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Registered number:
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EOM Group Holdings Limited
Company Information
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EOM Group Holdings Limited
Contents
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EOM Group Holdings Limited
Group Strategic Report
For the Year Ended 31 December 2024
The directors present their strategic report for the year ended 31 December 2024.
Group revenues for the 2024 financial year were £13.1 million, versus prior year of £17.4 million, a reduction in revenue of £4.3 million. This is a 25% reduction compared with prior year. The Group has two significant operating divisions, and comments on the performance of each of these are summarised below:
Manufacture of special purpose materials In 2023 the Group derived revenue from a large number of construction projects. A number of client projects, including one very significant project that began in 2023 and continued into 2024, included significant levels of technical uncertainty and challenge which consumed a substantial amount of both design and engineering input and this prevented the Group from taking on additional Project based revenue. Furthermore, additional costs have been incurred to enable progress on this project. No recovery of these costs has been recognised within these financial statements however all projects have, or will soon be, completed on time in full. In addition, some Projects in the construction sector were delayed following the outcome of the Grenfell report and the resulting Building Safety Act changes that are still being clarified and absorbed by the Group’s clients. This situation is expected to improve in the second half of 2025 & into 2026 with increased revenues expected in the Company's major projects division. The division also has an operating site in Germany, trading through Farrat GmbH, which commenced trading during the year. In April 2024, this overseas operation moved from a temporary site into a new permanent manufacturing site based in Langenfeld (Rheinland), NRW, Germany. The Company is establishing its presence. The Group invested in Farrat GmbH during 2024, to enable the recruitment of employees to grow and manage the business as well as in capital equipment for the manufacturing site. The business is expected to break even during 2025 with profits anticipated in 2026 as the German construction sector continues its anticipated recovery. The Group focused on its leadership structure during 2024 with investment made to develop its Executive Leadership Team. This has been through external recruitment of experienced, senior leaders including a Managing Director and additional resources at all levels within Sales and Engineering. Furthermore, additional headcount was added, which is reflected in the increase in average employees from 59 to 75. Staff costs are static due to movements in bonus accruals offsetting the increase in salary costs. These investments increased Overhead Costs within the division during 2024 and therefore reduced the Company’s Operating Margin. These essential investments support the Company’s ability to evolve the business, implementing professionalism across all business functions, and enable it to increase its focus on growing the core business to reduce the reliance on major construction projects. Following consideration of all of the above, this division's gross profit in the year was £5.1 million, at a gross margin percentage of 45.8%, a decrease of 19.1 percentage points compared with prior year. This reduction in gross margin reflects the impact of reduced revenue, for the reasons given above, together with the aforementioned issues with some major projects where the technical requirements necessitated additional design, manufacturing & engineering costs. The division's operating loss was £1.7 million, down £5.4 million (2023: £3.7 million profit).
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EOM Group Holdings Limited
Group Strategic Report (continued)
For the Year Ended 31 December 2024
Installation of special purpose materials
Revenues for the 2024 Financial year were £2.4 million, versus prior year of £5.1 million, a reduction in revenue of £2.7 million. This is a 53% reduction compared with prior year. The division had a large project that ran in 2023 and 2024, with more of the project being completed in 2023, driving higher revenues in this period. Gross profit in the year was £142k, at a gross margin percentage of 5.9%, a decrease of 1.6% percentage points compared with prior year. The division incurred some additional costs on the aforementioned large project in 2024 that led to a reduction in profit margins in 2024. Operating profit for the year was £72k compared £261k in prior year, for the reasons outlined above. Group position In addition to the above, the most significant additional entries in the Group accounts are interest on the Group's loan of £73k (2023: £147k) and goodwill amortisation of £1.06m (2024: £1.06m). Total group gross profit was £5.16m, a margin of 39% (2023: £10.1m/58%), and operating loss was £2.61m (2023: profit £2.90m). In respect of the Group balance sheet, net assets are £8.15m (2023: £10.8m), the reduction being down to the losses made as noted above. Net current assets remain positive at £0.69m (2023: £2.72m). The Group remained cash generative in respect of its operations as shown in the Cash flow statement. The most significant outflow was in respect of repayments on the Group bank loan, which was fully settled in 2025. As noted above, the outlook for the remainder of 2025 and 2026 is positive with numerous long term projects expected to materialise, and a return to profitability is predicted based on the forecasts prepared by management.
Risk management is one of our key foundations of our governance and we actively identify and manage our risk across all areas of our business and operations. Successful delivery of our complex engineered construction projects that demonstrates excellence in design and construction and involves working with our key suppliers to mitigate risk within our supply chain and procure quality components. We ensure high quality standards through our audit and application of lessons learnt and have a multi-disciplinary team’s knowledge and experience in mechanical, structural acoustic and construction engineering, delivered with over seven decades’ experience.
The Group understands the need to grow the core sales, rather than being dependent on the Major Projects, and careful consideration has been taken to ensure that the business manages to maintain customer experience to the high standards and quality expected. Investment has been made across the business within our UK operations and the expansion into Continental Europe with our new German manufacturing facility. The investment covers all areas including Engineering, Sales and Executive Leadership. The investments in both internal and external sales support the ability to grow our existing and new customer business, providing the sales stability to counteract the fluctuating time-scales of Major Projects. External market outlook Weaker economic momentum has helped ease supply chain pressures and reduce broader cost pressures. The impact of the Building Safety Act has seen delays in construction projects within the UK, this could result in delays in forecasted sales and additional engineering workload to provide relevant information to clients which aid submissions to the Building Safety Regulator. Slower economic growth across the EU risks the forecasting ramp-up of sales direct from the new German manufacturing facility. However, with this facility the company is well-placed to increase direct sales across mainland Europe. Competitive environment Competitive pressure in the UK and worldwide is a continued risk for the Group which could result in loss of sales to key competitors. The Group manages this risk by its focus on delighting customers and providing added value of unrivalled technical expertise and passion to provide the best advice and develop the highest standard of technical solutions with fast response times and maintaining strong relationships with clients.
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EOM Group Holdings Limited
Group Strategic Report (continued)
For the Year Ended 31 December 2024
Health & safety
The Group operates in an industry where health and safety risks are inherently prominent. Further, the Group is subject to stringent regulations from a health and safety perspective. A serious health and safety incident could have a significant impact on the Group’s operational and financial performance, as well as its reputation. This is managed through ensuring that a robust health and safety framework is implemented throughout the Group’s operations, requiring employees to complete formal health and safety training on a regular basis. The Group monitors the performance of its health and safety framework, and takes immediate and decisive action if non-adherence is identified. The development of a strong safety culture is driven by management and employees at every level and is a core part of doing business with integrity. Price Risk The Group is exposed to commodity price risk as a result of its operations. However, given the size of the Group’s operations, the cost of managing exposure to commodity price fluctuation exceeds any potential benefits.. We build strong relationships with our suppliers to develop mutually beneficial and lasting partnerships. Supplier engagement is primarily through a series of interactions and formal reviews. Key areas of focus include sustainability, innovation, value for money and quality. The Board recognises the relationships with suppliers are important to the Group’s long-term success and is briefed on supplier feedback and issues on a regular basis. Liquidity Risk As the business expands there is a risk that it could encounter difficulty in funding expanding working capital and investment needs. The Group aims to mitigate this risk by managing cash generation from its operations and ensuring debtor collection targets are met and by ensuring financing facilities are available if required. The Group’s overall cash position has remained strong which will further help mitigate future liquidity risk. Financial risk The Group’s principal financial assets are cash and bank balances, trade and other receivables. The Group’s credit risk is primarily attributable to its trade receivables, customers are set terms, and appropriate credit checks are undertaken prior to this. The Group runs a formal credit control process which is executed effectively where necessary. The Group has no significant concentration of credit risk.
The directors consider the financial key performance indicators to be the revenue, gross profit, operating profit and net assets, all of which are analysed in the report above.
The group has made a loss of £2,296,112, during the year, and has net current assets of £680,573.
The directors have prepared profit and cash flow forecasts, and these demonstrate that the group will continue to be able to pay its debts as they fall due for a period of not less than 12 months from the date of signing the financial statements. The group also has access to facilities where necessary. As a result, it is appropriate to prepare these financial statements on a going concern basis.
This report was approved by the board and signed on its behalf.
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EOM Group Holdings Limited
Directors' Report
For the Year Ended 31 December 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements 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 Group 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 the Group and to 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The loss for the year, after taxation, amounted to £2,296,112 (2023 - profit £1,825,727).
Dividends paid in the year was £302,011 (2023: £278,547) The directors do not recommend the payment of a final dividend.
The directors who served during the year were:
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EOM Group Holdings Limited
Directors' Report (continued)
For the Year Ended 31 December 2024
The Group remains confident that our approach to winning work will mean that the business is well placed to respond to any challenges that arise from prevailing market conditions or economic uncertainties. 2025 sees focus on strengthening core business operations, supported by our new manufacturing facility in Europe and continuing success delivering major projects into the construction industry.
We look forward to a successful 2025 and the continued evolution of the business as we explore new growth opportunities and strategic partnerships across the globe. Financial instruments As noted in the Strategic Report, liquidity management is considered a key matter for the group and one which is managed by ensuring that the group is generating sufficient cash from its operations and meeting it's debtor collection targets successfully. The group also ensures that financing facilities are available if required. The group grants its customers credit terms and receives credit terms from its suppliers, in line with other businesses within the sector. Price risk is covered in the Strategic Report. Research and development activities The Group continues to invest in research and development and the directors regard research and development investment as necessary for continuing success in the medium and long-term future.
Following the year end, an employee left the business and their 1,111 options, granted in the year, all lapsed at that point.
There were no other post balance sheet events that required disclosure in the financial statements.
The auditors, Hurst Accountants Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
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EOM Group Holdings Limited
Directors' Report (continued)
For the Year Ended 31 December 2024
This report was approved by the board and signed on its behalf.
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EOM Group Holdings Limited
Independent Auditors' Report to the Members of EOM Group Holdings Limited
We have audited the financial statements of EOM Group Holdings Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2024, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, 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).
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 Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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EOM Group Holdings Limited
Independent Auditors' Report to the Members of EOM Group Holdings Limited (continued)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.
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EOM Group Holdings Limited
Independent Auditors' Report to the Members of EOM Group Holdings Limited (continued)
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 Auditors' 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 Group 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:
Identifying and assessing potential risks related to irregularities In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following: • The nature of the industry and sector in which the company operates; the control environment and business performance including key drivers for directors' remuneration, bonus levels and performance targets. • The outcome of enquiries of local management and parent company management, including whether management was aware of any instances of non-compliance with laws and regulations, and whether management had knowledge of any actual, suspected, or alleged fraud. • Supporting documentation relating to the Company's policies and procedures for: • Identifying, evaluating, and complying with laws and regulations • Detecting and responding to the risks of fraud • The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations. • The outcome of discussions amongst the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. • The legal and regulatory framework in which the Company operates, particularly those laws and regulations which have a direct effect on the financial statements, such as the Companies Act 2006, pensions and tax legislation, or which had a fundamental effect on the operations of the Company, including General Data Protection requirements, and Antibribery and Corruption. Audit response to risks identified Our procedures to respond to the risks identified included the following: • Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the provisions of those relevant laws and regulations which have a direct effect on the financial statements. • Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud. • Evaluation of the operating effectiveness of management’s controls designed to prevent and detect irregularities. • Enquiring of management about any actual and potential litigation and claims. • Performing analytical procedures to identify any unusual or unexpected relationships which may indicate risks of material misstatement due to fraud.
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EOM Group Holdings Limited
Independent Auditors' Report to the Members of EOM Group Holdings Limited (continued)
We have also considered the risk of fraud through management override of controls by:
• Testing the appropriateness of journal entries and other adjustments. • Challenging assumptions made by management in their significant accounting estimates, and assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and • Evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we would become aware of them. Also, 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.
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 Auditors' 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 Auditors' 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.
for and on behalf of
Chartered Accountants & Statutory Auditors
3 Stockport Exchange
Cheshire
SK1 3GG
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EOM Group Holdings Limited
Consolidated Statement of Comprehensive Income
For the Year Ended 31 December 2024
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EOM Group Holdings Limited
Registered number: 12882639
Consolidated Balance Sheet
As at
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 18 to 40 form part of these financial statements.
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EOM Group Holdings Limited
Registered number: 12882639
Company Balance Sheet
As at
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 18 to 40 form part of these financial statements.
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EOM Group Holdings Limited
Consolidated Statement of Changes in Equity
For the Year Ended 31 December 2024
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EOM Group Holdings Limited
Company Statement of Changes in Equity
For the Year Ended 31 December 2024
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EOM Group Holdings Limited
Consolidated Statement of Cash Flows
For the Year Ended 31 December 2024
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EOM Group Holdings Limited
Consolidated Statement of Cash Flows (continued)
For the Year Ended 31 December 2024
Consolidated Analysis of Net Debt
For the Year Ended 31 December 2024
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EOM Group Holdings Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
EOM Group Holdings Limited is a private company limited by shares, incorporated in England and Wales. The company's registered number is 12882639 and its registered office is Balmoral Road, Altrincham, Cheshire, WA15 8HJ. The principal activity of the group is the manufacture and installation of special purpose materials. The principal activity of the company is that of a holding company.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.
Parent Company disclosure exemptions
In preparing the separate financial statements of the parent Company, advantage has been taken of the following disclosure exemptions available in FRS 102:
∙No Statement of Cash Flows has been presented for the parent Company;
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases. The following principal accounting policies have been applied:
The group has made a loss of £2,323,770 during the year, and has net current assets of £680,573.
The directors have prepared profit and cash flow forecasts, and these demonstrate that the group will continue to be able to pay its debts as they fall due for a period of not less than 12 months from the date of signing the financial statements. The group also has access to facilities where necessary. As a result, it is appropriate to prepare these financial statements on a going concern basis.
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EOM Group Holdings Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
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EOM Group Holdings Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
2.Accounting policies (continued)
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.
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EOM Group Holdings Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
2.Accounting policies (continued)
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EOM Group Holdings Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
2.Accounting policies (continued)
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EOM Group Holdings Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
2.Accounting policies (continued)
Goodwill
Other intangible assets
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated Statement of Comprehensive Income over its useful economic life. Other intangible assets Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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EOM Group Holdings Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
2.Accounting policies (continued)
measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
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EOM Group Holdings Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” 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, 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 receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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. Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.
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EOM Group Holdings Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
2.Accounting policies (continued)
Impairment of financial assets Financial assets are assessed for indicators of impairment at each reporting date. Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate. If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss. Financial liabilities Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities. Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial. Debt instruments are subsequently carried at their amortised cost using the effective interest rate method. Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial. Derecognition of financial assets Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained. Derecognition of financial liabilities Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.
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EOM Group Holdings Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
2.Accounting policies (continued)
Measurement of provision for obsolete stock The stock provision is determined by ageing the stock in conjunction with management's knowledge and experience of stock movements. The provision applied reduces the carrying value to its selling price less costs to sell. Accordingly, provision for impairment is made where the net realisable value is less than the cost based on best estimates by management. The value of stock held at the year end totalled £678,002 (2023: £1,073,766), which included impairments of £85,582 (2023: £78,965).
Analysis of turnover by country of destination:
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EOM Group Holdings Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
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EOM Group Holdings Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
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EOM Group Holdings Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
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EOM Group Holdings Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
11.Taxation (continued)
There were no factors that may affect future tax charges.
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EOM Group Holdings Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
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EOM Group Holdings Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
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EOM Group Holdings Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
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EOM Group Holdings Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
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EOM Group Holdings Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
No amounts are payable in more than five years.
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EOM Group Holdings Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
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EOM Group Holdings Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
Share premium account
The share premium account includes all amounts paid up on shares in excess of their nominal value. Other reserves The other reserve relates to retranslation gains or losses on the consolidation of foreign subsidiaries. Profit and loss account The profit and loss account includes all current and prior period retained profits and losses.
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EOM Group Holdings Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £204,342 (2023: £137,139). Contributions totaling £47,342 (2023: £56,697) were payable to the fund at the balance sheet date and are included in creditors.
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EOM Group Holdings Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
The controlling party is Mr O R Farrell by virtue of his majority shareholding in the company.
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