ACCOUNTS - Final Accounts preparation
ACCOUNTS - Final Accounts preparation
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Registered number:
FOR THE YEAR ENDED 31 MAY 2021
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ETHOS GROUP HOLDINGS LIMITED
COMPANY INFORMATION
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ETHOS GROUP HOLDINGS LIMITED
CONTENTS
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ETHOS GROUP HOLDINGS LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2021
The Group is one of the largest independent and privately owned specialist providers of managed print, document and integrated solutions in the UK Headquartered in the City of London with five regional offices in England & Wales and operates across 40 countries, partnering with leading document and software solution providers.
The results for Ethos Group Holdings Limited and its subsidiaries are set out on page 10.
The year’s results show turnover of £32m and GP of £14m and EBITDA of £3.7m. Although this is lower than the year ending May-20 the Group is pleased with the results which shows we managed the business well though a period of economic turbulence and have maintained a good level of EBITDA profitability despite COVID-19 impacting all of the financial year. Ethos Group will continue to innovate and explore new recurring revenue streams to further develop and protect it's core activities. Digitisation, software and IT services represent not only an extension of the Group's core activities but meets the growing needs of a lot of organisations to not only centralise information and make it available to a disparate work force, but to improve business and process efficiences. Ethos are supporting their exisiting and prospective clients to develop and execute their digitisation strategies and providing a clear path forward for those businesses who recognise the need for change. Whilst there has been a necessary focus on trading through a global pandemic in this financial year the business has also considered and formed it strategies in the short to medium term. The Group completed the following acquisitions in the year: Century Mobile Limited Group acquired Century Mobile Limited on 28th February 2021 a small telecoms company to bolster trading of Ethos Voice and Data Solutions Limited. Ethos Voice and Data Holdings Limited On 28th February 2022, the Group sold its majority shareholding in Ethos Voice and data Holdings Limited for a total consideration of £7.8m realising £6.2m for its 80% share holding. Purchase of Objective Technologies Limited On 15th July 2022, the Group purchased Objective Technologies Limited, an IT services based in Hampshire for consideration of £250K for its 100% share capital.
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ETHOS GROUP HOLDINGS LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2021
Financial risk management objectives and policies
The Group's principal financial instruments comprise of bank balances, trade debtors, trade creditors, hire purchases, finance leases and amounts due to group undertakings that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the Group's operations. Due to the nature of the financial instruments used by the Group, there is no exposure to currency risk. The directors are aware of the risks associated with a growing business and have implemented business process and management review policies to ensure that there is full visibility and managerial responsibility for the effect of gross margin and overheads on the business. Liquidity risk Management closely monitors available bank and other credit facilities in comparison to the Group's outstanding commitments on a regular basis to ensure that the Group has sufficient funds to meet its obligations as they fall due. The Board receives regular debt management and cash forecasts which estimate the cash inflows and outflows over the next eighteen months, so that management can ensure that sufficient financing can be arranged as it is required. In addition, management monitors cash outflows on interest payments closely to ensure that the Group minimises its exposure to fluctuating interest rates. Credit risk Trade debtors are managed in respect of credit risk by policies relating to the credit offered to customers and the regular monitoring of amounts owed. Coronavirus The Covid-19 pandemic has impacted the businesses revenues. Fortunately the Ethos Group has a varied portfolio of revenue streams and products where sales have not been impacted. This has put us in a robust position to minimise and mitigate the impact of the pandemic on the groups performance. There has been a focus on maintaining liquidity through tight control of overheads, cashflow management and the utilisation of some government schemes.
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ETHOS GROUP HOLDINGS LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2021
The directors review and monitor all aspects of the business but consider that turnover, gross profit, EBITDA and EBITDA margins are the key performance: indicators for the business. There are a number of operational KPIs that support these main ones particularly around service and performance.
The table below summarises the key performance indicators: KPI 2021 Turnover £000s 31,757 Gross profit £000s 14,398 Gross profit % 45.3% EBITDA £000s 3,689 EBITDA margin % 11.6% The Board are happy that the group continue to achieve heatlhy margins and are confident that it will continue to maintain these margins.
This report was approved by the board on 27 July 2022 and signed on its behalf.
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ETHOS GROUP HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2021
The directors present their report and the financial statements for the year ended 31 May 2021.
The directors who served during the year were:
The loss for the year, after taxation and minority interests, amounted to £2,666,951 (2020 - loss of £281,933).
Final dividend payment was made of £331,820.
The Group plans to continue to grow across all business activities, capitalising on opportunites as deemed appropriate.
Sale of Ethos Voice and Data Holdings Limited
On 28th February 2022, the Group sold its majority shareholding in Ethos Voice and data Holdings Limited for a total consideration of £7.8m realising £6.2m for its 80% share holding. Purchase of Objective Technologies Limited On 15th July 2022, the Group purchased Objective Technologies Limited, an IT services based in Hampshire for consideration of £250K for its 100% share capital.
The Group keeps employees informed of matters affecting them as employees and the financial and economic factors affecting the performance of the Group by the method of ad-hoc internal communications.
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ETHOS GROUP HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2021
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 Statement of Comprehensive Income 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;
∙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.
Under section 487(2) of the Companies Act 2006, Price Bailey LLP will be deemed to have been reappointed as auditors 28 days after these finacial statements were sent to member or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
This report was approved by the board on
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ETHOS GROUP HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ETHOS GROUP HOLDINGS LIMITED
We have audited the financial statements of Ethos Group Holdings Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 May 2021, which comprise the Group Statement of Comprehensive Income, 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 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.
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ETHOS GROUP HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ETHOS GROUP HOLDINGS LIMITED (CONTINUED)
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.
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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ETHOS GROUP HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ETHOS 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:
We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates and considered the risk of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations. This included those regulations directly related to the financial statements, including financial reporting, tax legislation and industry regulations including GDPR, employment law, health and safety and warranties. We communicated the identified laws and regulations with the audit team and remained alert to any indications of non-compliance throughout the audit. We carried out specific procedures to address the risks identified. These included the following: • agreeing the financial statement disclosures to underlying supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; • enquiries of management including those responsible for key regulations; • performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; In addressing the risk of management override of controls, we carried out testing of journal entries and other adjustments for appropriateness, assessing whether the judgements made in making accounting estimates are indicative of a potential bias and evaluating the business rationale of significant transactions outside the normal course of business. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation as to what extent the audit was considered capable of detecting irregularities, including fraud.
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.
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ETHOS GROUP HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ETHOS GROUP HOLDINGS LIMITED (CONTINUED)
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
Tennyson House
Cambridge Business Park
CB4 0WZ
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ETHOS GROUP HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2021
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ETHOS GROUP HOLDINGS LIMITED
REGISTERED NUMBER: 04623246
CONSOLIDATED BALANCE SHEET
AS AT 31 MAY 2021
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ETHOS GROUP HOLDINGS LIMITED
REGISTERED NUMBER: 04623246
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 MAY 2021
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 27 July 2022.
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ETHOS GROUP HOLDINGS LIMITED
REGISTERED NUMBER: 04623246
COMPANY BALANCE SHEET
AS AT 31 MAY 2021
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2021
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2020
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2021
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COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2021
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ETHOS GROUP HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2021
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ETHOS GROUP HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2021
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ETHOS GROUP HOLDINGS LIMITED
CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 MAY 2021
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ETHOS GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2021
Ethos Group Holdings Limited ("the Company") and its subsidiaries (together "the group") had the following principal activities during the year.
The principal activity of Ethos Group Holdings Limited continued to be that of a holding company. The principal activities of the subsidiary companies continued to be the provision of equipment, solutions, services, consumables, digital document print, copy and management systems. The company is a private company limited by shared incorporated in England and Wales. Its registered address is 72 Leadenhall Market, London, EC3V 1LT.
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 Statement of Comprehensive Income in these financia
statements.
The level of rounding applied is to the nearest £. 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 Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.
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ETHOS GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2021
2.Accounting policies (continued)
The group's business activities, together with the factors likely to affect its future development, its financial position, financial risk management objectives, details of its financial instruments and derivative activities, and it its exposures to price, credit, liquidity and cash flow risk are described in the Strategic Report on pages 1 to 2.
The directors have considered the going concern basis of preparation of the financial statements, noting the result for the year, forecasts and plans going forward. The directors consider that the Company and Group have sufficient working capital and cash reserves to enable the company to continue trading for the forseeable future and, on the basis of cash flow information prepared, will be sufficient for the company's needs. The companies development, its financial position, financial risk management objectives, details of its business activities, together with the factors likely to affect its future financial instruments and derivative activities, and its exposures to price, credit, liquidity and cash flow risk. The Company has considerable financial resources together with long-term contracts with a number of customers and suppliers across different geographic areas and industries. As a consequence, the directors believe that the Group is well placed to manage its business risks successfully despite the current uncertain economic outlook.
The group have restructured its banking facilities following a decision to repay £3.5m of its banking loans in 2022, the repayment was funded by the proceeds from the sale of Ethos Voice and Data Holdings which afforded the Group sufficient liquidity to do so. The repayment has significantly reduced the Group’s debt service commitments, its Gross Leverage and total debt. Working with the bank revised covenant levels have been agreed and the forecasts show they will be met. The forecasts have been independently reviewed.
After making enquiries, the directors have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future. On this basis, the directors consider it appropriate to prepare the financial statements on the going concern basis.
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ETHOS GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2021
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
Turnover on the sale of digital document printing, copying and management systems is recognised when an order is confirmed during the period and is either: 1) Installed during the period, or; 2) Would have been installed during the period but for a delay in delivery to meet the commercial objectives of the customer, or; 3) If relating to meterage, is recognised in the period in which it relates. All maintenance, service income, terminations and commissions are credited to the statement of income and retained earnings in the period to which the income relates.
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ETHOS GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2021
2.Accounting policies (continued)
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ETHOS GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2021
2.Accounting policies (continued)
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ETHOS GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2021
2.Accounting policies (continued)
Goodwill
Customer contracts Customer contracts are valued at fair value using the Multi Period Excess Earnings method. Subsequent to initial recognition they are measured at cost less accumulated amortisation and accumulated impairment losses. Customer contracts are amortised on a straight line basis to the consolidated statement of comprehensive income over their useful economic life.
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 thirteen years.
The estimated useful lives range as follows: Customer contracts - 7 years Goodwill - 10-13 years Customer database - 7 years
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ETHOS GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2021
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 the Statement of Comprehensive Income.
The majority of stock relates to consumable parts that are held at customers premises. This stock is expensed to the profit and loss account as it is used up by the customer.
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ETHOS GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2021
2.Accounting policies (continued)
Provisions are charged as an expense to the Statement of Comprehensive Income in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the Balance Sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Balance Sheet.
Page 28
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ETHOS GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2021
2.Accounting policies (continued)
Critical judgements - Acquisition accounting judgements Judgements are made with respect to the fair value of the net assets acquired and the purchase consideration, by way of the due diligence procedure carried out prior to the acquisition. The valuation of intangibles arising have been prepared by external valuation specialists using the appropriate valuation methodology for the specific asset. Critical accounting estimates and assumptions The group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related acual results. The estimates and assumption 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 reassessed 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 tangible assets and note 2.16 for the useful economic lives for each class of assets. 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. iii) Stock Consumable stocks held at customer premises are expensed to the profit and loss account as they are used. The group makes an estimate of the estimated useful life/usage of the consumable stock. See note 18 for the carrying value of stock.
Page 29
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ETHOS GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2021
The whole of the turnover is attributable to the principal activity of the group.
Analysis of turnover by country of destination:
Page 30
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ETHOS GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2021
Page 31
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ETHOS GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2021
Page 32
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ETHOS GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2021
11.Taxation (continued)
There were no factors that may affect future tax charges.
Page 33
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ETHOS GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2021
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. The loss after tax of the parent Company for the period was £
Page 34
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ETHOS GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2021
Page 35
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ETHOS GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2021
Page 36
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ETHOS GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2021
Page 37
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ETHOS GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2021
Page 38
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ETHOS GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2021
Obligations under finance lease and hire purchase contracts of £8,583 (2020 - £110,885) are secured on the assets to which they relate.
The bank loan of £11,760,942 (2020 - £14,490,100) are secured by a debenture. Security has also been provided by fellow subsidiary companies included within the Group.
Page 39
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ETHOS GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2021
Page 40
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ETHOS GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2021
Page 41
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ETHOS GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2021
Page 42
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ETHOS GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2021
Share premium account
Capital redemption reserve
Merger Reserve
Profit and loss account
Page 43
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ETHOS GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2021
Page 44
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ETHOS GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2021
30.Business combinations (continued)
Ethos Group Holdings Limited, Ethos Communication Solutions Limited and Ethos Document Solutions Limited are part of a group VAT registration and as a result, each company is jointly and severally liable for the VAT liabilities of the other members of the VAT group.
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 £185,583 (2020 - £253,616). Contributions totalling £24,861 (2020 - £25,192) were payable to the fund at the balance sheet date and are included in creditors.
Page 45
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ETHOS GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2021
During the year, the following amounts were advanced to and repaid by the directors. No interest has been charged on the loans:
Paul Norris - Advanced £NIL (2020 - £998,354) and repaid £NIL (2020 - £200,000) Barry Matthews - Advanced £265,291 (2020 - £299,005) and repaid £NIL (2020 - £200,000) Joel Sapiro - Advanced £296,593 (2020 - £192,003) and repaid £296,593 (2020 - £178,003) Sharon Yavuz - Advanced £14,000 (2020 - £24,000) and repaid £NIL (2020 - £NIL) Michelle Norris - Advanced £NIL (2020 - £29,492) and repaid £736,970 (2020 - £NIL) Paul Norris resigned as a director in September 2019 transferring all amounts owed to directly to Michelle Norris. At the year end the following amounts were owed to the company by the following directors: Paul Norris - £NIL (2020 - Owed to £1,384,773) Barry Matthews - £504,182 (2020 - £274,118) Sharon Yavuz - £143,423 (2020 - £129,423) Michelle Norris - Owed to £618,311 (2020 - £29,492)
Page 46
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ETHOS GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2021
On 28th February 2022, the Group sold its majority shareholding in Ethos Voice and data Holdings Limited for a total consideration of £7.8m realising £6.2m for its 80% share holding. Purchase of Objective Technologies Limited On 15th July 2022, the Group purchased Objective Technologies Limited, an IT services based in Hampshire for consideration of £250K for its 100% share capital.
The ultimate controlling party is Michelle Norris.
Page 47
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