NL Group Limited Company accounts

NL Group Limited Company accounts

NL GROUP LIMITED - Company Information

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COMPANY REGISTRATION NUMBER: 4295083
NL GROUP LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 September 2023
NL GROUP LIMITED
FINANCIAL STATEMENTS
YEAR ENDED 30 SEPTEMBER 2023
Contents
Page
Officers and Professional Advisers
1
Strategic Report
2
Directors' Report
5
Independent Auditor's Report to the Members
7
Statement of Comprehensive Income
13
Statement of Financial Position
14
Statement of Changes in Equity
16
Statement of Cash Flows
17
Notes to the Financial Statements
18
NL GROUP LIMITED
OFFICERS AND PROFESSIONAL ADVISERS
The Board of Directors
R McGlone
M W Hathway
A C Wearing
Company Secretary
M W Hathway
Registered Office
Riverside House
3 Earls Court
Henry Boot Way
Hull
East Riding of Yorkshire
HU4 7DY
Auditor
Streets Audit LLP
Chartered accountants & statutory auditor
Halifax House
30 George Street
Hull
East Yorkshire
HU1 3AJ
NL GROUP LIMITED
STRATEGIC REPORT
YEAR ENDED 30 SEPTEMBER 2023
The directors present their strategic report for the year ended 30 September 2023.
Fair Review of the Business
The principal activity of the Company in the year under review was the provision of complex care services for people in their own homes, and the supply of staff to publicly and privately funded acute healthcare settings. The results of the Company for the year are detailed in the attached financial statements. The directors are pleased with the performance of the Company in the year which generated turnover of £18,264,059 and profit before tax of £4,704,691. The directors are proud of the care the Company has provided for service users and patients. The Company has continued to invest in training and recruitment, and it has strengthened its management team. The key financial performance indicators were as follows: Turnover £18,264,059 (2022: £16,185,359) Gross profit £7,066,382 (2022: £6,965,563) Operating profit £4,657,124 (2022: £5,341,209) Cash at bank and on hand £7,485,038 (2022: £5,037,514) Average number of employees 248 (2022: 209) Environment The Company is committed to minimising its environmental impact and has adopted a carbon reduction plan. Employees The directors recognise the importance of investing in the Company's employees through training and the acquisition of relevant qualifications. Employee engagement is of critical importance and is encouraged through a number of formal and informal channels. The Company has a flat management structure and approachable senior leaders. Applications for employment by people with disabilities are always fully considered, bearing in mind the aptitudes of the applicant concerned and the requirements of the role applied for. In the event that staff members might become disabled the Company will make every effort to ensure that the person can remain in employment with the Company.
Principal Risks and Uncertainties
The directors actively consider and manage the Company's risks and consider the following material areas. Operational risk management Revenue risk The Company's principal customers are government healthcare bodies, local authorities and private hospitals. These customers can be impacted by structural reorganisation and funding changes. However, a very strong commitment to healthcare spending is shared by all major political parties in the UK and the Company ensures that it develops and maintains its relationships with commissioners and people likely to become commissioners. Clinical risk The Directors recognise that the care of service users is of the utmost importance and is the highest priority of the Company. The Company is regulated by the Care Quality Commission with a current 'Good' rating. The Company invests significant resources in its Compliance team, third-party software and regular audits by external bodies. It is ISO9001 and ISO27001 compliant. The Company ensures that the staff members performing clinical functions are adequately trained, qualified and supervised to perform their duties. Financial risk management objectives and policies The Company's principal financial instruments comprise bank balances, trade creditors and trade debtors. The Company has no debt and substantial cash reserves; £7,485,038 equivalent to over three months operating costs. The Company has no exposure to investment or foreign currency risk as all cash is held in GBP. The Company makes use of deposit and money market facilities when appropriate. The Company's trade debtors are a mixture of NHS, local authority and private organisations. These are managed rigorously and the Company monitors debtor days as a key performance indicator. The Company's trade creditors are primarily concerned with the purchase of healthcare consumables and overhead supplies. The Company ensures that sufficient funds are available to ensure that these are paid in line with agreed payment terms.
Going Concern Basis
The Company is profitable and has a very strong balance sheet including £7,485,038 of cash at bank. It provides services of critical importance the demand for which will rise over the coming years and decades as the UK population ages, needs become more complex and technology improvements allow more services to be delivered in the home. The directors have adopted the going concern basis for the preparation of these financial statements.
This report was approved by the board of directors on 24 May 2024 and signed on behalf of the board by:
M W Hathway
A C Wearing
Director
Director
Registered office:
Riverside House
3 Earls Court
Henry Boot Way
Hull
East Riding of Yorkshire
HU4 7DY
NL GROUP LIMITED
DIRECTORS' REPORT
YEAR ENDED 30 SEPTEMBER 2023
The directors present their report and the financial statements of the company for the year ended 30 September 2023 .
Directors
The directors who served the company during the year were as follows:
R McGlone
M W Hathway
A C Wearing was appointed as a director on 15 May 2024.
Dividends
Particulars of recommended dividends are detailed in note 12 to the financial statements.
Disclosure of Information in the Strategic Report
Information in respect of business review, future developments and principal risks and uncertainties is included in the strategic report.
Directors' Responsibilities Statement
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 company and the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on 24 May 2024 and signed on behalf of the board by:
M W Hathway
A C Wearing
Director
Director
Registered office:
Riverside House
3 Earls Court
Henry Boot Way
Hull
East Riding of Yorkshire
HU4 7DY
NL GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF NL GROUP LIMITED
YEAR ENDED 30 SEPTEMBER 2023
Opinion
We have audited the financial statements of NL Group Limited (the 'company') for the year ended 30 September 2023 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity, statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 company's affairs as at 30 September 2023 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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's responsibilities for the audit of the financial statements section of our report. We are independent of the company 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 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 other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. 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.
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 strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the 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 the 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 or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the 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 directors' responsibilities statement, 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 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 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. 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: Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: - the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; - we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the company and the sector in which it operates; - we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including health and safety legislation, the Companies Act 2006, taxation legislation, data protection,anti-bribery, employment and environmental legislation; - we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence and required licences; and - identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: - making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and - considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we: - performed analytical procedures to identify any unusual or unexpected relationships; - tested journal entries to identify unusual transactions; - assessed whether judgements and assumptions made in determining the accounting estimates set out in Note 1 were indicative of potential bias; and - investigated the rationale behind significant or unusual transactions. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: - agreeing financial statement disclosures to underlying supporting documentation; - reading the minutes of meetings of those charged with governance; - enquiring of management as to actual and potential litigation and claims; and - reviewing correspondence with HMRC, relevant regulators and the company's legal advisors. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Other Matters
This is the first year in which the financial statements have been subject to audit. As such, the comparative figures have not been audited.
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.
Robert Anderson
(Senior Statutory Auditor)
For and on behalf of
Streets Audit LLP
Chartered accountants & statutory auditor
Halifax House
30 George Street
Hull
East Yorkshire
HU1 3AJ
5 June 2024
NL GROUP LIMITED
STATEMENT OF COMPREHENSIVE INCOME
YEAR ENDED 30 SEPTEMBER 2023
2023
2022
Note
£
£
Turnover
4
18,264,059
16,185,359
Cost of sales
11,197,677
9,219,796
---------------
---------------
Gross Profit
7,066,382
6,965,563
Administrative expenses
2,409,258
1,624,354
--------------
--------------
Operating Profit
5
4,657,124
5,341,209
Other interest receivable and similar income
9
69,715
2,447
Interest payable and similar expenses
10
22,148
5,212
--------------
--------------
Profit Before Taxation
4,704,691
5,338,444
Tax on profit
11
1,083,433
1,018,495
--------------
--------------
Profit for the Financial Year and Total Comprehensive Income
3,621,258
4,319,949
--------------
--------------
All the activities of the company are from continuing operations.
NL GROUP LIMITED
STATEMENT OF FINANCIAL POSITION
30 September 2023
2023
2022
Note
£
£
£
£
Fixed Assets
Intangible assets
13
–
25,000
Tangible assets
14
147,992
171,254
-----------
-----------
147,992
196,254
Current Assets
Debtors
15
4,525,036
3,346,624
Cash at bank and in hand
7,485,038
5,037,514
---------------
--------------
12,010,074
8,384,138
Creditors: amounts falling due within one year
16
1,242,001
1,111,049
---------------
--------------
Net Current Assets
10,768,073
7,273,089
---------------
--------------
Total Assets Less Current Liabilities
10,916,065
7,469,343
Creditors: amounts falling due after more than one year
17
2,907
81,455
Provisions
Taxation including deferred tax
19
–
2,172
---------------
--------------
Net Assets
10,913,158
7,385,716
---------------
--------------
NL GROUP LIMITED
STATEMENT OF FINANCIAL POSITION (continued)
30 September 2023
2023
2022
Note
£
£
£
£
Capital and Reserves
Called up share capital
22
1,000
2,500
Profit and loss account
10,912,158
7,383,216
---------------
--------------
Shareholders Funds
10,913,158
7,385,716
---------------
--------------
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
These financial statements were approved by the board of directors and authorised for issue on 24 May 2024 , and are signed on behalf of the board by:
M W Hathway
A C Wearing
Director
Director
Company registration number: 4295083
NL GROUP LIMITED
STATEMENT OF CHANGES IN EQUITY
YEAR ENDED 30 SEPTEMBER 2023
Called up share capital
Profit and loss account
Total
£
£
£
At 1 October 2021
2,500
3,355,267
3,357,767
Profit for the year
4,319,949
4,319,949
--------
--------------
--------------
Total Comprehensive Income for the Year
–
4,319,949
4,319,949
Dividends paid and payable
12
–
( 292,000)
( 292,000)
--------
--------------
--------------
Total Investments by and Distributions to Owners
–
( 292,000)
( 292,000)
At 30 September 2022
2,500
7,383,216
7,385,716
Profit for the year
3,621,258
3,621,258
--------
--------------
--------------
Total Comprehensive Income for the Year
–
3,621,258
3,621,258
Dividends paid and payable
12
–
( 93,815)
( 93,815)
Cancellation of subscribed capital
( 1,500)
1,499
( 1)
--------
---------
---------
Total Investments by and Distributions to Owners
( 1,500)
( 92,316)
( 93,816)
--------
--------------
--------------
At 30 September 2023
1,000
10,912,158
10,913,158
--------
--------------
--------------
NL GROUP LIMITED
STATEMENT OF CASH FLOWS
YEAR ENDED 30 SEPTEMBER 2023
2023
2022
£
£
Cash Flows from Operating Activities
Profit for the financial year
3,621,258
4,319,949
Adjustments for:
Depreciation of tangible assets
49,216
49,175
Amortisation of intangible assets
25,000
25,000
Other interest receivable and similar income
( 69,715)
( 2,447)
Interest payable and similar expenses
22,148
5,212
Tax on profit
1,083,433
1,018,495
Accrued expenses/(income)
116,272
( 13,359)
Changes in:
Trade and other debtors
( 1,178,412)
( 1,733,710)
Trade and other creditors
( 57,499)
291,447
--------------
--------------
Cash generated from operations
3,611,701
3,959,762
Interest paid
( 22,148)
( 5,212)
Interest received
69,715
2,447
Tax paid
( 1,085,605)
( 1,026,613)
--------------
--------------
Net cash from operating activities
2,573,663
2,930,384
--------------
--------------
Cash Flows from Investing Activities
Purchase of tangible assets
( 25,954)
( 7,281)
--------------
--------------
Net cash used in investing activities
( 25,954)
( 7,281)
--------------
--------------
Cash Flows from Financing Activities
Payments of share issue costs
( 1,500)
–
Purchase of own shares
1,499
–
Payments of finance lease liabilities
( 6,369)
( 10,168)
Dividends paid
( 93,815)
( 292,000)
--------------
--------------
Net cash used in financing activities
( 100,185)
( 302,168)
--------------
--------------
Net Increase in Cash and Cash Equivalents
2,447,524
2,620,935
Cash and Cash Equivalents at Beginning of Year
5,037,514
2,416,579
--------------
--------------
Cash and Cash Equivalents at End of Year
7,485,038
5,037,514
--------------
--------------
NL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 30 SEPTEMBER 2023
1. General Information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Riverside House, 3 Earls Court, Henry Boot Way, Hull, East Riding of Yorkshire, HU4 7DY.
2. Statement of Compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting Policies
Basis of Preparation
The financial statements have been prepared on the historical cost basis. The financial statements are prepared in sterling, which is the functional currency of the entity.
Judgements and Key Sources of Estimation Uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Key sources of estimation uncertainty Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows: The choice of amortisation of intangible assets and depreciation rates of fixed assets and residual values, the assessment of future profits to measure deferred tax assets recognised in financial statements, an assessment of accrual estimates and the provision made for doubtful debts.
Revenue Recognition
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for services rendered, stated net of discounts and of Value Added Tax. Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that it is probable the expenses recognised will be recovered.
Income Tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Foreign Currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.
Intangible Assets
Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at revalued amounts, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Computer software
-
25% straight line
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible Assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Fixtures and equipment
-
20% straight line
Motor vehicles
-
20% reducing balance
Impairment of Fixed Assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs.
Finance Leases and Hire Purchase Contracts
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense.
Defined Contribution Plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.
4. Turnover
Turnover arises from:
2023
2022
£
£
Rendering of services
18,264,059
16,185,359
---------------
---------------
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5. Operating Profit
Operating profit or loss is stated after charging:
2023
2022
£
£
Amortisation of intangible assets
25,000
25,000
Depreciation of tangible assets
49,216
49,175
Foreign exchange differences
309
328
---------
---------
6. Auditor's Remuneration
2023
2022
£
£
Fees payable for the audit of the financial statements
14,000
–
---------
-----
Fees payable to the company's auditor and its associates for other services:
Other non-audit services
78,238
–
---------
-----
7. Staff Costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2023
2022
No.
No.
Administrative staff
40
31
Service provision staff
208
178
-----
-----
248
209
-----
-----
The aggregate payroll costs incurred during the year, relating to the above, were:
2023
2022
£
£
Wages and salaries
7,931,834
6,607,817
Social security costs
788,580
705,886
Other pension costs
320,961
129,012
--------------
--------------
9,041,375
7,442,715
--------------
--------------
8. Directors' Remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2023
2022
£
£
Remuneration
26,202
( 74,737)
Company contributions to defined contribution pension plans
170,000
–
-----------
---------
196,202
( 74,737)
-----------
---------
The number of directors who accrued benefits under company pension plans was as follows:
2023
2022
No.
No.
Defined contribution plans
2
2
-----
-----
9. Other Interest Receivable and Similar Income
2023
2022
£
£
Interest on bank deposits
69,715
2,447
---------
--------
10. Interest Payable and Similar Expenses
2023
2022
£
£
Interest on obligations under finance leases and hire purchase contracts
5,561
5,212
Other interest payable and similar charges
16,587
–
---------
--------
22,148
5,212
---------
--------
11. Tax on Profit
Major components of tax expense
2023
2022
£
£
Current tax:
UK current tax expense
1,085,605
1,026,613
Deferred tax:
Origination and reversal of timing differences
( 2,172)
( 8,118)
--------------
--------------
Tax on profit
1,083,433
1,018,495
--------------
--------------
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is higher than (2022: higher than) the standard rate of corporation tax in the UK of 22 % (2022: 19 %).
2023
2022
£
£
Profit on ordinary activities before taxation
4,704,691
5,338,444
--------------
--------------
Profit on ordinary activities by rate of tax
1,034,865
1,014,304
Effect of expenses not deductible for tax purposes
53,222
21,653
Effect of capital allowances and depreciation
( 4,654)
( 17,462)
--------------
--------------
Tax on profit
1,083,433
1,018,495
--------------
--------------
12. Dividends
Dividends on shares classed as debt
2023
2022
£
£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year )
93,815
292,000
---------
-----------
13. Intangible Assets
Computer software
£
Cost
At 1 October 2022 and 30 September 2023
100,000
-----------
Amortisation
At 1 October 2022
75,000
Charge for the year
25,000
-----------
At 30 September 2023
100,000
-----------
Carrying amount
At 30 September 2023
–
-----------
At 30 September 2022
25,000
-----------
14. Tangible Assets
Fixtures and fittings
Motor vehicles
Total
£
£
£
Cost
At 1 October 2022
198,025
161,118
359,143
Additions
25,954
–
25,954
-----------
-----------
-----------
At 30 September 2023
223,979
161,118
385,097
-----------
-----------
-----------
Depreciation
At 1 October 2022
144,145
43,744
187,889
Charge for the year
25,741
23,475
49,216
-----------
-----------
-----------
At 30 September 2023
169,886
67,219
237,105
-----------
-----------
-----------
Carrying amount
At 30 September 2023
54,093
93,899
147,992
-----------
-----------
-----------
At 30 September 2022
53,880
117,374
171,254
-----------
-----------
-----------
Finance leases and hire purchase contracts
Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:
Motor vehicles
£
At 30 September 2023
89,498
---------
At 30 September 2022
115,140
-----------
15. Debtors
2023
2022
£
£
Trade debtors
1,757,777
2,391,216
Prepayments and accrued income
100,834
81,271
Other debtors
2,666,425
874,137
--------------
--------------
4,525,036
3,346,624
--------------
--------------
16. Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
71,421
84,126
Accruals and deferred income
277,946
161,674
Social security and other taxes
686,630
840,294
Obligations under finance leases and hire purchase contracts
79,189
7,010
Other creditors
126,815
17,945
--------------
--------------
1,242,001
1,111,049
--------------
--------------
Creditors totalling £79,189 (2022-£7,010) are secured against fixed assets.
17. Creditors: amounts falling due after more than one year
2023
2022
£
£
Obligations under finance leases and hire purchase contracts
2,907
81,455
--------
---------
Creditors totalling £2,907 (2022-£81,455) are secured against fixed assets.
18. Finance Leases and Hire Purchase Contracts
The total future minimum lease payments under finance leases and hire purchase contracts are as follows:
2023
2022
£
£
Not later than 1 year
79,189
7,010
Later than 1 year and not later than 5 years
2,907
81,455
---------
---------
82,096
88,465
---------
---------
19. Provisions
Deferred tax (note 20)
£
At 1 October 2022
2,172
Charge against provision
( 2,172)
--------
At 30 September 2023
–
--------
20. Deferred Tax
The deferred tax included in the statement of financial position is as follows:
2023
2022
£
£
Included in provisions (note 19)
–
2,172
-----
--------
The deferred tax account consists of the tax effect of timing differences in respect of:
2023
2022
£
£
Accelerated capital allowances
–
2,172
-----
--------
21. Employee Benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 150,961 (2022: £ 129,012 ).
22. Called Up Share Capital
Issued, called up and fully paid
2023
2022
No.
£
No.
£
Ordinary shares of £ 1 each
1,000
1,000
1,000
1,000
Ordinary E Class shares of £ 1 each
–
–
1,500
1,500
--------
--------
--------
--------
1,000
1,000
2,500
2,500
--------
--------
--------
--------
Share movements
No.
£
Ordinary E Class
At 1 October 2022
1,500
1,500
Shares cancelled
(1,500)
(1,500)
--------
--------
At 30 September 2023
–
–
--------
--------
During the year the E shares were cancelled in order to simplify the capital structure of the company. All of the remaining ordinary shares have equal and full rights to participate in dividends and distributions on a winding up.
23. Analysis of Changes in Net Debt
At 1 Oct 2022
Cash flows
At 30 Sep 2023
£
£
£
Cash at bank and in hand
5,037,514
4,896,548
9,934,062
Debt due within one year
(7,010)
(72,179)
(79,189)
Debt due after one year
(81,455)
78,548
(2,907)
--------------
--------------
--------------
4,949,049
4,902,917
9,851,966
--------------
--------------
--------------
NL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (continued)
YEAR ENDED 30 SEPTEMBER 2023
24. Operating Leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
2023
2022
£
£
Not later than 1 year
84,989
97,775
Later than 1 year and not later than 5 years
213,635
205,400
-----------
-----------
298,624
303,175
-----------
-----------
25. Directors' Advances, Credits and Guarantees
During the year the directors entered into the following advances and credits with the company:
2023
Balance brought forward
Advances/ (credits) to the directors
Amounts repaid
Balance outstanding
£
£
£
£
R McGlone
458,362
731,646
–
1,190,008
M W Hathway
369,068
820,941
–
1,190,009
-----------
--------------
-----
--------------
827,430
1,552,587
–
2,380,017
-----------
--------------
-----
--------------
2022
Balance brought forward
Advances/ (credits) to the directors
Amounts repaid
Balance outstanding
£
£
£
£
R McGlone
165,434
338,018
( 45,090)
458,362
M W Hathway
77,298
570,903
( 279,133)
369,068
-----------
-----------
-----------
-----------
242,732
908,921
( 324,223)
827,430
-----------
-----------
-----------
-----------
Balances are interest free and repayable on demand. Additional Section 455 Corporation Tax would be payable on advances in the year if the advances are not repaid within nine months of the year end.
26. Related Party Transactions
The company operates from premises owned by the directors' self administered pension scheme. The rent paid for those premises for the year was £64,000 (2022 - £64,000).
27. Controlling Party
The company is under the joint control of the two directors by virtue of their controlling shareholding in the company.