Company registration number 10552186 (England and Wales)
XCELANT LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
XCELANT LIMITED
COMPANY INFORMATION
DIRECTOR
Mr A Fry
COMPANY NUMBER
10552186
REGISTERED OFFICE
Bounty House
Norman Close
ROCHESTER
Kent
ME2 2NF
AUDITOR
Kilsby & Williams LLP
Cedar House
Hazell Drive
Newport
South Wales
NP10 8FY
XCELANT LIMITED
CONTENTS
Page
Strategic report
1 - 3
Director's report
4 - 6
Independent auditor's report
7 - 11
Group statement of comprehensive income
12
Group balance sheet
13 - 14
Company balance sheet
15
Group statement of changes in equity
16
Company statement of changes in equity
17
Group statement of cash flows
18
Notes to the financial statements
19 - 40
XCELANT LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -
The director presents the strategic report for the year ended 31 December 2024.
REVIEW OF THE BUSINESS
Xcelant Limited Group is one of the UK's leading manufacturers of acoustic treatments, specialist thermal insulation products and underfloor heating components and has been operating for over 24 years.
The Group operates from three sites. Manufacturing, distribution and accounts are located at a head-office in Rochester, Kent, sales processing, and technical support from a site in Newport, South Wales and marketing and R&D are coordinated from a facility in Poole, Dorset.
The Group offers its extensive range of high-quality products via a nationwide network of specialist distributers and builders' merchants. Strict management of costs, continual focus of production efficiencies and unrivalled customer services are the primary reasons for the Company's prolonged success.
To maintain margin expectations, the vast majority of the Group's products are supported by third party accreditation, which in turn is reinforced by the Group utilising ISO 9001 as a management improvement tool and ISO 14001 environmental management system.
PRINCIPAL RISKS AND UNCERTAINTIES
2024 was seen as a disappointing year for the Group. However, the years performance is seen as a general reflection of the market conditions as opposed to anything unique to the company’s performance.
The effect of Brexit is still very much apparent – low static FX rates combined with higher administration and service costs – which has now become the norm. However, the reduction in performance experienced throughout 2024 was a continuing of performance experienced in Q3 and Q4, 2023 where domestic matters - largely borne from high interest rates affecting borrowing cost in terms of mortgages for the end purchaser, or development loan costs for the contractors as they finance the build – have taken a strong hold. The result is buildings have become more expensive to both construct and purchase (in repayment costs). The nett result is a slowdown in the market whilst it tries to adjust to the changes. Interest rates during the year fluctuated between 5.25% and 4.75% well above the market average for the decade prior at 0.75%. The result of which is a flatlining, low-market appetite for newbuild properties where the majority of the businesses products are utilised.
XCELANT LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
KEY PERFORMANCE INDICATORS
The Group monitors performance on a regular basis with key performance indications such as:
- Monthly sales compared to budget.
- Customer monthly sales performance compared to budget and previous periods.
- Transportation costs and consignment consolidation effectiveness.
2024
2023
£'000
£'000
Turnover
18,382
21,210
Gross profit
8,572
9,634
Gross profit (%)
46.63%
45.42%
The financial performance was a result of a number of factors including:
- Strict controls of purchasing, manufacturing processes and flexibility in pricing.
- Strong focus on specification of high-end value products by the sales team.
- Continual targeted marketing campaigns.
- Continued normality in supply chain products (post Covid disruptions).
- Adaptation to new working environment (more electronic meetings) to reflect changes.
- Introduction of new sales analysis software hosted on unique internally developed operating system.
The Group continually assess production practices, investing in automation and additional production capacity to ensure maximum efficiency and yields.
OUTLOOK
The Group held a comprehensive business review in Q4 and implemented several processes, actions and investments. The Group continues to maintain a strong balance sheet and is well positioned to manage market disruption. Going forward the Group's strict financial controls, strong brand presence and its ability to adapt quickly to market pressures will enable it to weather any unforeseen circumstances.
The main risk moving forward is the affordability and the cost to construct domestic dwellings. The consensus is that the market will continue to flatline in the short term as the market continues to adjust to circumstances not really experienced in the past 15 years or so in terms of borrowing costs. Furthermore, a change in Government, with increased taxes has squeezed the markets even further. A reduction in market size will only but increase levels of competition. This oversupply will more than likely result in reduced selling prices which will further accelerate the reduction in turnover and unless appropriate actions are taken, a reduction in margins. Stability, instilled market confidence and ultimately lower interest rates are required to level-off and ultimately reverse this trend.
Investment in further automation will continue to help mitigate against recruitment issues. Furthermore, the Group will continue to make investments over the coming years to ensure it continues to be at the forefront of innovation, including introduction of AI. In addition, the Group completed its first acquisition, purchasing a smaller (circa £1.5m) business which operates in the underfloor heating market. The aim being to increase market share and help stabilise the reduction in turnover experienced over the past 18 months, with the ultimate goal of growing all businesses back to a position of turnover growth in the short term.
XCELANT LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
Mr A Fry
Director
28 July 2025
XCELANT LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
The director presents his annual report and financial statements for the year ended 31 December 2024.
PRINCIPAL ACTIVITIES
The principal activity of the company and group continued to be that of a manufacturer of thermal and acoustic insulation product and systems.
RESULTS AND DIVIDENDS
The results for the year are set out on page 12.
Ordinary dividends were paid amounting to £2,926,563. The director does not recommend payment of a further dividend.
DIRECTOR
The director who held office during the year and up to the date of signature of the financial statements was as follows:
Mr A Fry
FINANCIAL INSTRUMENTS
The Company's principal financial instruments comprise of bank accounts, trade debtors and trade creditors. The purpose of these instruments is to raise funds and finance the Company's operations. Due to the nature of the financial instruments used by the Company there is no exposure to price risk. The Company's approach to managing other risks applicable to the financial instruments is shown below.
In respect of bank balances the liquidity risk is managed by ensuring debtors are collected in accordance with their terms.
Trade debtors are managed in respect of credit and cash flow risk by internal policies concerning the credit offered to customers and regular monitoring of amounts outstanding.
Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet obligations as they fall due.
XCELANT LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 5 -
STATEMENT OF DIRECTOR'S RESPONSIBILITIES
The director is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
STRATEGIC REPORT
The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.
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.
MEDIUM-SIZED COMPANIES EXEMPTION
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
XCELANT LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 6 -
On behalf of the board
Mr A Fry
Director
28 July 2025
XCELANT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF XCELANT LIMITED
- 7 -
Opinion
We have audited the financial statements of Xcelant Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the group's and the parent company's affairs as at 31 December 2024 and of the group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.
XCELANT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF XCELANT LIMITED
- 8 -
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
The information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
The strategic report and the director's report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
XCELANT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF XCELANT LIMITED
- 9 -
Responsibilities of director
As explained more fully in the director's responsibilities statement, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the director is responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the parent company or to cease operations, or has no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
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 gained an understanding of the legal and regulatory framework applicable to the group and parent company and the industry in which it operates, and considered the risk of acts by the group and parent company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management and enquiries of legal counsel. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
XCELANT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF XCELANT LIMITED
- 10 -
•
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
•
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.
•
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
•
Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group's or the parent company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the company to cease to continue as a going concern.
•
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
•
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
XCELANT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF XCELANT LIMITED
- 11 -
Ataf Salim
Senior Statutory Auditor
For and on behalf of
Kilsby & Williams LLP
Chartered accountants & statutory auditor
Cedar House
Hazell Drive
Newport
South Wales
NP10 8FY
28 July 2025
XCELANT LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
2024
2023
Notes
£
£
TURNOVER
3
18,382,419
21,209,936
Cost of sales
(9,810,066)
(11,575,657)
GROSS PROFIT
8,572,353
9,634,279
Administrative expenses
(4,490,373)
(3,834,824)
Other operating income
340,980
36,894
OPERATING PROFIT
4
4,422,960
5,836,349
Interest receivable and similar income
7
278,831
237,406
Interest payable and similar expenses
8
(3,715)
PROFIT BEFORE TAXATION
4,701,791
6,070,040
Tax on profit
9
(1,234,966)
(1,440,236)
PROFIT FOR THE FINANCIAL YEAR
3,466,825
4,629,804
Profit for the financial year is attributable to:
- Owners of the parent company
3,466,829
4,629,932
- Non-controlling interests
(4)
(128)
3,466,825
4,629,804
Total comprehensive income for the year is attributable to:
- Owners of the parent company
3,466,829
4,629,932
- Non-controlling interests
(4)
(128)
3,466,825
4,629,804
XCELANT LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 13 -
2024
2023
Notes
£
£
FIXED ASSETS
Goodwill
11
932,555
Other intangible assets
11
170,245
Total intangible assets
1,102,800
Tangible assets
12
5,090,322
5,161,103
6,193,122
5,161,103
CURRENT ASSETS
Stocks
17
1,163,847
1,132,265
Debtors
18
3,459,291
3,164,053
Cash at bank and in hand
7,394,355
8,553,972
12,017,493
12,850,290
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
19
(1,856,161)
(2,208,183)
NET CURRENT ASSETS
10,161,332
10,642,107
TOTAL ASSETS LESS CURRENT LIABILITIES
16,354,454
15,803,210
PROVISIONS FOR LIABILITIES
Deferred tax liability
20
(323,964)
(312,982)
NET ASSETS
16,030,490
15,490,228
CAPITAL AND RESERVES
Called up share capital
22
60
60
Profit and loss reserves
16,013,781
15,473,515
EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT COMPANY
16,013,841
15,473,575
NON-CONTROLLING INTERESTS
16,649
16,653
TOTAL EQUITY
16,030,490
15,490,228
These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.
XCELANT LIMITED
GROUP BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2024
31 December 2024
- 14 -
The financial statements were approved and signed by the director and authorised for issue on 28 July 2025
28 July 2025
Mr A Fry
Director
Company registration number 10552186 (England and Wales)
XCELANT LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2024
31 December 2024
- 15 -
2024
2023
Notes
£
£
FIXED ASSETS
Tangible assets
12
315,825
301,375
Investment property
13
4,334,128
4,332,075
Investments
14
3,735,529
80,001
8,385,482
4,713,451
CURRENT ASSETS
Debtors
18
8,557
285,660
Cash at bank and in hand
1,812,539
820,307
1,821,096
1,105,967
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
19
(3,814,636)
(327,935)
NET CURRENT (LIABILITIES)/ASSETS
(1,993,540)
778,032
TOTAL ASSETS LESS CURRENT LIABILITIES
6,391,942
5,491,483
PROVISIONS FOR LIABILITIES
Deferred tax liability
20
(250,699)
(239,102)
NET ASSETS
6,141,243
5,252,381
CAPITAL AND RESERVES
Called up share capital
22
60
60
Profit and loss reserves
6,141,183
5,252,321
TOTAL EQUITY
6,141,243
5,252,381
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £3,815,424 (2023 - £5,068,038 profit).
The financial statements were approved and signed by the director and authorised for issue on 28 July 2025
28 July 2025
Mr A Fry
Director
Company registration number 10552186 (England and Wales)
XCELANT LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 16 -
Share capital
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
BALANCE AT 1 JANUARY 2023
60
15,089,239
15,089,299
16,781
15,106,080
YEAR ENDED 31 DECEMBER 2023:
Profit and total comprehensive income
-
4,629,932
4,629,932
(128)
4,629,804
Dividends
10
-
(4,245,656)
(4,245,656)
-
(4,245,656)
BALANCE AT 31 DECEMBER 2023
60
15,473,515
15,473,575
16,653
15,490,228
YEAR ENDED 31 DECEMBER 2024:
Profit and total comprehensive income
-
3,466,829
3,466,829
(4)
3,466,825
Dividends
10
-
(2,926,563)
(2,926,563)
-
(2,926,563)
BALANCE AT 31 DECEMBER 2024
60
16,013,781
16,013,841
16,649
16,030,490
XCELANT LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
BALANCE AT 1 JANUARY 2023
60
4,429,938
4,429,998
YEAR ENDED 31 DECEMBER 2023:
Profit and total comprehensive income for the year
-
5,068,039
5,068,039
Dividends
10
-
(4,245,656)
(4,245,656)
BALANCE AT 31 DECEMBER 2023
60
5,252,321
5,252,381
YEAR ENDED 31 DECEMBER 2024:
Profit and total comprehensive income
-
3,815,425
3,815,425
Dividends
10
-
(2,926,563)
(2,926,563)
BALANCE AT 31 DECEMBER 2024
60
6,141,183
6,141,243
XCELANT LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 18 -
2024
2023
Notes
£
£
CASH FLOWS FROM OPERATING ACTIVITIES
Profit for the year after tax
3,466,825
4,629,804
Adjustments for:
Taxation charged
1,234,966
1,440,236
Finance costs
3,715
Investment income
(278,831)
(237,406)
Amortisation and impairment of intangible assets
17,863
-
Depreciation and impairment of tangible fixed assets
312,878
321,521
Decrease in provisions
(10,013)
-
Movements in working capital:
Decrease in stocks
125,539
385,624
Increase in debtors
(36,974)
(4,733,691)
Decrease in creditors
(358,830)
(352,527)
Cash generated from operations
4,473,423
1,457,276
Interest paid
-
(3,715)
Income taxes paid
(1,394,530)
(1,296,902)
Net cash inflow from operating activities
3,078,893
156,659
INVESTING ACTIVITIES
Purchase of business
(1,445,375)
-
Purchase of tangible fixed assets
(145,403)
(316,487)
Interest received
278,831
237,406
Net cash generated from investing activities
(1,311,947)
(79,081)
FINANCING ACTIVITIES
Dividends paid to equity shareholders
(2,926,563)
(4,245,656)
Net cash generated from financing activities
(2,926,563)
(4,245,656)
NET INCREASE IN CASH AND CASH EQUIVALENTS
(1,159,617)
(4,168,078)
Cash and cash equivalents at beginning of year
8,553,972
(12,722,050)
CASH AND CASH EQUIVALENTS AT END OF YEAR
7,394,355
8,553,972
XCELANT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
1
ACCOUNTING POLICIES
Company information
Xcelant Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Bounty House, Norman Close, Rochester, Kent, ME2 2NF.
The group consists of Xcelant 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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
XCELANT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
ACCOUNTING POLICIES
(Continued)
- 20 -
1.2
Business combinations
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Xcelant 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 31 December 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.
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.
XCELANT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
ACCOUNTING POLICIES
(Continued)
- 21 -
Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.
If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.
Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.
1.4
Going concern
At the time of approving the financial statements, the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
1.5
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.6
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
XCELANT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
ACCOUNTING POLICIES
(Continued)
- 22 -
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.
1.8
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Patents & licences
3 years straight line
Intellectual property
5 years straight line
1.9
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
2% straight line
Plant and equipment
25% reducing balance
Fixtures and fittings
33% straight line
Computers
33% straight line
Motor vehicles
25% reducing balance
Property improvements
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.
XCELANT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
ACCOUNTING POLICIES
(Continued)
- 23 -
1.10
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.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.
Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.
In the parent company financial statements, investments in associates are accounted for at cost less impairment.
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.11
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.
XCELANT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
ACCOUNTING POLICIES
(Continued)
- 24 -
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.12
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.13
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.
1.14
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.
XCELANT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
ACCOUNTING POLICIES
(Continued)
- 25 -
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.
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.
XCELANT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
ACCOUNTING POLICIES
(Continued)
- 26 -
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.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
1.15
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.
1.16
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.
XCELANT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
ACCOUNTING POLICIES
(Continued)
- 27 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.17
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.18
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.19
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
XCELANT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 28 -
2
JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
In the application of the group’s accounting policies, the director is 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.
3
TURNOVER AND OTHER REVENUE
2024
2023
£
£
Other revenue
Interest income
278,831
237,406
Commissions received
21,244
25,906
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
4
OPERATING PROFIT
2024
2023
£
£
Operating profit for the year is stated after charging:
Research and development costs
920
6,927
Fees payable to the group's auditor for the audit of the group's financial statements
5,080
2,080
Depreciation of owned tangible fixed assets
312,878
321,521
Amortisation of intangible assets
17,863
-
Operating lease charges
83,264
-
XCELANT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 29 -
5
EMPLOYEES
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Directors
1
1
1
1
Management
3
3
2
2
Other staff
51
49
-
-
Total
55
53
3
3
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
2,337,208
2,043,980
37,710
37,710
Social security costs
206,522
230,698
2,355
1,521
Pension costs
163,069
155,678
30,000
25,500
2,706,799
2,430,356
70,065
64,731
6
DIRECTOR'S REMUNERATION
2024
2023
£
£
Remuneration for qualifying services
12,570
12,570
Company pension contributions to defined contribution schemes
10,000
8,500
22,570
21,070
XCELANT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 30 -
7
INTEREST RECEIVABLE AND SIMILAR INCOME
2024
2023
£
£
Interest income
Interest on bank deposits
272,264
237,406
Other interest income
6,567
-
Total income
278,831
237,406
8
INTEREST PAYABLE AND SIMILAR EXPENSES
2024
2023
£
£
Other interest
-
3,715
9
TAXATION
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
1,242,716
1,392,337
Adjustments in respect of prior periods
(8,719)
(15,734)
Total current tax
1,233,997
1,376,603
Deferred tax
Origination and reversal of timing differences
969
63,633
Total tax charge
1,234,966
1,440,236
XCELANT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
9
TAXATION
(Continued)
- 31 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
4,701,791
6,070,040
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.50%)
1,175,448
1,426,459
Tax effect of expenses that are not deductible in determining taxable profit
9,372
10,585
Unutilised tax losses carried forward
5
Adjustments in respect of prior years
(8,719)
(15,733)
Amortisation on assets not qualifying for tax allowances
3,952
Other permanent differences
32,042
Tax at marginal rate
(188)
193
Effect of different UK tax rates on some earnings
4,842
Non-qualifying depreciation
23,054
21,716
Effect of removal of PURP on consolidation
(7,826)
Taxation charge
1,234,966
1,440,236
10
DIVIDENDS
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
2,926,563
4,245,656
XCELANT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 32 -
11
INTANGIBLE FIXED ASSETS
Group
Goodwill
Patents & licences
Intellectual property
Total
£
£
£
£
Cost
At 1 January 2024
41,842
41,842
Additions - business combinations
948,361
172,302
1,120,663
At 31 December 2024
948,361
41,842
172,302
1,162,505
Amortisation and impairment
At 1 January 2024
41,842
41,842
Amortisation charged for the year
15,806
2,057
17,863
At 31 December 2024
15,806
41,842
2,057
59,705
Carrying amount
At 31 December 2024
932,555
170,245
1,102,800
At 31 December 2023
The company had no intangible fixed assets at 31 December 2024 or 31 December 2023.
More information on impairment movements in the year is given in note .
XCELANT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 33 -
12
TANGIBLE FIXED ASSETS
Group
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Property improvements
Total
£
£
£
£
£
£
£
Cost
At 1 January 2024
4,598,990
1,455,196
309,890
94,800
193,762
11,658
6,664,296
Additions
2,053
225,485
1,162
12,058
1,339
242,097
At 31 December 2024
4,601,043
1,680,681
311,052
106,858
195,101
11,658
6,906,393
Depreciation and impairment
At 1 January 2024
124,241
963,519
257,540
84,007
64,663
9,223
1,503,193
Depreciation charged in the year
92,213
154,091
24,476
9,144
32,345
609
312,878
At 31 December 2024
216,454
1,117,610
282,016
93,151
97,008
9,832
1,816,071
Carrying amount
At 31 December 2024
4,384,589
563,071
29,036
13,707
98,093
1,826
5,090,322
At 31 December 2023
4,474,749
491,677
52,350
10,793
129,099
2,435
5,161,103
XCELANT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 34 -
Company
Plant and equipment
£
Cost
At 1 January 2024
487,617
Additions
113,245
At 31 December 2024
600,862
Depreciation and impairment
At 1 January 2024
186,242
Depreciation charged in the year
98,795
At 31 December 2024
285,037
Carrying amount
At 31 December 2024
315,825
At 31 December 2023
301,375
13
INVESTMENT PROPERTY
Group
Company
2024
2024
£
£
Fair value
At 1 January 2024
-
4,332,075
Additions through external acquisition
-
2,053
At 31 December 2024
-
4,334,128
The fair value of the investment property has been arrived at on the basis of a valuation carried out at the year end date by the director. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
14
FIXED ASSET INVESTMENTS
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
15
3,735,529
80,001
XCELANT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
14
FIXED ASSET INVESTMENTS
(Continued)
- 35 -
MOVEMENTS IN FIXED ASSET INVESTMENTS
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2024
80,001
Additions
3,655,528
At 31 December 2024
3,735,529
Carrying amount
At 31 December 2024
3,735,529
At 31 December 2023
80,001
15
SUBSIDIARIES
Details of the company's subsidiaries at 31 December 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Cellecta Limited
England and Wales
Ordinary
100.00
Epic Insulation
England and Wales
Ordinary
100.00
Violegen Limited
England and Wales
Ordinary
80.00
16
FINANCIAL INSTRUMENTS
17
STOCKS
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
1,144,994
1,132,265
-
-
Work in progress
18,853
-
-
-
1,163,847
1,132,265
-
-
XCELANT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 36 -
18
DEBTORS
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,158,480
2,672,754
Amounts owed by group undertakings
-
-
-
277,119
Other debtors
209,434
215,320
Prepayments and accrued income
91,377
275,979
8,557
8,541
3,459,291
3,164,053
8,557
285,660
19
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Group
Company
2024
2023
2024
2023
£
£
£
£
Trade creditors
562,275
718,237
956
25,656
Amounts owed to group undertakings
3,377,920
Corporation tax payable
583,551
754,097
284,691
220,532
Other taxation and social security
505,965
559,375
147,270
73,547
Other creditors
13,375
19,872
Accruals and deferred income
190,995
156,602
3,799
8,200
1,856,161
2,208,183
3,814,636
327,935
20
DEFERRED TAXATION
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
324,170
312,982
Retirement benefit obligations
(206)
-
323,964
312,982
XCELANT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
20
DEFERRED TAXATION
(Continued)
- 37 -
Liabilities
Liabilities
2024
2023
Company
£
£
Accelerated capital allowances
250,699
239,102
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 January 2024
312,982
239,102
Charge to profit or loss
969
11,597
Charge to equity
10,013
-
Liability at 31 December 2024
323,964
250,699
The deferred tax liability set out above is expected to reverse within 3 - 10 years and relates to accelerated capital allowances that are expected to mature within the same period.
21
RETIREMENT BENEFIT SCHEMES
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
163,069
155,678
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.
22
SHARE CAPITAL
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of 1p each
6,000
6,000
60
60
XCELANT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 38 -
23
ACQUISITION OF A BUSINESS
On 28 October 2024 the group acquired 100 percent of the issued capital of Epic Insulation Limited.
Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Intangible assets
172,302
-
172,302
Property, plant and equipment
96,694
-
96,694
Inventories
157,121
-
157,121
Trade and other receivables
258,264
-
258,264
Cash and cash equivalents
2,210,153
-
2,210,153
Trade and other payables
(177,355)
-
(177,355)
Provisions
(10,013)
-
(10,013)
Total identifiable net assets
2,707,166
-
2,707,166
Goodwill
948,362
Total consideration
3,655,528
The consideration was satisfied by:
£
Cash
3,655,528
Contribution by the acquired business for the reporting period included in the group statement of comprehensive income since acquisition:
£
Turnover
182,388
Loss after tax
(78,546)
XCELANT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 39 -
24
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
48,629
29,299
-
-
Between two and five years
141,739
40,449
-
-
190,368
69,748
-
-
Lessor
At the reporting end date the group had contracted with tenants for the following minimum lease payments:
Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
3,372
13,488
-
-
Between two and five years
-
3,372
-
-
3,372
16,860
-
-
25
RELATED PARTY TRANSACTIONS
In accordance with FRS 102 Section 33, transactions with other wholly-owned group companies, that are included within the ultimate parents undertaking's financial statements, are not disclosed.
26
DIRECTORS' TRANSACTIONS
Dividends totalling £2,092,475 (2023 - £3,219,448) were paid in the year in respect of shares held by the company's directors.
Included within other creditors is £nil (2023 - £10,458) due to a director. The loan is interest free and repayable on demand.
XCELANT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 40 -
27
ANALYSIS OF CHANGES IN NET FUNDS - GROUP
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
8,553,972
(1,159,617)
7,394,355
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