Company registration number 14333330 (England and Wales)
HANDEL GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
HANDEL GROUP LIMITED
COMPANY INFORMATION
Directors
Mr B S Forsey
Mr S Smogur
Mr. S Purchase
Company number
14333330
Registered office
The Colour Hub
Millbuck Close
Elgin Drive
Swindon
Wiltshire
United Kingdom
SN2 8XU
Auditor
Azets Audit Services
Epsilon House
The Square
Gloucester Business Park
Gloucester
Gloucestershire
United Kingdom
GL3 4AD
HANDEL GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 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 - 41
HANDEL GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The directors present the strategic report for the year ended 31 December 2023.
Review of the business
Following completion of the management buyout in October 2022, 2023 was ‘a year of two halves’.
Through the first half of the year the group continued to consolidate on the strong foundations laid throughout 2022, namely margin growth through improved client commercials and strict cost control within the ESP Colour Limited business ("ESP").
The group also grew its higher margin direct B2C revenues through investment in POD sales. This investment proved to be highly successful, delivering a return within the financial year with higher revenues continuing to the current period and beyond.
The group won and grew a number of new clients within the year and re-contracted with 2 of its largest existing direct commercial print clients. Coupled with strong relationships with the UK’s largest print managers, the group remains well positioned for continued revenue growth, although growth of higher margin revenues will remain a priority going forward.
From a strategic perspective, the focus in the first half of the year was to seek opportunities to capitalise on ongoing market consolidation within the UK print industry. This strategy was pursued through identification of suitable acquisition targets, with the strategic objectives being:-
To secure greater market share within the group’s core Litho and Digital commercial printing sectors;
To enter new, higher growth sectors within the print industry;
To bring additional profitable and cash generative revenues into the group;
To deliver lower material costs and higher margins to the acquired entities by capitalising on the group’s greater buying power.
Having identified a number of opportunities during the first half of the year, following completion of due diligence, in October 2023 the group acquired Goldcrest Reach Limited (Goldcrest), a group of three trading entities plus a number of holding companies. The trading entities acquired were:-
Whilst it had appeared that the acquisition of Goldcrest would deliver all of the stated strategic objectives, post completion it was quicky apparent that the financial position of Severnprint was significantly more constrained than had previously appeared.
As a result, the last quarter of the year was dominated by the director’s attempts to make Severnprint a viable business. This entailed identification and execution of measures to reduce operating costs, pay down existing debts, increase sales and stem the outflow of cash from the acquired business.
Unfortunately, despite the efforts made to turn the business around, in early 2024 the directors made the incredibly difficult decision to place Severnprint into administration. This decision was made in order to prevent any damage to and ensure the ongoing prosperity of the rest of the group.
Indeed, it is worth noting at this point that the negative net liability position within the consolidated accounts as at 31 December 2023 is solely a result of the requirement under UK GAAP to recognise all liabilities of Severnprint Limited, but to apply impairments where relevant to its assets, as at the balance sheet date. Once the administration process has been concluded, the liabilities will be derecognised accordingly.
As part of the strategy following the administration of Severnprint, the group disposed of its investment in Goldcrest (Adhesive) Products Limited in October 2024. This was a trade sale which saw the group realise a good return on its initial investment, providing a positive balance sheet improvement post year end following the impact of Severnprint’s administration. The full benefit of the sale will be reflected in the group accounts for the period ended 31 December 2024 accordingly.
HANDEL GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
As at the date of this report, and following financial, strategic and operational support during 2023, Jafre remains part of the group and is trading positively. The directors are confident that the business will prove a positive investment over the coming period.
Despite the challenges brought about by Severnprints administration, the group traded strongly during 2024. On an annualised basis per the consolidated management accounts, and reflective of underlying trading for ESP and Jafre Limited (excluding Severnprint and Goldcrest (Adhesive) Products Limited on the basis of the post year end restructuring set out above), in the 12 months to December 2024:-
• Revenues exceeded £24,000,000 for the first time;
• Gross margin was just under £6,500,000 at over 26%;
• EBITDA was over £2,300,000;
• EBT was nearly £1,100,000.
2025 has also started in positive fashion with both ESP and Jafre trading profitably through the first quarter. The strategic priority for the remainder of 2025 is to complete and consolidate around a number of ‘high impact' operational & sales initiatives currently being delivered, all of which will drive further margin increases through increased process automation, efficiency and further sales growth.
Principal risks and uncertainties
Financial risk. The group has external financing in relation to both working capital and asset purchase requirements and is therefore exposed to movements in interest rates along with liquidity risk. However, the vast majority of the group’s borrowing is at a fixed rate of interest and the directors closely monitor borrowing facilities in place and operate within said facilities in order to mitigate this risk.
Credit risk. Credit risk arises from the group offering credit terms to its customers to which there is a risk of non-payment. In order to reduce this risk the directors closely manage the sales ledger and also insures its trade debts against non-payment. Additionally, the business utilises credit facilities offered by some key suppliers. The directors retain close working relationships with these suppliers, operating transparently and communicating regularly.
Inflation. The business purchases large amounts of materials, primarily paper and associated materials. Whilst the majority of the business revenues are based on variable pricing which reflect these increases, some contracts are based on fixed prices. The directors have managed this risk through contractual terms that allow periodic review of prices to limit downside risk.
Health and Safety. The group is committed to ensuring the Health and Safety of its employees and site visitors. Accordingly, it is making investments in this crucial area through recruitment of dedicated resources and providing external training to key operational staff.
Key performance indicators
The directors consider the key financial performance indicators (KPIs) when assessing the performance of the group. The key performance indicators used by the directors are level of turnover and the gross profit margin.
Mr S Smogur
Director
23 April 2025
HANDEL GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2023.
Principal activities
The principal activity of the company and group is that of printing.
Results and dividends
The results for the year are set out on page 9.
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 B S Forsey
Mr S Smogur
Mr. S Purchase
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 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:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
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.
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.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of 'fair review of the business' and 'key performance indicators'.
HANDEL GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
On behalf of the board
Mr S Smogur
Director
23 April 2025
HANDEL GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HANDEL GROUP LIMITED
- 5 -
We have audited the financial statements of Handel Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise 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 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, except for the possible effects of the matter described in the basis for qualified opinion section of our report, the financial statements:
give a true and fair view of the state of the group's affairs as at 31 December 2023 and of its loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for qualified opinion
Fixed assets
Management were unable to provide us with a breakdown of certain tangible fixed assets with a total aggregate cost and depreciation of £1,112,314 and £1,112,314 respectively as at 31 December 2023.
Subsidiary statement of comprehensive income and balance sheet
Management were also unable to provide us with certain information with respect to Severnprint Limited, a subsidiary entity acquired during the period. We were unable to satisfy ourselves by alternative means concerning the following matters as at 31 December 2023, and thus sufficient appropriate audit evidence could not be obtained in relation to the items set out:
Area
Basis for qualification
Tangible fixed assets
We were unable to gain access to the premises at which tangible fixed assets were held, and consequently we were unable to verify the existence of tangible fixed assets with a total aggregate cost of £2,167,933 and accumulated depreciation of £1,488,992, with subsequent impairments of £571,100, resulting in a net book value of £107,841 as at 31 December 2023. Consequently we were unable to determine whether any adjustment to these amounts were necessary.
We were unable to verify the cost of tangible fixed assets amounting to £1,650,769. Of these assets, items with a total aggregate cost of £239,228 were disposed, and impairments amounting to £448,167 were applied during the year end 31 December 2023. Consequently, we were unable to determine whether any adjustment to the corresponding amounts included in tangible fixed assets, losses on dsposal included within administrative expenses, or impairment losses included within exceptional items were necessary.
We were unable to verify the basis for recoverable amounts applied to tangible fixed assets resulting in impairments of £571,100 in the year end 31 December 2023. Consequently, we were unable to determine whether any adjustment to the corresponding amount in impairment losses included within exceptional items were necessary.
Raw materials and consumables
We were unable to verify the basis for recoverable amounts applied to raw materials and consumables resulting in provisions of £120,523 in the year end 31 December 2023. Consequently, we are unable to determine whether any adjustment to the corresponding amount included within cost of sales were necessary.
Trade debtors
We were unable to verify the recoverability of trade debtors amounting to £530,983 as at 31 December 2023, included within trade debtors amounting to £915,064. A provision of £81,813 was included, for which we were unable to verify the basis. Consequently, we were unable to determine whether any adjustment to the corresponding amounts included in trade debtors and the bad debt expense included within administritive expenses respectively, were necessary.
HANDEL GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HANDEL GROUP LIMITED
- 6 -
Interest payable and similar expenses
Management were unable to provide us with sufficient evidence to support expenditure allocated to interest payable and similar expenses totalling £137,735 in the year end 31 December 2023. Consequently we were unable to determine whether any adjustments to these amounts were necessary.
In addition, were any adjustment required with respect to the above matters, the strategic report narrative would also need to be amended.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 qualified opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and 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.
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.
As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning certain balance sheet and profit and loss items. We have concluded that where the other information refers to such balances, it may be materially misstated for the same reason.
Basis for qualified opinion on other matters prescribed by the Companies Act 2006
Except for the possible effects of the matters described in the basis for qualified opinion section of our report, 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 year 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.
HANDEL GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HANDEL GROUP LIMITED
- 7 -
Matters on which we are required to report by exception
Except for the matters described in the basis for qualified opinion section of our report, 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 and the directors' report.
Arising solely from the limitation on the scope of our work described in the basis for qualified opinion section of our report:
we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and
we were unable to determine whether adequate accounting records had been maintained.
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:
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 directors' remuneration specified by law are not made.
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 parent 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.
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.
HANDEL GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HANDEL GROUP LIMITED
- 8 -
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the entity through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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.
Robert Hull (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
23 April 2025
Chartered Accountants
Statutory Auditor
Epsilon House
The Square
Gloucester Business Park
Gloucester
Gloucestershire
United Kingdom
GL3 4AD
HANDEL GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
Year
Period
ended
ended
31 December
31 December
2023
2022
Notes
£
£
Turnover
3
21,691,954
4,084,161
Cost of sales
(17,032,873)
(3,308,294)
Gross profit
4,659,081
775,867
Administrative expenses
(4,967,910)
(587,242)
Other operating income
211,629
-
Operating (loss)/profit
5
(97,200)
188,625
Share of results of associates
(25,376)
-
Interest receivable and similar income
9
27
Interest payable and similar expenses
10
(553,509)
(91,518)
Exceptional items
(1,118,649)
(Loss)/profit before taxation
(1,794,707)
97,107
Tax on (loss)/profit
11
72,496
(Loss)/profit for the financial year
27
(1,722,211)
97,107
Other comprehensive income
Revaluation of tangible fixed assets
7,500
135,000
Total comprehensive income for the year
(1,714,711)
232,107
(Loss)/profit for the financial year is attributable to:
- Owners of the parent company
(1,611,698)
87,396
- Non-controlling interests
(110,513)
9,711
(1,722,211)
97,107
Total comprehensive income for the year is attributable to:
- Owners of the parent company
(1,604,198)
222,396
- Non-controlling interests
(110,513)
9,711
(1,714,711)
232,107
HANDEL GROUP LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
12
2,507,791
2,032,356
Other intangible assets
12
82,681
57,117
Total intangible assets
2,590,472
2,089,473
Tangible assets
13
4,792,398
2,754,643
Investments
14
28,509
53,885
7,411,379
4,898,001
Current assets
Stocks
17
1,628,813
1,683,057
Debtors
18
5,889,441
4,525,931
Cash at bank and in hand
326,228
837,843
7,844,482
7,046,831
Creditors: amounts falling due within one year
19
(10,169,663)
(6,404,151)
Net current (liabilities)/assets
(2,325,181)
642,680
Total assets less current liabilities
5,086,198
5,540,681
Creditors: amounts falling due after more than one year
20
(5,856,812)
(4,819,414)
Provisions for liabilities
Deferred tax liability
23
468,841
246,011
(468,841)
(246,011)
Net (liabilities)/assets
(1,239,455)
475,256
Capital and reserves
Called up share capital
25
100
100
Revaluation reserve
26
7,500
135,000
Profit and loss reserves
27
(1,389,302)
87,396
Equity attributable to owners of the parent company
(1,381,702)
222,496
Non-controlling interests
142,247
252,760
(1,239,455)
475,256
HANDEL GROUP 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 23 April 2025 and are signed on its behalf by:
23 April 2025
Mr S Smogur
Director
Company registration number 14333330 (England and Wales)
HANDEL GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
14
3,609,025
3,500,000
Current assets
Debtors
18
7,816
100
Creditors: amounts falling due within one year
19
(880,737)
(366,667)
Net current liabilities
(872,921)
(366,567)
Total assets less current liabilities
2,736,104
3,133,433
Creditors: amounts falling due after more than one year
20
(1,529,166)
(1,833,333)
Net assets
1,206,938
1,300,100
Capital and reserves
Called up share capital
25
100
100
Profit and loss reserves
27
1,206,838
1,300,000
Total equity
1,206,938
1,300,100
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £93,162 (2022 - £1,300,000 profit).
The financial statements were approved by the board of directors and authorised for issue on 23 April 2025 and are signed on its behalf by:
23 April 2025
Mr S Smogur
Director
Company registration number 14333330 (England and Wales)
HANDEL GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Revaluation reserve
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
Balance at 2 September 2022
-
-
-
Period ended 31 December 2022:
Profit for the period
-
-
87,396
87,396
9,711
97,107
Other comprehensive income:
Revaluation of tangible fixed assets
-
135,000
-
135,000
-
135,000
Total comprehensive income
-
135,000
87,396
222,396
9,711
232,107
Issue of share capital
25
100
-
-
100
-
100
Acquisition of subsidiary
-
-
-
-
243,049
243,049
Balance at 31 December 2022
100
135,000
87,396
222,496
252,760
475,256
Period ended 31 December 2023:
Loss for the period
-
-
(1,611,698)
(1,611,698)
(110,513)
(1,722,211)
Other comprehensive income:
Revaluation of tangible fixed assets
-
7,500
-
7,500
-
7,500
Total comprehensive income
-
7,500
(1,611,698)
(1,604,198)
(110,513)
(1,714,711)
Transfers
-
(135,000)
135,000
-
-
-
Balance at 31 December 2023
100
7,500
(1,389,302)
(1,381,702)
142,247
(1,239,455)
HANDEL GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 2 September 2022
-
Period ended 31 December 2022:
Profit and total comprehensive income for the period
-
1,300,000
1,300,000
Issue of share capital
25
100
-
100
Balance at 31 December 2022
100
1,300,000
1,300,100
Period ended 31 December 2023:
Profit and total comprehensive income
-
(93,162)
(93,162)
Balance at 31 December 2023
100
1,206,838
1,206,938
HANDEL GROUP 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
35
1,959,540
248,853
Interest paid
(553,509)
(91,518)
Income taxes paid
(158,433)
Net cash inflow from operating activities
1,247,598
157,335
Investing activities
Purchase of business
(21,525)
(1,300,000)
Purchase of intangible assets
(52,097)
-
Purchase of tangible fixed assets
(414,308)
-
Proceeds from disposal of tangible fixed assets
422,065
-
Interest received
27
Cash acquired on purchase of business
129,458
854,600
Net cash generated from/(used in) investing activities
63,620
(445,400)
Financing activities
Proceeds from issue of shares
-
100
Repayment of borrowings
(279,167)
-
Repayment of bank loans
(107,681)
(458,250)
Proceeds from / (repayment of) finance leases obligations
(1,435,985)
1,584,058
Net cash (used in)/generated from financing activities
(1,822,833)
1,125,908
Net (decrease)/increase in cash and cash equivalents
(511,615)
837,843
Cash and cash equivalents at beginning of year
837,843
Cash and cash equivalents at end of year
326,228
837,843
HANDEL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
1
Accounting policies
Company information
Handel Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is The Colour Hub, Millbuck Close, Elgin Drive, Swindon, Wiltshire, United Kingdom, SN2 8XU.
The group consists of Handel Group Limited and all of its subsidiaries.
1.1
Reporting period
Handel Group Limited ("the company") was incorporated on 2 September 2022. Accordingly, the financial statements therefore present a comparative period shorter than one year, from 2 September 2022 to 31 December 2022.
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.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
HANDEL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.3
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.
1.4
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Handel Group 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.
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.
Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.
If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.
Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.
1.5
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
HANDEL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.6
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (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.
1.7
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
1.8
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.
1.9
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:
Software
20% or 33% straight line
Other intangibles
25% straight line
1.10
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.
HANDEL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
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
1% on valuation
Leasehold land and buildings
Over the term of the lease and 20 - 33.3% straight line
Leasehold improvements
1% on valuation
Plant and equipment
10 - 15% reducing balance, or 2 - 33% straight line
Fixtures and fittings
20 - 33% straight line
Computers
25% straight line
Motor vehicles
33% 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.
1.11
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, associates and jointly controlled entities 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.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.
Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.
In the parent company financial statements, investments in associates are accounted for at cost less impairment.
1.12
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.
HANDEL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
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.
1.13
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.
1.14
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.
1.15
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.
HANDEL GROUP 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, 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.
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.
HANDEL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 22 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
1.16
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.
1.17
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.
1.18
Provisions
Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
HANDEL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 23 -
1.19
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.
1.20
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.21
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.
1.22
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.
1.23
Distributions to equity holders
Dividends and other distributions to the company's shareholders are recognised as a liability in the financial statements in the period in which the dividends and other distributions are approved by the company's shareholders. These amounts are recognised in the statement of changes in equity.
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.
HANDEL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 24 -
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.
Depreciation
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful lives and residual values of the assets. The useful lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.
Rates of depreciation charged are considered on a line by line basis and disclosed within the accounting policy for depreciation.
Refer to the tangible fixed assets note for the carrying amount for each class of assets.
Fixed asset valuations
Freehold properties are reviewed annually for their fair value and, where this valuation differs materially to the carrying value, adjustments are made to revalue these assets. Movements in the fair value are recognised in other comprehensive income.
A non-distributable reserve has arisen in relation to historical gains recognised net of deferred taxation.
The fair value of fixed assets were reassessed as detailed in the fixed asset note and consequently a gain of £7,500 (2022: £135,000) was recognised net of taxation.
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Sale of goods
21,691,954
4,084,161
2023
2022
£
£
Turnover analysed by geographical market
UK
21,691,954
4,084,161
2023
2022
£
£
Other revenue
Interest income
27
-
HANDEL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
4
Exceptional item
As referred to in the subsidiaries note, Severnprint Limited entered into administration on 23 February 2024.
Exceptional items therefore includes the following with respect to the above:
Group
Impairments made to the goodwill apportionable to Severnprint Limited from its initial acquisition, totalling £100,677.
Group and company
Impairments made to certain assets held by Severnprint Limited as at 31 December 2023, totalling £1,017,972. These have been recognised in accordance with section 26 of FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”).
Further provisions have also been made against raw materials and consumables of £120,523 and trade debtors of £81,813 held by Severnprint Limited as at 31 December 2023, which are included in cost of sales and administrative expenses respectively, and referred to in the stocks and debtors notes respectively.
After the impairments and provisions noted above were applied, Severnprint Limited assets with a carrying value of £1,358,540 were retained within the consolidated balance sheet of the group as at 31 December 2023.
In accordance with section 11 of FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”), liabilities totalling £3,666,530 associated with Severnprint Limited have been retained within the consolidated balance sheet of the group, on the basis that none had been extinguished as at 31 December 2023. As a result, there is no corresponding offset within exceptional items with respect to derecognition of liabilities. Such liabilities will be derecognised in future periods.
5
Operating (loss)/profit
2023
2022
£
£
Operating (loss)/profit for the period is stated after charging/(crediting):
Exchange gains
(4,801)
(21)
Research and development costs
4,167
-
Depreciation of owned tangible fixed assets
445,346
50,829
Depreciation of tangible fixed assets held under finance leases
248,181
34,192
Impairment of owned tangible fixed assets
642,974
-
Loss on disposal of tangible fixed assets
443,905
-
Amortisation of intangible assets
263,617
85,260
Impairment of intangible assets
300,555
Other impairment losses
175,120
-
Operating lease charges
378,460
54,639
6
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
36,654
6,876
HANDEL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
7
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
Production
205
126
-
-
Administration
27
19
3
3
Total
232
145
3
3
Their aggregate remuneration comprised:
Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
4,883,875
886,234
Social security costs
331,373
85,133
-
-
Pension costs
118,591
20,841
5,333,839
992,208
8
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
309,395
46,347
Company pension contributions to defined contribution schemes
23,792
3,468
333,187
49,815
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2022: 3).
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
106,484
-
Company pension contributions to defined contribution schemes
11,000
-
HANDEL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
9
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
27
10
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
52,389
16,524
Interest on invoice finance arrangements
(3,225)
6,773
Interest on finance leases and hire purchase contracts
447,576
65,700
Other interest
56,769
2,521
Total finance costs
553,509
91,518
HANDEL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
11
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
35,068
Tax relating to prior year adjustments recognised in profit or loss
(24,312)
Total current tax
10,756
Deferred tax
Origination and reversal of timing differences
(83,252)
Total tax credit
(72,496)
The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
(Loss)/profit before taxation
(1,794,707)
97,107
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
(448,677)
18,450
Tax effect of expenses that are not deductible in determining taxable profit
499,633
8,175
Research and development tax credit
(71,935)
(83,314)
Under/(over) provided in prior years
(24,312)
Other differences including change in rate
(27,205)
56,689
Taxation credit
(72,496)
-
Factors that may affect future tax charges
An increase in the main rate of UK Corporation Tax from 19% to 25% intended to take effect from 1 April 2023 had been enacted at the Balance Sheet date. Consequently, a rate of 25% has been used for purposes of providing for the effects of deferred taxation.
HANDEL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
12
Intangible fixed assets
Group
Goodwill
Software
Other intangibles
Total
£
£
£
£
Cost
At 1 January 2023
4,123,671
133,598
4,257,269
Additions - separately acquired
811,714
52,097
863,811
Additions - business combinations
300,001
198,102
498,103
At 31 December 2023
5,235,386
185,695
198,102
5,619,183
Amortisation and impairment
At 1 January 2023
2,091,315
76,481
2,167,796
Amortisation charged for the year
235,602
26,533
1,482
263,617
Impairment losses
200,678
99,877
300,555
Business combinations
200,000
96,743
296,743
At 31 December 2023
2,727,595
103,014
198,102
3,028,711
Carrying amount
At 31 December 2023
2,507,791
82,681
2,590,472
At 31 December 2022
2,032,356
57,117
2,089,473
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.
More information on impairment movements in the year is given in the exceptional items note.
HANDEL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
13
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
£
£
Cost or valuation
At 1 January 2023
599,129
10,068,654
289,546
10,957,329
Additions
104,543
1,029,280
15,310
1,149,133
Additions - Business combinations
480,000
178,344
51,378
6,186,228
63,888
96,927
57,180
7,113,945
Disposals
(1,375,747)
(1,375,747)
Revaluation
10,000
10,000
At 31 December 2023
490,000
882,016
51,378
15,908,415
368,744
96,927
57,180
17,854,660
Depreciation and impairment
At 1 January 2023
454,113
7,488,661
259,912
8,202,686
Depreciation charged in the year
56,294
367
620,200
12,421
643
3,602
693,527
Impairment losses
89,719
535,313
17,942
642,974
Eliminated in respect of disposals
(520,862)
(520,862)
Business combinations
84,509
50,520
3,750,281
42,098
82,136
34,393
4,043,937
At 31 December 2023
684,635
50,887
11,873,593
332,373
82,779
37,995
13,062,262
Carrying amount
At 31 December 2023
490,000
197,381
491
4,034,822
36,371
14,148
19,185
4,792,398
At 31 December 2022
145,016
2,579,993
29,634
2,754,643
The company had no tangible fixed assets at 31 December 2023 or 31 December 2022.
HANDEL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Group
Company
2023
2022
2023
2022
£
£
£
£
Plant and equipment
3,052,870
1,898,609
More information on impairment movements in the year is given in note .
The fair value of certain items of plant and equipment was reassessed by the directors at 31st December 2022 to be £135,000. Consequently, a gain of £135,000 was recognised in profit or loss for the prior year, net of taxation. Such items were disposed of during the current year.
Land and buildings with a carrying value of £490,000 at 31 December 2023 were reassessed on the basis of a valuation carried out in January 2024 by an independent valuer, with reference to market evidence of transaction prices for similar properties. Consequently, a gain of £7,500 was recognised in other comprehensive income for the year, net of taxation.
The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:
Freehold land and buildings
2023
2022
£
£
Group
Cost
480,000
-
Accumulated depreciation
(800)
-
Carrying value
479,200
-
14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
15
3,609,025
3,500,000
Investments in associates
16
28,509
53,885
28,509
53,885
3,609,025
3,500,000
HANDEL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
14
Fixed asset investments
(Continued)
- 32 -
Movements in fixed asset investments
Group
Shares in associates
Other investments
Total
£
£
£
Cost or valuation
At 1 January 2023
53,885
158,700
212,585
Valuation changes
(25,376)
-
(25,376)
Disposals
-
(158,700)
(158,700)
At 31 December 2023
28,509
-
28,509
Impairment
At 1 January 2023
-
158,700
158,700
Disposals
-
(158,700)
(158,700)
At 31 December 2023
-
-
-
Carrying amount
At 31 December 2023
28,509
-
28,509
At 31 December 2022
53,885
-
53,885
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023
3,500,000
Additions
109,025
At 31 December 2023
3,609,025
Carrying amount
At 31 December 2023
3,609,025
At 31 December 2022
3,500,000
HANDEL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 33 -
15
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
Indirect
ESP Co Holdings Limited
Millbuck Close, Elgin Drive, Swindon, England, SN2 8XU
Ordinary
90.00
-
ESP Colour Limited
Millbuck Close, Elgin Drive, Swindon, England, SN2 8XU
Ordinary
0
90.00
ESP Smile Limited
Millbuck Close, Elgin Drive, Swindon, England, SN2 8XU
Ordinary
0
90.00
Kingfisher Print and Design Limited
Millbuck Close, Elgin Drive, Swindon, England, SN2 8XU
Ordinary
0
90.00
PrintMX Ltd
Millbuck Close, Elgin Drive, Swindon, England, SN2 8XU
Ordinary
0
90.00
Goldcrest Reach Limited
Millbuck Close, Elgin Drive, Swindon, England, SN2 8XU
Ordinary
100.00
-
Severn Media Group Holdings Limited
Millbuck Close, Elgin Drive, Swindon, England, SN2 8XU
Ordinary
0
91.00
Severn Media Group Limited
Millbuck Close, Elgin Drive, Swindon, England, SN2 8XU
Ordinary
0
91.00
Severnprint Holdings
Millbuck Close, Elgin Drive, Swindon, England, SN2 8XU
Ordinary
0
91.00
Severnprint Limited
St Anns Manor, 6-8 St Ann Street, Salisbury, SP1 2DN
Ordinary
0
91.00
Jafre Limited
Millbuck Close, Elgin Drive, Swindon, England, SN2 8XU
Ordinary
0
100.00
Goldcrest (Adhesive) Products Limited
Unit 2 The Hayes Trading Estate Folkes Road, Lye, Stourbridge, West Midlands, England, DY9 8RG
Ordinary
0
100.00
On 12 October 2023, the company acquired its holding in Goldcrest Reach Limited and by extension, all entities listed below it in the above table. Refer to the acquisitions note for full detail.
Severnprint Limited entered into administration on 23 February 2024.
The holding in Goldcrest (Adhesive) Products Limited was disposed of on 31 October 2024.
16
Associates
Details of associates at 31 December 2023 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
The Chateau Publishing Limited
C/O Fruition Accountancy, Unit 4 Three Spires House, Station Road, Lichfield, United Kingdom, WS13 6
Ordinary
24
The holding in The Chateau Publishing Limited was disposed of in March 2024.
HANDEL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 34 -
17
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
1,424,185
1,387,826
-
-
Work in progress
204,628
295,231
-
-
1,628,813
1,683,057
-
-
Raw materials and consumables are stated after provisions totalling £120,523 (2022: £Nil).
18
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
4,564,581
3,318,784
Corporation tax recoverable
224,722
97,814
Other debtors
239,928
485,219
7,816
100
Prepayments and accrued income
860,210
624,114
5,889,441
4,525,931
7,816
100
Trade debtors are stated after provisions totalling £183,554 (2022: £Nil).
19
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
21
327,535
358,751
Obligations under finance leases
22
1,031,053
573,054
Other borrowings
21
391,667
366,667
391,667
366,667
Trade creditors
5,085,330
3,553,835
Amounts owed to group undertakings
489,070
Corporation tax payable
191,994
Other taxation and social security
231,367
288,277
-
-
Other creditors
1,760,180
29,290
Accruals and deferred income
1,150,537
1,234,277
10,169,663
6,404,151
880,737
366,667
HANDEL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
19
Creditors: amounts falling due within one year
(Continued)
- 35 -
The obligations under finance leases are secured by the assets to which they relate. Included within obligations under finance leases is £105,621 (2022: £Nil) that is also secured via a guarantee issued by the parent company.
Included within other creditors is £1,233,996 (2022: £Nil) in respect of invoice discounting arrangements. These are secured by a fixed and floating charge over the assets and undertaking of the group.
Included within other creditors is £52,084 (2022: £Nil) in respect of loan arrangements. These are unsecured, attract interest at a fixed rate of 1.1% per annum, and are repayable by December 2026.
20
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
21
510,183
519,646
Obligations under finance leases
22
3,592,593
2,466,435
Other borrowings
21
1,529,166
1,833,333
1,529,166
1,833,333
Other creditors
224,870
5,856,812
4,819,414
1,529,166
1,833,333
The obligations under finance leases are secured by the assets to which they relate. Included within obligations under finance leases is £756,205 (2022: £Nil) that is also secured via a guarantee issued by the parent company.
Included within other creditors is £117,870 (2022: £Nil) in respect of loan arrangements. These are unsecured, attract interest at a fixed rate of 1.1% per annum, and are repayable by December 2026.
21
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
837,718
878,397
Other borrowings
1,920,833
2,200,000
1,920,833
2,200,000
2,758,551
3,078,397
1,920,833
2,200,000
Payable within one year
719,202
725,418
391,667
366,667
Payable after one year
2,039,349
2,352,979
1,529,166
1,833,333
HANDEL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
21
Loans and overdrafts
(Continued)
- 36 -
Bank loans attract interest at 2.94% over base rate and 5.50% fixed rate, and are due to be fully repaid by November 2026.
Bank loans are secured by a fixed and floating charge over the assets and undertaking of the group.
Other borrowings are in relation to unsecured loan notes, included within which are amounts totalling £1,833,333 (2022: £2,200,000) that bear a fixed interest rate of 3%. The balance of £87,500 (2022: £Nil) is interest free. All amounts are repayable by 1 November 2028.
22
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
2,051,523
826,946
In two to five years
3,778,919
2,928,210
5,830,442
3,755,156
-
-
Less: future finance charges
(1,206,796)
(715,667)
4,623,646
3,039,489
Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery and leasehold land and buildings. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
23
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
580,814
433,455
Tax losses
(111,973)
(187,444)
468,841
246,011
The company has no deferred tax assets or liabilities.
HANDEL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
23
Deferred taxation
(Continued)
- 37 -
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
246,011
-
Charge to profit or loss
222,830
-
Liability at 31 December 2023
468,841
-
24
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
118,591
20,841
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.
25
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
100
100
100
100
Called-up share capital represents the nominal value of shares that have been issued.
Ordinary shares rank pari passu and are each entitled to one vote in any circumstances; pari passu to dividend payments or any distribution; and pari passu to participate in a distribution; arising from a winding up of the company.
26
Revaluation reserve
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning of the year
135,000
Revaluation surplus arising in the year
7,500
135,000
Other movements
(135,000)
-
-
-
At the end of the year
7,500
135,000
-
Revaluation reserve includes all current and prior period revaluations of fixed assets.
HANDEL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 38 -
27
Profit and loss reserves
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning of the year
87,396
-
1,300,000
-
Profit/(loss) for the year
(1,611,698)
87,396
(93,162)
1,300,000
Other movements
135,000
-
-
-
At the end of the year
(1,389,302)
87,396
1,206,838
1,300,000
Retained earnings include all current period profits and losses.
28
Acquisition of a business
On 12 October 2023 the group acquired 100 percent of the issued capital of Goldcrest Reach Limited.
Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Intangible assets
99,487
-
99,487
Property, plant and equipment
3,253,171
-
3,253,171
Inventories
444,570
-
444,570
Trade and other receivables
2,285,933
-
2,285,933
Cash and cash equivalents
129,458
-
129,458
Borrowings
(67,002)
-
(67,002)
Obligations under finance lease
(2,285,317)
-
(2,285,317)
Trade and other payables
(4,029,713)
-
(4,029,713)
Tax liabilities
(254,588)
-
(254,588)
Deferred tax
(278,688)
-
(278,688)
Total identifiable net assets
(702,689)
-
(702,689)
Goodwill
811,714
Total consideration
109,025
The consideration was satisfied by:
£
Cash
21,525
Issue of loan notes
87,500
109,025
HANDEL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
28
Acquisition of a business
(Continued)
- 39 -
Contribution by the acquired business for the reporting period included in the group statement of comprehensive income since acquisition:
£
Turnover
1,560,310
Loss after tax
(1,155,604)
29
Financial commitments, guarantees and contingent liabilities
Group
Refer to the operating lease commitments note.
There were no other financial commitments, guarantees or contingent liabilities at 31 December 2023 (2022: £Nil).
Company
The company had guaranteed finance lease obligations of a subsidiary company at 31 December 2023 totalling £861,827 (2022: £Nil).
There were no other financial commitments, guarantees or contingent liabilities at 31 December 2023 (2022: £Nil).
30
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
724,649
238,901
-
-
Between two and five years
2,175,130
751,866
-
-
In over five years
771,821
382,293
-
-
3,671,600
1,373,060
-
-
Included within the above is £945,860 with respect to Severnprint Limited, the subsidiary entity which entered administration on 23 February 2024.
31
Events after the reporting date
Group
After the reporting date but prior to the date of approval of these financial statements, tangible fixed assets with a carrying value of £815,639 were either disposed of to third parties, or sold to other group entities, upon which a loss on disposal of £73,399 was realised.
As detailed in the exceptional items note, a subsidiary of the group, Severnprint Limited, entered administration on 23 February 2024.
HANDEL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 40 -
32
Related party transactions
Transactions with related parties
During the year the group entered into the following transactions with related parties:
Sales
Sales
Purchases
Purchases
2023
2022
2023
2022
£
£
£
£
Group
Entities over which the group has control, joint control or significant influence
108,824
251,915
20,549
14,274
The following amounts were outstanding at the reporting end date:
Amounts due to related parties
2023
2022
£
£
Company
Entities over which the company has control, joint control or significant influence
489,070
-
The following amounts were outstanding at the reporting end date:
Amounts due from related parties
2023
2022
Balance
Balance
£
£
Group
Entities over which the group has control, joint control or significant influence
107,879
95,116
Other information
Company
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.
33
Directors' transactions
Included within other debtors are amounts owed from directors of £7,716 (2022: £Nil). These amounts are unsecured, interest free and repayable on demand.
34
Controlling party
The ultimate controlling party is S J Smogur.
HANDEL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 41 -
35
Cash generated from group operations
2023
2022
£
£
(Loss)/profit for the year after tax
(1,722,211)
97,107
Adjustments for:
Share of results of associates and joint ventures
25,376
-
Taxation credited
(72,496)
Finance costs
553,509
91,518
Investment income
(27)
Loss on disposal of tangible fixed assets
443,905
-
Fair value loss on investment properties
175,120
Amortisation and impairment of intangible assets
564,172
85,260
Depreciation and impairment of tangible fixed assets
1,336,501
85,021
Movements in working capital:
Decrease/(increase) in stocks
498,814
(198,557)
Decrease in debtors
856,915
1,376,602
Decrease in creditors
(700,038)
(1,288,098)
Cash generated from operations
1,959,540
248,853
36
Analysis of changes in net debt - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
837,843
(511,615)
326,228
Borrowings excluding overdrafts
(3,078,397)
319,846
(2,758,551)
Obligations under finance leases
(3,039,489)
(1,584,157)
(4,623,646)
(5,280,043)
(1,775,926)
(7,055,969)
2023-12-312023-01-01falsefalseCCH SoftwareCCH Accounts Production 2025.100Mr B S ForseyMr S SmogurMr. S 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