Company Registration No. 01375726 (England and Wales)
BRENTWOOD COMMUNICATIONS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
BRENTWOOD COMMUNICATIONS LIMITED
COMPANY INFORMATION
Directors
A Gander
AN P Miller
JE Miller
Secretary
T Harbord
Company number
01375726
Registered office
BC House
East Hanningfield Road
Chelmsford
Essex
CM3 8EW
Auditor
Rickard Luckin Limited
1st Floor
19 Clifftown Road
Southend-On-Sea
Essex
SS1 1AB
Bankers
NatWest Bank Plc
PO Box 86
46 High Street
Brentwood
CM14 4AN
BRENTWOOD COMMUNICATIONS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
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 - 38
BRENTWOOD COMMUNICATIONS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 1 -
The directors present the strategic report for the year ended 30 September 2024.
Fair review of the business
During the year turnover has decreased significantly from £19.9m to £11.0m, this is predominately due to the fulfilment of a large one off contract in the previous year. However gross profit percentage has increased from 28.2% to 31.3% as sales price have risen during the year to accommodate increased demand within the industry.
Shareholder's funds have decreased from £4.8m to £3.9m at the balance sheet date. This is a result of the group providing against debts due from associated companies, totalling £497k, which are no longer recoverable and increased spend as the Group invests in the underlying business CRM systems to ensure increased future demand from customers can be met and converted into profits.
The company's key financial performance indicators during the year were as follows:
Principal risks and uncertainties
The main risk to the future trade of the company is the competiveness of the market in which long term contracts are periodically renewed.
Price risk, Credit risk, Liquidity risk and cash flow risk
The company's principal financial instruments comprise cash and liquid resources. The main purpose of these instruments is to finance the company's operations. The company has various other financial instruments such as trade debtors and trade creditors that arise directly from its operations.
In respect of bank balances, the liquidity risk is managed by maintaining a positive cash position. All of the company's cash balances are held in such a way that achieves a competitive rate of interest.
Trade debtors are managed in respect of credit and cash flow risk policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the balance sheet are net of allowances for doubtful debtors.
Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.
JE Miller
Director
26 June 2025
BRENTWOOD COMMUNICATIONS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -
The directors present their annual report and financial statements for the year ended 30 September 2024.
Principal activities
The principal activity of the company and group continued to be that of wireless communication activities.
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:
A Gander
AN P Miller
JE Miller
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.
Prior period adjustment
We would draw attention to the prior period adjustment that took place in the year, correcting the classification of payroll expenses as at 30 September 2023. This prior period adjustment has had no impact on retained earnings, has decreased admin expenses by £612,445 and increased cost of sales expenses by £612,445. This has lead to the group GP Margin decreasing from 31.3% to 28.2%,
On behalf of the board
JE Miller
Director
26 June 2025
BRENTWOOD COMMUNICATIONS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
BRENTWOOD COMMUNICATIONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BRENTWOOD COMMUNICATIONS LIMITED
- 4 -
Opinion
We have audited the financial statements of Brentwood Communications Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2024 which comprise the group profit and loss account, 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:
give a true and fair view of the state of the group's and the parent company's affairs as at 30 September 2024 and of the group's 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.
We were not appointed auditors of the Group until part way through the current period and we were therefore not able to observe the counting of the physical stocks at the beginning of that period or satisfy ourselves concerning those stock quantities by alternative means. Since opening stocks affect the determination of the results for the current period, we were unable to determine whether adjustments to the results and opening retained earnings might be necessary. Our audit opinion is therefore modified as a result in respect of this.
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.
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.
BRENTWOOD COMMUNICATIONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BRENTWOOD COMMUNICATIONS 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 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:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Capability of the audit in detecting irregularity, including fraud
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.
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our: general commercial and sector experience; through verbal and written communications with those charged with governance and other management; and via inspection of the group’s regulatory and legal correspondence.
We discussed with those charged with governance and other management the policies and procedures regarding compliance with laws and regulations.
BRENTWOOD COMMUNICATIONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BRENTWOOD COMMUNICATIONS LIMITED
- 6 -
We communicated identified laws and regulations to our team and remained alert to any indicators of non-compliance throughout the audit, we also specifically considered where and how fraud may occur within the group and the parent company.
The potential effect of these laws and regulations on the financial statements varies considerably.
Firstly, the group is subject to laws and regulations that directly affect the financial statements, including: the company’s constitution; relevant financial reporting standards; company law; tax legislation and distributable profits legislation and we assess the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
Secondly the group is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on the amounts or disclosures in the financial statements, for instance through the imposition of fines and penalties, or through losses arising from litigations. We identified the following areas as those most likely to have such an affect: employment legislation; health and safety legislation; data protection legislation and anti-bribery and corruption legislation.
ISAs (UK) limit the required procedures to identify non-compliance with these laws and regulations to the procedures, and no procedures over and above those already noted are required. These limited procedures did not identify any actual or suspected non-compliance which laws and regulations that could have a material impact on the financial statements.
In relation to fraud, we performed the following specific procedures in addition to those already noted:
Challenging assumptions made by management in its significant accounting estimates in particular; Depreciation, bad debt provision, deferred taxation and factors included in the defined benefit pension scheme.
Identifying and testing journal entries, in particular any entries posted with unusual nominal ledger account combinations, journal entries crediting cash or any revenue account and journal entries posted by senior management;
Performing analytical procedures to identify unexpected movements in account balances which may be indicative of fraud;
Ensuring that testing undertaken on both the performance statement, and the Balance Sheet includes a number of items selected on a random basis;
Enquiries of management
These procedures did not identify any actual or suspected fraudulent irregularity that could have a material impact on the financial statements.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with ISAs (UK). For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the procedures that we are required to undertake would identify it. In addition, as with any audit, there remains a high risk of non-detection of irregularities, as these might involve collusion, forgery, intentional omissions, misrepresentation, or the override of internal controls. We are not responsible for preventing non-compliance with laws and regulations or fraud, and cannot be expected to detect non-compliance with all laws and regulations or every incidence of fraud.
BRENTWOOD COMMUNICATIONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BRENTWOOD COMMUNICATIONS 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.
Neil Brewer (Senior Statutory Auditor)
For and on behalf of Rickard Luckin Limited
27 June 2025
Chartered Accountants
Statutory Auditor
1st Floor
19 Clifftown Road
Southend-On-Sea
Essex
SS1 1AB
BRENTWOOD COMMUNICATIONS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 8 -
2024
2023
as restated
Notes
£
£
Turnover
3
10,953,675
19,941,890
Cost of sales
(7,530,083)
(14,309,844)
Gross profit
3,423,592
5,632,046
Administrative expenses
(4,029,100)
(3,035,489)
Other operating income
-
500
Exceptional item
4
(497,453)
Operating (loss)/profit
5
(1,102,961)
2,597,057
Interest receivable and similar income
8
57,562
19,388
Interest payable and similar expenses
9
(44,192)
(54,139)
(Loss)/profit before taxation
(1,089,591)
2,562,306
Tax on (loss)/profit
10
204,975
(615,017)
(Loss)/profit for the financial year
(884,616)
1,947,289
(Loss)/profit for the financial year is all attributable to the owners of the parent company.
BRENTWOOD COMMUNICATIONS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 9 -
2024
2023
as restated
£
£
(Loss)/profit for the year
(884,616)
1,947,289
Other comprehensive income
Actuarial loss on defined benefit pension schemes
(39,000)
(39,000)
Currency translation (loss)/gain taken to retained earnings
(980)
189
Cash flow hedges gain arising in the year
Other comprehensive income for the year
(39,980)
(38,811)
Total comprehensive income for the year
(924,596)
1,908,478
Total comprehensive income for the year is all attributable to the owners of the parent company.
BRENTWOOD COMMUNICATIONS LIMITED
GROUP BALANCE SHEET
AS AT
30 SEPTEMBER 2024
30 September 2024
- 10 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Goodwill
12
711,048
823,482
Tangible assets
13
1,561,084
1,571,815
2,272,132
2,395,297
Current assets
Stocks
16
1,242,790
1,201,931
Debtors
17
2,857,681
2,830,051
Cash at bank and in hand
1,251,187
1,976,887
5,351,658
6,008,869
Creditors: amounts falling due within one year
18
(3,391,707)
(3,239,409)
Net current assets
1,959,951
2,769,460
Total assets less current liabilities
4,232,083
5,164,757
Creditors: amounts falling due after more than one year
19
-
(1,485)
Provisions for liabilities
Deferred tax liability
22
377,249
383,842
(377,249)
(383,842)
Net assets
3,854,834
4,779,430
Capital and reserves
Called up share capital
23
2,700
2,700
Profit and loss reserves
3,852,134
4,776,730
Total equity
3,854,834
4,779,430
These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.
The financial statements were approved by the board of directors and authorised for issue on 26 June 2025 and are signed on its behalf by:
26 June 2025
JE Miller
Director
Company registration number 01375726 (England and Wales)
BRENTWOOD COMMUNICATIONS LIMITED
COMPANY BALANCE SHEET
AS AT 30 SEPTEMBER 2024
30 September 2024
- 11 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
13
1,070,363
1,094,383
Investments
14
1,735,623
1,863,205
2,805,986
2,957,588
Current assets
Stocks
16
794,952
933,167
Debtors
17
2,895,938
2,500,487
Cash at bank and in hand
452,796
1,317,726
4,143,686
4,751,380
Creditors: amounts falling due within one year
18
(3,156,523)
(3,133,287)
Net current assets
987,163
1,618,093
Total assets less current liabilities
3,793,149
4,575,681
Creditors: amounts falling due after more than one year
19
-
(1,485)
Provisions for liabilities
Deferred tax liability
22
269,451
277,259
(269,451)
(277,259)
Net assets
3,523,698
4,296,937
Capital and reserves
Called up share capital
23
2,700
2,700
Profit and loss reserves
3,520,998
4,294,237
Total equity
3,523,698
4,296,937
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £773,239 (2023 - £2,043,379 profit).
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 26 June 2025 and are signed on its behalf by:
26 June 2025
JE Miller
Director
Company registration number 01375726 (England and Wales)
BRENTWOOD COMMUNICATIONS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
As restated for the period ended 30 September 2023:
Balance at 1 October 2022
2,700
3,013,252
3,015,952
Year ended 30 September 2023:
Profit for the year
-
1,947,289
1,947,289
Other comprehensive income:
Actuarial gains on defined benefit plans
-
(39,000)
(39,000)
Currency translation differences
-
189
189
Total comprehensive income
-
1,908,478
1,908,478
Dividends
11
-
(145,000)
(145,000)
Balance at 30 September 2023
2,700
4,776,730
4,779,430
Year ended 30 September 2024:
Loss for the year
-
(884,616)
(884,616)
Other comprehensive income:
Actuarial gains on defined benefit plans
-
(39,000)
(39,000)
Currency translation differences
-
(980)
(980)
Total comprehensive income
-
(924,596)
(924,596)
Balance at 30 September 2024
2,700
3,852,134
3,854,834
BRENTWOOD COMMUNICATIONS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
As restated for the period ended 30 September 2023:
Balance at 1 October 2022
2,700
2,395,858
2,398,558
Year ended 30 September 2023:
Profit and total comprehensive income for the year
-
2,043,379
2,043,379
Dividends
11
-
(145,000)
(145,000)
Balance at 30 September 2023
2,700
4,294,237
4,296,937
Year ended 30 September 2024:
Profit and total comprehensive income
-
(773,239)
(773,239)
Balance at 30 September 2024
2,700
3,520,998
3,523,698
BRENTWOOD COMMUNICATIONS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 14 -
2024
2023
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
30
(313,833)
(1,716,009)
Interest paid
(44,192)
(54,139)
Income taxes paid
(477,557)
(5,180)
Net cash outflow from operating activities
(835,582)
(1,775,328)
Investing activities
Purchase of tangible fixed assets
(252,701)
(256,723)
Proceeds from disposal of tangible fixed assets
111,641
104,411
Repayment of loans
234,216
(348,363)
Interest received
54,562
16,388
Net cash generated from/(used in) investing activities
147,718
(484,287)
Financing activities
Repayment of bank loans
(22,222)
(539,827)
Payment of finance leases obligations
(17,011)
(19,362)
Dividends paid to equity shareholders
(145,000)
Net cash used in financing activities
(39,233)
(704,189)
Net decrease in cash and cash equivalents
(727,097)
(2,963,804)
Cash and cash equivalents at beginning of year
1,976,887
4,939,568
Effect of foreign exchange rates
(981)
1,123
Cash and cash equivalents at end of year
1,248,809
1,976,887
Relating to:
Cash at bank and in hand
1,251,187
1,976,887
Bank overdrafts included in creditors payable within one year
(2,378)
-
BRENTWOOD COMMUNICATIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 15 -
1
Accounting policies
Company information
Brentwood Communications Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is .
The group consists of Brentwood Communications Limited and all of its subsidiaries.
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 this company prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
- Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
- Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
1.2
Prior period error
An error has been identified in the financial statements during the financial year ended 30 September 2023 relating to the classification of wages which have previously been recognised incorrectly.
A prior year adjustment has been made to correct the position and restate comparative amounts in the financial statements. The effects of the prior year adjustment are set out in note 28 to these financial statements.
1.3
Business combinations
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
BRENTWOOD COMMUNICATIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 16 -
1.4
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Brentwood Communications Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 30 September 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
1.5
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.6
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
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 hire of goods and servicing is recognised over the term of the contract determined by the value of the goods or services provided at the balance sheet date as a proportion of the total value of the engagement. Where the amount of revenue is contingent on future events, this is only recognised where the amount of revenue can be measured reliably and it is probable that the economic benefits will be received.
1.7
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.
BRENTWOOD COMMUNICATIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 17 -
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
10% straight line
Plant and equipment
10% straight line
Fixtures and fittings
15% reducing balance
Computers
25% reducing balance
Motor vehicles
25% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
1.9
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
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.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
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.
BRENTWOOD COMMUNICATIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 18 -
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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
BRENTWOOD COMMUNICATIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 19 -
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
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.
BRENTWOOD COMMUNICATIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 20 -
1.16
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.
1.17
Retirement benefits
Defined Contribution Pension Plans
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Defined Benefit Pension Plan
A defined benefit plan defines the pension benefit that the employee will receive on retirement, usually dependent upon several factors including age, length of service and remuneration. A defined benefit plan is a pension plan that is not a defined contribution plan.
The liability recognised in the balance sheet in respect of the defined benefit plan is the present value of the defined benefit obligation at the reporting date less the fair value of the plan assets at the reporting date.
The cost of providing benefits under defined benefit plans is determined separately for each plan using the projected unit credit method, and is based on actuarial advice.
The defined benefit obligation is calculated using the projected unit credit method. Annually the company engages independent actuaries to calculate the obligation. The present value is determined by discounting the estimated future payments using market yields on high quality corporate bonds that are denominated in sterling and that have terms approximating the estimated period of the future payments ('discount rate').
The fair value of plan assets is measured in accordance with the FRS 102 fair value hierarchy and in accordance with the companies policy for similarly held assets. This includes the use of appropriate valuation techniques.
The cost of the defined benefit plan, recognised in profit or loss as employee costs, except where included in the costs of an asset, comprises:
(a) the increase in pension benefit liability arising from employee service during the period; and
(b) the cost of plan introductions, benefit changes, curtailments and settlements.
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. The net interest is recognised in profit or loss as other finance revenue or cost.
Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in the other comprehensive income in the period in which they occur and are not reclassified to profit and loss in subsequent periods.
BRENTWOOD COMMUNICATIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 21 -
1.18
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
1.19
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.
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.
BRENTWOOD COMMUNICATIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 22 -
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Deferred taxation
Deferred tax is based on the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Defined benefit pension scheme
The Group has obligations to pay pension benefits to certain employees. The cost of these benefits and the present value of the obligation depend on a number of factors, including; life expectancy, salary increases, asset valuations and the discount rate on corporate bonds. Management engage a professionally qualified actuary to provide valuation reports which include estimates for the factors noted above when determining the net pension obligation in the balance sheet. The assumptions reflect historical experience and current trends and are included in note 24 to these financial statements.
Depreciation
Depreciation is based on an estimate of the useful economic life of each asset. The directors have exercised judgement in determining the useful economic lives of the tangible fixed assets in order to set the depreciation policy. Leasehold improvements and plant are expected to have a useful economic life of 10 years. Fixtures, computer equipment and motor vehicles are expected to reduce in value between 15% to 25% each year.
Bad debt provision
The directors have reviewed the recoverability of associated company debtor balances as at 30 September 2024 and where appropriate, provisions have been made. The directors have concluded that the net balances after provisions are fully recoverable.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sales of equipment
7,422,943
16,841,398
Hire
2,248,506
2,298,966
Service
1,282,226
801,526
10,953,675
19,941,890
2024
2023
£
£
Turnover analysed by geographical market
UK
9,150,458
18,724,280
EEA
776,064
550,475
Other
1,027,153
667,135
10,953,675
19,941,890
BRENTWOOD COMMUNICATIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
3
Turnover and other revenue
(Continued)
- 23 -
2024
2023
£
£
Other revenue
Interest income
57,562
19,388
Grants received
-
500
4
Exceptional item
2024
2023
£
£
Expenditure
Bad debt provision
497,453
-
497,453
-
As at 30 September 2024 the group provided for amounts due from an associated entity, Dreva Supplies Limited. Dreva Supplies Limited stopped trading in February 2025 and is unable to repay amounts due.
5
Operating (loss)/profit
2024
2023
£
£
Operating (loss)/profit for the year is stated after charging/(crediting):
Exchange (gains)/losses
(1,314)
2,124
Government grants
-
(500)
Fees payable to the group's auditor for the audit of the group's financial statements
48,000
45,000
Depreciation of owned tangible fixed assets
174,606
176,289
Depreciation of tangible fixed assets held under finance leases
10,272
13,696
Profit on disposal of tangible fixed assets
(33,087)
(104,411)
Amortisation of intangible assets
112,434
112,434
Operating lease charges
269,624
243,802
6
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
78
71
45
41
BRENTWOOD COMMUNICATIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
6
Employees
(Continued)
- 24 -
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
3,201,193
2,487,972
1,968,249
1,368,980
Social security costs
330,408
261,223
210,856
160,335
Pension costs
55,969
196,916
31,835
165,439
3,587,570
2,946,111
2,210,940
1,694,754
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
441,239
59,730
Company pension contributions to defined contribution schemes
51,200
59,200
445,086
119,072
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
394,909
13,400
Company pension contributions to defined contribution schemes
51,200
625
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
54,562
16,388
Interest on the net defined benefit asset
3,000
3,000
Total income
57,562
19,388
BRENTWOOD COMMUNICATIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 25 -
9
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
413
28,430
Interest on invoice finance arrangements
12,019
24,449
Interest on finance leases and hire purchase contracts
-
1,260
Other interest
31,760
-
Total finance costs
44,192
54,139
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
(200,652)
583,668
Adjustments in respect of prior periods
2,270
(114,925)
Total current tax
(198,382)
468,743
Deferred tax
Origination and reversal of timing differences
(6,593)
146,274
Total tax (credit)/charge
(204,975)
615,017
The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
(Loss)/profit before taxation
(1,089,591)
2,562,306
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.00%)
(272,398)
563,707
Tax effect of expenses that are not deductible in determining taxable profit
66,914
8,323
Permanent capital allowances in excess of depreciation
-
11,642
Depreciation on assets not qualifying for tax allowances
(1,761)
Under/(over) provided in prior years
2,270
(114,925)
Deferred tax - origination and reversal of timing differences
146,270
Taxation (credit)/charge
(204,975)
615,017
BRENTWOOD COMMUNICATIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 26 -
11
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Interim paid
-
145,000
12
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 October 2023 and 30 September 2024
1,124,337
Amortisation and impairment
At 1 October 2023
300,855
Amortisation charged for the year
112,434
At 30 September 2024
413,289
Carrying amount
At 30 September 2024
711,048
At 30 September 2023
823,482
The company had no intangible fixed assets at 30 September 2024 or 30 September 2023.
BRENTWOOD COMMUNICATIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 27 -
13
Tangible fixed assets
Group
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 October 2023
264,409
2,972,940
299,163
13,589
120,052
3,670,153
Additions
10,484
212,578
14,478
15,161
252,701
Disposals
(184,805)
(128)
(184,933)
At 30 September 2024
274,893
3,000,713
313,513
28,750
120,052
3,737,921
Depreciation and impairment
At 1 October 2023
91,582
1,713,298
215,471
4,186
73,801
2,098,338
Depreciation charged in the year
17,430
137,393
14,093
4,398
11,564
184,878
Eliminated in respect of disposals
(106,379)
(106,379)
At 30 September 2024
109,012
1,744,312
229,564
8,584
85,365
2,176,837
Carrying amount
At 30 September 2024
165,881
1,256,401
83,949
20,166
34,687
1,561,084
At 30 September 2023
172,827
1,259,642
83,692
9,403
46,251
1,571,815
Company
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 October 2023
264,409
1,485,856
206,542
13,589
73,046
2,043,442
Additions
10,484
181,212
274
15,161
207,131
Disposals
(129,198)
(129,198)
At 30 September 2024
274,893
1,537,870
206,816
28,750
73,046
2,121,375
Depreciation and impairment
At 1 October 2023
91,582
673,980
147,354
4,186
31,957
949,059
Depreciation charged in the year
17,430
126,800
8,891
4,398
10,273
167,792
Eliminated in respect of disposals
(65,839)
(65,839)
At 30 September 2024
109,012
734,941
156,245
8,584
42,230
1,051,012
Carrying amount
At 30 September 2024
165,881
802,929
50,571
20,166
30,816
1,070,363
At 30 September 2023
172,827
811,876
59,188
9,403
41,089
1,094,383
BRENTWOOD COMMUNICATIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
13
Tangible fixed assets
(Continued)
- 28 -
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Group
Company
2024
2023
2024
2023
£
£
£
£
Motor vehicles
30,816
41,089
30,816
41,089
14
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
15
1,735,623
1,863,205
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 October 2023 and 30 September 2024
1,863,205
Impairment
At 1 October 2023
-
Impairment losses
127,582
At 30 September 2024
127,582
Carrying amount
At 30 September 2024
1,735,623
At 30 September 2023
1,863,205
As at 30 September 2024 the Company investment in Irish Radio Limited was impaired to nominal value. Since the purchase of this entity by the Group the accompanying trade has been hived into Brentwood Communications Limited. Any remaining trade within Irish Radio Limited is loss making and as such the investment is considered to be impaired.
BRENTWOOD COMMUNICATIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 29 -
15
Subsidiaries
Details of the company's subsidiaries at 30 September 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
CapCom Land Sea and Air Communications Ltd
14 The New Forest Centre, Chapel Lane, Totton, Southampton, Hampshire, SO40 9LA
Ordinary
100.00
Radio Links Communications Ltd
Eaton House Great North Road, Eaton Socon St Neots, Huntingdon, Cambridgeshire, PE19 8EG
Ordinary
100.00
Irish Radio Communcations Ltd
8 Naas Road Business Park, Muirfield Drive, Inchicore, Dublin, D12 ER80, Ireland
Ordinary
100.00
Onsite Communications Ltd
Eaton House Great North Road, Eaton Socon St Neots, Huntingdon, Cambridgeshire, PE19 8EG
Ordinary
100.00
16
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods
1,242,790
1,201,931
794,952
933,167
17
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,581,385
1,935,145
1,586,155
1,589,516
Corporation tax recoverable
201,712
200,652
Amounts owed by group undertakings
-
-
8,432
152,185
Other debtors
514,634
538,812
494,681
525,975
Prepayments and accrued income
559,950
356,094
606,018
232,811
2,857,681
2,830,051
2,895,938
2,500,487
BRENTWOOD COMMUNICATIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 30 -
18
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
20
2,383
22,227
Obligations under finance leases
21
3,836
19,362
3,836
19,362
Trade creditors
1,285,809
988,823
979,123
734,785
Amounts owed to group undertakings
561,050
609,756
Corporation tax payable
118,921
593,148
118,921
525,478
Other taxation and social security
297,208
246,410
148,623
108,077
Other creditors
189,843
429,599
162,122
408,262
Accruals and deferred income
1,493,707
939,840
1,182,848
727,567
3,391,707
3,239,409
3,156,523
3,133,287
19
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance leases
21
1,485
1,485
20
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
5
22,227
Bank overdrafts
2,378
2,383
22,227
-
-
Payable within one year
2,383
22,227
Bank loans and overdrafts are secured by a fixed and floating charge over all the property and undertakings of the company.
BRENTWOOD COMMUNICATIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 31 -
21
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
3,836
19,362
3,836
19,362
In two to five years
1,485
1,485
3,836
20,847
3,836
20,847
Finance lease obligations are secured against the underlying relevant asset.
22
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
379,150
384,158
Retirement benefit obligations
(1,901)
(316)
377,249
383,842
Liabilities
Liabilities
2024
2023
Company
£
£
Accelerated capital allowances
270,290
276,467
Retirement benefit obligations
(839)
792
269,451
277,259
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 October 2023
383,842
277,259
Credit to profit or loss
(6,593)
(7,808)
Liability at 30 September 2024
377,249
269,451
BRENTWOOD COMMUNICATIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 32 -
23
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2,600
2,600
2,600
2,600
Ordinary A shares of £1 each
50
50
50
50
Ordinary B shares of £1 each
50
50
50
50
2,700
2,700
2,700
2,700
24
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
55,969
202,518
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.
Defined benefit schemes
The group operates a defined benefit scheme for qualifying employees. Under the scheme the employees are entitled to retirement benefits based on final salary on attainment of a retirement age of 65. No other post retirement benefits are provided.
The most recent actuarial valuations of plan assets and the present value of the defined benefit obligation were carried out at 5th April 2024 by XPS Pensions (RL) Limited, Fellow of the Institute of Actuaries. The present value of the defined benefit obligation, the related current service cost and past service cost were measured using the projected unit credit method. Adjustments to the valuation at that date have been made based on the following assumptions (per annum):
2024
2023
Key assumptions
%
%
Discount rate
5.1
5.7
Expected rate of increase of pensions in payment
2.5
2.7
Expected rate of salary increases
3.0
3.2
Consumer price inflation
2.5
2.7
GMP earned before 06/04/1988
0.0
0.0
GMP increases earned on or after 06/04/1988
2.5
2.7
BRENTWOOD COMMUNICATIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
24
Retirement benefit schemes
(Continued)
- 33 -
Mortality assumptions
2024
2023
Assumed life expectations on retirement at age 65:
Years
Years
Retiring today
- Males
19.2
18.8
- Females
23.0
20.9
Retiring in 20 years
- Males
20.5
20.0
- Females
24.5
22.3
Group
2024
2023
Amounts recognised in the profit and loss account
£
£
Net interest on net defined benefit liability/(asset)
(3,000)
(3,000)
Restriction on net interest income credited to the income statement
20,000
20,000
Total costs
17,000
17,000
BRENTWOOD COMMUNICATIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
24
Retirement benefit schemes
(Continued)
- 34 -
Group
2024
2023
Amounts taken to other comprehensive income
£
£
Actual return on scheme assets
(44,000)
49,000
Less: calculated interest element
20,000
20,000
Return on scheme assets excluding interest income
(24,000)
69,000
Restriction on net interest income credited to the income statement
(20,000)
(20,000)
Actuarial changes related to obligations
56,000
(34,000)
Effect of changes in the amount of surplus that is not recoverable
7,000
4,000
Total costs
19,000
19,000
The amounts included in the balance sheet arising from obligations in respect of defined benefit plans are as follows:
2024
2023
Group
£
£
Present value of defined benefit obligations
354,000
299,000
Fair value of plan assets
(417,000)
(355,000)
Surplus in scheme
(63,000)
(56,000)
Effect of asset ceiling
63,000
56,000
Total liability recognised
-
-
Group
2024
Movements in the present value of defined benefit obligations
£
Liabilities at 1 October 2023
299,000
Benefits paid
(18,000)
Actuarial gains and losses
56,000
Interest cost
17,000
At 30 September 2024
354,000
BRENTWOOD COMMUNICATIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
24
Retirement benefit schemes
(Continued)
- 35 -
Group
2024
The defined benefit obligations arise from plans funded as follows:
£
Wholly unfunded obligations
-
Wholly or partly funded obligations
354,000
354,000
Group
2024
Movements in the fair value of plan assets
£
Fair value of assets at 1 October 2023
355,000
Interest income
20,000
Return on plan assets (excluding amounts included in net interest)
24,000
Benefits paid
(18,000)
Contributions by the employer
36,000
At 30 September 2024
417,000
The actual return on plan assets was a £44,000 gain (2023 - £49,000 loss).
Fair value of plan assets at the reporting period end
Group
2024
2023
£
£
Equity instruments
66,720
56,800
Debt instruments
229,350
216,550
Property
4,170
3,550
Cash
45,870
28,400
Other (Royal London Guarantee)
70,890
49,700
417,000
355,000
BRENTWOOD COMMUNICATIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 36 -
25
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
136,035
127,294
73,814
71,921
Between two and five years
235,566
118,775
180,953
39,757
371,601
246,069
254,767
111,678
26
Related party transactions
Transactions with related parties
Group
As at 30 September 2024 amounts owed from companies under common control totalled £nil (2023: £389,096). Sales in the year to companies under common control totalled £337,589 (2023: £421,814), purchases in the year from companies under common control totalled £332,012 (2023: £nil).
During the year, the Group made an interest free loan to a Director totalling £258,986 (2023: £nil). At 30 September 2024 the carried forward amount is £258,986 and is included within other debtors.
Company
In accordance with FRS102 the company has not disclosed transactions with wholly owned members of the group.
As at 30 September 2023 amounts owed from companies under common control totalled £389,096 (2022: £nil). Sales in the year to companies under common control totalled £421,814 (2022: £363,735).
During the year, the Company made an interest free loan to a Director totalling £258,986 (2023: £nil). At 30 September 2024 the carried forward amount is £258,986 and is included within other debtors.
27
Controlling party
The ultimate controlling party is J Miller for this and the preceding year, who has significant control over the company and has the ability to appoint or remove members of the board.
BRENTWOOD COMMUNICATIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 37 -
28
Prior period adjustment
Changes to the profit and loss account - group
As previously reported
Adjustment
As restated
Period ended 30 September 2023
£
£
£
Cost of sales
(13,697,399)
(612,445)
(14,309,844)
Administrative expenses
(3,647,934)
612,445
(3,035,489)
Profit after taxation
1,947,289
-
1,947,289
Notes to reconciliation
Payroll costs
It was identified that the classification of wages between cost of sales and administrative expenses in the prior year was incorrect, which has resulted in a prior period adjustment.
The result of the adjustment is to increase total payroll costs within cost of sales by £612,445 as at 30 September 2023 with a corresponding decrease in total payroll costs within administrative expenses. This adjustment has no impact on the profits or the total equity of the company and has lead to the group GP Margin decreasing from 31.3% to 28.2% as at 30 September 2023.
29
Analysis of changes in net funds - group
1 October 2023
Cash flows
30 September 2024
£
£
£
Cash at bank and in hand
1,976,887
(725,700)
1,251,187
Bank overdrafts
(2,378)
(2,378)
1,976,887
(728,078)
1,248,809
Borrowings excluding overdrafts
(22,227)
22,222
(5)
Obligations under finance leases
(20,847)
17,011
(3,836)
1,933,813
(688,845)
1,244,968
BRENTWOOD COMMUNICATIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 38 -
30
Cash absorbed by group operations
2024
2023
£
£
(Loss)/profit for the year after tax
(884,616)
1,922,289
Adjustments for:
Taxation (credited)/charged
(204,975)
615,017
Finance costs
44,192
54,139
Investment income
(57,562)
(20,388)
Gain on disposal of tangible fixed assets
(33,087)
(104,411)
Amortisation and impairment of intangible assets
112,434
112,434
Depreciation and impairment of tangible fixed assets
184,878
189,985
Pension scheme non-cash movement
(36,000)
(146,000)
Movements in working capital:
Increase in stocks
(40,859)
(392,263)
Increase in debtors
(60,133)
(293,642)
Increase/(decrease) in creditors
661,895
(3,789,169)
Cash absorbed by operations
(313,833)
(1,852,009)
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