Company Registration No. 10779280 (England and Wales)
Abzorb Group Ltd
Annual report and consolidated
financial statements
For the year ended 31 October 2024
Abzorb Group Ltd
Company Information
Director
S Beeby
Company number
10779280
Registered office
Armytage Road
Brighouse
West Yorkshire
HD6 1QF
Auditor
B M Howarth Ltd
West House
King Cross Road
Halifax
West Yorkshire
HX1 1EB
Abzorb Group Ltd
Contents
Page
Strategic report
1 - 2
Director's report
3 - 4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group statement of financial position
9
Company statement of financial position
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 25
Abzorb Group Ltd
Strategic report
for the year ended 31 October 2024
- 1 -
The director presents the strategic report for the year ended 31 October 2024.
Fair review of the business
I aim to present a balanced and comprehensive review of the development and performance of the business during the year and its position at the year end. My review is consistent with the size and nature of our business and is written in the context of the opportunities and risks the group face.
The main development in the year has been the group acquiring a stake in Revolve Communciations Limited on 29 October 2024.
Results
The profit before tax for the year is £841,439 (2023: £1,151,827). Net assets of the group at the balance sheet date is £6,772,154 (2023: £7,084,987).
Key performance indicators
31 Oct
31 Oct
2024
2023
Turnover
19,800,299
20,304,137
Gross profit
6,012,958
5,997,364
Gross profit margin
30.37%
29.54%
EBITDA
2,357,033
2,485,609
Cash at bank
2,407,323
4,122,027
Management are satisfied with the group trading results for the year.
Principal risks and uncertainties
Supplier Contracts
The Group has strategic relationships with some of the UK’s largest suppliers, including those of the UK’s major network providers for mobile and fixed communications. The Group’s core services rely on these direct relationships. The Group takes great pride in maintaining strong relationships with suppliers on a multi-level basis and coupled with regularly reviewing our contracts feels that this risk is constantly monitored.
Technological Changes
Being in a highly technological industry, in order to mitigate the risk that the Group may fall behind with developments that may occur, the Group puts resource into continually researching market trends, nurturing relationships between existing customers and suppliers and by seeking out new and inventive partners to help develop and offer future dynamic products and services.
Key Personnel
The Group prides itself on being experts in its field, and as such, relies heavily on its personnel at all levels, be it sales, administration or technology. Whilst this reliance could pose a risk, the Group alleviates this by offering strong remuneration packages, training and development and by having a positive workplace culture in order to retain and recruit staff of the highest calibre.
Regulatory Risk
The Group acknowledges that the pricing of its products and services can be affected by regulatory bodies in the UK, EU and the rest of the world. The result of this could have an impact to the Group’s profitability. The Group seeks to mitigate this risk by assessing the likelihood of changes and regularly reviewing the impact that these changes may have.
Credit risk
The Group seeks to manage its credit risk by dealing with well-established customers, performing regular credit checks and having a robust credit checking and onboarding process for any new and potential customers.
Going Concern
I am confident that the Group has adequate resources to continue in operational existence for the foreseeable future and fully expect the Group to meet all its liabilities as and when they fall due. I continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis are disclosed in the accounting policies and notes of the financial statements.
Abzorb Group Ltd
Strategic report (continued)
for the year ended 31 October 2024
- 2 -
Future developments
The Group is forecasting year on year growth on its business-as-usual activities for year ending 31 October 2025. The underlying growth will be through organic sales and diversifying to enlarge our product portfolio, along with continued internal technology developments. I therefore look forward to another successful and profitable year.
S Beeby
Director
28 February 2025
Abzorb Group Ltd
Director's report
for the year ended 31 October 2024
- 3 -
The director presents his annual report and financial statements for the year ended 31 October 2024.
Principal activities
The principal activity of the company continued to be that of a holding company, the principal activity of the group continued to be that of telecommunications services and supply and maintenance of telecommunication systems.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
S Beeby
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £664,506. The director does not recommend payment of a further dividend.
Auditor
The auditor, B M Howarth Ltd, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of director's responsibilities
The director is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is 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. He is 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.
Strategic report
The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group'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.
Abzorb Group Ltd
Director's report (continued)
for the year ended 31 October 2024
- 4 -
Statement of disclosure to auditor
So far as the 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 director has taken all the necessary steps that he ought to have taken as a director in order to make himself aware of all relevant audit information and to establish that the auditor of the company is aware of that information.
On behalf of the board
S Beeby
Director
28 February 2025
Abzorb Group Ltd
Independent auditor's Report
to the members of Abzorb Group Ltd
- 5 -
Opinion
We have audited the financial statements of Abzorb Group Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2024 which comprise the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, 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 the financial statements:
give a true and fair view of the state of the group's and the parent company's affairs as at 31 October 2024 and of the group's profit 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.
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 opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's 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 director 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 director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
Abzorb Group Ltd
Independent auditor's Report (continued)
to the members of Abzorb Group Ltd
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of director
As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the parent company or to cease operations, or has 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.
Based on our understanding of the group and the sectors in which it operates, our audit work considers the risk of material misstatement on the financial statements as a result of non-compliance with laws and regulations, this includes fraud. These laws and regulations include, but are not limited to, those that relate to the form and content of the financial statements, such as the Company accounting policies, the financial reporting framework and the UK Companies Act 2006.
We evaluated management incentives and opportunities for fraudulent manipulation of the financial statements and determined that the principal risks related to management bias in accounting estimates and understatement or overstatement of revenue. Our audit procedures included, but were not limited to:
Agreement of the financial statements disclosures to underlying supporting documentation;
Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud;
Challenging assumptions, accounting estimates and judgements made by Directors;
Identifying and testing journal entries to ensure they are appropriate.
Sample testing of income and expenditure to ensure correct cut-off has been applied.
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion.
There are inherent limitations in audit procedures, the further removed non compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
Abzorb Group Ltd
Independent auditor's Report (continued)
to the members of Abzorb Group Ltd
- 7 -
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.
James Bell
Senior Statutory Auditor
For and on behalf of
B M Howarth Ltd
Chartered Accountants
Statutory Auditor
West House
King Cross Road
Halifax
West Yorkshire
HX1 1EB
28 February 2025
Abzorb Group Ltd
Group Statement of comprehensive income
for the year ended 31 October 2024
- 8 -
2024
2023
Notes
£
£
Turnover
2
19,800,299
20,304,137
Cost of sales
(13,787,341)
(14,306,773)
Gross profit
6,012,958
5,997,364
Administrative expenses
(4,936,659)
(4,803,200)
Operating profit
3
1,076,299
1,194,164
Interest receivable
7
99,921
73,374
Interest payable
8
(82,343)
(115,711)
Loss on disposal of investment
9
(261,823)
-
Profit before taxation
832,054
1,151,827
Tax on profit
11
(488,829)
(513,496)
Profit for the financial year
24
343,225
638,331
Total comprehensive income for the year is all attributable to the owners of the parent company.
Abzorb Group Ltd
Group Statement Of Financial Position
as at 31 October 2024
31 October 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
12
4,125,141
5,082,566
Tangible assets
13
1,572,310
1,439,018
5,697,451
6,521,584
Current assets
Stocks
16
43,838
38,106
Debtors
17
4,934,708
4,225,175
Cash at bank and in hand
2,407,323
4,122,027
7,385,869
8,385,308
Creditors: amounts falling due within one year
18
(5,793,865)
(6,411,882)
Net current assets
1,592,004
1,973,426
Total assets less current liabilities
7,289,455
8,495,010
Creditors: amounts falling due after more than one year
19
(462,763)
(1,375,500)
Provisions for liabilities
Deferred tax liability
20
61,577
34,523
(61,577)
(34,523)
Net assets
6,765,115
7,084,987
Capital and reserves
Called up share capital
21
6,536,842
6,536,842
Capital redemption reserve
22
2,886,809
2,171,152
Profit and loss reserves
24
(2,659,945)
(1,623,007)
Equity attributable to owners of the parent company
6,763,706
7,084,987
Non-controlling interests
1,409
6,765,115
7,084,987
These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.
The financial statements were approved and signed by the director and authorised for issue on 28 February 2025
28 February 2025
S Beeby
Director
Company registration number 10779280 (England and Wales)
Abzorb Group Ltd
Company Statement Of Financial Position
as at 31 October 2024
31 October 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
13
1,241,947
1,200,000
Investments
14
16,041,456
16,129,371
17,283,403
17,329,371
Current assets
Debtors
17
1,719,748
1,564,460
Cash at bank and in hand
773,170
654,684
2,492,918
2,219,144
Creditors: amounts falling due within one year
18
(2,764,061)
(2,097,562)
Net current (liabilities)/assets
(271,143)
121,582
Total assets less current liabilities
17,012,260
17,450,953
Creditors: amounts falling due after more than one year
19
(462,763)
(1,375,500)
Provisions for liabilities
Deferred tax liability
20
4,203
(4,203)
-
Net assets
16,545,294
16,075,453
Capital and reserves
Called up share capital
21
6,536,842
6,536,842
Capital redemption reserve
22
2,886,809
2,171,152
Profit and loss reserves
24
7,121,643
7,367,459
Total equity
16,545,294
16,075,453
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £1,134,348 (2023 - £1,851,256 profit).
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved and signed by the director and authorised for issue on 28 February 2025
28 February 2025
S Beeby
Director
Company registration number 10779280 (England and Wales)
Abzorb Group Ltd
Group Statement Of Changes In Equity
for the year ended 31 October 2024
- 11 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
Balance at 1 November 2022
6,536,842
1,565,752
(836,812)
7,265,782
-
7,265,782
Year ended 31 October 2023:
Profit and total comprehensive income
-
-
638,331
638,331
-
638,331
Dividends
10
-
-
(819,126)
(819,126)
-
(819,126)
Redemption of shares
21
-
605,400
(605,400)
-
-
Balance at 31 October 2023
6,536,842
2,171,152
(1,623,007)
7,084,987
7,084,987
Year ended 31 October 2024:
Profit and total comprehensive income
-
-
343,225
343,225
-
343,225
Dividends
10
-
-
(664,506)
(664,506)
-
(664,506)
Redemption of shares
21
-
715,657
(715,657)
-
-
Other movements
-
-
-
-
1,409
1,409
Balance at 31 October 2024
6,536,842
2,886,809
(2,659,945)
6,763,706
1,409
6,765,115
Abzorb Group Ltd
Company Statement of Changes in Equity
for the year ended 31 October 2024
- 12 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 November 2022
6,536,842
1,565,752
6,940,730
15,043,324
Year ended 31 October 2023:
Profit and total comprehensive income for the year
-
-
1,851,255
1,851,255
Dividends
10
-
-
(819,126)
(819,126)
Redemption of shares
21
-
605,400
(605,400)
Balance at 31 October 2023
6,536,842
2,171,152
7,367,459
16,075,453
Year ended 31 October 2024:
Profit and total comprehensive income
-
-
1,134,347
1,134,347
Dividends
10
-
-
(664,506)
(664,506)
Redemption of shares
21
-
715,657
(715,657)
Balance at 31 October 2024
6,536,842
2,886,809
7,121,643
16,545,294
Abzorb Group Ltd
Group Statement of Cash Flows
for the year ended 31 October 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
338,989
3,401,501
Interest paid
(100,857)
(131,826)
Income taxes paid
(301,119)
(464,215)
Net cash (outflow)/inflow from operating activities
(62,987)
2,805,460
Investing activities
Purchase of business
(246,967)
-
Purchase of tangible fixed assets
(138,019)
(43,039)
(Increase)/decrease in directors loans
13,511
2,034
Interest received
99,921
73,374
Net cash (used in)/generated from investing activities
(271,554)
32,369
Financing activities
Repayment of preference shares
(715,657)
(605,400)
Dividends paid to equity shareholders
(664,506)
(819,126)
Net cash used in financing activities
(1,380,163)
(1,424,526)
Net (decrease)/increase in cash and cash equivalents
(1,714,704)
1,413,303
Cash and cash equivalents at beginning of year
4,122,027
2,708,724
Cash and cash equivalents at end of year
2,407,323
4,122,027
Abzorb Group Ltd
Notes to the financial statements
for the year ended 31 October 2024
- 14 -
1
Accounting policies
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.
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Abzorb Group Ltd 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 October 2024. 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.
Going concern
At the time of approving the financial statements, the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
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. Turnover is recognised on the provision of service obligations where a right to consideration is due.
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.
Abzorb Group Ltd
Notes to the financial statements (continued)
for the year ended 31 October 2024
1
Accounting policies
(continued)
- 15 -
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
No depreciation
Fixtures, fittings & IT Equipment
25% reducing balance
Motor vehicles
25% reducing balance
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 income statement.
Fixed asset investments
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.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
Cash at bank and in hand
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.
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 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.
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Abzorb Group Ltd
Notes to the financial statements (continued)
for the year ended 31 October 2024
1
Accounting policies
(continued)
- 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 leased asset are consumed.
2
Turnover
The group's turnover all derives from it's principal activity within the UK.
2024
2023
£
£
Turnover analysed by class of business
Rendering of services
17,622,470
17,782,610
Kit sales
1,971,162
2,334,300
Management charges received
206,667
187,227
19,800,299
20,304,137
3
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging:
Depreciation of owned tangible fixed assets
55,922
53,542
Amortisation of intangible assets
1,224,812
1,237,903
4
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Group and company
10,000
10,000
Subsidiaries
14,000
14,000
24,000
24,000
Abzorb Group Ltd
Notes to the financial statements (continued)
for the year ended 31 October 2024
- 17 -
5
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Sales and administration
73
66
-
-
Directors
1
1
1
1
Total
74
67
1
1
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
2,710,746
2,546,620
Pension costs
49,161
45,642
2,759,907
2,592,262
6
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss
49,161
45,642
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.
7
Interest receivable
2024
2023
£
£
Interest income
Interest on bank deposits
86,223
58,372
Other interest income
13,698
15,002
Total income
99,921
73,374
8
Interest payable
2024
2023
£
£
Interest paid on deferred consideration
82,343
115,711
Abzorb Group Ltd
Notes to the financial statements (continued)
for the year ended 31 October 2024
- 18 -
9
Amounts written off investments
2024
2023
£
£
Loss on disposal of subsidiary
(261,823)
-
10
Dividends
2024
2023
£
£
Interim paid
664,506
819,126
11
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
568,717
562,162
Adjustments in respect of prior periods
(97,216)
(57,731)
Total current tax
471,501
504,431
Deferred tax
Origination and reversal of timing differences
17,328
9,065
Total tax charge
488,829
513,496
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
832,054
1,151,827
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.50%)
208,014
259,161
Tax effect of expenses that are not deductible in determining taxable profit
6,251
24,358
Adjustments in respect of prior years
(97,216)
(57,731)
Effect of change in corporation tax rate
-
9,180
Goodwill amortisation
306,203
278,528
Loss on disposal of subsidiary
65,577
Taxation charge
488,829
513,496
Abzorb Group Ltd
Notes to the financial statements (continued)
for the year ended 31 October 2024
- 19 -
12
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 November 2023
12,379,029
Additions
529,210
Disposals
(392,735)
At 31 October 2024
12,515,504
Amortisation and impairment
At 1 November 2023
7,296,463
Amortisation charged for the year
1,224,812
Disposals
(130,912)
At 31 October 2024
8,390,363
Carrying amount
At 31 October 2024
4,125,141
At 31 October 2023
5,082,566
The company had no intangible fixed assets at 31 October 2024 or 31 October 2023.
13
Tangible fixed assets
Group
Freehold land and buildings
Fixtures, fittings & IT equipment
Motor vehicles
Total
£
£
£
£
Cost or valuation
At 1 November 2023
1,200,000
440,016
58,385
1,698,401
Additions
34,219
82,098
72,897
189,214
At 31 October 2024
1,234,219
522,114
131,282
1,887,615
Depreciation and impairment
At 1 November 2023
235,664
23,719
259,383
Depreciation charged in the year
41,758
14,164
55,922
At 31 October 2024
277,422
37,883
315,305
Carrying amount
At 31 October 2024
1,234,219
244,692
93,399
1,572,310
At 31 October 2023
1,200,000
204,352
34,666
1,439,018
Abzorb Group Ltd
Notes to the financial statements (continued)
for the year ended 31 October 2024
13
Tangible fixed assets
(continued)
- 20 -
Company
Freehold land and buildings
Fixtures, fittings & IT Equipment
Total
£
£
£
Cost or valuation
At 1 November 2023
1,200,000
1,200,000
Additions
34,219
7,728
41,947
At 31 October 2024
1,234,219
7,728
1,241,947
Depreciation and impairment
At 1 November 2023 and 31 October 2024
Carrying amount
At 31 October 2024
1,234,219
7,728
1,241,947
At 31 October 2023
1,200,000
1,200,000
The fair value of the freehold land and buildings on it becoming a group asset was determined by the director at a market value of £1,200,000. In the opinion of the director the value of the property remains valid as at 31 October 2024.
14
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
15
16,041,456
16,129,371
Abzorb Group Ltd
Notes to the financial statements (continued)
for the year ended 31 October 2024
- 21 -
15
Subsidiaries
The company holds the ordinary share capital of the following companies incorporated in UK:
Name of undertaking
Address
Class of
shares held
% Held
Abzorb Ltd
1
Ordinary
100
Abzorb Services Ltd
1
Ordinary
100
Abzorb Solutions Ltd
1
Ordinary
100
Abzorb Systems Ltd
1
Ordinary
100
Revolve Communications Ltd
2
Ordinary
85
Registered office addresses (all UK unless otherwise indicated):
1
Armytage Road, Brighouse, West Yorkshire, HD6 1QF
2
Flux Unit 11 Waters Edge, Dundee, DD1 3HY
During the year the group acquired a stake in Revolve Communciations Limited on 29 October 2024 for £537,200.
During the year, an investment in Abzorb Data Ltd was written off. This company was dissolved on 9 July 2024.
16
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
43,838
38,106
17
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,354,457
1,587,492
262,667
497,511
Other debtors
2,646,502
2,139,661
1,457,081
1,066,949
Prepayments and accrued income
933,749
498,022
4,934,708
4,225,175
1,719,748
1,564,460
Abzorb Group Ltd
Notes to the financial statements (continued)
for the year ended 31 October 2024
- 22 -
18
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under hire purchase
45,362
Preference shares
21
833,586
636,506
833,586
636,506
Trade creditors
3,414,862
4,488,703
8,079
Amounts owed to group undertakings
1,838,048
1,384,115
Corporation tax payable
469,101
264,942
52,285
35,666
Other taxation and social security
220,710
387,369
8,667
10,101
Other creditors
81,886
18,514
Accruals and deferred income
728,358
615,848
23,396
31,174
5,793,865
6,411,882
2,764,061
2,097,562
Obligations under hire purchase are secured against the assets to which they relate.
19
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Preference shares
21
462,763
1,375,500
462,763
1,375,500
20
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
61,577
34,523
Liabilities
Liabilities
2024
2023
Company
£
£
Accelerated capital allowances
4,203
-
Abzorb Group Ltd
Notes to the financial statements (continued)
for the year ended 31 October 2024
20
Deferred taxation
(continued)
- 23 -
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 November 2023
34,523
-
Charge to profit or loss
17,327
4,203
Other
9,727
-
Liability at 31 October 2024
61,577
4,203
21
Share capital
Group and company
2024
2023
Ordinary share capital
£
£
Issued and fully paid
6,210,000 Ordinary shares of £1 each
6,210,000
6,210,000
326,842 A Ordinary shares of £1 each
326,842
326,842
6,536,842
6,536,842
Preference share capital
Issued and fully paid
1,296,349 (2023: 2,012,006) Preference shares of £1 each
1,296,349
2,012,006
Preference shares classified as liabilities
1,296,349
2,012,006
22
Capital redemption reserve
Group
Company
2024
2023
2024
2023
£
£
£
£
At the beginning of the year
2,171,152
1,565,752
2,171,152
1,565,752
Transfers
715,657
605,400
715,657
605,400
At the end of the year
2,886,809
2,171,152
2,886,809
2,171,152
Abzorb Group Ltd
Notes to the financial statements (continued)
for the year ended 31 October 2024
- 24 -
23
Operating lease commitments
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
2024
2023
2024
2023
£
£
£
£
Within one year
13,461
23,044
-
-
Between two and five years
1,560
20,169
-
-
15,021
43,213
-
-
24
Profit and loss reserves
Group
Company
2024
2023
2024
2023
£
£
£
£
At the beginning of the year
(1,623,007)
(836,812)
7,367,459
6,940,730
Profit for the year
343,225
638,331
1,134,347
1,851,255
Dividends
(664,506)
(819,126)
(664,506)
(819,126)
Share redemption or reduction
(715,657)
(605,400)
(715,657)
(605,400)
At the end of the year
(2,659,945)
(1,623,007)
7,121,643
7,367,459
25
Related party transactions
During the year the group made the following arms length transactions with Abzorb U Ltd a company which S Beeby is a director and shareholder in its holding company:
Sales of £883,540 (2023: £820,998) and purchase of goods and services £5,033,666 (2023: £4,432,651).
At 31 October 2024, the amount due to Abzorb U Ltd from the group was £1,143,820 (2023: £1,016,830).
At 31 October 2024 Hall and Rhodes Holdings Ltd owed Abzorb Group Ltd £808,120 (2023 : £404,477).
S Beeby is a director of Hall and Rhodes Holdings Ltd.
26
Directors' transactions
Advances or credits have been granted by the group to its directors as follows:
Description
% Rate
Opening balance
Amounts advanced
Interest charged
Amounts repaid
Closing balance
£
£
£
£
£
S Beeby -
2.25
662,472
637,297
13,698
(664,506)
648,961
662,472
637,297
13,698
(664,506)
648,961
Abzorb Group Ltd
Notes to the financial statements (continued)
for the year ended 31 October 2024
- 25 -
27
Controlling party
S Beeby, the director of the company, controls the company as a result of his direct holding of issued ordinary shares.
28
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
343,225
638,331
Adjustments for:
Taxation charged
488,829
513,496
Finance costs
82,343
115,711
Investment income
(99,921)
(73,374)
Amortisation and impairment of intangible assets
1,224,812
1,237,903
Depreciation and impairment of tangible fixed assets
55,922
53,542
Loss on disposal of subsidiary
261,823
-
Movements in working capital:
(Increase)/decrease in stocks
(5,732)
42,798
Increase in debtors
(588,201)
(1,281,646)
(Decrease)/increase in creditors
(1,424,111)
2,154,740
Cash generated from operations
338,989
3,401,501
29
Analysis of changes in net funds - group
1 November 2023
Cash flows
Acquisitions
31 October 2024
£
£
£
£
Cash at bank and in hand
4,122,027
(1,714,704)
-
2,407,323
Borrowings excluding overdrafts
(2,012,006)
715,657
-
(1,296,349)
Obligations under finance leases
-
-
(45,362)
(45,362)
2,110,021
(999,047)
(45,362)
1,065,612
30
Company information
Abzorb Group Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Armytage Road, Brighouse, West Yorkshire, HD6 1QF.
The group consists of Abzorb Group Ltd and all of its subsidiaries.
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