East Sussex Press Limited - Period Ending 2022-12-31
East Sussex Press Limited - Period Ending 2022-12-31
Registration number:
for the
Year Ended 31 December 2022
East Sussex Press Limited
Contents
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Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Consolidated Profit and Loss Account |
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Consolidated Balance Sheet |
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Balance Sheet |
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Consolidated Statement of Changes in Equity |
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Statement of Changes in Equity |
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Consolidated Statement of Cash Flows |
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Notes to the Financial Statements |
East Sussex Press Limited
Company Information
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Directors |
D J Bullivant M W Handford Z Kasmani A J Nash R Osborne B D Smith B M Tucker |
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Company secretary |
B D Smith |
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Registered office |
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Banker |
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Auditor |
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East Sussex Press Limited
Strategic Report for the Year Ended 31 December 2022
The directors present their strategic report for the year ended 31 December 2022.
Principal activity
The principal activity of the Group is the creation, management and supply of marketing print services, technologies, and products. All parts of the Group aim to operate as market leading businesses and work closely with each other to provide clients with the best products and solutions available.
Review of the business
The results for the year, which are set out in the profit and loss account, show turnover of £68,624,912 (2021 - £52,350,489) and an operating profit (pre exceptional/goodwill) of £4,596,017 (2021 - £2,229,609).
|
2022 |
2021 |
|
|
Turnover |
68,625 |
52,350 |
|
Other operating income |
- |
299 |
|
Gross profit |
25,660 |
19,282 |
|
Gross profit % (of turnover) |
37% |
36% |
|
Overheads |
21,062 |
17,414 |
|
Operating profit (pre exceptional/goodwill) |
4,596 |
2,230 |
|
EBITDA |
7,017 |
4,739 |
|
EBITDA % (of turnover) |
10% |
9% |
Last year was a record year for both revenue and EBITDA, with the latter improving to £7,017,601 (2021 - £4,739,138) being 10% of revenues delivered in the year (2021 – 9% of revenues). The business has been agile in a challenging marketplace and macro environment whilst continuing to invest in automation and technology. New business acquisition was strong and, coupled with our high retention levels, this evidences that customers trust and appreciate the increasingly diverse propositions and the business’s great customer service levels. The result was an improvement in gross profit % which drove the strong EBITDA result.
On 31 December 2022, the Group had total assets less current liabilities of £7,817,451 (2021 - £7,710,416).
The strong performance of 2022 has continued into 2023 despite the uncertain trading conditions. The latter include price inflation, cost of living issues, supply chain challenges, the Ukraine-Russia conflict, energy price increases, and the on-going impact of both Brexit and Covid. Despite this, EBITDA for the first quarter has risen c10% compared to the same period last year.
The directors consider the performance for the year and the financial position at the year end to be an excellent result particularly given the challenging global environment.
East Sussex Press Limited
Strategic Report for the Year Ended 31 December 2022
Business development
The business Invested in a high-specification Heidelberg XL106 ten-colour press which offers superior quality and productivity to the business’s clients. A new mailing line was installed to expand our secure, environmentally friendly mailing options for clients via our PureMail™ product. Other investments include our IT infrastructure to support current and future growth, including offering customers online “stores” which have been in strong demand.
Further investments have been made throughout the business in both physical machinery and technological solutions which have helped deliver significant underlying improvements to the Gross Profit margin of the Group. Additional competitors exited the market in 2022 resulting in some significant new business wins. This has allowed the business to both diversify further per the long-term strategy, and also strengthen our leading positions in several marketplaces.
In January, the business acquired assets from Screaming Colour to enhance our luxury our box making proposition and creative offering. The integration has gone well, adding to the existing capability, capacity and product range, which has been well received by both Pureprint and former Screaming Colour clients.
Additionally, several former Pepper Communications staff joined the Group, adding to our internal Direct Mail, Creative and Data Management offerings. Again, the integration has gone well, adding significant new clients and volumes to the Group.
The business has continued to develop its technology products with the aim of delivering efficiencies for our clients and within our own business. Usage of our proprietary software solutions has grown to over 100,000 users globally and remains a core offering to our clients. The Group’s creative and visual media division, PIXL, is performing well and further diversifies the customer proposition in both new and existing markets around e-commerce, photography, and video content.
The Group continues to look for other investment opportunities to further our diversification and customer offerings while supporting our growth and sustainability strategies.
Market overview
It was a challenging year for the sector, with inflation, a cost-of-living crisis, economic and political uncertainty and the on-going impacts of Brexit and Covid. 2023 started with warnings of a deep recession and the challenging market saw many businesses exit the market which has presented further opportunities to the Group to support clients and skilled employees by joining the Pureprint Group.
The diversified nature of the Group and the business’s agile, proactive approach saw strong customer retention alongside significant new client acquisition, resulting in increased demand throughout the year despite the challenges and disruptions. The business is experiencing strong demand across in 2023 which, in management’s view, should see the Group continue to grow profitably. Q1 2023 was a record quarter with strong performance from all areas of the Group and good forward pipelines.
Financial instruments
Objectives and policies
The Group does not actively use financial instruments as part of its financial risk management. It is exposed to the usual credit risk and cash flow risk associated with selling on credit and manages this through credit insurance of its trade debtors and credit control procedures.
Principal risks and uncertainties
The Group may be affected by a number of risks and uncertainties, some of which are beyond its control. The following table sets out the principal risks and uncertainties which could have a material adverse effect on the Group.
|
Risk |
Mitigation |
|
|
Competition in the print industry arising from a declining market |
Continual improvement to reduce the unit cost of production by changing production methods or investing in new more efficient machinery. Marketing activities are continuing to ensure any lost business is replaced by new customers and new business. |
|
|
New technology reducing the demand for print |
The Group monitors technological developments and as a result offers new services arising from such technologies alongside the traditional print offering, for example using its digital presses to offer personalised books. |
East Sussex Press Limited
Strategic Report for the Year Ended 31 December 2022
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Challenging economic conditions inhibit growth and create uncertainty |
Continue to diversify the Group’s business to be able to provide a wide range of marketing services to customers. Continually review the Group’s cost base. Regularly review the performance of all businesses against their budgets and implement remedial action, where needed. |
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|
A loss of facility due to catastrophic event |
Regularly review the business continuity plan and maintain a full catastrophic event insurance programme including business interruption cover. The group operates from 6 sites. |
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|
The Group’s ability to trade is compromised by a lack of cash funds |
The monthly financial information submitted to the Board includes a month cash flow forecast with sensitivities to facilitate the monitoring of performance against a lack of cash funds. |
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|
A material unrecoverable debt arises from the Group's practice of trading with the majority of its clients on credit |
The Group’s policy is that all customers are granted credit subject to credit verification procedures. A rigorous system of credit control is applied and debtors are continually monitored. Imprint’s debtors are insured. |
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|
Major information security breach or cyber attack |
The risk of attack is continuous and we look to minimize the risks with firewalls, up to date anti-virus protection systems, and data protection policies through ISO27001 and Cyber Essentials Plus Accreditations. Group policies, staff training and data backup routines ensure high levels of protection. |
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|
Brexit |
The group’s Brexit team continues to assess the potential risks that maybe caused by the outcome of the trade negotiations both directly to itself and its clients and how to best manage these. |
Section 172 Statement
The Directors believe that they have effectively implemented their duties under section 172 of the Companies Act 2006. The Company has considered the long-term strategy of the business in the strategic report and consider that this strategy will continue to deliver long term success to the business and its stakeholders.
The Group is committed to maintaining an excellent reputation and strives to achieve high standards across all areas. We are highly selective about which suppliers are used to deliver best value while maintaining an awareness of the environmental impact of the work that they do and strive to reduce their carbon footprint.
The Directors recognise the importance of wider stakeholders in delivering their strategy and achieving sustainability within the business. The main stakeholders in the Company are considered to be the employees, suppliers and customers. The Group’s anti-slavery and gender pay information can be found on our website.
In ensuring that all our stakeholders are considered as part of every decision process we believe we act fairly between all members of the Company.
Sustainability
Data is provided as tonnes of carbon dioxide equivalent (C02e) for Pureprint Group operations. The Company’s chosen intensity measure is emissions per employee and as a percentage of turnover. The report data has been collated and measured internally.
We have reported on the emissions sources required under The Companies (Directors Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018. The reported sources fall within our Financial Statements and are for emissions over which we have financial control. We do not have responsibility for any emissions sources that are not included in our statements.
|
2022 kWh |
2022 tCO2 |
2021 kWh |
2021 tCO2 |
|
|
Scope 1: Emissions Gas |
850,492 |
157 |
886,166 |
163 |
|
Scope 2: Emissions Electricity |
3,812,818 |
888 |
3,721,164 |
867 |
|
Scope 3: Emissions Vehicles/Other |
498 |
421 |
- |
421 |
|
Total Emissions |
4,663,808 |
1,466 |
4,607,330 |
1,451 |
|
Emissions per employee |
17,338 |
5.45 |
18,578 |
5.85 |
|
Emissions per £k turnover |
68 |
0.02 |
87 |
0.03 |
East Sussex Press Limited
Strategic Report for the Year Ended 31 December 2022
The Group is concerned about energy consumption and carbon emissions and wishes to utilise the mandatory SECR legislation to identify ways of saving energy and reduce on carbon emissions. Emissions per head decreased by 7% from last year and the percentage of turnover dropped by 22%. Some of this is due to the impact of Covid on production in 2021, while the investment in equipment, processes and technology continues the business’s proud heritage in reducing its environment impact as much as possible.
As sustainability is a key focus of the Pureprint management the business holds the following certification;
• ISO 14001 Environmental Management certified
• FSC® certified (license code: FSC-C022913)
• A CarbonNeutral® company
• Member of Sedex the ethical supplier register
• Queen’s Award for Enterprise: Sustainable Development Winner 2013, 2008, 2003
Approved by the
Director
East Sussex Press Limited
Directors' Report for the Year Ended 31 December 2022
The directors present their report and the for the year ended 31 December 2022.
Directors of the group
The directors who held office during the year were as follows:
Z Kasmani is regarded as an investment director.
Employment of disabled persons
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the Group that training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
Employee involvement
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 on matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the Group's performance.
Future developments
The external environment is expected to remain competitive going forward, however the directors remain confident that the company will improve on its current level of performance in the future.
Disclosure of information to the auditor
Each director has taken the steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Reappointment of auditor
Hazlewoods LLP have expressed their willingness to continue in office.
Approved by the
Director
East Sussex Press Limited
Statement of Directors' Responsibilities
The directors are responsible for preparing the Strategic Report, Directors' Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company 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 apply them consistently; |
• | make judgements 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; and |
• | 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 group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and the company 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 group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
East Sussex Press Limited
Independent Auditor's Report to the Members of East Sussex Press Limited
Opinion
We have audited the financial statements of East Sussex Press Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2022, which comprise the Consolidated Profit and Loss Account, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, and 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 the parent company's affairs as at 31 December 2022 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 auditor 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 ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 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.
East Sussex Press Limited
Independent Auditor's Report to the Members of East Sussex Press Limited
Opinion on other matter 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 Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
|
• |
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.
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 7, 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 is 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.
Auditor’s 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 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 financial statements.
Extent to which the audit was capable of detecting irregularities, including fraud
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 considered the nature of the company’s industry and its control environment and reviewed the company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.
We obtained an understanding of the legal and regulatory framework that the company operates in and identified the key laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements, including the UK Companies Act and tax legislation, and, those that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.
We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.
East Sussex Press Limited
Independent Auditor's Report to the Members of East Sussex Press Limited
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgments made in accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.
In addition to the above, our procedures to respond to the risks identified included the following:
|
• |
reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; |
|
• |
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatements due to fraud;. |
|
• |
enquiring of management concerning actual and potential litigation and claims and instances of non-compliance with laws and regulations; and |
|
• |
reading minutes of meetings of those charged with governance. |
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
A further description of our responsibilities is available on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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 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
Windsor House
Bayshill Road
GL50 3AT
East Sussex Press Limited
Consolidated Profit and Loss Account for the Year Ended 31 December 2022
|
Note |
2022 |
2021 |
|
|
Turnover |
|
|
|
|
Other operating income |
- |
298,643 |
|
|
Cost of sales |
( |
( |
|
|
Gross profit |
|
|
|
|
Distribution costs |
( |
( |
|
|
Administrative expenses |
( |
( |
|
|
Other operating income |
- |
|
|
|
Operating profit before exceptional items and amortisation |
|
|
|
|
Exceptional items |
(386,338) |
(251,881) |
|
|
Amortisation of goodwill |
(239,321) |
(217,571) |
|
|
Operating profit |
3,970,358 |
1,760,157 |
|
|
Interest payable and similar charges |
(923,710) |
(941,289) |
|
|
Profit before tax |
3,046,648 |
818,868 |
|
|
Taxation |
(592,818) |
(202,460) |
|
|
Profit for the financial year |
|
|
|
|
EBITDA |
7,017,601 |
4,739,138 |
The above results were derived from continuing operations.
The group has no other comprehensive income for the year.
East Sussex Press Limited
(Registration number: 02872719)
Consolidated Balance Sheet as at 31 December 2022
|
Note |
2022 |
2021 |
|
|
Fixed assets |
|||
|
Intangible assets |
|
|
|
|
Tangible assets |
|
|
|
|
|
|
||
|
Current assets |
|||
|
Stocks |
|
|
|
|
Debtors |
|
|
|
|
Cash at bank and in hand |
1,042,676 |
1,530,839 |
|
|
|
|
||
|
Creditors: Amounts falling due within one year |
( |
( |
|
|
Net current liabilities |
( |
( |
|
|
Total assets less current liabilities |
|
|
|
|
Creditors: Amounts falling due after more than one year |
|
|
|
|
Provisions for liabilities |
|
|
|
|
Capital and reserves |
|||
|
Called up share capital |
|
|
|
|
Profit and loss account |
|
( |
|
|
Total equity |
|
( |
|
|
Total capital, reserves and long term liabilities |
7,817,451 |
7,779,811 |
Approved and authorised by the
Director
East Sussex Press Limited
(Registration number: 02872719)
Balance Sheet as at 31 December 2022
|
Note |
2022 |
2021 |
|
|
Fixed assets |
|||
|
Intangible assets |
|
|
|
|
Investments |
|
|
|
|
|
|
||
|
Current assets |
|||
|
Debtors |
|
|
|
|
Cash at bank and in hand |
645 |
42,461 |
|
|
|
|
||
|
Creditors: Amounts falling due within one year |
( |
( |
|
|
Net current liabilities |
( |
( |
|
|
Total assets less current liabilities |
( |
( |
|
|
Creditors: Amounts falling due after more than one year |
- |
1,050,000 |
|
|
Capital and reserves |
|||
|
Called up share capital |
|
|
|
|
Profit and loss account |
( |
( |
|
|
Total equity |
( |
( |
|
|
Total capital, reserves and long term liabilities |
(5,719,972) |
(3,076,596) |
The company made a loss after tax for the financial year of £1,593,376 (2021 - loss of £1,297,782).
Approved and authorised by the
Director
East Sussex Press Limited
Consolidated Statement of Changes in Equity for the Year Ended 31 December 2022
Equity attributable to the parent company
|
Share capital |
Profit and loss account |
Total |
|
|
At 1 January 2022 |
|
( |
( |
|
Profit for the year |
- |
|
|
|
At 31 December 2022 |
|
|
|
|
Share capital |
Profit and loss account |
Total |
|
|
At 1 January 2021 |
|
( |
( |
|
Loss for the year |
- |
|
|
|
At 31 December 2021 |
|
( |
( |
East Sussex Press Limited
Statement of Changes in Equity for the Year Ended 31 December 2022
|
Share capital |
Profit and loss account |
Total |
|
|
At 1 January 2022 |
|
( |
( |
|
Loss for the year |
- |
( |
( |
|
At 31 December 2022 |
|
( |
( |
|
Share capital |
Profit and loss account |
Total |
|
|
At 1 January 2021 |
|
( |
( |
|
Loss for the year |
- |
( |
( |
|
At 31 December 2021 |
|
( |
( |
East Sussex Press Limited
Consolidated Statement of Cash Flows for the Year Ended 31 December 2022
|
Note |
2022 |
2021 |
|
|
Cash flows from operating activities |
|||
|
Profit for the year |
|
|
|
|
Adjustments to cash flows from non-cash items |
|||
|
Depreciation and amortisation |
|
|
|
|
Profit on disposal of tangible assets |
( |
( |
|
|
Finance costs |
|
|
|
|
Income tax expense |
|
|
|
|
Foreign exchange gains/losses |
( |
- |
|
|
|
|
||
|
Working capital adjustments |
|||
|
Increase in stocks |
( |
( |
|
|
Increase in trade debtors |
( |
( |
|
|
Increase in trade creditors |
|
|
|
|
Cash generated from operations |
|
|
|
|
Income taxes paid |
( |
( |
|
|
Net cash flow from operating activities |
|
|
|
|
Cash flows from investing activities |
|||
|
Acquisitions of tangible assets |
( |
( |
|
|
Proceeds from sale of tangible assets |
|
|
|
|
Acquisition of intangible assets |
( |
- |
|
|
Net cash flows from investing activities |
|
( |
|
|
Cash flows from financing activities |
|||
|
Interest paid |
( |
( |
|
|
Repayment of other borrowing |
( |
( |
|
|
Payments to finance lease creditors |
( |
( |
|
|
Net cash flows from financing activities |
( |
( |
|
|
Net increase/(decrease) in cash and cash equivalents |
|
( |
|
|
Cash and cash equivalents at 1 January |
( |
|
|
|
Cash and cash equivalents at 31 December |
(1,479,285) |
(1,501,187) |
|
East Sussex Press Limited
Notes to the Financial Statements for the Year Ended 31 December 2022
|
General information |
The company is a private company limited by share capital incorporated in England and Wales.
The address of its registered office is:
|
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.
The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 December 2022.
No Profit and Loss Account is presented for the company as permitted by section 408 of the Companies Act 2006. The company made a loss after tax for the financial year of £1,593,376 (2021 - £1,297,782).
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.
Parent Company Guarantee
East Sussex Press Limited has provided a guarantee in accordance with section 479A of the companies act 2006 to the below named subsidiary to allow them to claim exemption from audit.
Headford Digital Limited (09952084)
Going concern
After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.
East Sussex Press Limited
Notes to the Financial Statements for the Year Ended 31 December 2022
|
2 |
Accounting policies (continued) |
Significant judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources.
The estimates and associated 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 on-going 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 revision and future periods if the revision affects both current and future periods.
These financial statements contain significant estimates and judgements in relation to bad debt provisions and depreciation policies.
Revenue recognition
Revenue is measured at the value of consideration received or recoverable and comprises amounts receivable for goods and services, net of trade discounts, and value added tax.
Revenue is recognised in the profit and loss account when significant risks and rewards of ownership are transferred to the customer, normally on shipment of goods.
Income from advance billings is deferred and released to revenue when conditions for recognition have been fulfilled.
Government grants
Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income. The revenue classification has been used in these financial statements.
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.
Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements and on unused tax losses or tax credits in the group. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
East Sussex Press Limited
Notes to the Financial Statements for the Year Ended 31 December 2022
|
2 |
Accounting policies (continued) |
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets over their estimated useful lives, as follows:
|
Asset class |
Depreciation method and rate |
|
Leasehold land and buildings |
Straight line over life of lease |
|
Fixtures, fittings and equipment |
10% to 50% straight line |
|
Motor vehicles |
25% straight line and 10% reducing balance |
Business combinations
Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.
Goodwill
Goodwill, representing the excess of consideration for an acquired undertaking, or acquired trade and assets, compared with the fair value of net assets acquired is capitalised and written off evenly over 10 years as in the opinion of the directors this represents the period over which the goodwill is expected to give rise to economic benefits. Goodwill is reviewed for impairment at the end of the first full financial year following the acquisition and in other periods if events or changes in circumstances indicate that the carrying value may not be recoverable.
Intangible assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date if the fair value can be measured reliably.
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
|
Asset class |
Amortisation method and rate |
|
Development costs |
20% straight line |
|
Customer contracts |
20% straight line |
|
Goodwill |
5-20% straight line |
East Sussex Press Limited
Notes to the Financial Statements for the Year Ended 31 December 2022
|
2 |
Accounting policies (continued) |
Investments
Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment. Dividends on equity securities are recognised in income when receivable.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the debtors.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measure at cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.
East Sussex Press Limited
Notes to the Financial Statements for the Year Ended 31 December 2022
|
2 |
Accounting policies (continued) |
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Leases
Leases are classified as finance leases whenever the terms of the lease transfers substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the profit and loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
East Sussex Press Limited
Notes to the Financial Statements for the Year Ended 31 December 2022
|
2 |
Accounting policies (continued) |
Financial instruments
Classification
Recognition and measurement
Impairment
A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.
The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.
Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.
For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.
For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.
Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
East Sussex Press Limited
Notes to the Financial Statements for the Year Ended 31 December 2022
|
Revenue |
The analysis of the group's revenue for the year from continuing operations is as follows:
|
2022 |
2021 |
|
|
Rendering of services |
|
|
The analysis of the group's turnover for the year by geographical market is as follows:
|
2022 |
2021 |
|
|
UK |
|
|
|
Europe |
|
|
|
USA |
104,718 |
2,684,469 |
|
Rest of world |
|
|
|
|
|
|
Other operating income |
The analysis of the group's other operating income for the year is as follows:
|
2022 |
2021 |
|
|
Coronavirus job retention scheme |
- |
|
During the prior year income in relation to coronavirus job retention scheme was split above and below gross profit by £298,643 and £361,770 respectively. This is due to the respective costs being split between direct staff and administrative staff.
|
Operating profit |
Arrived at after charging/(crediting)
|
2022 |
2021 |
|
|
Depreciation expense |
|
|
|
Amortisation expense |
|
|
|
Foreign exchange gains |
( |
- |
|
Operating lease charges |
|
|
East Sussex Press Limited
Notes to the Financial Statements for the Year Ended 31 December 2022
|
Exceptional items |
|
2022 |
2021 |
|
|
Redundancy |
- |
18,862 |
|
Holiday pay |
- |
52,769 |
|
Executive bonuses |
218,466 |
180,250 |
|
Restructuring |
272,313 |
- |
|
Covid-19 grants |
(104,441) |
- |
|
386,338 |
251,881 |
Exceptional items in the current year consist of bonuses paid to directors, restructuring costs and covid rates and energy relief grants.
Exceptional items in the prior year consists of one off bonuses paid to the directors, redundancy costs and holiday pay.
|
Interest payable and similar expenses |
|
2022 |
2021 |
|
|
Interest on bank overdrafts and borrowings |
|
|
|
Interest on obligations under finance leases and hire purchase contracts |
|
|
|
Interest expense on other finance liabilities |
|
|
|
|
|
|
Staff costs |
Group
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2022 |
2021 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
387,906 |
358,738 |
|
|
|
The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:
|
2022 |
2021 |
|
|
Production |
|
|
|
Administration and support |
|
|
|
|
|
East Sussex Press Limited
Notes to the Financial Statements for the Year Ended 31 December 2022
|
8 |
Staff costs (continued) |
Company
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2022 |
2021 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
|
|
The average number of people employed by the company is 4 directors (2020 - 5).
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
|
2022 |
2021 |
|
|
Remuneration |
|
|
|
Contributions paid to money purchase schemes |
|
|
|
1,069,640 |
815,888 |
During the year the number of directors who were receiving benefits was as follows:
|
2022 |
2021 |
|
|
Accruing benefits under money purchase pension scheme |
|
|
In respect of the highest paid director:
|
2022 |
2021 |
|
|
Remuneration |
|
|
|
Company contributions to money purchase pension schemes |
|
|
|
Auditors' remuneration |
|
2022 |
2021 |
|
|
Audit of these financial statements |
30,860 |
28,575 |
|
Other fees to auditors |
||
|
All other non-audit services |
|
|
Non-audit fees paid to the auditors comprise taxation services of £5,830 (2021 - £5,830) and other services of £11,440 (2021 - £10,595).
East Sussex Press Limited
Notes to the Financial Statements for the Year Ended 31 December 2022
|
Taxation |
Tax charged/(credited) in the profit and loss account
|
2022 |
2021 |
|
|
Current taxation |
||
|
UK corporation tax |
|
|
|
UK corporation tax adjustment to prior periods |
( |
- |
|
284,892 |
11,513 |
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
|
|
|
Arising from changes in tax rates and laws |
( |
|
|
Arising from previously unrecognised tax loss, tax credit or temporary difference of prior periods |
(48,113) |
(57,213) |
|
Total deferred taxation |
|
|
|
Tax expense in the income statement |
|
|
The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2021 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
2022 |
2021 |
|
|
Profit before tax |
|
|
|
Corporation tax at standard rate |
|
|
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
|
Increase in UK and foreign current tax from unrecognised temporary difference from a prior period |
|
- |
|
Deferred tax credit from unrecognised tax loss or credit |
( |
( |
|
Deferred tax credit from unrecognised temporary difference from a prior period |
( |
- |
|
Tax (decrease)/increase from effect of capital allowances and depreciation |
( |
|
|
Total tax charge |
|
|
East Sussex Press Limited
Notes to the Financial Statements for the Year Ended 31 December 2022
|
11 |
Taxation (continued) |
Deferred tax
Group
Deferred tax assets and liabilities
|
2022 |
Liability |
|
Accelerated capital allowances |
|
|
Short term timing differences |
( |
|
|
|
2021 |
Asset |
Liability |
|
Accelerated capital allowances |
- |
|
|
Short term timing differences |
- |
( |
|
Taxable losses |
|
- |
|
|
|
Company
Deferred tax assets and liabilities
|
2022 |
Asset |
|
- |
|
2021 |
Asset |
|
Taxable losses |
|
East Sussex Press Limited
Notes to the Financial Statements for the Year Ended 31 December 2022
|
Intangible assets |
Group
|
Goodwill |
Development costs |
Contractual customer relationships |
Total |
|
|
Cost |
||||
|
At 1 January 2022 |
|
|
|
|
|
Additions |
- |
|
- |
|
|
At 31 December 2022 |
|
|
|
|
|
Amortisation |
||||
|
At 1 January 2022 |
|
|
|
|
|
Amortisation charge |
|
|
- |
|
|
At 31 December 2022 |
|
|
|
|
|
Carrying amount |
||||
|
At 31 December 2022 |
|
|
- |
|
|
At 31 December 2021 |
|
|
- |
|
Company
|
Goodwill |
|
|
Cost and carrying amount |
|
|
At 1 January 2022 and at 31 December 2022 |
|
East Sussex Press Limited
Notes to the Financial Statements for the Year Ended 31 December 2022
|
Tangible assets |
Group
|
Land and buildings leasehold |
Furniture, fittings and equipment |
Motor vehicles |
Total |
|
|
Cost |
||||
|
At 1 January 2022 |
|
|
|
|
|
Additions |
|
|
|
|
|
Disposals |
- |
( |
- |
( |
|
At 31 December 2022 |
|
|
|
|
|
Depreciation |
||||
|
At 1 January 2022 |
|
|
|
|
|
Charge for the year |
|
|
|
|
|
Eliminated on disposal |
- |
( |
- |
( |
|
At 31 December 2022 |
|
|
|
|
|
Carrying amount |
||||
|
At 31 December 2022 |
|
|
|
|
|
At 31 December 2021 |
|
|
|
|
The company has no tangible fixed assets at 31 December 2022 or 31 December 2021.
Assets held under finance leases and hire purchase contracts
The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:
|
2022 |
2021 |
|
|
Furniture, fittings and equipment |
6,743,429 |
8,152,010 |
East Sussex Press Limited
Notes to the Financial Statements for the Year Ended 31 December 2022
|
Investments |
Company
|
2022 |
2021 |
|
|
Investments in subsidiaries |
|
|
|
Subsidiaries |
£ |
|
Cost and carrying amount |
|
|
At 1 January 2022 and at 31 December 2022 |
|
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
|
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
||||
|
2022 |
2021 |
||||||
|
Subsidiary undertakings |
|||||||
|
|
England and Wales |
|
|
|
|||
|
|
England and Wales |
|
|
|
|||
|
|
England and Wales |
|
|
|
|||
|
|
England and Wales |
|
|
|
|||
|
|
England and Wales |
|
|
|
|||
|
Subsidiary undertakings |
|
Pureprint Group Limited The principal activity of Pureprint Group Limited is |
|
Pureprint Abstract Limited The principal activity of Pureprint Abstract Limited is |
|
Imprint Creative Print Solutions Limited The principal activity of Imprint Creative Print Solutions Limited is |
|
Perfect Screen Print Limited The principal activity of Perfect Screen Print Limited is |
|
Headford Digital Limited The principal activity of Headford Digital Limited is |
The registered office addresses are the same as the company.
East Sussex Press Limited
Notes to the Financial Statements for the Year Ended 31 December 2022
|
Stocks |
|
Group |
Company |
|||
|
2022 |
2021 |
2022 |
2021 |
|
|
Raw materials and consumables |
668,352 |
681,883 |
- |
- |
|
Work in progress |
949,300 |
824,955 |
- |
- |
|
Finished goods and goods for resale |
40,000 |
82,000 |
- |
- |
|
1,657,652 |
1,588,838 |
- |
- |
|
|
Debtors |
|
Group |
Company |
||||
|
Note |
2022 |
2021 |
2022 |
2021 |
|
|
Trade debtors |
|
|
- |
- |
|
|
Other debtors |
|
|
- |
- |
|
|
Prepayments |
|
|
|
|
|
|
Deferred tax assets |
- |
|
- |
|
|
|
Corporation tax asset |
|
- |
- |
- |
|
|
|
|
|
|
||
|
Cash and cash equivalents |
|
Group |
Company |
|||
|
2022 |
2021 |
2022 |
2021 |
|
|
Cash on hand |
|
|
- |
- |
|
Cash at bank |
|
|
|
|
|
|
|
|
|
|
|
Bank overdrafts |
( |
( |
- |
- |
|
Cash and cash equivalents in statement of cash flows |
(1,479,285) |
(1,501,187) |
645 |
42,461 |
East Sussex Press Limited
Notes to the Financial Statements for the Year Ended 31 December 2022
|
Creditors |
|
Group |
Company |
||||
|
Note |
2022 |
2021 |
2022 |
2021 |
|
|
Due within one year |
|||||
|
Loans and borrowings |
|
|
- |
|
|
|
Trade creditors |
|
|
- |
- |
|
|
Amounts due to group undertakings |
- |
- |
|
|
|
|
Social security and other taxes |
|
|
|
|
|
|
Other creditors |
|
|
|
|
|
|
Accrued expenses |
|
|
|
|
|
|
Corporation tax liability |
285,535 |
11,513 |
- |
- |
|
|
|
|
|
|
||
|
Due after one year |
|||||
|
Loans and borrowings |
|
|
- |
|
|
|
Loans and borrowings |
|
Group |
Company |
|||
|
2022 |
2021 |
2022 |
2021 |
|
|
Current loans and borrowings |
||||
|
Bank overdrafts |
|
|
- |
- |
|
HP and finance lease liabilities |
|
|
- |
- |
|
Amounts due to related parties |
- |
|
- |
|
|
|
|
- |
|
|
|
Group |
Company |
|||
|
2022 |
2021 |
2022 |
2021 |
|
|
Non-current loans and borrowings |
||||
|
HP and finance lease liabilities |
|
|
- |
- |
|
Amounts due to related parties |
- |
1,050,000 |
- |
1,050,000 |
|
|
|
- |
|
|
East Sussex Press Limited
Notes to the Financial Statements for the Year Ended 31 December 2022
|
19 |
Loans and borrowings (continued) |
During the year the group repaid their related party loan in full. The balance repayable at year end was £nil (2021 - £1,725,000) which comprised unsecured fixed rate loan notes and attracted interest at a fixed rate of 8% per annum.
Interest has been charged on the bank loan at a variable rate of LIBOR plus 3% in the current and comparative periods, payable quarterly.
Finance lease payments represent rentals payable by the company or the group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
Included within bank overdrafts is £2,521,961 (2021 - £3,032,026) due to the bank in respect of invoice finance discounting. Included within cash at bank and in hand is £nil (2021 - £14,867) also in respect of invoice finance discounting. This amount is secured by a fixed and floating charge over the assets of the company in favour of Barclays Bank PLC.
|
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £
Contributions totalling £
|
Share capital |
Allotted, called up and fully paid shares
|
2022 |
2021 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
610 |
|
610 |
|
|
|
390 |
|
390 |
|
|
|
41 |
|
41 |
|
|
|
|
|
|
Rights, preferences and restrictions
|
The company's ordinary shares and 'A' ordinary shares, which carry no right to fixed income, each carry the right to one vote at the general meetings of the company.
|
East Sussex Press Limited
Notes to the Financial Statements for the Year Ended 31 December 2022
|
Obligations under leases and hire purchase contracts |
Group
Finance leases
The total of future minimum lease payments is as follows:
|
2022 |
2021 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
|
|
Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
Operating leases
The total of future minimum lease payments is as follows:
|
2022 |
2021 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
Later than five years |
|
|
|
|
|
|
Contingent liabilities |
Company
The company has a cross guarantee, secured by a fixed and floating charge, against debts owed by Pureprint Group Limited to Barclays Bank PLC. The contingent liability at 31 December 2022 was £2,521,961 (2021 - £3,032,026).
East Sussex Press Limited
Notes to the Financial Statements for the Year Ended 31 December 2022
|
Related party transactions |
Group
Summary of transactions with key management
During the year the group paid rent of £31,000 (2021 - £31,000) to the parents of one of the directors.
Company
Transactions with entities with significant influence over the group
BGF Investments LP
(entity with significant influence over the group and the company)
During the year, interest of £169,030 (2021 - £169,030) was payable by East Sussex Press Limited to the BGF Investments LP. At the year end, Nil (2021 - £1,725,000) was due to the BGF Investments LP in the form of fixed rate loan notes. The related party loan attracts interest at a fixed rate of 8% per annum, payable quarterly.
Transactions with entities under common directorship
Nash Bevan Associates Limited
(entity controlled by a director)
During the year, non executive directorship fees of £nil (2021 - £36,956) were payable to Nash Bevan Associates Limited. At the year end, £nil (2021 - £nil) was due to Nash Bevan Associates Limited.
Fielden Properties Limited
(entity controlled by a director)
During the year, Pureprint Group Limited, a wholly owned subsidiary of the group, incurred costs of £150,000 (2021 - £150,000) in relation to the lease of Beacon House from Fielden Properties Limited. At the balance sheet date, the company owed £nil (2021 - £37,500) to Fielden Properties Limited.
|
Parent and ultimate parent undertaking |
The ultimate controlling party is