Company registration number 11769890 (England and Wales)
CINOS GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
CINOS GROUP LIMITED
COMPANY INFORMATION
Directors
Mr K Deady
Mr S J Franklin
Mrs J Guest
Mr L Sharp
Mr D Worman
Company number
11769890
Registered office
Unit 4.9
Hitech
Frimley 4 Business Park
Frimley, Camberley
GU16 7SG
Auditor
Fiander Tovell Limited
Stag Gates House
63/64 The Avenue
Southampton
Hampshire
SO17 1XS
CINOS GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9 - 10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 33
CINOS GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 1 -

The directors present the strategic report and the audited financial statements of the group for the year ended 30 April 2024.

 

Cinos Group is an Audio Visual & Unified Communications Specialist providing design, supply, installation and managed services to public sector and commercial customers.

Business review

The financial statements summarise the group's performance. The business is steadily recovering from the challenges posed in prior years by COVID-19, the supply chain chip shortage, and Brexit.

As with many other industries, the primary challenge during this reporting period has been the sharp rise in inflation, which has significantly impacted various costs across the group, including the cost of goods and operating expenses. To address this, we have worked proactively with our supply chain to anticipate and forecast price increases, ensuring timely communication of these adjustments to our customers.

Another challenge during the reporting period has been the effect of political uncertainty. A significant proportion of our revenue comes from public sector organisations, and we observed a marked downturn in public sector spending, most notably between December 2023 and the end of the reporting period in April, with this trend continuing into our new financial year.

Principal risks and uncertainties

COVID-19

The impact of COVID-19 on the business during the reporting period was minimal, primarily arising from staff contracting the virus, which affected their ability to work on customer sites or required them to take leave due to illness. This impact has diminished further in the current financial year. Where feasible, we continue to offer our employees flexible working options.

Brexit

Whilst Brexit has provided some challenges we have mitigated against many of these by expanding our footprint in Paris, France.

Global Supply Chain Issues

Although supply chain disruptions occasionally affect component availability, the overall impact has been marginal.

Rise of Inflation

During the reporting period, a significant increase in inflation had a profound impact on our operational costs, affecting both the cost of goods and services. To navigate these challenges, we initially absorbed the majority of the cost increases to shield our customers. Recognising the sustained nature of inflation, we engaged proactively with our supply chain partners to adapt to emerging price trends. This strategy allowed us to maintain transparency with our customers, ensuring they were well-informed and able to make decisions in light of changing economic conditions.

The rise in inflation has impacted our profitability. To safeguard group performance, we have implemented measures including minor headcount adjustments, streamlining business systems, and improving operational efficiencies. These changes are expected to deliver results in the reporting period ending April 2025.

European Union Business

Our French operation, Cinos Europe, experienced a sharp decline in business during the reporting period, which we attribute to reduced business confidence across the continent. This resulted in a significant drop in sales for the year. Consequently, we have made operational and headcount reductions, which will take time to impact the bottom line. We anticipate Cinos Europe will return to profitability in FY26.

Development and performance

Due to the rapid adoption of Cinos cloud, the cloud has been expanded by approx. 25% to cover additional headroom and to welcome new customers to the service.

CINOS GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -
Future plans and strategy

With the amalgamation of Cinos Communication Services Limited and Cinos Limited, the group can now provide a more expansive portfolio of core solutions to our customers. We have successfully further strengthened our core capabilities of Audio-Visual, unified communications, and connectivity solutions with our tailor-made Cinos cloud infrastructure. By investing in our cloud infrastructure, all the core solutions we provide are delivered by our bespoke cloud solution, which provides a more robust solution set for our customers.

The group also aims to continue to build on multi-year contract wins, which underpin our overall strategic plan to increase annuity revenue via our managed services.

Key performance indicators

The directors use revenue and adjusted EBITDA as KPIs in monitoring progress and management of the group.

Revenue for the reported year was £27.08m compared to £26.84m for the previous financial year. This represents a 0.88% increase on the previous reporting period.

Adjusted EBITDA for the year, calculated by taking profit before tax and adding back interest expense, depreciation, amortisation and items which the group considers exceptional items were £0.84m (2023 - £3.02m).

On behalf of the board

Mr K Deady
Director
28 April 2025
CINOS GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 3 -

The directors present their annual report and financial statements for the year ended 30 April 2024.

Principal activities

The principal activity of the company continued to be that of the provision of management services in respect of its subsidiary.

 

The principal activities of the group continued to be the provision of visual systems integration.

Results and dividends

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

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

Directors

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

Mr K Deady
Mr S J Franklin
Mrs J Guest
Mr L Sharp
Mr D Worman
Financial instruments
Liquidity risk

The group manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the group has sufficient liquid resources to meet the operating needs of the business.

Foreign currency risk

The group’s principal foreign currency exposures arise from trading with overseas companies. Group policy permits but does not demand that these exposures may be hedged in order to fix the cost in sterling.

Credit risk

Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board.

 

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

Auditor

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

CINOS GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 4 -
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:

 

 

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.

Disclosure in strategic report

The group 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. It has done so in respect of future developments.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr K Deady
Director
28 April 2025
CINOS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CINOS GROUP LIMITED
- 5 -
Opinion

We have audited the financial statements of Cinos Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2024 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 the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the 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 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.

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

CINOS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CINOS GROUP LIMITED
- 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 directors' report.

 

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

CINOS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CINOS GROUP LIMITED
- 7 -
Audit response to risks identified

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

Use of our report

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

Adam Buse FCA
Senior Statutory Auditor
For and on behalf of Fiander Tovell Limited
28 April 2025
Chartered Accountants
Statutory Auditor
Stag Gates House
63/64 The Avenue
Southampton
Hampshire
SO17 1XS
CINOS GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
27,074,962
26,840,070
Cost of sales
(15,693,172)
(15,320,113)
Gross profit
11,381,790
11,519,957
Administrative expenses
(13,169,747)
(11,209,739)
Other operating income
6,689
1,500
Operating (loss)/profit
4
(1,781,268)
311,718
Interest receivable and similar income
7
11,738
1,904
Interest payable and similar expenses
8
(165,009)
(133,989)
(Loss)/profit before taxation
(1,934,539)
179,633
Tax on (loss)/profit
9
(42,430)
(219,415)
Loss for the financial year
(1,976,969)
(39,782)
Loss for the financial year is attributable to:
- Owners of the parent company
(1,941,200)
(53,574)
- Non-controlling interests
(35,769)
13,792
(1,976,969)
(39,782)
CINOS GROUP LIMITED
GROUP BALANCE SHEET
AS AT
30 APRIL 2024
30 April 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
10
7,766,225
9,260,404
Other intangible assets
10
2,549,910
3,077,826
Total intangible assets
10,316,135
12,338,230
Tangible assets
11
771,784
900,552
11,087,919
13,238,782
Current assets
Stocks
14
2,044,116
1,719,449
Debtors
15
6,494,111
8,969,946
Cash at bank and in hand
2,231,430
2,414,059
10,769,657
13,103,454
Creditors: amounts falling due within one year
16
(9,226,319)
(10,086,756)
Net current assets
1,543,338
3,016,698
Total assets less current liabilities
12,631,257
16,255,480
Creditors: amounts falling due after more than one year
17
(11,662,412)
(13,145,704)
Provisions for liabilities
Provisions
20
2,898
-
0
Deferred tax liability
21
662,087
828,947
(664,985)
(828,947)
Net assets
303,860
2,280,829
Capital and reserves
Called up share capital
24
10,754
10,754
Share premium account
5,999,996
5,999,996
Share based payment reserve
842
842
Profit and loss reserves
(5,697,568)
(3,756,368)
Equity attributable to owners of the parent company
314,024
2,255,224
Non-controlling interests
(10,164)
25,605
303,860
2,280,829
CINOS GROUP LIMITED
GROUP BALANCE SHEET (CONTINUED)
AS AT
30 APRIL 2024
30 April 2024
- 10 -
The financial statements were approved by the board of directors and authorised for issue on 28 April 2025 and are signed on its behalf by:
28 April 2025
Mr K Deady
Director
Company registration number 11769890 (England and Wales)
CINOS GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 30 APRIL 2024
30 April 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
12
20,775,376
20,775,376
Current assets
Debtors
15
21,707
30,005
Cash at bank and in hand
843
1,209
22,550
31,214
Creditors: amounts falling due within one year
16
(3,816,639)
(3,019,626)
Net current liabilities
(3,794,089)
(2,988,412)
Total assets less current liabilities
16,981,287
17,786,964
Creditors: amounts falling due after more than one year
17
(10,965,892)
(11,754,085)
Net assets
6,015,395
6,032,879
Capital and reserves
Called up share capital
24
10,754
10,754
Share premium account
5,999,996
5,999,996
Share based payment reserve
842
842
Profit and loss reserves
3,803
21,287
Total equity
6,015,395
6,032,879

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 period was £17,484 (2023 - £35,119 loss).

The financial statements were approved by the board of directors and authorised for issue on 28 April 2025 and are signed on its behalf by:
28 April 2025
Mr K Deady
Director
Company registration number 11769890 (England and Wales)
CINOS GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 12 -
Share capital
Share premium account
Share options
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
£
£
£
£
£
£
£
Balance at 1 May 2022
10,754
5,999,996
-
(3,702,794)
2,307,956
-
2,307,956
Year ended 30 April 2023:
Loss and total comprehensive income
-
-
-
(53,574)
(53,574)
13,792
(39,782)
Acquisition of subsidiary
-
-
-
-
-
11,813
11,813
Non-cash premium on A shares issued
-
-
842
-
842
-
842
Balance at 30 April 2023
10,754
5,999,996
842
(3,756,368)
2,255,224
25,605
2,280,829
Year ended 30 April 2024:
Loss and total comprehensive income
-
-
-
(1,941,200)
(1,941,200)
(35,769)
(1,976,969)
Balance at 30 April 2024
10,754
5,999,996
842
(5,697,568)
314,024
(10,164)
303,860
CINOS GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 13 -
Share capital
Share premium account
Share options
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 May 2022
10,754
5,999,996
-
56,406
6,067,156
Year ended 30 April 2023:
Loss and total comprehensive income for the year
-
-
-
(35,119)
(35,119)
Non-cash premium on A shares issued
-
-
842
-
842
Balance at 30 April 2023
10,754
5,999,996
842
21,287
6,032,879
Year ended 30 April 2024:
Profit and total comprehensive income
-
-
-
(17,484)
(17,484)
Balance at 30 April 2024
10,754
5,999,996
842
3,803
6,015,395
CINOS GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
30
964,730
2,285,976
Interest paid
(165,009)
(133,989)
Income taxes paid
(336,472)
(244,938)
Net cash inflow from operating activities
463,249
1,907,049
Investing activities
Purchase of subsidiaries
-
(8,880)
Purchase of tangible fixed assets
(172,438)
(109,763)
Payments for other investments and loans
(68,000)
(24,358)
Interest received
11,738
1,904
Net cash used in investing activities
(228,700)
(141,097)
Financing activities
Proceeds of new bank loans
285,000
295,000
Repayment of bank loans
(463,762)
(218,998)
Payment of finance leases obligations
(237,749)
(211,809)
Net cash used in financing activities
(416,511)
(135,807)
Net (decrease)/increase in cash and cash equivalents
(181,962)
1,630,145
Cash and cash equivalents at beginning of year
2,413,307
783,162
Cash and cash equivalents at end of year
2,231,345
2,413,307
Relating to:
Cash at bank and in hand
2,231,430
2,414,059
Bank overdrafts included in creditors payable within one year
(85)
(752)
CINOS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 15 -
1
Accounting policies
Company information

Cinos Group Limited (“the company”) is a private company, limited by shares, domiciled and incorporated in England and Wales. The registered office is Unit 4.9, Hitech, Frimley 4 Business Park, Frimley, Camberley, GU16 7SG.

 

The group consists of Cinos Group Limited and all of its subsidiaries. The Group's principal activities are stated in the Directors' Report.

1.1
Accounting convention

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

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

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

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:

 

1.2
Business combinations

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

 

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

CINOS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 16 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Cinos Group Limited together with all entities controlled by the parent company (its subsidiaries).

 

All financial statements are made up to 30 April 2024, except for Cinos AV Ireland Limited which is a 31 December 2023 year end (but this company is dormant). Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

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

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

1.4
Going concern

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.

 

The directors believe that the group's ability to continue as a going concern is dependent on the performance of it's main trading subsidiary, Cinos Limited. That company was profitable for 2024 (~£562k after corporation tax) and expects to be so again for the year ended 30 April 2025. In addition, the order book is strong and the forecasts for 2026 also indicate that profitability is expected.

 

The group results include the amortisation on goodwill and this is the primary reason for the loss reported for 2024. The only liabilities from the holding company are loan notes owed to the directors and they have again agreed to waive interest on these for 2024 which will further protect the group.

 

Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

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

 

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

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

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

CINOS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 17 -
1.6
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.

 

Negative goodwill, also known as a bargain purchase gain, occurs when the fair value of net assets acquired in a business combination exceeds the cost of acquisition. The accounting policy for handling negative goodwill is to release the amount as the asset to which its relates are sold.

 

The recognition of negative goodwill is contingent upon a thorough assessment of fair values, and any changes in estimates are accounted for prospectively.

1.7
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:

Stellaris system
10 years straight line
1.8
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:

Leasehold improvements
20% straight line
Plant and equipment
20% straight line
Fixtures and fittings
20% straight line
Computers
20% straight line

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

1.9
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.

CINOS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 18 -

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

1.10
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.

1.11
Stocks

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

 

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

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

1.12
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.

1.13
Financial instruments

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

 

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

 

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

Basic financial assets

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

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.

CINOS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 19 -
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.

1.14
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.

1.15
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.

1.16
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.

CINOS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 20 -
1.17
Employee benefits

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

 

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

 

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

1.18
Retirement benefits

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

1.19
Share-based payments

Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using the Black Scholes model. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.

 

The expense in relation to options over the parent company’s shares granted to employees of a subsidiary is recognised by the company as a capital contribution, and presented as an increase in the company’s investment in that subsidiary.

When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.

 

Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.

1.20
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.

CINOS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 21 -
1.21
Government grants

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

 

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

1.22
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.

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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Position on contracts with customers

Management review the situation on the ongoing contracts regularly so that the adjustments for accrued or deferred revenue and work in progress or accrued costs are as accurate as possible. Due to the nature of the contracts this does often require management to make a judgement about the expected final result of the contract, which can be months away from completion.

 

The key judgements made in this area are around the expected final margin to be achieved on the contract, an expectation of any extra (or reductions in) revenue that may arise before the finalisation of the project, and an estimate of the level of completion at a given date.

 

The accounts include accrued income of £1.7m (2023 - £1.22m), deferred income of £2.4m (2023 - £1.90m), work in progress £0.65m (2023 - £0.52m) and accrued costs of £nil (2023 - £nil) in respect of these projects.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Visual systems integration
27,074,962
26,818,620
Software development
-
21,450
27,074,962
26,840,070
CINOS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
3
Turnover and other revenue
(Continued)
- 22 -
2024
2023
£
£
Turnover analysed by geographical market
UK
26,159,067
26,565,246
Europe
915,895
274,824
27,074,962
26,840,070
2024
2023
£
£
Other revenue
Interest income
11,738
1,904
Grants received
-
1,500
4
Operating (loss)/profit
2024
2023
£
£
Operating (loss)/profit for the year is stated after charging/(crediting):
Exchange losses
18,188
22,189
Government grants
-
(1,500)
Fees payable to the group's auditor for the audit of the group's financial statements
6,000
6,000
Depreciation of owned tangible fixed assets
145,139
223,417
Depreciation of tangible fixed assets held under finance leases
268,708
87,647
Amortisation of intangible assets
2,022,095
1,994,007
Release of negative goodwill
-
(157,561)
Share-based payments
-
842
Operating lease charges
497,901
380,200
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
Directors
5
5
5
5
Management and other staff
128
113
-
-
Total
133
118
5
5
CINOS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
5
Employees
(Continued)
- 23 -

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
7,315,117
6,311,016
-
0
-
0
Social security costs
903,266
717,604
-
-
Pension costs
131,049
114,645
-
0
-
0
8,349,432
7,143,265
-
0
-
0
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
328,394
247,346
Company pension contributions to defined contribution schemes
5,330
3,580
333,724
250,926
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
97,500
85,013
Company pension contributions to defined contribution schemes
1,321
1,321

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 5 (2023: 5).

7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
11,738
1,904
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
109,366
117,386
Interest on finance leases and hire purchase contracts
7,973
4,980
Other interest
47,670
11,623
Total finance costs
165,009
133,989
CINOS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 24 -
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
204,194
390,210
Adjustments in respect of prior periods
35,614
517
Total UK current tax
239,808
390,727
Foreign current tax on profits for the current period
(30,518)
-
0
Total current tax
209,290
390,727
Deferred tax
Origination and reversal of timing differences
(166,860)
(171,312)
Total tax charge
42,430
219,415

The actual 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:

2024
2023
£
£
(Loss)/profit before taxation
(1,934,539)
179,633
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.49%)
(483,635)
35,010
Tax effect of expenses that are not deductible in determining taxable profit
8,793
5,924
Unutilised tax losses carried forward
104,859
-
0
Change in unrecognised deferred tax assets
299
12,949
Adjustments in respect of prior years
35,614
517
Effect of change in corporation tax rate
(71)
(10,214)
Permanent capital allowances in excess of depreciation
-
0
(3,741)
Amortisation on assets not qualifying for tax allowances
505,524
388,632
Other permanent differences
3,026
(44,767)
Effect of overseas tax rates
-
0
(25,906)
Deferred tax adjustments in respect of prior years
-
0
(7,013)
Release of Stellaris deferred tax
(131,979)
(131,976)
Taxation charge
42,430
219,415
CINOS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 25 -
10
Intangible fixed assets
Group
Goodwill
Negative goodwill
Stellaris system
Total
£
£
£
£
Cost
At 1 May 2023 and 30 April 2024
14,941,785
(157,561)
5,279,167
20,063,391
Amortisation and impairment
At 1 May 2023
5,681,381
(157,561)
2,201,341
7,725,161
Amortisation charged for the year
1,494,179
-
0
527,916
2,022,095
At 30 April 2024
7,175,560
(157,561)
2,729,257
9,747,256
Carrying amount
At 30 April 2024
7,766,225
-
0
2,549,910
10,316,135
At 30 April 2023
9,260,404
-
0
3,077,826
12,338,230
The company had no intangible fixed assets at 30 April 2024 or 30 April 2023.

More information on impairment movements in the year is given in note .

11
Tangible fixed assets
Group
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
£
£
Cost
At 1 May 2023
177,511
1,519,762
5,289
4,154
1,706,716
Additions
2,916
274,020
8,143
-
0
285,079
At 30 April 2024
180,427
1,793,782
13,432
4,154
1,991,795
Depreciation and impairment
At 1 May 2023
120,753
683,073
35
2,303
806,164
Depreciation charged in the year
34,671
375,278
3,044
854
413,847
At 30 April 2024
155,424
1,058,351
3,079
3,157
1,220,011
Carrying amount
At 30 April 2024
25,003
735,431
10,353
997
771,784
At 30 April 2023
56,758
836,689
5,254
1,851
900,552
The company had no tangible fixed assets at 30 April 2024 or 30 April 2023.

The net carrying value of tangible fixed assets includes £605,042 (2023 - £750,678) in respect of assets held under finance leases or hire purchase contracts.

CINOS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 26 -
12
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
20,775,376
20,775,376
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 May 2023 and 30 April 2024
20,775,376
Carrying amount
At 30 April 2024
20,775,376
At 30 April 2023
20,775,376
13
Subsidiaries

Details of the company's subsidiaries at 30 April 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Cinos Limited
UK
Ordinary
100.00
Cinos Communication Services Limited
UK
Ordinary
100.00
Cinos Corporate Trustee Limited
UK
Ordinary
100.00
Cinos AV Ireland Limited
Republic of Ireland
Ordinary
100.00
Refero Limited
UK
Ordinary
100.00
Cinos Europe SAS
Europe
Ordinary
93.00

All subsidiaries have co-terminus year ends, 30 April 2024 except for Cinos AV Ireland Limited which is a 31 December 2023 year end (but this company is dormant).

 

All subsidiaries have the same registered office address as Cinos Group Limited with the exception of Cinos AV Ireland Limited and Cinos Europe SAS. Cinos AV Ireland Limited's registered office is Unit 3D North Point House, North Point Business Park, New Mallow Road, Cork. Cinos Europe SAS's registered address is 17 Rue Bernard Palissy, Zone "Les Forboeux", 95280 Jouy Le Moutier.

 

Cinos Communication Services Limited (CCS) has claimed exemption from audit under section 479A of the Companies Act 2006 and is therefore exempt from the requirements of the Companies Act 2006 relating to the audit of its individual accounts.

CINOS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 27 -
14
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
1,392,591
1,165,581
-
-
Work in progress
651,525
524,446
-
-
Finished goods and goods for resale
-
0
29,422
-
0
-
0
2,044,116
1,719,449
-
-
15
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,164,939
5,842,623
-
0
-
0
Corporation tax recoverable
58,875
50,655
8,480
260
Amounts owed by undertakings in which the company has a participating interest
978,967
1,002,826
-
-
Other debtors
361,413
122,363
7,654
26,728
Prepayments and accrued income
1,929,917
1,951,479
5,573
3,017
6,494,111
8,969,946
21,707
30,005
16
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
18
447,745
219,113
85
85
Obligations under finance leases
19
372,480
272,180
-
0
-
0
Trade creditors
2,969,071
3,916,031
3,275
4,510
Amounts owed to group undertakings
-
0
-
0
3,490,828
2,913,804
Corporation tax payable
271,248
390,210
-
0
-
0
Other taxation and social security
1,271,914
1,682,045
-
(974)
Deferred income
22
3,053,650
2,883,050
-
0
-
0
Other creditors
729,113
540,049
229,602
10,002
Accruals and deferred income
111,098
184,078
92,849
92,199
9,226,319
10,086,756
3,816,639
3,019,626
CINOS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 28 -
17
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
18
411,070
819,131
-
0
-
0
Obligations under finance leases
19
118,621
344,029
-
0
-
0
Deferred income
22
166,829
228,459
-
0
-
0
Other creditors
10,965,892
11,754,085
10,965,892
11,754,085
11,662,412
13,145,704
10,965,892
11,754,085

Other creditors is primarily made up of loan notes which are unsecured and scheduled to be repaid in full by 31 March 2026. The loan notes accrue interest at 2.5% above the bank of England base rate.

 

The loan note holders have agreed that the interest that would have accrued for the year ended 30 April 2024 will not be charged.

 

18
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
858,730
1,037,492
-
0
-
0
Bank overdrafts
85
752
85
85
858,815
1,038,244
85
85
Payable within one year
447,745
219,113
85
85
Payable after one year
411,070
819,131
-
0
-
0

The bank overdraft is secured by a fixed and floating charge over the assets of the company.

 

The bank loans included two unsecured loans. The term of the loans were for five and six years, repayable by instalments. The loan interests payable were 11% and 12.45% per annum.

 

During the year a further loan was taken out, repayable by instalments over 12 months, with an interest rate of 2.45% every 30 days.

CINOS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 29 -
19
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
372,480
272,180
-
0
-
0
In two to five years
118,621
344,029
-
0
-
0
491,101
616,209
-
-

The finance leases are secured over the assets to which they relate.

 

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. 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.

20
Provisions for liabilities
Group
Company
2024
2023
2024
2023
£
£
£
£
Other provisions
2,898
-
-
-
Movements on provisions:
Other provisions
Group
£
Additional provisions in the year
2,898

Other provisions represent unrealised exchange losses arising from Cinos Europe SAS.

21
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
27,877
65,883
For Stellaris
634,210
763,064
662,087
828,947
The company has no deferred tax assets or liabilities.
CINOS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
21
Deferred taxation
(Continued)
- 30 -
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 May 2023
828,947
-
Credit to profit or loss
(166,860)
-
Liability at 30 April 2024
662,087
-
22
Deferred income
Group
Company
2024
2023
2024
2023
£
£
£
£
Other deferred income
3,220,479
3,111,509
-
-

Deferred income is included in the financial statements as follows:

Current liabilities
3,053,650
2,883,050
-
0
-
0
Non-current liabilities
166,829
228,459
-
0
-
0
3,220,479
3,111,509
-
-
23
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
131,049
114,645

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.

 

At the year end, there was £28,011 payable to the pension scheme (2023 - £48,705).

24
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
2,688
2,688
2,688
2,688
Ordinary C shares of £1 each
4,404
4,404
4,404
4,404
Ordinary D shares of £1 each
3,662
3,662
3,662
3,662
10,754
10,754
10,754
10,754
CINOS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
24
Share capital
(Continued)
- 31 -

All classes of shares rank pari passu.

25
Share-based payment transactions

As part of its long term incentive policy Cinos Group Limited initiated a number of share option schemes for key employees of Cinos Limited. The share options are subject to the service and performance conditions of the scheme. The fair value of the share options granted is recognised as a staff cost with a corresponding adjustment to equity over the period during which the employees become unconditionally entitled to the options (vesting period).

 

The expense is based upon the company's estimates of fair value of the acquired equity instruments using a Black-Scholes option pricing model in accordance with the conditions of granting.

Group
Number of share options
Weighted average exercise price
2024
2023
2024
2023
Number
Number
£
£
Outstanding at 1 May 2023 and 30 April 2024
3,662
3,662
2.25
2.25
Exercisable at 30 April 2024
-
-
-
-

 

 

26
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
2024
2023
2024
2023
£
£
£
£
Within one year
475,321
412,688
-
-
Between two and five years
1,073,660
661,955
-
-
1,548,981
1,074,643
-
-
CINOS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 32 -
27
Directors' transactions

Interest free loans have been granted by the group to its directors as follows:

Description
% Rate
Opening balance
Amounts advanced
Closing balance
£
£
£
Mrs J Guest - Interest free loan account
-
19,357
50,000
69,357
Mr L Sharp - Interest free loan account
-
5,800
18,000
23,800
25,157
68,000
93,157
28
Related party transactions

During the year, the group traded with Cinos Inc. and Cinos PTE, which are both related parties due to common directors, who are considered to be key management personnel of the reporting group.

 

Cinos Inc.

The group made sales of £224,731 (including other recharges) (2023 - £93,030) to Cinos Inc. At the balance sheet date there was £33,938 (2023 - £47,395) due in respect to these transactions.

 

The group made negative purchases of £15,881 (including salary recharges) (2023 - £169,771) from Cinos Inc due to two credit notes raised in the year. At the balance sheet date the company was owed £189,215 (2023 - £11,129) in respect to these transactions.

 

Cinos PTE

The group made sales of £7,004 (including other recharges) (2023 - £28,051) to Cinos PTE. At the balance sheet date there was £180 (2023 - £23,682) due in respect to these transactions.

 

The group made purchases of £13,935 (including salary recharges) (2023 - £28,098) from Cinos PTE. At the balance sheet date there was £nil (2023 - £nil) owed in respect to these transactions.

 

Intercompany Loans
At the year end, the group had made loans to Cinos Inc. and Cinos PTE, both of whom are relates parties due to common directors who are considered to be key management personnel of the reporting entities.

At the period end, the group was owed:

£485,780 (2023 - £670,801) by Cinos Inc.
£493,187 (2023 - £322,665) by Cinos PTE

These loans are interest free and repayable on demand.
CINOS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 33 -
29
Analysis of changes in net funds - group
1 May 2023
Cash flows
New finance leases
30 April 2024
£
£
£
£
Cash at bank and in hand
2,414,059
(182,629)
-
2,231,430
Bank overdrafts
(752)
667
-
(85)
2,413,307
(181,962)
-
2,231,345
Borrowings excluding overdrafts
(1,037,492)
178,762
-
(858,730)
Obligations under finance leases
(616,209)
237,749
(112,641)
(491,101)
759,606
234,549
(112,641)
881,514
30
Cash generated from group operations
2024
2023
£
£
Loss for the year after tax
(1,976,969)
(39,782)
Adjustments for:
Taxation charged
42,430
219,415
Finance costs
165,009
133,989
Investment income
(11,738)
(1,904)
Amortisation and impairment of intangible assets
2,022,095
1,836,446
Depreciation and impairment of tangible fixed assets
413,847
311,064
Equity settled share based payment expense
-
842
Increase in provisions
2,898
-
Movements in working capital:
(Increase)/decrease in stocks
(324,667)
254,758
Decrease in debtors
2,552,055
724,580
Decrease in creditors
(2,029,200)
(1,868,141)
Increase in deferred income
108,970
714,709
Cash generated from operations
964,730
2,285,976
2024-04-302023-05-01falsefalseCCH SoftwareCCH Accounts Production 2025.100Mr K DeadyMr S J FranklinMrs J GuestMr L SharpMr D Wormanfalse11769890bus:Consolidated2023-05-012024-04-30117698902023-05-012024-04-3011769890bus:Director12023-05-012024-04-3011769890bus:Director22023-05-012024-04-3011769890bus:Director32023-05-012024-04-3011769890bus:Director42023-05-012024-04-3011769890bus:Director52023-05-012024-04-3011769890bus:RegisteredOffice2023-05-012024-04-30117698902024-04-3011769890bus:Consolidated2022-05-012023-04-30117698902022-05-012023-04-3011769890bus:Consolidated2024-04-3011769890core:Goodwillbus:Consolidated2024-04-3011769890core:Goodwillbus:Consolidated2023-04-3011769890core:OtherResidualIntangibleAssetsbus:Consolidated2024-04-3011769890core:OtherResidualIntangibleAssetsbus:Consolidated2023-04-3011769890bus:Consolidated2023-04-3011769890core:NegativeGoodwillbus:Consolidated2024-04-3011769890core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwillbus:Consolidated2024-04-3011769890core:NegativeGoodwillbus:Consolidated2023-04-3011769890core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwillbus:Consolidated2023-04-3011769890core:LeaseholdImprovementsbus:Consolidated2024-04-3011769890core:PlantMachinerybus:Consolidated2024-04-3011769890core:FurnitureFittingsbus:Consolidated2024-04-3011769890core:ComputerEquipmentbus:Consolidated2024-04-3011769890core:LeaseholdImprovementsbus:Consolidated2023-04-3011769890core:PlantMachinerybus:Consolidated2023-04-3011769890core:FurnitureFittingsbus:Consolidated2023-04-3011769890core:ComputerEquipmentbus:Consolidated2023-04-30117698902023-04-3011769890core:ShareCapitalbus:Consolidated2024-04-3011769890core:ShareCapitalbus:Consolidated2023-04-3011769890core:SharePremiumbus:Consolidated2024-04-3011769890core:SharePremiumbus:Consolidated2023-04-3011769890core:OtherMiscellaneousReservebus:Consolidated2024-04-3011769890core:OtherMiscellaneousReservebus:Consolidated2023-04-3011769890core:RetainedEarningsAccumulatedLossesbus:Consolidated2024-04-3011769890core:RetainedEarningsAccumulatedLossesbus:Consolidated2023-04-3011769890core:Non-controllingInterestsbus:Consolidated2024-04-3011769890core:Non-controllingInterestsbus:Consolidated2023-04-3011769890core:ShareCapital2024-04-3011769890core:ShareCapital2023-04-3011769890core:SharePremium2024-04-3011769890core:SharePremium2023-04-3011769890core:OtherMiscellaneousReserve2024-04-3011769890core:OtherMiscellaneousReserve2023-04-3011769890core:RetainedEarningsAccumulatedLosses2024-04-3011769890core:RetainedEarningsAccumulatedLosses2023-04-3011769890core:ShareCapitalbus:Consolidated2022-04-3011769890core:SharePremiumbus:Consolidated2022-04-30117698902022-04-3011769890core:Non-controllingInterests2023-04-3011769890core:Non-controllingInterests2024-04-3011769890core:ShareCapital2022-04-3011769890core:SharePremium2022-04-3011769890core:RetainedEarningsAccumulatedLosses2022-04-3011769890bus:Consolidated2022-04-3011769890core:Goodwill2023-05-012024-04-3011769890core:IntangibleAssetsOtherThanGoodwill2023-05-012024-04-3011769890core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2023-05-012024-04-3011769890core:LeaseholdImprovements2023-05-012024-04-3011769890core:PlantMachinery2023-05-012024-04-3011769890core:FurnitureFittings2023-05-012024-04-3011769890core:ComputerEquipment2023-05-012024-04-3011769890core:UKTaxbus:Consolidated2023-05-012024-04-3011769890core:UKTaxbus:Consolidated2022-05-012023-04-3011769890core:ForeignTaxbus:Consolidated2023-05-012024-04-3011769890core:ForeignTaxbus:Consolidated2022-05-012023-04-3011769890bus:Consolidated12023-05-012024-04-3011769890bus:Consolidated12022-05-012023-04-3011769890bus:Consolidated22023-05-012024-04-3011769890bus:Consolidated22022-05-012023-04-3011769890bus:Consolidated32023-05-012024-04-3011769890bus:Consolidated32022-05-012023-04-3011769890core:Goodwillbus:Consolidated2023-04-3011769890core:NegativeGoodwillbus:Consolidated2023-04-3011769890core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwillbus:Consolidated2023-04-3011769890bus:Consolidated2023-04-3011769890core:Goodwillbus:Consolidated2023-05-012024-04-3011769890core:NegativeGoodwillbus:Consolidated2023-05-012024-04-3011769890core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwillbus:Consolidated2023-05-012024-04-3011769890core:LeaseholdImprovementsbus:Consolidated2023-04-3011769890core:PlantMachinerybus:Consolidated2023-04-3011769890core:FurnitureFittingsbus:Consolidated2023-04-3011769890core:ComputerEquipmentbus:Consolidated2023-04-3011769890core:LeaseholdImprovementsbus:Consolidated2023-05-012024-04-3011769890core:PlantMachinerybus:Consolidated2023-05-012024-04-3011769890core:FurnitureFittingsbus:Consolidated2023-05-012024-04-3011769890core:ComputerEquipmentbus:Consolidated2023-05-012024-04-3011769890core:Subsidiary12023-05-012024-04-3011769890core:Subsidiary22023-05-012024-04-3011769890core:Subsidiary32023-05-012024-04-3011769890core:Subsidiary42023-05-012024-04-3011769890core:Subsidiary52023-05-012024-04-3011769890core:Subsidiary62023-05-012024-04-3011769890core:Subsidiary112023-05-012024-04-3011769890core:Subsidiary222023-05-012024-04-3011769890core:Subsidiary332023-05-012024-04-3011769890core:Subsidiary442023-05-012024-04-3011769890core:Subsidiary552023-05-012024-04-3011769890core:Subsidiary662023-05-012024-04-3011769890core:CurrentFinancialInstruments2024-04-3011769890core:CurrentFinancialInstruments2023-04-3011769890core:CurrentFinancialInstrumentsbus:Consolidated2024-04-3011769890core:CurrentFinancialInstrumentsbus:Consolidated2023-04-3011769890core:WithinOneYearbus:Consolidated2024-04-3011769890core:WithinOneYearbus:Consolidated2023-04-3011769890core:CurrentFinancialInstrumentscore:WithinOneYear2024-04-3011769890core:CurrentFinancialInstrumentscore:WithinOneYear2023-04-3011769890core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2024-04-3011769890core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2023-04-3011769890core:Non-currentFinancialInstrumentscore:AfterOneYear2024-04-3011769890core:Non-currentFinancialInstrumentscore:AfterOneYear2023-04-3011769890core:Non-currentFinancialInstrumentsbus:Consolidated2024-04-3011769890core:Non-currentFinancialInstrumentsbus:Consolidated2023-04-3011769890core:Non-currentFinancialInstruments2024-04-3011769890core:Non-currentFinancialInstruments2023-04-3011769890core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2024-04-3011769890core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2023-04-3011769890core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated12024-04-3011769890core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated12023-04-3011769890core:Non-currentFinancialInstrumentscore:AfterOneYear22024-04-3011769890core:Non-currentFinancialInstrumentscore:AfterOneYear22023-04-3011769890core:WithinOneYear2024-04-3011769890core:WithinOneYear2023-04-3011769890core:BetweenTwoFiveYearsbus:Consolidated2024-04-3011769890core:BetweenTwoFiveYearsbus:Consolidated2023-04-3011769890core:BetweenTwoFiveYears2024-04-3011769890core:BetweenTwoFiveYears2023-04-3011769890bus:PrivateLimitedCompanyLtd2023-05-012024-04-3011769890bus:FRS1022023-05-012024-04-3011769890bus:Audited2023-05-012024-04-3011769890bus:ConsolidatedGroupCompanyAccounts2023-05-012024-04-3011769890bus:FullAccounts2023-05-012024-04-30xbrli:purexbrli:sharesiso4217:GBP