losses carried forward
268,273
Under/(over) provided in prior years
71,093
Taxation charge for the period
98,404
38,865
10
Dividends
2023
2022
£
£
Final paid
4,100,000
11
Intangible fixed assets
Goodwill
Computer software
Total
£
£
£
Cost
At 1 June 2022 and 30 November 2023
350,000
370,986
720,986
Amortisation and impairment
At 1 June 2022
231,962
298,990
530,952
Amortisation charged for the Period
73,238
63,052
136,290
At 30 November 2023
305,200
362,042
667,242
Carrying amount
At 30 November 2023
44,800
8,944
53,744
At 31 May 2022
118,038
71,996
190,034
SSGC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 NOVEMBER 2023
- 27 -
12
Tangible fixed assets
Fixtures and fittings
Computer equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 June 2022 and 30 November 2023
1,416
7,631
184,798
193,845
Depreciation and impairment
At 1 June 2022
635
3,836
56,980
61,451
Depreciation charged in the Period
425
1,509
55,440
57,374
At 30 November 2023
1,060
5,345
112,420
118,825
Carrying amount
At 30 November 2023
356
2,286
72,378
75,020
At 31 May 2022
781
3,795
127,818
132,394
13
Stocks
2023
2022
£
£
Work in progress
247,005
974,282
14
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
2,213,848
9,592,774
Amounts owed by group undertakings
1,672,511
45,912
Other debtors
467,839
474,186
Prepayments and accrued income
45,338
132,359
4,399,536
10,245,231
Deferred tax asset (note 17)
22,426
49,737
4,421,962
10,294,968
Amounts owed by group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.
Trade debtors are stated after provisions for impairment of £1.3m (2022: £2.2m). The Directors review of the matter is detailed in the KPI table in the Strategic Report.
SSGC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 NOVEMBER 2023
- 28 -
15
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans and overdrafts
16
549,810
1,812,938
Trade creditors
1,667,934
5,526,098
Corporation tax
446,634
525,541
Other taxation and social security
1,320,078
1,539,735
Other creditors
205,160
1,182,632
Accruals and deferred income
57,393
659,530
4,247,009
11,246,474
16
Loans and overdrafts
2023
2022
£
£
Bank overdrafts
549,810
1,812,938
Payable within one year
549,810
1,812,938
Invoice discounting & financing is secured by way of fixed and floating charges over the assets and undertakings of the company.
17
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Assets
Assets
2023
2022
Balances:
£
£
Accelerated capital allowances
18,562
7,852
Retirement benefit obligations
3,864
41,885
22,426
49,737
2023
Movements in the Period:
£
Asset at 1 June 2022
(49,737)
Charge to profit or loss
27,311
Asset at 30 November 2023
(22,426)
SSGC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 NOVEMBER 2023
- 29 -
18
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
61,839
501,436
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.
19
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
300
300
300
300
20
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
52,417
52,333
Between two and five years
53,417
111,333
105,834
163,666
21
Related party transactions
At the year end, a loan balance of £150,238 (2022: £120,209) was owed to the company by Tutandos Limited. This loan is unsecured, interest free, has no fixed date of repayment and is repayable on demand.
At the year end, a loan balance of £145,159 (2022: £144,859) was owed to the company by Instaeng Limited, a company owned by Mr G Dungworth and Mr D Stubbs, directors of the company. This loan is unsecured, interest free, has no fixed date of repayment and is repayable on demand.
SSGC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 NOVEMBER 2023
- 30 -
22
Directors' transactions
Dividends totalling £0 (2022 - £0) were paid in the Period in respect of shares held by the company's directors.
Description
% Rate
Opening balance
Amounts advanced
Closing balance
£
£
£
Mr D R Stubbs -
-
105,906
2,383
108,289
105,906
2,383
108,289
23
Ultimate controlling party
The ultimate controlling party is SGTS Holdings Limited.
SGTS Holdings Limited is a company registered in the UK, company number 13007666, registered address Unit 19 Ergo Business Park, Kelvin Road, Swindon, United Kingdom, SN3 3JW.
24
Cash generated from/(absorbed by) operations
2023
2022
£
£
(Loss)/profit after taxation
(1,006,861)
173,733
Adjustments for:
Taxation charged
98,404
38,865
Finance costs
143,604
130,943
Investment income
(3,273)
(6,463)
Amortisation and impairment of intangible assets
136,290
119,707
Depreciation and impairment of tangible fixed assets
57,374
38,167
Movements in working capital:
Decrease in stocks
727,277
937,284
Decrease in debtors
5,848,078
5,934,018
Decrease in creditors
(5,657,430)
(10,468,734)
Cash generated from/(absorbed by) operations
343,463
(3,102,480)
25
Analysis of changes in net debt
1 June 2022
Cash flows
30 November 2023
£
£
£
Cash at bank and in hand
1,313,697
(1,212,379)
101,318
Bank overdrafts
(1,812,938)
1,263,128
(549,810)
(499,241)
50,749
(448,492)
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