| REGISTERED NUMBER: |
| STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
| FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31ST OCTOBER 2024 |
| FOR |
| CLEARANSWER CALL CENTRES LIMITED |
| REGISTERED NUMBER: |
| STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
| FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31ST OCTOBER 2024 |
| FOR |
| CLEARANSWER CALL CENTRES LIMITED |
| CLEARANSWER CALL CENTRES LIMITED (REGISTERED NUMBER: 04549385) |
| CONTENTS OF THE FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31ST OCTOBER 2024 |
| Page |
| Company Information | 1 |
| Strategic Report | 2 |
| Report of the Directors | 4 |
| Report of the Independent Auditors | 6 |
| Income Statement | 9 |
| Other Comprehensive Income | 10 |
| Balance Sheet | 11 |
| Statement of Changes in Equity | 12 |
| Cash Flow Statement | 13 |
| Notes to the Cash Flow Statement | 14 |
| Notes to the Financial Statements | 15 |
| CLEARANSWER CALL CENTRES LIMITED |
| COMPANY INFORMATION |
| FOR THE YEAR ENDED 31ST OCTOBER 2024 |
| DIRECTORS: |
| SECRETARY: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| Chartered Accountants |
| & Registered Auditors |
| 162-164 High Street |
| Rayleigh |
| Essex |
| SS6 7BS |
| CLEARANSWER CALL CENTRES LIMITED (REGISTERED NUMBER: 04549385) |
| STRATEGIC REPORT |
| FOR THE YEAR ENDED 31ST OCTOBER 2024 |
| The directors present their strategic report for the year ended 31st October 2024. |
| REVIEW OF BUSINESS |
| Clearanswer Call Centres Limited operates call centres in the North East of England, principally servicing blue chip clients in the telecommunications sector. |
| The directors are delighted to report that services provided under the contracts secured in 2023 have grown during this year, resulting in a substantial increase in turnover and profitability. |
| Due to this additional work, the company has expanded its workforce of call centre agents. In order to accommodate these staff, the company has refurbished the call centre premises based in Hull to relocate the reception and HR areas and create a new 120 seat floor. The company secured a 50% contribution to the cost of these works from the Levelling Up Funding Grant Scheme operated by Kingston Upon Hull City Council. |
| Sales levels and margins have been maintained since the year end, and the directors are therefore confident the current year will also show very healthy trading results. |
| The Key Performance Indicators are considered to be: |
| Sales £25m (2023 - £18.9m) |
| Gross profit £6.4m (2023 - £4.4m) Gross margin 25.7% (2023 23.1%) |
| Operating profit £3.7m (2023 - £2.1m) |
| CLEARANSWER CALL CENTRES LIMITED (REGISTERED NUMBER: 04549385) |
| STRATEGIC REPORT |
| FOR THE YEAR ENDED 31ST OCTOBER 2024 |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| The principal risks and uncertainties arise from the current economic outlook, and in particular inflation and the rising cost of living. |
| The external commercial environment is expected to remain competitive. |
| However, the company's excellent working relationships with clients and staff enable these risks and uncertainties to be mitigated. |
| Following the social distancing requirements and lockdowns arising from Covid-19, the company introduced a number of safety measures in its offices and also facilitated working from home solutions. Whilst the impact of Covid-19 has declined, these measures will enable the company to continue to trade efficiently as well as retain and attract new staff. |
| Finance Risk |
| The company's operations expose it to a variety of financial risks that include the effect of changes in liquidity risk and interest rate risk. The company has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the company by monitoring levels of debt finance and the related finance costs. |
| Given the size of the company, the directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the board. The policies set by the board of directors are implemented by the company's finance department. |
| Liquidity Risk |
| The company has a robust and target-based credit control process to ensure debts are collected within agreed terms. |
| Whilst cash generation from operations is positive, the company has access to a debt factoring facility in the event that further working capital funding is required. |
| Interest rate cash flow risk |
| The company only has interest bearing liabilities. |
| Price risk |
| The company is exposed to commodity price risk as a result of its operations. However, given the size of the company's |
| operations, the costs of managing exposure to commodity price risk exceed any potential benefits. The directors will |
| revisit the appropriateness of this policy should the company's operations change in size or nature. |
| FUTURE DEVELOPMENTS |
| The company continues to invest in new technology, which is essential to provide an excellent end customer service and remain competitive in the current environment. |
| The increases in national minimum wage and national insurance contributions coming into effect in April 2025 will have a substantial impact on the company's payroll costs. However, contract terms are currently being renegotiated, and the company is confident these extra costs will be offset by higher fees. |
| In addition, the company is continuing to bid for work with new customers to expand its current customer base. |
| ON BEHALF OF THE BOARD: |
| CLEARANSWER CALL CENTRES LIMITED (REGISTERED NUMBER: 04549385) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 31ST OCTOBER 2024 |
| The directors present their report with the financial statements of the company for the year ended 31st October 2024. |
| DIVIDENDS |
| The total distribution of dividends for the year ended 31st October 2024 will be £ |
| DIRECTORS |
| The directors shown below have held office during the whole of the period from 1st November 2023 to the date of this report. |
| FINANCIAL INSTRUMENTS |
| Financial risk management |
| The company's operations expose it to a variety of financial risks that include the effect of changes in liquidity risk and interest rate risk. The company has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the company by monitoring levels of debt finance and the related finance costs. |
| Given the size of the company, the directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the board. The policies set by the board of directors are implemented by the company's finance department. |
| Liquidity risk |
| The company actively maintains a mixture of short-term debt finance that is designed to ensure the company has sufficient available funds for operations and planned extensions. |
| Interest rate risk |
| The company only has interest bearing liabilities. |
| Credit risk |
| The company has implemented policies that require appropriate credit checks on potential customers before sales are made. The amount of exposure to individual customers is subject to a limit, which is reassessed regularly by the board. |
| Price risk |
| The company is exposed to commodity price risk as a result of its operations. However, given the size of the company's operations, the costs of managing exposure to commodity price risk exceed any potential benefits. The directors will revisit the appropriateness of this policy should the company's operations change in size or nature. |
| DISABLED EMPLOYEES |
| Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. |
| In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. |
| It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees. |
| CLEARANSWER CALL CENTRES LIMITED (REGISTERED NUMBER: 04549385) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 31ST OCTOBER 2024 |
| ENGAGEMENT WITH EMPLOYEES |
| The company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests. |
| Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance. |
| The company operates an Enterprise Management Incentive scheme to encourage the involvement of key employees in the company's performance. |
| STATEMENT OF DIRECTORS' RESPONSIBILITIES |
| The directors are responsible for preparing the Strategic Report, the Report of the Directors 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. |
| STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
| So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
| AUDITORS |
| The auditors, ESW Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
| ON BEHALF OF THE BOARD: |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| CLEARANSWER CALL CENTRES LIMITED |
| Opinion |
| We have audited the financial statements of Clearanswer Call Centres Limited (the 'company') for the year ended 31st October 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of 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 company's affairs as at 31st October 2024 and of its profit for the year then ended; |
| - | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
| - | have been prepared in accordance with the requirements of the Companies Act 2006. |
| Basis for opinion |
| We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' 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 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. |
| Other information |
| The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
| 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. |
| In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
| Opinions on other matters prescribed by the Companies Act 2006 |
| In our opinion, based on the work undertaken in the course of the audit: |
| - | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
| - | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| CLEARANSWER CALL CENTRES LIMITED |
| Matters on which we are required to report by exception |
| 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 Report of the Directors. |
| We have nothing to report in respect of the following matters where 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 Statement of Directors' Responsibilities set out on page five, 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 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. |
| Auditors' 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 a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
| The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
| The company is subject to numerous laws and regulations that could reasonably be expected to have a material effect on the financial statements. From our general commercial experience and discussion with management, we identified the following laws and regulations; Ofcom regulations, employment laws and regulations, health and safety, employment taxes, financial reporting and distributable profits. |
| Our audit procedures to address potential fraud and non-compliance with laws and regulations included: |
| - Enquiry of management regarding compliance with relevant laws and regulations, and any litigation or claims |
| - Review of legal correspondence and documentation |
| - Performance of analytical review to identify unexpected account movements and investigation of variances |
| - Assessment of potential management override by review of journals and unusual accounting entries |
| - Inspection of third-party supporting documentation |
| - Identification and review of transactions with related parties |
| - Review of year end cut-off and after date transactions |
| Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
| A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| CLEARANSWER CALL CENTRES LIMITED |
| Use of our report |
| This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors 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. |
| for and on behalf of |
| Chartered Accountants |
| & Registered Auditors |
| 162-164 High Street |
| Rayleigh |
| Essex |
| SS6 7BS |
| CLEARANSWER CALL CENTRES LIMITED (REGISTERED NUMBER: 04549385) |
| INCOME STATEMENT |
| FOR THE YEAR ENDED 31ST OCTOBER 2024 |
| 2024 | 2023 |
| Notes | £ | £ |
| TURNOVER | 3 |
| Cost of sales | ( |
) | ( |
) |
| GROSS PROFIT |
| Administrative expenses | ( |
) | ( |
) |
| 3,614,817 | 2,070,070 |
| Other operating income |
| OPERATING PROFIT | 5 |
| Interest receivable and similar income |
| 3,673,630 | 2,075,801 |
| Interest payable and similar expenses | 6 | ( |
) | ( |
) |
| PROFIT BEFORE TAXATION |
| Tax on profit | 7 | ( |
) | ( |
) |
| PROFIT FOR THE FINANCIAL YEAR |
| CLEARANSWER CALL CENTRES LIMITED (REGISTERED NUMBER: 04549385) |
| OTHER COMPREHENSIVE INCOME |
| FOR THE YEAR ENDED 31ST OCTOBER 2024 |
| 2024 | 2023 |
| Notes | £ | £ |
| PROFIT FOR THE YEAR |
| OTHER COMPREHENSIVE INCOME | - | - |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
| CLEARANSWER CALL CENTRES LIMITED (REGISTERED NUMBER: 04549385) |
| BALANCE SHEET |
| 31ST OCTOBER 2024 |
| 2024 | 2023 |
| Notes | £ | £ |
| FIXED ASSETS |
| Tangible assets | 9 |
| Investments | 10 |
| CURRENT ASSETS |
| Debtors | 11 |
| Cash at bank and in hand |
| CREDITORS |
| Amounts falling due within one year | 12 | ( |
) | ( |
) |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| PROVISIONS FOR LIABILITIES | 15 | ( |
) |
| NET ASSETS |
| CAPITAL AND RESERVES |
| Called up share capital | 16 |
| Share based payments reserve | 17 |
| Non-distributable retained |
| earnings | 17 |
| Retained earnings | 17 |
| SHAREHOLDERS' FUNDS |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| CLEARANSWER CALL CENTRES LIMITED (REGISTERED NUMBER: 04549385) |
| STATEMENT OF CHANGES IN EQUITY |
| FOR THE YEAR ENDED 31ST OCTOBER 2024 |
| Share |
| Called up | based | Non-distributable |
| share | Retained | payments | retained | Total |
| capital | earnings | reserve | earnings | equity |
| £ | £ | £ | £ | £ |
| Balance at 1st November 2022 |
| Changes in equity |
| Dividends | - | ( |
) | - | - | ( |
) |
| Total comprehensive income | - |
| Balance at 31st October 2023 |
| Changes in equity |
| Dividends | - | ( |
) | - | - | ( |
) |
| Total comprehensive income | - | ( |
) |
| Balance at 31st October 2024 |
| CLEARANSWER CALL CENTRES LIMITED (REGISTERED NUMBER: 04549385) |
| CASH FLOW STATEMENT |
| FOR THE YEAR ENDED 31ST OCTOBER 2024 |
| 2024 | 2023 |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 |
| Finance costs paid | (23,250 | ) | (32,109 | ) |
| Tax paid | ( |
) |
| Taxation refund |
| Net cash from operating activities |
| Cash flows from investing activities |
| Purchase of tangible fixed assets | ( |
) | ( |
) |
| Purchase of fixed asset investments | (100 | ) | - |
| Interest received |
| Net cash from investing activities | ( |
) | ( |
) |
| Cash flows from financing activities |
| Amount introduced by directors | 50,892 | - |
| Equity dividends paid | ( |
) | ( |
) |
| Net cash from financing activities | ( |
) | ( |
) |
| (Decrease)/increase in cash and cash equivalents | ( |
) |
| Cash and cash equivalents at beginning of year |
2 |
124,443 |
| Cash and cash equivalents at end of year | 2 | 205,519 | 212,132 |
| CLEARANSWER CALL CENTRES LIMITED (REGISTERED NUMBER: 04549385) |
| NOTES TO THE CASH FLOW STATEMENT |
| FOR THE YEAR ENDED 31ST OCTOBER 2024 |
| 1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
| 2024 | 2023 |
| £ | £ |
| Profit before taxation |
| Depreciation charges |
| Loss on disposal of fixed assets |
| Finance costs | 23,250 | 32,109 |
| Finance income | (11 | ) | (175 | ) |
| 3,919,549 | 2,191,338 |
| Increase in trade and other debtors | ( |
) | ( |
) |
| Increase/(decrease) in trade and other creditors | ( |
) |
| Cash generated from operations |
| 2. | CASH AND CASH EQUIVALENTS |
| The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
| Year ended 31st October 2024 |
| 31.10.24 | 1.11.23 |
| £ | £ |
| Cash and cash equivalents | 205,519 | 212,132 |
| Year ended 31st October 2023 |
| 31.10.23 | 1.11.22 |
| £ | £ |
| Cash and cash equivalents | 212,132 | 124,443 |
| 3. | ANALYSIS OF CHANGES IN NET FUNDS |
| At 1.11.23 | Cash flow | At 31.10.24 |
| £ | £ | £ |
| Net cash |
| Cash at bank and in hand | 212,132 | (6,613 | ) | 205,519 |
| 212,132 | ( |
) | 205,519 |
| Total | 212,132 | (6,613 | ) | 205,519 |
| CLEARANSWER CALL CENTRES LIMITED (REGISTERED NUMBER: 04549385) |
| NOTES TO THE FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31ST OCTOBER 2024 |
| 1. | STATUTORY INFORMATION |
| Clearanswer Call Centres Limited is a |
| 2. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| Turnover |
| Turnover is recognised at the fair value of the consideration received or receivable for goods and services |
| provided in the normal course of business and is shown net of VAT and discounts. |
| Rendering of services: |
| Turnover from rendering of services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied: |
| 1. the amount of turnover can be measured reliably; |
| 2. it is probable that the Company will receive the consideration due under the contract; |
| 3. the stage of completion of the contract at the end of the reporting period can be measured reliably; and |
| 4. the costs incurred and the costs to complete the contract can be measured reliably. |
| Tangible fixed assets |
| Short leasehold | - |
| Improvements to property | - |
| Fixtures and fittings | - |
| Computer equipment | - |
| 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 and loss. |
| Impairment of fixed assets |
| At each reporting period end date, the company reviews the carrying amounts of its tangible 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. |
| Government grants |
| Government grants are recognised at fair value when there is reasonable assurance that the company will comply with the conditions attached to them and that the grants will be received. |
| Government grants related to assets, including those for the purchase of property, plant, and equipment, are recognised in the balance sheet as deferred income. The grant is then credited to profit or loss on a systematic basis over the useful life of the asset in the same periods in which the depreciation expense on the asset is recognised. |
| Where governments grants require the grant not to be included under general funds, the grant will be included within non-distributable retained earnings. |
| Investments in subsidiaries |
| Investments in subsidiary undertakings are recognised at cost. |
| CLEARANSWER CALL CENTRES LIMITED (REGISTERED NUMBER: 04549385) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31ST OCTOBER 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| 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 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. |
| Basic financial assets |
| Basic financial assets, which include trade and other 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. |
| 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 and 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 company 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 party. |
| Classification of financial liabilities |
| Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. |
| Basic financial liabilities |
| Basic financial liabilities, including trade and other creditors and bank loans, 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. |
| Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
| Derecognition of financial liabilities |
| Financial liabilities are derecognised when, and only when, the company's contractual obligations are discharged, cancelled, or they expire. |
| CLEARANSWER CALL CENTRES LIMITED (REGISTERED NUMBER: 04549385) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31ST OCTOBER 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Equity instruments |
| Equity instruments issued by the company are recorded at the fair value of 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. |
| Taxation |
| Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
| Current or deferred taxation assets and liabilities are not discounted. |
| Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
| Deferred tax |
| Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
| Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
| Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
| Pension costs and other post-retirement benefits |
| The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
| 3. | TURNOVER |
| The turnover and profit before taxation are attributable to the one principal activity of the company. |
| An analysis of turnover by class of business is given below: |
| 2024 | 2023 |
| £ | £ |
| An analysis of turnover by geographical market is given below: |
| 2024 | 2023 |
| £ | £ |
| United Kingdom |
| CLEARANSWER CALL CENTRES LIMITED (REGISTERED NUMBER: 04549385) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31ST OCTOBER 2024 |
| 4. | EMPLOYEES AND DIRECTORS |
| 2024 | 2023 |
| £ | £ |
| Wages and salaries |
| Social security costs |
| Other pension costs |
| The average number of employees during the year was as follows: |
| 2024 | 2023 |
| Management | 5 | 5 |
| Administration | 6 | 6 |
| Operations | 871 | 721 |
| 2024 | 2023 |
| £ | £ |
| Directors' remuneration | 55,633 | 45,480 |
| Directors' pension contribution | 131,000 | 108,000 |
| 153,480 | 153,480 |
| The of directors to whom retirement benefits were accruing was as follows: |
| Money purchase schemes | 3 | 2 |
| 5. | OPERATING PROFIT |
| The operating profit is stated after charging/(crediting): |
| 2024 | 2023 |
| £ | £ |
| Depreciation - owned assets |
| Loss on disposal of fixed assets |
| Auditors' remuneration |
| Auditors' remuneration for non audit work |
| Government grants | ( |
) |
| 6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
| 2024 | 2023 |
| £ | £ |
| Corporation tax interest |
| Penalties and fines |
| Factoring charges |
| CLEARANSWER CALL CENTRES LIMITED (REGISTERED NUMBER: 04549385) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31ST OCTOBER 2024 |
| 7. | TAXATION |
| Analysis of the tax charge |
| The tax charge on the profit for the year was as follows: |
| 2024 | 2023 |
| £ | £ |
| Current tax: |
| UK corporation tax |
| Deferred tax |
| Tax on profit |
| Reconciliation of total tax charge included in profit and loss |
| The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
| 2024 | 2023 |
| £ | £ |
| Profit before tax |
| Profit multiplied by the standard rate of corporation tax in the UK of (2023 - |
| Effects of: |
| Expenses not deductible for tax purposes |
| Capital allowances in excess of depreciation | ( |
) | - |
| Depreciation in excess of capital allowances | - |
| Utilisation of tax losses | ( |
) |
| Deferred tax movement | 139,110 | 125,844 |
| Change in tax rate | - | (43,208 | ) |
| Total tax charge | 1,033,953 | 517,817 |
| 8. | DIVIDENDS |
| 2024 | 2023 |
| £ | £ |
| A Ordinary shares of £1 each |
| Interim |
| B Ordinary shares of £1 each |
| Interim |
| C Ordinary shares of £1 each |
| Interim |
| D Ordinary shares of £1 each |
| Interim | 169,000 | 91,000 |
| E Ordinary shares of £1 each |
| Interim | 84,600 | 85,717 |
| CLEARANSWER CALL CENTRES LIMITED (REGISTERED NUMBER: 04549385) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31ST OCTOBER 2024 |
| 9. | TANGIBLE FIXED ASSETS |
| Improvements | Fixtures |
| Short | to | and | Computer |
| leasehold | property | fittings | equipment | Totals |
| £ | £ | £ | £ | £ |
| COST |
| At 1st November 2023 |
| Additions |
| Disposals | ( |
) | ( |
) | ( |
) |
| At 31st October 2024 |
| DEPRECIATION |
| At 1st November 2023 |
| Charge for year |
| Eliminated on disposal | ( |
) | ( |
) | ( |
) |
| At 31st October 2024 |
| NET BOOK VALUE |
| At 31st October 2024 |
| At 31st October 2023 |
| 10. | FIXED ASSET INVESTMENTS |
| Shares in |
| group |
| undertakings |
| £ |
| COST |
| Additions |
| At 31st October 2024 |
| NET BOOK VALUE |
| At 31st October 2024 |
| The company's investments at the Balance Sheet date in the share capital of companies include the following: |
| Registered office: 162-164 High Street, Rayleigh, Essex, SS6 7BS |
| Nature of business: |
| % |
| Class of shares: | holding |
| Clear Insurance Limited has not been consolidated as their inclusion is not material (both in quantitative and qualitative terms) to giving a true and fair view. The aggregate capital and reserves and result for the year are as follows: |
Net liabilities | Profit / (loss for the year | ) |
| £ | £ |
| Clear Insurance Limited | (162 | ) | - |
| CLEARANSWER CALL CENTRES LIMITED (REGISTERED NUMBER: 04549385) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31ST OCTOBER 2024 |
| 11. | DEBTORS |
| 2024 | 2023 |
| £ | £ |
| Amounts falling due within one year: |
| Trade debtors |
| Amounts owed by group undertakings |
| Other debtors |
| Prepayments and accrued income |
| Amounts falling due after more than one year: |
| Other debtors |
| Aggregate amounts |
| 12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2024 | 2023 |
| £ | £ |
| Trade creditors |
| Tax |
| Social security and other taxes |
| VAT | 1,037,953 | 613,166 |
| Other creditors |
| Pension Control | 43,243 | 35,298 |
| Factoring account | 579,073 | 839,187 |
| Directors' current accounts | 51,139 | 247 |
| Accruals and deferred income |
| 13. | LEASING AGREEMENTS |
| Minimum lease payments under non-cancellable operating leases fall due as follows: |
| 2024 | 2023 |
| £ | £ |
| Within one year |
| Between one and five years |
| CLEARANSWER CALL CENTRES LIMITED (REGISTERED NUMBER: 04549385) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31ST OCTOBER 2024 |
| 14. | SECURED DEBTS |
| The following secured debts are included within creditors: |
| 2024 | 2023 |
| £ | £ |
| Factoring account | 579,073 | 839,187 |
| Assets acquired by way of hire purchase and finance lease are secured by those agreements. |
| A fixed and floating charge dated 4 July 2016 was registered covering all property or undertaking of the company registered to RBS Invoice Finance Limited. |
| 15. | PROVISIONS FOR LIABILITIES |
| 2024 | 2023 |
| £ | £ |
| Deferred tax | 121,035 | - |
| Deferred |
| tax |
| £ |
| Provided during year |
| Balance at 31st October 2024 |
| 16. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 2024 | 2023 |
| value: | £ | £ |
| Ordinary | 2p | 200 | 200 |
| A Ordinary | £1 | 9 | 9 |
| B Ordinary | £1 | 9 | 9 |
| C Ordinary | £1 | 9 | 9 |
| 9 | D Ordinary | £1 | 9 | 9 |
| 4 | E Ordinary | £1 | 4 | 4 |
| 240 | 240 |
| The holders of all classes of Ordinary shares shall have the right to receive notice of and attend and vote and speak at any general meeting of the company and shall be entitled to vote on any written resolution of the company. The holders of all classes of Ordinary shares shall be entitled pari passu to dividend payments or any distribution arising from the winding up of the company. |
| CLEARANSWER CALL CENTRES LIMITED (REGISTERED NUMBER: 04549385) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31ST OCTOBER 2024 |
| 17. | RESERVES |
| Share |
| based | Non-distributable |
| Retained | payments | retained |
| earnings | reserve | earnings | Totals |
| £ | £ | £ | £ |
| At 1st November 2023 | 3,130,027 |
| Profit for the year |
| Dividends | ( |
) | ( |
) |
| Movement in period | (44,601 | ) | (180,000 | ) | 224,601 | - |
| At 31st October 2024 | 4,637,654 |
| 18. | RELATED PARTY DISCLOSURES |
| The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
| The balance sheet includes balances with companies which have common directors and shareholders in Clearanswer Call Centres Limited; |
| 2024 | 2023 |
| £ | £ |
| MAPS Trading Limited | Other debtors | 63,266 | 63,266 |
| Prize Draw Operations Limited | Other debtors | 15,751 | 14,841 |
| 19. | ULTIMATE CONTROLLING PARTY |
| There is no overall controlling party. |
| 20. | SHARE-BASED PAYMENT TRANSACTIONS |
| In November 2016, the company issued Enterprise Management Incentive Share Options to key employees, of which one staff members is still eligible. |
| The remaining Share Options were granted for a maximum of 100 ordinary shares of £0.02 each, vesting evenly over four years from the date of grant, with an exercise price of £600 per share. |
| An expense of £Nil (2022 £Nil) has been recognised in the Profit and Loss Account for the year, with the total carrying amount of £60,000 at 31 October 2024 credited to a Share-Based Payment Reserve |