8C Investment Ltd - Limited company accounts 18.2
8C Investment Ltd - Limited company accounts 18.2
| REGISTERED NUMBER: 05863306 (England and Wales) |
| Group Strategic Report, Report of the Directors and |
| Consolidated Financial Statements |
| for the Period 1 November 2017 to 31 December 2018 |
| for |
| 8C Investment Ltd |
| 8C Investment Ltd (Registered number: 05863306) |
| Contents of the Consolidated Financial Statements |
| for the Period 1 November 2017 to 31 December 2018 |
| Page |
| Company Information | 1 |
| Group Strategic Report | 2 |
| Report of the Directors | 3 |
| Report of the Independent Auditors | 5 |
| Consolidated Statement of Comprehensive Income | 8 |
| Consolidated Balance Sheet | 10 |
| Company Balance Sheet | 12 |
| Consolidated Statement of Changes in Equity | 13 |
| Company Statement of Changes in Equity | 14 |
| Consolidated Cash Flow Statement | 15 |
| Notes to the Consolidated Cash Flow Statement | 16 |
| Notes to the Consolidated Financial Statements | 18 |
| 8C Investment Ltd |
| Company Information |
| for the Period 1 November 2017 to 31 December 2018 |
| DIRECTORS: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| Chartered Accountants |
| & Statutory Auditors |
| Elthorne Gate |
| 64 High Street |
| Pinner |
| HA5 5QA |
| 8C Investment Ltd (Registered number: 05863306) |
| Group Strategic Report |
| for the Period 1 November 2017 to 31 December 2018 |
| The directors present their strategic report of the Company and the Group for the period 1 November 2017 to |
| 31 December 2018. |
| REVIEW OF BUSINESS |
| The Group has improved sales on a pro rata basis whilst maintaining margins by focusing on added value and |
| putting the customer's needs first. This is reflected in the key performance indicators below with Group |
| Turnover and Gross Profit up 9% on a like for like basis. |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| The group operates in a highly competitive market place which is a continuing risk and could result in losing |
| sales to its competitors. The group manages this risk by providing flexible service offerings and maintaining |
| close relationships with its customers and potential customers. |
| The Directors consider that the spread of activities shelters the Group from any particular threat. The Group |
| continues to retain a strong net asset base to ensure it is well positioned for the challenges of the market as |
| well as Brexit. |
| KEY PERFORMACE INDICTORS |
| 2018 | 2017 |
| £ | £ |
| Turnover | 9,926,936 | 7,816,952 |
| Gross profit | 5,353,107 | 4,232,421 |
| Gross profit margin % | 53.93 | 54.14 |
| Profit before tax | 1,597,515 | 925,301 |
| Net assets | 6,634,877 | 5,641,810 |
| ON BEHALF OF THE BOARD: |
| 8C Investment Ltd (Registered number: 05863306) |
| Report of the Directors |
| for the Period 1 November 2017 to 31 December 2018 |
| The directors present their report with the financial statements of the Company and the Group for the period |
| 1 November 2017 to 31 December 2018. |
| PRINCIPAL ACTIVITY |
| The principal activity of the Group in the period under review was that of storage, fulfilment and distribution |
| of goods for its customers. |
| The principal activity of the Company is that of a holding company. |
| DIVIDENDS |
| The total distribution of dividends for the period ended 31 December 2018 will be £258,352. |
| DIRECTORS |
| The directors shown below have held office during the whole of the period from 1 November 2017 to the date |
| of this report. |
| Other changes in directors holding office are as follows: |
report. |
| STATEMENT OF DIRECTORS' RESPONSIBILITIES |
| The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the |
| financial statements in accordance with applicable law and regulations. |
| Company law requires the directors to prepare financial statements for each financial year. Under that law |
| the directors have elected to prepare the financial statements in accordance with United Kingdom Generally |
| Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law |
| the directors must not approve the financial statements unless they are satisfied that they give a true and fair |
| view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that |
| period. In preparing these financial statements, the directors are required to: |
| - | select suitable accounting policies and then apply them consistently; |
| - | make judgements and accounting estimates that are reasonable and prudent; |
| - | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business. |
| The directors are responsible for keeping adequate accounting records that are sufficient to show and explain |
| the Company's and the Group's transactions and disclose with reasonable accuracy at any time the financial |
| position of the Company and the Group and enable them to ensure that the financial statements comply with |
| the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and the Group |
| and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
| 8C Investment Ltd (Registered number: 05863306) |
| Report of the Directors |
| for the Period 1 November 2017 to 31 December 2018 |
| STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
| So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the |
| Companies Act 2006) of which the Group's auditors are unaware, and each director has taken all the steps |
| that he or she ought to have taken as a director in order to make himself or herself aware of any relevant |
| audit information and to establish that the Group's auditors are aware of that information. |
| AUDITORS |
| The auditors, Aequitas, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
| ON BEHALF OF THE BOARD: |
| Report of the Independent Auditors to the Members of |
| 8C Investment Ltd |
| Opinion |
| We have audited the financial statements of 8C Investment Ltd (the 'Parent Company') and its subsidiaries |
| (the 'Group') for the period ended 31 December 2018 which comprise the Consolidated Statement of |
| Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of |
| Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to |
| the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant |
| accounting policies. The financial reporting framework that has been applied in their preparation is applicable |
| law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial |
| Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted |
| Accounting Practice). |
| In our opinion the financial statements: |
| - | give a true and fair view of the state of the Group's and of the Parent Company affairs as at 31 December 2018 and of the Group's profit for the period then ended; |
| - | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
| - | have been prepared in accordance with the requirements of the Companies Act 2006. |
| Basis for opinion |
| We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and |
| applicable law. Our responsibilities under those standards are further described in the Auditors' |
| responsibilities for the audit of the financial statements section of our report. We are independent of the |
| Group 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 |
| We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to |
| report to you where: |
| - | the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or |
| - | the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the Group's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. |
| Other information |
| The directors are responsible for the other information. The other information comprises the information in |
| the Group Strategic Report and the Report of the Directors, but does not include the financial statements and |
| our Report of the Auditors thereon. |
| Our opinion on the financial statements does not cover the other information and, except to the extent |
| otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
| In connection with our audit of the financial statements, our responsibility is to read the other information |
| and, in doing so, consider whether the other information is materially inconsistent with the financial |
| statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we |
| identify such material inconsistencies or apparent material misstatements, we are required to determine |
| whether there is a material misstatement in the financial statements or a material misstatement of the other |
| information. 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. |
| Report of the Independent Auditors to the Members of |
| 8C Investment Ltd |
| Opinions on other matters prescribed by the Companies Act 2006 |
| In our opinion, based on the work undertaken in the course of the audit: |
| - | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
| - | the Group Strategic Report and the Report of the Directors 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 its environment |
| obtained in the course of the audit, we have not identified material misstatements in the Group Strategic |
| Report or the Report of the Directors. |
| We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to |
| report to you if, in our opinion: |
| - | adequate accounting records have not been kept by the Parent Company, or returns adequate for our audit have not been received from branches not visited by us; or |
| - | the Parent Company financial statements are not in agreement with the accounting records and returns; or |
| - | certain disclosures of directors' remuneration specified by law are not made; or |
| - | we have not received all the information and explanations we require for our audit. |
| Responsibilities of directors |
| As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are |
| responsible for the preparation of the financial statements and for being satisfied that they give a true and fair |
| view, and for such internal control as the directors determine necessary to enable the preparation of financial |
| statements that are free from material misstatement, whether due to fraud or error. |
| In preparing the financial statements, the directors are responsible for assessing the Group's and the Parent |
| Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern |
| and using the going concern basis of accounting unless the directors either intend to liquidate the Group or |
| the Parent Company or to cease operations, or have no realistic alternative but to do so. |
| Auditors' responsibilities for the audit of the financial statements |
| Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free |
| from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes |
| our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted |
| in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can |
| arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably |
| be expected to influence the economic decisions of users taken on the basis of these financial statements. |
| A further description of our responsibilities for the audit of the financial statements is located on the Financial |
| Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our |
| Report of the Auditors. |
| Report of the Independent Auditors to the Members of |
| 8C Investment Ltd |
| Use of our report |
| This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of |
| the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's |
| members those matters we are required to state to them in a Report of the Auditors and for no other |
| purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other |
| than the Company and the Company's members as a body, for our audit work, for this report, or for the |
| opinions we have formed. |
| for and on behalf of |
| Chartered Accountants |
| & Statutory Auditors |
| Elthorne Gate |
| 64 High Street |
| Pinner |
| HA5 5QA |
| 8C Investment Ltd (Registered number: 05863306) |
| Consolidated Statement of Comprehensive Income |
| for the Period 1 November 2017 to 31 December 2018 |
| Period |
| 1.11.17 |
| to | Year Ended |
| 31.12.18 | 31.10.17 |
| Notes | £ | £ |
| TURNOVER | 3 | 9,926,936 | 7,816,952 |
| Cost of sales | 4,573,829 | 3,584,527 |
| GROSS PROFIT | 5,353,107 | 4,232,425 |
| Administrative expenses | 4,180,469 | 3,565,145 |
| 1,172,638 | 667,280 |
| Other operating income | 237,495 | 236,459 |
| OPERATING PROFIT | 5 | 1,410,133 | 903,739 |
| Interest receivable and similar income | 315 | 44,283 |
| 1,410,448 | 948,022 |
| Fair value gain on investment |
| property | 202,391 | - |
| 1,612,839 | 948,022 |
| Interest payable and similar expenses | 7 | 15,324 | 22,721 |
| PROFIT BEFORE TAXATION | 1,597,515 | 925,301 |
| Tax on profit | 8 | 346,096 | 212,922 |
| PROFIT FOR THE FINANCIAL PERIOD |
| OTHER COMPREHENSIVE INCOME | - | - |
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD |
1,251,419 |
712,379 |
| Profit attributable to: |
| Owners of the parent | 1,155,185 | 691,838 |
| Non-controlling interests | 96,234 | 20,541 |
| 1,251,419 | 712,379 |
| 8C Investment Ltd (Registered number: 05863306) |
| Consolidated Statement of Comprehensive Income |
| for the Period 1 November 2017 to 31 December 2018 |
| Period |
| 1.11.17 |
| to | Year Ended |
| 31.12.18 | 31.10.17 |
| £ | £ |
| Total comprehensive income attributable to: |
| Owners of the parent | 1,155,185 | 691,838 |
| Non-controlling interests | 96,234 | 20,541 |
| 1,251,419 | 712,379 |
| 8C Investment Ltd (Registered number: 05863306) |
| Consolidated Balance Sheet |
| 31 December 2018 |
| 31.12.18 | 31.10.17 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Intangible assets | 11 | 9,835 | 11,829 |
| Tangible assets | 12 | 2,730,998 | 5,350,857 |
| Investments | 13 | - | - |
| Investment property | 14 | 2,829,689 | - |
| 5,570,522 | 5,362,686 |
| CURRENT ASSETS |
| Stocks | 15 | 1,694 | 2,579 |
| Debtors | 16 | 2,499,298 | 1,940,102 |
| Cash at bank and in hand | 595,110 | 512,693 |
| 3,096,102 | 2,455,374 |
| CREDITORS |
| Amounts falling due within one year | 17 | 1,912,400 | 1,892,265 |
| NET CURRENT ASSETS | 1,183,702 | 563,109 |
| TOTAL ASSETS LESS CURRENT LIABILITIES | 6,754,224 | 5,925,795 |
| CREDITORS |
| Amounts falling due after more than one year |
18 |
(13,374 |
) |
(241,148 |
) |
| PROVISIONS FOR LIABILITIES | 22 | (105,973 | ) | (42,837 | ) |
| NET ASSETS | 6,634,877 | 5,641,810 |
| 8C Investment Ltd (Registered number: 05863306) |
| Consolidated Balance Sheet - continued |
| 31 December 2018 |
| 31.12.18 | 31.10.17 |
| Notes | £ | £ | £ | £ |
| CAPITAL AND RESERVES |
| Called up share capital | 23 | 1,504,000 | 1,504,000 |
| Merger reserves | (1,920,614 | ) | (1,920,614 | ) |
| Fair value reserve | 163,936 | - |
| Retained earnings | 6,726,095 | 5,993,198 |
| SHAREHOLDERS' FUNDS | 6,473,417 | 5,576,584 |
| NON-CONTROLLING INTERESTS | 24 | 161,460 | 65,226 |
| TOTAL EQUITY | 6,634,877 | 5,641,810 |
| The financial statements were approved by the Board of Directors on 29 August 2019 and were signed on its |
| behalf by: |
| Mr HC Patel - Director |
| 8C Investment Ltd (Registered number: 05863306) |
| Company Balance Sheet |
| 31 December 2018 |
| 31.12.18 | 31.10.17 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Intangible assets | 11 |
| Tangible assets | 12 |
| Investments | 13 |
| Investment property | 14 |
| CURRENT ASSETS |
| Debtors | 16 |
| Cash at bank and in hand |
| CREDITORS |
| Amounts falling due within one year | 17 |
| NET CURRENT ASSETS/(LIABILITIES) | ( |
) |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CAPITAL AND RESERVES |
| Called up share capital | 23 |
| Retained earnings |
| SHAREHOLDERS' FUNDS |
| Company's profit for the financial year | 691,346 | 234,438 |
| The financial statements were approved by the Board of Directors on behalf by: |
| 8C Investment Ltd (Registered number: 05863306) |
| Consolidated Statement of Changes in Equity |
| for the Period 1 November 2017 to 31 December 2018 |
| Called up |
| share | Retained | Merger |
| capital | earnings | reserves |
| £ | £ | £ |
| Balance at 1 November 2016 | - | 5,655,798 | (1,920,614 | ) |
| Changes in equity |
| Issue of share capital | 1,504,000 | - | - |
| Dividends | - | (354,438 | ) | - |
| Total comprehensive income | - | 691,838 | - |
| Balance at 31 October 2017 | 1,504,000 | 5,993,198 | (1,920,614 | ) |
| Changes in equity |
| Dividends | - | (258,352 | ) | - |
| Total comprehensive income | - | 1,155,185 | - |
| Transfer to fair value reserve | - | (163,936 | ) | - |
| Balance at 31 December 2018 | 1,504,000 | 6,726,095 | (1,920,614 | ) |
| Fair |
| value | Non-controlling | Total |
| reserve | Total | interests | equity |
| £ | £ | £ | £ |
| Balance at 1 November 2016 | - | 3,735,184 | 44,685 | 3,779,869 |
| Changes in equity |
| Issue of share capital | - | 1,504,000 | - | 1,504,000 |
| Dividends | - | (354,438 | ) | - | (354,438 | ) |
| Total comprehensive income | - | 691,838 | 20,541 | 712,379 |
| Balance at 31 October 2017 | - | 5,576,584 | 65,226 | 5,641,810 |
| Changes in equity |
| Dividends | - | (258,352 | ) | - | (258,352 | ) |
| Total comprehensive income | - | 1,155,185 | 96,234 | 1,251,419 |
| Transfer to fair value reserve | 163,936 | - | - | - |
| Balance at 31 December 2018 | 163,936 | 6,473,417 | 161,460 | 6,634,877 |
| 8C Investment Ltd (Registered number: 05863306) |
| Company Statement of Changes in Equity |
| for the Period 1 November 2017 to 31 December 2018 |
| Called up |
| share | Retained | Total |
| capital | earnings | equity |
| £ | £ | £ |
| Balance at 1 November 2016 |
| Changes in equity |
| Issue of share capital | - |
| Dividends | - | ( |
) | ( |
) |
| Total comprehensive income | - |
| Balance at 31 October 2017 |
| Changes in equity |
| Dividends | - | ( |
) | ( |
) |
| Total comprehensive income | - |
| Balance at 31 December 2018 |
| 8C Investment Ltd (Registered number: 05863306) |
| Consolidated Cash Flow Statement |
| for the Period 1 November 2017 to 31 December 2018 |
| Period |
| 1.11.17 |
| to | Year Ended |
| 31.12.18 | 31.10.17 |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 | 1,259,719 | 402,609 |
| Interest paid | (14,326 | ) | (21,242 | ) |
| Interest element of hire purchase payments paid |
(998 |
) |
(1,479 |
) |
| Tax paid | (257,751 | ) | (23,347 | ) |
| Net cash from operating activities | 986,644 | 356,541 |
| Cash flows from investing activities |
| Purchase of tangible fixed assets | (99,810 | ) | (105,313 | ) |
| Sale of tangible fixed assets | 3,590 | 5,833 |
| Interest received | 315 | 44,283 |
| Net cash from investing activities | (95,905 | ) | (55,197 | ) |
| Cash flows from financing activities |
| Loan repayments in year | (482,602 | ) | (517,120 | ) |
| Capital repayments in year | 16,599 | 12,817 |
| Amount introduced by directors | 20,346 | - |
| Amount withdrawn by directors | (103,461 | ) | (346 | ) |
| Share issue | - | 1,504,000 |
| Equity dividends paid | (258,352 | ) | (354,438 | ) |
| Net cash from financing activities | (807,470 | ) | 644,913 |
| Increase in cash and cash equivalents | 83,269 | 946,257 |
| Cash and cash equivalents at beginning of period |
2 |
331,844 |
- |
| Cash and cash equivalents at end of period |
2 |
415,113 |
331,844 |
| 8C Investment Ltd (Registered number: 05863306) |
| Notes to the Consolidated Cash Flow Statement |
| for the Period 1 November 2017 to 31 December 2018 |
| 1. | RECONCILIATION OF PROFIT FOR THE FINANCIAL PERIOD TO CASH GENERATED FROM OPERATIONS |
| Period |
| 1.11.17 |
| to | Year Ended |
| 31.12.18 | 31.10.17 |
| £ | £ |
| Profit for the financial period | 1,251,419 | 712,379 |
| Depreciation charges | 94,366 | 155,624 |
| (Profit)/loss on disposal of fixed assets | (3,590 | ) | 1,175 |
| Gain on revaluation of fixed assets | (202,391 | ) | - |
| Increase/decrease in provision | 3,500 | (3,164 | ) |
| Finance costs | 15,324 | 22,721 |
| Finance income | (315 | ) | (44,283 | ) |
| Taxation | 346,096 | 212,922 |
| 1,504,409 | 1,057,374 |
| Decrease/(increase) in stocks | 885 | (2,579 | ) |
| Increase in trade and other debtors | (472,874 | ) | (1,927,469 | ) |
| Increase in trade and other creditors | 227,299 | 1,275,283 |
| Cash generated from operations | 1,259,719 | 402,609 |
| 2. | CASH AND CASH EQUIVALENTS |
| The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in |
| respect of these Balance Sheet amounts: |
| Period ended 31 December 2018 |
| 31.12.18 | 1.11.17 |
| £ | £ |
| Cash and cash equivalents | 595,110 | 512,693 |
| Bank overdrafts | (179,997 | ) | (180,849 | ) |
| 415,113 | 331,844 |
| Year ended 31 October 2017 |
| 31.10.17 | 1.11.16 |
| £ | £ |
| Cash and cash equivalents | 512,693 | - |
| Bank overdrafts | (180,849 | ) | - |
| 331,844 | - |
| 8C Investment Ltd (Registered number: 05863306) |
| Error Messages from the Consolidated Cash Flow Statement |
| for the Period 1 November 2017 to 31 December 2018 |
| ** | LAST YEAR - MOVEMENT IN CASH AND CASH EQUIVALENTS |
| AS CALCULATED IN CONSOLIDATED CASH FLOW STATEMENT |
| DOES NOT AGREE TO MOVEMENT PER BALANCE SHEET |
| COMPARE MOVEMENT ON CONSOLIDATED CASH FLOW STATEMENT | = | 946,257 |
| TO | MOVEMENT PER BALANCE SHEET |
| CASH AND CASH EQUIVALENTS LESS BANK OVERDRAFTS |
| 512,693 | - | 180,849 | = | 331,844 |
| 8C Investment Ltd (Registered number: 05863306) |
| Notes to the Consolidated Financial Statements |
| for the Period 1 November 2017 to 31 December 2018 |
| 1. | STATUTORY INFORMATION |
| 8C Investment Ltd is a |
| company's registered number and registered office address can be found on the General Information |
| page. |
| The presentation currency of the financial statements is the Pound Sterling (£). |
| 2. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| The Company and Group extended the financial year to 31 December to align financial year with the |
| calender year. The comparative are therefore not comparable. |
| 8C Investment Ltd (Registered number: 05863306) |
| Notes to the Consolidated Financial Statements - continued |
| for the Period 1 November 2017 to 31 December 2018 |
| 2. | ACCOUNTING POLICIES - continued |
| Basis of consolidation |
| The financial statements consolidate the financial statements of the Group and all of its subsidiary |
| undertakings. The results of subsidiaries acquired or disposed of during the year are included from or to |
| the date that control passes. The parent company has applied the exemption contained in section 408 |
| of the Companies Act 2006 and has not included its individual statement of comprehensive income. |
| A subsidiary is an entity controlled by the company. Control is achieved where the company has the |
| power to govern the financial and operating policies of an entity so as to obtain benefits from its |
| activities. |
| The results of subsidiaries acquired or disposed of during the year are included in the profit and loss |
| accounts from the effective date of acquisition or up to the effective date of disposal, as appropriate. |
| Where necessary, adjustments are made to the financial statements of subsidiaries to bring their |
| accounting policies into line with those used by the group. |
| The purchase method of accounting is used to accounts for business combinations that result in the |
| acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair |
| value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of |
| exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and |
| liabilities and contingent liabilities assumed in a business combination are measured initially at at their |
| fair values at the acquisition date. Any excess of the cost of the business combination over the |
| acquirer's interest in the net fair value of the identifiable assets, liabilities and contingent liabilities |
| recognised as goodwill. |
| Inter-company transactions, balances and unrealised gains on transactions between the company and |
| its subsidiaries, which are related parties, are eliminated in full. Intra-group losses are also eliminated |
| but may indicate an impairment that requires recognition in the consolidated financial statements. |
| Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the |
| policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries |
| are identified separately from the group's equity therein. Non-controlling interests consist of the |
| amount of those interests at the date of original business combination and the non-controlling |
| shareholder's share of changes in equity since the date of the combination. |
| 8C Investment Ltd (Registered number: 05863306) |
| Notes to the Consolidated Financial Statements - continued |
| for the Period 1 November 2017 to 31 December 2018 |
| 2. | ACCOUNTING POLICIES - continued |
| Critical accounting judgements and key sources of estimation uncertainty |
| The preparation of the financial statements requires management to make judgements, estimates and |
| assumptions that affect the amounts reported. These estimates and judgements are continually |
| reviewed and are based on experience and other factors, including expectations of future events that |
| are believed to be reasonable under the circumstances. |
| Significant judgements |
| There are no judgements (apart from those involving estimations) that management has made in the |
| process of applying the entity's accounting policies and that have the most significant effect on the |
| amounts recognised in the financial statements. |
| Key sources of estimation uncertainty |
| Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely |
| equal the related actual outcome. There are no key assumptions and other sources of estimation |
| uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of |
| assets and liabilities within the next financial year. |
| Turnover |
| Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, |
| rebates, value added tax and other sales taxes. |
| Tangible fixed assets |
| Plant and machinery | - |
| Fixtures and fittings | - |
| Motor vehicles | - |
| Computer equipment | - |
| Investment property |
| Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from |
| changes in fair value is recognised in profit or loss. |
| Stocks |
| Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete |
| and slow moving items. |
| Taxation |
| Taxation for the period comprises current and deferred tax. Tax is recognised in the Consolidated |
| Statement of Comprehensive Income, except to the extent that it relates to items recognised in other |
| comprehensive income or directly in equity. |
| Current or deferred taxation assets and liabilities are not discounted. |
| Current tax is recognised at the amount of tax payable using the tax rates and laws that have been |
| enacted or substantively enacted by the balance sheet date. |
| 8C Investment Ltd (Registered number: 05863306) |
| Notes to the Consolidated Financial Statements - continued |
| for the Period 1 November 2017 to 31 December 2018 |
| 2. | ACCOUNTING POLICIES - continued |
| Deferred tax |
| Deferred tax is recognised in respect of all timing differences that have originated but not reversed at |
| the balance sheet date. |
| Timing differences arise from the inclusion of income and expenses in tax assessments in periods |
| different from those in which they are recognised in financial statements. Deferred tax is measured |
| using tax rates and laws that have been enacted or substantively enacted by the period end and that |
| are expected to apply to the reversal of the timing difference. |
| Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable |
| that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
| Foreign currencies |
| Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at |
| the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of |
| exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at |
| the operating result. |
| Pension costs and other post-retirement benefits |
| The group operates a defined contribution pension scheme. Contributions payable to the group's |
| pension scheme are charged to profit or loss in the period to which they relate. |
| 3. | TURNOVER |
| The turnover and profit before taxation are attributable to the one principal activity of the Group. |
| An analysis of turnover by class of business is given below: |
| Period |
| 1.11.17 |
| to | Year Ended |
| 31.12.18 | 31.10.17 |
| £ | £ |
| 8C Investment Ltd (Registered number: 05863306) |
| Notes to the Consolidated Financial Statements - continued |
| for the Period 1 November 2017 to 31 December 2018 |
| 3. | TURNOVER - continued |
| An analysis of turnover by geographical market is given below: |
| Period |
| 1.11.17 |
| to | Year Ended |
| 31.12.18 | 31.10.17 |
| £ | £ |
| United Kingdom |
| United States of America |
| 4. | EMPLOYEES AND DIRECTORS |
| Period |
| 1.11.17 |
| to | Year Ended |
| 31.12.18 | 31.10.17 |
| £ | £ |
| Wages and salaries |
| Social security costs |
| Other pension costs |
| The average number of employees during the period was as follows: |
| Period |
| 1.11.17 |
| to | Year Ended |
| 31.12.18 | 31.10.17 |
| Distribution staff | 53 | 55 |
| Administrative staff | 28 | 28 |
| Period |
| 1.11.17 |
| to | Year Ended |
| 31.12.18 | 31.10.17 |
| £ | £ |
| Directors' remuneration |
| Directors' pension contributions to money purchase schemes |
| 8C Investment Ltd (Registered number: 05863306) |
| Notes to the Consolidated Financial Statements - continued |
| for the Period 1 November 2017 to 31 December 2018 |
| 4. | EMPLOYEES AND DIRECTORS - continued |
| Information regarding the highest paid director is as follows: |
| Period |
| 1.11.17 |
| to | Year Ended |
| 31.12.18 | 31.10.17 |
| £ | £ |
| Emoluments etc |
| Pension contributions to money purchase schemes |
| 5. | OPERATING PROFIT |
| The operating profit is stated after charging/(crediting): |
| Period |
| 1.11.17 |
| to | Year Ended |
| 31.12.18 | 31.10.17 |
| £ | £ |
| Depreciation - owned assets |
| (Profit)/loss on disposal of fixed assets | ( |
) |
| Goodwill amortisation |
| Auditors' remuneration |
| Foreign exchange differences | ( |
) |
| 6. | EXCEPTIONAL ITEMS |
| Period |
| 1.11.17 |
| to | Year Ended |
| 31.12.18 | 31.10.17 |
| £ | £ |
| Exceptional items | - | 122,365 |
| Exceptional item in previous year was in relation to redress payment received under interest rate |
| hedging product. |
| 8C Investment Ltd (Registered number: 05863306) |
| Notes to the Consolidated Financial Statements - continued |
| for the Period 1 November 2017 to 31 December 2018 |
| 7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
| Period |
| 1.11.17 |
| to | Year Ended |
| 31.12.18 | 31.10.17 |
| £ | £ |
| Bank loan interest |
| Other interest |
| Hire purchase |
| 8. | TAXATION |
| Analysis of the tax charge |
| The tax charge on the profit for the period was as follows: |
| Period |
| 1.11.17 |
| to | Year Ended |
| 31.12.18 | 31.10.17 |
| £ | £ |
| Current tax: |
| UK corporation tax |
| Under/over provision of tax | 40,174 | - |
| Total current tax |
| Deferred tax |
| Tax on profit |
| 8C Investment Ltd (Registered number: 05863306) |
| Notes to the Consolidated Financial Statements - continued |
| for the Period 1 November 2017 to 31 December 2018 |
| 8. | TAXATION - continued |
| Reconciliation of total tax charge included in profit and loss |
| The tax assessed for the period is higher than the standard rate of corporation tax in the UK. The |
| difference is explained below: |
| Period |
| 1.11.17 |
| to | Year Ended |
| 31.12.18 | 31.10.17 |
| £ | £ |
| Profit before tax |
| Profit multiplied by the standard rate of corporation tax in the UK of |
| Effects of: |
| Expenses not deductible for tax purposes |
| Capital allowances in excess of depreciation | ( |
) | - |
| Depreciation in excess of capital allowances | - |
| Adjustments to tax charge in respect of previous periods |
| Additional tax on foreign subsidiary | 17,160 | 13,419 |
| Deferred tax | 56,429 | 7,712 |
| Fair value gain not taxable | (38,454 | ) | - |
| Total tax charge | 346,096 | 212,922 |
| 9. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
| As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company |
| is not presented as part of these financial statements. |
| 10. | DIVIDENDS |
| Period |
| 1.11.17 |
| to | Year Ended |
| 31.12.18 | 31.10.17 |
| £ | £ |
| Equity shares of 1 each |
| Final |
| 8% Non redeemable preference shares of 1 each |
| Final |
| 8C Investment Ltd (Registered number: 05863306) |
| Notes to the Consolidated Financial Statements - continued |
| for the Period 1 November 2017 to 31 December 2018 |
| 11. | INTANGIBLE FIXED ASSETS |
| Group |
| Goodwill |
| £ |
| COST |
| At 1 November 2017 |
| Disposals | ( |
) |
| At 31 December 2018 |
| AMORTISATION |
| At 1 November 2017 |
| Amortisation for period |
| Eliminated on disposal | ( |
) |
| At 31 December 2018 |
| NET BOOK VALUE |
| At 31 December 2018 |
| At 31 October 2017 |
| 12. | TANGIBLE FIXED ASSETS |
| Group |
| Freehold | Long | Plant and |
| property | leasehold | machinery |
| £ | £ | £ |
| COST |
| At 1 November 2017 | 5,252,376 | 103,106 | 121,783 |
| Additions | - | - | 8,590 |
| Reclassification | (2,627,298 | ) | - | - |
| At 31 December 2018 | 2,625,078 | 103,106 | 130,373 |
| DEPRECIATION |
| At 1 November 2017 | 52,524 | 64,897 | 81,240 |
| Charge for period | 5,325 | 15,047 | 19,098 |
| Eliminated on disposal | - | - | - |
| At 31 December 2018 | 57,849 | 79,944 | 100,338 |
| NET BOOK VALUE |
| At 31 December 2018 | 2,567,229 | 23,162 | 30,035 |
| At 31 October 2017 | 5,199,852 | 38,209 | 40,543 |
| 8C Investment Ltd (Registered number: 05863306) |
| Notes to the Consolidated Financial Statements - continued |
| for the Period 1 November 2017 to 31 December 2018 |
| 12. | TANGIBLE FIXED ASSETS - continued |
| Group |
| Fixtures |
| and | Motor | Computer |
| fittings | vehicles | equipment | Totals |
| £ | £ | £ | £ |
| COST |
| At 1 November 2017 | 192,239 | 102,538 | 198,745 | 5,970,787 |
| Additions | 28,434 | 37,845 | 24,941 | 99,810 |
| Disposals | - | (24,135 | ) | (39,262 | ) | (63,397 | ) |
| Reclassification | - | - | - | (2,627,298 | ) |
| At 31 December 2018 | 220,673 | 116,248 | 184,424 | 3,379,902 |
| DEPRECIATION |
| At 1 November 2017 | 158,264 | 83,096 | 179,909 | 619,930 |
| Charge for period | 16,944 | 21,585 | 14,372 | 92,371 |
| Eliminated on disposal | - | (24,135 | ) | (39,262 | ) | (63,397 | ) |
| At 31 December 2018 | 175,208 | 80,546 | 155,019 | 648,904 |
| NET BOOK VALUE |
| At 31 December 2018 | 45,465 | 35,702 | 29,405 | 2,730,998 |
| At 31 October 2017 | 33,975 | 19,442 | 18,836 | 5,350,857 |
| Included within the carrying value of tangible fixed assets is £35,702 (2017: £16,734) relating to the |
| assets held under hire purchase agreements. |
| During the year the company let out 2 freehold properties to non-group companies. These properties |
| are transferred to investment properties. |
| 8C Investment Ltd (Registered number: 05863306) |
| Notes to the Consolidated Financial Statements - continued |
| for the Period 1 November 2017 to 31 December 2018 |
| 13. | FIXED ASSET INVESTMENTS |
| Company |
| Shares in |
| group |
| undertakings |
| £ |
| COST |
| At 1 November 2017 |
| Impairments | ( |
) |
| At 31 December 2018 |
| NET BOOK VALUE |
| At 31 December 2018 |
| At 31 October 2017 |
| The Group or the Company's investments at the Balance Sheet date in the share capital of companies |
| include the following: |
| Subsidiaries |
| CDL Business Services Group Ltd |
| Registered office: England & Wales |
| Nature of business: Property and intermediary holding company |
| % |
| Class of shares: | holding |
| Ordinary | 100.00 |
| The following are the subsidiaries of CDL Business Services Group Ltd. |
| CDL London Ltd |
| Registered office: England & Wales |
| Nature of business: Procurement,storage,fulfi lment and distribution |
| % |
| Class of shares: | holding |
| ordinary | 100.00 |
| Fairway PSD Ltd |
| Registered office: England & Wales |
| Nature of business: Procurement,storage,fulfi lment and distribution |
| % |
| Class of shares: | holding |
| Ordinary | 100.00 |
| 8C Investment Ltd (Registered number: 05863306) |
| Notes to the Consolidated Financial Statements - continued |
| for the Period 1 November 2017 to 31 December 2018 |
| 13. | FIXED ASSET INVESTMENTS - continued |
| CDL Logistic LLC |
| Registered office: USA |
| Nature of business: Procurement,storage,fulfi lment and distribution |
| % |
| Class of shares: | holding |
| Ordinary | 60.00 |
| CDL Logistic LLC is a subsidiary of CDL London Ltd. |
| 14. | INVESTMENT PROPERTY |
| Group |
| Total |
| £ |
| FAIR VALUE |
| Fair value adjustment | 202,391 |
| Reclassification | 2,627,298 |
| At 31 December 2018 | 2,829,689 |
| NET BOOK VALUE |
| At 31 December 2018 | 2,829,689 |
| Fair value at 31 December 2018 is represented by: |
| £ |
| Valuation in 2016 | 2,829,689 |
| If investment property had not been revalued it would have been included at the following historical |
| cost: |
| 31.12.18 | 31.10.17 |
| £ | £ |
| Cost | 2,627,298 | - |
| Aggregate depreciation | (26,273 | ) | - |
| Investment property was valued on an open market basis basis on 31 December 2018 by the directors . |
| 8C Investment Ltd (Registered number: 05863306) |
| Notes to the Consolidated Financial Statements - continued |
| for the Period 1 November 2017 to 31 December 2018 |
| 15. | STOCKS |
| Group |
| 31.12.18 | 31.10.17 |
| £ | £ |
| Stocks | 1,694 | 2,579 |
| 16. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group | Company |
| 31.12.18 | 31.10.17 | 31.12.18 | 31.10.17 |
| £ | £ | £ | £ |
| Trade debtors | 2,000,692 | 1,512,625 |
| Deferred Tax Asset | 23,622 | 20,415 | - | - |
| Other debtors | 76,599 | 1,219 | - | - |
| Amounts owed by group undertakings | - | - |
| Other debtors | 75,232 | 98,667 |
| Directors' current accounts | 103,461 | 20,346 | - | - |
| Prepayments and accrued income | 219,692 | 286,830 |
| 2,499,298 | 1,940,102 |
| Included within trade debtors are factored debt of £1,829,177 ( £2017: £1,399,699) which remains |
| outstanding at the balance sheet date. |
| 17. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group | Company |
| 31.12.18 | 31.10.17 | 31.12.18 | 31.10.17 |
| £ | £ | £ | £ |
| Bank loans and overdrafts (see note 19) | 179,997 | 429,139 |
| Hire purchase contracts (see note 20) | 16,042 | 5,980 |
| Trade creditors | 640,770 | 617,178 |
| Amounts owed to group undertakings | - | - |
| Tax | 213,779 | 181,863 |
| Social security and other taxes | 87,519 | 48,893 |
| Wages | 12,930 | 15,537 | - | - |
| VAT | 263,784 | 148,856 | - | - |
| Other creditors | 163,457 | 124,851 |
| Accruals and deferred income | 334,122 | 319,968 |
| 1,912,400 | 1,892,265 |
| 8C Investment Ltd (Registered number: 05863306) |
| Notes to the Consolidated Financial Statements - continued |
| for the Period 1 November 2017 to 31 December 2018 |
| 18. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
| Group |
| 31.12.18 | 31.10.17 |
| £ | £ |
| Bank loans (see note 19) | - | 234,311 |
| Hire purchase contracts (see note 20) | 13,374 | 6,837 |
| 13,374 | 241,148 |
| 19. | LOANS |
| An analysis of the maturity of loans is given below: |
| Group |
| 31.12.18 | 31.10.17 |
| £ | £ |
| Amounts falling due within one year or |
| on demand: |
| Bank overdrafts | 179,997 | 180,849 |
| Bank loans | - | 248,290 |
| 179,997 | 429,139 |
| Amounts falling due between two and |
| five years: |
| Bank loans - 2-5 years | - | 234,311 |
| 20. | LEASING AGREEMENTS |
| Minimum lease payments fall due as follows: |
| Group |
| Hire purchase contracts |
| 31.12.18 | 31.10.17 |
| £ | £ |
| Net obligations repayable: |
| Within one year | 16,042 | 5,980 |
| Between one and five years | 13,374 | 6,837 |
| 29,416 | 12,817 |
| 8C Investment Ltd (Registered number: 05863306) |
| Notes to the Consolidated Financial Statements - continued |
| for the Period 1 November 2017 to 31 December 2018 |
| 20. | LEASING AGREEMENTS - continued |
| Group |
| Non-cancellable |
| operating leases |
| 31.12.18 | 31.10.17 |
| £ | £ |
| Within one year | 379,678 | 383,670 |
| Between one and five years | 285,440 | 716,070 |
| 665,118 | 1,099,740 |
| 21. | SECURED DEBTS |
| The following secured debts are included within creditors: |
| Group |
| 31.12.18 | 31.10.17 |
| £ | £ |
| Bank overdraft | 179,997 | 180,849 |
| Bank loans | - | 482,601 |
| Hire purchase contracts | 29,416 | 12,817 |
| 209,413 | 676,267 |
| 22. | PROVISIONS FOR LIABILITIES |
| Group |
| 31.12.18 | 31.10.17 |
| £ | £ |
| Deferred tax |
| Accelerated capital allowances | 21,182 | - |
| Other timing differences | 38,454 | - |
| 59,636 | - |
| Other provisions | 46,337 | 42,837 |
| Aggregate amounts | 105,973 | 42,837 |
| 8C Investment Ltd (Registered number: 05863306) |
| Notes to the Consolidated Financial Statements - continued |
| for the Period 1 November 2017 to 31 December 2018 |
| 22. | PROVISIONS FOR LIABILITIES - continued |
| Group |
| Deferred | Other |
| tax | provisions |
| £ | £ |
| Balance at 1 November 2017 | - | 42,837 |
| Charge to Statement of Comprehensive Income during period | 59,636 | 3,500 |
| Balance at 31 December 2018 | 59,636 | 46,337 |
| Other provision is in respect of amount required to restore leased premises to their original condition |
| upon expiry of the lease term together with the amount relating to other dilapidation accruing |
| throughout the period of occupation. |
| 23. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 31.12.18 | 31.10.17 |
| value: | £ | £ |
| Equity | 1 | 4,000 | 4,000 |
| 8% Non redeemable preference | 1 | 1,500,000 | 1,500,000 |
| 1,504,000 | 1,504,000 |
| 24. | NON-CONTROLLING INTERESTS |
| Minority interests in the net assets of consolidated subsidiaries are identified separately from the |
| Group’s equity. Minority interests consist of the amount of those interests at the date of the original |
| business combination and the minority’s share of changes in equity since the date of the combination. |
| The proportions of profit or loss and changes in equity allocated to the owners of the parent and to the |
| minority interests are determined on the basis of existing ownership interests and do not reflect the |
| possible exercise or conversion of options or convertible instruments. |
| 8C Investment Ltd (Registered number: 05863306) |
| Notes to the Consolidated Financial Statements - continued |
| for the Period 1 November 2017 to 31 December 2018 |
| 25. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
| The following advances and credits to directors subsisted during the period ended 31 December 2018 |
| and the year ended 31 October 2017: |
| 31.12.18 | 31.10.17 |
| £ | £ |
| Mr NA Riley |
| Balance outstanding at start of period | 20,000 | 20,000 |
| Amounts advanced | 25,346 | - |
| Amounts repaid | (20,000 | ) | - |
| Amounts written off | - | - |
| Amounts waived | - | - |
| Balance outstanding at end of period | 25,346 | 20,000 |
| Mr HC Patel |
| Balance outstanding at start of period | - | 17,848 |
| Amounts advanced | 48,114 | - |
| Amounts repaid | - | (17,848 | ) |
| Amounts written off | - | - |
| Amounts waived | - | - |
| Balance outstanding at end of period | 48,114 | - |
| Mr SP Durack |
| Balance outstanding at start of period | - | - |
| Amounts advanced | 30,000 | - |
| Amounts repaid | - | - |
| Amounts written off | - | - |
| Amounts waived | - | - |
| Balance outstanding at end of period | 30,000 | - |
| Interest is charged at 3% on any outstanding balance. Mr NA Riley Mr SP Durack and Mr HC Patel repaid |
| the outstanding balance after the period end. |
| 26. | RELATED PARTY DISCLOSURES |
| Please see note 4 for key management remuneration. |
| Entities over which the entity has control, joint control or significant influence |
| 31.12.18 | 31.10.17 |
| £ | £ |
| Sales | 254,125 | 473,667 |
| Amount due from related party | 122,140 | 124,539 |