Company Registration No. 07724692 (England and Wales)
EURO WORKSPACE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
Affinia
The Octagon
Suite E2, 2nd Floor
Middleborough
Colchester
CO1 1TG
EURO WORKSPACE LIMITED
COMPANY INFORMATION
Directors
E Batley
J Batley
I Narramore
A Cowley
Company number
07724692
Registered office
The Octagon Suite E2
2nd Floor Middleborough
Colchester
Essex
CO1 1TG
Auditor
Affinia (Colchester)
The Octagon
Suite E2, 2nd Floor
Middleborough
Colchester
CO1 1TG
EURO WORKSPACE LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 7
Income statement
8
Statement of financial position
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 25
EURO WORKSPACE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 1 -
The directors present the strategic report for the year ended 30 April 2024.
Review of the business
During the year turnover decreased by 17.27% (2023: increased by 22.21%) and the company achieved a gross profit margin of 48.01% (2023: 43.19%).
Profit before tax has decreased from £1,330,518 in 2023 to a loss before tax of £49,027 in 2024.
Principal risks and uncertainties
The main risk to the company continues to be the general condition of the economy but the directors are confident that the company is well placed to deal with any issues as they arise, given the increased strength in the company's balance sheet.
Key performance indicators
Given the straight forward nature of the business, the company's directors are of the opinion that a more detailed analysis, using key performance indicators, is not necessary to understand the development, performance or position of the business.
E Batley
Director
22 May 2025
EURO WORKSPACE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -
The directors present their annual report and financial statements for the year ended 30 April 2024.
Principal activities
The principal activity of the company during the year continued to be that of wholesale of office furniture.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £565,512. The directors do not recommend payment of a further dividend.
No preference dividends were paid.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
E Batley
J Batley
I Narramore
A Cowley
Auditor
Affinia (Colchester) were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Each of the persons who is a director at the date of approval of this report confirm that:
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
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
E Batley
Director
22 May 2025
EURO WORKSPACE LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 APRIL 2024
- 3 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
EURO WORKSPACE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF EURO WORKSPACE LIMITED
- 4 -
Qualified opinion on financial statements
We have audited the financial statements of Euro Workspace Limited (the 'company') for the year ended 30 April 2024 which comprise the income statement, the statement of financial position, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph, the financial statements:
give a true and fair view of the state of the company's affairs as at 30 April 2024 and of its loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for qualified opinion
As we were not appointed as auditor of the company until after 30 April 2023, and the 2022 financial year was unaudited, we therefore did not observe the counting of physical inventories at those respective year ends. Thus, we were unable to satisfy ourselves by alternative means concerning inventory quantities held at 30 April 2022 and 30 April 2023, which are included in the balance sheet at £328,297 and £274,391 respectively. Consequently, we were unable to determine whether any adjustment to this amount was necessary for opening balances. Our audit opinion on the financial statements for the year ended 30 April 2023 was modified accordingly. Our opinion on the current period's financial statements is also modified because of the possible effect of this matter on the comparability of the current period's figures for cost of sales and related balances and the corresponding figures.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
EURO WORKSPACE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EURO WORKSPACE LIMITED
- 5 -
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In respect solely of the limitation on our work relating to stock, described above:
we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and
we were unable to determine whether adequate accounting records had been maintained.
Except for the possible effects of the matter described in the basis for qualified opinion section of our report, In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of 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 directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
EURO WORKSPACE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EURO WORKSPACE LIMITED
- 6 -
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:
The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
We identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the storage solutions sector;
We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation;
We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
Identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
Making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
Performed analytical procedures to identify any unusual or unexpected relationships;
Tested journal entries to identify unusual transactions;
Tested a sample of revenue recognised either side of the period end to ensure revenue has been recognised in the correct period;
Reviewed the internal controls in place, specifically around payroll and bank transactions;
Assessed whether judgements and assumptions made in determining the accounting estimates around stock and bad debt provisions were indicative of potential bias; and
Investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
Agreeing financial statement disclosures to underlying supporting documentation;
Reading the minutes of meeting of those charged with governance;
Enquiring of management as to actual and potential litigation and claims; and
Reviewing correspondence with HMRC and the company's legal advisors.
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.
EURO WORKSPACE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EURO WORKSPACE LIMITED
- 7 -
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.
Shaun Roberts
Senior Statutory Auditor
For and on behalf of Affinia (Colchester)
22 May 2025
Chartered Accountants
Statutory Auditor
The Octagon
Suite E2, 2nd Floor
Middleborough
Colchester
CO1 1TG
EURO WORKSPACE LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 30 APRIL 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
11,096,829
13,639,961
Cost of sales
(5,769,636)
(7,749,207)
Gross profit
5,327,193
5,890,754
Administrative expenses
(5,440,501)
(4,520,131)
Other operating income
42,640
Operating (loss)/profit
4
(70,668)
1,370,623
Interest receivable and similar income
93,255
15,708
Interest payable and similar expenses
8
(71,614)
(55,813)
(Loss)/profit before taxation
(49,027)
1,330,518
Tax on (loss)/profit
9
(13,548)
(343,106)
(Loss)/profit for the financial year
(62,575)
987,412
The income statement has been prepared on the basis that all operations are continuing operations.
EURO WORKSPACE LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT 30 APRIL 2024
30 April 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
11
39,876
38,230
Tangible assets
12
633,849
381,127
673,725
419,357
Current assets
Stocks
14
671,690
524,839
Debtors
15
3,810,855
4,029,922
Cash at bank and in hand
2,367,227
2,729,216
6,849,772
7,283,977
Creditors: amounts falling due within one year
16
(3,810,348)
(3,591,777)
Net current assets
3,039,424
3,692,200
Total assets less current liabilities
3,713,149
4,111,557
Creditors: amounts falling due after more than one year
17
(362,330)
(195,832)
Provisions for liabilities
Deferred tax liability
20
158,462
95,281
(158,462)
(95,281)
Net assets
3,192,357
3,820,444
Capital and reserves
Called up share capital
105
105
Capital redemption reserve
1
1
Profit and loss reserves
3,192,251
3,820,338
Total equity
3,192,357
3,820,444
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 22 May 2025 and are signed on its behalf by:
E Batley
Director
Company registration number 07724692 (England and Wales)
EURO WORKSPACE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 10 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 May 2022
103
1
3,436,067
3,436,171
Year ended 30 April 2023:
Profit and total comprehensive income
-
-
987,412
987,412
Issue of share capital
1
-
-
1
Dividends
10
-
-
(603,141)
(603,141)
Redemption of shares
1
-
1
Balance at 30 April 2023
105
1
3,820,338
3,820,444
Year ended 30 April 2024:
Loss and total comprehensive income
-
-
(62,575)
(62,575)
Dividends
10
-
-
(565,512)
(565,512)
Balance at 30 April 2024
105
1
3,192,251
3,192,357
EURO WORKSPACE LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
375,944
1,093,809
Interest paid
(71,614)
(25,155)
Income taxes refunded/(paid)
41,782
(122,500)
Net cash inflow from operating activities
346,112
946,154
Investing activities
Purchase of intangible assets
(8,750)
Purchase of tangible fixed assets
(68,730)
(99,479)
Proceeds from disposal of tangible fixed assets
1,250
Interest received
93,255
15,708
Net cash generated from/(used in) investing activities
17,025
(83,771)
Financing activities
Repayment of bank loans
(9,849)
(9,987)
Payment of finance leases obligations
(149,765)
(98,357)
Dividends paid
(565,512)
(603,141)
Net cash used in financing activities
(725,126)
(711,485)
Net (decrease)/increase in cash and cash equivalents
(361,989)
150,898
Cash and cash equivalents at beginning of year
2,729,216
2,578,318
Cash and cash equivalents at end of year
2,367,227
2,729,216
EURO WORKSPACE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 12 -
1
Accounting policies
Company information
Euro Workspace Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Octagon Suite E2, 2nd Floor Middleborough, Colchester, Essex, CO1 1TG.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for at least the next twelve months. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, 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 in respect of the transaction can be measured reliably.
Revenue from projects 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.
Rent receivable is recognised at the fair value of the consideration received or receivable for rental income, provided in the normal course of the business.
1.4
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.
EURO WORKSPACE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 13 -
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Software
7 years straight line
1.5
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:
Plant & machinery
7 years straight line
Fixtures & fittings
20% straight line
I.T equipment
3 years straight line
Motor vehicles
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 credited or charged to profit or loss.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.7
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.
1.8
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.
EURO WORKSPACE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 14 -
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
EURO WORKSPACE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 15 -
1.12
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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
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 statement of financial position 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 leases asset are consumed.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.15
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.
EURO WORKSPACE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 16 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
In preparing these financial statements, the directors have considered the requirement for any provision for impairment in respect of stock held at the balance sheet date. To identify any impairment, the client reviews items which have not been used or sold in the past two years.
The directors have also considered the requirement for a warranty provision for products sold. The respective warranty periods for different goods and parts thereof shall be as set out the company’s sales brochure current at the time that the contract is entered into (‘the Warranty Period’). The company warrants that the goods and/or the parts of the goods will, for the applicable 'Warranty Period' starting from the date of delivery, when properly stored, transported, installed and used, accord with any specification specifically agreed by the company in writing. All other representations, warranties or conditions as to quality, description, fitness for purpose or otherwise (whether express or implied, statutory or otherwise) are excluded to the fullest extent permitted by law.
The directors have also provided a bad debt provision against specific debts which is unchanged from the previous year.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Sale of storage solutions
11,096,829
13,639,961
2024
2023
£
£
Other revenue
Interest income
93,255
15,708
Recharged Rental Income
42,640
-
EURO WORKSPACE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 17 -
4
Operating (loss)/profit
2024
2023
Operating (loss)/profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(2,502)
20,134
Depreciation of owned tangible fixed assets
52,339
33,105
Depreciation of tangible fixed assets held under finance leases
100,816
59,244
(Profit)/loss on disposal of tangible fixed assets
(1,250)
1,500
Amortisation of intangible assets
7,104
3,476
Operating lease charges
516,063
327,574
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
19,750
21,500
For other services
Taxation compliance services
8,800
1,190
All other non-audit services
18,701
9,564
27,501
10,754
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Employees
66
62
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
2,274,771
2,005,211
Social security costs
226,357
216,960
Pension costs
332,378
347,443
2,833,506
2,569,614
EURO WORKSPACE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 18 -
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
50,280
50,196
Company pension contributions to defined contribution schemes
260,000
280,000
310,280
330,196
The highest paid director in the year was £213,049 (2023: 92,796).
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
799
-
Other finance costs:
Interest on finance leases and hire purchase contracts
28,705
34,338
Other interest
42,110
21,475
71,614
55,813
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
47,189
244,268
Adjustments in respect of prior periods
(96,821)
79,443
Total current tax
(49,632)
323,711
Deferred tax
Origination and reversal of timing differences
63,180
19,395
Total tax charge
13,548
343,106
EURO WORKSPACE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
9
Taxation
(Continued)
- 19 -
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
(49,027)
1,330,518
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
(12,257)
252,798
Tax effect of expenses that are not deductible in determining taxable profit
51,638
12,655
Tax effect of income not taxable in determining taxable profit
(312)
Gains not taxable
(1,507)
Adjustments in respect of prior years
(96,821)
79,443
Effect of change in corporation tax rate
(1,029)
6,180
Permanent capital allowances in excess of depreciation
(103,657)
(25,858)
Deferred tax adjustment
63,180
19,395
Profit on intercompany loan write off not taxable
112,806
Taxation charge for the year
13,548
343,106
10
Dividends
2024
2023
£
£
Final paid
565,512
603,141
11
Intangible fixed assets
Software
£
Cost
At 1 May 2023
41,706
Additions
8,750
At 30 April 2024
50,456
Amortisation and impairment
At 1 May 2023
3,476
Amortisation charged for the year
7,104
At 30 April 2024
10,580
Carrying amount
At 30 April 2024
39,876
At 30 April 2023
38,230
EURO WORKSPACE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
11
Intangible fixed assets
(Continued)
- 20 -
Intangible assets held are all on finance leases.
12
Tangible fixed assets
Plant & machinery
Fixtures & fittings
I.T equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 May 2023
487,362
19,073
87,557
88,714
682,706
Additions
355,654
29,819
5,404
15,000
405,877
At 30 April 2024
843,016
48,892
92,961
103,714
1,088,583
Depreciation and impairment
At 1 May 2023
180,046
16,895
54,385
50,253
301,579
Depreciation charged in the year
115,825
6,177
16,155
14,998
153,155
At 30 April 2024
295,871
23,072
70,540
65,251
454,734
Carrying amount
At 30 April 2024
547,145
25,820
22,421
38,463
633,849
At 30 April 2023
307,316
2,178
33,172
38,461
381,127
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2024
2023
£
£
Plant & machinery
474,989
245,509
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
Your Workspace Limited
United Kingdom
Ordinary
100.00
Burg Locks Ltd
United Kingdom
Ordinary
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Your Workspace Limited
100
Burg Locks Ltd
1
EURO WORKSPACE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
13
Subsidiaries
(Continued)
- 21 -
Burg Locks Ltd and Your workspace Limited have not traded in the current or previous financial period. The registered office address for both companies is The Octagon Suite E2, 2nd Floor, Middleborough, Colchester, Essex, CO1 1TG
14
Stocks
2024
2023
£
£
Work in progress
303,281
250,448
Finished goods and goods for resale
368,409
274,391
671,690
524,839
15
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,741,563
1,673,174
Other debtors
1,971,950
2,276,557
Prepayments and accrued income
97,342
80,191
3,810,855
4,029,922
Trade debtors are stated after provisions for impairment of £132,154 (2023: 132,154).
Within other debtors are related party balances of £1,646,224 (2023: £1,962,061), as listed in note 24.
16
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
19
111,562
100,527
Trade creditors
1,097,363
1,222,865
Corporation tax
686,581
694,432
Other taxation and social security
507,163
480,411
Other creditors
44
22,044
Accruals and deferred income
1,407,635
1,071,498
3,810,348
3,591,777
On 24th July 2012 the company entered into a debenture with RBS Invoice Finance Limited which secured all liabilities to them by way of a charge over the companies assets.
On 14th September 2018 the company entered into a debenture with National Westminster bank plc which secured all liabilities to them by way of a charge over the companies assets.
On 12th November 2020 the company entered into a debenture with National Westminster bank plc which secured all liabilities to them by way of a charge over the companies assets.
EURO WORKSPACE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 22 -
17
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
18
26,612
36,461
Obligations under finance leases
19
335,718
159,371
362,330
195,832
On 24th July 2012 the company entered into a debenture with RBS Invoice Finance Limited which secured all liabilities to them by way of a charge over the companies assets.
On 14th September 2018 the company entered into a debenture with National Westminster bank plc which secured all liabilities to them by way of a charge over the companies assets.
On 12th November 2020 the company entered into a debenture with National Westminster bank plc which secured all liabilities to them by way of a charge over the companies assets.
18
Loans and overdrafts
2024
2023
£
£
Bank loans
26,612
36,461
Payable after one year
26,612
36,461
19
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
111,562
100,527
In two to five years
335,718
159,371
447,280
259,898
EURO WORKSPACE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 23 -
20
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
158,462
95,281
2024
Movements in the year:
£
Liability at 1 May 2023
95,281
Charge to profit or loss
63,181
Liability at 30 April 2024
158,462
The deferred tax liability set out above is expected to reverse in the future and relates to accelerated capital allowances that are expected to mature within the same period.
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
332,378
347,443
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
22
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
95,625
95,625
Between two and five years
187,292
201,000
282,917
296,625
EURO WORKSPACE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 24 -
23
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2024
2023
£
£
Aggregate compensation
31,727
11,809
Other information
At the statement of financial position date, included within other debtors the company was owed £267,382 (2023: £183,276) from Compact Storage Limited which is a company with common control.
At the statement of financial position date, included within other debtors the company was owed £Nil (2023: £455,655) from Jeet Limited which is a company with common control.
At the statement of financial position date, included within other debtors the company was owed £515,850 (2023: £515,850) from Jeet SCI which is a company with common control.
At the statement of financial position date, included within other debtors the company was owed £42,866 (2023: £50,676) from Harling Fabrications Limited which is a company with common control.
At the statement of financial position date, included within other debtors the company was owed £269,621 (2023: £218,287) from Fonzel Office Solutions Pvt which is a company with common control.
At the statement of financial position date, included within other debtors the company was owed £550,504 (2023: £538,315) from Heeny Limited which is a company with common control.
24
Directors' transactions
During the year ended 30 April 2024 the Directors were advanced a total of £105,262 and repaid a total of £105,262 to the company. At 30 April 2024 the amount owed to the company by the Directors totalled £231,015. No interest is being charged on the balance and the loans were repaid by 31 January 2025. No guarantees have been given or received during the year.
25
Post balance sheet events
A restructure took place post year end, whereby the Ordinary E, Ordinary F and Ordinary G shares were bought back and subsequently cancelled by Euro Workspace Limited.
The Ordinary, Ordinary B and Ordinary D shares were sold to Euro Workspace Global Limited.
As such, the ultimate parent company at the date of signing the financial statements is Euro Workspace Global Limited, a company registered in England & Wales, company number 13099398.
EURO WORKSPACE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 25 -
26
Cash generated from operations
2024
2023
£
£
(Loss)/profit for the year after tax
(62,575)
987,412
Adjustments for:
Taxation charged
13,548
343,106
Finance costs
71,614
55,813
Investment income
(93,255)
(15,708)
(Gain)/loss on disposal of tangible fixed assets
(1,250)
1,500
Amortisation and impairment of intangible assets
7,104
3,476
Depreciation and impairment of tangible fixed assets
153,155
92,349
Movements in working capital:
Increase in stocks
(146,851)
(62,720)
Decrease/(increase) in debtors
219,067
(13,243)
Increase/(decrease) in creditors
215,387
(298,176)
Cash generated from operations
375,944
1,093,809
27
Analysis of changes in net funds
1 May 2023
Cash flows
New finance leases
30 April 2024
£
£
£
£
Cash at bank and in hand
2,729,216
(361,989)
-
2,367,227
Borrowings excluding overdrafts
(36,461)
9,849
-
(26,612)
Obligations under finance leases
(259,898)
149,765
(337,147)
(447,280)
2,432,857
(202,375)
(337,147)
1,893,335
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