ACCOUNTS - Final Accounts preparation
ACCOUNTS - Final Accounts preparation
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Registered number:
FOR THE YEAR ENDED 31 MARCH 2020
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THE EXCLUSIVE SERVICES GROUP LIMITED
CONTENTS
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THE EXCLUSIVE SERVICES GROUP LIMITED
COMPANY INFORMATION
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THE EXCLUSIVE SERVICES GROUP LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2020
The directors present their strategic report for the year ended 31 March 2020.
The Exclusive Services Group Ltd has again achieved a solid performance and continues to deliver on key strategic objectives. Our flexible & agile Strategic Plan which is based on a new and wider sector portfolio of clients, has resulted in our business being in a strong place to grow both our service offering as well as reflecting the changing world in which we live.
Across the period, and in no small measure due to our agile and flexible approach, we have continued to diversify and develop a strong customer base enabling us to adjust positively after a large client had effectively and unexpectedly taken the majority of their contract work in-house. However, we remained upbeat and optimistic based on our internal review and planning, which resulted in the group continuing to retain our customers by improving the service offering and demonstrating success by being adaptable as well as focussed on our clients' culture & their guests and customers. In assisting to ensure clients that their business could continue to perform, which has become only too relevant in recent times, we further developed our approach which has been consistently successful in markets such as Retail, Media and Leisure, Commercial and Education. We targeted and approached the market sectors identified as part of our strategy and can now also confirm the addition of Events, Logistics, Pharma, Theatres and Managing Agents to our portfolio. Additionally, the performance of Brayborne has continued to exceed expectations and our growth in both the Education and Commercial markets continued to develop in an extremely positive fashion. Our strategy of being agile and innovative whilst retaining our historical service ethos has resulted in a changing process that is not only contemporary and dynamic, but also preserves our founders' valued principles. With our customers at the heart of our decision making, we are therefore able to reflect the needs of our market sectors in changing quickly and decisively where needed. Internally, we completed a process that involved all of our salaried staff in taking advantage of time to review our culture and offering as a group. We have always sought to deliver a value-added, flexible and sustainable service. For that reason, we have long standing relationships which have lasted up to 15 years with clients based on knowledge and trust. We will continue to guard and maintain that founding principle of trust in designing and providing bespoke services that fit with every client culture and need, whatever the size or nature of their business. The result of our internal review is that we will now enhance our historical ethos in delivering service excellence in a dynamic manner which adds value to our clients, our team and our reputation. By also making a difference to our customers and community in an efficient and transparent manner we will also engender further trust and growth. In doing so we will demonstrate the living of our new culture approach which will be defined by P.R.I.D.E (People, Respect, Integrity, Development, Efficiency) and will continually seek to inspire and drive efficiency innovation and trust in professional hygiene services. We invested further as planned with additions in Group Business Development and Marketing. This will see further growth in identified and targeted sectors as well as continued advancement in the fields of Solutions, Best Practise, Innovation and Continuous Improvement, which continue to operate as separate departmental entities within the group. As a result, we are now able to offer clients a number of exciting innovations aligned to our previous service offerings, culture and ethos which remains driven by service excellence. This will continue and indeed become even more focussed given we now also have a number of both internal and external projects which are extremely exciting in continuing to shape the flexible and agile nature of our business approach. Indeed, we have two projects that are aligned to the difficulties that we have all faced as a country over the past year which we firmly believe will allow us to serve our client base in a new and most appropriate manner in heightening hygienic confidence. |
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THE EXCLUSIVE SERVICES GROUP LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
Our continued belief and significant investment into the training and development of our team through our own internal Exclusive Learning & Development Centre near Swindon, has resulted in the further advancement of our management & coaching process which is wholly aligned to developing methodology and new technology. We have further invested in a new & contemporary website, new client and staff portal and a new payroll and reporting suite in which ‘confirmation of clean’ & transparency of approach are key to our client base. Our Health & Safety record remains positive and consistent with significant emphasis being placed on the approach and led by the Senior Team. This approach continues to prosper with further investment in a new Group Health & Safety Manager and with the additional development of processes such as Qual 50 that have also assisted in the group retaining all of our accreditations and fulfilling our projection of achieving ISO 45001 in December 2020.
Finally, we have completed a full review of our internal Sustainability & Environmental pledges with the result that we have reduced our chemical dependency and we are now reviewing the production of some ‘own label’ cleaning products that will further enhance our environmental conscience. This year we will again complete competitive tenders with our major supply chain in ensuring that we achieve the best value possible whilst retaining best in class service. In terms of fiscal policy and management, our debt management strategy coupled to a long term and reciprocal relationship with our bankers at Barclays Bank remain extremely positive and both our cashflow and stability remain very strong. Throughout the pandemic and as part of our management approach, we have taken prudent contingency decisions and ensured that all of our salaried and operational staff were given regular, heightened and updated information on our approach to COVID-19. Our approach in ensuring staff safety was key, resulted in the development of an E.R.T (Emergency Response Team) which met fortnightly to ensure that our knowledge in regard to the changes taking place across the country were known and subsequently reacted to appropriately and quickly. Flexibility in regard to mental health and wellbeing have also been a major part of our approach in which we have been extremely proactive in terms of seeking to assist staff in working from home where required, and also assisting our team and their families with security and any additional concerns. As part of our community approach, we assisted three care homes (who were not clients but were both well-known and based close to our offices) with a significant FOC delivery of COVID-19 PPE and supplies. We are now in discussion with two charities in ensuring that our community approach remains both consistent and appropriate to both current & future wellbeing requirements. We remain active on the boards of The Cleaning & Support Services Association, The Worshipful Company of Environmental Cleaners and this year, we will also be responsible for the Chairmanship of The British Cleaning Council as we continue to be passionate in playing a significant role in the drive for national recognition of the industry, the increased perception of professionalism within our sector given the COVID-19 pandemic and the importance of our service in day-to-day life. Our performance retains full Board support in terms of shareholder optimism, future growth and investment plans based on the Group Strategic Plan. We remain ‘as one’ in the application of prudency in our approach to all matters operational and financial and continue to look forward with great optimism to the next chapter of our plan and specifically into the development and results of our current internal projects. The Audited accounts have been reviewed by the Board and Company Shareholders and we will encourage review by our company’s Bankers and related parties as seen fit and appropriate. The Directors and Shareholders remain both focused on and confident that the Group will deliver planned sustainable growth and success. |
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THE EXCLUSIVE SERVICES GROUP LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
The directors of the Group are mindful of their responsibilities under section 172 of the Companies Act 2006 to promote the success of the business through operating in accordance with good corporate practice and with considered engagement with the Group's stakeholders.
100% of the Group's shareholders are also directors of the Group, and are therefore actively involved in all key decision-making. The board of directors regularly review and identify other principal stakeholders of the business, and decisions in respect of the Group's activities are made only after reviewing, and discussing, the potential impact on those stakeholders. The directors continue to foster open and constructive engagement with the employees of the business in order to fairly represent the views of the workforce in matters affecting their interests, as can be demonstrated by this year's internal project and review. The Group's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employee's interests. Information of matters of concern to employees is given through regular information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial, economic and external factors affecting the Group's performance. Again, there is tangible demonstration of this approach throughout the year. Furthermore, in terms of engagement with the Group's counterparty suppliers, the directors continue to actively monitor ethical standards, employment conditions and environmental issues to ensure that the business is compliant with global standards. |
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THE EXCLUSIVE SERVICES GROUP LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
The Group uses various financial instruments including items, such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the Group's operations.
The existence of these financial instruments exposes the Group to a number of financial risks, which are described in more detail below. The main risks arising from the Group's financial instruments are adverse cash flow and customer bad debts. The directors review and agree policies for managing each of these risks and they are summarised as follows; Liquidity The Group manages its cash and borrowing requirements in order to ensure the Group has sufficient liquid resources to meet the operating needs of the business. This is reviewed on a very regular basis and as part of the Board meeting agenda in order to ensure all requirements, projections and trends are properly and professionally planned and reflected. Interest rate rise risk The Group finances its operations through a mixture of retained profits and funds held by bank institutions. The Group currently holds two bank loans. Credit risk The Group's principal financial assets are cash and trade debtors. The credit risk associated with the cash is limited as the counterparties are commercial banks. The principal credit risk arises therefore from its trade debtors which are reviewed on a regular basis to ensure credit terms are adhered to. Credit risk is reviewed on a regular basis and as part of the Board meeting agenda whereby provision is made for doubtful debts as necessary. These policies remain unchanged from previous years. |
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THE EXCLUSIVE SERVICES GROUP LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
The directors consider that the key financial performance indicators of the Group are those that communicate the financial performance of the Group as a whole, being turnover and gross profit margin.
The turnover of the Group in 2020 was £18,862,960, a decrease of 60.7% compared to the previous year. The gross profit margin has increased from 17.1% in 2019 to 20.0% in 2020. During the year the Group's review on all operational and contract costs was the subject of a much more increased focus and in all cases, supplier contracts were, or are being, reviewed or retendered in order to ensure that industry benchmarks were maintained and our 'value added' approach was consistent throughout the business. In addition, our approach to ensuring equipment is best in class is being reviewed and again all suppliers are taking part in a market review and retender. All of these aspects and the regular internal review processes have and will continue to contribute to the improvement in gross profit margin. Other non-financial key performance indicators In terms of our demonstration in relation to equality and diversity, I am delighted to report that our Executive Board is 50% male & female. In addition our Senior Operations Team is also made up of 50% male and female colleagues. Furthermore, in relation to Community work, we have introduced a new Non-transactional Programme which allows us the opportunity to assist in the local communities. Our contract client audit performance remains high across our major client base We have retained all of our accreditations achieving our stated aim, and also been newly accredited under ISO 27001.
This report was approved by the board and signed on its behalf.
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THE EXCLUSIVE SERVICES GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2020
The directors present their report and the financial statements for the year ended 31 March 2020.
The profit for the year, after taxation, amounted to £65,532 (2019 - £1,056,988).
Dividends declared during the year amounted to £nil (2019: £533,333).
The directors who served during the year were:
The Group expects trading patterns to change significantly due to the COVID-19 pandemic in the short term but continues to explore new opportunities through its existing 'development and solutions' approach. We have already seen growth throughout the latter part of the lockdown.
In April 2020 the Group agreed a £1.00m Business Interruption loan with Barclays Bank in order to assist the cashflow of the business.
Since the balance sheet date the Group has made claims under the Coronavirus Job Retention Scheme totalling £1.57m in order to protect employment within the business. Other matters On 30 January 2020 the World Health Organisation declared Coronavirus (COVID-19) a public health emergency. There are no comparable recent events which may provide guidance as to the effect of the spread of COVID-19 and a potential pandemic, and, as a result, the ultimate impact of the COVID-19 outbreak or similar health epidemic is highly uncertain and subject to change. |
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THE EXCLUSIVE SERVICES GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
This report was approved by the board and signed on its behalf.
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THE EXCLUSIVE SERVICES GROUP LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2020
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.
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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Group's financial statements and then apply them consistently;
∙make judgments 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 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.
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THE EXCLUSIVE SERVICES GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS, AS A BODY, OF THE EXCLUSIVE SERVICES GROUP LIMITED
FOR THE YEAR ENDED 31 MARCH 2020
We have audited the financial statements of The Exclusive Services Group Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 March 2020, which comprise the Group Profit and Loss Account, the Group and Company Balance Sheets, the Group Statement of Cash Flows, the Group and 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 Auditor's 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.
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 or the parent Company'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.
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THE EXCLUSIVE SERVICES GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS, AS A BODY, OF THE EXCLUSIVE SERVICES GROUP LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
The directors are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Auditor's Report 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.
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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THE EXCLUSIVE SERVICES GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS, AS A BODY, OF THE EXCLUSIVE SERVICES GROUP LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
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 Group 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 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.
for and on behalf of
Chartered Accountants
Statutory Auditor
16 Great Queen Street
Covent Garden
W1G 9DQ
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THE EXCLUSIVE SERVICES GROUP LIMITED
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2020
There are no items of other comprehensive income for either the year or the prior year other than the profit for the year. Accordingly, no statement of other comprehensive income has been presented.
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CONSOLIDATED BALANCE SHEET
AS AT 31 MARCH 2020
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 19 to 39 form part of these financial statements.
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COMPANY BALANCE SHEET
AS AT 31 MARCH 2020
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 19 to 39 form part of these financial statements.
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THE EXCLUSIVE SERVICES GROUP LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2020
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THE EXCLUSIVE SERVICES GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2020
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THE EXCLUSIVE SERVICES GROUP LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2020
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THE EXCLUSIVE SERVICES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
The Exclusive Services Group Limited is a private company limited by shares and incorporated in England and Wales. The address of its registered office and principal place of business is Prospect Place, Great North Road, Hatfield, AL9 5DA.
The financial statements are presented in Sterling (£).
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 judgment 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 Profit and Loss Account in these financial statements.
The following principal accounting policies have been applied:
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 Profit and Loss Account from the date on which control is obtained. They are deconsolidated from the date control ceases. In accordance with the transitional exemption available in FRS 102, the group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 01 April 2015. |
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THE EXCLUSIVE SERVICES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
2.Accounting policies (continued)
At 31 March 2020 the Group had net current assets totalling £2,742,178 (2019: £2,588,802), and had net assets overall of £4,634,341 (2019: £4,568,809). Despite a significant decrease in turnover, based on a large customer essentially, and unexpectedly, taking the majority of their work in-house, the Group recorded a profit of £65,532 for the year (2019: £1,056,988). The Group therefore had a strong balance sheet at 31 March 2020.
On 30 January 2020 the World Health Organisation declared Coronavirus (COVID-19) a public health emergency. Following the outbreak of COVID-19 the Group took advantage of some of the economic measures put in place by the UK Government and the Group adapted its operations and overhead base accordingly. The Group agreed a £1.00m Business Interruption loan with Barclays in April 2020 in order to support the cashflow of the business. The Group has also made claims to date under the Coronavirus Job Retention Scheme totalling £1.57m in order to protect employment within the business. After reviewing the Group's budgets, forecasts and cashflows in light of the impact of COVID-19, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence and meet its liabilities as they fall due for the foreseeable future, being a period of at least twelve months from the date these financial statements were approved. As at the date of approval of these financial statements the Group had cash resources available to draw on totalling £1.83m in order to support the business going forward. Accordingly, they continue to adopt the going concern basis in preparing the financial statements. |
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THE EXCLUSIVE SERVICES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
2.Accounting policies (continued)
Grants of a revenue nature are recognised in the Consolidated Profit and Loss Account in the same period as the related expenditure. |
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THE EXCLUSIVE SERVICES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
2.Accounting policies (continued)
The tax expense for the year comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
Current tax is the amount of income tax payable in respect of taxable profit for the year or prior years. The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company operates and generates income. Deferred tax arises from timing differences that are differences between taxable profits and total comprehensive income as stated in the financial statements. These timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements. Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Goodwill
Other intangible assets
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.
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THE EXCLUSIVE SERVICES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
2.Accounting policies (continued)
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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THE EXCLUSIVE SERVICES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
2.Accounting policies (continued)
The Group has elected to apply Sections 11 and 12 of FRS 102 in respect of financial instruments.
Financial assets and financial liabilities are recognised when the Group becomes party to the contractual provisions of the instrument. 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. The Group’s policies for its major classes of financial assets and financial liabilities are set out below.
Financial assets
Basic financial assets, including trade and other debtors, cash and bank balances, intercompany working capital balances, and intercompany financing are initially recognised at transaction price, 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 for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate. Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.
Financial liabilities
Basic financial liabilities, including trade and other 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 for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
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THE EXCLUSIVE SERVICES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
2.Accounting policies (continued)
Impairment of financial assets
Financial assets measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit and loss account. For financial assets measured at cost less impairment, the impairment loss is measured as the difference between the asset's carrying amount and the best estimate of the amount the company would receive for the asset if it were to be sold at the reporting date. For financial assets measured at amortised cost, the impairment loss is measured as the difference between the asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If the financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. 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 and financial liabilities
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.
Offsetting of financial assets and financial liabilities
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an 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. |
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THE EXCLUSIVE SERVICES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. (i) Useful economic lives of tangible assets The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 16 for the carrying amount of the tangible assets and note 2.13 for the useful economic lives for each class of asset. (ii) Impairment of debtors The Group makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. See note 19 for the net carrying amount of the debtors. |
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THE EXCLUSIVE SERVICES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
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THE EXCLUSIVE SERVICES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
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THE EXCLUSIVE SERVICES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
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THE EXCLUSIVE SERVICES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
12.Taxation (continued)
A reduction to the UK corporation tax rate to 17%, effective from 1 April 2020, was substantively enacted as part of the Finance (No. 2) Act 2016 on 6 September 2016. Deferred taxes at the balance sheet date have been measured using the enacted tax rates based on when the timing difference is expected to reverse and reflected in these financial statements.
In November 2019, the Prime Minister announced that he intended to cancel the future reduction in corporation tax rate from 19% to 17%. On 11 March 2020, the Chancellor of the Exchequer announced that legislation would be passed to retain the current 19% rate in April 2020. |
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THE EXCLUSIVE SERVICES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Profit and Loss Account in these financial statements. The profit after tax of the parent Company for the year was £
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THE EXCLUSIVE SERVICES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
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THE EXCLUSIVE SERVICES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
16.Tangible fixed assets (continued)
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THE EXCLUSIVE SERVICES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
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THE EXCLUSIVE SERVICES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
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THE EXCLUSIVE SERVICES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
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THE EXCLUSIVE SERVICES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
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THE EXCLUSIVE SERVICES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
Other reserves
Profit and loss account
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 £243,396 (2019: £286,529). Contributions totalling £152,943 (2019: £46,905) were payable to the fund at the balance sheet date.
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THE EXCLUSIVE SERVICES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
Since the balance sheet date the Group has made claims under the Coronavirus Job Retention Scheme totalling £1.57m in order to protect employment within the business.
G Evans is the Group's ultimate controlling party by virtue of members of his family's interest in the share capital of the Parent Company.
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