TSquared Group Limited - Limited company accounts 20.1
TSquared Group Limited - Limited company accounts 20.1
| REGISTERED NUMBER: SC242071 (Scotland) |
| Group Strategic Report, Report of the Directors and |
| Consolidated Financial Statements For The Year Ended 31 March 2021 |
| for |
| TSQUARED GROUP LIMITED |
| TSQUARED GROUP LIMITED (REGISTERED NUMBER: SC242071) |
| Contents of the Consolidated Financial Statements |
| For The Year Ended 31 March 2021 |
| Page |
| Company Information | 1 |
| Group Strategic Report | 2 |
| Report of the Directors | 4 |
| Report of the Independent Auditors | 6 |
| Consolidated Income Statement | 9 |
| Consolidated Other Comprehensive Income | 10 |
| Consolidated Balance Sheet | 11 |
| 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 | 17 |
| TSQUARED GROUP LIMITED |
| Company Information |
| For The Year Ended 31 March 2021 |
| DIRECTORS: |
| SECRETARY: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| Statutory Auditor |
| 29 Brandon Street |
| Hamilton |
| ML3 6DA |
| BANKERS: | Bank of Scotland |
| 41 Princes Mall |
| East Kilbride |
| G74 1LS |
| TSQUARED GROUP LIMITED (REGISTERED NUMBER: SC242071) |
| Group Strategic Report |
| For The Year Ended 31 March 2021 |
| The directors present their strategic report of the company and the group for the year ended 31 March 2021. |
| REVIEW OF BUSINESS |
| A summary of the results of trading for the 31 March 2021 is provided within the attached financial statements. |
| The directors are pleased with the results achieved by the group during the year. |
| Based on a year to year comparison of the results of the group: |
| - Turnover increased by 61% to £45,764,254 from £28,366,110, |
| - Gross profit increased to £10,863,157 (24%) from £7,429,232 (26%), and |
| - Net profit increased to £8,518,036 (19%) from £5,382,380 (19%). |
| Overall, the group has achieved growth in turnover and profitability during the year. |
| The directors consider the group to be in a healthy financial position at the year end. |
| The group's key performance indicators are turnover, gross profit and net profit. |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| The group's operations expose it to a variety of financial risks that include performance risk, operational risk, credit risk and liquidity risk. The directors recognise their overall responsibility for the group's systems and internal control. The controls are designed to manage as opposed to completely eliminate risk. |
| The group has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the group by regularly reviewing and monitoring individual contract balances and ensuring adequate funding is in place for any given contract. |
| Performance risk is minimised through accurately budgeting and costing individual projects at the outset and then monitoring the performance on these projects through to completion. The performance of the group and the individual companies within the group is monitored through monthly management accounts which are reviewed at regular board meetings. |
| Operational risk is minimised through having robust health and safety and quality assurance policies and procedures in place as well as the development of a positive health and safety culture throughout the group. |
| Credit risk is minimised by requiring the appropriate credit checks on potential customers, working with reputable customers, agreeing regular payment terms on larger contracts and having strict credit controls. The amount of exposure to any individual customer is also assessed and controlled. |
| Liquidity risk is minimised through the retention of a healthy level of group reserves and funds in the bank. At present the group is not reliant on any bank facilities. |
| GOING CONCERN |
| The directors have assessed the group as having sufficient resources to meet the expected ongoing costs of the business for a period of at least 12 months from the date of signing the financial statements. As a result they have continued to adopt the going concern basis when preparing the financial statements. |
| TSQUARED GROUP LIMITED (REGISTERED NUMBER: SC242071) |
| Group Strategic Report |
| For The Year Ended 31 March 2021 |
| IMPACT OF COVID-19 PANDEMIC |
| The directors have considered the impact that the Covid-19 pandemic could have on the ongoing trade of the group. |
| This includes the potential impact of reduced levels of turnover for a period of time, the effect of a short-term shut-down and the availability of government assistance to businesses during this difficult period. |
| As a result of supplying the Life Sciences sector nearly all of the group's operations and sites have continued operating through the lockdown period. A small number of administration and operations staff were furloughed under the Job Retention Scheme. |
| The additional investment within the Life Sciences sector due to the re-shoring of research and manufacturing will present opportunities for the business. The group has been recruiting and anticipates an increase in turnover and profitability. |
| For this reason, along with the group's healthy balance sheet and cash position, the directors are confident that the group will continue operating as a going concern. |
| ON BEHALF OF THE BOARD: |
| TSQUARED GROUP LIMITED (REGISTERED NUMBER: SC242071) |
| Report of the Directors |
| For The Year Ended 31 March 2021 |
| The directors present their report with the financial statements of the company and the group for the year ended 31 March 2021. |
| DIVIDENDS |
| Interim dividends per share were paid as follows: |
| A Ordinary £1 shares | £194.40 | - 3 August 2020 |
| £5.60 | - 4 August 2020 |
| £200.00 |
| B Ordinary £1 shares | £200.00 | - 3 August 2020 |
| C Ordinary £1 shares | £200.00 | - 3 August 2020 |
| The directors recommend that no final dividends be paid. |
| The total distribution of dividends for the year ended 31 March 2021 will be £ 1,986,000 . |
| Shareholders owning 27.78% of the issued A Ordinary shares waived their right to the dividend paid on 4 August 2020. |
| FUTURE DEVELOPMENTS |
| The directors are confident that the group can continue to trade profitably. |
| DIRECTORS |
| The directors shown below have held office during the whole of the period from 1 April 2020 to the date of this report. |
| Other changes in directors holding office are as follows: |
| POST BALANCE SHEET EVENTS |
| There are no matters to report as post balance sheet events. |
| DISCLOSURE IN THE STRATEGIC REPORT |
| The review of the group's business and the description of the principal risks and uncertainties facing the group are disclosed in the strategic report. |
| TSQUARED GROUP LIMITED (REGISTERED NUMBER: SC242071) |
| Report of the Directors |
| For The Year Ended 31 March 2021 |
| 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), 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 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. |
| 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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
| AUDITORS |
| The auditors, Sharles Audit Limited, 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 |
| TSquared Group Limited |
| Opinion |
| We have audited the financial statements of TSquared Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2021 which comprise the Consolidated Income Statement, Consolidated Other 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 March 2021 and of the group's profit for the year then ended; |
| - | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
| - | have been prepared in accordance with the requirements of the Companies Act 2006. |
| 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 |
| 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 and 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. |
| 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
| Opinions on other matters prescribed by the Companies Act 2006 |
| In our opinion, based on the work undertaken in the course of 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. |
| Report of the Independent Auditors to the Members of |
| TSquared Group Limited |
| 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 five, 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. |
| Report of the Independent Auditors to the Members of |
| TSquared Group Limited |
| 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. |
| 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: |
| The aims of our audit are to identify and assess the risks of material misstatement of the financial statements as a result of fraud or error, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement as a result of fraud or error and to respond appropriately to those risks. As a result of the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with ISAs (UK). |
| In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures include the following: |
| - | We obtained an understanding of the legal and regulatory frameworks applicable to the group and the parent company and the sector in which they operate. We determined that the following laws and regulations were most significant: the Companies Act 2006 and UK corporate tax laws. |
| - | We obtained an understanding of how the group and the parent company are complying with those legal and regulatory frameworks by making inquiries of management. We undertook a review of legal fees for any evidence of non-compliance. |
| - | We assessed the susceptibility of the group's and parent company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the group audit team included: |
| - | identifying and documenting the controls management has in place to prevent and detect fraud and error; |
| - | understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process; |
| - | challenging assumptions and judgements made by management in its significant accounting estimates; |
| - | identifying and testing journal entries, in particular any journal entries posted for large or unusual amounts; |
| - | assessing the extent of compliance with relevant laws and regulations; and |
| - | sample testing of transactions and balances. |
| 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. |
| 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 |
| Statutory Auditor |
| 29 Brandon Street |
| Hamilton |
| ML3 6DA |
| TSQUARED GROUP LIMITED (REGISTERED NUMBER: SC242071) |
| Consolidated |
| Income Statement |
| For The Year Ended 31 March 2021 |
| 2021 | 2020 |
| Notes | £ | £ |
| TURNOVER | 45,764,254 | 28,366,110 |
| Cost of sales | 34,901,097 | 20,936,878 |
| GROSS PROFIT | 10,863,157 | 7,429,232 |
| Administrative expenses | 2,472,906 | 2,082,478 |
| 8,390,251 | 5,346,754 |
| Other operating income | 127,264 | - |
| OPERATING PROFIT | 5 | 8,517,515 | 5,346,754 |
| Interest receivable and similar income | 521 | 35,626 |
| PROFIT BEFORE TAXATION | 8,518,036 | 5,382,380 |
| Tax on profit | 6 | 1,622,075 | 1,026,945 |
| PROFIT FOR THE FINANCIAL YEAR |
| Profit attributable to: |
| Owners of the parent | 6,362,691 | 3,782,620 |
| Non-controlling interests | 533,270 | 572,815 |
| 6,895,961 | 4,355,435 |
| TSQUARED GROUP LIMITED (REGISTERED NUMBER: SC242071) |
| Consolidated |
| Other Comprehensive Income |
| For The Year Ended 31 March 2021 |
| 2021 | 2020 |
| Notes | £ | £ |
| PROFIT FOR THE YEAR | 6,895,961 | 4,355,435 |
| OTHER COMPREHENSIVE INCOME | - | - |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
6,895,961 |
4,355,435 |
| Total comprehensive income attributable to: |
| Owners of the parent | 6,362,691 | 3,782,620 |
| Non-controlling interests | 533,270 | 572,815 |
| 6,895,961 | 4,355,435 |
| TSQUARED GROUP LIMITED (REGISTERED NUMBER: SC242071) |
| Consolidated Balance Sheet |
| 31 March 2021 |
| 2021 | 2020 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Tangible assets | 9 | 224,229 | 203,920 |
| Investments | 10 | - | - |
| 224,229 | 203,920 |
| CURRENT ASSETS |
| Stocks | 11 | 486,316 | 224,552 |
| Debtors | 12 | 5,080,330 | 4,281,565 |
| Cash at bank | 24,911,297 | 14,214,477 |
| 30,477,943 | 18,720,594 |
| CREDITORS |
| Amounts falling due within one year | 13 | 16,235,097 | 8,979,255 |
| NET CURRENT ASSETS | 14,242,846 | 9,741,339 |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
14,467,075 |
9,945,259 |
| PROVISIONS FOR LIABILITIES | 15 | 3,170 | 12,867 |
| NET ASSETS | 14,463,905 | 9,932,392 |
| CAPITAL AND RESERVES |
| Called up share capital | 16 | 10,000 | 10,000 |
| Retained earnings | 17 | 13,854,495 | 9,477,804 |
| SHAREHOLDERS' FUNDS | 13,864,495 | 9,487,804 |
| NON-CONTROLLING INTERESTS | 18 | 599,410 | 444,588 |
| TOTAL EQUITY | 14,463,905 | 9,932,392 |
| The financial statements were approved by the Board of Directors and authorised for issue on 27 August 2021 and were signed on its behalf by: |
| A Simpson - Director |
| TSQUARED GROUP LIMITED (REGISTERED NUMBER: SC242071) |
| Company Balance Sheet |
| 31 March 2021 |
| 2021 | 2020 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Tangible assets | 9 | - | - |
| Investments | 10 |
| CURRENT ASSETS |
| Debtors | 12 |
| Cash at bank |
| CREDITORS |
| Amounts falling due within one year | 13 |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CAPITAL AND RESERVES |
| Called up share capital | 16 |
| Retained earnings | 17 |
| SHAREHOLDERS' FUNDS |
| Company's profit for the financial year | 2,656,737 | 2,301,457 |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| TSQUARED GROUP LIMITED (REGISTERED NUMBER: SC242071) |
| Consolidated Statement of Changes in Equity |
| For The Year Ended 31 March 2021 |
| Called up |
| share | Retained | Non-controlling | Total |
| capital | earnings | Total | interests | equity |
| £ | £ | £ | £ | £ |
| Balance at 1 April 2019 | 10,000 | 7,146,934 | 7,156,934 | 560,643 | 7,717,577 |
| Changes in equity |
| Dividends | - | (1,451,750 | ) | (1,451,750 | ) | (417,400 | ) | (1,869,150 | ) |
| Total comprehensive income | - | 3,782,620 | 3,782,620 | 572,815 | 4,355,435 |
| 10,000 | 9,477,804 | 9,487,804 | 716,058 | 10,203,862 |
| Acquisition of non-controlling interest |
- |
- |
- |
(271,470 |
) |
(271,470 |
) |
| Balance at 31 March 2020 | 10,000 | 9,477,804 | 9,487,804 | 444,588 | 9,932,392 |
| Changes in equity |
| Dividends | - | (1,986,000 | ) | (1,986,000 | ) | (283,685 | ) | (2,269,685 | ) |
| Total comprehensive income | - | 6,362,691 | 6,362,691 | 533,270 | 6,895,961 |
| 10,000 | 13,854,495 | 13,864,495 | 694,173 | 14,558,668 |
| Acquisition of non-controlling interest |
- |
- |
- |
(94,763 |
) |
(94,763 |
) |
| Balance at 31 March 2021 | 10,000 | 13,854,495 | 13,864,495 | 599,410 | 14,463,905 |
| TSQUARED GROUP LIMITED (REGISTERED NUMBER: SC242071) |
| Company Statement of Changes in Equity |
| For The Year Ended 31 March 2021 |
| Called up |
| share | Retained | Total |
| capital | earnings | equity |
| £ | £ | £ |
| Balance at 1 April 2019 |
| Changes in equity |
| Dividends | - | ( |
) | ( |
) |
| Total comprehensive income | - |
| Balance at 31 March 2020 |
| Changes in equity |
| Dividends | - | ( |
) | ( |
) |
| Total comprehensive income | - |
| Balance at 31 March 2021 |
| TSQUARED GROUP LIMITED (REGISTERED NUMBER: SC242071) |
| Consolidated Cash Flow Statement |
| For The Year Ended 31 March 2021 |
| 2021 | 2020 |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 | 14,126,535 | 6,884,974 |
| Tax paid | (951,611 | ) | (923,423 | ) |
| Net cash from operating activities | 13,174,924 | 5,961,551 |
| Cash flows from investing activities |
| Purchase of tangible fixed assets | (122,060 | ) | (113,526 | ) |
| Sale of tangible fixed assets | 7,883 | 4,712 |
| Interest received | 521 | 35,626 |
| Net cash from investing activities | (113,656 | ) | (73,188 | ) |
| Cash flows from financing activities |
| Acquisition of non-controlling interest | (94,763 | ) | (271,470 | ) |
| Equity dividends paid | (1,986,000 | ) | (1,451,750 | ) |
| Dividends to non-controlling interests | (283,685 | ) | (417,400 | ) |
| Net cash from financing activities | (2,364,448 | ) | (2,140,620 | ) |
| Increase in cash and cash equivalents | 10,696,820 | 3,747,743 |
| Cash and cash equivalents at beginning of year |
2 |
14,214,477 |
10,466,734 |
| Cash and cash equivalents at end of year | 2 | 24,911,297 | 14,214,477 |
| TSQUARED GROUP LIMITED (REGISTERED NUMBER: SC242071) |
| Notes to the Consolidated Cash Flow Statement |
| For The Year Ended 31 March 2021 |
| 1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
| 2021 | 2020 |
| £ | £ |
| Profit before taxation | 8,518,036 | 5,382,380 |
| Depreciation charges | 101,751 | 76,357 |
| Profit on disposal of fixed assets | (7,883 | ) | (4,712 | ) |
| Finance income | (521 | ) | (35,626 | ) |
| 8,611,383 | 5,418,399 |
| (Increase)/decrease in stocks | (261,764 | ) | 54,842 |
| Increase in trade and other debtors | (836,088 | ) | (441,803 | ) |
| Increase in trade and other creditors | 6,613,004 | 1,853,536 |
| Cash generated from operations | 14,126,535 | 6,884,974 |
| 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: |
| Year ended 31 March 2021 |
| 31.3.21 | 1.4.20 |
| £ | £ |
| Cash and cash equivalents | 24,911,297 | 14,214,477 |
| Year ended 31 March 2020 |
| 31.3.20 | 1.4.19 |
| £ | £ |
| Cash and cash equivalents | 14,214,477 | 10,466,734 |
| 3. | ANALYSIS OF CHANGES IN NET FUNDS |
| At 1.4.20 | Cash flow | At 31.3.21 |
| £ | £ | £ |
| Net cash |
| Cash at bank | 14,214,477 | 10,696,820 | 24,911,297 |
| 14,214,477 | 10,696,820 | 24,911,297 |
| Total | 14,214,477 | 10,696,820 | 24,911,297 |
| TSQUARED GROUP LIMITED (REGISTERED NUMBER: SC242071) |
| Notes to the Consolidated Financial Statements |
| For The Year Ended 31 March 2021 |
| 1. | STATUTORY INFORMATION |
| TSquared Group Limited is a |
| The presentation currency of the financial statements is the Pound Sterling (£). |
| 2. | STATEMENT OF COMPLIANCE |
| 3. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| The financial statements have been prepared on a going concern basis. |
| As explained in the strategic report the group's operations have not been significantly impacted by the Covid-19 pandemic and the associated lockdowns. |
| Significant judgements and estimates |
| In the application of the group's accounting policies, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. |
| Turnover and revenue recognition |
| Turnover is derived from various activities performed by the group as a contractor providing specialist design, construction and servicing for controlled environments and business critical facilities. |
| Turnover therefore represents the value of work done and service supplied, net of discounts and excluding value added tax, and is recognised at the point that the group obtains the right to consideration. |
| Tangible fixed assets |
| Motor vehicles | - |
| At each balance sheet date, the group reviews the carrying amounts of its tangible fixed assets to determine whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss. Where it is not possible to estimate the recoverable amount of the asset, the group estimates the recoverable amount of the cash-generating unit to which the asset belongs. |
| Expenditure of £5,000 or more on individual tangible fixed assets is capitalised at cost. Expenditure on assets below this threshold is charged directly to the income statement in the period it is incurred. |
| TSQUARED GROUP LIMITED (REGISTERED NUMBER: SC242071) |
| Notes to the Consolidated Financial Statements - continued |
| For The Year Ended 31 March 2021 |
| 3. | ACCOUNTING POLICIES - continued |
| Stocks |
| Stocks and work in progress (except long term contracts) are valued at the lower of cost and expected selling price less costs to complete, after making due allowance for obsolete and slow moving items. |
| Cost includes all direct expenditure and an appropriate proportion of fixed and variable overheads. |
| Long term contracts are stated at net cost less foreseeable losses less any applicable payments on account. The amount recorded as turnover in respect of long term contracts is ascertained by reference to the value of the work carried out to date. Attributable profit is recognised as the difference between recorded turnover and related costs. |
| Basic financial instruments |
| Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method, less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases, the receivables are stated at cost less impairment losses for bad and doubtful debts. |
| Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost. |
| Taxation |
| Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, 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. |
| 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 year 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. |
| Hire purchase and leasing commitments |
| Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
| 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. |
| TSQUARED GROUP LIMITED (REGISTERED NUMBER: SC242071) |
| Notes to the Consolidated Financial Statements - continued |
| For The Year Ended 31 March 2021 |
| 3. | ACCOUNTING POLICIES - continued |
| Cash and cash equivalents |
| Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the statement of financial position, bank overdrafts are shown within borrowings or current liabilities. |
| Provisions |
| Provisions are recognised when the group has a present legal or constructive obligation arising as a result of a past event, it is probable that an outflow of economic benefit swill be required to settle the obligation and a reliable estimate can be made. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as interest expense. |
| 4. | EMPLOYEES AND DIRECTORS |
| 2021 | 2020 |
| £ | £ |
| Wages and salaries |
| Social security costs |
| Other pension costs |
| The average number of employees during the year was as follows: |
| 2021 | 2020 |
| Group directors | 5 | 5 |
| Administration | 7 | 8 |
| Operational | 83 | 73 |
| 2021 | 2020 |
| £ | £ |
| Directors' remuneration |
| Directors' pension contributions to money purchase schemes |
| The number of directors to whom retirement benefits were accruing was as follows: |
| Money purchase schemes |
| Information regarding the highest paid director is as follows: |
| 2021 | 2020 |
| £ | £ |
| Emoluments etc |
| TSQUARED GROUP LIMITED (REGISTERED NUMBER: SC242071) |
| Notes to the Consolidated Financial Statements - continued |
| For The Year Ended 31 March 2021 |
| 5. | OPERATING PROFIT |
| The operating profit is stated after charging/(crediting): |
| 2021 | 2020 |
| £ | £ |
| Other operating leases |
| Depreciation - owned assets |
| Profit on disposal of fixed assets | ( |
) | ( |
) |
| Auditors' remuneration |
| Auditors' remuneration for non audit work |
| 6. | TAXATION |
| Analysis of the tax charge |
| The tax charge on the profit for the year was as follows: |
| 2021 | 2020 |
| £ | £ |
| Current tax: |
| UK corporation tax |
| Deferred tax | ( |
) |
| Tax on profit |
| Reconciliation of total tax charge included in profit and loss |
| The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
| 2021 | 2020 |
| £ | £ |
| Profit before tax |
| Profit multiplied by the standard rate of corporation tax in the UK of (2020 - |
| Effects of: |
| Expenses not deductible for tax purposes |
| Total tax charge | 1,622,075 | 1,026,945 |
| 7. | INDIVIDUAL INCOME STATEMENT |
| 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. |
| TSQUARED GROUP LIMITED (REGISTERED NUMBER: SC242071) |
| Notes to the Consolidated Financial Statements - continued |
| For The Year Ended 31 March 2021 |
| 8. | DIVIDENDS |
| 2021 | 2020 |
| £ | £ |
| A Ordinary shares of £1 each |
| Interim |
| B Ordinary shares of £1 each |
| Interim |
| C Ordinary shares of £1 each |
| Interim |
| 9. | TANGIBLE FIXED ASSETS |
| Group |
| Motor |
| vehicles |
| £ |
| COST |
| At 1 April 2020 |
| Additions |
| Disposals | ( |
) |
| At 31 March 2021 |
| DEPRECIATION |
| At 1 April 2020 |
| Charge for year |
| Eliminated on disposal | ( |
) |
| At 31 March 2021 |
| NET BOOK VALUE |
| At 31 March 2021 |
| At 31 March 2020 |
| 10. | FIXED ASSET INVESTMENTS |
| Company |
| Shares in |
| group |
| undertaking |
| £ |
| COST |
| At 1 April 2020 |
| Additions |
| At 31 March 2021 |
| NET BOOK VALUE |
| At 31 March 2021 |
| At 31 March 2020 |
| TSQUARED GROUP LIMITED (REGISTERED NUMBER: SC242071) |
| Notes to the Consolidated Financial Statements - continued |
| For The Year Ended 31 March 2021 |
| 10. | FIXED ASSET INVESTMENTS - continued |
| The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
| Subsidiaries |
| Registered office: Optimus Building, 2 Robroyston Oval, Nova Technology Park, Glasgow, G33 1AP |
| Nature of business: |
| % |
| Class of shares: | holding |
| 2021 | 2020 |
| £ | £ |
| Aggregate capital and reserves |
| (Loss)/profit for the year | ( |
) |
| Registered office: Optimus Building, 2 Robroyston Oval, Nova Technology Park, Glasgow, G33 1AP |
| Nature of business: |
| % |
| Class of shares: | holding |
| 2021 | 2020 |
| £ | £ |
| Aggregate capital and reserves |
| Profit for the year |
| Registered office: Optimus Building, 2 Robroyston Oval, Nova Technology Park, Glasgow, G33 1AP |
| Nature of business: |
| % |
| Class of shares: | holding |
| 2021 | 2020 |
| £ | £ |
| Aggregate capital and reserves |
| Profit for the year |
| Registered office: Optimus Building, 2 Robroyston Oval, Nova Technology Park, Glasgow, G33 1AP |
| Nature of business: |
| % |
| Class of shares: | holding |
| 2021 | 2020 |
| £ | £ |
| Aggregate capital and reserves | ( |
) | ( |
) |
| Profit/(loss) for the year | ( |
) |
| TSQUARED GROUP LIMITED (REGISTERED NUMBER: SC242071) |
| Notes to the Consolidated Financial Statements - continued |
| For The Year Ended 31 March 2021 |
| 10. | FIXED ASSET INVESTMENTS - continued |
| Registered office: Optimus Building, 2 Robroyston Oval, Nova Technology Park, Glasgow, G33 1AP |
| Nature of business: |
| % |
| Class of shares: | holding |
| 2021 | 2020 |
| £ | £ |
| Aggregate capital and reserves |
| Profit for the year |
| Registered office: Optimus Building, 2 Robroyston Oval, Nova Technology Park, Glasgow, G33 1AP |
| Nature of business: |
| % |
| Class of shares: | holding |
| 2021 | 2020 |
| £ | £ |
| Aggregate capital and reserves |
| Profit for the year |
| Registered office: Optimus Building, 2 Robroyston Oval, Nova Technology Park, Glasgow, G33 1AP |
| Nature of business: |
| % |
| Class of shares: | holding |
| 2021 | 2020 |
| £ | £ |
| Aggregate capital and reserves |
| Profit for the year |
| Registered office: Optimus Building, 2 Robroyston Oval, Nova Technology Park, Glasgow, G33 1AP |
| Nature of business: |
| % |
| Class of shares: | holding |
| 2021 | 2020 |
| £ | £ |
| Aggregate capital and reserves |
| TSQUARED GROUP LIMITED (REGISTERED NUMBER: SC242071) |
| Notes to the Consolidated Financial Statements - continued |
| For The Year Ended 31 March 2021 |
| 10. | FIXED ASSET INVESTMENTS - continued |
| Registered office: Optimus Building, 2 Robroyston Oval, Nova Technology Park, Glasgow, G33 1AP |
| Nature of business: |
| % |
| Class of shares: | holding |
| 2021 | 2020 |
| £ | £ |
| Aggregate capital and reserves |
| Profit for the year |
| Registered office: Optimus Building, 2 Robroyston Oval, Nova Technology Park, Glasgow, G33 1AP |
| Nature of business: |
| % |
| Class of shares: | holding |
| 2021 | 2020 |
| £ | £ |
| Aggregate capital and reserves |
| Profit for the year |
| Registered office: Optimus Building, 2 Robroyston Oval, Nova Technology Park, Glasgow, G33 1AP |
| Nature of business: |
| % |
| Class of shares: | holding |
| 2021 | 2020 |
| £ | £ |
| Aggregate capital and reserves |
| Profit for the year |
| Registered office: Optimus Building, 2 Robroyston Oval, Nova Technology Park, Glasgow, G33 1AP |
| Nature of business: |
| % |
| Class of shares: | holding |
| 2021 | 2020 |
| £ | £ |
| Aggregate capital and reserves |
| Loss for the year | ( |
) |
| TSQUARED GROUP LIMITED (REGISTERED NUMBER: SC242071) |
| Notes to the Consolidated Financial Statements - continued |
| For The Year Ended 31 March 2021 |
| 11. | STOCKS |
| Group |
| 2021 | 2020 |
| £ | £ |
| Work-in-progress | 329,471 | 145,560 |
| Long term contracts | 156,845 | 78,992 |
| 486,316 | 224,552 |
| 12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group | Company |
| 2021 | 2020 | 2021 | 2020 |
| £ | £ | £ | £ |
| Trade debtors | 4,973,533 | 4,168,865 |
| Amounts owed by group undertakings | - | - |
| Other debtors | 10,000 | 10,000 |
| Tax | 13,755 | 51,078 |
| Prepayments & accrued income | 83,042 | 51,622 |
| 5,080,330 | 4,281,565 |
| 13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group | Company |
| 2021 | 2020 | 2021 | 2020 |
| £ | £ | £ | £ |
| Payments on account | 8,080,806 | 4,230,991 |
| Trade creditors | 3,724,037 | 1,403,306 |
| Tax | 1,286,006 | 643,168 |
| Other taxes & social security | 154,359 | 128,820 |
| VAT | 961,623 | 722,617 | - | - |
| Other creditors | 190,344 | 257,117 |
| Accruals & deferred income | 1,837,922 | 1,593,236 |
| 16,235,097 | 8,979,255 |
| 14. | LEASING AGREEMENTS |
| Minimum lease payments fall due as follows: |
| Group |
| Non-cancellable operating | leases |
| 2021 | 2020 |
| £ | £ |
| Within one year | 58,850 | 58,850 |
| Between one and five years | 127,508 | 186,358 |
| 186,358 | 245,208 |
| TSQUARED GROUP LIMITED (REGISTERED NUMBER: SC242071) |
| Notes to the Consolidated Financial Statements - continued |
| For The Year Ended 31 March 2021 |
| 15. | PROVISIONS FOR LIABILITIES |
| Group |
| 2021 | 2020 |
| £ | £ |
| Deferred tax |
| Accelerated capital allowances | 31,670 | 30,018 |
| Other timing differences | (28,500 | ) | (17,151 | ) |
| 3,170 | 12,867 |
| Group |
| Deferred |
| tax |
| £ |
| Balance at 1 April 2020 | 12,867 |
| Provided during year | (9,697 | ) |
| Balance at 31 March 2021 | 3,170 |
| 16. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 2021 | 2020 |
| value: | £ | £ |
| A Ordinary | £1 | 9,000 | 9,000 |
| B Ordinary | £1 | 500 | 500 |
| C Ordinary | £1 | 500 | 500 |
| 10,000 | 10,000 |
| Shares in all classes have equal voting rights and entitlement to dividends. In the event of liquidation C Ordinary shares are entitled to £2,250 per share, then A ordinary shares are entitled to a distribution up to the value of protected reserves with any remainder then being available to distribute equally between all Ordinary shares. |
| 17. | RESERVES |
| Group |
| Retained |
| earnings |
| £ |
| At 1 April 2020 | 9,477,804 |
| Profit for the year | 6,362,691 |
| Dividends | (1,986,000 | ) |
| At 31 March 2021 | 13,854,495 |
| TSQUARED GROUP LIMITED (REGISTERED NUMBER: SC242071) |
| Notes to the Consolidated Financial Statements - continued |
| For The Year Ended 31 March 2021 |
| 17. | RESERVES - continued |
| Company |
| Retained |
| earnings |
| £ |
| At 1 April 2020 |
| Profit for the year |
| Dividends | ( |
) |
| At 31 March 2021 |
| 18. | NON-CONTROLLING INTERESTS |
| Non-controlling interests which represent the portion of profit or loss and net assets in subsidiaries that is not held by the Group is presented separately from parent shareholders' equity in the financial statements. |
| £ |
| At 1 April 2020 | 444,588 |
| Shares acquired from non-controlling interests | (94,763 | ) |
| Profit attributable to non-controlling interests | 533,270 |
| Dividends paid to non-controlling interests | (283,685 | ) |
| At 31 March 2021 | 599,410 |
| 19. | RELATED PARTY DISCLOSURES |
| During the year the group was invoiced rent, service charges and insurance costs relating to the lease of the head office premises, of £59,925 (2020 - £61,285) by the Self Invested Personal Pensions of the group directors and shareholders. |