REGISTERED NUMBER:
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Strategic Report, Report of the Director and |
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Audited Financial Statements for the Year Ended 31 March 2021 |
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The Contact Company Ltd |
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REGISTERED NUMBER:
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Strategic Report, Report of the Director and |
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Audited Financial Statements for the Year Ended 31 March 2021 |
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for
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The Contact Company Ltd |
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The Contact Company Ltd (Registered number: 05548951)
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Contents of the Financial Statements
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for the Year Ended 31 March 2021
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Page
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Company Information
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1
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Strategic Report
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2
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Report of the Director
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4
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Report of the Independent Auditors
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6
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Statement of Comprehensive Income
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10
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Balance Sheet
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11
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Statement of Changes in Equity
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12
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Notes to the Financial Statements
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13
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The Contact Company Ltd
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Company Information
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for the Year Ended 31 March 2021
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DIRECTOR:
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REGISTERED OFFICE:
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REGISTERED NUMBER:
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AUDITORS:
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New Century House
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Greenbank Technology Park
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Challenge Way
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Blackburn
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Lancashire
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BB1 5QB
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The Contact Company Ltd (Registered number: 05548951)
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Strategic Report
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for the Year Ended 31 March 2021
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The director presents their strategic report for the year ended 31 March 2021.
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PRINCIPAL ACTIVITY
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The principal activity of the company in the year under review was that of an outsourced call centre.
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REVIEW OF BUSINESS
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This year has been an unprecedented year for many due to the Pandemic. The Contact Company (TCC) has adapted it’s
delivery by creating agility and being flexible with its business decisions.
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We have this year moved quickly and created a Working from Home Solution (WFH) allowing over 500+ staff to WFH
along with our support staff. This flexibility and also creating Covid secure individual work stations allowed us to
continue servicing the demand for our current clients whilst onboarding a number of clients in a safe and secure manner
this has enabled us to grow our sales to £41,128,852 an increase of 61% (2020: £25,604,008)
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Throughout the pandemic we have worked tirelessly on maintaining relationships with our current clients whilst
fostering new relationships with a number of new partners which will will go live through 2021-2022.
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The Company has invested further funds amounting to £1,688,806 into fixed assets, including a new switch/laptop and
WFH solution and also changing the layout of the Contact Centre to ensure all staff have their own work station. Our
current headcount is 955 and we will be having a significant increase as we move staff over to permanent contracts with
TCC over the coming months.
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The profile and brand of TCC has been further increased during the year and this will lead us to be able to build on our
current client base. The profit for this year is £1,181,823 which is an increase of £2,263,038 on 2020.
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PRINCIPAL RISKS AND UNCERTAINTIES
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Risk factors within the industry sector remain from the lower cost off-shore providers. However, as they struggle with
increasing costs in their own regions it gives opportunities to the better added value operations based on The Contact
Company model. The government have indicated that they are committed to increasing the minimum wage, a policy
which we fully support, however, the announced increases will effect costs which will have to be passed on to our
clients. The other principal risk is the opportunity to grow in a controlled manner especially bearing in mind the
requirement for finance and the availability of employees. Brexit has not had or expected to have a direct impact on
activities, however, we are obviously subject to the general economic effect on the country that Brexit may influence and
the inflationary pressures which may affect borrowing costs.
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FINANCIAL RISK MANAGEMENT
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As in any business financial risk management is always a concern. The company is fortunate that our client base is made
up of well-known and financially sound businesses.
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We strive to ensure that we do not become dependent on one company or sector. The company funds capital projects
using specific specialised lenders since the company is dependent upon technology. Projects are usually sales driven to
enable the cash flows to support the investment. Working capital arrangements with our bank enable the required funds
to be available when required. Credit control is vital together with invoice discounting since debtor payment terms are
longer than creditor payment terms making timing of utmost important.
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The Contact Company Ltd (Registered number: 05548951)
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Strategic Report
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for the Year Ended 31 March 2021
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FUTURE DEVELOPMENTS
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The company has increased its turnover every year since inception in 2006. Growth becomes harder since our principle
asset is our workforce. Management of people is a difficult process whist still maintaining quality and service at the right
price. Technology will help but service will always rely on people. Any future growth will be away from Birkenhead
since the key restriction will be staff availability.
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ON BEHALF OF THE BOARD:
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20 May 2021
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The Contact Company Ltd (Registered number: 05548951)
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Report of the Director
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for the Year Ended 31 March 2021
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The director presents his report with the financial statements of the company for the year ended 31 March 2021.
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PRINCIPAL ACTIVITY
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The principal activity of the company in the year under review was that of an outsourced call centre. |
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DIVIDENDS
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The directors recommend that no dividend be paid for the year ended 31 March 2021 (2020: £nil).
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DIRECTORS
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Other changes in directors holding office are as follows:
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POLITICAL DONATIONS AND EXPENDITURE
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The company made donations totalling £160 during the year to various local charities and organisations.
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GOING CONCERN
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At the time of approving the financial statements the directors have a reasonable expectation that the company has
adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt
the going concern basis of accounting in preparing the financial statements.
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EMPLOYEES
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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 company continues and that the appropriate training is arranged. It is the policy of the company
that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of
other employees.
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The company's policy is to consult and discuss with employees, through regular meetings, matters likely to affect
employees' interests.
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Information about 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 company's
performance
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The Contact Company Ltd (Registered number: 05548951)
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Report of the Director
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for the Year Ended 31 March 2021
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DIRECTOR'S RESPONSIBILITIES STATEMENT
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STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
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So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditor is unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditor is aware of that information. |
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AUDITORS
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The auditor, PM+M Solutions for Business LLP, is deemed to be reappointed under section 487(2) of the Companies
Act 2006.
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ON BEHALF OF THE BOARD:
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Report of the Independent Auditors to the Members of
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The Contact Company Ltd
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Opinion
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We have audited the financial statements of The Contact Company Ltd (the 'company') for the year ended 31 March 2021 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity 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). |
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In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 March 2021 and of its 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. |
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Basis for opinion
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We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law.
Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the
financial statements section of our report. We are independent of the 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.
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Conclusions relating to going concern
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In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in
the preparation of the financial statements is appropriate.
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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.
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Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant
sections of this report.
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Other information
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The director is responsible for the other information. The other information comprises the information in the Strategic
Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors
thereon.
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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.
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In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the financial statements or our knowledge
obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or
apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the
financial statements themselves. If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
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Opinions on other matters prescribed by the Companies Act 2006
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In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Strategic Report and the Report of the Director for the financial year for which the
financial statements are prepared is consistent with the financial statements; and
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the Strategic Report and the Report of the Director have been prepared in accordance with applicable legal
requirements.
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Report of the Independent Auditors to the Members of
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The Contact Company Ltd
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Matters on which we are required to report by exception
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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 Report of the Director.
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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:
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adequate accounting records have not been kept, or returns adequate for our audit have not been received from
branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of director's remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit.
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Responsibilities of director
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As explained more fully in the Director's Responsibilities Statement set out on pages four and five, the director is
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 director determines necessary to enable the preparation of financial statements that are
free from material misstatement, whether due to fraud or error.
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In preparing the financial statements, the director is 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 director either intends to liquidate the company or to cease operations, or has no realistic
alternative but to do so.
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Report of the Independent Auditors to the Members of
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The Contact Company Ltd
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Auditors' responsibilities for the audit of the financial statements
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Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs
(UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these financial statements.
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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:
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We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and
then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient
and appropriate to provide a basis for our opinion.
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Identifying and assessing potential risks related to irregularities
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In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and
non-compliance with laws and regulations, we have considered the following:
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· the nature of the industry and sector, control environment and business performance including the design of the
Company's remuneration policies, key drivers for directors' remuneration, bonus levels and performance targets;
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· results of our enquiries of management about their own identification and assessment of the risks of irregularities;
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· any matters we identified having obtained and reviewed the Company's documentation of their policies and procedures
relating to:
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· identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of
non-compliance;
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· detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged
fraud;
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· the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;
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· the matters discussed among the audit engagement team including significant component audit teams and involving
relevant specialists regarding how and where fraud might occur in the financial statements and any potential indicators
of fraud.
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As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for
fraud and identified the greatest potential for fraud in the following areas: timing of recognition of commercial income,
posting of unusual journals and complex transactions; and manipulating the Company's performance profit measures and
other key performance indicators to meet remuneration targets and externally communicated targets. In common with all
audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management
override.
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We also obtained an understanding of the legal and regulatory frameworks that the Company operates in, focusing on
provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures
in the financial statements. The key laws and regulations we considered in this context included UK Companies Act,
employment law, health and safety, pensions legislation and tax legislation.
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Audit response to risks identified
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Our procedures to respond to risks identified included the following:
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· reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with
provisions of relevant laws and regulations described as having a direct effect on the financial statements;
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· enquiring of management concerning actual and potential litigation and claims;
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· performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material
misstatement due to fraud;
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· reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC; and
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Report of the Independent Auditors to the Members of
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The Contact Company Ltd
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· in addressing the identified risks of fraud through management override of controls, testing the appropriateness of
journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are
indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or
outside the normal course of business.
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Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material
misstatements in the financial statements, even though we have properly planned and performed our audit in accordance
with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is
from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures
required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of
non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect
non-compliance with all laws and regulations.
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A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting
Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.
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Use of our report
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This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the
Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those
matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's
members as a body, for our audit work, for this report, or for the opinions we have formed.
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for and on behalf of
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New Century House
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Greenbank Technology Park
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Challenge Way
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Blackburn
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Lancashire
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BB1 5QB
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The Contact Company Ltd (Registered number: 05548951)
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Statement of Comprehensive Income
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for the Year Ended 31 March 2021
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31.3.21
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31.3.20
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Notes
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£
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£
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TURNOVER
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2
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Cost of sales
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GROSS PROFIT
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Administrative expenses
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1,250,038
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(998,788
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Other operating income
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3
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OPERATING PROFIT/(LOSS)
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5
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Interest payable and similar expenses
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6
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PROFIT/(LOSS) BEFORE TAXATION
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(
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Tax on profit/(loss)
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7
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PROFIT/(LOSS) FOR THE FINANCIAL
YEAR
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(
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OTHER COMPREHENSIVE INCOME
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-
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-
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TOTAL COMPREHENSIVE INCOME
FOR THE YEAR
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(
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The Contact Company Ltd (Registered number: 05548951)
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Balance Sheet
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31 March 2021
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31.3.21
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31.3.20
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Notes
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£
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£
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£
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£
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FIXED ASSETS
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Tangible assets
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8
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CURRENT ASSETS
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Debtors
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9
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Cash at bank and in hand
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CREDITORS
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Amounts falling due within one year
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10
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NET CURRENT ASSETS
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TOTAL ASSETS LESS CURRENT
LIABILITIES
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CREDITORS
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Amounts falling due after more than one
year
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11
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NET ASSETS
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CAPITAL AND RESERVES
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Called up share capital
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17
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Retained earnings
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SHAREHOLDERS' FUNDS
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The financial statements were approved by the director and authorised for issue on
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The Contact Company Ltd (Registered number: 05548951)
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Statement of Changes in Equity
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for the Year Ended 31 March 2021
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Called up
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share
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Retained
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Total
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capital
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earnings
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equity
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£
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£
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£
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Balance at 1 April 2019
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Changes in equity
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Total comprehensive income
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-
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(
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(
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Balance at 31 March 2020
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Changes in equity
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Total comprehensive income
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-
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Balance at 31 March 2021
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The Contact Company Ltd (Registered number: 05548951)
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Notes to the Financial Statements
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for the Year Ended 31 March 2021
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1.
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ACCOUNTING POLICIES
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Basis of preparing the financial statements
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The Contact Company Limited is a company limited by shares and incorporated and domiciled in the UK.
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Basis of preparing the financial statements
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These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The
Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The
financial statements have been prepared under the historical cost convention.
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The Company's ultimate parent undertaking, The Contact Specialists Limited includes the Company in its
consolidated financial statements. The consolidated financial statements of The Contact Specialists Limited are
available to the public and may be obtained from the registered office. In these financial statements, the company
is considered to be a qualifying entity (for the purposes of this FRS) and has applied the exemptions available
under FRS 102 in respect of the following disclosures:
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" Cash Flow Statement and related notes; and
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" Key Management Personnel compensation.
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The Company proposes to continue to adopt the reduced disclosure framework of FRS 102 in its next financial
statements.
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Going concern
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At the time of approving the financial statements, the directors have a reasonable expectation that the company
has adequate resources to continue in operational existence for the foreseeable future. Thus, the directors
continue to adopt the going concern basis of accounting in preparation of the financial statements.
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The accounting policies set out below have, unless otherwise stated, been applied consistently to all periods
presented in these financial statements
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Basic financial instruments
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Trade and other debtors / creditors
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Trade and other debtors are recognised initially at transaction price plus attributable transaction costs. Trade and
other creditors are recognised initially at transaction price less attributable transaction costs. Subsequent to initial
recognition they are measured at amortised cost using the effective interest method, less any impairment losses in
the case of trade debtors. If the arrangement constitutes a financing transaction, for example if payment is
deferred beyond normal business terms, then it is measured at the present value of future payments discounted at
a market rate of instrument for a similar debt instrument.
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Interest-bearing borrowings classified as basic financial instruments
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Interest-bearing borrowings are recognised initially at the present value of future payments discounted at a
market rate of interest. Subsequent to initial recognition, interest-bearing borrowings are stated at amortised cost
using the effective interest method, less any impairment losses.
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Cash and cash equivalents
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Cash and cash equivalents comprise cash balances and call deposits. Bank overdrafts that are repayable on
demand and form an integral part of the Company's cash management are included as a component of cash and
cash equivalents for the purpose only of the cash flow statement.
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The Contact Company Ltd (Registered number: 05548951)
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Notes to the Financial Statements - continued
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for the Year Ended 31 March 2021
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Turnover
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Turnover represents the net invoiced sales of services, excluding value added tax. Turnover is recognised in the
period the service is provided, according to daily time sheets and at agreed contractual rates for the relevant
service.
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Tangible fixed assets and depreciation
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Tangible fixed assets are stated at cost less depreciation.
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Depreciation is provided on all tangible fixed assets, other than investment properties and freehold land, at rates
calculated to write off the cost or valuation at, less estimated residual value evenly over their expected useful
lived on the following bases:
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Plant and machinery - 4 to 7 years
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Leases in which the Company assumes substantially all the risks and rewards of ownership of the leased asset are
classified as finance leases. All other leases are classified as operating leases. Leased assets acquired by way of
finance lease are stated on initial recognition at an amount equal to the lower of their fair value and the present
value of the minimum lease payments at inception of the lease, including any incremental costs directly
attributable to negotiating and arranging the lease. At initial recognition a finance lease liability is recognised
equal to the fair value of the leased asset or, if lower, the present value of the minimum lease payments. The
present value of the minimum lease payments is calculated using the interest rate implicit in the lease.
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The company assesses at each reporting date whether tangible fixed assets (including those leased under a
finance lease) are impaired.
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Impairment excluding stocks and deferred tax assets
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|
|
Financial assets (including trade and other debtors)
|
|
|
A financial asset not carried at fair value through profit or loss is assessed at each reporting date to determine
whether there is objective evidence that it is impaired. A financial asset is impaired if objective evidence
indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event had a
negative effect on the estimated future cash flows of that asset that can be estimated reliably.
|
|
|
An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference
between its carrying amount and the present value of the estimated future cash flows discounted at the asset's
original effective interest rate. For financial instruments measured at cost less impairment, an impairment is
calculated as the difference between its carrying amount and the best estimate of the amount that the Company
would receive for the asset if it were to be sold at the reporting date.
|
|
|
Non-financial assets
|
|
|
The carrying amounts of the Company's non-financial assets, other than stocks and deferred tax assets, are
reviewed at each reporting date to determine whether there is any indication of impairment. If any such
indication exists, then the asset's recoverable amount is estimated. The recoverable amount of an asset or
cash-generating unit is the greater of its value in use and its fair value less costs to sell. In assessing value in use,
the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects
current market assessments of the time value of money and the risks specific to the asset
|
|
|
Hire purchase and leasing commitments
|
|
|
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held
under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases
are depreciated over their estimated useful lives or the lease term, whichever is the shorter.
|
|
The Contact Company Ltd (Registered number: 05548951)
|
|
|
Notes to the Financial Statements - continued
|
for the Year Ended 31 March 2021
|
|
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element
of the future payments is treated as a liability.
|
|
|
|
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the
lease.
|
|
|
Expenses
|
|
|
Operating lease
|
|
|
Payments (excluding costs for services and insurance) made under operating leases are recognised in the profit
and loss account on a straight-line basis over the term of the lease unless the payments to the lessor are structured
to increase in line with expected general inflation; in which case the payments related to the structured increases
are recognised as incurred. Lease incentives received are recognised in profit and loss over the term of the lease
as an integral part of the total lease expense.
|
|
|
Finance lease
|
|
|
Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding
liability using the rate implicit in the lease. The finance charge is allocated to each period during the lease term
so as to produce a constant periodic rate of interest on the remaining balance of the liability. Contingent rents are
charged as expenses in the periods in which they are incurred.
|
|
|
Interest receivable and Interest payable
|
|
|
Interest payable and similar charges include interest payable, finance charges on shares classified as liabilities
and finance leases recognised in profit or loss using the effective interest method, unwinding of the discount on
provisions, and net foreign exchange losses that are recognised in the profit and loss account.
|
|
|
Interest income and interest payable are recognised in profit or loss as they accrue, using the effective interest
method.
|
|
|
Taxation
|
|
|
Tax on the profit or loss for the year comprises current and deferred tax. Tax is recognised in the profit and loss
account except to the extent that it relates to items recognised directly in equity or other comprehensive income,
in which case it is recognised directly in equity or other comprehensive income.
|
|
Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates
enacted or substantively enacted at the balance sheet date, and any adjustment to tax payable in respect of
previous years
|
|
|
Deferred tax is provided on timing differences which arise from the inclusion of income and expenses in tax
assessments in periods different from those in which they are recognised in the financial statements. The
following timing differences are not provided for: differences between accumulated depreciation and tax
allowances for the cost of a fixed asset if and when all conditions for retaining the tax allowances have been met;
to the extent that it is not probable that they will reverse in the foreseeable future and the reporting entity is able
to control the reversal of the timing difference. Deferred tax is not recognised on permanent differences arising
because certain types of income or expense are non-taxable or are disallowable for tax or because certain tax
charges or allowances are greater or smaller than the corresponding income or expense.
|
|
|
Deferred tax is measured at the tax rate that is expected to apply to the reversal of the related difference, using
tax rates enacted or substantively enacted at the balance sheet date. Deferred tax balances are not discounted
|
|
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that is it probable that they
will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
|
|
|
Pension costs and other post-retirement benefits
|
|
The Contact Company Ltd (Registered number: 05548951)
|
|
|
Notes to the Financial Statements - continued
|
for the Year Ended 31 March 2021
|
|
The company operates a defined contribution pension scheme. Contributions payable to the company's pension
scheme are charged to profit or loss in the period to which they relate.
|
|
|
|
|
|
Government grants
|
|
|
Government grants relating to tangible fixed assets are treated as deferred income and released to the profit and
loss account over the expected useful lives of the assets concerned. Other grants are credited to the profit and
loss account as related expenditure is incurred.
|
|
|
Provisions
|
|
|
A provision is recognised in the balance sheet when the Company has a present legal or constructive obligation
as a result of a past event, that can be reliably measured and it is probable that an outflow of economic benefits
will be required to settle the obligation. Provisions are recognised at the best estimate of the amount required to
settle the obligation at the reporting date.
|
|
|
Where the Company enters into financial guarantee contracts to guarantee the indebtedness of other companies
within its group, the company treat the guarantee contract as a contingent liability until such time as it becomes
probable that the company will be required to make a payment under the guarantee.
|
|
|
|
Critical accounting 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 amount 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 ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. Management consider the area of judgements in the accounts are fixed asset depreciation rates and impairment of assets. |
|
2.
|
TURNOVER
|
|
The turnover and profit before taxation are attributable to the one principal activity of the company. |
|
3.
|
OTHER OPERATING INCOME
|
|
31.3.21
|
|
31.3.20
|
£
|
£
|
|
|
Government grants
|
|
|
|
|
|
|
During the year, the company received government grants of £280,719 in relation to the job retention scheme. |
|
4.
|
EMPLOYEES AND DIRECTORS
|
|
31.3.21
|
|
31.3.20
|
£
|
£
|
|
|
Wages and salaries
|
|
|
|
|
|
|
Social security costs
|
|
|
|
|
|
|
Other pension costs
|
|
|
|
|
|
|
|
|
|
|
The Contact Company Ltd (Registered number: 05548951)
|
|
|
Notes to the Financial Statements - continued
|
for the Year Ended 31 March 2021
|
|
4.
|
EMPLOYEES AND DIRECTORS - continued
|
|
|
The average number of employees during the year was as follows:
|
|
31.3.21
|
|
31.3.20
|
|
|
Directors
|
1
|
|
4
|
|
|
|
Call centre staff
|
838
|
|
874
|
|
|
|
Administration
|
91
|
|
86
|
|
|
|
|
|
|
|
|
|
31.3.21
|
|
31.3.20
|
£
|
£
|
|
|
Directors' remuneration
|
|
|
|
|
|
|
Directors' pension contributions to money purchase schemes
|
|
|
|
|
|
|
|
The number of directors to whom retirement benefits were accruing was as follows:
|
|
|
Money purchase schemes
|
|
|
|
|
|
|
5.
|
OPERATING PROFIT/(LOSS)
|
|
|
The operating profit (2020 - operating loss) is stated after charging:
|
|
|
31.3.21
|
|
31.3.20
|
£
|
£
|
|
|
Hire of plant and machinery
|
|
|
|
|
|
|
Other operating leases
|
|
|
|
|
|
|
Depreciation - owned assets
|
|
|
|
|
|
|
Depreciation - assets on hire purchase contracts
|
|
|
|
|
|
|
Auditors' remuneration
|
|
|
|
|
|
|
6.
|
INTEREST PAYABLE AND SIMILAR EXPENSES
|
|
|
31.3.21
|
|
31.3.20
|
£
|
£
|
|
|
Bank interest
|
|
|
|
|
|
|
Hire purchase
|
|
|
|
|
|
|
|
|
|
|
The Contact Company Ltd (Registered number: 05548951)
|
|
|
Notes to the Financial Statements - continued
|
for the Year Ended 31 March 2021
|
|
7.
|
TAXATION
|
|
|
Analysis of the tax charge/(credit)
|
|
The tax charge/(credit) on the profit for the year was as follows:
|
|
31.3.21
|
|
31.3.20
|
£
|
£
|
|
|
Current tax:
|
|
UK corporation tax
|
|
|
|
|
|
|
Underprovided for prior period
|
(37,714
|
)
|
-
|
|
|
|
Total current tax
|
|
|
|
|
|
|
|
Deferred tax
|
|
|
(
|
)
|
|
|
Tax on profit/(loss)
|
|
|
(
|
)
|
|
|
|
UK corporation tax has been charged at
19
% .
|
|
|
Reconciliation of total tax charge/(credit) included in profit and loss
|
|
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is
explained below:
|
|
|
31.3.21
|
|
31.3.20
|
£
|
£
|
|
|
Profit/(loss) before tax
|
|
|
(
|
)
|
|
|
Profit/(loss) multiplied by the standard rate of corporation tax in the UK of
|
|
|
(
|
)
|
|
|
|
Effects of:
|
|
Expenses not deductible for tax purposes
|
|
|
|
|
|
|
Capital allowances in excess of depreciation
|
(
|
)
|
-
|
|
|
|
Depreciation in excess of capital allowances
|
-
|
|
|
|
|
|
Utilisation of tax losses
|
|
|
|
|
|
|
Adjustments to tax charge in respect of previous periods
|
(
|
)
|
|
|
|
|
|
Deferred Tax movement
|
166,206
|
|
(4,066
|
)
|
|
|
|
Total tax charge/(credit)
|
238,911
|
|
(4,066
|
)
|
|
|
The deferred tax is calculated based on the tax rate applicable to the next financial year which is 19%. |
The Contact Company Ltd (Registered number: 05548951)
|
|
|
Notes to the Financial Statements - continued
|
for the Year Ended 31 March 2021
|
|
8.
|
TANGIBLE FIXED ASSETS
|
|
Plant and
|
|
machinery
|
£
|
|
|
COST
|
|
At 1 April 2020
|
|
|
|
|
Additions
|
|
|
|
|
At 31 March 2021
|
|
|
|
|
DEPRECIATION
|
|
At 1 April 2020
|
|
|
|
|
Charge for year
|
|
|
|
|
At 31 March 2021
|
|
|
|
|
NET BOOK VALUE
|
|
At 31 March 2021
|
|
|
|
|
At 31 March 2020
|
|
|
|
|
|
Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
|
|
Plant and
|
|
machinery
|
£
|
|
|
COST
|
|
At 1 April 2020
|
|
|
|
|
Additions
|
|
|
|
|
At 31 March 2021
|
|
|
|
|
DEPRECIATION
|
|
At 1 April 2020
|
|
|
|
|
Charge for year
|
|
|
|
|
At 31 March 2021
|
|
|
|
|
NET BOOK VALUE
|
|
At 31 March 2021
|
|
|
|
|
At 31 March 2020
|
|
|
|
|
9.
|
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
|
|
|
31.3.21
|
|
31.3.20
|
£
|
£
|
|
|
Trade debtors
|
|
|
|
|
|
|
Amounts owed by group undertakings
|
|
|
|
|
|
|
Other debtors
|
|
|
|
|
|
|
Deferred tax asset
|
|
Accelerated capital allowances
|
|
|
|
|
|
|
Prepayments and accrued income
|
|
|
|
|
|
|
|
|
|
|
The Contact Company Ltd (Registered number: 05548951)
|
|
|
Notes to the Financial Statements - continued
|
for the Year Ended 31 March 2021
|
|
10.
|
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
|
|
|
31.3.21
|
|
31.3.20
|
£
|
£
|
|
|
Bank loans and overdrafts (see note 12)
|
|
|
|
|
|
|
Other loans (see note 12)
|
|
|
|
|
|
|
Hire purchase contracts (see note 13)
|
|
|
|
|
|
|
Trade creditors
|
|
|
|
|
|
|
Corporation Tax
|
|
|
|
|
|
|
Social security and other taxes
|
|
|
|
|
|
|
VAT
|
1,075,048
|
|
720,189
|
|
|
|
Other creditors
|
|
|
|
|
|
|
Directors' current accounts
|
42,317
|
|
19,318
|
|
|
|
Accrued expenses
|
|
|
|
|
|
|
|
|
|
|
|
11.
|
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
|
|
|
31.3.21
|
|
31.3.20
|
£
|
£
|
|
|
Hire purchase contracts (see note 13)
|
|
|
|
|
|
|
12.
|
LOANS
|
|
|
Bank loans and Property loans
|
|
|
During 2017 the company restructured its loans secured against property assets.
|
|
The company's properties were transferred to a fellow subsidiary, Tower Wharf Limited, at net book value.
Tower Wharf Limited set up a new loan to provide funding for the acquisition of the properties. The funding
receipts from Tower Wharf were used to repay all the secured property loans in the company.
|
|
|
Hire purchase contracts amounting to £1,380,873 are repayable as follows:
|
|
|
£10,827 is repayable in equal instalments of £1,805 by September 2021. The interest rate is 7%
|
|
£6,068 is repayable in equal instalments of £675 by December 2021. The interest rate is 7%
|
|
£54,198 is repayable in equal instalments of £3,369 by July 2022. The interest rate is 7%
|
|
£4,930 is repayable in equal instalments of £274 by September 2022. The interest rate is 7%
|
|
£160,351 is repayable in equal instalments of £6,681 by March 2023. The interest rate is 8%.
|
|
£86,693 is repayable in equal instalments of £3,334 by May 2023. The interest rate is 8%
|
|
£75,237 is repayable in equal instalments of £2,787 by June 2023. The interest rate is 8%.
|
|
£874,029 is repayable in equal instalments of £26,485 by December 2023. The interest rate is 8%.
|
|
£108,540 is repayable in equal instalments of £3,192 by February 2024. The interest rate is 8%
|
|
13.
|
LEASING AGREEMENTS
|
|
|
Minimum lease payments fall due as follows:
|
|
|
Hire purchase contracts
|
|
|
31.3.21
|
|
31.3.20
|
|
£
|
£
|
|
|
Net obligations repayable:
|
|
Within one year
|
|
|
|
|
|
|
Between one and five years
|
|
|
|
|
|
|
|
|
|
|
The Contact Company Ltd (Registered number: 05548951)
|
|
|
Notes to the Financial Statements - continued
|
for the Year Ended 31 March 2021
|
|
13.
|
LEASING AGREEMENTS - continued
|
|
|
Non-cancellable operating
|
leases
|
|
|
31.3.21
|
|
31.3.20
|
£
|
£
|
|
|
Within one year
|
|
|
|
|
|
|
Between one and five years
|
|
|
|
|
|
|
In more than five years
|
|
|
|
|
|
|
|
|
|
|
|
14.
|
SECURED DEBTS
|
|
|
The following secured debts are included within creditors:
|
|
|
31.3.21
|
|
31.3.20
|
£
|
£
|
|
|
Other loans
|
|
|
|
|
|
|
Hire purchase contracts
|
1,380,873
|
|
196,850
|
|
|
|
Invoices discounted
|
3,239,581
|
|
3,219,594
|
|
|
|
|
|
|
|
|
|
The bank overdraft is secured by a fixed and floating charge over the assets of the company.
|
|
Certain asset loans are secured by a fixed charge over the relevant fixed assets they were used to acquire.
|
|
Hire purchase loans are secured against the fixed assets they relate to.
|
|
Advances against invoices discounted are secured against trade debtors.
|
|
15.
|
FINANCIAL INSTRUMENTS
|
|
|
Carrying amount of financial instruments
|
|
|
The carrying amount of financial assets and liabilities include:
|
|
|
|
31.3.21
|
|
31.3.120
|
|
|
|
|
£
|
|
£
|
|
|
|
|
Assets measured at amortised cost
|
|
|
11,012,004
|
|
6,991,032
|
|
|
|
Liabilities measured at amortised cost
|
|
|
7,165,976
|
|
4,791,225
|
|
|
|
|
The financial assets measured at amortised cost comprise cash and other assets that have contractual rights to
receive cash.
|
|
Financial liabilities measured at amortised cost comprise cash and other liabilities which have contractual
obligations to deliver cash.
|
|
16.
|
DEFERRED TAX
|
£
|
|
|
Balance at 1 April 2020
|
(
|
)
|
|
|
Charge to Statement of Comprehensive Income during year
|
|
|
|
|
Balance at 31 March 2021
|
(
|
)
|
|
The Contact Company Ltd (Registered number: 05548951)
|
|
|
Notes to the Financial Statements - continued
|
for the Year Ended 31 March 2021
|
|
17.
|
CALLED UP SHARE CAPITAL
|
|
|
|
Allotted, issued and fully paid:
|
|
Number:
|
Class:
|
Nominal
|
31.3.21
|
|
31.3.20
|
|
value:
|
£
|
£
|
|
|
|
Ordinary shares
|
£1
|
10,000
|
|
10,000
|
|
|
|
18.
|
ULTIMATE PARENT COMPANY
|
|
|
The Contact Specialists Limited
is regarded by the director as being the company's ultimate parent company.
|
|
|
The largest and smallest group in which the results of the Company are consolidated is that headed by The
Contact Specialists Limited, incorporated in the UK. No other group financial statements include the results of
the Company.
|
|
The consolidated financial statements of this group are available to the public and may be obtained from the
Company's Registered Office.
|
|
19.
|
CONTINGENT LIABILITIES
|
|
|
The company has a contingent liability to Barclays Bank in respect of a loan of £6,800,000 made to Tower
Wharf Limited which was used to fund the acquisition of the properties from The Contact Company Limited.
|
|
20.
|
DIRECTORS' ADVANCES, CREDITS AND GUARANTEES
|
|
|
The following advances and credits to a director subsisted during the years ended 31 March 2021 and
31 March 2020:
|
|
|
31.3.21
|
|
31.3.20
|
£
|
£
|
|
|
|
|
Balance outstanding at start of year
|
(
|
)
|
(
|
)
|
|
|
Amounts advanced
|
|
|
|
|
|
|
Amounts repaid
|
(
|
)
|
(
|
)
|
|
|
Amounts written off
|
-
|
|
-
|
|
|
|
Amounts waived
|
-
|
|
-
|
|
|
|
Balance outstanding at end of year
|
(
|
)
|
(
|
)
|
|
|
21.
|
RELATED PARTY DISCLOSURES
|
|
|
Entities that provide key management personnel services to the entity
|
|
|
|
TT Business Services Ltd
|
|
|
A company in which A Tinker is a controlling shareholder.
|
|
|
During the year the company paid £33,696 (2020: £67,400) in connection with services supplied by TT Business Services Ltd.
|
|
|
There was no balance outstanding at the year end.
|
The Contact Company Ltd (Registered number: 05548951)
|
|
|
Notes to the Financial Statements - continued
|
for the Year Ended 31 March 2021
|
|
|
|
|
|
|
Aziadirect Ltd
|
|
|
A company controlled by the brother of A Hamid.
|
|
|
During the year the company purchased goods and services amounting to £9,266 (2020: £12,369) from Aziadirect Ltd. The company charged a management fee of £36,000 (2020: £nil) during the year.
|
|
|
2021 2020
|
|
£ £
|
|
Amount due (to)/from related party at the balance sheet date 83,856 57,122
|
|
|
|
L Tinker
|
|
|
L Tinker is married to one of the directors and rents a property to the company.
|
|
|
The rent amounted to £5,400 (2020: £10,800). There was no balance outstanding at the year end.
|
|
22.
|
ULTIMATE CONTROLLING PARTY
|
|
|
The controlling party is
A Hamid.
|